Horizon Bancorp would extend a little further into Michigan with the acquisition of a Midland-based community bank.
The Michigan City, Ind.-based Horizon Bancorp (Nasdaq: HBNC), which has 12 offices in Michigan, plans to acquire Wolverine Bancorp Inc. (Nasdaq: WBKC) in a cash-and-stock deal announced Wednesday and valued at about $88.2 million. Pending approval from regulators and Wolverine Bancorp shareholders, the deal could close late in the third quarter or early in the fourth quarter.
“We are enthusiastic about this merger, as it allows Horizon to extend our reach into Michigan while remaining true to our values as we partner with this like-minded institution,” Horizon Chairman and CEO Craig Dwight said in a statement.
Horizon has 59 offices in Indiana, Ohio and Michigan with assets of $3.2 billion. The bank’s Michigan locations include an office in downtown Grand Rapids that opened earlier this year, two branches in the Kalamazoo area, five in Berrien County, and three in Three Rivers.
As of a year ago, Horizon Bank had $374.3 million in deposits in Michigan, according to the FDIC’s 2016 Summary of Deposits.
Wolverine Bank has two offices in Midland, one in Frankenmuth, and a loan office in Troy. The bank has assets of $379.3 million, $331.4 million in total loans, and total deposits of $271.1 million as of March 31.
Under the agreement, Wolverine shareholders would receive a little more than one share of Horizon stock and $14 in cash for each of their shares. Based on the Tuesday closing price, it would put the deal at $41.92 per share.