Mr. Hoptry stated, "We are pleased with the solid growth in net interest margin, commercial loan balances, and fee income in the second quarter of 2008. Net loan losses remained in check and we believe the increase in our loan loss provision expense responsibly balanced the increase in non-performing loans. Overall, our results were very positive in this challenging environment."

NET INTEREST INCOME

Net interest income was $21.2 million for the second quarter of 2008, which represents an increase of 13.3% from the second quarter of 2007. Net interest margin, on a fully-taxable equivalent basis, was 3.92% for the second quarter of 2008, an increase of 28 basis points on a linked quarter basis. This increase was primarily due to the rate cuts that occurred during the fourth quarter of 2007 and the first quarter of 2008 which caused the Company's cost of funds to decrease at a faster rate than the yield on earning assets.

NON-INTEREST INCOME

The Company's non-interest income increased to $7.7 million for the second quarter of 2008 compared to $7.5 million for the same period in 2007. An increase in mortgage banking income of $466 thousand was the primary driver for this increase.

NON-INTEREST EXPENSE

The Company's non-interest expense was $17.3 million for the second quarter of 2008 compared to $17.1 million for the same period in 2007, which represents an increase of approximately 1% over the same period a year ago. The Company's efficiency ratio was 58.32% for the second quarter of 2008, which was a significant reduction compared to an efficiency ratio of 63.90% for the same period a year ago.

ASSET QUALITY

Non-performing assets were $29.9 million as of June 30, 2008, which was an increase of approximately $6.7 million on a linked-quarter basis. This increase was primarily due to two commercial credits that were classified as non-accrual in the second quarter of 2008. These two credits had previously been identified by the Company as problem credits and specific reserves had been allocated for the potential loss exposure. However, these credits experienced further deterioration during the second quarter and were downgraded to non-accrual status. Non-performing assets represented 1.18% of total assets as of June 30, 2008. Annualized net charge-offs for the second quarter of 2008 equaled 0.30% of average loans which is a slight increase from the first quarter's charge-off level of 0.26% of average loans. The Company's allowance for loan losses as a percent of total outstanding loans was 1.04% as of June 30, 2008 compared to 0.85% as of December 31, 2007 and 0.81% a year ago. Total loan loss provision expense was $3.5 million in the second quarter of 2008 compared to $899 thousand for the same period a year ago. The additional provision expense was primarily due to the increase in the level of non-performing loans, an increase in specific allocations related to certain commercial real estate loans which exhibited credit deterioration during the second quarter, and the continued weakening in the real estate markets.

                        MAINSOURCE FINANCIAL GROUP
                                (unaudited)
               (Dollars in thousands except per share data)



Income Statement
 Summary              Three months ended June 30  Six months ended June 30
                        ------------------------  ------------------------
                            2008         2007         2008         2007
                        -----------  -----------  -----------  -----------
    Interest Income     $    34,839  $    36,061  $    70,894  $    71,161
    Interest Expense         13,595       17,311       29,975       33,804
                        -----------  -----------  -----------  -----------
    Net Interest Income      21,244       18,750       40,919       37,357
    Provision for Loan
     Losses                   3,471          899        5,667        1,595
    Noninterest Income:
       Insurance commissions    562          512        1,074          931
       Trust and investment
        product fees            403          447          820          815
       Mortgage banking       1,215          749        2,182        1,364
       Service charges on
        deposit accounts      3,522        3,406        6,763        6,076
       Gain on sales of
        securities               87          190          429          229
       Interchange income       927          846        1,737        1,587
       Other                  1,030        1,317        2,584        2,556
                        -----------  -----------  -----------  -----------
         Total Noninterest
          Income              7,746        7,467       15,589       13,558
    Noninterest
     Expense:
       Employee               9,984        9,475       20,656       19,164
       Occupancy              1,382        1,312        2,885        2,738
       Equipment              1,499        1,525        2,980        2,983
       Intangible
        amortization            634          667        1,269        1,333
       Telecommunications       457          520          888        1,012
       Stationary,
        printing, and
        supplies                319          379          629          762
       Other                  3,001        3,219        5,780        5,975
                        -----------  -----------  -----------  -----------
         Total Noninterest
          Expense            17,276       17,097       35,087       33,967
    Earnings Before
     Income Taxes             8,243        8,221       15,754       15,353
    Provision for
     Income Taxes             2,069        2,218        3,329        3,935
                        -----------  -----------  -----------  -----------
    Net Income          $     6,174  $     6,003  $    12,425  $    11,418
                        ===========  ===========  ===========  ===========


                      Three months ended June 30  Six months ended June 30
Average Balance         ------------------------  ------------------------
 Sheet Data                 2008         2007         2008         2007
                        -----------  -----------  -----------  -----------
    Gross Loans         $ 1,693,710  $ 1,584,554  $ 1,695,932  $ 1,577,108
    Earning Assets        2,225,786    2,121,908    2,221,213    2,107,781
    Total Assets          2,522,944    2,414,111    2,519,026    2,401,734
    Noninterest Bearing
     Deposits               199,324      191,940      195,219      187,483
    Interest Bearing
     Deposits             1,701,958    1,625,573    1,689,615    1,626,453
    Total Interest
     Bearing Liabilities  2,024,516    1,938,576    2,027,950    1,933,940
    Shareholders'
     Equity                 274,083      259,610      271,572      256,519

                      Three months ended June 30  Six months ended June 30
                        ------------------------  ------------------------
Per Share Data              2008         2007         2008         2007
                        -----------  -----------  -----------  -----------
    Diluted Earnings
     Per Share          $      0.33  $      0.32  $      0.67  $      0.61
    Cash Dividends Per
     Share                    0.145        0.140        0.285        0.275
    Market Value - High       17.59        17.50        17.59        17.53
    Market Value - Low        13.45        16.15        12.15        15.42
    Average Outstanding
     Shares (diluted)    18,577,832   18,750,172   18,575,515   18,753,555


                      Three months ended June 30  Six months ended June 30
                        ------------------------  ------------------------
Key Ratios                 2008         2007         2008         2007
                        -----------  -----------  -----------  -----------
    Return on Average
     Assets                    0.98%        0.98%        0.99%        0.96%
    Return on Average
     Equity                    9.06%        9.14%        9.20%        8.97%
    Net Interest Margin        3.92%        3.65%        3.78%        3.68%
    Efficiency Ratio          58.32%       63.90%       60.79%       65.33%
    Net Overhead to
     Average Assets            1.52%        1.60%        1.56%        1.71%


Balance Sheet Highlights
As of June 30              2008         2007
                        -----------  -----------
    Total Loans
     (Excluding Loans
     Held for Sale)     $ 1,700,532  $ 1,612,204
    Allowance for Loan
     Losses                  17,611       13,112
    Total Securities        500,293      489,805
    Goodwill and
     Intangible Assets      134,055      136,657
    Total Assets          2,538,736    2,452,571
    Noninterest Bearing
     Deposits               218,756      203,638
    Interest Bearing
     Deposits (excluding
     Public Funds)        1,480,818    1,429,836
    Public Fund Deposits    221,227      206,738
    Repurchase Agreements    33,586       43,086
    Other Borrowings        293,121      290,599
    Shareholders'
     Equity                 268,075      252,626

Other Balance Sheet Data
As of June 30              2008         2007
                        -----------  -----------
    Book Value Per
     Share              $     14.43  $     13.49
    Loan Loss Reserve
     to Loans                  1.04%        0.81%
    Nonperforming
     Assets to Total
     Assets                    1.18%        0.70%
    Outstanding Shares   18,573,885   18,732,395

Asset Quality
As of June 30              2008         2007
                        -----------  -----------
    Loans Past Due 90
     Days or More and
     Still Accruing     $     1,977  $     1,425
    Non-accrual Loans        24,895       14,432
    Other Real Estate
     Owned                    3,053        1,312
                        -----------  -----------
    Total Nonperforming
     Assets             $    29,925  $    17,169

    Net Charge-offs-YTD $     2,387  $     1,275
    Net Charge-offs as
     a % of average loans      0.28%        0.16%

MainSource Financial Group, Inc. is a community-focused, financial services holding company with assets exceeding $2.5 billion. The Company operates 77 banking offices through its three banking subsidiaries, MainSource Bank, Greensburg, Indiana, MainSource Bank of Illinois, Kankakee, Illinois, and MainSource Bank-Ohio, Troy, Ohio. The Company's non-banking subsidiaries, MainSource Insurance, LLC and MainSource Title, LLC, provide related financial services.

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. Actual results and experience could differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. 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; changes in the quality or composition of the Company's loan and investment portfolios; the Company's ability to integrate acquisitions; the impact of our continuing acquisition strategy; and other factors, including various "risk factors" as set forth in our most recent Annual Report on Form 10-K and in other reports we file from time to time with the Securities and Exchange Commission. These reports are available publicly on the SEC website, www.sec.gov, and on the Company's website, www.mainsourcefinancial.com.