Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Investor Presentation (September 2015)
37 slides from Horizon Bancorp's investor presentation, Sep 28, 2015
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: Who We Are
HORIZON‘ _HORIZO! BANK Who We Are EX Coe Pt ) O NA
Slide 4: Horizon at a Glance
* Horizon at a Glance (1) Includes Peoples Bancorp branches acquired on July 1, 2015* Market data as of September 21, 2015; financial data as of June 30, 2015
Slide 5: Northern Indiana/Southwest Michigan… The Right Side of Chicago
Northern Indiana/Southwest Michigan… The Right Side of Chicago
Slide 6: Four Key & Consistent Revenue Streams
Retail BankingBusiness BankingMortgage BankingWealth Management Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles * Four Key & Consistent Revenue Streams
Slide 7: Horizon's Story
Horizon’s Story Steady GrowthSuperior ReturnsFinancial StrengthConsistent Performance *
Slide 8: YTD Highlights
HORIZON‘ _HORIZO! BANK YTD Highlights Ex COE Pot ) ON AL SvECR Val Coe
Slide 9: Strong Core Banking Results
* Net Income, Pre-tax Pre-provision Income (“PTPP”) and Diluted EPS Strong Core Banking Results Δ Net Income 23% Δ PTPP 44% Δ Dil. EPS 18%
Slide 10: Loan Growth Drives Strong Results
* (Dollars In Millions) Balance as of Balance as of YTD Ann. Loan Type 12/31/14 6/30/15 Δ Commercial $674 $710 11% Residential Mortgage $255 $277 18% Consumer $320 $336 10% Mortgage Warehouse $129 $196 104% Total $1,379 $1,519 21% Loan Growth Drives Strong Results
Slide 11: Stable Core Net Interest Margin
* GAAP Net Interest Margin and Core Net Interest Margin(1) Stable Core Net Interest Margin Δ LQ YOY YTD GAAP -3 bps -11 bps +6 bps Core +4 bps Flat +5 bps (1) Core net interest margin excludes acquisition-related purchase accounting adjustments
Slide 12: Peoples Bancorp Merger Closed On July 1, 2015
Peoples Bancorp MergerClosed On July 1, 2015 *
Slide 13: Complementary Footprint and Increased Scale
* Horizon and Peoples’ financial data as of June 30, 2015. Pro forma financials exclude merger adjustments. Peoples’ market cap as of Feb. 18, 2015, the day prior to deal announcement. Pro forma market cap based on HBNC’s stock price on Sep. 21, 2015. Map Source: SNL Financial Complementary Footprin
Slide 14: Good Strategic Fit
* Strategic Financial Operational Good Strategic Fit Aligned with plan to expand in Indiana and MichiganContinued revenue diversificationStrong core deposit franchise EPS accretion of 4.5% in 2016, first full yearInitial TBV dilution of $0.65 with five year earn backInternal rate of return over 20.0
Slide 15: Fair Pricing At Announcement
* Source: SNL Financial; financial data as of December 31, 2014 and market data as of February 18, 2015Nationwide bank and thrift transactions announced after 12/31/2012 with target’s assets between $200 million and $1 billion, tangible common equity to tangible assets between 10.0% and 15%, LTM ret
Slide 16: Horizon's Growth Story
HORIZON‘ _HORIZO! BANK Horizon’s Growth Story Ex COE Pot ) ON AL SvECR Val Coe
Slide 17: Horizon: A Company on the Move
Horizon: A Company on the Move OrganicExpans.(7) St. JosephSouth BendElkhart Lake County Kalamazoo Indianapolis Carmel M&A(7) Anchor Mortgage Alliance Bank American Trust Heartland 1st MortgageSummitPeoples * Assets ($ Mil.) $721 $2,682 Loans($ Mil.) $548 $1,756 Deposits($ Mil.) $489 $1,935 Branches
Slide 18: Growth Opportunities in All Directions
Growth Opportunities in All Directions * Kalamazoo, Lansing & St. JosephPopulation: 883,000Deposits: $10 billion South Bend, Elkhart & Fort WaynePopulation: 835,000Deposits: $12 billion Indianapolis & Johnson CountyPopulation: 1.4 millionDeposits: $32 billion Lake & Porter CountiesPopulation: 657,00
Slide 19: Solid Historical Earnings
In Millions Net Income History * Solid Historical Earnings 2004 – 2014 CAGR: 10%
Slide 20: Investing in Commercial Lenders Creates Growth
* Investing in Commercial LendersCreates Growth Commercial Loan Balances CLO: Commercial Loan Officer
Slide 21: Balanced Risk In Commercial Portfolio
* Balanced Risk In Commercial Portfolio Commercial Loan Composition as of June 30, 2015
Slide 22: Growth Markets Thriving
Kalamazoo and Indianapolis Loan Balances * Growth Markets Thriving Δ 2014 43% Δ YTD Ann. 26%
Slide 23: Shift to Commercial Lending
June 30, 2015 December 31, 2008 In Millions 2008 2Q15 CAGR Commercial $311 $710 14% Real Estate $291 $473 8% Consumer $280 $336 3% Total $882 $1,519 9% * Shift to Commercial Lending
Slide 24: Strong Low Cost Deposit Growth
December 31, 2008 June 30, 2015 Strong Low Cost Deposit Growth * In Millions 2008 2Q15 CAGR NIB $84 $307 22% IB Trans. $429 $984 14% CDs $329 $294 -2% Total $842 $1,584 10%
Slide 25: Disciplined Credit Culture
* NPLs/ Loans Disciplined Credit Culture
Slide 26: Why Invest In Horizon
HORIZON‘ _HORIZO! BANK Why Invest In Horizon Ex COE Pot ) ON AL SvECR Val Coe
Slide 27: Consistent, Well Executed and Disciplined Business Strategy
Consistent, Well Executed and Disciplined Business Strategy Horizon is a Growth Story10-year Asset and Net Income CAGR of 9% and 10%, RespectivelySeven Acquisitions and Seven Market Expansions Since 2000Capacity to Take Additional Market ShareHistorical Financial Performance Illustrates Ability to E
Slide 28: Shareholder Value Plan - Since 2001
Shareholder Value Plan - Since 2001 Steady Growth in Net Book Value & Earnings Per ShareIncreased Liquidity Through Stock Splits and MergersUninterrupted Dividends for More than 25 YearsAdded to Nasdaq Community Bank Index in 2014Russell 2000 Index Since 2012 *
Slide 29: Highly Regarded For Financial Performance
Highly Regarded For Financial Performance *
Slide 30: Highly Regarded In Our Communities
Highly Regarded In Our Communities * Community Relations Award Urban League of Northwest Indiana, Inc.Nine out of Ten Customers Would Refer a FriendIndependent SurveyBest Bank - Thirteen out of Last Fourteen YearsThe News Dispatch Readers PollBest Bank for Obtaining a Business LoanNorthwest Indiana
Slide 31: Horizon Outperforms the Market For Total Shareholder Return
Horizon Outperforms the MarketFor Total Shareholder Return As of September 21, 2015; 2015 estimated EPS of $2.21 is the mean estimate from 3rd party research analystsSNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe. * Horizon Bancorp: 5-Year Total Return Comparison HBNC Cu
Slide 32: Thank You for Your Investment in Horizon Bancorp
Thank Youfor Your Investment inHorizon Bancorp
Slide 33: A NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Slide 34: Appendix
HORIZON‘ _HORIZO! BANK Appendix EX Coe Pt ) O NA
Slide 35: Non-GAAP Reconciliations
— BANK Non-GAAP Reconciliations Non-GAAP Reconciliation of Net Interest Margin (Dollar Amounts in Thousands, Unaudited) ‘Three Months Ended Six Months Ended June30 March31_— June 30 June 30 ‘Net Interest Margin As Reported 2015 2015 2018 2015, 2018 Nat interest inaome S 17850 $ 16886 $ 16,788 $ 34,7
Slide 36: Peoples Merger Summary
* Based on Horizon’s closing price of $23.02 as of February 18, 2015 Peoples Merger Summary Horizon Bancorp Acquiring Peoples Bancorp Horizon Bancorp Acquiring Peoples Bancorp Deal Price per Share (1) $31.62 Consideration Structure 0.95 HBNC shares for each outstanding PBNI share; $9.75 in cash for
Slide 37: Peoples Transaction Assumptions
* Peoples Transaction Assumptions Category Assumption Cost saves 37% 1x after-tax charges $4.9 million Loan mark $3.5 million or 1.5% of total loans Core deposit intangibles $2.3 million or 1.0% of core deposits Branches Closings Middlebury, Indiana
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