Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (March 2014)
30 slides from Horizon Bancorp's investor presentation, Mar 19, 2014
Slide 1: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Slide 2: 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 3: Company Profile, Market Information and Financial Highlights
Insiders 10% Employee Benefit Plans 13% Institutional 29% Name, Title Yrs. Experience Craig M. Dwight, Chairman & CEO 35 Thomas H. Edwards, President & COO 37 Mark E. Secor, CFO 25 James D. Neff, Corp. Secretary 34 Common Shares Outstanding 8.6 million Market Cap $189.4 million Dividend Yield 2.0% P
Slide 4: Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Northwest Indiana/Southwest Michigan… The Right Side of Chicago
Slide 5: Locations and Considerable Opportunity for Growth
31 Locations and Considerable Opportunity for Growth * * 31 locations includes two Summit Community Bank branches, map includes Grand Rapids sales office and proposed Carmel branch Growth Opportunities in All Directions * N E S W * Includes pending SCB Bancorp transaction
Slide 6: Growth Opportunities in All Directions
_HORIZON' Growth Opportunities in All Directions BANK A Grand Rapids, Kalamazoo, Lansing* Entered: 2013, 2010, 2014 ‘Total Population: 1.8 million Deposit Market Share: 2.37% Lake and Porter Counties South Bend, Elkhart-Goshen Entered: 2004 ‘Total Population: 518,682 Deposit Market Share: 0.21% Ente
Slide 7: Banking Sector has Stabilized
Banking Sector has Stabilized Aggregate Net Income for Banks Headquartered in Indiana and Michigan Aggregate Net Income for Banks Headquartered in Indiana and Michigan Aggregate Net Income for Banks Headquartered in Indiana and Michigan Year Indiana (In millions) Michigan (In millions) 2013 $658 $47
Slide 8: Lower Unemployment Rates
Source: U.S. Bureau of Labor Statistics, seasonally adjusted Indiana, Michigan and National Unemployment Rates Lower Unemployment Rates *
Slide 9: What Got Us Here Today
HORIZON: _HORIZO BANK What Got Us Here Today
Slide 10: Recent Highlights
Recent Highlights 2013 Marked the Fourteenth Consecutive Year of Record Earnings Surpassed $500 Million in Commercial Loan Balances Announced Summit Community Bank Acquisition Acquired 1st Mortgage of Indiana, Indianapolis, Indiana Downtown Indianapolis Branch Opened Secured Land for Carmel, IN Bran
Slide 11: A Company on the Move
A Company on the Move * * Pending SCB Bancorp shareholder approval, regulatory approvals received; branches includes two Summit Community Bank branches, a wholly-owned subsidiary of SCB Bancorp Organic Market Expansion (8) St. Joseph, MI South Bend, IN Elkhart, IN Lake County, IN Kalamazoo, MI India
Slide 12: Horizon's Story
Horizon’s Story Steady Growth Superior Returns Financial Strength Consistent Performance *
Slide 13: Record Earnings: Fourteen Consecutive Years
Record Earnings “Fourteen” Consecutive Years 2000 – 2013 CAGR: 13.6% In Millions Net Income History *
Slide 14: Efficiency Ratio vs. Peers
Source: SNL Financial; Peer Group – SNL U.S. Bank Index $1 Billion - $5 Billion in Assets as of 12/31/2013, Median Values * Efficiency Ratio vs. Peers Investing in the Future
Slide 15: ROACE vs. Peers
* ROACE vs. Peers Better Returns than Our Peers Source: SNL Financial; Peer Group – SNL U.S. Bank Index $1 Billion - $5 Billion in Assets as of 12/31/2013, Median Values
Slide 16: Loan Composition
December 31, 2013 Loan Composition December 31, 2008 Loan Composition 2008 – 2013 CAGR 2008 – 2013 CAGR Commercial 10.2% Mtg. Warehouse (4.5%) Real Estate 2.1% Consumer 0.0% * Loan Mix Better Positioned For Rising Rates
Slide 17: Commercial Loan Growth
Am Tru $15.1mm Heartland $70.3mm Commercial Loan Growth Commercial Loan Composition 8 15 28 2004 2012 2010 2006 2002 2003 2008 19 Commercial Loan Officer Headcount * Investing in Commercial Lenders Creates Growth
Slide 18: Growth Markets Thriving
Kalamazoo and Indy Loan and Deposit History* * * Month averages Growth Markets Thriving
Slide 19: Mortgage Business Built for the Long-Term
Mortgage Loan Volume Purchase Mortgage Volume & Composition Mortgage Business Built for the Long-Term Mortgage Loan Officer Headcount 6 23 28 16 *
Slide 20: Excellent Low Cost Deposit Growth
December 31, 2008 Deposit Composition December 31, 2013 Deposit Composition Excellent Low Cost Deposit Growth 2008 – 2013 CAGR 2008 – 2013 CAGR Nonint. Bearing 22.5% MMDA & Savings 18.5% IB Demand 10.3% CDs (3.1%) *
Slide 21: Sound Credit Culture
Sound Credit Culture * NPAs/ Loans + OREO Source: SNL Financial; Peer Group – SNL U.S. Bank Index $1 Billion - $5 Billion in Assets as of 12/31/2013, Median Values
Slide 22: What Will Get Us There Tomorrow
What Will Get Us There Tomorrow *
Slide 23: Balanced & Complementary Business Model
Balanced & Complementary Business Model Business Banking Retail Banking Wealth Management Mortgage Banking Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles *
Slide 24: Focus is on Organic Growth
Focus is on Organic Growth People First - Our Employees Get Things Done Recruit and Retain Seasoned Bankers with Similar Values and Philosophies Align Pay with Results Measure Success and Growth Beat Last Year Provide Employees the Products and Tools to be Successful Continued Investment in Growth M
Slide 25: Seeking M&A Opportunities
Seeking M&A Opportunities * Disciplined and Focused Approach Must Meet Internal Targets Considerations Include: EPS Accretion Internal Rate of Return Seeking Indiana and Michigan Partners Larger MSAs Desired Market Growth Potential Fill in Market Gaps Horizon is an Attractive Investment to Partnerin
Slide 26: Why Invest in Horizon
HORIZON: _HORIZO BANK Why Invest in Horizon
Slide 27: Shareholder Value Plan
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 and Summit* Acquisitions Steady Growth in Net Book Value & EPS R
Slide 28: Highly Regarded For Financial Performance
Highly Regarded For Financial Performance Named to Most Successful Banks Quarterly (1st Edition) Merion Capital Group New Financial Metric, “Success Ratio” Ranked in the Top 200 Community Banks for Financial Performance for the Years 2008, 2009, 2010, 2011 & 2012 US Banker & ABA Magazines, 2013 resu
Slide 29: Horizon Outperforms the Market For Total Shareholder Return
Horizon Outperforms the Market For Total Shareholder Return As of March 13, 2014 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 30: Q&A
A NASDAQ Traded Company - Symbol HBNC Q&A