Horizon Bancorp, the parent of Horizon Bank, has agreed to acquire LaPorte Bancorp, parent of The LaPorte Savings Bank, in a stock-cash deal worth about $94.1m.
LaPorte, Indiana-based LaPorte Bancorp is a savings and loan holding company, managing total assets of $543.2m and tangible common equity of $77.0m as of 31 December 2015. The LaPorte Savings Bank caters to northern Indiana with seven full-service banking locations as well as one loan production office in southwest Michigan.
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As per the agreed terms of the deal, The LaPorte Savings Bank will be merged with and into Horizon Bank, with the combined entity to operate under the Horizon Bank name.
Other subsidiaries of LaPorte Bancorp and The LaPorte Savings Bank will be merged with similar Horizon subsidiaries or consolidated with them.
LaPorte Bancorp shareholders can opt 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.
Owing to the two banks’ shared markets, three full service offices and one loan production office will be consolidated.
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By GlobalDataThe offices to be consolidated include 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.
As part of the deal, The LaPorte Savings Bank president and CFO Michele Thompson will join Horizon’s board of directors.
The transaction is expected to close in the third quarter of 2016, subject to regulatory and shareholder approvals.
Horizon chairman and CEO Craig Dwight said: "Combined, we will serve our customers through an extensive branch network, robust online and mobile banking platforms, extensive loan options and a dedication to community involvement and support. We look forward to welcoming The LaPorte Savings Bank’s customers and employees and to the bright future this partnership provides our stakeholders."
