Profile: MainSource Financial Group Inc (MSFG.OQ)
MainSource Financial Group, Inc. (MainSource) is a bank holding company. As of December 31, 2011, the Company operated one banking subsidiary: MainSource Bank (the Bank), an state chartered bank. Through its non-bank affiliates, the Company provides services incidental to the business of banking. As of December 31, 2011, the Company operated 80 branch banking offices in Indiana, Illinois, Ohio and Kentucky. As of December 31, 2011, the Company had consolidated assets of $2,754,180 and consolidated deposits of $2,159,900. Through the Bank, the Company offers a range of financial services, including accepting time and transaction deposits; making consumer, commercial, agribusiness and real estate mortgage loans; renting safe deposit facilities; providing personal and corporate trust services, and providing other corporate services, such as letters of credit and repurchase agreements. In December 2012, the Company purchased American Founders Bank branch in Shelbyville, Kentucky.
The lending activities of the Banks are separated into categories, such as commercial, commercial real estate, residential and consumer. Commercial loans include secured and unsecured loans, including real estate loans, to individuals and companies and to governmental units within the market area of the Bank. Agricultural loans are generated in the Bank’s markets. Most of the loans are real estate loans on farm properties. Loans are also made for agricultural production and such loans are reviewed annually. The Bank generates residential mortgages for its own portfolio. The Bank generates residential mortgages for its own portfolio.
The Company’s investment securities portfolio primarily comprises state and municipal bonds; United States government sponsored entity's mortgage-backed securities and collateralized mortgage obligations, and corporate securities. The Company has classified its investment portfolio as available for sale. Funds invested in the investment portfolio generally represent funds not immediately required to meet loan demand. Income related to the Company’s investment portfolio accounted for 17% of total revenues during the year ended December 31, 2011.
Sources of Funds
The primary sources of funds for the Bank include deposits generated in local market areas. The Banks market various programs for demand, savings and time deposit accounts. These programs include interest and non-interest bearing demand and individual retirement accounts. Average total deposits were 87.7% of total average earning assets during 2011. Total interest-bearing deposits averaged 87% of average total deposits during 2011. Another source of funding is the Federal Home Loan Bank (FHLB).
MainSource Financial Group Inc
201 N BROADWAY,
PO Box 87
GREENSBURG IN 47240