EXHIBIT 99.1

                                  NEWS RELEASE

BW Account Number 1079001
DATE:           December 23, 2002 2:00pm E.S.T.
CONTACT:        James L. Saner, Sr., President and CEO
                MainSource Financial Group 812-663-0157


                    MAINSOURCE FINANCIAL GROUP-NASDAQ, MSFG -
                    Announces Effect of Adoption of FASB 147

Greensburg, Indiana (NASDAQ: MSFG) - James L. Saner, Sr., President and Chief
Executive Officer of MainSource Financial Group, announced today that with the
adoption of the new accounting standard FASB Statement No. 147, the Company will
recognize an additional $550,000 of net income in the fourth quarter of 2002.
These additional earnings equate to $.085 on a per share basis.

The accounting standard, which applies to certain branch acquisitions, became
effective October 1, 2002 and is applied retroactively to the beginning of 2002.
Under the standard, previously unidentified intangible assets are reclassified
to goodwill if certain criteria are met. The amounts reclassified to goodwill
are not amortized, but remain on the balance sheet and are periodically tested
for impairment.

MainSource Financial Group, Inc., headquartered in Greensburg, Indiana, is
listed on the Nasdaq Stock Market (trading symbol: MSFG) and is a
community-focused, multi-bank, financial services oriented holding company with
assets of approximately $1.2 billion. Through its three banking subsidiaries,
MainSource Bank, Greensburg, Indiana; Regional Bank, New Albany, Indiana; and
Capstone Bank, Watseka, Illinois, it operates 42 offices in 18 Indiana counties
and seven offices in three Illinois counties. Through its insurance subsidiary,
MainSource Insurance, it operates five offices in Indiana as well as one in
Owensboro, Kentucky.

Forward-Looking Statements

Except for historical information contained herein, the discussion in this press
release may include certain forward-looking statements based upon management
expectations. Factors which could cause future results to differ from these
expectations include the following: general economic conditions; legislative and
regulatory initiatives; monetary and fiscal policies of the federal government;
deposit flows; the costs of funds; general market rates of interest; interest
rates on competing investments; demand for loan products; demand for financial
services; changes in accounting policies or guidelines; and changes in the
quality or composition of the Company's loan and investment portfolios.

The forward-looking statements included in the press release relating to certain
matters involve risks and uncertainties, including anticipated financial
performance, business prospects, and other similar matters, which reflect
management's best judgment based on factors currently known. Actual results and
experience could differ materially from the anticipated results or other
expectations expressed in the Company's forward-looking statements as a result
of a number of factors, including but not limited to, those discussed in the
press release.

                                      *****

  MainSource Financial Group, Inc., 201 N. Broadway, Greensburg, Indiana 47240