Chesterton Tribune

Horizon Bancorp to purchase American Trust and Savings Bank

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Horizon Bancorp, parent company of Horizon Bank, headquartered in Michigan City, has announced the signing of a definitive agreement to purchase substantially all of the banking-related assets and assume all deposits and certain other liabilities of American Trust & Savings Bank, headquartered in Whiting, and its parent company, Am Tru Inc.

On closure, the transaction will increase Horizon’s total assets to around $1.43 billion. “Horizon anticipates this transaction will be accretive to earnings per share in 2010,” the company said in a statement released on Tuesday.

Under the terms of the agreement, and as of Sept. 30, Horizon will purchase most of American Trust’s banking-related assets (with an estimated value of $110 million) and will assume all deposits, federal home loan bank advances, and accrued interest payable in the approximate amount of $112 million, the statement said.

Horizon will also pay a 3 percent premium on core deposits estimated to be $2.1 million and $500,000 in additional consideration, the statement said.

Horizon will not be purchasing around $12 million of loan participations owned by American Trust or assuming any contingent liabilities, the statement noted.

The transaction is subject to approval by the shareholders of American Trust and Am Tru and by bank regulators. Closure is expected in the second quarter of 2010.

“We are grateful for the opportunity to have served the Northwest Indiana community,” American Trust President Philip Grenchik said. “We treasure the relationships we’ve developed and wish each of our customers and employees continued success as they join forces with Horizon Back, a company that shares our community focus.”

“We are extremely pleased to have the opportunity to expand our market presence in Northwest Indiana,” Horizon Bancorp President Craig Dwight said. “The markets served by American Trust are a natural fit—enabling the combined companies to provide our customers with additional branch locations and services throughout the region.”

On closure, American Trust plans to continue to independently operate the business of its insurance department as American Trust Insurance Services and its American Trust Investment subsidiary, the statement said.

On Sept. 30, Horizon Bancorp had consolidated assets of $1.32 billion and operated 19 offices throughout Northern Indiana and Southwest Michigan under its original charter dating to 1873. It trades on the NASDAQ Global Market under the symbol HBNC.

On Sept. 30, American Trust & Savings Bank had total assets of $122 million. A family-owned business founded in 1920, it operates four offices, in Whiting, Hammond, Crown Point, and Porter.

 

Posted 12/30/2009