Greensburg-based MainSource Financial Group Inc. (Nasdaq: MSFG) has announced the acquisition of a Cincinnati bank. The deal for Cheviot Financial Corp. (Nasdaq: CHEV) is valued at more than $107 million and expected to close in the second or third quarter next year.
Cheviot Financial is the holing company for Chieviot Savings bank and its 12 Cincinnati-area locations, which will merge into MainSource Bank.
MainSource Chief Executive Officer Archie Brown says "we are very pleased to announce this merger. It 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. As a result of the merger, MainSource will increase its market share position in the Cincinnati MSA from 18th to 10th. MainSource, like Cheviot, is deeply committed to the communities it serves. We look forward to extending our philosophy of community banking to Cheviot customers."
Both companies’ boards unanimously approved the merger.
Cheviot CEO Mark Reitzes calls MainSource the "ideal" partner. "We believe that our employees, customers, shareholders and community will benefit greatly from this partnership. MainSource has a larger lending capacity and a much broader array of banking products and services, and they have the same commitment to delivering excellent customer service."
MainSource reports assets totaling approximately $3.3 billion. It has 85 Indiana, Illinois, Kentucky and Ohio MainSource Bank branches and a financial services subsidiary, MainSource Title LLC.
Greater Cincinnati has become a big focus of MainSource. Late last year, it completed the acquisition of MBT Bancorp, the West Harrison-based holding company of The Merchants Bank and Trust Co. That deal was valued at approximately $35 million.
Cheviot’s most recent earnings report, released in September, shows the institution had approximately $576.6 million in assets, $365.1 million in loans, $459.9 million in deposits and $96.9 million of total equity.
The deal must still receive regulatory approvals, as well as Cheviot stockholder approval.