SOURCE: MainSource Financial Group

March 24, 2005 09:59 ET

MainSource Financial Group Announces Sale of Owensboro, Kentucky Office of MainSource Insurance

GREENSBURG, IN -- (MARKET WIRE) -- March 24, 2005 -- James L. Saner, Sr., President and Chief Executive Officer of MainSource Financial Group, Inc. (NASDAQ: MSFG) today announced the sale of its Owensboro Office of MainSource Insurance, a wholly owned subsidiary of MainSource Financial Group.

MainSource Financial Group restructured the insurance operations of MainSource Insurance to spin-off the Indiana and Illinois operations to a newly-formed subsidiary of MainSource Financial Group and then to transfer the stock of MainSource Insurance to The Anderson Group. The insurance operations in Kentucky will be operated by The Anderson Group while the Indiana and Illinois offices will continue to operate as MainSource Insurance. The transaction was finalized on March 23, 2005.

Mr. Saner stated, "We remain committed to the concept of offering insurance products through our banking offices. Since the Owensboro office was geographically isolated from MainSource banking locations, it was difficult to properly support and did not strategically fit into our future plans. We wish the Andersons well and have enjoyed our relationship with them."

The agreement provides that all insurance customers of the Owensboro Office of MainSource Insurance will be transferred to The Anderson Group. Consumers will be notified in the coming months with the details of how their accounts will be impacted.

MainSource Financial Group, Inc., headquartered in Greensburg, Indiana, is listed on the NASDAQ Stock Market (NASDAQ: MSFG) and is a community-focused, financial services holding company with assets of approximately $1.6 billion. Through its three banking subsidiaries, MainSource Bank, Greensburg, Indiana; Peoples Trust Company, Linton, Indiana; and MainSource Bank of Illinois, Kankakee, Illinois, it operates 54 offices in 22 Indiana counties and six offices in three Illinois counties. Through its insurance subsidiary, MainSource Insurance, it operates eight offices in Indiana.

Forward-Looking Statements

Except for historical information contained herein, the discussion in this press release may include certain forward-looking statements based upon management expectations. 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 costs 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; and changes in the quality or composition of the Company's loan and investment portfolios; the timing of the closing of the transaction; the timing and success of integration efforts once the transaction is complete; MainSource's expectations or ability to realize success with the acquisition of The Madison Bank and Trust Company, the impact of this transaction, if successful, on MainSource's business.

The forward-looking statements included in the press release relating to certain matters involve risks and uncertainties, including anticipated financial performance, business prospects, and other similar matters, which reflect management's best judgment based on factors currently known. Actual results and experience could differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements as a result of a number of factors, including but not limited to, those discussed in the press release.

Contact Information

  • CONTACT:
    James L. Saner, Sr.
    President and CEO
    MainSource Financial Group
    812-663-0157