MainSource Financial Group in Greensburg, Ind., has agreed to buy Cheviot Financial in Cincinnati.

The $3.3 billion-asset MainSource said in a press release Tuesday that it will pay about $107.4 million, or $15 a share, in cash and stock for the $577 million-asset Cheviot. The deal is expected to close in the second or third quarter.

MainSource said it expects the deal to be accretive to it 2017 diluted earnings per share by about 12 cents. The acquisition should also be about 3.8% dilutive to tangible book value per share at closing, including $7.5 million in pretax restructuring charges, with an earnback period of roughly four years.

Cheviot has 12 branches around Cincinnati, along with $365 million in loans and $460 million.

The acquisition "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," Archie Brown Jr., MainSource's president and chief executive, said in the release.

Boenning & Scattergood and Krieg DeVault advised MainSource. Keefe, Bruyette and Woods and Luse Gorman advised Cheviot.

Cheviot last year resolved a dispute with Seidman Group by allowing the investor to appoint a director to serve on the company's board. Siedman Group also agreed to back Cheviot's board nominees, cap its stake at 9.9% and refrain from pushing the company to sell itself or recapitalize.

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