Greensburg-based MainSource Financial Group Inc. (Nasdaq: MSFG) has announced plans to acquire Louisville-based FCB Bancorp Inc., the parent of The First Capital Bank of Kentucky. The nearly $57 million cash and stock deal is expected to be complete by the second quarter of 2017.
The company says once the acquisition is complete, First Capital Bank will initially operate as a subsidiary of MainSource before merging with MainSource Bank. The deal has been approved by the boards of both companies and still needs approval from FCB shareholders.
"This combination significantly moves MainSource forward on our plan to have full branch coverage in our three core metropolitan markets of Indianapolis, Cincinnati and Louisville," said Archie Brown, chief executive officer of MainSource. "Our commitment to Louisville and the surrounding areas continues to be strong, and we are eager to welcome the customers and employees of First Capital into MainSource."
MainSource says, per the terms of the merger agreement, FCB shareholders will receive 0.9 shares of MainSource common stock and $7 in cash for each share of FCB common stock owned.
"MainSource Bank has demonstrated its community banking approach in the greater Louisville area for many years. We feel strongly that their product offering and commitment to customer service will allow for a seamless transition for our customers." said David Hale, CEO of FCB. "In addition, the added presence of MainSource in the area will create an even greater opportunity for the communities currently served by First Capital Bank."
The deal also remains subject to regulatory approvals. MainSource did not state whether any jobs would be affected by the acquisition.