German American acquires 5 MainSource branches

From Local Sources

JASPER — German American Bancorp — the banking subsidiary of German American Bancorp Inc. — has signed a definitive agreement to acquire five MainSource Bank branches in Columbus and Greensburg in south central Indiana, with approximately $160 million in deposits and $134 million in loans as of Dec. 31, 2017. MainSource Bank is the banking subsidiary of MainSource Financial Group Inc.

The sale is in connection to a previously-announced agreement between First Financial Bancorp, MainSource and the U.S. Department of Justice in order to resolve the department’s competitive concerns about First Financial’s proposed acquisition of MainSource. The purchase of the branches is subject to the receipt of regulatory approvals from the relevant federal and state banking agencies.

“We are very pleased to announce the addition of four branches to our current Columbus franchise as well as our entry into the Greensburg market,” said Mark A. Schroeder, German American chairman and CEO. “We have been looking for opportunities to expand our presence in Columbus since entering the market in 2013. Furthermore, this transaction brings immediate income to our bottom line and is expected to be accretive to our earnings per share.”

German American expects to pay a premium on deposits assumed of approximately 5 percent or $8 million. The deposit premium paid at closing is subject to a “true-up” provision whereby the premium shall be recalculated on the six-month anniversary of closing. In addition, MainSource has granted German American a six-month “put-option” on the loans purchased, whereby German American can require MainSource to repurchase certain loans within six months following the closing of the transaction.

Raymond James & Associates Inc. served as German American’s financial advisor and Bingham Greenebaum Doll LLP served as German American’s legal counsel on the transaction.

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