EVANSVILLE, Ind., June 4, 2010 (GLOBE NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) announced today that the sale of its Milan, Osgood and Versailles, Indiana branches from its wholly-owned bank subsidiary, Integra Bank N.A. ("Integra"), to United Community Bank ("United"), the wholly-owned subsidiary of United Community Bancorp, has successfully closed. In addition to the three banking offices, the sale also includes a group of commercial and residential mortgage loans from Integra.
United assumed approximately $53.3 million of deposit liabilities related to the three branches, as well as $34.9 million of branch loans and $10.7 million of additional commercial and residential mortgage loans selected by United that were originated in other Integra offices.
United paid a 4.50% deposit premium for the deposit liabilities it assumed, with the exception of municipal deposits that were issued after the date of the agreement which were acquired at par. The deposit premium paid was approximately $2.4 million. All of the loans were purchased at par value representing their outstanding principal balance. The three banking office premises were sold at their fair market value, resulting in a gain on sale of $0.5 million, while all other fixed assets were sold at their book values.
As expected, the transaction increased Integra Bank's tier 1 and total risk based capital ratios by approximately 32 basis points, while increasing its tier 1 leverage ratio by approximately 22 basis points. The transactions also increased the Company's tangible common equity to tangible assets ratio by approximately 16 basis points.
Michael J. Alley, Chairman and Chief Executive Officer of Integra commented, "We are pleased to have worked with the team at United Community Bank to complete this transaction within the timeline established at the time of the signing of the definitive agreement. The timely execution of this transaction provides closure to one of the five branch sale transactions announced during 2010 and is expected to be followed by the closing of a second transaction later in June. These sales are an important part of the multi-step strategy we announced late last year to improve our capital and liquidity positions, reduce our credit risk and accelerate our return to profitability. We expect continued execution of the strategy we set forth and are transitioning our efforts to another important component of our plan, that being to raise new capital," Alley added.
Forward-Looking Statements
This press release contains statements about the sale of additional branch offices the impact of those sales and other strategies on both Integra Bank and Integra Bank Corporation. These statements are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions. Forward-looking statements are not guarantees of future performance. These statements are based upon current expectations, forecasts and assumptions that are subject to risks, uncertainties and other factors that could cause actual outcomes and results to differ materially from those indicated by these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the satisfaction of customary closing conditions set forth in the various agreements between the parties, including the receipt of regulatory approval for in-process branch sales, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in Integra Bank Corporation's respective filings with the Securities and Exchange Commission.
About Integra Bank Corporation
Headquartered in Evansville, Indiana, Integra Bank Corporation is the parent of Integra Bank N.A. As of March 31, 2010, Integra Bank has $2.9 billion in total assets and currently operates 66 banking centers and 115 ATMs at locations in Indiana, Kentucky, Illinois and Ohio. Integra Bank Corporation's common stock is listed on the Nasdaq Global Market under the symbol IBNK. Additional information may be found at www.integrabank.com.
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