LIZTON, Ind. and INDIANAPOLIS, April 26, 2016 (GLOBE NEWSWIRE) -- Lizton Financial Corporation (“Lizton”) and Indiana Business Bancorp (OTCQB:IBBI) (“IBB”) announced they have executed a definitive merger agreement whereby Lizton will acquire IBB in a cash transaction. As part of the transaction, Indiana Business Bank, a wholly-owned subsidiary of IBB, will merge with State Bank of Lizton, a wholly-owned subsidiary of Lizton. After the transaction, the combined bank will operate as State Bank of Lizton.
The Merger Agreement provides that the shareholders of IBB will receive $7.25 per share in cash, for an aggregate merger consideration of approximately $12.45 million. The transaction is expected to be completed in the third quarter of 2016 subject to the approval of IBB’s shareholders, regulatory approvals and other customary closing conditions. The combined financial institution expects to complete the integration during the fourth quarter of 2016.
Originally founded in 1910, Lizton is a locally owned, independent commercial bank holding company serving nine communities in Central Indiana through eleven locations. Founded in 2004, IBB serves the business banking needs of Central Indiana through a single Northern Indianapolis location. Based upon current financials, Lizton and IBB will have combined assets of approximately $440 million.
Michael L. Baker, President and Chief Executive Officer of Lizton Financial Corporation, said, “The team at IBB is well known to us, their expertise and abilities will be a perfect complement to our existing staff. We share a common commitment to community banking, built around local decision making and strong relationship banking. The combination will provide additional products and services for IBB customers, and significantly impact our potential for additional commercial banking growth.”
James S. Young, President and Chief Executive Officer of Indiana Business Bancorp, stated, “We are very excited to continue serving our clients as part of the Lizton family. The larger lending capacity and broader product offering will only improve the positive experience our clients have come to expect from Indiana Business bankers. I've known Mike Baker for over a decade and I am confident that our shared client-first approach to community banking will result in a smooth transition.”
IBB was advised by Sandler O’Neill + Partners, L.P. and the law firm of Faegre Baker Daniels LLP. Lizton was advised by Renninger & Associates, LLC and the law firm of SmithAmundsen LLC.
Forward Looking Statement
This press release contains certain forward-looking statements. These statements include, but are not limited to, the respective descriptions of IBB and Lizton’s financial condition, results of operations, asset and credit quality trends, profitability and statements about the expected financial benefits and other effects of the affiliation between the companies. Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: expected cost savings, synergies and other financial benefits from the affiliation might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; market, economic, operational, liquidity, credit and interest rate risks associated with the combined entity’s businesses; competition; government legislation and policies; the ability of the combined entity to execute its business plan; changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of internal controls; failure or disruption of information systems; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities or unfavorable resolutions of litigations; conditions to the closing of the merger, including the obtaining of required regulatory and shareholder approvals; the merger may involve unexpected costs, liabilities or delays; the occurrence of any event, change or other circumstances that could give to the termination of the merger agreement; and the ability of the parties to recognize the benefits of the merger. These forward-looking statements are made only as of the date of this press release, and neither IBB nor Lizton undertake an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.