Horizon Bancorp announced on Wednesday that it will acquire SCB and its subsidiary Summit Community Bank in a stock and cash merger valued at approximately $18.4 million.
Under the agreement, SCB shareholders will receive fixed consideration of Horizon common stock and $5.15 in cash for each share of SCB common stock.
SCB, which is headquartered in East Lansing, Mich., serves the greater Lansing area through wholly-owned subsidiary Summit Community Bank, which has total assets of $161 million.
“We are excited to become part of the Horizon Bank family and the increased opportunities this provides our customers and community,” Summit President and CEO John W. 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.”
Headquartered in Michigan City, Ind., Horizon is a community bank holding company with total assets of $1.8 billion. Its subsidiary, Horizon Bank, operates under its original charter, which dates back to 1873, with 29 offices in northern and central Indiana, as well as in 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,” Horizon CEO Craig M. Dwight said. “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 said the merger will provide Horizon with an opportunity to expand its presence in Michigan into the state’s capital region.
“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 transaction, which is subject to federal and state regulatory approval, is expected to be completed in the second quarter of next year.