EXHIBIT 99.1

                                  NEWS RELEASE

BW Account Number 1079001
DATE:           December 30, 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 Trust Preferred Securities Transactions


Greensburg, Indiana (NASDAQ: MSFG) - James L. Saner, Sr., President and Chief
Executive Officer of MainSource Financial Group, announced today that the
Company issued $8,000,000 of variable rate Trust Preferred Securities on
December 19, 2002. The rate on these securities is tied to the 3-month LIBOR
rate and will adjust quarterly. The current rate is 4.66%. These securities
mature in 30 years and can be called anytime after 5 years. Simultaneously, the
Company is redeeming a portion of their current outstanding fixed rate Trust
Preferred Securities. These securities, which trade under the symbol MSFGP,
carry a fixed rate of 8.75%. The amount redeemed will be $8,425,000 with a
redemption date of February 11, 2003. This represents approximately 38% of the
current outstanding issue.

Assuming a relatively stable interest rate environment in 2003, the Company
expects to save approximately $300,000 on a pre-tax basis in interest expense.
However, the interest savings in 2003 will be off set by the write-off of the
deferred acquisition costs related to the redeemed securities. Therefore, the
impact to 2003 earnings is negligible. The Company expects to realize interest
savings in future years based on management's interest rate forecast.

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