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Horizon Bancorp and Peoples Bancorp to merge

Staff writer |
Horizon Bancorp and Peoples Bancorp have executed a definitive agreement whereby Horizon will acquire Peoples and its wholly-owned subsidiary, Peoples Federal Savings Bank of DeKalb County through a stock and cash merger.

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Under the terms of the merger agreement, shareholders of Peoples will receive fixed consideration of 0.95 shares of Horizon common stock and $9.75 in cash for each share of Peoples' common stock.

Based upon the February 18, 2015, closing price of $23.02 per share of Horizon common stock, the transaction has an implied valuation of approximately $73.1 million.

Established in 1925 and headquartered in Auburn, Indiana, Peoples, through its wholly-owned subsidiary Peoples Federal Savings Bank, serves northeast Indiana and southwest Michigan with sixteen full-service banking locations. As of December 31, 2014, Peoples had total assets of $486.6 million and total equity of $61.3 million, translating to equity to asset ratio of 12.60%.

Horizon Bancorp is a community bank holding company headquartered in Michigan City, Indiana with total assets of $2.1 billion as of December 31, 2014. Horizon Bancorp's wholly-owned subsidiary, Horizon Bank, NA, still operates under its original charter, dating back to 1873, with a footprint of thirty-one offices extending throughout northern and central Indiana and southwestern and central Michigan.

The transaction is expected to be completed in the third quarter of 2015, subject to approval by federal and state regulatory authorities and the shareholders of Peoples and Horizon, as well as the satisfaction of other customary closing conditions provided in the merger agreement. The merger agreement also provides that Peoples Federal Savings Bank will be merged into Horizon Bank.

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