MainSource Financial Group Inc. in Greensburg, Ind., said Wednesday that it has a deal to buy 1st Independence Financial Group Inc. in Louisville, Ky., for $37 million in cash and stock.
The $352 million-asset 1st Independence is the parent of 1st Bank, which has eight branches in Louisville and southern Indiana.
MainSource has 65 branches in Indiana, Illinois, and Ohio, and 1st Bank, which would become a unit of the company named MainSource Bank-Kentucky, would give it its first Kentucky branches.
The deal values each share of 1st Independence at $18.34, a 70% premium over Tuesday's closing price.
On news of the deal, the stock rose 56.6% by Wednesday afternoon, to $16.90. MainSource's stock fell 3.2%, to $14.14.
The deal is expected to close in the third quarter.
The $2.5 billion-asset MainSource is looking for a new president and CEO. But Robert E. Hoptry, its chairman, president, and CEO, said in an interview that 1st Independence's executives are not being considered.
