Jasper, Ind.-based German American Bancorp Inc., the holding company of German American Bank, closed its acquisition of the five-branch network of MainSource Financial Group Inc. in Columbus and Greensburg, Ind., from First Financial Bank.
MainSource Financial Group was acquired by Cincinnati-based First Financial Bancorp. on April 1.
German American's acquisition of the branches resulted in the transfer of about $175 million in deposits and $120 million in loans, which was finalized on May 18. In connection with the closing of the deal, German American paid a premium on deposits assumed of about $7.4 million, which is subject to a true-up provision whereby the deposit premium shall be recalculated on the six month anniversary of the transfer. Moreover, German American has a 6-month put option on the purchased loans, whereby German American can require First Financial to buy back certain loans within six months following the closing of the transaction.
All of the five acquired branches started to operate as German American branches on May 19.
Raymond James & Associates Inc. served as German American's financial adviser, while Bingham Greenebaum Doll LLP served as German American's legal counsel on the transaction.