Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (August 2011)
41 slides from Horizon Bancorp's investor presentation, Aug 1, 2011
Slide 1: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Slide 2: Forward-Looking Statements
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 forw
Slide 3: Horizon's Corporate Profile
Horizon’s Corporate Profile Symbol - HBNC • Shares Outstanding 3.3 Million • Market Cap* $88.6 Million • Total Assets** $ 1.4 Billion • Total Deposits** $ 1.0 Billion • Branches 22 • Ownership – Insiders 10% – Employee Benefit Plans 15% – Institutional & Mutual Funds 22% * Based on price at the clos
Slide 4: Horizon Locations
Horizon Locations Michigan City
Slide 5: Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Slide 6: Global companies find world class locations
Global companies find world class locations Diversified Employment Base
Slide 7: #1 Retirement Community for Chicago Area
#1 Retirement Community for Chicago Area
Slide 8: Why Invest in Horizon Bancorp?
Why Invest in Horizon Bancorp? • Attractive Current Valuation • Dividends and Reinvesting for Growth • Consolidator in Banking Industry • Strong Capital Position • Positioned to Meet Regulatory Requirements • Successful Acquisition and Organic Growth Track Record • Robust Capabilities for Managing E
Slide 9: Horizon is an Attractive Value
Horizon Bancorp* Median Indiana Banks** Dividend Yield 2.5% 1.7% Price to Book 85.9% 77.9% Price to Tangible Book 93.5% 85.9% Price to Earnings (LTM) 8.4x 12.7x Horizon is an Attractive Value * Horizon Bancorp data as of June 30, 2011 ** Peer Data Source: KBW Report as of June 2011, Covering Indiana
Slide 10: The Current Banking Environment and Horizon's Response
The Current Banking Environment and Horizon’s Response
Slide 11: New Regulations Will Have Adverse Effect on the Industry
New Regulations Will Have Adverse Effect on the Industry • Lower Revenues – Consumer Finance Protection Bureau – Durbin amendment – Mortgage pricing • Higher Costs – Implementation & systems up-grades – Compliance & training – Lost opportunity • Higher Capital Requirements – Lower returns on equity
Slide 12: Companies That Effectively Deal with Change & Execute Well
Companies That Effectively Deal with Change & Execute Well Lead the Industry!
Slide 13: Horizon is an Industry Leader
Horizon is an Industry Leader • Great Team that Executes Well! – We Value Measurement – Incentive Compensation – Target Completion Dates • Good Historical Performance - Indicator of Future Ability • Positive Feedback from Shareholders and Investors • Well-Defined Growth Strategy
Slide 14: Horizon Strives to Increase Revenue
Horizon Strives to Increase Revenue 2011 Organic Growth Initiative • Commercial Lending Team Expanded • Treasury Management Team Expanded • New Retail Mortgage Sales Manager • Increase in Trust Administrators • Opening New Banking Markets
Slide 15: Experts Agree Significant Banking Industry Consolidation is Inevitable
Experts Agree Significant Banking Industry Consolidation is Inevitable
Slide 16: Once in a Lifetime Opportunity
Once in a Lifetime Opportunity Horizon Offers • Cooperative, Non-Hostile Approach to Business Combinations • Open, Clear Communications with Acquired Companies and Employees • Excellent Corporate Culture: People are Proud to Work for Horizon • Ability to Leverage Strengths of Acquired Branches and C
Slide 17: Central Location Supports Growth Opportunities
Central Location Supports Growth Opportunities • Location, Location, Location: Horizon Can Expand North, South, East and West Without Compromising Core Service Area • Low Cost of Operations • Lake Michigan Corridor Primed for Growth • Super Regional Banks Cutting Back - Market Share Opportunities
Slide 18: Considerable Opportunity for Expansion
Considerable Opportunity for Expansion
Slide 19: Horizon's Story
H orizon’s Story Financial Strength Consistent Performance Superior Returns
Slide 20: Balanced & Complementary Business Model
Balanced & Complementary Business Model #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
Slide 21: Record Earnings "Eleven" Consecutive Years
Record Earnings “Eleven” Consecutive Years CAGR 10.70 % Dollars in Millions
Slide 22: Record Earnings for First Six Months
Record Earnings for First Six Months Dollars in Thousands First & second quarter only $5,858
Slide 23: Strong Growth in Pre-Tax Pre-Provision Earnings
Strong Growth in Pre-Tax Pre-Provision Earnings (Millions)
Slide 24: Peer Data Source: KBW Report dated January 2011 covering Indiana Publicly Traded Banks; peer
Peer Data Source: KBW Report dated January 2011 covering Indiana Publicly Traded Banks; peer data represents a peer average and is as of December 2010 for all periods reviewed.
Slide 25: Horizon More Profitable Than State & National Peers
Horizon More Profitable Than State & National Peers As Measured By Return On Average Assets 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.
Slide 26: Balanced Deposit Mix
Balanced Deposit Mix Total Deposits at December 31, 2010
Slide 27: Balanced Loan Mix
Balanced Loan Mix Total Loans December 31, 2010
Slide 28: Steady Asset Growth
Steady Asset Growth CAGR 10.17% 2000 to 2010
Slide 29: Increasing Core Deposits
Increasing Core Deposits CAGR 8.54% 2000 to 2010
Slide 30: Horizon's Sound Credit Culture and Asset Quality
Horizon’s Sound Credit Culture and Asset Quality
Slide 31: 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 & Business Focus – Average Commercial Loan Size Approximately $250,000 – Sweet Spot - Retail and Business Focus • We Manage Len
Slide 32: Horizon Outperforms Peer Groups
Horizon Outperforms Peer Groups Non-Performing Loans Plus OREO to Gross Loans Plus OREO Source: FDIC Uniform Bank Performance Reports as of 3/31/11. Peer is a custom group of 17 publicly traded banks headquartered in the state of Indiana. National peer group consists of insured commercial banks havi
Slide 33: Horizon Builds Loan Loss Reserve
Horizon Builds Loan Loss Reserve
Slide 34: "Low Percentage" of Development Loans
“Low Percentage” of Development Loans Commercial Loans As a Percent of Total Loans at June 30, 2011 Development Construction - Spec Homes aud Spectead, SE" Commercial and 828 Loans 2 . Industrial $7,926 0.3% Other 1% $46,377 Automotive /RV $9,219 5% $7,241 % % Owner Occupied RE $122,909 15% Non Owne
Slide 35: Diversity in Non-Performing & Real Estate Owned
Diversity in Non-Performing & Real Estate Owned Non-Performing and REO By Classification at June 30, 2011 Dollars in Millions Non-Performing Loans - $20.6 Other Real Estate Owned - $4.1
Slide 36: HORIZON.
HORIZON. __HORIZON
Slide 37: Excellent Financial Metrics
Excellent Financial Metrics • Consistent & Stable Quarterly Dividend Payments – Over twenty-five years of uninterrupted dividends – Cash reserves at the holding company • Solid Earnings Performance • Efficient Operations • Good Historical Growth – Assets – Deposits – Earnings
Slide 38: Horizon is Highly Regarded
Horizon is Highly Regarded In Our Communities • Ranked in the Top 200 Community Banks for Financial Performance - US Banker Magazine - June 2008, 2009, 2010 & 2011 • Nine out of Ten Customers - Would Refer a Friend • Best Bank - The News Dispatch Readers Poll - Ten out of Last Eleven Years • Best Cu
Slide 39: Horizon Outperforms NASDAQ's Bank Index
Horizon Outperforms NASDAQ ’ s Bank Index
Slide 40: Bauer Financial - "Recommends"
Bauer Financial - “Recommends” All Five-Star and Four-Star Institutions Source: www.bauerfinancial.com - Telephone 800.388.6686
Slide 41: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
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