Horizon Bancorp (NASDAQ GM: HBNC, “Horizon”) and SCB Bancorp, Inc. (“SCB”), today announced they have executed a definitive agreement whereby Horizon will acquire SCB and its wholly-owned subsidiary, Summit Community Bank, through a stock and cash merger.
Under the terms of the merger agreement, shareholders of SCB will receive fixed consideration of 0.4904 shares of Horizon common stock and $5.15 in cash for each share of SCB common stock. Based upon the November 12, 2013, closing price of $21.43 per share of Horizon common stock, the transaction is valued at approximately $18.4 million.
Headquartered in East Lansing, Michigan, SCB, through its wholly-owned subsidiary Summit Community Bank, serves the greater Lansing area through two full-service banking locations. As of September 30, 2013, Summit Community Bank had total assets of $161.0 million.
Horizon Bancorp is a community bank holding company headquartered in Michigan City, Indiana with total assets of $1.8 billion as of September 30, 2013. Horizon Bancorp’s wholly-owned subsidiary, Horizon Bank, still operates under its original charter, dating back to 1873, with a footprint of twenty-nine offices extending throughout northern and central Indiana as well as southwestern Michigan.
“We are enthusiastic about this merger which is consistent with Horizon’s philosophy of partnering with banks that hold core values similar to ours and a commitment to serving their local communities,” said Horizon’s Chief Executive Officer, Craig M. Dwight. “Summit Community Bank was founded with the goal of contributing to the success of their customers by offering creative financial solutions based upon sound financial advice, being ever mindful of the communities they serve. This stems from their most basic goal to preserve the values of community banking.”
Dwight explained that the Summit merger provides an excellent opportunity to expand Horizon’s current market presence in southwestern Michigan into the state’s vibrant capital region. This expansion will also complement Horizon’s entry into Grand Rapids, Michigan, where Horizon recently announced the hiring of a senior lender in charge of building a loan production team. Grand Rapids and Lansing represent Michigan’s second and third largest metropolitan areas, respectively. “We believe establishing a significant presence in these larger markets will provide Horizon with substantial growth opportunities, a key component to our future success,” Dwight commented.
“The team of experienced bankers at Summit Community Bank will continue to be led by John W. Abbott, Summit’s President and Chief Executive Officer, to solidify our shared philosophies of exceptional customer service and commitment to community banking,” continued Dwight. Horizon has a track record of establishing local advisory boards to maintain the pulse of the local community. Dwight indicated that such an advisory board will be established and appointed by Mr. Abbott for the greater Lansing area.
Mr. Abbott stated, “We are excited to become part of the Horizon Bank family and the increased opportunities this provides our customers and community. Horizon’s demonstrated commitment to preserve true community banking, which means local decision-making, community involvement, and personal one-on-one service, will be keys to our joint success.”
The transaction is expected to be completed in the second quarter of 2014, subject to approval by federal and state regulatory authorities and SCB shareholders as well as the satisfaction of other closing conditions provided in the merger agreement. The merger agreement also provides that Summit Community Bank will be merged into Horizon Bank, the wholly-owned subsidiary of Horizon Bancorp.
Horizon Bancorp was advised by Cummings & Company, LLC and the law firm of Barnes & Thornburg LLP. SCB Bancorp was advised by Donnelly Penman & Partners and the law firm of Foster Swift Collins & Smith PC.