Business
Horizon Bank to Acquire 14 TCF National Bank Branches in Michigan with $976 Million in Deposits and $278 Million in Loans
Extends Horizon’s Midwest retail franchise in 11 Michigan counties MICHIGAN CITY, Ind., May 25, 2021 (GLOBE NEWSWIRE) -- Horizon Bank, a wholly owned
About this update from Horizon Bancorp, Inc.
[{"type":"text","content":"Extends Horizon’s Midwest retail franchise in 11 Michigan counties\nMICHIGAN CITY, Ind., May 25, 2021 (GLOBE NEWSWIRE) -- Horizon Bank, a wholly owned subsidiary of Horizon Bancorp, Inc. (NASDAQ GS: HBNC) (“Horizon”), has entered into a definitive purchase and assumption agreement to acquire 14 TCF National Bank (“TCF”) branches in 11 Michigan counties with approximately $976 million in deposits and $278 million in associated loans, which are being divested by TCF Financial Corporation in connection with its merger with Huntington Bancshares Incorporated. “We are excited to welcome Horizon Bank’s newest employees and customers and introduce them to our record of exceptional service to consumers, small businesses, non-profits and municipalities across Michigan and Indiana,” Chairman and CEO Craig M. Dwight said. “This financially and strategically attractive transaction is a logical extension of our efficient retail franchise, which is designed to further enhance our low-cost core deposit and funding capability to support loan growth in a recovering economy.” The transaction, which is expected to be completed by the end of the third quarter of 2021, is subject to regulatory approval and other customary closing conditions and adjustments. Horizon expects to add over 50,000 primarily retail and small business customer accounts and the entire workforce of the acquired branches. Currently, Horizon Bank operates 74 bank branches, including 15 in Michigan, and customers across its diverse and economically attractive Midwestern markets conduct a majority of their transactions through its convenient digital and virtual banking channels. Transaction SummaryHorizon Bank agreed to pay 1.75% premium on deposits acquired at closing, or $17.1 million based on deposits outstanding of approximately $976 million at March 31, 2021. Horizon expects the transaction to be in excess of 17% accretive to 2022 earnings per share, excluding non-recurring transaction-related expenses. Tangible book value dilution is expected to be 5.0%, with a TBV earnback of approximately two years. An internal rate of return of approximately 21% is anticipated. The transaction is expected to expand Horizon’s already low-cost core deposit franchise, even with conservative runoff and attrition assumptions. Deposit accounts to be acquired have an average relationship life o...