Horizon Bancorp Announces Acquisition
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowMichigan City-based Horizon Bancorp Inc. (Nasdaq: HBNC) has reached an agreement to acquire Peoples Bancorp in Auburn. Horizon says the $73 million deal allows the bank to expand its presence into northeast Indiana.
February 19, 2015
News Release
Michigan City, Ind. & Auburn, Ind.– Horizon Bancorp (NASDAQ: HBNC) (“Horizon”) and Peoples Bancorp (OTCPINK: PBNI) (“Peoples”), today announced they have executed a definitive agreement whereby Horizon will acquire Peoples and its wholly-owned subsidiary, Peoples Federal Savings Bank of DeKalb County (“Peoples Federal Savings Bank”), through a stock and cash merger.
Under the terms of the merger agreement, shareholders of Peoples will receive fixed consideration of 0.95 shares of Horizon common stock and $9.75 in cash for each share of Peoples' common stock. Based upon the February 18, 2015, closing price of $23.02 per share of Horizon common stock, the transaction has an implied valuation of approximately $73.1 million.
Established in 1925 and headquartered in Auburn, Indiana, Peoples, through its wholly-owned subsidiary Peoples Federal Savings Bank, serves northeast Indiana and southwest Michigan with sixteen full-service banking locations. As of December 31, 2014, Peoples had total assets of $486.6 million and total equity of $61.3 million, translating to equity to asset ratio of 12.60%.
Horizon Bancorp is a community bank holding company headquartered in Michigan City, Indiana with total assets of $2.1 billion as of December 31, 2014. Horizon Bancorp's wholly-owned subsidiary, Horizon Bank, NA (“Horizon Bank”), still operates under its original charter, dating back to 1873, with a footprint of thirty-one offices extending throughout northern and central Indiana and southwestern and central Michigan.
“We are enthusiastic about this merger, which is consistent with Horizon's philosophy of partnering with banks that hold core values similar to ours and a commitment to serving their local communities,” said Horizon's Chief Executive Officer, Craig M. Dwight. “Peoples Federal Savings Bank was founded with the goal of helping people purchase the home of their dreams, which compliments Horizon's robust retail mortgage business. Horizon will add value to Peoples' customer base through our customer service guarantees and extensive product menu. In addition, Peoples' agricultural, business banking and wealth management services align well with Horizon's primary revenue streams. Our complimentary product offerings and commitment to engaging the local community is a winning combination for our shareholders, employees, customers and community at large.”
Dwight further explained that the Peoples merger provides an excellent opportunity to expand Horizon's market presence into vibrant northeast Indiana. “We believe establishing a significant presence in northeast Indiana will provide Horizon with substantial growth opportunities, a key component to our future success,” Dwight commented.
“Peoples seasoned team of community bankers, with a shared philosophy of providing exceptional customer service and commitment to the community will enhance Horizon's franchise value,” continued Dwight. Horizon has a track record of establishing local advisory boards to maintain the pulse of the local community. Dwight indicated that such an advisory board will be established following the merger. In addition, following the merger, Mr. Maurice F. Winkler, III, President and Chief Executive Officer of Peoples, will be appointed to serve on the board of directors of Horizon and Horizon Bank.
Winkler stated, “We are excited to become part of the Horizon Bank family and the increased opportunities this provides our customers and community. Horizon's demonstrated commitment to preserve true community banking, which means local decision-making, community involvement, and personal one-on-one service, will be keys to our joint and future success.”
The transaction is expected to be completed in the third quarter of 2015, subject to approval by federal and state regulatory authorities and the shareholders of Peoples and Horizon, as well as the satisfaction of other customary closing conditions provided in the merger agreement. The merger agreement also provides that Peoples Federal Savings Bank will be merged into Horizon Bank.
Horizon Bancorp was advised by Cummings & Company, LLC and the law firm of Barack Ferrazzano Kirschbaum & Nagelberg LLP. Peoples was advised by Keefe, Bruyette & Woods, Inc. a Stifel Company and the law firm of Barnes & Thornburg LLP.
About Horizon Bancorp
Horizon Bancorp is a locally owned, independent, commercial bank holding company serving northern and central Indiana and southwest and central 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.
About Peoples Bancorp
Peoples Bancorp is an Indiana corporation headquartered in Auburn, Indiana with Peoples Federal Savings Bank of Dekalb County as its wholly owned subsidiary. Founded in 1925, Peoples offers a full range of banking and trust services with sixteen branch locations serving northeast Indiana and southwest Michigan. Peoples Federal Savings Bank may be reached online at www.peoplesfed.com.
Sources: Horizon Bancorp, Peoples Bancorp