MainSource Financial (MSFG) in Greensburg, Ind., has agreed to buy MBT Bancorp in West Harrison, Ind.

The $2.9 billion-asset MainSource said in a press release Monday that it will pay about $33.8 million in cash and stock for the $225.2 million-asset MBT. MainSource said 60% of the consideration would involve stock. The merger is expected to be completed in the third quarter.

MBT has six branches, $180.2 million in loans and $187.9 million in deposits.

The acquisition "strengthens our footprint in Dearborn County and enhances our growth strategy in Cincinnati, an area where we have already been investing, and presents an opportunity to prudently and accretively deploy our strong capital base," Archie Brown Jr., MainSource's president and chief executive.

MainSource said it expects the transaction to be accretive to its 2015 earnings by about 9 cents a share. It is projected to be about 4% dilutive to tangible book value per share at closing, including $4 million in pretax restructuring charges, with an earnback period of roughly four years.

Keefe, Bruyette & Woods and Krieg DeVault advised MainSource. Boenning & Scattergood and Vorys, Sater, Seymour & Pease advised MBT.

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