EX-99.1 2 hb_8k0729ex.htm SLIDE PRESENTATION
A NASDAQ Traded Company - Symbol HBNC

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 contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future results or performance. As a result, undue reliance should not be placed on these forward-looking statements, which speak only as of the date hereof. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions, and although management believes that the expectations reflected in such forward-looking statements are accurate and reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause our actual results to differ materially include those set forth in Horizon’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K. Statements in this presentation should be considered in conjunction with such risk factors and the other information publicly available about Horizon, including the information in the filings we make with the Securities and Exchange Commission. Horizon does not undertake, and specifically disclaims any obligation, to publicly release any updates to any forward-looking statement to reflect events or circumstances occurring or arising after the date on which the forward-looking statement is made, or to reflect the occurrence of unanticipated events, except to the extent required by law. Forward-Looking Statements

Who We Are *

* Headquartered in Michigan City, IN31 Locations Throughout Indiana and Michigan$2.1 Billion in Assets14 Years of Record EarningsMarket Cap. $192 MillionOwnership9% Insiders13% Employee Benefit Plans29% Institutional Company Profile * Market data as of July 23, 2014; financial data as of June 30, 2014

Northwest Indiana/Southwest Michigan… The Right Side of Chicago

Retail BankingBusiness BankingMortgage BankingWealth Management Complementary Revenue Streams that are Counter-Cyclical to Varying Economic Cycles * Four Key Revenue Streams

Horizon’s Story Steady GrowthSuperior ReturnsFinancial StrengthConsistent Performance *

Second Quarter 2014 Highlights *

2Q14 Highlights * Surpassed $2 Billion in AssetsTotal Loan Growth - QoQ 20%, YTD 24% Commercial Loan Growth - QoQ 23%, YTD 28%QoQ Increase in Core Net Interest Margin from 3.38% to 3.52% (1)Closed SCB Bancorp, Inc. Acquisition on April 3rd, 2014Increased Quarterly Dividend from 11 Cents to 13 Cents per Share (1) Core net interest margin excludes interest income from acquisition related purchase accounting adjustments

Robust Organic Loan Growth in 2Q14 * Loan Type(In Millions) 6/30/14 AcquiredLoans 4/3/14 3/31/14 Organic Change Annualized Organic Growth Commercial $648 ($70) $529 $49 38% Residential Mtg. $236 ($44) $190 $2 5% Consumer $297 ($10) $280 $7 10% Mtg. Warehouse $141 - $102 $39 154% Total Loans $1,321 ($124) $1,101 $97 36% * Table excludes loans held for sale

* Summit Community Bank Acquisition Adds Value Acquisition Metrics(1)(2) Acquisition Metrics(1)(2) Deal Value (“DV”) $18.9 mil. DV/ Tg. Book Value 120.5% DV/ LTM Earnings 11.1x Core Deposit Prem. 2.8% Closed on April 3, 2014Illustrates Focus on Larger Markets with Growth PotentialFour Experienced Lenders to Drive Loan GrowthAccretive to EPS, Reasonable TBV Dilution Earnback Period7.1% Growth in Loans from April 3, 2014 to June 30, 2014 Deal value as of April 3, 2014 Financial data for SCB Bancorp at or for the year ended December 31, 2013

Horizon’s Growth Story *

A Company on the Move OrganicExpans.(7) St. JosephSouth BendElkhart Lake County Kalamazoo IndianapolisCarmel M&A(6) Anchor Mortgage Alliance Bank American Trust Heartland 1st MortgageSummit * Assets ($mm) $721 $2,073 Loans($mm) $543 $1,329 Deposits($mm) $489 $1,499 Branches 7 31 8.1% CAGR 6.9% CAGR 7.8% CAGR

Growth Opportunities in All Directions * Kalamazoo, Lansing & St. JosephPopulation: 368,000Deposits: $4 billion South Bend, Elkhart & GoshenPopulation: 467,000Deposits: $7 billion Indianapolis & Johnson CountyPopulation: 1.4 millionDeposits: $30 billion Lake & Porter CountiesPopulation: 658,000Deposits: $10 billion LEGACYLa Porte CountyPopulation: 112,352Deposits: $2 billion N E S W Note: Data by primary counties for each market

Record Earnings “Fourteen” Consecutive Years 2000 – 2013 CAGR: 13.6% In Millions Net Income History *

* Investing in Commercial LendersCreates Growth Commercial Loan Balances

* Balanced Risk In Commercial Portfolio Commercial Loan Composition as of June 30, 2014

Kalamazoo and Indianapolis Loan Balances * Growth Markets Thriving $229 Total

June 30, 2014 December 31, 2008 In Millions 2008 2Q14 CAGR Commercial $311 $648 14.3% Real Estate $291 $376 4.8% Consumer $280 $297 1.1% * Shift to Commercial

December 31, 2008 June 30, 2014 Strong Low Cost Deposit Growth 2008 – 2Q14 CAGR 2008 – 2Q14 CAGR Nonint. Bearing 23.7% MMDA & Savings 20.4% IB Demand 12.6% CDs (1.1%) *

* NPLs/ Loans Disciplined Credit Culture

* Why Invest In Horizon

Shareholder Value Plan - Since 2001 Steady Growth in Net Book Value & EPS DividendsUninterrupted Dividends for more than 25 YearsDividend Increases Aligned with Earnings GrowthImproving LiquidityStock Splits in 2001, 2003, 2011 and 2012Common Stock Issued in Heartland and Summit AcquisitionsRussell 2000 Index Since 2012 *

Highly Regarded For Financial Performance Top 200 Community Banks for Financial Performance Six Consecutive Years, 2008 - 2013US Banker & ABA MagazinesTop 10% of Community BanksAnnual Community Bankers Cup, 2012 & 2013Raymond JamesKBW Bank Honor Roll2011 & 2012 *

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 - Eleven out of Last Twelve YearsThe News Dispatch Readers PollBest Bank for Obtaining a Business LoanNorthwest Indiana Business Quarterly Family Friendly Work PoliciesIU Health / Clarian Award

Horizon Outperforms the MarketFor Total Shareholder Return As of July 23, 2014SNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe.SNL U.S. Bank $1B-$5B: Includes all Major Exchange Banks in SNL's coverage universe with $1B to $5B in assets as of most recent financial data. * Horizon Bancorp: 5-Year Total Return Comparison P/LTM EPS 11.4x P/TBV 135% Div. Yield 2.5%

Thank Youfor Your Investment inHorizon Bancorp

* A NASDAQ Traded Company - Symbol HBNC

* Appendix

* Non-GAAP Reconciliations