Greensburg, In. — MainSource Financial Group Inc. and First Financial Bancorp have announced a merger.
The final deal will give MainSource shareholders 1.3875 common shares of First Financial common stock for each share of MainSource common stock. The transaction is valued at $1 billion. When the deal is official, First Financial shareholders will control about 63 percent of the merged operation, MainSource shareholders will own about 37 percent.
The merger will result in a combined company with approximately $13.3 billion in assets, $8.9 billion in loans, $10.0 billion in deposits and $4.0 billion in assets under management, utilizing financial information as of June 30, 2017. The transaction will allow the combined company to better meet the needs of its communities in a rapidly changing banking environment, while providing the efficiencies and scale required to comply with regulatory requirements and costs associated with crossing the $10 billion asset threshold.
“By taking the best of both banks, we believe that the combined company will be even more effective in meeting the lending, economic development and financial education needs of the communities we serve,” said Claude E. Davis, Chief Executive Officer of First Financial. “With both companies having proven records of success in organic performance as well as through acquisitions, we see this as a tremendous opportunity to partner with MainSource to create a new company that is even better positioned for growth and continued success.”
“We are pleased to partner with a company that has a shared vision, culture and focus on performance,” said Archie M. Brown, Jr., Chairman, President and Chief Executive Officer of MainSource. “Our client focused approaches and similar business models delivered across corresponding footprints position us to perform well and produce top-quartile results.”
Claude E. Davis will assume the role of executive chairman, Archie Brown will be the president and chief executive officer and the company will be headquartered in Cincinnati. The deal is expected to close in 2018.
