Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Q1 2025 Earnings Presentation
23 slides from Horizon Bancorp's earnings presentation, Apr 24, 2025
Slide 1: Investor Presentation
Investor Presentation Horizon Bancorp, Inc. (NASDAQ: HBNC) First Quarter Ended March 31, 2025 April 24, 2025 Beyond ordinary banking
Slide 2: Important Information
Important Information Forward-Looking Statements This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon cla
Slide 3: Executive Management Team
Executive Management Team Kathie A. DeRuiter Todd A. Etzler Lynn M. Kerber EVP & Senior EVP & Corporate Secretary EVP & Chief Commercial Operations Officer & General Counsel Banking Officer Thomas M. Prame Mark E. Secor John R. Stewart, CFA® President & Chief EVP & Chief EVP & Chief Executive Office
Slide 4: First Quarter 2025
First Quarter 2025 HIGHLIGHTS & DEVELOPMENTS • Improved profitability and positive operating leverage. Strong earnings growth and a sixth consecutive quarter of net interest margin expansion. • Quality organic loan growth o Linked quarter annualized (LQA) loan growth of 5% o Commercial loan growth o
Slide 5: Strategically Focused Loan Growth
Strategically Focused Loan Growth 1Q25 HIGHLIGHTS & DEVELOPMENTS • Strong growth in Commercial Real Estate & C&I o Planned run-off in the lower-yielding Indirect auto loan portfolio • Total loan growth* of $63.4MM or 5% LQA o Continuing to maintain highly diverse residential, consumer, C&I and CRE p
Slide 6: Diversified Commercial Portfolio
Diversified Commercial Portfolio 1Q25 HIGHLIGHTS & DEVELOPMENTS • Commercial loan balances grew organically 13% LQA o Quarter end balances up $103MM • Well balanced geographies, product mix and industry o No segment exceeds 6.0% of total loans o CRE represents 210%* of RBC versus 240% for peers** *
Slide 7: Prime Consumer & Residential Lending
Prime Consumer & Residential Lending 1Q25 HIGHLIGHTS & DEVELOPMENTS • Direct consumer and Mortgage portfolios relatively flat • Indirect auto declined $36MM from planned run-off • Home lending portfolios composed of higher quality borrowers, significant capacity to pay and low LTV HOME EQUITY MORTGA
Slide 8: Strong Asset Quality Metrics
Strong Asset Quality Metrics *Includes all substandard loans and commercial and consumer non performing loans 8
Slide 9: Relationship Based Core Deposits
Relationship Based Core Deposits 1Q25 HIGHLIGHTS & DEVELOPMENTS • Consumer and Commercial Deposits o Positive momentum in core relationships and balances o Treasury management team investments making a positive impact • Public Deposits o Focusing on primary bank relationships o Planned runoff of non
Slide 10: NIM Expansion
NIM Expansion 1Q25 HIGHLIGHTS & DEVELOPMENTS • NIM expansion driven by the continued favorable change in the mix of earning assets, which yielded only a 2-basis point decline in earning asset yields, despite the 5-basis points of interest recoveries benefiting Q4 yields and the impact of a lower ave
Slide 11: Investment Securities Detail
Investment Securities Detail 1Q25 HIGHLIGHTS & DEVELOPMENTS 1Q24 2Q24 3Q24 4Q24 1Q25 ROLL-OFF/CASH FLOW $27 $26 $23 $23 $20 • No new investments in the quarter SALES – – – $332 $5 • High credit quality treasuries, agencies, municipals DURATION (YEARS) 6.9 6.8 6.8 7.1 7.0 and mortgage-backed securiti
Slide 12: Non-Interest Income
Non-Interest Income 1Q25 HIGHLIGHTS & DEVELOPMENTS • Non-interest income includes a $7.0MM gain from the sale of mortgage warehouse business and a $0.4MM loss on the sale of a single investment security. • Well diversified income stream aligned with core community banking model • Mortgage revenue be
Slide 13: Non-Interest Expense
Non-Interest Expense 1Q25 HIGHLIGHTS & DEVELOPMENTS • Well-executed expense efforts in Q4 led to the successful reduction of Q1 run-rates, in line with expectations. Management remains focused on expense control and achieving sustainably positive operating leverage. • Non-interest expenses declined
Slide 14: Strong Capital Position
Strong Capital Position CET1 Ratio * The tangible common equity to tangible common assets (TCE/TA) ratio and tangible book value per share (TBVPS) are non-GAAP measures. Please see appendix for reconciliations of non-GAAP information to its most comparable GAAP measures. 14 ** Preliminary estimate –
Slide 15: Full-Year 2025 Guidance Summary
Full-Year 2025 Guidance Summary • Period-end total loans HFI to grow mid-single-digits Loans (HFI) • Growth primarily in higher-yielding commercial loans; partially funded by continued planned runoff in indirect auto loans of ~$100MM for the year • Period-end total deposit balances to grow low-singl
Slide 16: On The Horizon
On The Horizon Positive Momentum Across the Franchise Highly Attractive Constant, High Tenured Deposit Lean In Operating Midwestern Markets Quality Loan Growth Base With Culture Significant Liquidity 70+ branches strategically Positive loan momentum Tenured, granular Proactively managing located in
Slide 17: Appendix
HORIZON‘ BANK
Slide 18: Diverse Commercial Lending Portfolio
Diverse Commercial Lending Portfolio % of 03/31/2025 Commercial % of Total Loan STRONG AND COMMERCIAL LOANS BY INDUSTRY Lessors - Residential Multi Balance $296 Portfolio 9.7% Portfolio 6.0% TRADITIONAL Health Care, Educational Social Assist. 254 8.3% 5.2% COMMERCIAL LENDING NOO- Warehouse/Industria
Slide 19: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Certain information set forth in this presentation refers to financial measures determined by methods other than in accordance with GAAP. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. We believe
Slide 20: Non-GAAP Reconciliation
HORIZON Non-GAAP Reconciliation —_ BANK Non-GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin (Dollars in Thousands, Unaudited) Three Months Ended March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Interest income (GAAP) (A) $s 89,175 $ 93,350
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation — BANK Non-GAAP Reconciliation of Tangible Common Equity to Tangible Assets (Dollars in Thousands, Unaudited) Three Months Ended March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 a Total stockholders’ equity (GAAP) (A) s 776,061 $ 763,582 $ 754,
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Total stockholders’ equity (GAAP) Intangible assets (end of period) Total tangible common equity (non-GAAP) Common shares outstanding Tangible book value per common share (non- GAP) : Non-GAAP Reconciliation of Tangible Book Value Per Share (Doliars in Thousands, Unaudited) T
Slide 23: Thank you
Thank you John R. Stewart, CFA® Executive Vice President & Chief Financial Officer 515 Franklin Street, Michigan City, IN 46360 219-814-5833 Investor.HorizonBank.com