First Financial Bancorp inks $1 billion deal to acquire MainSource

The companies see opportunities in commercial lending, retail franchise, and wealth management

First Financial Bancorp inks $1 billion deal to acquire MainSource
First Financial Bancorp is acquiring MainSource Financial Group in a deal valued at $1 billion.

The companies believe the combination presents several opportunities in commercial lending, retail franchise and wealth management. Following the deal, the combined company expects to benefit from an expanded commercial product set, higher lending limits, enhanced efforts to grow low-cost core deposits, and expanded wealth-management product and service offerings.

With complementary balance sheets across Indiana, Ohio and Kentucky, the firms said the deal presented a” compelling” strategic fit, offering franchise coverage expansion in key markets. They also said the transaction was financially attractive and featured a conservative risk profile.

The combined company will have $13.3 billion of total assets, $8.9 billion in total loans, $10 billion in total deposits, and $4 billion in assets under management.

The board of the combined company will be composed of 15 directors, with proportionate composition of nine First Financial directors and six from MainSource. Following the acquisition, current First Financial CEO Claude David will become executive chairman for both holding company and bank, while current MainSource CEO Archie Brown Jr. will be president and CEO of both entities.

The transaction is expected to close in the first quarter of 2018, subject to customary closing conditions including shareholder consent and receipt of regulatory approvals.


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