* Integration of Prairie Financial Corporation Successfully Completed Resulting in Improved Earning Asset Mix -- Commercial Loans Percentage of Earning Assets Increases From 42 Percent to 50 Percent * Strong Fee Growth -- Deposit Service Charges Increase 28 Percent From First Quarter of 2007 -- Debit Card Interchange Fees Increase 19 Percent * Net Interest Income Increases $3.2 Million -- Margin is 3.40 Percent * Credit Quality Stable -- Net Charge-Offs are 22 Basis Points * Commercial Loan Growth Continues -- Up $45 Million or 17.8 Percent Annualized From First Quarter excluding Chicago
EVANSVILLE, Ind., July 17, 2007 (PRIME NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) today reported net income for the second quarter of 2007 of $8.3 million, an increase of $1.0 million or 13.3% over first quarter 2007 results. The Company acquired Prairie Financial Corporation on April 9, 2007, and issued 3.1 million shares of Integra common stock in that transaction. Diluted earnings per share were $0.41 for both the first and second quarters of 2007. Returns on assets and equity were 1.04% and 10.71% for the second quarter of 2007, as compared to 1.12% and 12.62% for the first quarter of 2007.
Second quarter 2007 results included increases in net-interest income of $3.2 million and non-interest income of $0.7 million, and a decrease in the provision for loan losses of $0.3 million, offset by an increase in non-interest expense of $1.7 million and an increase in tax expense of $1.6 million.
"We are pleased with the successful integration of the former Prairie Financial Corporation during the second quarter and the completion of our new banking center in Union, Kentucky," stated Mike Vea, Chairman, President and CEO. "The Prairie acquisition immediately improved our earning asset mix and is consistent with our goal of entering higher growth markets. We look forward to introducing our retail strategies in Chicago and building upon the strong commercial real estate lending niche that currently exists. The July opening of a second banking center in Northern Kentucky will help us build on the success we have had with our Florence branch, which opened in 2005, as well as further accelerate our commercial and business banking efforts in the greater Cincinnati region."
The results for the first quarter included a gain on the sale of mortgage servicing rights of $0.6 million and gains on called securities of $0.2 million, offset by severance-related expenses of $0.3 million and non-routine legal and professional expenses of $0.4 million incurred in connection with collection activities. The first quarter also included recognition of an expected income tax refund of $0.9 million plus accrued interest of $0.2 million.
Integration of Prairie Financial Corporation
The Company acquired Prairie Financial Corporation on April 9, 2007. Prairie's banking subsidiary, Prairie Bank & Trust Co., merged into Integra's banking subsidiary, Integra Bank N.A., as part of the transaction. The integration of the former Prairie offices into the Company's operations was completed during the second quarter.
The Company issued 3.1 million shares of common stock and paid $34.8 million cash in the transaction. It financed the cash portion of the merger consideration with the proceeds of a $20 million private offering of floating rate trust preferred securities and a $20 million five-year term loan extended as part of a new $35 million credit facility established on April 1, 2007.
The integration process included centralization of backroom support areas, including data processing, as well as early stage implementation of the Company's retail banking strategies in the Chicago market.
Second quarter 2007 results include $0.2 million of one-time acquisition related expenses.
Commercial Loan Growth Continues
Higher yielding commercial loan average balances were 49.7% of earning assets for the second quarter of 2007, compared to 42.3% for the first quarter of 2007. Commercial loan average balances, exclusive of the Chicago market, increased $45.4 million during the second quarter, as compared to the preceding quarter, a 17.8% annualized growth rate. This growth came in the areas of commercial real estate, Cincinnati commercial, business banking, and agricultural lending.
Consumer loan average balances, exclusive of the Chicago market, decreased $6.7 million, or 6.4% annualized, and included a $7.3 million decline in indirect consumer loans, which have not been originated since December 2006. Residential mortgage loan balances, exclusive of the Chicago market, declined $14.2 million, or 16.6% annualized. Both the indirect and residential mortgage reductions were in line with the company's strategy to improve its earning asset mix.
Net Interest Margin and Net Interest Income
The net interest margin was 3.40% for the second quarter of 2007, compared to 3.48% for the first quarter of 2007, while net interest income increased $3.2 million.
The yield on earning assets increased by 25 basis points to 7.01%. The improved yield was driven by the improved asset mix, including the yields on commercial loans acquired in the Prairie acquisition, higher loan fees, and higher yields on commercial loans existing at Integra prior to the Prairie acquisition.
The decrease in the net interest margin is attributed mainly to a 34 basis point increase in the cost of interest bearing liabilities to 4.02%, coupled with lower than expected growth of non-interest bearing and lower cost interest bearing checking account balances. Funding costs increased as a result of replacing $102.5 million of fixed rate long-term debt with a coupon of 2.64% that matured in March with other funding sources at market rates, which resulted in a 12 basis point decline in the margin. In addition, time deposit rates increased 18 basis points. Finally, additional interest costs were incurred in connection with the cash portion of the Prairie acquisition. A major component of the increase in time deposit rates was the pricing of time deposits acquired in the Prairie acquisition, which should decline as the Company implements funding strategies to replace those deposits with lower costing sources from other regions within its footprint.
Non-Interest Income
Second quarter 2007 non-interest income was $9.9 million, an increase of $0.7 million, or 7.8%, from the first quarter of 2007. Deposit service charges increased $1.2 million, or 28.2% and debit card interchange fees increased $0.2 million, or 18.9%. Chicago customers contributed $0.3 million of the increase in deposit service charges. The first quarter of 2007 included several non-routine gains, including a gain on the sale of Integra's mortgage servicing rights portfolio of $0.6 million, gains on securities which were called of $0.2 million, and $0.2 million of interest income accrued on expected tax refunds.
Non-Interest Expense
Second quarter 2007 non-interest expense was $21.9 million, a $1.7 million or 8.4% increase from the first quarter of 2007. This included higher personnel expenses of $0.9 million, higher occupancy expense of $0.3 million and higher intangible asset amortization of $0.2 million, offset by lower professional fees of $0.2 million. It also included $0.2 million of one-time acquisition related expenses. Non-interest expense for the new Chicago region in the second quarter was $1.4 million.
Credit Quality
The provision for loan losses was $0.5 million for the second quarter of 2007, compared to $0.7 million for the first quarter. Net charge-offs totaled $1.2 million, resulting in a net charge-off ratio of 0.22% for the quarter, compared to $0.7 million or 0.17% for the quarter ended March 31, 2007. Net charge-offs exceeded the provision by $0.7 million. Specific loan reserves declined by $0.9 million due to the charge-off of a $0.5 million fully reserved credit and full payoffs of two credits carrying specific reserves.
The allowance for loan losses at June 30, 2007 was 192% of non-performing and 1.19% of total loans, compared to 239% and 1.18% at March 31, 2007. The ratio of non-performing loans to total loans at June 30, 2007 was 0.62% compared to 0.50% at March 31, 2007. The increase in non-performing loans was due entirely to non-performing loans acquired as part of the Prairie acquisition.
Income Taxes
The effective tax rate for the second quarter of 2007 was 25.4%, compared to the 14.9% for the first quarter of 2007. Income tax expense for the first quarter included the accrual of an expected tax refund of $0.9 million. The effective tax rate for the remainder of 2007 is expected to approximate that of the second quarter.
Capital
Integra's capital ratios all remain strong and within the regulatory requirements for being well capitalized as well as Integra's internal policy guidelines.
Dividend and Share Repurchase Plan
On June 20, 2007, the Company announced an increase in the regular quarterly cash dividend to $0.18 per share, from $0.17 per share, an increase of 5.8%. The increased dividend was paid on July 6, 2007 to shareholders of record on July 2, 2007.
The Company also announced that it had renewed and increased its common stock repurchase program. Integra may purchase approximately an additional 515,000 shares, or a maximum aggregate purchase amount of $12.5 million, through June 30, 2008. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, and other market conditions.
Conference Call
Integra executive management will hold a conference call to discuss the contents of this news release, business highlights and its financial outlook, on, Tuesday, July 17, 2007, at 8:00 a.m. CDT. The telephone number for the conference call is (800) 559-2403. The conference call will also be available by webcast at http://www.integrabank.com/webcasts, as will the accompanying presentation slides.
About Integra
Headquartered in Evansville, Indiana, Integra Bank Corporation is the parent of Integra Bank N.A. As of June 30, 2007, Integra has $3.2 billion in total assets and operates 79 banking centers and 134 ATMs at locations in Indiana, Kentucky, Illinois and Ohio. Moody's Investors Service has assigned an investment grade rating of A3 for Integra Bank's long-term deposits. Integra Bank Corporation's Corporate Governance Quotient (CGQ) rating as of July 1, 2007, has IBNK outperforming 93.3% of the companies in the Russell 3000 Index and 93.3% of the companies in the banking group. This rating is updated monthly by Institutional Shareholder Services and measures public companies' corporate governance performance to a set of corporate governance factors that reflects the current regulatory environment. Integra Bank Corporation's common stock is listed on the Nasdaq Global Market under the symbol IBNK. Additional information may be found at Integra's web site, www.integrabank.com.
The Integra Bank Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3858
Safe Harbor
Certain statements made in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, the words "may," "will," "should," "would," "anticipate," "expect," "plan," "believe," "intend," and similar expressions identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. Such factors include: risks relating to changes in interest rates; risks of default on and concentration of loans within our portfolio; the possible insufficiency of our allowance for loan losses, regional economic conditions; competition; governmental regulation and supervision; failure or circumvention of our internal controls; reliance on Integra Bank to fund dividends to our shareholders; disruption of business or dilution of shareholder value as a result of mergers or acquisitions; our ability to retain key personnel; failure or disruption of our information systems; technological change; and other factors described in our periodic reports filed with the SEC. We undertake no obligation to revise or update these risks, uncertainties and other factors except as may be set forth in our periodic reports.
Summary Operating Results Data
Here is a summary of Integra's second quarter 2007 operating results:
Diluted net income per share of $0.41 for second quarter 2007
-- Compared with $0.41 for first quarter 2007
-- Compared with $0.42 for second quarter 2006
Return on assets of 1.04% for second quarter 2007
-- Compared with 1.12% for first quarter 2007
-- Compared with 1.09% for second quarter 2006
Return on equity of 10.71% for second quarter 2007
-- Compared with 12.62% for first quarter 2007
-- Compared with 13.24% for second quarter 2006
Net interest margin of 3.40% for second quarter 2007
-- Compared with 3.48% for first quarter 2007
-- Compared with 3.42% for second quarter 2006
Allowance for loan losses of $26.4 million or 1.19% of loans at
June 30, 2007
-- Compared with $21.2 million or 1.18% at March 31, 2007
-- Compared with $21.0 million or 1.17% at June 30, 2006
-- Equaled 191.6% of non-performing loans at June 30, 2007,
compared with 238.8% at March 31, 2007 and 275.8% at June 30,
2006
Non-performing loans of $13.8 million or 0.62% of loans at June 30,
2007
-- Compared with $8.9 million or 0.50% of loans at March 31, 2007
-- Compared with $7.6 million or 0.43% at June 30, 2006
Annualized net charge-off rate of 0.22% for second quarter 2007
-- Compared with 0.17% for first quarter 2007
-- Compared with 0.69% for second quarter 2006
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
June 30, December 31, June 30,
ASSETS 2007 2006 2006
---------------------------------------------------------------------
Cash and due from banks $ 72,058 $ 65,400 $ 78,700
Federal funds sold and
other short-term
investments 3,744 3,998 2,598
Loans held for sale (at
lower of cost or market
value) 5,437 1,764 667
Securities available for
sale 609,145 614,718 652,821
Regulatory stock 25,967 24,410 30,659
Loans:
Commercial loans 1,467,730 1,018,930 1,001,252
Consumer loans 426,086 421,957 426,202
Mortgage loans 324,411 350,089 365,321
Less: Allowance for loan
losses (26,390) (21,155) (21,043)
---------------------------------------------------------------------
Net loans 2,191,837 1,769,821 1,771,732
Premises and equipment 51,497 46,157 48,298
Goodwill 119,775 44,491 44,491
Other intangible assets 12,561 6,832 7,298
Other assets 122,341 106,888 106,244
---------------------------------------------------------------------
TOTAL ASSETS $3,214,362 $2,684,479 $2,743,508
=====================================================================
LIABILITIES
Deposits:
Non-interest-bearing demand $ 281,028 $ 252,851 $ 265,036
Savings & interest checking 510,559 497,548 519,640
Money market 394,844 296,732 297,149
Certificates of deposit and
other time deposits 1,229,188 906,721 963,526
---------------------------------------------------------------------
Total deposits 2,415,619 1,953,852 2,045,351
Short-term borrowings 207,863 217,518 198,863
Long-term borrowings 242,759 254,521 255,929
Other liabilities 31,808 23,114 19,892
---------------------------------------------------------------------
TOTAL LIABILITIES 2,898,049 2,449,005 2,520,035
SHAREHOLDERS' EQUITY
Preferred stock -
1,000 shares authorized -
None outstanding
Common stock - $1.00 stated
value - 29,000 shares
authorized 20,629 17,794 17,539
Additional paid-in capital 206,114 135,054 129,061
Retained earnings 97,326 88,355 88,790
Accumulated other
comprehensive income (loss) (7,756) (5,729) (11,917)
---------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 316,313 235,474 223,473
---------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $3,214,362 $2,684,479 $2,743,508
=====================================================================
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)
Three Months Ended
June 30, March 31, Dec. 31, Sept. 30, June 30,
2007 2007 2006 2006 2006
---------------------------------------------------------------------
INTEREST INCOME
Interest and fees
on loans and
leases $41,486 $32,130 $32,860 $32,836 $31,077
Interest and
dividends on
securities 7,495 7,289 7,521 7,817 7,861
Dividends on
regulatory stock 281 346 328 298 447
Interest on loans
held for sale 45 28 31 44 34
Interest on federal
funds sold and
other investments 60 49 62 40 23
---------------------------------------------------------------------
Total interest
income 49,367 39,842 40,802 41,035 39,442
INTEREST EXPENSE
Interest on
deposits 20,017 14,684 15,138 14,901 13,329
Interest on
short-term
borrowings 2,264 2,018 2,147 2,418 2,249
Interest on
long-term
borrowings 3,519 2,811 2,889 2,899 3,121
---------------------------------------------------------------------
Total interest
expense 25,800 19,513 20,174 20,218 18,699
---------------------------------------------------------------------
NET INTEREST INCOME 23,567 20,329 20,628 20,817 20,743
Provision for loan
losses 455 735 18,091 950 859
---------------------------------------------------------------------
Net interest income
after provision
for loan losses 23,112 19,594 2,537 19,867 19,884
NON-INTEREST INCOME
---------------------------------------------------------------------
Service charges on
deposit accounts 5,408 4,218 4,842 4,946 5,036
Trust income 602 614 595 576 558
Debit card
income-interchange 1,064 895 954 809 800
Other service
charges and fees 1,133 1,204 939 976 1,066
Securities gains
(losses) 56 166 589 (13) 1
Gain (Loss) on sale
of other assets 60 539 6 (39) 35
Other 1,608 1,579 1,518 1,951 1,621
---------------------------------------------------------------------
Total non-interest
income 9,931 9,215 9,443 9,206 9,117
NON-INTEREST EXPENSE
---------------------------------------------------------------------
Salaries and
employee benefits 11,693 10,765 9,564 10,003 9,960
Occupancy 2,388 2,107 2,143 1,971 2,071
Equipment 822 824 813 898 856
Professional fees 893 1,137 859 614 762
Communication and
transportation 1,303 1,171 1,218 1,235 1,222
Other 4,771 4,163 4,263 3,878 4,389
---------------------------------------------------------------------
Total non-interest
expense 21,870 20,167 18,860 18,599 19,260
---------------------------------------------------------------------
Income before
income taxes 11,173 8,642 (6,880) 10,474 9,741
Income taxes
expense (benefit) 2,840 1,286 (4,280) 2,274 2,351
---------------------------------------------------------------------
NET INCOME (LOSS) $ 8,333 $ 7,356 $(2,600) $ 8,200 $ 7,390
---------------------------------------------------------------------
Earnings per share:
Basic $ 0.41 $ 0.42 $ (0.15) $ 0.47 $ 0.42
Diluted 0.41 0.41 (0.15) 0.46 0.42
Weighted average
shares outstanding:
Basic 20,331 17,678 17,697 17,589 17,466
Diluted 20,407 17,786 17,864 17,752 17,562
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-----------------------------------------
2007 2006 2007 2006
---------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans
and leases $41,486 $31,077 $73,616 $59,808
Interest and dividends on
securities 7,495 7,861 14,784 15,599
Dividends on regulatory stock 281 447 627 853
Interest on loans held for
sale 45 34 73 65
Interest on federal funds
sold and other investments 60 23 109 231
---------------------------------------------------------------------
Total interest income 49,367 39,442 89,209 76,556
INTEREST EXPENSE
Interest on deposits 20,017 13,329 34,701 24,382
Interest on short-term
borrowings 2,264 2,249 4,282 4,009
Interest on long-term
borrowings 3,519 3,121 6,330 7,304
---------------------------------------------------------------------
Total interest expense 25,800 18,699 45,313 35,695
---------------------------------------------------------------------
NET INTEREST INCOME 23,567 20,743 43,896 40,861
Provision for loan losses 455 859 1,190 1,253
---------------------------------------------------------------------
Net interest income after
provision for loan losses 23,112 19,884 42,706 39,608
NON-INTEREST INCOME
---------------------------------------------------------------------
Service charges on deposit
accounts 5,408 5,036 9,626 9,091
Trust income 602 558 1,216 1,190
Debit card income-interchange 1,064 800 1,959 1,538
Other service charges and
fees 1,133 1,066 2,337 2,240
Securities gains (losses) 56 1 222 1
Gain on sale of other assets 60 35 599 126
Other 1,608 1,621 3,187 2,992
---------------------------------------------------------------------
Total non-interest income 9,931 9,117 19,146 17,178
NON-INTEREST EXPENSE
---------------------------------------------------------------------
Salaries 11,693 9,960 22,458 20,423
Occupancy 2,388 2,071 4,495 4,068
Equipment 822 856 1,646 1,701
Professional fees 893 762 2,030 1,482
Communication and
transportation 1,303 1,222 2,474 2,480
Other 4,771 4,389 8,934 8,264
---------------------------------------------------------------------
Total non-interest expense 21,870 19,260 42,037 38,418
---------------------------------------------------------------------
Income before income taxes 11,173 9,741 19,815 18,368
Income taxes expense
(benefit) 2,840 2,351 4,126 4,421
---------------------------------------------------------------------
NET INCOME (LOSS) $ 8,333 $ 7,390 $15,689 $13,947
---------------------------------------------------------------------
Earnings per share:
Basic $ 0.41 $ 0.42 $ 0.83 $ 0.80
Diluted 0.41 0.42 0.82 0.80
Weighted average shares
outstanding:
Basic 20,331 17,466 19,012 17,450
Diluted 20,407 17,562 19,107 17,543
INTEGRA BANK CORPORATION
SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
(In thousands, except for per share data)
June 30, March 31,
2007 2007
----------- -----------
EARNINGS DATA
Net Interest Income (tax-equivalent) $ 24,366 $ 20,945
Net Income (Loss) 8,333 7,356
Basic Earnings Per Share 0.41 0.42
Diluted Earnings Per Share 0.41 0.41
Dividends Declared 0.18 0.17
Book Value 15.33 13.51
Tangible Book Value 8.92 10.61
PERFORMANCE RATIOS
Return on Assets 1.04% 1.12%
Return on Equity 10.71 12.62
Net Interest Margin (tax-equivalent) 3.40 3.48
Tier 1 Capital to Risk Assets 9.41 11.01
Capital to Risk Assets 11.76 12.71
Tangible Equity to Tangible Assets 5.97 7.20
Efficiency Ratio 62.65 66.46
AT PERIOD END
Assets $3,214,362 $2,656,211
Interest-Earning Assets 2,862,520 2,415,717
Commercial Loans 1,467,730 1,040,004
Consumer Loans 426,086 412,576
Mortgage Loans 324,411 337,480
Total Loans 2,218,227 1,790,060
Deposits 2,415,619 1,995,728
Valuable Core Deposits (1) 1,186,431 1,045,708
Interest-Bearing Liabilities 2,585,213 2,141,347
Shareholders' Equity 316,313 238,707
Unrealized Gains (Losses) on Market
Securities (FASB 115) (6,848) (3,294)
AVERAGE BALANCES
Assets $3,198,981 $2,658,785
Interest-Earning Assets (2) 2,866,946 2,417,417
Commercial Loans 1,425,439 1,021,373
Consumer Loans 427,419 416,532
Mortgage Loans 340,430 342,344
Total Loans 2,193,288 1,780,249
Deposits 2,435,682 1,980,454
Valuable Core Deposits (1) 1,183,732 1,045,390
Interest-Bearing Liabilities 2,572,178 2,148,320
Shareholders' Equity 312,063 236,333
Basic Shares 20,331 17,678
Diluted Shares 20,407 17,786
December 31, September 30, June 30,
2006 2006 2006
------------ ------------- -----------
EARNINGS DATA
Net Interest Income
(tax-equivalent) $ 21,286 $ 21,490 $ 21,413
Net Income (Loss) (2,600) 8,200 7,390
Basic Earnings Per Share (0.15) 0.47 0.42
Diluted Earnings Per Share (0.15) 0.46 0.42
Dividends Declared 0.17 0.17 0.17
Book Value 13.23 13.48 12.74
Tangible Book Value 10.35 10.57 9.79
PERFORMANCE RATIOS
Return on Assets (0.38)% 1.19% 1.09%
Return on Equity (4.26) 14.06 13.24
Net Interest Margin
(tax-equivalent) 3.41 3.41 3.42
Tier 1 Capital to Risk
Assets 10.80 11.23 10.49
Capital to Risk Assets 12.51 12.95 12.20
Tangible Equity to Tangible
Assets 6.99 7.04 6.38
Efficiency Ratio 61.80 59.81 62.32
AT PERIOD END
Assets $2,684,479 $2,711,306 $2,743,508
Interest-Earning Assets 2,435,866 2,465,926 2,479,520
Commercial Loans 1,018,930 1,013,833 1,001,252
Consumer Loans 421,957 424,468 426,202
Mortgage Loans 350,089 360,714 365,321
Total Loans 1,790,976 1,799,015 1,792,775
Deposits 1,953,852 1,991,865 2,045,351
Valuable Core Deposits (1) 1,047,131 1,031,071 1,081,825
Interest-Bearing Liabilities 2,173,040 2,199,431 2,235,107
Shareholders' Equity 235,474 238,708 223,473
Unrealized Gains (Losses) on
Market Securities (FASB 115) (4,879) (5,747) (11,917)
AVERAGE BALANCES
Assets $2,707,539 $2,724,641 $2,725,810
Interest-Earning Assets (2) 2,469,010 2,487,752 2,485,345
Commercial Loans 1,028,889 1,010,665 983,921
Consumer Loans 423,325 425,651 423,646
Mortgage Loans 355,412 361,837 366,965
Total Loans 1,807,626 1,798,153 1,774,532
Deposits 2,016,184 2,025,797 2,011,242
Valuable Core Deposits (1) 1,040,335 1,036,043 1,047,196
Interest-Bearing Liabilities 2,187,665 2,219,894 2,216,384
Shareholders' Equity 242,248 231,330 223,905
Basic Shares 17,697 17,589 17,466
Diluted Shares 17,864 17,752 17,562
(1) Defined as money market, demand deposit and savings accounts.
(2) Includes securities available for sale at amortized cost.
INTEGRA BANK CORPORATION
SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA-con't
(In thousands, except ratios and yields)
June 30, March 31, Dec. 31, Sept. 30, June 30,
2007 2007 2006 2006 2006
-------- -------- -------- -------- --------
ASSET QUALITY
Non-Performing
Assets:
Non Accrual Loans $ 12,975 $ 8,816 $ 8,625 $ 7,844 $ 7,511
Loans 90+ Days
Past Due 801 49 228 54 120
-------- -------- -------- -------- --------
Non-Performing
Loans 13,776 8,865 8,853 7,898 7,631
Other Real Estate
Owned 3,563 1,246 936 779 719
-------- -------- -------- -------- --------
Non-Performing
Assets $ 17,339 $ 10,111 $ 9,789 $ 8,677 $ 8,350
======== ======== ======== ======== ========
Allowance for Loan
Losses:
Beginning Balance $ 21,165 $ 21,155 $ 21,403 $ 21,043 $23,234
Allowance
Associated with
Acquisition 5,982 -- -- -- --
Provision for
Loan Losses 455 735 18,091 950 859
Recoveries 426 348 463 343 629
Loans Charged Off (1,638) (1,073) (18,802) (933) (3,679)
-------- -------- -------- -------- --------
Ending Balance $ 26,390 $ 21,165 $ 21,155 $ 21,403 $ 21,043
======== ======== ======== ======== ========
Ratios:
Allowance for
Loan Losses to
Loans 1.19% 1.18% 1.18% 1.19% 1.17%
Allowance for
Loan Losses to
Average Loans 1.20 1.19 1.17 1.19 1.19
Allowance to
Non-performing
Loans 191.57 238.75 238.96 270.99 275.76
Non-performing
Loans to Loans 0.62 0.50 0.49 0.44 0.43
Non-performing
Assets to Loans
and Other Real
Estate Owned 0.78 0.56 0.55 0.48 0.47
Net Charge-Off
Ratio 0.22 0.17 4.03 0.13 0.69
NET INTEREST MARGIN
Yields (tax-
equivalent)
Loans 7.52% 7.25% 7.18% 7.21% 6.98%
Securities 5.16 5.17 5.17 5.13 5.02
Regulatory Stock 4.36 5.68 5.05 4.40 5.71
Other Earning
Assets 4.60 5.92 5.68 6.58 4.86
-------- -------- -------- -------- --------
Total Earning
Assets 7.01 6.76 6.64 6.63 6.43
Cost of Funds
Interest Bearing
Deposits 3.73 3.44 3.41 3.34 3.06
Other Interest
Bearing
Liabilities 5.45 4.64 4.64 4.66 4.54
Total Interest
Bearing
Liabilities 4.02 3.68 3.65 3.60 3.37
-------- -------- -------- -------- --------
Total Interest
Expense to
Earning Assets 3.61 3.28 3.23 3.22 3.01
-------- -------- -------- -------- --------
Net Interest
Margin 3.40% 3.48% 3.41% 3.41% 3.42%
======== ======== ======== ======== ========
(1) Defined as money market, demand deposit and savings accounts.
(2) Includes securities available for sale at amortized cost.