As per the agreement inked, MainSource Bank will buy the existing branch location at Shelbyville, Kentucky, US, as well as nearly $37m in loans and $37m in deposits.
The deal is expected to close during the fourth quarter of 2012, after satisfying customary closing conditions and getting regulatory approval.
At present, MainSource Bank manages four offices in Mercer, Franklin and Anderson counties in Kentucky.
MainSource Bank president and chief executive officer Daryl Tressler said this acquisition is a strategic opportunity for MainSource Bank to expand relationships in Kentucky markets.
"Shelbyville provides a natural extension of our footprint and is a community that fits our core business strategy. We believe this acquisition will allow MainSource Bank to be a stronger financial institution and demonstrates our commitment to growth and opportunity in this area," Tressler added.
MainSource Bank is a banking subsidiary of MainSource Financial, which is a community-focused, financial holding company with assets of nearly $2.8bn.
