Horizon Bank is growing again, this time adding a new presence in the growth markets of Fort Wayne and Columbus, Indiana through the acquisition of Salin Bancshares, a privately held company in a deal valued at north of $135-million.
Horizon Bancorp, Inc. and Salin Bancshares, Inc. have announced that they have executed a definitive agreement whereby Horizon will combine with Salin, and Horizon’s wholly-owned subsidiary, Horizon Bank, will combine with Salin’s wholly-owned subsidiary, Salin Bank and Trust Company in a merger that will enhance Horizon’s core deposit base, expand Horizon’s presence throughout Central and Northeast Indiana, add new offices in the growth markets of Fort Wayne and Columbus, and expand its existing presence in the vibrant markets of Indianapolis and Lafayette, Indiana.
In the merger, shareholders of Salin will receive $87,417.17 in cash and 23,907.5 shares of Horizon common stock for each share of Salin common stock, which, based upon the October 26, 2018 Horizon closing price of $16.95 per share, the transaction has an implied valuation of approximately $135.3 million.
Salin is a community bank holding company headquartered in Indianapolis, with approximately $918.4 million in total assets as of September 30, 2018. Salin Bank, which can trace its origins to the Farmers & Merchants State Bank of Logansport, Indiana, founded in 1902, is the third largest privately held bank in Indiana, with 20 banking centers in 10 Indiana counties, serving Columbus, Delphi, Edinburgh, Fishers, Flora, Fort Wayne, Galveston, Gas City, Kokomo, Lafayette, Logansport, Marion, West Lafayette, and Indianapolis.
Horizon is a community bank holding company headquartered in Michigan City, Indiana with total assets of $4.2 billion as of September 30, 2018. Horizon Bank has continually operated since 1873, with 66 offices extending throughout northern and central Indiana and southern, central, and the Great Lakes Bay regions of Michigan, including multiple branches in Michigan’s Great Southwest.
Craig Dwight, CEO at Horizon says, “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.” Dwight adds, “We fully expect that our complementary product offerings and commitment to the local communities and employees will result in success for the shareholders of the combined company.”
Regarding the future, Dwight says, “Horizon’s focus is to continue to expand in the States of Indiana and Michigan with an emphasis on good core deposit growth, enhanced operational leverage through mass and scale, and investment in growth markets. Indiana and Michigan are well run states, with the leadership in each state focused on the future and building better quality of life for their citizens. The Salin franchise fits well into Horizon’s strategic plan and bodes well for capturing market share.”
James Alender, President and Chief Executive Officer of Salin Bank, says, “Horizon is a natural fit for Salin due to our complementary markets, common values, and support for the local communities we serve. 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. Salin has a wonderful history and commitment to excellence, which is our strength and the foundation under everything we do. This will be key in supporting the merger with Horizon.”
On behalf of the Salin family, Mr. William N. Salin says, “I have taken tremendous pride in serving Hoosiers throughout my lifetime, and, specifically, their banking needs throughout our family’s ownership in Salin Bank. We are pleased that our staff will flourish and our customers will be well served in joining Horizon, and that the Salin family will continue to be heavily invested in such a fine Indiana community bank.”
The transaction is expected to be completed in the first quarter of 2019, subject to approval by bank regulatory authorities and the shareholders of Salin, as well as the satisfaction of other customary closing conditions. The banks’ combined operations will continue to operate under the Horizon Bank name.
Horizon was advised by Stephens, Inc., Renninger & Associates, LLC and the law firm of Barnes & Thornburg LLP, while Salin was advised by Hovde Group, LLC and the law firm of SmithAmundsen LLC.
