Indiana Business Bancorp, a community bank with a single branch on the north side of Indianapolis, has agreed to a merger with Lizton Financial Corp., a Hendricks County-based bank with 11 branches in central Indiana.
Lizton announced this week that it plans to acquire IBB for nearly $12.5 million. IBB shareholders will receive $7.25 per share in the deal, which is expected to close in the third quarter.
The merged bank will operate as State Bank of Lizton.
With roots dating to 1910, Lizton Financial operates State Bank of Lizton branches in Avon, Brownsburg, Dover, Jamestown, Lebanon, Lizton, Pittsboro, Plainfield and Zionsville.
Lizton reported total assets of $363 million and outstanding loans of $248 million on Jan. 29.
“The team at IBB is well known to us; their expertise and abilities will be a perfect complement to our existing staff,” Lizton CEO Michael Baker said in written comments. “We share a common commitment to community banking, built around local decision-making and strong relationship banking. The combination will provide additional products and services for IBB customers, and significantly impact our potential for additional commercial banking growth.”
IBB was founded in 2004 by a group of 16 local investors with the goal of filling an under-served niche in the local commercial loan market. The company has operated from an office at 250 E. 96th St. since its founding.
IBB had total assets of about $66.5 million and outstanding loans of $52 million as of June 30, 2015.
James Young, a former lending executive for Huntington Bank, has been the only CEO in IBB’s history.
“We are very excited to continue serving our clients as part of the Lizton family,” Young said. “The larger lending capacity and broader product offering will only improve the positive experience our clients have come to expect from Indiana Business bankers.”
Lizton was advised by Renninger & Associates LLC of Carmel and received legal counsel from the Indianapolis office of SmithAmundsen. IBB was advised by New York-based Sandler O'Neill + Partners and received legal advice from the Indianapolis law office of Faegre Baker Daniels LLP.
IBB shares rose 40 percent, from $5 to $7 each, Wednesday after the merger announcement. They traded at $7.03 Thursday morning.