Horizon Bancorp Announces Closing of LaPorte Bancorp, Inc. Merger
July 18 2016 - 9:00AM
Business Wire
Horizon Bancorp (NASDAQ: HBNC) (“Horizon”), the parent of
Horizon Bank, N.A., (“Horizon Bank”) today announced the completion
of the acquisition of LaPorte Bancorp, Inc. (“LaPorte Bancorp”) and
its wholly-owned subsidiary, The LaPorte Savings Bank, of LaPorte,
Indiana, effective July 18, 2016. LaPorte Bancorp was merged into
Horizon immediately followed by the merger of The LaPorte Savings
Bank into Horizon Bank.
Under the terms of the Merger Agreement, shareholders of LaPorte
Bancorp had the option to receive $17.50 per share in cash or 0.629
shares of Horizon common stock, or a combination of both, for each
share of LaPorte Bancorp’s common stock, subject to allocation
provisions to assure that in aggregate, LaPorte Bancorp
shareholders received total consideration that consists of 65%
stock and 35% cash. As a result of LaPorte stockholder stock and
cash elections and the related proration provisions of the Merger
Agreement, Horizon issued 2,280,992 shares of its common stock in
the merger. Based upon the July 15, 2016 closing price of $26.31
per share of Horizon common stock, the transaction has an implied
valuation of approximately $98.9 million.
Bringing together two of the largest community banks in LaPorte
County, this merger further expands Horizon Bank’s branch network
to fifty-four offices throughout northern and central Indiana and
southern Michigan. “As two long standing community banks within
LaPorte County holding similar core values, we are confident that
this merger will prove beneficial to our customers and the
community,” said Craig M. Dwight, Horizon Bank’s Chairman and Chief
Executive Officer.
Michele Thompson, President & Chief Financial Officer of
LaPorte Bancorp stated, “We are excited about joining the Horizon
Bank family and look forward to the increased opportunities this
union will provide our existing customers, employees and the
communities we have served over the years. I believe that our
shared philosophy will help to ensure that a major and growing
community bank remains in the LaPorte area.”
As previously announced, the banks will ultimately operate under
the name Horizon Bank, although the current offices of The LaPorte
Savings Bank will continue to operate under that name until the
systems integration process is completed in October of 2016. The
companies are finalizing integration plans that include a systems
integration and sign change expected to take place the weekend of
October 22, 2016. As a result, customer accounts will automatically
change to Horizon accounts with no action required on the part of
the customer. Customer checks, direct deposits, payments, and
account numbers will remain unchanged in order to make this
transition as smooth as possible.
Due to the shared markets served by both banks, three
full-service offices and one loan production office will be
consolidated upon the completion of the systems integration
scheduled for October, 2016. The offices to be consolidated are The
LaPorte Savings Bank’s Indiana branches in Michigan City,
Chesterton, and The LaPorte Savings Bank’s West side location and
its St. Joseph, Michigan loan production office. Each office to be
closed is within 1.5 miles of an office that will remain open. As
part of this office consolidation, Horizon has retained the retail
branch personnel. This will help to ensure proper support to assist
with customer retention and integration. By 2017, Horizon expects
office staffing to be right-sized through normal branch attrition
and retirements.
As part of the merger, Horizon and Horizon Bank have added
Michele Thompson to their respective boards of directors and will
add two representatives to Horizon’s existing LaPorte County
community advisory board.
Horizon was advised by Stephens, Inc. and the law firm of Barnes
& Thornburg LLP. LaPorte Bancorp was advised by Raymond James
& Associates, Inc. and the law firm of Luse Gorman, PC.
About Horizon Bancorp
Horizon Bancorp is a locally owned, independent, commercial bank
holding company serving northern and central Indiana and southwest
and central Michigan through its commercial banking subsidiary
Horizon Bank, N.A. Horizon also offers mortgage-banking services
throughout the Midwest. Horizon may be reached online at
www.horizonbank.com. Its common stock is traded on the NASDAQ
Global Select Market under the symbol HBNC.
About LaPorte Bancorp, Inc.
LaPorte Bancorp, Inc. is an Indiana corporation headquartered in
LaPorte, Indiana with The LaPorte Savings Bank as its wholly owned
subsidiary. The LaPorte Savings Bank was founded in 1871 and offers
a full range of banking services with seven branch locations
serving northeast Indiana and a loan production office in Saint
Joseph, Michigan. LaPorte Bancorp may be reached online at
www.laportesavingsbank.com. Its common stock is traded on the
NASDAQ Capital Market under the symbol LPSB.
Forward Looking Statements
This press release may contain forward-looking statements
regarding the financial performance, business prospects, growth and
operating strategies of Horizon and LaPorte Bancorp. For these
statements, Horizon and LaPorte Bancorp claim the protections of
the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995. Statements in
this press release should be considered in conjunction with the
other information available about Horizon and LaPorte Bancorp,
including the information in the filings each makes with the
Securities and Exchange Commission. Forward-looking statements
provide current expectations or forecasts of future events and are
not guarantees of future performance. The forward-looking
statements are based on management’s expectations and are subject
to a number of risks and uncertainties. Horizon and LaPorte Bancorp
have tried, wherever possible, to identify such statements by using
words such as “anticipate,” “estimate,” “project,” “intend,”
“plan,” “believe,” “will” and similar expressions in connection
with any discussion of future operating or financial
performance.
Although Horizon’s and LaPorte Bancorp’s management believe that
the expectations reflected in such forward-looking statements are
reasonable, actual results may differ materially from those
expressed or implied in such statements. Risks and uncertainties
that could cause actual results to differ materially include risk
factors relating to the banking industry and the other factors
detailed from time to time in Horizon’s and LaPorte Bancorp’s
respective Annual Reports on Form 10-K and other periodic filings
with the Securities and Exchange Commission. Undue reliance should
not be placed on the forward-looking statements, which speak only
as of the date hereof. Horizon and LaPorte Bancorp do not
undertake, and specifically disclaim any obligation, to publicly
release the result of any revisions that may be made to update any
forward-looking statement to reflect the events or circumstances
after the date on which the forward-looking statement is made, or
reflect the occurrence of unanticipated events, except to the
extent required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20160718005206/en/
Horizon Contact Information:Craig M. DwightChairman and
Chief Executive OfficerPhone: (219) 873-2725orMark E. SecorChief
Financial OfficerPhone: (219) 873-2611Fax: (219)
874-9280orLaPorte Bancorp Contact Information:Michele M.
ThompsonPresident and Chief Financial OfficerPhone: (219)
362-7511
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