Michigan City-based Horizon Bancorp Inc., operator of Horizon Bank, has signed a definitive agreement to combine operations with Salin Bankshares Inc. of Indianapolis.
Salin Bancshares operates Salin Bank and Trust Co., which had $918.4 million in assets as of Sept. 30 and 20 banking locations in 10 Indiana counties serving Columbus, Delphi, Edinburgh, Fishers, Flora, Fort Wayne, Galveston, Gas City, Kokomo, Lafayette, Logansport, Marion, West Lafayette and Indianapolis.
Horizon Bank in a statement said the merger will enhance its core deposit base and expand its presence in central and northeast Indiana. The deal is expected to close early next year.
“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, Ind.,” said Craig Dwight, CEO of Horizon Bancorp. “In addition, Salin Bank’s presence in Indianapolis and Lafayette, will add to Horizon’s current footprint in these dynamic markets. 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.”
Dwight said Horizon’s focus is to continue to expand in 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,” he said. “The Salin franchise fits well into Horizon’s strategic plan and bodes well for capturing market share.”
James Alender, president and CEO of Salin Bank, said his company’s merger with Horizon is a natural fit because of their complementary markets, common values, and support for the communities served by both lenders.
“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,” Alender said. “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.”
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, based on the Oct. 26 Horizon closing price of $16.95 per share, the transaction has an estimated value of $135.3 million.
Salin can trace its origins to the Farmers & Merchants State Bank of Logansport, which was founded in 1902.
Horizon is a community bank holding company with total assets of $4.2 billion as of Sept. 30. Horizon Bank has continually operated since 1873 and has 66 offices across Indiana and parts of Michigan.
