Horizon Wraps up MergerPosted: Updated:
Michigan City-based Horizon Bancorp (Nasdaq: HBNC) has completed its acquisition of SCB Bancorp Inc. in Michigan. Last month, Horizon announced the closing of a deal for Indianapolis-based 1st Mortgage of Indiana. April 03, 2014
MICHIGAN CITY, Ind. - Horizon Bancorp (NASDAQ: HBNC) ("Horizon"), the parent of Horizon Bank, N.A., announces the completion of the acquisition of SCB Bancorp Inc. ("SCB") and its wholly-owned subsidiary, Summit Community Bank, effective April 3, 2014 through the merger that was initially announced in November of 2013. Pursuant to the merger, SCB was merged into Horizon and simultaneously Summit Community Bank was merged into Horizon Bank, N.A. As previously announced, the banks will operate under the name Horizon Bank.
As part of this transaction, Horizon Bank will be adding two new branches thereby expanding its branch network to thirty-one offices throughout Southern Michigan and Indiana. "We are pleased that many of the familiar faces Summit customers have come to know will remain with Horizon at their neighborhood branches in East Lansing and Okemos, Michigan," said Craig M. Dwight, Horizon Bank's Chairman and Chief Executive Officer. "Horizon has a closely held belief to hire and retain local talent with similar community banking values. In that, we are excited to partner with this team of banking professionals who share our dedication to community banking and service."
Mr. Dwight further commented that Horizon determined from its original due diligence not to retain Summit's residential mortgage lending team known as the Home Loan Center. As a result, that business unit is being discontinued. This decision was based on the cost structure and fixed overhead of the business unit. Horizon did not include Summit's residential mortgage operation in its original financial analysis or internal rate of return calculations. Dwight stated, "Horizon is committed to residential mortgage lending and we will continue to serve Summit's residential mortgage customers through Horizon's proven mortgage delivery channels."
John Abbott, former President and Chief Executive Officer of Summit Community Bank stated, "We look forward to working with Horizon - a company both financially solid and totally committed to its customers and the communities it serves. Our branch staff and business lenders are pleased to continue working for Horizon in order to provide our customers with the personal service they are accustomed to receiving."
The two companies are working on integration plans including a systems integration which is expected to take place the weekend of April 26, 2014. As a result, customer accounts will automatically change to Horizon accounts with no action required on the part of the customer. Customer checks, debit cards, direct deposits, payments, and account numbers will remain unchanged in order to make this transition as smooth as possible for the customers.
Dwight further explained this merger gives Horizon Bank a growing footprint in the southern Michigan market area, complementing its current branches primarily located in southwestern Michigan. As evidenced by this expansion into East Lansing, Michigan and the recent opening of a loan production office in Grand Rapids, Michigan, Horizon is poised to continue expanding throughout southern Michigan.
About Horizon Bancorp
Horizon Bancorp is a locally owned, independent, commercial bank holding company serving Northern and Central Indiana and Southwest Michigan through its commercial banking subsidiary Horizon Bank, NA. Horizon also offers mortgage-banking services throughout the Midwest. Horizon Bancorp may be reached online at www.horizonbank.com. Its common stock is traded on the NASDAQ Global Market under the symbol HBNC.