720002--3/10/2010--MAINSOURCE_FINANCIAL

related topics

{acquisition, growth, future}

{stock, price, share}

{condition, economic, financial}

{loan, real, estate}

{loss, insurance, financial}

{competitive, industry, competition}

{provision, law, control}

{tax, income, asset}

{personnel, key, retain}

{product, liability, claim}

{regulation, government, change}

{regulation, change, law}

{stock, price, operating}

Risks Related to the Company's Business Difficult conditions in the capital markets and the economy generally may materially adversely affect our business and results of operations. There can be no assurance that actions of the U.S. government, Federal Reserve and other governmental and regulatory bodies for the purpose of stabilizing the financial markets will achieve the intended effect. Like most banking organizations, a significant portion of our assets consists of loans, which if not repaid could result in losses to the Company. Our allowance for loan losses may not be sufficient to cover actual loan losses, which could adversely affect our earnings. If we foreclose on collateral property, we may be subject to the increased costs associated with ownership of real property, resulting in reduced revenues and earnings. Significant interest rate volatility could reduce our profitability. We may be required to pay significantly higher Federal Deposit Insurance Corporation (FDIC) premiums in the future. Future growth or operating results may require the Company to raise additional capital but that capital may not be available or it may be dilutive. We rely heavily on our management and other key personnel, and the loss of any of them may adversely affect our operations. The geographic concentration of our markets makes our business highly susceptible to local economic conditions. If we do not adjust to rapid changes in the financial services industry, our financial performance may suffer. Our historical growth and financial performance trends may not continue if our acquisition strategy is not successful. Acquisitions entail risks which could negatively affect our operations. Unanticipated costs related to our acquisitions could reduce MainSource's future earnings per share. MainSource may be unable to successfully integrate the operations of the banks it has acquired and may acquire in the future and retain employees of such banks. Risks Relating to the Banking Industry Changes in governmental regulation and legislation could limit our future performance and growth. Changes in regulation or oversight may have a material adverse impact on our operations. The Company may be subject to future goodwill impairment charges Risks Related to the Company's Stock We may not be able to pay dividends in the future in accordance with past practice. The price of the Company's common stock may be volatile, which may result in losses for investors. The Company's participation in Treasury's Capital Purchase Program (CPP) may adversely affect the value of its common stock and the rights of its common stockholders. The Company's charter documents and federal regulations may inhibit a takeover, prevent a transaction that may favor or otherwise limit the Company's growth opportunities, which could cause the market price of the Company's common stock to decline.

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720002--3/10/2010--MAINSOURCE_FINANCIAL_GROUP