Horizon Bancorp, Inc. · NASDAQ:HBNC
Horizon Bancorp — Shareholder Meeting (May 2008)
41 slides from Horizon Bancorp's shareholder meeting presentation, May 8, 2008
Slide 1: NASDAQ Traded Company - Symbol HBNC
A NASDAQ Traded Company - Symbol HBNC
Slide 2: Horizon
HORIZON
Slide 3: Thomas H. Edwards
Thomas H. Edwards Executive Vice President - Horizon Bancorp President & Chief Operating Officer - Horizon Bank
Slide 4: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward- looking statements regarding financial performance, business prospects, growth and operating strategies. For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Se
Slide 5: Horizon Bank Total Loans Outstanding
Horizon Bank Total Loans Outstanding
Slide 6: Commercial Loan Outstandings by Type
Commercial Loan Outstandings by Type Development and Spec Land Loans 6% Construction - Other Spec Homes Owner Occupied 2% 3% RE Commercial and 29% Industrial 2% Non Owner Occupied RE 33% [E1Development and Spec Land Loans @ Construction - Spec Homes ‘Commercial and industrial Non Owner Occupied RE ‘
Slide 7: Consumer Loan Outstandings by Type
Consumer Loan Outstandings by Type Other Direct 13% Home Equity Line of Credit 21% Indirect 59% Home Equity Term Th indirect Home Equity Term (iHome Equity Line of Credit 1 Other Direct
Slide 8: Custom group of publicly traded Indiana banks
Source: Custom group of 23 publicly traded banks headquartered in the state of Indiana from FDIC Uniform Bank Performance Report
Slide 9: Custom group of publicly traded Indiana banks
Source: Custom group of 23 publicly traded banks headquartered in the state of Indiana from FDIC Uniform Bank Performance Report
Slide 10: Custom group of publicly traded Indiana banks
Source: Custom group of 23 publicly traded banks headquartered in the state of Indiana from FDIC Uniform Bank Performance Report
Slide 11: Custom group of publicly traded Indiana banks
Source: Custom group of 23 publicly traded banks headquartered in the state of Indiana from FDIC Uniform Bank Performance Report
Slide 12: Consumer Credit Delinquency Bulletin
Source: ABA Consumer Credit Delinquency Bulletin
Slide 13: Consumer Credit Delinquency Bulletin
Source: ABA Consumer Credit Delinquency Bulletin
Slide 14: Consumer Credit Delinquency Bulletin: Direct Portfolio
Horizon’s data includes other direct installment loans, but, Home Equity portion of direct portfolio is 57% Source: ABA Consumer Credit Delinquency Bulletin
Slide 15: Consumer Credit Delinquency Bulletin: Direct Portfolio
Horizon’s data includes other direct installment loans, but, Home Equity portion of direct portfolio is 57% Source: ABA Consumer Credit Delinquency Bulletin
Slide 16: Consumer Credit Delinquency Bulletin: Revolving Portfolio
Horizon’s data includes other direct installment loans, but, Home Equity portion of revolving portfolio is 98% Source: ABA Consumer Credit Delinquency Bulletin
Slide 17: Consumer Credit Delinquency Bulletin: Revolving Portfolio
Horizon’s data includes other direct installment loans, but, Home Equity portion of revolving portfolio is 98% Source: ABA Consumer Credit Delinquency Bulletin
Slide 18: Craig M. Dwight
Craig M. Dwight Chief Executive Officer of Horizon Bancorp & Horizon Bank
Slide 19: Horizon
HORIZON
Slide 20: Outline
Outline • Industry Overview • Stock Performance • Historical Financial Review • Expansion Plans
Slide 21: International Headline News
International - - Headline News • Citi - Takes the Mother of All Write Downs WSJ - - 1-21-08 • Deutsche Bank - Subprime Losses Could Reach $400 Billion CFO.COM 11-12-07
Slide 22: Local Headline News
Local - - Headline News • Michigan Foreclosure Rate Increased 179% Grand Rapids Press 2-9-08 • Indiana Ranked Among the Top 10 States in Foreclosure Filings NWI Times 11-02-07 • Bank Loan Demand Down to Eight-Year Low Fed Reserve Board Publication 1-2008
Slide 23: Capital Offerings - Headline News
Capital Offerings - Headline News • Citi - Raises $30 Billion since November – April 22, 2008 CFO.com • National City - To Raise $7 Billion – April 21, 2008 Press Release • Royal Bank of Scotland (RBS) - $24 Billion – April 22, 2008 WSJ.com
Slide 24: Supply & Demand
Supply & Demand • Fewer Investors in Bank Stocks • Excess Supply & Low Demand = Lower Price • Economic Cycle
Slide 25: Comparative Stock Performance - Years 1978 through 2008
Comparative Stock Performance - 30 Years 1978 through 2008 R R R T
Slide 26: Comparative Stock Performance
Comparative Stock Performance - 10 Years
Slide 27: Horizon
HORIZON. __HORIZOb
Slide 28: $8.1 $7.5 $7.1 $6.9 $6.5 $5.5 | $4.4 2001 $38 2000 Bab Rea AI
$8.1 $7.5 $7.1 $6.9 $6.5 $5.5 | $4.4 2001 $38 2000 Bab Rea AI aaAa
Slide 29: Historical Treasury Yield Curves
Historical Treasury Yield Curves == 4/24/2008 — 4/24/2007 o> 4/24/2006 05 1 Vimo 3mo Source: www,ustreas.gov : 1 r ‘ 2y 3yr 5Syr Tyr 40 yr yr Oy
Slide 30: Horizon's Efficiency Ratio
Horizon’s Efficiency Ratio Peer Data Source: KBW - Indiana Publicly Traded Banks 3-31-08
Slide 31: Horizon's First Quarter Net Income
Horizon’s - - 1 st Quarter Net Income
Slide 32: Market Opportunities
Market Opportunities
Slide 33: 2008-2009 Opportunities
2008 - - 2009 Opportunities • Mortgage Lending • Deposit Gathering & Market Consolidation • Net Interest Margin • Trust & Investment Management
Slide 34: Mortgage Lending
Mortgage Lending • Mortgage Brokers - Going Out of Business • Horizon has Expertise in FHA/VA • Major Players Pulling Back - Countrywide • We Fund Loans at Closing • Excellent Team of Loan Advisors
Slide 35: Deposit Gathering
Deposit Gathering • Lake County Indiana – Deposit density - $6 billion – Market consolidation / fewer independent banks • New and/or Improved Deposit Products – Free business checking – IRAs - daily deposits – Stream line retail checking products
Slide 36: Net Interest Margin
Net Interest Margin • Benchmark Asset & Liabilities to Wholesale Funding • Reduce Dependence on Borrowed Funds and Negotiated Certificates of Deposit • Normal Yield Curve
Slide 37: Trust & Investment Income
Trust & Investment Income • Market Opportunities Due to Consolidation • Investors are Looking for Returns & Advice • Horizon’s Trust Company has Excellent Investment Returns
Slide 38: Horizon
HORIZON. __HORIZOb
Slide 39: Current & Future Locations
Current & Future Locations y 1 \ 18 McHenry} e & 1 3 --Man Buren ‘Kalamazoo Michigan baGrange = H i Noble { fo Kosciuskd {Whitley Livingston f Ford—troquois
Slide 40: Expansion
Expansion • People First - Location Second • New Offices to Demonstrate Performance and Growth • History of New Offices at Breakeven in Eighteen Months or Less
Slide 41: Horizon
HORIZON