MainSource Bank, Greensburg, Indiana – Daryl R. Tressler, Chairman, President and Chief Executive Officer of MainSource Bank today announced that MainSource Bank will expand its presence in Kentucky with the purchase of three branch locations from American Founders Bank, Inc. (“AFB”). The transaction includes two branch locations in Frankfort, Kentucky and one branch location in Lawrenceburg, Kentucky. In total, the purchase includes approximately $70 million in loans and $100 million in deposits. MainSource Bank currently maintains a presence in Mercer and Anderson counties in Kentucky. In exchange, MainSource Bank will sell its branch located in Jefferson County, Kentucky, including certain associated loans and deposits, to American Founders Bank.
Mr. Tressler stated, “This acquisition is a strategic opportunity for MainSource Bank to expand relationships in our Kentucky markets. The locations of these branches provide a natural extension of our footprint and are located in communities that fit our core business strategy. In addition, we are eager to expand our brand of community banking and its focus on local-decision making to the residents of Frankfort and the surrounding areas. We believe this acquisition will allow MainSource Bank to be a stronger financial institution and demonstrates our commitment to growth and opportunity in this area.”
“This acquisition continues our long-range strategy of investing in markets with high growth potential for AFB,” stated John T. Taylor, President and CEO of American Founders Bank. “AFB has successfully served the Louisville market from our North Hurstbourne location since 2007 and we are pleased to bring our customer-focused approach to banking to more consumers and businesses in Jefferson County.”
The agreement calls for the Frankfort and Lawrenceburg offices to become a part of MainSource Bank, which is a wholly owned subsidiary of MainSource Financial Group. The Louisville office will become part of American Founders Bank, which is a wholly owned subsidiary of American Founders Bancorp, Inc. The transaction, which is expected to close in the second quarter of 2009, is subject to regulatory approval and other closing conditions.
MainSource Bank is a subsidiary of MainSource Financial Group, Inc., which is also headquartered in Greensburg, Indiana. MainSource Financial Group is listed on the NASDAQ National Market (under the symbol:"MSFG") and is a community-focused, financial holding company with assets of approximately $2.9 billion. The Company operates 69 offices in 32 Indiana counties, 6 offices in 3 Illinois counties, 4 offices in 3 Kentucky counties, and 6 offices in 2 Ohio counties through its three banking subsidiaries, MainSource Bank, Greensburg, Indiana, MainSource Bank of Illinois, Kankakee, Illinois, and MainSource Bank - Ohio, Troy, Ohio. Through its non-banking subsidiaries, MainSource Insurance LLC, and MainSource Title LLC, the Company and its banking subsidiaries provide various related financial services.
American Founders Bancorp, through its subsidiary American Founders Bank, currently has nine financial centers in Lexington (4), Louisville, Shelbyville, Frankfort (2) and Lawrenceburg, Kentucky. A Kentucky-based institution, AFB was founded in 2001 and acquired First Security Bank of Lexington in 2006. It had assets of over $500 million as of September 30, 2008.
Except for historical information contained herein, the discussion in this press release may include certain forward looking statements based upon management expectations. Actual results and experience could differ materially from the anticipated results or other expectations expressed in the Company’s forward-looking statements. Factors which could cause future results to differ from these expectations include the following: general economic conditions; legislative and regulatory initiatives; monetary and fiscal policies of the federal government; deposit flows; the cost of funds; general market rates of interest; interest rates on competing investments; demand for loan products; demand for financial services; changes in accounting policies or guidelines; changes in the quality or composition of the Company’s loan and investment portfolios; the Company’s ability to integrate acquisitions; the impact of our continuing acquisition strategy; and other factors, including various “risk factors” as set forth in our most recent annual report on Form 10-K and in other reports we file from time to time with the Securities and Exchange Commission. These reports are available publicly on the SEC website, www.sec.gov, and on the Company’s website, www.mainsourcefinancial.com.