EXHIBIT 99.1

                                  News Release

BW Account Number: 1079001

Date:                    November 29, 2004 5:00 P.M., EST
Contact:                 James L. Saner, Sr., President & CEO
                         Mainsource Financial Group (812) 663-0157


                             Stock Dividend Declared
                    MainSource Financial Group - NASDAQ, MSFG

James L. Saner, Sr., President & Chief Executive Officer, announced today that
MainSource Financial Group's Board of Directors has approved a five percent
stock dividend to be paid on January 15, 2005 to shareholders of record as of
December 31, 2004. This represents the fifth consecutive year that the Company
has issued a five percent stock dividend. In addition, the Company recently
announced its fifty-seventh consecutive quarterly cash dividend and has paid
increased cash dividends on an annual basis for the last sixteen years.

Mr. Saner stated, "MainSource Financial Group has continued to sustain strong
returns for our shareholders over the past several years. In addition to the
consecutive quarterly cash and annual stock dividends, MainSource Financial
Group's stock price has steadily increased over the course of the year, during
which we issued a three-for-two stock split. Investors in MainSource Financial
Group have enjoyed increasing rewards and we are confident that this trend will
continue."

Following the stock dividend, MainSource Financial Group will have approximately
11.5 million shares outstanding. Fractional shares resulting from the stock
dividend will be paid in cash.

MainSource Financial Group, Inc. is a community-focused, multi-bank, financial
services oriented holding company with assets of $1.6 billion. MainSource
Financial Group is headquartered in Greensburg, Indiana and is listed on the
NASDAQ Stock Market (trading symbol: MSFG). Through its four banking
subsidiaries MainSource Bank, Greensburg, Indiana; Peoples Trust Company,
Linton, Indiana; Regional Bank, New Albany, Indiana; and Capstone Bank, Watseka,
Illinois, it operates 56 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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