EX-99.1 2 hb_8k1106ex.htm SLIDE PRESENTATION
Exhibit 99.1
A NASDAQ Global Select Traded Company - Symbol HBNC

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. Forward-Looking Statements

* Mark E. SecorEVP & Chief Financial Officer

Horizon is a Growth Story *

Indiana, Michigan and Ohio… The Right Side of Chicago Illinois and Chicago-High Taxes & Living Costs-Low Credit Rating-Unfriendly Business Environment

* Branch Footprint December 2006 Locations – 15Counties – 6 Branches Michigan Illinois Indiana Ohio
6 Branch Footprint December 2006 Locations – 15Counties – 6 Branches Michigan Illinois Indiana Ohio

7 Considerable Expansion through October 2017 BranchesLoan Production Offices New Branch in 2018 Illinois Locations – 68Counties – 25 Michigan Indiana Ohio
* Considerable Expansion through October 2017 BranchesLoan Production Offices New Branch in 2018 Illinois Locations – 68Counties – 25 Michigan Indiana Ohio

($’s in millions, except per share data)Category 2006 2017 Assets $1,222 $3,520 Loans $848 $2,414 Deposits $914 $2,608 Trust Assets Under Management $391 $2,429 Market Capitalization $88 $681 Stock Price $8.13 $29.17 Average Daily Trading Volume (1) 5,811 58,739 * Growth Transformation Footnote Index included in Appendix

Balance Sheet Positioned Well for the Future * Asset SensitiveGrowth in Higher Yielding AssetsGood Core Deposits Growth

September 30, 2017 December 31, 2011 ($ in Millions) 12/31/11 9/30/17 CAGR YTD Δ Commercial $352 $1,274 25% 19% Real Estate 365 670 11% (1%) Consumer 265 485 11% 22% Total $983 $2,429 17% 13% * Shift to Commercial Lending(as a percent of total loans)

September 30, 2017 * Well Diversified Loan Portfolio(Loans as a Percent of Total Loans)

September 30, 2017 December 31, 2011 * Strong Low Cost Deposit Growth YTD Cost of Deposits – 0.94% YTD Cost of Deposits – 0.36% ($ in Millions) 12/31/11 9/30/17 CAGR Non-interest $131 $563 29% Interest 538 1,536 20% CDs 341 509 7% Total $1,101 $2,608 18%

Good Historical EarningsExhibits Ability to Execute *

* Solid Earnings Growth (2) Footnote Index included in Appendix

* Less Dependence on Mortgage Revenue (1) Mortgage Revenue defined as interest and fee income from mortgage warehouse loans plus gain on sale of mortgage loans.

* GAAP Net Interest Margin and Core Net Interest Margin (1) Net Interest Margin Increasing Δbps GAAP 34 bps Core 29 bps Footnote Index included in Appendix

* Wealth Management Growth Drives Fee Income

A Company on the Move *

Always Looking for Opportunities to Create Shareholder Value * Assets ($ Mil.) $721 $3,905(1) Loans($ Mil.) $548 $2,725(1) Deposits($ Mil.) $489 $2,879(1) OrganicExpans.(11) St. JosephSo. BendElkhart Lake County Kalamazoo Indianapolis Carmel Ft. WayneGrand Rapids Noblesville IN(2)Columbus OH(3) M&A(13) Anchor Mortgage Alliance American Trust Heartland 1st MortgageSummitPeoples FarmersLaPorteCNB BargersvilleLafayetteWolverine(1) 12% CAGR 11% CAGR 13% CAGR Footnote Index included in Appendix
Always Looking for Opportunities to Create Shareholder Value * Assets ($ Mil.) $721 $3,905(1) Loans($ Mil.) $548 $2,725(1) Deposits($ Mil.) $489 $2,879(1) OrganicExpans.(11) St. JosephSo. BendElkhart Lake County Kalamazoo Indianapolis Carmel Ft. WayneGrand Rapids Noblesville IN(2)Columbus OH(3) M&A(13) Anchor Mortgage Alliance American Trust Heartland 1st MortgageSummitPeoples FarmersLaPorteCNB BargersvilleLafayetteWolverine(1) 12% CAGR 11% CAGR 13% CAGR Footnote Index included in Appendix

Growth MarketsEmerging Markets 20 GrandRapids AnnArbor Columbus NW Ohio FortWayne Lafayette Kalamazoo SouthBend Warsaw Indianapolis NWIndiana Growth Opportunities Abound Midland Troy Illinois Indiana Ohio Michigan Dayton

Growth MarketsEmerging Markets * GrandRapids AnnArbor Columbus NW Ohio FortWayne Lafayette Kalamazoo SouthBend Warsaw Indianapolis NWIndiana Growth Opportunities Abound Midland Troy Illinois Indiana Ohio Michigan Dayton
Considerable Market Share Opportunities * (1) (2) (3) Market Share Market Share Key Market (1) Deposit Market (2)($’s in billions) Large Institutions (3) Horizon Columbus, OH $66 79% 0% Indianapolis, IN $48 75% 1% Grand Rapids, MI $21 74% 0% Northwest Indiana $12 51% 4% Fort Wayne, IN $8 60% 1% Kalamazoo, MI $4 79% 1% Lafayette, IN $3 58% 5% Footnote Index included in Appendix

* Number of Banks Headquartered in Indiana and Michigan M&A Opportunities ContinueAs of December 31, 2016 139 Banks within Targeted Markets194 Banks Headquartered in Ohio213 Banks Headquartered in Indiana & Michigan

($ in millions)Category Horizon Bancorp Lafayette Community Bancorp Wolverine Bancorp, Inc. Pro Forma Total Assets $3,321 $172 $379 $3,872 Total Loans $2,256 $135 $316 $2,707 Total Deposits $2,419 $149 $271 $2,839 Locations (1) 60 4 4 68 * 2017 Whole Bank Acquisitions Footnote Index included in Appendix

* Fills market gap between Indianapolis and Northern IndianaExperienced leadership team retained, with big bank experienceScalable platform in the high growth market of Lafayette, Indiana (home of Purdue University)Potential to capture market share from larger institutions Strategic Reasons Highly profitable franchise with strong core market share in the Great Lakes Bay region of MichiganPotential expansion of Troy loan production office in the attractive market of Oakland County, MichiganRetention of seasoned commercial lending teamPotential disruption in the Michigan market Wolverine Bancorp, Inc.Closed 10/17/17Deal Value $95.1mm Lafayette Community BancorpClosed 9/1/17Deal Value $34.5mm

2018 EPSAccretion TBVEarn-backPeriod Cost Savings(fully phased in) Internal Rateof Return Lafayette Community Bancorp 0.5% 3.0 years 35% 15% Wolverine Bancorp, Inc. 5.4% Less than 1.0 year 38%(1) 17% * Financial Reasons 28% of total cost savings are attributable to thrift benefit plans

Historical Financial Performance Illustrates Ability to ExecuteConsistent, Well Executed and Disciplined Business StrategyA Growth Story10-year asset and net income CAGR of 11% and 15%, respectivelyThirteen acquisitions and eleven market expansions since 2002Capacity to take additional market shareEarnings improvement through mass and scaleEntering the “Sweet-Spot” for Market Performance and Trading MultiplesAptitude and Skill to Continue Mergers and Acquisitions * Investment Thesis

* Scale Drives Shareholder Value Financial data as of June 30, 2017; market data as of August 31, 2017. Nationwide publicly traded banks, excluding merger targets. Source: SNL Financial

Horizon Outperforms the MarketFor Total Shareholder Return As of September 30, 2017SNL U.S. Bank: Includes all Major Exchange Banks in SNL's coverage universe. * Horizon Bancorp: 5-Year Total Return Comparison

A NASDAQ Global Select Traded Company - Symbol HBNC

Appendix *

Slide 8(1) Based on the daily trading volume during the fourth quarter of 2006 and third quarter of 2017.Slide 14(1) Core net income and core diluted EPS excludes one-time merger expenses, gain on sale of securities and death benefit on bank owned life insurance. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.)(2) 2012 results benefited from a record level of mortgage loan production volume and mortgage warehouse loan balances.Slide 16(1) Core net interest margin excludes acquisition-related purchase accounting adjustments. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.)Slide 19(1) Financial information as of 9/30/2017 for Horizon Bancorp reflects the inclusion of 9/30/2017 financial information for the Wolverine Bancorp, Inc. acquisition, excluding merger adjustments.(2) Planned new branch for 2018 – Noblesville, IN.(3) Loan production office (“LPO”) located in Dublin, OH.Slide 21(1) All Key Markets are MSAs except for Northwest Indiana which includes Lake and Porter Counties.(2) Deposit Market Share as of 6/30/2017.(3) Large Institutions defined as total assets greater than or equal to $10.0 billion at 6/30/2017.Slide 23Horizon Bancorp financials as of 6/30/2017; Lafayette Community Bancorp and Wolverine Bancorp, Inc. financials as of 3/31/2017.(1) Locations include LPOs of Horizon Bancorp [4] and Wolverine Bancorp, Inc. [1]. Horizon’s LPOs are located in Fort Wayne, IN; Grand Rapids, MI; Dublin, OH; and Carmel, IN. Wolverine’s LPO is located in Troy, MI. * Footnote Index
Slide 8(1) Based on the daily trading volume during the fourth quarter of 2006 and third quarter of 2017.Slide 14(1) Core net income and core diluted EPS excludes one-time merger expenses, gain on sale of securities and death benefit on bank owned life insurance. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.)(2) 2012 results benefited from a record level of mortgage loan production volume and mortgage warehouse loan balances.Slide 16(1) Core net interest margin excludes acquisition-related purchase accounting adjustments. (See further in the Appendix for a reconciliation of these non-GAAP amounts to their GAAP counterparts.)Slide 19(1) Financial information as of 9/30/2017 for Horizon Bancorp reflects the inclusion of 9/30/2017 financial information for the pending Wolverine Bancorp, Inc. acquisition, excluding merger adjustments.(2) Planned new branch for 2018 – Noblesville, IN.(3) Loan production office (“LPO”) located in Dublin, OH.Slide 21(1) All Key Markets are MSAs except for Northwest Indiana which includes Lake and Porter Counties.(2) Deposit Market Share as of 6/30/2017.(3) Large Institutions defined as total assets greater than or equal to $10.0 billion at 6/30/2017.Slide 23Horizon Bancorp financials as of 6/30/2017; Lafayette Community Bancorp and Wolverine Bancorp, Inc. financials as of 3/31/2017.(1) Locations include LPOs of Horizon Bancorp [4] and Wolverine Bancorp, Inc. [1]. Horizon’s LPOs are located in Fort Wayne, IN; Grand Rapids, MI; Dublin, OH; and Carmel, IN. Wolverine’s LPO is located in Troy, MI. * Footnote Index

* Loan Portfolio Composition Loan Category BalanceSeptember 30, 2017($’s in millions) % of Total Loans % of Tier 1 Capital + ALLR Commercial Owner Occupied Real Estate $404,064 17% 119% Non-Owner Occupied Real Estate $533,762 22% 157% Residential Development $4,031 0% 1% Development and Spec Land $43,383 2% 13% Commercial & Industrial $288,550 12% 85% Residential Real Estate $559,853 23% 165% Residential Construction $14,825 1% 4% Mortgage Warehousing $95,483 4% 28% Consumer, Direct $85,248 3% 25% Consumer, Indirect $207,466 8% 61% Home Equity $192,776 8% 57%

* Non-GAAP Reconciliations

* Non-GAAP Reconciliations