Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Merger or Acquisition (October 2018)
17 slides from Horizon Bancorp's merger presentation, Oct 30, 2018
Slide 1: Horizon Expands Presence in Indiana Through Acquisition of Salin Bancshares, Inc.
Horizon Expands Presence in Indiana Through Acquisition of Salin Bancshares, Inc.
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon” or “HBNC”). For these statements, Horizon claims the prote
Slide 3: Additional Information for Shareholders
ADDITIONAL INFORMATION FOR SHAREHOLDERS In connection with the proposed merger, Horizon will file with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 that will include a proxy or information statement, as well as other relevant documents concerning the proposed t
Slide 4: Salin Bancshares, Inc. Company Profile
4 Salin Bancshares, Inc. Company Profile Headquartered in Indianapolis, Indiana; founded in 1902 Branch presence in central and northern Indiana markets that are of strategic importance to HorizonSuperb deposit base – non-CD deposits represent more than 90% of total deposits and non-interest bearing
Slide 5: Compelling Rationale
5 Compelling Rationale Strategic Financial Well-positioned 115+ year old franchise in central and northern Indiana that complements Horizon’s existing marketsEnhances Horizon’s presence in the attractive Fort Wayne, Columbus, and Indianapolis locales along with numerous locations along-and-between t
Slide 6: Salin's Premier Markets
Notable Employers 6 Salin’s Premier Markets Counties in which Salin operates have a weighted average projected household income change from 2019-2024 of 10.25% (National average is 8.82% and HBNC average is 9.81%)Operate in MSA’s with a combined population of just under 3 millionDiverse and robust o
Slide 7: Merger Summary
7 Merger Summary Based on Horizon’s closing price of $16.95 as of 10/26/2018274.5456 Salin shares outstanding Horizon Bancorp Acquiring Salin Bancshares, Inc. Consideration Mix(1) 82% stock, 18% cash Consideration Structure 23,907.5 HBNC shares and $87,417.17 in cash for each outstanding Salin share
Slide 8: Transaction Pricing
8 Transaction Pricing Source: S&P Global Market IntelligenceNationwide bank & thrift transactions announced after 12/31/2016 with targets’ assets between $600.0 million and $1.5 billion, TCE/TA Ratio less than 11.0%, LTM ROAA less than 0.70% and excluding transactions where pricing information is un
Slide 9: Transaction Assumptions
9 Transaction Assumptions Category Assumption Cost saves 45% fully phased-in (80% realized in 2019, 100% thereafter) Fair Market Value Adjustments and Purchase Accounting Non-accretable: -$6.1 million or 1.0% of loansAccretable: -$3.8 million or 0.6% of loansOREO: -$150 thousandFixed Assets: -$1.7 m
Slide 10: Cost Savings
* Cost Savings Thorough analysis of cost savings factoring in:Elevated expense structurePotential branch consolidationDuplicative executive, back office and technology functionsHorizon’s considerable experience integrating acquisitionsAll Salin retail branch personnel who meet Horizon’s hiring stand
Slide 11: A Company on the Move
A Company on the Move OrganicExpans.(11) St. Joseph,S. Bend,Elkhart,Merrillville Kalamazoo Indianapolis Carmel Ft. Wayne,Grand Rapids Columbus,Noblesville,Holland M&A(13) Anchor Mtg.,Alliance American Trust Heartland 1st Mtg.,Summit,Peoples Farmers,LaPorte,CNB Bargersville,Lafayette,Wolverine Columb
Slide 12: Growth Markets, Future Markets
Growth MarketsFuture Markets 12 GrandRapids/Holland AnnArbor NWOhio FortWayne Lafayette Kalamazoo SouthBend Warsaw Indianapolis NWIndiana Michigan Indiana Ohio Illinois Great LakesBay SE Michigan Growth Opportunities Abound
Slide 13: Appendix
HORIZON‘ — BAN BANK Appendix CCbo Py ib ONAL Ss c Se No sco be A De vo eck Sls:
Slide 14: Loan Portfolio Composition
Source: S&P Global Market Intelligence. Data based on regulatory filings as of 6/30/2018 14 Loan Portfolio Composition
Slide 15: Deposit Composition
15 Deposit Composition Source: S&P Global Market Intelligence. Data based on regulatory filings as of 6/30/2018
Slide 16: Salin Financial Highlights
16 Salin Financial Highlights Source: S&P Global Market IntelligenceNote: Salin financials based on bank-level regulatory filingsTax-effected at 21% based on S-Corp statusNPAs exclude restructured loans
Slide 17: If you have questions please contact
If you have questions please contact:Mark SecorChief Financial Officer515 Franklin StreetMichigan City, IN 46360(219) 873-2611
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