Corporate News Blog – Horizon Bancorp and Wolverine Bancorp Announce Merger

LONDON, UK / ACCESSWIRE / June 16, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Horizon Bancorp (NASDAQ: HBNC) and Wolverine Bancorp Inc. (NASDAQ: WBKC). Horizon Bancorp announced on June 14, 2017, that it has signed an agreement to acquire Wolverine Bancorp and its wholly-owned subsidiary, Wolverine Bank, in a stock plus cash deal. The acquisition will allow Horizon to expand its operations in Michigan area. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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Commenting on the acquisition, Craig M. Dwight, Chairman and CEO of Horizon said:

“Wolverine Bank’s foundation is to contribute to the success of their customers by offering creative financial solutions based upon sound financial advice while being mindful of the communities they serve. This stems from their goal to preserve the values of community banking. We expect that our complementary product offerings and commitment to the local communities will result in success for the shareholders of the combined Company, employees, customers and communities at large.”

David H. Dunn, President and CEO of Wolverine Bank added:

“This partnership with Horizon Bank will provide us new opportunities to increase the depth of products and services we can offer to our customers, while providing significant value to our shareholders. Importantly, Horizon shares our commitment to community banking and understands the value we provide to the communities we serve.”

Details of the merger agreement

As per the agreement signed by both Banks, Horizon will pay Wolverine’s shareholders 1.0152 shares of Horizon’s common stock plus$14.00 in cash for each Wolverine’s common stock share. The offer price values Wolverine at $41.92 per share based on the closing price of $27.50 for Horizon share on June 13, 2017.

The deal is expected to close in late Q3 2017 or early Q4 2017 and is subject to shareholders approvals, approval from banking regulators, and other closing conditions.

Once the transaction is completed, the combined operations of both Banks will continue under the Horizon Bank. Once the transaction is completed one director from Wolverine’s Board will join Horizon’s Board of Directors.

Horizon has a history of establishing local advisory boards to continue its engagement with the local community and keep itself updated on the various trends and needs. Craig M. Dwight has indicated that once the merger is completed a similar advisory board will be established for the Great Lakes Bay Region

Advantages for Horizon

Wolverine’s operations cover the Great Lakes Bay Region of Michigan with three full-service banking offices at Metro Detroit, Greater Lansing, and Grand Rapids. The acquisition will allow Horizon to expand its presence in these regions of Michigan and will also complement Horizon’s locations at East Lansing and Grand Rapids. The expanded market presence in Michigan will provide substantial growth opportunities for Horizon in the future.

Wolverine had total assets of approximately $379.3 million and total equity of $62.5 million as on March 31, 2017. This represents equity to asset ratio of 16.48%. The acquisition would add to the overall asset quality and portfolio for Horizon.

About the parties to the merger agreement

Michigan City, Indiana based Horizon Bank is a subsidiary of Horizon Bancorp, an independent, commercial bank holding Company. It was originally chartered in 1873 and at present has 59 offices across northern and central Indiana, southwestern and central Michigan, and central Ohio. It offers a wide range of financial services including banking, investment, and trust services, and it also provides mortgage banking services. As on May 31, 2017, Horizon has total assets of $3.2 billion.

Midland, Michigan based Wolverine Bank is a wholly owned subsidiary of Wolverine Bancorp and is a federally chartered savings bank. It was originally chartered in 1933. It offers a range of financial services and caters to individuals, families, and businesses located in the Great Lakes Bay, Metro Detroit, Greater Lansing and Grand Rapids regions of Michigan.

Last Close Stock Review

On Thursday, June 15, 2017, the stock closed the trading session at $26.10, marginally falling 0.42% from its previous closing price of $26.21. A total volume of 80.26 thousand shares have exchanged hands, which was higher than the 3-month average volume of 53.25 thousand shares. Horizon Bancorp’s stock price soared 0.81% in the past six months and 60.52% in the previous twelve months. The stock is trading at a PE ratio of 18.09 and has a dividend yield of 1.69%. At Thursday’s closing price, the stock’s net capitalization stands at $564.02 million.

Wolverine Bancorp’s share price finished yesterday’s trading session at $39.56, slightly up 0.01%. A total volume of 18.08 thousand shares have exchanged hands, which was higher than the 3-month average volume of 4.73 thousand shares. The Company’s stock price skyrocketed 21.15% in the last three months, 46.77% in the past six months, and 50.58% in the previous twelve months. Additionally, the stock surged 25.18% since the start of the year. Shares of the Company have a PE ratio of 16.79 and have a dividend yield of 4.04%. The stock currently has a market cap of $84.26 million.

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