GREENSBURG — MainSource Financial Group announced net income of $6.1 million, or 27 cents per common share, for the second quarter of 2016.
This compares to net income of $9.7 million, or 44 cents per common share, in the second quarter of 2015.
During the second quarter of 2016, the company completed its acquisition of Cheviot Financial Corp. and incurred a $6.4 million charge related to severance payments, investment banker fees and other merger-related items, the company reported.
Also during the second quarter of 2016, the company realized $104,000 in gains from the sale of investment securities. The net effect of these items lowered the company’s net income by $4.3 million, company officials said. Excluding those items, net income would have been $10.4 million, or 45 cents per common share, for the second quarter of 2016.
Archie M. Brown Jr., president and chief executive officer, said he was pleased with the company’s second quarter results. Core annualized loan growth, excluding loans added in the Cheviot acquisition, was 7 percent for the quarter, he said. Noninterest income for the quarter increased 7 percent from the second quarter of the prior year, he said.
“We continue to be pleased with asset quality,” Brown said. “Nonperforming assets as a percentage of total assets (including troubled debt restructurings) were .58 percent at the end of the quarter and we realized net recoveries for the period. Overall, our asset quality remains excellent.”
With the acquisition of Cheviot, MainSource now has 14 banking offices in Hamilton County, Ohio (Cincinnati), and ranks seventh in deposit market share, Brown said.
Total assets were $4 billion on June 30, which represents a $755 million increase from a year ago. The increase was primarily related to acquiring Cheviot, the acquisition of Old National Bank branches in the third quarter of 2015 ($97 million) and organic loan growth.
MainSource has local offices in Columbus, Hope, Edinburgh, North Vernon and Westport.