EX-99.1 2 hb_8k0523ex991.htm INVESTOR SLIDESHOW PRESENTATION
Exhibit 99.1
Filed by Horizon Bancorp pursuant to
Rule 425 under the Securities Act of 1933
Subject Company: Horizon Bancorp
Commission File No. 000-10792
Horizon Enters Lafayette Through Strategic Merger

FORWARD LOOKING STATEMENTS This presentation may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies 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. Statements in the presentation materials should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Horizon’s reports filed with the Securities and Exchange Commission, including those described in Horizon’s Annual Report on Form 10-K. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law. Disclosures

ADDITIONAL INFORMATION FOR SHAREHOLDERS In connection with the proposed merger, Horizon will file with the SEC a Registration Statement on Form S-4 that will include a Proxy Statement of Lafayette Community Bancorp (“Lafayette” or “LFYC”) and a Prospectus of Horizon (the “proxy statement/prospectus”), as well as other relevant documents concerning the proposed transaction. SHAREHOLDERS AND INVESTORS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The proxy statement/prospectus and other relevant materials (when they become available), and any other documents Horizon has filed with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents Horizon has filed with the SEC from Horizon at www.horizonbank.com under the tab “About Us – Investor Relations – Documents – SEC Filings.” Alternatively, these documents, when available, can be obtained free of charge from Horizon upon written request to Horizon Bancorp, Attn: Dona Lucker, Shareholder Relations Officer, 515 Franklin Square, Michigan City, Indiana 46360 or by calling (219) 874-9272. The information available through Horizon’s website is not and shall not be deemed part of this presentation or incorporated by reference into other filings Horizon makes with the SEC. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. Horizon and Lafayette and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Lafayette in connection with the proposed merger. Information about the directors and executive officers of Horizon is set forth in Horizon’s Annual Report on Form 10-K filed with the SEC on February 28, 2017, and in the proxy statement for Horizon’s 2017 annual meeting of shareholders, as filed with the SEC on March 17, 2017. Additional information regarding the interests of these participants and any other persons who may be deemed participants in the transaction may be obtained by reading the proxy statement/prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph. Disclosures

* Lafayette Community Bancorp (LFYC) Company Profile Headquartered in Lafayette, IndianaExperienced leadership team with deep community tiesStrong commercial loan growth since 2012 (15.2% CAGR)Continued asset quality improvement since 20125th in deposit market share in Tippecanoe CountyFour branches, averaging $35 million in deposits Financial Highlights Financial Highlights Financial Highlights Financial Highlights ($000s) 2014 2015 2016 Assets $156,016 $162,169 $166,577 Loans 101,317 108,346 132,746 Deposits 137,259 143,303 140,627 Net Income 675 568 902 ROAA 0.43% 0.35% 0.53% TCE/TA 11.70% 11.53% 11.71% NPAs/Assets 2.95% 1.37% 1.37% Pro-forma Financial Highlights Pro-forma Financial Highlights Locations 63 Assets $3.3 Billion Loans $2.3 Billion Deposits $2.6 Billion Acquired Lafayette BranchesHorizon (“HBNC”)HBNC Loan Production Offices Lafayette

* Compelling Rationale Strategic Financial Fills market gap between Indianapolis and Northern IndianaExperienced leadership team retainedHigh quality lending team with big bank experienceScalable platform in the high growth market of Tippecanoe County, IndianaPotential to capture market share from larger institutions EPS accretion of 0.5%, 0.7% and 1.0% in 2018, 2019 and 2020, respectivelyInitial TBV dilution of $0.06 with 3.0 year earn back (cross over method)Internal rate of return of 15%Cost savings of 35%, fully phased in Risk Profile Thorough due diligence process completed (81% of commercial loan portfolio reviewed)Cultural fit and retention of key management members with valuable market knowledge, including top three executivesExperienced Acquirer – Horizon’s 12th acquisition since July 2003

* Tippecanoe County Deposit Market Share – 2016 Deposit Market Share – 2016 Deposit Market Share – 2016 Deposit Market Share – 2016 Rank Institution Deposits ($000s) Market Share 1 JPMorgan Chase $701,835 29% 2 First Merchants 510,925 21% 3 Regions 296,336 12% 4 Old National 257,117 11% 5 Lafayette Community 149,557 6% 6 Centier 125,097 5% 7 Huntington National 123,337 5% 8 9 other institutions 279,352 11% In 2016, the Purdue Research Foundation and Browning Investment announced an investment of $1.2 billion in the Purdue Innovation DistrictPurdue University produces a highly skilled workforce with a focus on STEM industriesTippecanoe County is the 7th highest populated county in Indiana with 63% of the county’s population located in Lafayette-West LafayetteDiversified industry base including manufacturing, trade, transportation, utilities, private educational and health services Largest Employers Market Commentary

* Merger Summary Consideration Mix 90% stock, 10% cash for common and options cashed out Consideration Structure 0.5878 HBNC shares and $1.73 in cash for each outstanding share of Lafayette common stock Aggregate Deal Value (1) $32.0 million$33.5 million (2) Required Approvals Customary regulatory and Lafayette shareholder approval Price / Tangible Book Value 161.9% Price / LTM Earnings 32.6x Price / LTM Earnings +Fully Phased-in Cost Saves 16.4x Core Deposit Premium 9.1% Based on Horizon’s closing price of $25.38 as of May 22, 2017Includes 90,574 shares, or 4.65%, of outstanding LFYC common stock currently owned by Horizon Bancorp

* Transaction Assumptions Category Assumption Cost saves 35% fully phased-in, 75% realized in 2017 1x after-tax charges $1.7 million Non-accretable loan mark $2.0 million or 1.4% of total loans Accretable loan mark $1.4 million or 1.0% of total loans Core deposit intangibles $1.7 million or 1.5% of core deposits Revenue enhancements Reasonable enhancements in loan growth to reflect increased lending limit and comparable to recent growth

A Company on the Move * Assets ($ Mil.) $721 $3,341(1) Loans($ Mil.) $548 $2,269(1) Deposits($ Mil.) $489 $2,593(1) OrganicExpan.(11) St. JosephS. BendElkhart Lake County Kalamazoo Indianapolis Carmel Ft. WayneGrand Rapids Noblesville, IN(2)Columbus, Ohio(3) M&A(12) Anchor Mortgage Alliance American Trust Heartland 1st MortgageSummitPeoples FarmersLaPorteCNB BargersvilleLafayette 11% CAGR 10% CAGR 12% CAGR Financials as of 3/31/2017 reflect Lafayette, excluding merger adjustments Planned new office for 2017Loan Production Office located in Dublin, Ohio

Current BranchesLoan Production OfficesNew Offices in 2017Acquired LFYC BranchesGrowth MarketsEmerging Markets * GrandRapids AnnArbor Columbus NorthwestOhio FortWayne Battle Creek Lafayette Kalamazoo SouthBend Warsaw Indianapolis NorthwestIndiana HQ Growth Opportunities Abound

If you have questions please contact:Mark SecorChief Financial Officer515 Franklin SquareMichigan City, IN 46360(219) 873-2611