EXHIBIT 99.1

                                  News Release

BW Account Number: 1079001

Date:                    August 17, 2004 5:00 P.M., EST
Contact:                 James L. Saner, Sr., President & CEO
                         Mainsource Financial Group (812) 663-0157



                           MainSource Financial Group
                       Expands Stock Repurchase Program -
                                  NASDAQ, MSFG

MainSource Financial Group (NASDAQ:MSFG) announced today that its Board of
Directors has authorized an expansion of its common stock repurchase plan
effective immediately, whereby MainSource Financial Group may purchase up to an
additional 2.5% of its common shares outstanding through January 31, 2005. This
is in addition to the repurchase program effective February 1, 2004. In total,
the Company is authorized to repurchase up to 5% of its outstanding shares. The
program will be dependant upon market conditions and there is no guarantee as to
the exact number of shares to be repurchased by the Company.

James L. Saner, Sr., President and Chief Executive Officer, stated that
MainSource Financial Group's Board of Directors considers the Company's common
stock to be an attractive investment. The purchase will generally occur in the
open market but may also involve unsolicited negotiated transactions.

The shares repurchased would be used for general corporate purposes and the
repurchase program may improve liquidity in the market for MSFG common stock.
Mr. Saner stated, "We believe that the repurchase of the Company shares benefits
our shareholders and illustrates the Company's commitment to enhancing long-term
shareholder value."

MainSource Financial Group, Inc., headquartered in Greensburg, Indiana, is
listed on the NASDAQ Stock Market (trading symbol: MSFG) and is a
community-focused, multi-bank, financial services oriented holding company with
assets of $1.6 billion. Through its five banking subsidiaries, First Community
Bank and Trust, Bargersville, Indiana; MainSource Bank, Greensburg, Indiana;
People's Trust Company, Linton, Indiana; Regional Bank, New Albany, Indiana; and
Capstone Bank, Watseka, Illinois, it operates 58 offices in 22 Indiana counties
and six offices in three Illinois counties. Through its insurance subsidiary,
MainSource Insurance, it operates eight offices in Indiana as well as one in
Owensboro, Kentucky.

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 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.

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 MainSource Financial Group, 201 N. Broadway, P.O. Box 87, Greensburg, IN 47240