EVANSVILLE, Ind., June 11, 2010 (GLOBE NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) announced today that the sale of its Leitchfield and Hardinsburg, Kentucky branches from its wholly-owned bank subsidiary, Integra Bank N.A. ("Integra"), to The Cecilian Bank ("Cecilian"), the wholly-owned subsidiary of First Cecilian Bancorp, Inc., has successfully closed. In addition to the two banking offices, the sale also includes a group of commercial and residential mortgage loans from Integra.
Cecilian assumed approximately $45.0 million of deposit liabilities related to the two branches, as well as $12.7 million of branch loans and $28.2 million of additional commercial real estate loans selected by Cecilian that were originated in other Integra offices.
Cecilian paid a 4.40% deposit premium for the deposit liabilities it assumed, while the commercial real estate balancing loans were acquired at a discount of approximately 1% from their outstanding principal balance. The deposit premium paid was approximately $2.0 million. The two banking office premises were sold at their book values.
As expected, the transaction increased Integra Bank's tier 1 and total risk based capital ratios by approximately 27 basis points, while increasing its tier 1 leverage ratio by approximately 16 basis points. The transactions also increased the Company's tangible common equity to tangible assets ratio by approximately 8 basis points.
Michael J. Alley, Chairman and Chief Executive Officer of Integra commented, "We are pleased to have worked with the team at Cecilian to complete this transaction within the timeline we originally established. The timely execution of this transaction and the United Community Bank transaction we announced last week provides closure to two of the five branch sale transactions we have announced in 2010 and is expected to be followed by the closing of the final three transactions during the third quarter. We are actively completing execution of the remaining three branch sale transactions and are pursuing several other opportunities to reduce our non-performing assets and strengthen our capital base, all while maintaining a solid liquidity position," 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 67 banking centers and 116 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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