Horizon Bancorp (NASDAQ: HBNC) announced today that its Board of Directors has declared a three-for-two stock split to be effected in the form of a stock dividend on Horizon’s outstanding shares of common stock. Shareholders of record as of the close of business on November 28, 2011, the record date, will be entitled to receive an additional half share for each share of common stock held.
Shareholders will receive cash in lieu of any fractional share of common stock that they otherwise would have been entitled to receive in connection with the split, except that shareholders participating in Horizon’s Dividend Reinvestment and Stock Purchase Plan will have fractional shares of common stock credited to their accounts. The price paid for fractional shares will be based on the average closing price of a share of common stock as reported on the NASDAQ Global Market for the five trading days immediately prior to the record date. The additional shares are expected to be distributed to shareholders on December 9, 2011.
Craig M. Dwight, Horizon’s President and Chief Executive Officer, stated: “Horizon has a strong and stable shareholder base, and we appreciate the large number of long-term, loyal shareholders we have. This split is intended to improve the liquidity for our stock by making more shares available in the marketplace, and to make our stock more accessible and attractive to new investors. Horizon offers the opportunity to invest in a growing community bank that has consistently offered an attractive cash dividend return.”
“We recently announced our Company’s highest net income for a quarter and for a nine-month period. Management and the Board of Directors believe a 3-for-2 stock split will facilitate strategic investments in our Company at a reasonable price.”
The stock split will increase Horizon’s outstanding shares from approximately 3.3 million shares prior to the split to approximately 5.0 million shares.