Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (May 2010)
39 slides from Horizon Bancorp's investor presentation, May 6, 2010
Slide 1: Horizon - Serving the Community Since 1873
HORIZON _..... Serving the Community Since 1873
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward- looking statements regarding financial performance, business prospects, growth and operating strategies. For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Se
Slide 3: Thomas H. Edwards, President & Chief Operating Officer
Thomas H. Edwards President & Chief Operating Officer
Slide 4: Horizon
HORIZON. __HORIZON
Slide 5: Sound Credit Culture
Sound Credit Culture • Team of Seasoned Underwriters – Average Tenure > 20 years • Primarily an In-Market and Full Recourse Lender • Predominately a Secured Lender • Retail & Small Business Focus – Average Commercial Loan Size Approximately $250,000 • We Manage Lending Limits – House Limit $10 milli
Slide 6: "Low Percentage" of Development Loans
“Low Percentage” of Development Loans As a Percent of Total Commercial Loans at December 31, 2009 Dollars in Millions
Slide 7: Diversity in Non-Performing & Real Estate Owned
Diversity in Non-Performing & Real Estate Owned Non Performing and REO By Classification at December 31, 2009 Dollars in Millions
Slide 8: Horizon Outperforms Peer Group
Horizon Outperforms Peer Group Non-Performing Loans Plus OREO to Gross Loans Plus OREO Source: Custom group of 18 publicly traded banks headquartered in the state of Indiana from FDIC Uniform Bank Performance Reports 1 st Qtr
Slide 9: Horizon Loan Charge-Offs Comparable to Peer
Horizon Loan Charge-Offs Comparable to Peer Source: Custom group of 18 publicly traded banks headquartered in the state of Indiana from FDIC Uniform Bank Performance Reports. 1 st Qtr
Slide 10: Consumer Loans Lead in Dollars Charged-off
Consumer Loans Lead in Dollars Charged-off By Type Of Loan
Slide 11: Horizon Out-Performs National Averages
Horizon Out-Performs National Averages For Consumer Indirect Installment Net Charge-Offs Source: ABA Consumer Credit Delinquency bulletin. Actual Net Charge-Offs for each quarter are annualized and expressed as a percentage of average indirect loan outstandings
Slide 12: Horizon Builds Loan Loss Reserve
1 st Qtr Horizon Builds Loan Loss Reserve
Slide 13: Craig M. Dwight, Chief Executive Officer
Craig M. Dwight Chief Executive Officer
Slide 14: The Current Banking Environment
The Current Banking Environment
Slide 15: Are Large US Banks Too Big to Fail?
Are Large US Banks Too Big to Fail? Distribution of US Banks By Asset Size $7.4 Trillion (54%) $4.1 Trillion (30%) $2.3 Trillion (16%)
Slide 16: Bank Failures Increasing
Bank Failures Increasing 1980 through April 2010
Slide 17: Drivers of NASDAQ Composite Volatility
Drivers of NASDAQ Composite Volatility Mortgage Crisis Liquidity Crisis Rules Change & Bank Stress Testing Begins Great Recession
Slide 18: Horizon More Profitable Than State & National Peers
Source: Uniform Bank Performance Reports. Indiana and Michigan are state averages for all insured commercial banks. National is all insured commercial banks with assets between $1 billion and $3 billion. 2008 2009 Horizon More Profitable Than State & National Peers As Measured By Return On Average A
Slide 19: Bauer Financial - Recommends
Bauer Financial - “Recommends” All Five-Star and Four-Star Institutions Source: www.bauerfinancial.com - Telephone 800.388.6686 "Because peace of mind matters"
Slide 20: Horizon is a Top Rated Bank
Source of Ratings: www.bauerfinancial.com - Telephone: 800.388.6686 Star Ratings as of December 31, 2009 and through April 16, 2010 Horizon is a Top Rated Bank • Indiana – Horizon – Centier – 1 st Source – La Porte Savings – First Midwest – Peoples Bank – Citizens Financial – Standard Bank • Michiga
Slide 21: Horizon
HORIZON. __HORIZON
Slide 22: Horizon's Corporate Profile
*Based on price at the close of business on April 30, 2010 at $22.00 per share **Total assets and deposits as of March 31, 2010 Horizon’s Corporate Profile • Shares Outstanding 3.3 Million • Market Cap* $72.3 Million • Total Assets** $ 1.3 Billion • Total Deposits** $ 874 Million • Branches 19 • Own
Slide 23: Current Locations
ke = Current Locations yk = American Trust Branches to Stay Open * = American Trust Branch to Close Berrien County Cook County * St. Joseph County Illinois Will County Marshall County Starke County Kankakee County’ Van Buren County Michigan Cass County Kalama St. Jos Lat Kosciusko County
Slide 24: American Trust & Savings Acquisition
American Trust & Savings Acquisition • Purchase & Assumption – Assets ≈ $110 million – Deposits ≈ $99 million • Financial – Accretive to earnings – Payback is less than three years – Low risk - asset quality and core deposits
Slide 25: Record Earnings - Ten Consecutive Years
Record Earnings - Ten Consecutive Years CAGR 10.29 %
Slide 26: Improving Net Interest Margin
Improving Net Interest Margin
Slide 27: Horizon Exceeds Peer Average for Efficiency
Peer Data Source: KBW Report dated March 2010 covering Indiana Publicly Traded Banks; peer data represents a peer average and is as of December 2009 for all periods reviewed. Horizon Exceeds Peer Average for Efficiency
Slide 28: Steady Asset Growth
Steady Asset Growth CAGR 10.1%
Slide 29: Core Deposit Growth
CAGR 9.23% Core Deposit Growth
Slide 30: Why Capital Purchase Program (TARP)?
Why Capital Purchase Program (TARP) ? • Reasons Still Valid Today as in 2008 • Horizon has a Long History of Supporting Governmental Programs • Brings Tax Payer Dollars Back to Our Communities to Make Loans • Low Cost Capital • Cushion Against Unforeseen Events • It’s a Loan and Will be Repaid – FHA
Slide 31: Horizon's Compensation Is Fair
Horizon’s Compensation Is Fair To All Stakeholders • Say on Pay • Bonus Plans Directionally Aligned with Shareholder’s Interests • Horizon Pays Shareholders First – No bonuses if earnings fall below a multiple of approximately 1.5x dividends plus holding company fixed costs • Independent Director Co
Slide 32: Horizon
HORIZON. __HORIZON
Slide 33: Horizon is Highly Regarded
Horizon is Highly Regarded In Our Communities • Nine out of Ten Customers - Would Refer a Friend • Best Bank - The News Dispatch Readers Poll - Nine out of Last Ten Years • Best Trust Company - NW Indiana Business Quarterly • Best Place to Work - NW Indiana Business Quarterly • Family Friendly Work
Slide 34: Horizon has Stable Performance & Growth
Horizon has Stable Performance & Growth • Earnings Growth for Ten Consecutive Years • Diversified Revenue Streams • Efficient Operations • Lake Michigan Corridor Primed for Growth • Super Regional Banks Cutting Back - Market Share Opportunities • Opportunities Increasing for Healthy Banks
Slide 35: Horizon is an Attractive Value
Horizon Bancorp* Avg. - Indiana Banks** Dividend Yield 3.5% 2.3% Price to Book 69.2% 79.2% Price to Tangible Book 75.1% 87.5% Price to Earnings (LTM) 9.2x 16.1x *Horizon Bancorp data as of March 31, 2010 **Peer Data Source: KBW Report as of March 2010 Covering Indiana Publicly Traded Horizon is an A
Slide 36: Horizon Outperforms Bank Index - One Year
Horizon Outperforms Bank Index - One Year
Slide 37: Horizon Outperforms Bank Index - Ten Years
Horizon Outperforms Bank Index - Ten Years
Slide 38: Source: www.bauerfinancial.com
Source :www.bauerfinancial.com - Telephone: 800.388.6686
Slide 39: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC