MainSource, Merchants Bank Reach Merger Agreement
By Mike Perleberg
(West Harrison, Ind.) - Two regional banks headquartered in southeast Indiana area merging.
Greensburg-based MainSource Financial Group announced Monday that it is reached a definitive merger agreement with MBT Bancorp, the holding company for West Harrison-based Merchants Bank & Trust. Merchants will be merged in MainSource, meaning Merchants’ six branches – located in West Harrison, Bright, and Aurora in Indiana as well as Ohio locations in Harrison, Western Hills, and Hyde Park – will eventually bear the MainSource name.
The cash and stock deal is worth approximately $33.8 million. In a news release, MainSource President and CEO Archie M. Brown, Jr. called the merger a partnership.
“It strengthens our footprint in Dearborn County and enhances our growth strategy in Cincinnati, an area where we have already been investing, and presents an opportunity to prudently and accretively deploy our strong capital base,” said Brown.
Merchants President and CEO Don Patterson said the bank’s customers and employees will benefit greatly from the partnership.
“Given the similarity in our cultures and community-based approach, MainSource was the ideal choice as MBT’s partner,” he said.
The merger approved by the boards of both banks is expected to be complete in the third quarter of 2014, subject to regulatory and MBT shareholder approval.
According to the announcement, as of December 31, 2013, Merchants had approximately $225.2 million in assets, $180.2 million in loans, $187.9 million in deposits and $23.9 million of total equity.
The acquisition only adds to the growth of MainSource, which already operated 74 full-service banking offices in Indiana, Illinois, Kentucky, and Ohio. The bank has assets of approximately $2.9 billion.