720002--3/17/2008--MAINSOURCE_FINANCIAL

related topics

{acquisition, growth, future}

{condition, economic, financial}

{loan, real, estate}

{loss, insurance, financial}

{personnel, key, retain}

{regulation, government, change}

{product, market, service}

{competitive, industry, competition}

Like most banking organizations, our business is highly susceptible to credit risk. Our allowance for loan losses may not be sufficient to cover actual loan losses, which could adversely affect our earnings. We rely heavily on our management and other key personnel, and the loss of any of them may adversely affect our operations. Significant interest rate volatility could reduce our profitability. 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 acquisition strategy 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. Changes in governmental regulation and legislation could limit our future performance and growth. Our strategy to minimize Indiana state taxes on our investment portfolio may be unsuccessful.

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720002--3/17/2008--MAINSOURCE_FINANCIAL_GROUP