EX-99.2 4 hb_8k0526992.txt ASCII VERSION OF POWER POINT PRESENTATION [LOGO OMITTED] HORIZON BANCORP A NASDAQ Traded Company - Symbol HBNC [A PDF file of the actual PowerPoint Presentation is attached to this filing] 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 Securities Litigation Reform Act of 1995. History o Founded in 1873 o Located in Northwest Indiana and Southwest Michigan o Total Assets: $900 million o Publicly Held Company Since Early 1960's - Traded Over the Counter o NASDAQ Small Cap in 2001 o Employees Own Approximately 18% o Insiders Own Approximately 30% Total Assets [line graph omitted] 1873 $ 100,000 1883 $ 470,000 1893 $ 712,000 1903 $ 905,000 1913 $ 1,269,000 1923 $ 2,250,000 1933 $ 4,000,000 1943 $ 5,000,000 1953 $ 10,590,000 1963 $ 36,760,000 1973 $ 109,155,000 1983 $ 179,008,000 1993 $ 364,000,000 2003 $ 720,000,000 2004 $ 913,000,000 2005 $1,030,000,000 CAGR 1873 to 2004: 7.25% 1993 to 2004: 7.9% FDIC CAGR: 1934 to 2004: 5.3% Total Assets [line graph omitted] 1994 $ 369,470 1995 $ 368,013 1996 $ 382,038 1997 $ 359,751 1998 $ 416,154 1999 $ 525,804 2000 $ 531,776 2001 $ 587,945 2002 $ 720,130 2003 $ 757,443 2004 $ 913,831 2005 $1,033,000 CAGR 3.02% (1994 to 1998) CAGR 14.25% (1997 to 2004) Business Lines o Retail Banking o Commercial Banking o Mortgage Lending o Mortgage Warehousing o Trust & Investment Management o Goal is to Balance Revenue Streams Delivery Systems 1999 2004 Post Merger ---- ---- ----------- Full Service Branches 8 9 12 ATM's 34 17 24 Loan & Deposit Production Offices 0 2 3 Internet Banking No Yes Yes Deposit Opportunities Total Total Deposits Deposits Horizon's MSA Horizon Market (millions) (millions) Share South Bend - Mishawaka, IN $3,214 0 0 Lake & Porter Counties, IN $8,228 $118 1.4% Michigan City - La Porte, IN $1,260 $440 34.9% Niles - Benton Harbor, MI $1,918 $35 1.8% Source: FDIC June 30, 2004 Current Locations [map omitted] Deposit Market Share - Percent [bar graph omitted] 1999 2000 2001 2002 2003 2004 -------------------------------------------------------- La Porte County, IN 28% 30% 31% 35% 35% 39% Porter County, IN 2% 3% 6% 9% 10% 12% Berrien County, MI 0% 0% 0% 0% 1% 6% Closely Held Beliefs o We Affirm the Customer as Our Highest Focus o We Accomplish Our Goals o We Understand the Value of Profit o We Value Measurement o We Only Deploy Proven Technology o People First, Location Second Exceptional Service & Sensible Advice o Retention o Cross Sell o Net Growth in Households Exceptional Service & Sensible Advice Percent 2000 2004 Change ---- ---- ------ Total Households 19,617 24,425 24.51% Retention Rates 96.1% 97.2% Products & Services Per House Hold 3.31 3.25 Assets Per Employee [bar graph omitted] 1998 $2,018,639 1999 $2,372,654 2000 $2,734,666 2001 $2,875,566 2002 $3,195,971 2003 $3,283,355 2004 $3,841,279 Growth Plans o Southern Lake Michigan and Highway's 80 & 94 Corridor o Two New Offices Per Year o Breakeven Point Per Office in 12 to 18 months o Lead with People First o Location Second o Focus on Commercial and Mortgage Lending Target Growth Area [map omitted] Organizational Design by Market o Market Presidents - Seasoned Bankers - Live in the Area they Work - Accountability & Responsibility - Voice and Ears of the Community o Presence - To be Visible - To be Active o Recruitment and Retention - 24/7 Recruitment - Incentive Compensation Programs o Centralized Operations, Controls & Staff Functions o Proven Formula Alliance Acquisition Acquisition Metrics Alliance 2004 Acquisition Averages ----------- -------- Price to LTM Earnings 4,250x 23.9x Price to Book 1.68x 2.34x Price to Core Deposit 6.19% 12.9% Price to Assets 9.90% 19.5% Source for Alliance Acquisition: McConnell, Budd & Romano, Inc. Investment Banker & Alliance's Year-end 2004 Audited Financial Statement Source for Averages: SNL Merger & Acquisition Report 12-31-04 Reasons to Acquire o Fills Market Gap o Cost Savings Greater Than 30% - Staffing - Occupancy - Operational o Minimizes Risk of New Entrant into Market o IRR > 15% Locations Post Closing [map omitted] Renegotiated Price o Fiduciary Out/Duty Clause o Chicago Area Bank o Lock-Up Agreement o Increase Break Up Fee o Verizon Vs. Qwest Communications Battle to Acquire MCI Shareholder Value Plan o Started in 2001 o Dividend Policy o DRIP o EPS o ROAE Dividends o 8.33% Increase in 2004 - 52 Cents o 12.49% Increase in 2003 - 48 Cents o 6.67% Increase in 2002 - 42.67 Cents o We Review our Dividend Policy Annually o Dividend Reinvestment Plan Volume o 3:1 Stock Split in 2001 - 661,900 to 1,985,700 o 3:2 Stock Split in 2003 - 1,987,500 to 2,981,164 o Trading Volume - NASDAQ Small Cap December 2001 - 2002 annual volume 716,159 shares - 2003 annual volume 795,824 shares - 2004 annual volume 547,266 shares Why Attractive Investment o Strategic Growth Plans o Organic Growth & Market Share Opportunities o Excellent Asset Quality o Closely Held Beliefs o Management Team has History of Getting Things Done Stock Price History - Five Years [stock chart omitted] Source: NASDAQ Bank: Nasdaq Bank Index Bix: S&P Bank Index COMP: Nasdaq Composite Financial Presentation Thomas H. Edwards, President & Chief Operating Officer Total Loans Year-End [bar graph omitted] Millions -------- 1994 $224 1995 $242 1996 $271 1997 $258 1998 $290 1999 $309 2000 $398 2001 $474 2002 $548 2003 $456 2004 $568 CAGR 6.75% (1994 to 1998) CAGR 11.92% (1997 to 2004) Total Loans [Pie charts omitted] 2002 2004 ---- ---- Mortgage 16% 16% Warehousing 40% 23% Commercial 20% 36% Installment 15% 25% Non-Performing Loans [Bar chart omitted] 2000 2001 2002 2003 2004 ---- ---- ---- ---- ---- Peer 0.58% 0.76% 0.78% 0.85% 0.70% Horizon 0.79% 0.42% 0.27% 0.43% 0.29% Source: Uniform Bank Performance Report prepared by the FDIC Deposits Year-End [Bar chart omitted] 2000 2001 2002 2003 2004 ---- ---- ---- ---- ---- $ Millions Non-Interest Bearing Deposits $30 $43 $51 $72 $58 Interest Bearing Transaction Accounts $128 $183 $208 $221 $272 Time Deposits $229 $194 $231 $254 $282 Other Borrowings $109 $128 $184 $158 $244 CAGR 17.02% 2000-2004 Non-Interest Income [Bar chart omitted] 2000 2001 2002 2003 2004 ---- ---- ---- ---- ---- Actual $6,856,000 $9,521,000 $10,249,000 $11,140,000 $10,689,000 Peer 1.07% 1.06% 1.10% 1.12% 1.00% Horizon 1.37% 1.76% 1.62% 1.55% 1.31% Source: Uniform Bank Performance Report prepared by the FDIC Gain on Sale of Loans [Bar chart omitted] 2000 2001 2002 2003 2004 ------ ------ ------ ------ ------ $ Thousands $ 313 $ 2,366 $ 3,152 $ 3,843 $ 2,126 Non-Interest Expense [Bar chart omitted] 2000 2001 2002 2003 2004 ---- ---- ---- ---- ---- Actual (Millions $) 18 21 23 25 26 Peer 3.06% 3.04% 3.01% 2.94% 2.91% Horizon 3.43% 3.88% 3.63% 3.23% 3.14% Source: Uniform Bank Performance Report prepared by the FDIC Net Income [Bar chart omitted] 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- $ Millions $3.039 $3.824 $1.721 $1.1 -$0.2 $3.8 $4.1 $5.5 $6.5 $6.9 CAGR 16.35% 2000 to 2004 First Quarter Net Income [Bar chart omitted] 2001 2002 2003 2004 2005 ---- ---- ---- ---- ---- $ Thousands 938 1,105 1,724 1,517 1,303