A small Franklin-based bank will be acquired by Horizon Bancorp of Michigan City, effective July 17.
Shareholders of Heartland Bancshares Inc. approved the merger during a meeting June 27 in Franklin, the banks announced. Heartland’s six branches in Franklin, Greenwood, Bargersville and New Whiteland will give Horizon its first presence in central Indiana. The branches it is buying here will continue to operate under the Heartland name.
Heartland shareholders will receive 0.54 Horizon share for each of their shares. The deal could represent a big premium, in terms of earnings and dividends, for Heartland shareholders. Heartland paid zero dividends in the year ended Dec. 31 and the quarter ended March 31, according to a May prospectus.
Horizon, which trades on NASDAQ under HBNC, paid a 13-cent dividend in the first quarter and 47 cents for the full year ended Dec. 31. That would have netted Heartland shareholders 7 cents per share and 25 cents per share, in the respective earnings periods.
Horizon operates 23 full-service offices, and maintains a trust office in Indianapolis. The bank reported $1.5 billion in assets, $1 billion in deposits, and $978 million in outstanding loans at the end of 2011.
Heartland opened in 1997.