Horizon Bancorp, the parent company of Horizon Bank NA, has signed 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 (ATSB) and its parent company Am Tru, Inc.
Under the terms of the agreement, Horizon will purchase most of the banking-related assets of American and will assume all the deposits, federal home loan bank advances and accrued interest payable in the approximate amount of $112m. In addition, Horizon will pay a three percent premium on core deposits estimated to be $2.1m and $500,000 in additional consideration.
The purchase will increase Horizon’s total assets to approximately $1.43bn. Horizon anticipates this transaction will be accretive to earnings per share in 2010.
Following the transaction, ATSB plans to continue to independently operate the business of its insurance department as American Trust Insurance Services and its American Trust Investment subsidiary.
Philip Grenchik, president of ATSB, said: “We are grateful for the opportunity to have served the Northwest Indiana community. We treasure the relationships we’ve developed and wish each of our customers and employees continued success as they join forces with Horizon Bank; a company that shares our community focus.”
Craig Dwight, CEO of Horizon Bancorp, said: “We are extremely pleased to have the opportunity to expand our market presence in Northwest Indiana. The markets served by American are a natural fit – enabling the combined companies to provide our customers with additional branch locations and services throughout the region.”
However, the transaction is subject to approval by the shareholders of American and Am Tru and bank regulators. This transaction is expected to close in the second quarter of 2010.
