Horizon to grow in merger with Salin Bank

November 9, 2018

MICHIGAN CITY — Horizon Bank will soon be getting a lot bigger. It was recently announced that the Michigan City-based bank will merge with Salin Bank and Trust Company, a move aimed at enhancing its deposit base and expanding its presence in central and northeast Indiana.

The two banks will operate under the Horizon Bank name.

In the merger, 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, according to a statement from Horizon Bancorp. Based upon the Oct. 26 Horizon closing price of $16.95 per share, the transaction has an implied value of about $135.3 million.

With total assets of $4.2 billion as of Sept. 30, Horizon Bank has operated since 1873, with 66 offices in northern and central Indiana; and south, central and the Great Lakes Bay regions of Michigan.

“Horizon is enthusiastic about this merger, as it complements our current Indiana locations and provides entry into the attractive growth markets of Fort Wayne and Columbus,” CEO Craig Dwight said. “In addition, Salin Bank’s presence in Indianapolis and Lafayette will add to Horizon’s current footprint in these dynamic markets.

“We fully expect that our complementary product offerings and commitment to the local communities and employees will result in success for the shareholders of the combined company.”

Salin is a community bank holding company headquartered in Indianapolis, with about $918.4 million in total assets as of Sept. 30. Salin Bank traces its origins to Farmers & Merchants State Bank of Logansport, founded in 1902, and is the third largest privately held bank in Indiana, with 20 banking centers in 10 counties.

Dwight said Horizon’s focus is to “continue to expand in Indiana and Michigan with an emphasis on good core deposit growth, enhanced operational leverage through mass and scale, and investment in growth markets.

“Indiana and Michigan are well-run states, with the leadership in each state focused on the future and building better quality of life for their citizens. The Salin franchise fits well into Horizon’s strategic plan and bodes well for capturing market share.”

James Alender, president and CEO of Salin Bank, said Horizon is “a natural fit for Salin due to our complementary markets, common values, and support for the local communities we serve.

“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. Salin has a wonderful history and commitment to excellence, which is our strength and the foundation under everything we do. This will be key in supporting the merger with Horizon.”

On behalf of the Salin family, William N. Salin stated, “I have taken tremendous pride in serving Hoosiers throughout my lifetime, and, specifically, their banking needs throughout our family’s ownership in Salin Bank. We are pleased that our staff will flourish and our customers will be well served in joining Horizon, and that the Salin family will continue to be heavily invested in such a fine Indiana community bank.”

The transaction is expected to be completed in the first quarter of 2019, subject to approval by regulatory authorities and Salin shareholders.

In connection with the proposed merger, Horizon will file with the SEC a Registration Statement that will include a proxy or information statement, as well as other relevant documents.

Shareholders and investors are urged to read the statements and other relevant documents filed with the SEC. Those documents, when filed, can be obtained free at sec.gov or horizonbank.com.

— From staff reports

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