By Kirk Johannesen
For The Daily Journal
Two Franklin bank branches will close as part of a merger between two financial institutions that recently was finalized.
Cincinnati-based First Financial Bancorp and Greensburg-based MainSource Financial Group Inc. officially merged Sunday. The banks previously announced in July their plans for the merger, valued at $1 billion.
For customers, that will mean they will soon be banking with First Financial Bank after operating systems are converted over Memorial Day weekend. In Franklin, the MainSource branch at 597 Banta St. and the First Financial branch at 1073 W. Jefferson St. will close while a new First Financial branch is built off U.S. 31.
MainSource banking centers will operate under the name MainSource Bank until after the Memorial Day weekend, when all banking centers, client relationships and accounts will be converted to First Financial Bank, according to a news release. All MainSource banking centers will be closed May 26 and will reopen May 29 under the First Financial brand, the news release stated.
Prior to the conversion, customers will get information about the conversion, changes to their debit cards and passwords for online banking.
The conversion will be one of the final steps in the merger process for the banks. Previously, MainSource had to find a buyer for five of its branches as part of an agreement with the U.S. Department of Justice, because of federal rules about monopolies and competition, which sets limits on the concentration of deposits by one banking company in one market. Jasper-based German American Bank agreed Feb. 13 to buy five MainSource branches.
The banks also have been closing branches and eliminating jobs as part of the consolidation. They said in July that 45 to 50 branches would close and about 400 positions would be eliminated because of overlap in the markets. Through attrition, people leaving for other jobs and eliminations, the expected staffing level should be reached by the fourth quarter, officials previously said.
They already have closed 15 branches since late last year, and have identified another 26 for closure, mainly because of overlap in the markets. The merged bank has four branches in Columbus, one in Hope and one in the Taylorsville/Edinburgh area.
In July, officials that combining forces made sense for their two companies’ needs and futures.
MainSource sought a greater presence in metro markets, and the merger accelerates that process five to 10 years. As a merged, larger bank, First Financial can better absorb costs related to steeper financial and regulatory impact that the bank was anticipating because of its growth, they said.
“We are excited to combine two community-focused financial institutions who are both significantly involved in the markets they serve,” Archie M. Brown Jr., president and CEO of the newly combined First Financial Bank, said in a news release. Brown previously served as MainSource’s chairman, president and CEO.
“We see this merger as a significant milestone in our company’s history that positions us for continued growth and success,” Claude E. Davis, First Financial’s executive chairman, said in a news release. Davis was previously First Financial’s president and CEO.
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MainSource banking centers, the client relationships and all accounts will convert to First Financial Bank’s operating system May 25 to 28.
All MainSource banking centers will be closed May 26 and will reopen May 29 under the First Financial brand.
MainSource clients will be notified about the conversion and what it means before it occurs.
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