Horizon Bancorp (NASDAQ GS: 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.