American bank holding company Horizon Bancorp and Salin Bancshares have signed an agreement under which Horizon will merge with Salin, and Horizon’s wholly-owned subsidiary, Horizon Bank, will merge with Salin’s wholly-owned subsidiary, Salin Bank.
The merger is expected to increase core deposit base of Horizon Bancorp, expand the company’s presence in central and northeast Indiana, add new offices in Fort Wayne and Columbus, Indiana, and expand its presence in Indianapolis and Lafayette, Indiana.
Under the terms of the merger, Salin shareholders will receive $87,417.17 in cash and 23,907.5 shares of Horizon common stock for each share of Salin common stock.
The transaction is valued at approximately $135.3m based upon Horizon’s closing price of $16.95 per share on October 26, 2018.
Salin, a community bank holding company with headquarters in Indianapolis, has total assets worth approximately $918.4m as of September 30, 2018.
Founded in 1902, Salin Bank is the third largest privately held bank in Indiana, and has 20 centers in 10 Indiana counties, serving Columbus, Delphi, Edinburgh, Fishers, Flora, Fort Wayne, Galveston, Gas City, Kokomo, Lafayette, Logansport, Marion, West Lafayette, and Indianapolis.
Michigan City-based Horizon is a community bank holding company with total assets of $4.2bn as of September 30, 2018.
Horizon Bank has been operating since 1873, with 66 offices in northern and central Indiana and southern, central, and the Great Lakes Bay regions of Michigan.
The transaction is expected to be completed in the first quarter of 2019, subject to approval by regulatory authorities and the shareholders of Salin.
The combined operations will continue to operate under the Horizon Bank name.
Horizon has been advised by Stephens, Renninger & Associates, and law firm Barnes & Thornburg. Salin has been advised by Hovde Group, and law firm SmithAmundsen.
Horizon CEO Craig Dwight said: “Horizon is enthusiastic about this merger, as it complements our current Indiana locations and provides entry into the attractive growth markets of Fort Wayne and Columbus, Indiana.
“In addition, Salin Bank’s presence in Indianapolis and Lafayette, Indiana will add to Horizon’s current footprint in these dynamic markets.”
Salin Bank president and CEO James Alender said: “This merger will provide Salin new opportunities to increase the depth of products and services we can offer to our customers, including higher lending limits, robust residential mortgage products, and enhanced mobile and internet banking.”