EX-99.1 2 hb_8k0623ex.htm SLIDE PRESENTATION hb_8k0623ex.htm
Exhibit 99.1
 
 
 
 
 
 
 
 
 
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.
 
 
 
 
 
 
 *Based on price at the close of business on April 30, 2010 at $22.00 per share
**Total assets and deposits as of March 31, 2010
***Horizon closing two branches by September 30, 2010
Horizon’s Corporate Profile
• Shares Outstanding    3.3 Million
• Market Cap*   $72.3 Million
• Total Assets**   $ 1.3 Billion
• Total Deposits**  $ 874 Million
• Branches***    23
• Ownership   
 – Insiders      10%
 – Employee Benefit Plans  15%
 – Institutional & Mutual Funds 22% 
   
 
 
 
 
Horizon’s Locations
 
 
 
 
 
 
American Trust & Savings Acquisition
• Purchase & Assumption
 – Assets ≈ $110 million
 – Deposits ≈ $99 million
• Financial
 – Accretive to earnings
 – Payback is less than three years
 – Low risk - asset quality and core deposits
 
 
 
 
Source: Uniform Bank Performance Reports. Indiana and Michigan are state averages for all insured
commercial banks. National is all insured commercial banks with assets between $1 billion and $3 billion.
2008
2009
Horizon More Profitable Than State & National Peers
As Measured By Return On Average Assets
 
 
 
 
1/2
1/2
1/2
1/2
1/2
1/2
Source of Ratings: www.bauerfinancial.com - Telephone: 800.388.6686
Star Ratings as of December 31, 2009 and through April 16, 2010
Horizon is a Top Rated Bank
• Indiana
 – Horizon
 – Centier
 – 1st Source
 – La Porte Savings
 – First Midwest
 – Peoples Bank
 – Citizens Financial
 – Standard Bank
• Michigan
 – Chemical
 – Flag Star
 – Edgewater
 – New Buffalo Savings
• Big Banks
 – Chase Bank USA
 – Bank of America
 – 5th 3rd
 – PNC
 – Wells Fargo
 
 
 
 
Record Earnings - Ten Consecutive Years
CAGR 10.29%
 
 
 
 
Improving Net Interest Margin
 
 
 
 
Peer Data Source: KBW Report dated March 2010 covering Indiana Publicly Traded Banks; peer data represents
a peer average and is as of December 2009 for all periods reviewed.
Horizon Exceeds Peer Average for Efficiency
 
 
 
 
Steady Asset Growth
CAGR 10.1%
 
 
 
 
CAGR 9.23%
Core Deposit Growth
 
 
 
 
 
 
 
Loan Quality
 
 
 
 
 
 
Sound Credit Culture
• Team of Seasoned Underwriters
 – Average Tenure > 20 years
• Primarily an In-Market and Full Recourse Lender
• Predominately a Secured Lender
• Retail & Small Business Focus
 – Average Commercial Loan Size Approximately $250,000
• We Manage Lending Limits
 – House Limit $10 million
 – Legal Limit > $18 million
 – Five Loan Relationships with Balances > $5 million
 
 
 
 
“Low Percentage” of Development Loans
As a Percent of Total Commercial Loans at December 31, 2009
Dollars in Millions
 
 
 
 
Diversity in Non-Performing & Real Estate Owned
Non Performing and REO By Classification at December 31, 2009
Dollars in Millions
 
 
 
 
Horizon Loan Charge-Offs Comparable to Peer
Source: Custom group of 18 publicly traded banks headquartered in the state of Indiana from FDIC Uniform
Bank Performance Reports.
1st Qtr
 
 
 
 
Horizon Builds Loan Loss Reserve
 
 
 
 
Horizon Outperforms Peer Group
Non-Performing Loans Plus OREO to Gross Loans Plus OREO
Source: Custom group of 18 publicly traded banks headquartered in the state of Indiana from FDIC Uniform
Bank Performance Reports
1st Qtr
 
 
 
 
 
 
 
Invest in Horizon
 
 
 
 
 
 
Horizon is Highly Regarded
In Our Communities
• Nine out of Ten Customers - Would Refer a Friend
• Best Bank - The News Dispatch Readers Poll - Nine out
 of Last Ten Years
• Best Trust Company - NW Indiana Business Quarterly
• Best Place to Work - NW Indiana Business Quarterly
• Family Friendly Work Policies - Clarian Award
• Ranked in the Top 200 Community Banks for
 Financial Performance - US Banker Magazine - June
 2009
 
 
 
 
 
 
Horizon’s Compensation Is Fair
To All Stakeholders
• Say on Pay
• Bonus Plans Directionally Aligned with
 Shareholder’s Interests
• Horizon Pays Shareholders First
 – No bonuses if earnings fall below a multiple of
 approximately 1.5x dividends plus holding company
 fixed costs
• Independent Director Compensation Committee
• Third Party Consultant and Engaged Directly by
 Director’s Compensation Committee
 
 
 
 
 
 
Horizon has Stable Performance & Growth
• Earnings Growth for Ten Consecutive Years
• Diversified Revenue Streams
• Efficient Operations
• Lake Michigan Corridor Primed for Growth
• Super Regional Banks Cutting Back - Market Share
 Opportunities
• Opportunities Increasing for Healthy Banks
 
 
 
 
 
 
 
Horizon
Bancorp*
Avg. - Indiana
Banks**
Dividend Yield
3.5%
2.3%
Price to Book
69.2%
79.2%
Price to Tangible Book
75.1%
 
87.5%
Price to Earnings (LTM)
9.2x
16.1x
*Horizon Bancorp data as of March 31, 2010
**Peer Data Source: KBW Report as of March 2010 Covering Indiana Publicly Traded
Horizon is an Attractive Value
 
 
 
 
 
 
Horizon Outperforms Bank Index - One Year
 
 
 
 
 
 
Horizon Outperforms Bank Index - Ten Years
 
 
 
 
 
A NASDAQ Traded Company - Symbol HBNC