Ohio-based First Financial Bancorp has agreed to acquire Indiana-based MainSource Financial Group in an all-stock deal worth about $1bn.

Under the arrangement, MainSource will merge into First Financial while MainSource subsidiary MainSource Bank will merge into First Financial Bank, a subsidiary of First Financial.

The combined group will have around $13.3bn in assets, and will offer commercial and retail banking, wealth management and specialty finance. The group will operate as First Financial and will be based in downtown Cincinnati, Ohio.

As per the agreed terms of the deal, MainSource shareholders will be entitled to receive 1.3875 common shares of First Financial common stock for each share held.

First Financial shareholders will own a stake of nearly 63% in the merged company, while shareholders of MainSource will own around 37% stake.

The deal is expected to be completed in early 2018, subject to shareholder and regulatory approvals.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

First Financial CEO Claude Davis said: “By taking the best of both banks, we believe that the combined company will be even more effective in meeting the lending, economic development and financial education needs of the communities we serve.

“With both companies having proven records of success in organic performance as well as through acquisitions, we see this as a tremendous opportunity to partner with MainSource to create a new company that is even better positioned for growth and continued success.”

Post deal completion, Davis will take up the responsibility of executive chairman for a three-year period and become non-executive chairman in 2021. MainSource chairman, president and CEO Archie Brown, Jr. will become president and CEO of the combined group.