1st Independence Financial Group, the Louisville-based parent company of 1st Independence Bank, has signed a definitive agreement to merge with MainSource Financial Group Inc., of Greensburg, Ind. Under the merger agreement, 1st Bank will become a wholly owned subsidiary of MainSource and will operate as MainSource Bank-Kentucky.
Based on MainSource’s closing price of $14.60 per share on Feb. 26, 2008, the transaction is valued at $37 million.
1st Independence Bank has eight full-service banking offices located in Harrodsburg, Lawrenceburg, and Louisville, Ky., and New Albany, Jeffersonville, Marengo and Clarksville, Ind., as well as 1st Independence Mortgage offices in Louisville and southern Indiana. MainSource operates 65 offices in 30 Indiana counties, six offices in three Illinois counties, and five offices in two Ohio counties through its three banking subsidiaries: MainSource Bank, Greensburg, Ind.; MainSource Bank of Illinois, Kankakee, Ill.; and MainSource Bank-Ohio, Troy, Ohio. MainSource also operates insurance and title subsidiaries.
The transaction is expected to close in the third quarter of the year.