Horizon Bancorp to Acquire LSB Financial Corp.

TL;DR

Horizon Bancorp buying LSB Financial for $137.5M, deal expected Q2 2025.

AI Summary

Horizon Bancorp, Inc. announced on November 22, 2024, that it has entered into a definitive agreement to acquire LSB Financial Corp. for approximately $137.5 million in cash and stock. The transaction is expected to close in the second quarter of 2025, subject to customary closing conditions.

Why It Matters

This acquisition will expand Horizon Bancorp's presence in the Midwest, creating a larger, more diversified financial institution.

Risk Assessment

Risk Level: medium — Acquisitions carry inherent risks, including integration challenges, regulatory approvals, and potential impacts on financial performance.

Key Numbers

• $137.5M — Acquisition Value (Total consideration for LSB Financial Corp.)
• Q2 2025 — Expected Closing (Anticipated completion of the acquisition)

Key Players & Entities

• Horizon Bancorp, Inc. (company) — Acquiring company
• LSB Financial Corp. (company) — Acquired company
• $137.5 million (dollar_amount) — Acquisition price
• November 22, 2024 (date) — Agreement date
• second quarter of 2025 (date) — Expected closing date

FAQ

Filing Documents

• horizon_8k112224.htm (8-K) — 31KB
• 0000908834-24-000343.txt ( ) — 164KB
• hbnc-20241122.xsd (EX-101.SCH) — 4KB
• hbnc-20241122_lab.xml (EX-101.LAB) — 21KB
• hbnc-20241122_pre.xml (EX-101.PRE) — 16KB
• horizon_8k112224_htm.xml (XML) — 4KB

01 Other Events

Item 8.01 Other Events. As previously disclosed, in October 2024 Horizon Bancorp, Inc. ("Horizon" or the "Company") signed a non-binding letter of intent to sell its mortgage warehouse business. On November 22, 2024, Horizon and the prospective purchaser terminated the letter of intent. The entry into of the letter of intent was previously disclosed in the Company's press release and investor presentation furnished as exhibits to the Current Report on Form 8-K furnished by the Company to the Securities and Exchange Commission ("SEC") on October 23, 2024, as well as in the Company's Quarterly Report on Form 10-Q filed by the Company with the SEC on November 12, 2024 in Note 15 – Subsequent Events. As set forth in those disclosures, the sale was expected to generate a gain-on-sale, neutral to net income and not expected to have a material impact on deposit balances. The termination of the letter of intent does not change the Company's previously disclosed guidance for the fourth quarter of 2024. The Company may continue to pursue options for selling its mortgage warehouse business to other potentially interested parties but cannot predict or assure whether any such transaction will occur, or the terms of any such transaction.

Forward Looking Statements

Forward Looking Statements This report may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon. For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this report should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the SEC. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as "anticipate," "estimate," "project," "intend," "plan," "believe," "will" and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon's assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: November 25, 2024 HORIZON BANCORP, INC. By /s/ John R. Stewart John R. Stewart, CFA Executive Vice President & Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR