The proposed merger between Greensburg-based MainSource Financial Group Inc. (Nasdaq: MSFG) and Louisville-based FCB Bancorp Inc. has been approved by the Federal Reserve Bank and the Kentucky Department of Financial Institutions. FCB's shareholders must still approve the nearly $57 million deal.

MainSource says the approval from the FRB and KDFI "represent all of the banking approvals which are required to consummate the proposed merger." In addition to FCB shareholder approval, the deal also remains subject to customary closing conditions.

The deal has already received approval from the boards of directors for both companies. The merger is expected to close in the second quarter of 2017.

FCB is the parent of The First Capital Bank of Kentucky. When the merger was first announced in December, MainSource said First Capital Bank will initially operate as a subsidiary of MainSource before merging with MainSource Bank.