MainSource Financial Group has agreed to acquire all of the common stock of Cheviot Financial in a cash and stock deal worth about $107.4m.
Cincinnati-based Cheviot Financial is the parent of Cheviot Savings Bank, operating with 12 branches across greater Cincinnati, Ohio.
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Cheviot Financial managed about $576.6m in assets, $365.1m in loans, $459.9m in deposits and $96.9m in total equity as of 30 September 2015.
As per the agreed terms of the merger deal, Cheviot Savings Bank will merge with and into MainSource Financial subsidiary MainSource Bank, where MainSource Bank will be the surviving entity.
Cheviot stockholders will have the right to receive either 0.6916 shares of MainSource common stock or $15.00 in cash for each share of Cheviot common stock owned.
The transaction has already secured the green light from the boards of both companies. It is scheduled to close in the second or third quarter of 2016, subject to regulatory approval and Cheviot stockholders’ approval.
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By GlobalDataCommenting on the deal, MainSource Financial Group president and CEO Archie Brown, Jr. said: "We are very pleased to announce this merger. It will significantly expand our market presence in greater Cincinnati, an area where we have already been focusing, and presents an opportunity to prudently continue our growth as an organization.
"As a result of the merger, MainSource will increase its market share position in the Cincinnati MSA from 18th to 10th. MainSource, like Cheviot, is deeply committed to the communities it serves. We look forward to extending our philosophy of community banking to Cheviot customers."
