EVANSVILLE, Ind., Sept. 10, 2010 (GLOBE NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) announced the closing of the sale of four branches of its wholly-owned bank subsidiary, Integra Bank N.A. ("Integra Bank"), to Citizens Deposit Bank and Trust ("Citizens"), a wholly-owned subsidiary of Premier Financial Bancorp, Inc. ("Premier"). The four banking offices are located in Maysville and Mt. Olivet, Kentucky and Ripley and Aberdeen, Ohio. In addition, the transaction included the sale of a group of commercial and commercial real estate loans to Citizens.
Citizens assumed approximately $73.4 million of deposit liabilities related to the four branches and acquired $17.8 million of branch related loans, as well as $34.0 million of additional commercial real estate loans and $10.0 million of other commercial loans selected by Citizens that were originated in other Integra offices.
Citizens paid a net deposit premium of 3.38% for the deposit liabilities it assumed. The deposit premium paid was approximately $2.4 million. The banking office premises were sold at their book values.
The transaction increased Integra Bank's tier 1 and total risk based capital ratios by approximately 50 basis points, while increasing its tier 1 leverage ratio by approximately 25 basis points. The transaction also increased the holding company's tangible common equity to tangible assets ratio by approximately 10 basis points.
Michael J. Alley, Chairman and Chief Executive Officer of Integra Bank Corporation commented, "We have enjoyed working with the outstanding team at Citizens to seamlessly transition our customers in these four offices to their organization. This represents the successful closing of our fourth branch divestiture during 2010 as originally planned. We anticipate one additional branch sale to close in the third quarter as previously announced. These transactions 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 June 30, 2010, Integra Bank has $3.0 billion in total assets. Integra operates 55 banking centers and 104 ATMs at locations in Indiana, Kentucky and Illinois. 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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