Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (August 2017)
36 slides from Horizon Bancorp's investor presentation, Aug 1, 2017
Slide 1: A NASDAQ Global Select Traded Company - Symbol HBNC
A NASDAQ Global Select Traded Company - Symbol HBNC
Slide 2: Forward-Looking Statements
This presentation may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-lookin
Slide 3: Craig M. Dwight, Chief Executive Officer
* Craig M. DwightChief Executive Officer
Slide 4: Horizon is a Growth Story
_HORIZON BANK Horizon isa Growth Story
Slide 5: Indiana, Michigan and Ohio… The Right Side of Chicago
Indiana, Michigan and Ohio… The Right Side of Chicago Illinois and Chicago-High Taxes & Living Costs-Low Credit Rating-Unfriendly Business Environment
Slide 6: Branch Footprint December 2006
Branch Footprint December 2006 Locations – 15Counties – 6 Branches Michigan Illinois Indiana Ohio
Slide 7: Considerable Expansion through June 2017
Considerable Expansion through June 2017 BranchesLoan Production Offices New Branch in 2017Pending MergersBranchesLoan Production Office Illinois Locations – 60Counties – 21 Michigan Indiana Ohio * Branch Footprint December 2006 Locations – 15Counties – 6 Branches Michigan Illinois Indiana Ohio
Slide 8: Growth Transformation
($’s in millions, except per share data)Category 2006 2017 Assets $1,222 $3,321 Loans $848 $2,256 Deposits $914 $2,419 Trust Assets Under Management $391 $1,994 Market Capitalization $88 $585 Stock Price $8.13 $26.35 Average Daily Trading Volume (1) 5,811 59,211 * Growth Transformation Footnote Inde
Slide 9: Balance Sheet Positioned Well for the Future
Balance Sheet Positioned Well for the Future * Asset Sensitive Growth in Higher Yielding Assets Good Core Deposits Growth
Slide 10: Shift to Commercial Lending
June 30, 2017 December 31, 2011 ($ in Millions) 12/31/11 6/30/17 CAGR Commercial $352 $1,144 24% Real Estate 365 677 12% Consumer 265 450 10% Total $983 $2,271 16% * Shift to Commercial Lending(as a percent of total loans)
Slide 11: Well Diversified Loan Portfolio
June 30, 2017 * Well Diversified Loan Portfolio(Loans as a Percent of Total Loans)
Slide 12: Low Risk Profile
June 30, 2017 * Low Risk Profile(Loans as a Percent of Bank Capital)
Slide 13: Strong Low Cost Deposit Growth
June 30, 2017 December 31, 2011 ($ in Millions) 12/31/11 6/30/17 CAGR Non-interest $131 $508 28% Interest 538 1,513 21% CDs 341 458 6% Total $1,101 $2,479 18% * Strong Low Cost Deposit Growth YTD Cost of Deposits – 0.94% YTD Cost of Deposits – 0.36%
Slide 14: Good Historical Earnings Exhibits Ability to Execute
Good Historical EarningsExhibits Ability to Execute *
Slide 15: Solid Earnings Growth
* Solid Earnings Growth (2) Footnote Index included in Appendix
Slide 16: Less Dependence on Mortgage Revenue
* Less Dependence on Mortgage Revenue (1) Mortgage Revenue defined as interest and fee income from mortgage warehouse loans plus gain on sale of mortgage loans.
Slide 17: GAAP Net Interest Margin and Core Net Interest Margin
* GAAP Net Interest Margin and Core Net Interest Margin (1) Net Interest Margin Increasing Δbps GAAP 34 bps Core 27 bps Footnote Index included in Appendix
Slide 18: Wealth Management Growth Drives Fee Income
* Wealth Management Growth Drives Fee Income
Slide 19: A Company on the Move
HORIZON‘ _HORIZO! BANK A Company on the Move
Slide 20: Always Looking for Opportunities to Create Shareholder Value
Always Looking for Opportunities to Create Shareholder Value * Assets ($ Mil.) $721 $3,872(1) Loans($ Mil.) $548 $2,707(1) Deposits($ Mil.) $489 $2,839(1) OrganicExpans.(11) St. JosephSo. BendElkhart Lake County Kalamazoo Indianapolis Carmel Ft. WayneGrand Rapids Noblesville IN(2)Columbus OH(3) M&A(
Slide 21: Growth Opportunities Abound
Growth MarketsEmerging Markets GrandRapids AnnArbor Columbus NW Ohio FortWayne Lafayette Kalamazoo SouthBend Warsaw Indianapolis NWIndiana Growth Opportunities Abound Midland Troy Illinois Indiana Ohio Michigan Growth MarketsEmerging Markets * GrandRapids AnnArbor Columbus NW Ohio FortWayne Lafayett
Slide 22: Considerable Market Share Opportunities
Considerable Market Share Opportunities * (1) (2) (3) Market Share Market Share Key Market (1) Deposit Market (2)($’s in billions) Large Institutions (3) Horizon Columbus, OH $64 79% 0% Indianapolis, IN $45 74% 1% Grand Rapids, MI $21 76% 0% Northwest Indiana $11 44% 4% Fort Wayne, IN $8 63% 1% Kala
Slide 23: M&A Opportunities Continue
* Number of Banks Headquartered in Indiana and Michigan M&A Opportunities ContinueAs of December 31, 2016 139 Banks within Targeted Markets194 Banks Headquartered in Ohio213 Banks Headquartered in Indiana & Michigan
Slide 24: 2017 Whole Bank Acquisitions
($ in millions)Category Horizon Bancorp Lafayette Community Bancorp Wolverine Bancorp, Inc. Pro Forma Total Assets $3,321 $172 $379 $3,872 Total Loans $2,256 $135 $316 $2,707 Total Deposits $2,419 $149 $271 $2,839 Locations (1) 60 4 4 69 * 2017 Whole Bank Acquisitions Footnote Index included in Appe
Slide 25: Strategic Reasons for Lafayette and Wolverine Acquisitions
* Fills market gap between Indianapolis and Northern IndianaExperienced leadership team retained, with big bank experienceScalable platform in the high growth market of Lafayette, Indiana (home of Purdue University)Potential to capture market share from larger institutions Strategic Reasons Highly p
Slide 26: Financial Reasons for Acquisitions
2018 EPSAccretion TBVEarn-backPeriod Cost Savings(fully phased in) Internal Rateof Return Lafayette Community Bancorp 0.5% 3.0 years 35% 15% Wolverine Bancorp, Inc. 5.4% Less than 1.0 year 38%(1) 17% * Financial Reasons 28% of total cost savings are attributable to thrift benefit plans
Slide 27: Investment Thesis
Historical Financial Performance Illustrates Ability to ExecuteConsistent, Well Executed and Disciplined Business StrategyA Growth Story10-year asset and net income CAGR of 10% and 12%, respectivelyThirteen acquisitions and eleven market expansions since 2002Capacity to take additional market shareE
Slide 28: Scale Drives Shareholder Value
* Scale Drives Shareholder Value Financial data as of March 31, 2017; market data as of July 19, 2017. Nationwide publicly traded banks, excluding merger targets. Source: SNL Financial
Slide 29: Horizon Outperforms the Market for Total Shareholder Return
Horizon Outperforms the MarketFor Total Shareholder Return As of June 30, 2017SNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe. * Horizon Bancorp: 5-Year Total Return Comparison
Slide 30: A NASDAQ Global Select Traded Company - Symbol HBNC
A NASDAQ Global Select Traded Company - Symbol HBNC
Slide 31: Appendix
HORIZON — BAN BANK Appendix EX GEP TO NAL SvECR Val Coe
Slide 32: Footnote Index
Slide 8Financial data in millions, except for stock price, as of December 31, 2006 and June 30, 2017.(1) Based on the daily trading volume during the fourth quarter of 2006 and second quarter of 2017.Slide 15(1) Core net income and core diluted EPS excludes one-time merger expenses, gain on sale of
Slide 33: Loan Portfolio Composition
* Loan Portfolio Composition Loan Category BalanceJune 30, 2017($’s in millions) % of Total Loans % of Bank Capital Commercial Owner Occupied Real Estate $342,134 15% 87% Non-Owner Occupied Real Estate $492,249 22% 125% Residential Development $3,454 0% 1% Development and Spec Land $38,237 2% 10% Co
Slide 34: Non-GAAP Reconciliations
HORIZON Non-GAAP Reconciliations Non-GAAP Reconciliation of Net Income and Diluted Earnings per Share (Dollars in Thousands Except per Share Data) ‘Twelve Months Ended. ‘Six Months Ended December 31 June 30 2016 2015, 2014 2013 2012 20 2017 2016 Unaudited Unaudited ‘Non-GAAP Reconciliation of Net In
Slide 35: Non-GAAP Reconciliations
— BANK Non-GAAP Reconciliations Non-GAAP Reconciliation of Net Interest Margin (Dollars in Thousands) Six Months Ended Years Ended June 30 June 30 December 31 December 31 Interest Margin sted 2017 2016 2016 2015 (Unaudited) (Unaudited) Net interest ineome $ 52,766. $ 63S 85,992. § 74,734 Average int
Slide 36: Communications in this document do not constitute an offer to sell
COMMUNICATIONS IN THIS DOCUMENT DO NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OR A SOLICITATION OF ANY VOTE OR APPROVAL.In connection with the proposed merger with Lafayette Community Bancorp, Horizon has filed with the SEC a Registration Statement on Form
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