Based on the Feb. 3, closing price of $23.99 per share of Horizon common stock, the transaction has an implied valuation of approximately $22.5 million.

Established in 1892 and headquartered in Mentone, Kosciusko, through its wholly-owned subsidiary, Farmers State Bank, serves northeast Indiana with five full-service banking locations. As of Dec. 31, 2015, Kosciusko had total assets of approximately $148.2 million and total equity of $16.5 million, translating to an equity to asset ratio of 11.1.

Horizon Bancorp is a community bank holding company headquartered in Michigan City,  with total assets of $2.7 billion as of Dec. 31, 2015. Horizon Bancorp’s wholly-owned subsidiary, Horizon Bank, NA, still operates under its original charter, dating back to 1873, with forty-six offices extending throughout northern and central Indiana and southwestern and central Michigan.

“We are enthusiastic about this merger, as it is consistent with Horizon’s philosophy of partnering with banks that hold core values similar to ours and a commitment to serving their local communities,” said Horizon’s chairman and chief executive officer, Craig M. Dwight.

“Farmers State Bank’s experienced team of community bankers, with a shared philosophy of providing exceptional customer service and commitment to the community, will enhance Horizon’s franchise value,” continued Dwight.  Horizon has a track record of establishing local advisory boards to maintain the pulse of the local community.  Dwight indicated that such an advisory board will be established for Kosciusko County following the merger.

Greg Maxwell, president and CEO, Farmers State Bank stated, “We are pleased with the opportunity to partner with the Horizon Bank family and the increased opportunities this provides our customers, employees and the communities we serve. Horizon’s demonstrated commitment to preserve true community banking, which means local decision-making, retention of local staff, commitment to community involvement and personal one-on-one service, will be keys to our joint and future success.”   

The transaction is expected to be completed in the second quarter of 2016, subject to approval by bank regulatory authorities and the shareholders of Kosciusko, as well as the satisfaction of other customary closing conditions. Farmers State Bank will be merged into Horizon Bank, and the combined operations will be continued under the Horizon Bank name.