Greensburg-based MainSource Financial Group reported record annual earnings of $29 million, or $1.39 per common share, for 2014. That’s up from $26.3 million, or $1.26 per common share, in 2013.
Driving the increase in net income were gains in net interest income and a reduction in loan loss provision expense, the company reported.
“Excluding acquisition-related expenses, our 2014 earnings were approximately $31 million. This represents the highest level of earnings in the company’s history,” said Archie M. Brown Jr., president and chief executive officer.
MainSource closed Oct. 17 on the purchase of MBT Bancorp of West Harrison, Indiana, acquiring $185 million in loans and $184 million in deposits.
MBT was the holding company for The Merchants Bank and Trust Company, which operated six branches spanning from Dearborn County to the greater Cincinnati communities of Harrison, Western Hills and Hyde Park.
MainSource also reported net income for the fourth quarter of $6.6 million, or 30 cents per common share, compared to net income of $7.4 million, or 36 cents per common share, in the fourth quarter of 2013.
The company incurred a $3.1 million pretax charge ($2.2 million on an after-tax basis), related to the acquisition of MBT Bancorp.
“Increases in earning assets from the merger led to a 7 percent increase in net interest income. Additionally, net loans, excluding loans acquired in the merger, grew at a 4 percent annualized level, demonstrating our continued progress in expanding commercial customer relationships,” Brown said.
The company also announced a first quarter common dividend of 13 cents per share, payable March 16 to common shareholders of record as of March 6.
The increase from 11 cents per share reflects an 18 percent gain in the quarterly common dividend.
“This is the fifth increase in two years and represents a 2.7 percent yield. This increase indicates our confidence in the current performance of the company as well as our general outlook,” Brown said.
MainSource has local offices in Columbus, Hope, Edinburgh, North Vernon and Westport, in addition to locations inside retail stores and ATM locations.