Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Shareholder Meeting (May 2013)
48 slides from Horizon Bancorp's shareholder meeting presentation, May 2, 2013
Slide 1: Welcome Shareholders Horizon Bancorp's 2013 Annual Meeting
Welcome Shareholders Horizon Bancorp’s 2013 Annual Meeting
Slide 2: Thomas H. Edwards, President Horizon Bank, NA
Thomas H. Edwards President Horizon Bank, NA
Slide 3: Forward-Looking Statements
This presentation may contain forward-looking statements regarding the financial performance, business, and future operations of Horizon Bancorp and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contain
Slide 4: Horizon Bank Anniversary
HORIZON‘ _HORIZOK BANK Anniversary HORIZON‘ BANK
Slide 5: Horizon Has Come a Long Way in 140 Years
140 Years of Asset Growth 140 Year CAGR: 7.22% Horizon Has Come a Long Way in 140 Years
Slide 6: Excellent Commercial Loan Growth
Excellent Commercial Loan Growth 2000-2012 CAGR: 14.7% CAGR w/out acquisitions: 11.7% Alliance Am Tru Heartland Growth in Commercial Loans
Slide 7: Outstanding Loan Growth in Kalamazoo
Outstanding Loan Growth in Kalamazoo * Amounts shown are month averages Kalamazoo Loan and Deposit Growth *
Slide 8: Remarkable Progress in Indianapolis
Remarkable Progress in Indianapolis * Amounts shown are month averages Indianapolis Loan and Deposit Growth *
Slide 9: 2012 Record Retail Mortgage Volume
2006-2012 CAGR: 13.1% 2012 Record Retail Mortgage Volume Mortgage Loan Volume Composition 44% Purchases 56% Refinance 2012 and 1Q13
Slide 10: Continued Growth in Number of Households
Continued Growth in Number of Households * Excludes indirect loan households 2001-2012 CAGR: 8.3% Alliance Am Tru Heartland Indicates Acquisition Retail Households Served *
Slide 11: Horizon's Sound Credit Culture
Horizon’s Sound Credit Culture
Slide 12: Lower Delinquency As a Percentage Of Loans
Lower Delinquency As a Percentage Of Loans 2012 Industry Average 0.70% Heartland Indicates Acquisition Loans Past Due 30 to 89 Days to Total Loans Am Tru
Slide 13: Asset Quality Continues to Improve
Note: Heartland Bancshares acquisition was completed on July 17, 2012 Decline in Provision Expense as Non-Performing Loans Improve Asset Quality Continues to Improve
Slide 14: Horizon Consistently Outperforms Peer Groups in Asset Quality
Horizon Consistently Outperforms Peer Groups in Asset Quality Note: Heartland Bancshares acquisition was completed on July 17, 2012 Source: FDIC Uniform Bank Performance Reports as of 12/31/12. Bank Level. Indiana Peers: custom group of 16 publicly traded banks headquartered in the state of Indiana.
Slide 15: Craig M. Dwight, Chief Executive Officer
Craig M. Dwight Chief Executive Officer
Slide 16: State of the Banking Industry & Economic Outlook
State of the Banking Industry & Economic Outlook
Slide 17: Earnings Continue to Improve For Banks in Indiana & Michigan
Earnings Continue to Improve For Banks in Indiana & Michigan Year Indiana (In millions) Michigan (In millions) 2012 $648 $763 2011 $487 $260 2010 $267 -$321 2009 -$101 -$663 2008 -$57 -$2,129 2007 $442 $896 2006 $525 $2,195 Source: UBPR for States of IN & MI Commercial Banks Only
Slide 18: Downward Pressure on Net Interest Margins
Source: SNL Financial LC; Average NIM for all Regulatory Depositories; Top Tier Consolidated data 35 basis point decline Downward Pressure on Net Interest Margins Bank Industry Average Net Interest Margin
Slide 19: Regulatory Burden Increasing Adds Uncertainty
Regulatory Burden Increasing Adds Uncertainty 40% of Dodd Frank Act Implemented 136 rules are finalized out of 398 required 18,102 pages in the Federal Register Basel III Capital Rules Still Pending Opportunity for Well Managed Bank
Slide 20: Increasing Unemployment Rates
Source: www.stats.indiana.edu National, Indiana and Michigan Unemployment Rates Increasing Unemployment Rates
Slide 21: Economic Outlook: Slow Growth with Numerous Risks
Unemployment Rate Trends Economic Outlook… Slow Growth with Numerous Risks At Home Federal Reserve Bank’s – “QE 4” Bond Purchases Continue Fed Funds Rate: Exceptionally Low Levels through 2014 Government Debt Levels Increasing Federal Government’s Sequester And Abroad Europe Continues to Struggle Ch
Slide 22: What Got Us Here Today Will Not Get Us There Tomorrow
What Got Us Here Today Will Not Get Us There Tomorrow
Slide 23: Where is Horizon Today?
HORIZON _HORIZOK BANK Where is Horizon Today?
Slide 24: The Right Side of Chicago
The Right Side of Chicago
Slide 25: Horizon Locations & Growing
HORIZON 29 Locations & Growing = Batlle Creek Michigan setter Fort weaynd Illinois Indiana Ohio Latayene, Tecra Hate
Slide 26: Corporate Profile
Shares Outstanding 8.6 Million 1-Year ADTV (1) 24,169 Shares Market Cap (2) $166.3 Million Total Assets (3) $1.7 Billion Total Deposits (3) $1.3 Billion Ownership (4) Insiders Employee Benefit Plans Institutional & Mutual Funds Source: SNL Financial, LC; Average Daily Trading Volume as of April 30,
Slide 27: Horizon's Story
Horizon’s Story Financial Strength Consistent Performance Superior Returns Steady Growth
Slide 28: Company on the Move
1999 2004 2005 2012 Mortgage Warehousing Established Entered St. Joseph Michigan Market Entered South Bend and Elkhart Market Acquired Alliance Bank Entered Lake County Market Acquired American Trust Bank Entered Kalamazoo Michigan Market Entered Indianapolis Market Acquired Heartland Community Bank
Slide 29: Record Earnings Thirteen Consecutive Years
Record Earnings “Thirteen” Consecutive Years 2000-2012 CAGR: 14.6% Dollars in Millions 86% Increase Net Income History
Slide 30: Record Earnings First Quarter 2013
Record Earnings First Quarter 2013 92% Increase First Quarter Earnings History
Slide 31: Balanced Growth: Loan and Core Funding
Dollars in Millions 2000-2012 Loan CAGR: 9.8% 2000-2012 Core Funding CAGR: 10.0% Balanced Growth Loan and Core Funding
Slide 32: Horizon is More Efficient than Our Peers
Horizon is More Efficient than Our Peers Peer Source: SNL Financial, LC Efficiency Ratio: Horizon vs. Peers
Slide 33: 2012 Milestones
2012 Milestones Total Shareholder Return of 74.4% Two Dividend Increases 3:2 Stock Split Successful Merger & Integration of Heartland Community Bank Opened Three New Offices Kalamazoo, Michigan Valparaiso, Indiana Indianapolis, Indiana
Slide 34: What Will Get Us There Tomorrow
What Will Get Us There Tomorrow
Slide 35: What Will Get Us There Tomorrow
What Will Get Us There Tomorrow Focus Solid Foundation Invest in the Future Deliver on Service Guarantees
Slide 36: Focus: Complementary Revenue Streams
#1 – Business Banking #2 – Retail Banking #3 – Wealth Management #4 – Retail Mortgage Banking #5 – Mortgage Warehousing Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles Focus
Slide 37: Solid Foundation: People First
People First Great Team of Advisors – Who Get Things Done Good Corporate and Individual Values Local Presence & Engagement Excellent Reputation Strong Financial Performance Solid Foundation
Slide 38: Invest in the Future
Invest in the Future Mortgage Revenues will Decline Based on Normal Interest Rate Cycles Invest in Revenue Growth Opportunities Commercial and mortgage lending teams Wealth & investment management team Market expansion Acquisitions
Slide 39: Deliver on Service Guarantees
Deliver on Service Guarantees Speed Accuracy Availability
Slide 40: Invest in Horizon
HORIZON _HORIZOK BANK Invest in Horizon
Slide 41: Shareholder Value Plan - Since 2001
Shareholder Value Plan - Since 2001 Dividends Uninterrupted Dividends for more than 25 Years Dividend Increases Aligned with Earnings Growth Improving Liquidity Stock Splits in 2001, 2003, 2011 and 2012 Common Stock Issued in Heartland Acquisition Steady Growth in Net Book Value & EPS Enrolled in Ru
Slide 42: Highly Regarded In Our Communities
Highly Regarded In Our Communities Nine out of Ten Customers Would Refer a Friend 3rd Party Survey, Stratus Group Consultants, Inc. Best Bank Twelve out of the Last Thirteen Years The News Dispatch Readers Poll Best Wealth Management Company NW Indiana Business Quarterly Best Place to Work NW Indian
Slide 43: Highly Regarded For Financial Performance
Highly Regarded For Financial Performance Ranked in the Top 200 Community Banks for Financial Performance for the Years 2008, 2009, 2010, 2011 & 2012 US Banker & ABA Magazines Named to KBW Bank Honor Roll (2nd Consecutive Year) Performance Measured over the Past Ten Years One of Only 47 Publicly Tra
Slide 44: Horizon Outperforms the Market For Total Shareholder Return
Horizon Outperforms the Market For Total Shareholder Return As of April 30, 2013 SNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe. SNL Midwest U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe headquartered in IA, IN, IL, KS, KY, MI, MN, MO, ND, NE, O
Slide 45: Thank You for Your Investment in Horizon Bancorp
Thank You for Your Investment in Horizon Bancorp
Slide 46: Chairman Emeritus & Independent Lead Director
Chairman Emeritus & Independent Lead Director
Slide 47: Questions
HORIZON —BANI BANK Questions
Slide 48: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC