Indianapolis-based Salin Bancshares Inc.—the third-largest privately held bank in Indiana—has agreed to be acquired by Michigan City, Indiana-based Horizon Bancorp Inc. in a deal worth about $135.3 million.
The combined operations will take on the Horizon name after the acquisition is finalized. Officials expect the deal to close in the first quarter of 2019 after approvals from regulators and Salin shareholders.
Horizon said the acquisition will help it increase its footprint in central and northeast Indiana, add new offices in Fort Wayne and Columbus, and expand its existing presence in Indianapolis and Lafayette.
Under the deal, shareholders of Salin will receive $87,417.17 in cash and 23,907.5 shares of Horizon common stock for each share of Salin common stock. The valuation was based on Horizon’s closing price of $16.95 per share on Oct. 26.
Salin, the parent of Salin Bank and Trust Co., has operations in 10 Indiana counties, with 20 bank offices in Columbus, Delphi, Edinburgh, Fishers, Flora, Fort Wayne, Galveston, Gas City, Kokomo, Lafayette, Logansport, Marion, West Lafayette and Indianapolis.
The family-owned Salin, which traces its 116-year-old roots to the Farmers & Merchants State Bank of Logansport, had $918.4 million in total assets as of Sept. 30.
“Horizon is a natural fit for Salin due to our complementary markets, common values, and support for the local communities we serve,” Salin CEO James Alender said. “This merger will provide Salin new opportunities to increase the depth of products and services we can offer to our customers, including higher lending limits, robust residential mortgage products, and enhanced mobile and internet banking.”
Horizon, founded in 1873, has 66 bank offices in northern and central Indiana and southern, central, and the Great Lakes Bay regions of Michigan. It had total assets of $4.2 billion as of Sept. 30.
“Horizon’s focus is to continue to expand in the states of Indiana and Michigan with an emphasis on good core deposit growth, enhanced operational leverage through mass and scale, and investment in growth markets,” Horizon CEO Craig Dwight said in written comments. “The Salin franchise fits well into Horizon’s strategic plan and bodes well for capturing market share.”
Horizon was advised by Stephens Inc., Renninger & Associates LLC and the law firm of Barnes & Thornburg LLP.
Salin was advised by Hovde Group LLC and the law firm of SmithAmundsen LLC.