EVANSVILLE, Ind., July 22, 2010 (GLOBE NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) announced the closing of the sale of five branches of its wholly-owned bank subsidiary, Integra Bank N.A. ("Integra Bank"), to First Security Bank ("First Security"), the wholly-owned subsidiary of First Security, Inc. The five banking offices are located in Bowling Green and Franklin, Kentucky. In addition, the transaction included the sale of a group of commercial, commercial real estate and indirect consumer loans to First Security. Both Integra and First Security anticipate that the closing date for the sale of three additional branches located in Paoli, Mitchell and Bedford, Indiana and additional commercial and consumer loans to First Security will occur in September 2010.
First Security assumed approximately $115.0 million of deposit liabilities, as well as $41.8 million of branch loans and $6.3 million of additional commercial, $24.2 million of additional commercial real estate and $33.0 million of additional indirect consumer loans selected by First Security that were originated in other Integra Bank offices.
First Security paid a 5.0% net deposit premium for the deposit liabilities it assumed. The deposit premium paid was approximately $5.8 million. Three of the five banking office premises were sold at their book values, while the leases for the other two were assigned to First Security.
The transaction increased Integra Bank's tier 1 and total risk based capital ratios by approximately 80 basis points, while increasing its tier 1 leverage ratio by approximately 42 basis points. The transactions also increased the holding company's tangible common equity to tangible assets ratio by approximately 21 basis points.
Michael J. Alley, Chairman and Chief Executive Officer of Integra Bank Corporation, commented, "We are pleased to smoothly transition our Bowling Green and Franklin customers to First Security in this first phase of our agreement with them. We expect to complete the second phase comprised of the three Indiana branches and loans in September. This transaction along with the two similar transactions we completed during the second quarter are key to our strategy to strengthen our capital position as we narrow our geographic operating footprint."
Forward-Looking Statements
This press release contains statements about the sale of additional branch offices and 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 59 banking centers and 107 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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