IBJNews

Merger to give northwest Indiana bank local foothold

Back to TopCommentsE-mailPrintBookmark and Share

Horizon Bancorp of Michigan City announced Friday that it has agreed to acquire Heartland Community Bank of Franklin for about $14 million, or $9.72 per share.

That’s a 170-percent premium over Heartland’s Thursday closing price of $3.60 per share. Heartland shares trade over-the-counter. Volume spiked Friday morning, and the shares opened at $8.25 each.

Horizon has 10 branches in northwest Indiana and five in Michigan. It’s the No. 1 bank in LaPorte County by deposit share. The bank reported $1.5 billion in assets, $1 billion in deposits and $978 million in outstanding loans at the end of 2011.

The deal gives Horizon its first presence in central Indiana, where it will continue to operate under the Heartland name.

“Heartland, which has the No. 1 deposit share in Johnson County, will provide a strong foothold in central Indiana and further establish Horizon’s position as an Indiana-focused financial institution,” said Craig Dwight, Horizon president and CEO.

Heartland, which opened in 1997, employs 98 people and has six branches in Franklin, Greenwood, Bargersville and New Whiteland. The bank has $246 million in assets, $217.9 million in deposits and $137.7 million in outstanding loans.

Co-founders Steve Bechman and Jeffrey Goben will continue to manage the local operations. One member of Heartland’s board of directors will be added to Horizon’s board.

The stock-for-stock transaction is expected to close in the second quarter.

Horizon agreed to issue 0.54 shares of its stock for each of Heartland’s stock outstanding at the merger’s effective date.

Heartland had about 1.44 million shares outstanding. Based on Horizon’s Feb. 8 closing price of $18 per share, the transaction was valued at about $9.72 per share of Heartland’s stock, or about $14 million.

Dwight said he expects to save 25 percent on operating costs by consolidating back-office functions.

Horizon acquired American Trust & Savings Bank of Whiting in 2010 and Alliance Banking Co. in southwest Michigan in 2005.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Really, taking someone managing the regulation of Alcohol and making himthe President of an IVY Tech regional campus. Does he have an education background?

  2. Jan, great rant. Now how about you review the report and offer rebuttal of the memo. This might be more conducive to civil discourse than a wild rant with no supporting facts. Perhaps some links to support your assertions would be helpful

  3. I've lived in Indianapolis my whole and been to the track 3 times. Once for a Brickyard, once last year on a practice day for Indy 500, and once when I was a high school student to pick up trash for community service. In the past 11 years, I would say while the IMS is a great venue, there are some upgrades that would show that it's changing with the times, just like the city is. First, take out the bleachers and put in individual seats. Kentucky Motor Speedway has individual seats and they look cool. Fix up the restrooms. Add wi-fi. Like others have suggested, look at bringing in concerts leading up to events. Don't just stick with the country music genre. Pop music would work well too I believe. This will attract more young celebrities to the Indy 500 like the kind that go to the Kentucky Derby. Work with Indy Go to increase the frequency of the bus route to the track during high end events. That way people have other options than worrying about where to park and paying for parking. Then after all of this, look at getting night lights. I think the aforementioned strategies are more necessary than night racing at this point in time.

  4. Talking about congestion ANYWHERE in Indianapolis is absolutely laughable. Sure you may have to wait in 5 minutes of traffic to travel down BR avenue during *peak* times. But that is absolutely nothing compared to actual big cities. Indy is way too suburban to have actual congestion problems. So please, never bring up "congestion" as an excuse to avoid development in Indianapolis. If anything, we could use a little more.

  5. Oh wait. Never mind.

ADVERTISEMENT