MICHIGAN CITY | Horizon Bancorp, the parent company of Michigan City-based Horizon Bank, will grow its footprint in Michigan after buying the smaller Summit Community Bank through a stock and cash merger.
The East Lansing, Mich.-based bank has has three locations in the greater Lansing area and total assets of $161 million.
Horizon will pay Summit's shareholders $5.15 in cash for every share of common stock and fixed consideration of about 0.49 shares of Horizon Common stock, according to a news release. The deal is valued at $18.4 million, based on $21.43 price that Horizon stock closed at Tuesday.
The Michigan City-based community bank, which was founded in 1873, wanted to expand its market presence in Michigan beyond the southwestern corner of the state where it is already established. Horizon, which has total assets of $1.8 billion, currently has 29 branches in northern and central Indiana, and 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 CEO Craig 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 value of community banking."
Horizon wanted to grow into Michigan's capital region, which Dwight said was vibrant. The financial institution will have a foothold in Michigan's second- and third-largest metropolitan areas, since it also recently hired a senior lender to build a loan production team in Grand Rapids.
"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 said.
The deal is expected to be finalized in the second quarter of next year. Summit Community Bank president and CEO John Abbott will continue to lead the Lansing area banks after the merger is completed, and Horizon plans to establish a local advisory board to help maintain a connection with the local community.
"We are excited to become part of the Horizon Bank family and the increased opportunities this provides our customers and community," Abbott said. "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."