SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2014

SUBSEQUENT EVENT

SUBSEQUENT EVENT

NOTE 12 — SUBSEQUENT EVENT

On April 7, 2014, the Company announced that it had entered into a definitive agreement to acquire MBT Bancorp, headquartered in West Harrison, Indiana.  MBT is the holding company for The Merchant’s Bank and Trust Company (Merchants), which operates six branches in Dearborn County, Indiana and certain suburban communities of Cincinnati, Ohio.  The merger agreement provides that shareholders of MBT may elect to receive either 2.055 shares of MainSource common stock or $35.16 in cash for each share of MBT common stock owned, subject to proration provisions specified in the merger agreement that provide for a targeted aggregate split of total consideration of 60% common stock and 40% cash.  Based upon the April 4, 2014 closing price of $16.40 per share of MainSource common stock, the transaction is valued at approximately $33.8 million.  The Company anticipates approximately 1,216,000 shares being issued and $13.8 million cash being spent.  As of December 31, 2013, Merchants had approximately $225.2 million in assets, $180.2 million in loans, $187.9 million in deposits, and $23.9 million in total equity.  Simultaneous with the closing of the merger of the Company and MBT Bancorp it is anticipated that Merchants will be merged with and into the Bank. The closing of the transaction remains subject to receipt of regulatory approval and other customary closing conditions and is expected to occur in the fourth quarter of 2014.