Horizon Bancorp (HBNC) in Michigan City, Ind., has agreed to buy SCB Bancorp (SCB) in East Lansing, Mich.
The $1.8 billion-asset Horizon will pay $18.4 million in cash and stock for SCB, which has $161 million in assets and two branches. The deal, expected to close in the second quarter, will give Horizon a total of 31 branches in central and northern Indiana and southwestern Michigan.
SCB shareholders will receive $5.15 in cash and 0.49 shares of Horizon common stock for each SCB share. Horizon's stock was trading at $21.26 per share Wednesday morning.
John Abbot, president and chief executive of SCB's Summit County Bank, will continue to run that bank. The deal will supplement Horizon's efforts to expand into Grand Rapids, Mich., where it recent hired a senior lender. "We believe establishing a significant presence in these larger markets will provide Horizon with substantial growth opportunities, a key component to our future success," Horizon CEO Craig Dwight said in a press release.
Cummings & Co. and Barnes & Thornburg advised Horizon. SCB Bancorp was advised by Donnelly Penman & Partners and Foster Swift Collins & Smith.
The deal is the latest in a streak of M&A activity in Michigan. Talmer Bancorp in Troy, Mich., announced plans in October to buy four banks from the struggling Capitol Bancorp in Lansing, Mich. Mercantile Bank (MBWB) in Grand Rapids expects to complete its acquisition of Firstbank (FBMI) in Alma, Mich., in December.