Growth Continues For Horizon Bank
Michigan City-based Horizon Bancorp (Nasdaq: HBNC) has announced the acquisition of the parent of Farmers State Bank. The deal for privately-held Kosciusko Financial Inc. in Mentone is valued at $22.5 million.
The cash and stock merger is set to be complete in the second quarter. Horizon Chief Executive Officer Craig Dwight says "Horizon will add value to Farmers State Bank’s customer base through our customer service guarantees, extensive product menu and on-line banking services. In addition, Farmers State Bank’s agricultural, business banking and mortgage lending services align well with Horizon’s primary revenue streams." He adds "we believe increasing our presence in this region will provide Horizon with substantial growth opportunities and the ability to attract and retain seasoned bankers, which are key components to our future success."
Dwight says a local advisory board will be established for the Kosciusko County community following the merger.
Last year, Horizon announced the $73 million acquisition of Peoples Bancorp in Auburn and in 2014, it added SCB Bancorp Inc. in Michigan and Indianapolis-based 1st Mortgage of Indiana.
Farmers State Bank was established in 1892 and has assets of around $150 million. Horizon Bancorp is coming off a record year. In 2015, the company reported net income of $20.5 million, compared to $18.1 million in 2014. Quarterly numbers were also on the rise, with a profit of $6.2 million, compared to $4.9 million in the fourth quarter the previous year.
The combined operations will be under the Horizon Bank name.