EVANSVILLE, Ind., Oct. 29, 2009 (GLOBE NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) today reported financial results for the third quarter of 2009.

The net loss available to common shareholders for the third quarter of 2009 was $20.9 million, or $1.01 per diluted share, compared to $49.6 million, or $2.39 per diluted share for the second quarter of 2009. The provision for loan losses was $18.9 million, down $13.6 million from $32.5 million during the second quarter of 2009, while net charge-offs totaled $20.0 million, or 3.42% of total loans on an annualized basis, down $8.8 million from $28.8 million, or 4.80% of total loans annualized for the second quarter of 2009. Net charge-offs included $1.3 million related to a program designed to obtain early repayment of commercial real estate loans. The net interest margin for the third quarter of 2009 was 2.35%, compared to 2.34% in the second quarter. The net loss available to shareholders for the nine months ended September 30, 2009 was $98.9 million, or $4.78 per diluted share.

The net loss for both the second and third quarters of 2009 include $1.1 million of dividends on the preferred shares sold to the Treasury Department in February 2009 under the Capital Purchase Program and discount accretion on the related warrant issued to the Treasury. The net loss for the third quarter also includes securities gains of $6.6 million, partially offset by trading losses of $1.2 million and an increase in the income tax valuation allowance of $6.9 million. The net loss for the second quarter included an other-than-temporary securities impairment (OTTI) charge of $20.3 million, an increase of $13.5 million in the income tax valuation allowance, a special 5 basis point FDIC assessment of $1.6 million and a $1.4 million non-tax deductible mark-to-market adjustment for the warrant that reduced earnings.

The Company previously announced that its banking subsidiary, Integra Bank N.A., had entered into two agreements with the Bank of Kentucky, Inc. First, Integra Bank agreed to sell its banking offices located in Crittenden, Dry Ridge and Warsaw, Kentucky and certain deposit liabilities and assets of banking offices located in Union and Florence, Kentucky. In this transaction, The Bank of Kentucky will assume approximately $85.0 million of deposit liabilities related to the five branches at a premium of approximately $5.2 million, and buy certain branch-related assets, including at least $35.0 million in selected loans at book value, less applicable reserves. All other assets will be sold at their book values. Integra Bank intends to close the Union and Florence banking offices following the completion of this transaction and seek a buyer for the real estate. This transaction is subject to customary conditions, including regulatory approval for the branch sale. The second transaction was the sale of a portfolio of primarily commercial loans originated from Integra Bank's Covington, Kentucky loan production office. The sale of a portion of the commercial loans, totaling $50.0 million, occurred in September 2009. It is anticipated that additional commercial loans related to Integra Bank's Covington, Kentucky loan production office will be purchased prior to the closing of the branch purchase transaction, which is expected to close during the fourth quarter of 2009. The Company estimates that approximately $33.0 million in additional loans are available to be purchased at the discretion of the Bank of Kentucky, and classified these loans as held for sale at September 30, 2009.

During the third quarter of 2009, the Company sold $105.7 million of agency issued collateralized mortgage obligations, $65.8 million of mortgage backed securities and $54.3 million of municipal securities at a gain of $6.6 million. A portion of the proceeds from these sales were used to purchase $170.7 million of GNMA securities, which carry a zero percent risk weight for regulatory capital requirements, thereby reducing the amount of risk weighted assets and improving total risk-based capital ratios. The repositioning improved Integra Bank's total risk-based capital ratio by approximately 45 basis points.

"While we continue to be disappointed with our earnings, we did execute initiatives during the third quarter designed to improve our credit, liquidity and capital positions and we will continue to take additional steps in the coming months," stated Mike Alley, Chairman and CEO. "During the third quarter, we successfully repositioned our securities portfolio, reduced commercial real estate loan balances, improved Integra's Bank's capital ratios, and stabilized our non-performing asset levels and credit losses. These actions are consistent with our intent to maintain strong liquidity and capital positions, while continuing to reduce non-performing assets and credit losses," Alley added.

The allowance to total loans increased 10 basis points during the third quarter of 2009, to 3.60% at September 30, 2009, while the allowance to non-performing loans decreased from 45% to 42%. Non-performing loans increased $7.5 million to $189.9 million, or 8.61% of total loans, compared to $182.4 million, or 7.76% of total loans at June 30, 2009. Other real estate owned decreased $2.9 million to $26.4 million during the third quarter of 2009, bringing total non-performing assets to $216.3 million at September 30, 2009.

Net interest income was $16.1 million for the third quarter of 2009, compared to $16.8 million for the second quarter of 2009, while the net interest margin was 2.35%, compared to 2.34% for the second quarter of 2009. Liability costs declined 20 basis points during the quarter, while earning asset yields declined 16 basis points. The decline in net interest income was primarily driven by a decline in average earning assets of $171.6 million.

Commercial loan average balances decreased $67.9 million in the third quarter of 2009, or 14.9% on an annualized basis. This included reductions in construction and land development loans of $119.8 million and commercial and industrial loans of $18.4 million, partially offset by an increase in commercial real estate loans of $70.3 million. The change in the portfolio reflecting the reductions of construction and land development loans and the increase of commercial real estate loans reflects the completion of construction for several of the projects securing these loans, net of payoffs and paydowns. The sale of $50.0 million of loans to the Bank of Kentucky occurred during September and did not materially impact average loan balances for the quarter. Low cost deposit average balances increased $57.1 million during the third quarter of 2009 to $1.1 billion.

Non-interest income was $14.8 million for the third quarter of 2009, compared to $(11.0) million for the second quarter of 2009. The third quarter of 2009 included $6.6 million of securities gains and $1.2 million of trading losses, as well as a $0.8 million loss reflected when the Company reclassified its bank owned life insurance as available for sale or surrender. The second quarter of 2009 included an OTTI charge on securities of $20.3 million, securities gains from sales of $1.5 million, and a $1.4 million reduction to non-interest income for a mark-to-market adjustment for the Treasury warrant. Deposit service charges increased $0.3 million during the third quarter of 2009 from the second quarter of 2009.

Non-interest expense was $24.4 million for the third quarter of 2009, compared to $29.2 million for the second quarter of 2009. Decreases during the third quarter of 2009 compared to the second quarter included debt prepayment penalties of $1.5 million, personnel expense of $1.4 million, FDIC insurance of $1.3 million, professional fees of $0.4 million and low income housing partnership losses of $0.3 million. These decreases offset an increase in loan and other real estate owned expense of $0.7 million.

Income tax expense was $7.3 million for the third quarter of 2009, as a federal and state income tax valuation allowance of $6.9 million and expected tax expense on the bank owned life insurance transaction of $5.6 million more than offset the tax benefit of the quarter's loss.

Integra Bank's total risk based capital ratio was 10.20%, an increase of 36 basis points from June 30, 2009. The increase resulted from the sale of securities and reinvestment of those funds into lower risk-weighted assets, the sale of loans to the Bank of Kentucky, other declines in loan balances, and capital infusions from the Company of $9.9 million, partially offset by the impact of the quarter's net loss. Integra Bank's tier 1 risk-based capital ratio increased 36 basis points to 8.92% and its tier 1 leverage ratio increased 14 basis points to 6.61%. All of Integra Bank's regulatory capital ratios are above the minimums for well-capitalized status. The Company's tangible common equity to tangible assets ratio declined 53 basis points to 3.44%.

On September 18, 2009, the Company announced the suspension of cash dividends on its common stock for an indefinite period. The quarterly cash dividend had previously been $0.01 per share.

Beginning in the fourth quarter of 2009, the Company intends to suspend the payment of cash dividends on its outstanding preferred stock and defer the payment of interest on its outstanding junior subordinated notes related to its trust preferred securities. The terms of the junior subordinated notes and the trust documents allow the Company to defer payments of interest for up to five years without default or penalty. During the deferral period, the respective trusts will likewise suspend the declaration and payment of dividends on the trust preferred securities. Also during the deferral period, the Company may not, among other things and with limited exceptions, pay cash dividends on or repurchase its common stock or preferred stock nor make any payment on outstanding debt obligations that rank equally with or junior to the junior subordinated notes.

The Company believes that the suspension of cash dividends on its preferred and common stock and the deferral of interest payments on the junior subordinated notes will preserve approximately $1.8 million per quarter (compared with the continuing level of dividend and interest payments), thereby enhancing liquidity and the Company's ability to bolster Integra Bank's capital ratios. The decision to defer payment of dividends and interest is in line with guidance issued by the Federal Reserve in February 2009, as revised in March 2009 (SR-09-4) related to payment of dividends on common and preferred stock, as well as interest on the subordinated notes underlying trust preferred securities.

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, Thursday, October 29, 2009, at 10:00 a.m. CT. The telephone number for the conference call is 866-861-4873, confirmation code 1408075. The conference call will also be available by webcast at http://www.integrabank.com.

About Integra

Headquartered in Evansville, Indiana, Integra Bank Corporation is the parent of Integra Bank N.A. As of September 30, 2009, Integra Bank has $3.3 billion in total assets and operates 74 banking centers and 122 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.

The Integra Bank Corporation logo is available at http://www.globenewswire.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 our actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) the effects of the current recession in the markets in which we primarily do business; (2) changes in the interest rate environment that reduce our net interest margin; (3) unanticipated additional loan charge-offs and loan loss provisions; (4) our ability to maintain required capital levels and adequate sources of funding and liquidity; (5) additional declines in value of our investment securities portfolio, including adverse developments affecting the issuers of trust preferred and collateralized securities we hold; (6) changes and trends in capital markets; (7) competitive pressures from other depository institutions that increase our funding costs; (8) unanticipated effects or changes in critical accounting policies and judgments; (9) legislative or regulatory changes or actions, or significant litigation that adversely affect us or the banking industry; (10) our ability to attract and retain key personnel; (11) our ability to fully utilize our deferred tax asset; (12) our ability to maintain security for confidential information in our computer systems and telecommunications network; (13) the effects of our participation in the Capital Purchase Program and possible changes to that program; (14) increases in insurance premiums we pay to the Federal Deposit Insurance Corporation; (15) our ability to comply with the terms of commitments we have made to federal banking authorities; (16) the successful completion of the branch and loan sale transactions announced in September 2009 and other plans to improve our capital ratios; (17) the impact of our decisions to suspend paying cash dividends on common and preferred stock and defer interest payments on our subordinated debt relating to our trust preferred securities (18) damage to our reputation that could result from adverse developments with respect to the foregoing, including our ability to retain customers and attract new ones, our cost of funding and our level of liquidity as well as other factors we describe 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 third quarter 2009 operating results:

Net income (loss) available to common shareholders of $(20.9) million for third quarter 2009

 -- Compared with $(49.6) million for second quarter 2009
 -- Compared with $(33.3) million for third quarter 2008

Diluted net income (loss) per common share of $(1.01) for third quarter 2009

 -- Compared with $(2.39) for second quarter 2009
 -- Compared with $(1.62) for third quarter 2008

Return on assets of (2.34)% for third quarter 2009

 -- Compared with (5.53)% for second quarter 2009
 -- Compared with (3.93)% for third quarter 2008

Return on common equity of (60.56)% for third quarter 2009

 -- Compared with (111.7)% for second quarter 2009
 -- Compared with (41.36)% for third quarter 2008

Net interest margin of 2.35% for third quarter 2009

 -- Compared with 2.34% for second quarter 2009
 -- Compared with 3.22% for third quarter 2008

Allowance for loan losses of $79.4 million or 3.60% of loans at September 30, 2009

 -- Compared with $82.3 million or 3.50% at June 30, 2009
 -- Compared with $41.8 million or 1.70% at September 30, 2008
 -- Equaled 41.8% of non-performing loans at September 30, 2009,
    compared with 45.1% at June 30, 2009 and 49.0% at September 30,
    2008

Non-performing assets of $216.3 million or 9.69% of loans and other real estate owned at September 30, 2009

 -- Compared with $211.7 million or 8.90% at June 30, 2009
 -- Compared with $92.4 million or 3.75% at September 30, 2008

Annualized net charge-off rate of 3.42% for third quarter 2009

 -- Compared with 4.80% for second quarter 2009
 -- Compared with 1.31% for third quarter 2008

 INTEGRA BANK CORPORATION
 UNAUDITED CONSOLIDATED BALANCE SHEETS
 (In thousands, except share data)

                                  Sept. 30,    Dec. 31,     Sept. 30,
 ASSETS                             2009         2008         2008
 ---------------------------------------------------------------------
 Cash and due from banks        $   391,171  $    62,354  $    66,369
 Federal funds sold and other
  short-term investments             49,946          419        4,128
 Loans held for sale (at lower
  of cost or market value)           41,253        5,776        6,679
 Securities available for sale      342,240      561,739      525,428
 Securities held for trading         13,237           --           --
 Regulatory stock                    29,124       29,155       29,182
 Loans:
 Commercial loans                 1,639,578    1,850,043    1,808,343
 Consumer loans                     398,212      432,183      431,106
 Mortgage loans                     167,871      208,017      221,361
 Less:  Allowance for loan
  losses                            (79,364)     (64,437)     (41,766)
 ---------------------------------------------------------------------
 Net loans                        2,126,297    2,425,806    2,419,044
 Premises and equipment              45,296       48,500       49,534
 Goodwill                                --           --       74,824
 Other intangible assets              8,664        9,928       10,359
 Other assets                       211,097      213,423      171,295
 ---------------------------------------------------------------------
 TOTAL ASSETS                   $ 3,258,325  $ 3,357,100  $ 3,356,842
 =====================================================================

 LIABILITIES
 Deposits:
 Non-interest-bearing demand    $   287,723  $   284,032  $   277,086
 Savings & interest checking        779,262      600,374      557,767
 Money market                       291,680      301,411      345,154
 Certificates of deposit and
  other time deposits             1,114,097    1,154,375    1,205,787
 ---------------------------------------------------------------------
 Total deposits                   2,472,762    2,340,192    2,385,794
 Short-term borrowings              188,011      415,006      306,182
 Long-term borrowings               361,364      360,917      358,676
 Other liabilities                   33,656       36,194       29,602
 ---------------------------------------------------------------------
 TOTAL LIABILITIES                3,055,793    3,152,309    3,080,254

 SHAREHOLDERS' EQUITY
 Preferred stock - no par,
  $1,000 per share liquidation
  preference - 1,000,000 shares
  authorized                         81,928           --           --
 Common stock - $1.00 stated
  value - 129,000,000 shares
  authorized                         20,937       20,749       20,749
 Additional paid-in capital         217,205      208,732      208,228
 Retained earnings                 (114,320)     (15,754)      66,076
 Accumulated other comprehensive
  income (loss)                      (3,218)      (8,936)     (18,465)
 ---------------------------------------------------------------------
 TOTAL SHAREHOLDERS' EQUITY         202,532      204,791      276,588
 ---------------------------------------------------------------------
 TOTAL LIABILITIES AND
  SHAREHOLDERS' EQUITY          $ 3,258,325  $ 3,357,100  $ 3,356,842
 =====================================================================


 INTEGRA BANK CORPORATION
 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except for per share data)

                                   Three Months Ended
                 Sept. 30,   June 30,  March 31,   Dec. 31,  Sept. 30,
                   2009        2009      2009        2008       2008
 ---------------------------------------------------------------------
 INTEREST INCOME
 Interest and
  fees on loans
  and leases     $ 24,566   $ 25,489   $ 25,952   $ 33,235   $ 35,201
 Interest and
  dividends on
  securities
  available for
  sale              3,857      5,830      6,474      6,811      6,605
 Interest on
  securities held
  for trading          81         22         --         --         --
 Dividends on
  regulatory
  stock               337        157        521        103        385
 Interest on
  loans held for
  sale                 89        127        103         85         88
 Interest on
  federal funds
  sold and other
  investments         272        174         93         10         26
 ---------------------------------------------------------------------
 Total interest
  income           29,202     31,799     33,143     40,244     42,305
 INTEREST EXPENSE
 Interest on
  deposits         10,356     11,759     12,187     13,532     12,888
 Interest on
  short-term
  borrowings          268        583        763      1,447      1,995
 Interest on
  long-term
  borrowings        2,528      2,683      2,710      3,828      3,562
 ---------------------------------------------------------------------
 Total interest
  expense          13,152     15,025     15,660     18,807     18,445
 ---------------------------------------------------------------------
 NET INTEREST
  INCOME           16,050     16,774     17,483     21,437     23,860
 Provision for
  loan losses      18,913     32,536     31,394     38,169     17,978
 ---------------------------------------------------------------------
 Net interest
  income after
  provision for
  loan losses      (2,863)   (15,762)   (13,911)   (16,732)     5,882
 NON-INTEREST
  INCOME
 ---------------------------------------------------------------------
 Service charges
  on deposit
  accounts          5,335      5,035      4,413      5,436      5,884
 Trust income         630        563        459        470        573
 Debit card
  income-
  interchange       1,368      1,373      1,257      1,281      1,358
 Other service
  charges and
  fees              1,098        951      1,093      1,142      1,103
 Securities gains
  (losses)          6,578    (18,835)    (1,170)    (4,309)        13
 Gain (Loss) on
  sale of other
  assets             (219)       (22)     2,496         (3)       (47)
 Warrant fair
  value
  adjustment           --     (1,407)    (4,738)        --         --
 Other                 37      1,358      1,682      1,742      1,300
 ---------------------------------------------------------------------
 Total non-
  interest income  14,827    (10,984)     5,492      5,759     10,184
 NON-INTEREST
  EXPENSE
 ---------------------------------------------------------------------
 Salaries and
  employee
  benefits         10,187     11,561     12,075     11,442     12,125
 Occupancy          2,348      2,378      2,581      2,657      2,621
 Equipment            749        808        849        875        974
 Professional
  fees              1,699      2,057      1,730      1,816      1,390
 Communication
  and
  transportation    1,126      1,091      1,161      1,248      1,223
 Loan and OREO
  expense           2,545      1,888      5,448      1,028        870
 Goodwill
  impairment           --         --         --     74,824     48,000
 Debt prepayment
  fees                 27      1,511         --         --         --
 FDIC Assessment    1,721      3,005        950        479        163
 Other              3,967      4,870      4,679      5,199      4,821
 ---------------------------------------------------------------------
 Total non-
  interest
  expense          24,369     29,169     29,473     99,568     72,187
 ---------------------------------------------------------------------
 Income (Loss)
  before income
  taxes           (12,405)   (55,915)   (37,892)  (110,541)   (56,121)
 Income taxes
  expense
  (benefit)         7,330     (7,451)    (9,831)   (28,919)   (22,794)
 ---------------------------------------------------------------------
 NET INCOME
  (LOSS)          (19,735)   (48,464)   (28,061)   (81,622)   (33,327)
 ---------------------------------------------------------------------
 Preferred stock
  dividends and
  discount
  accretion         1,117      1,139        413         --         --
 ---------------------------------------------------------------------
 NET INCOME
  (LOSS)
  AVAILABLE TO
  COMMON
  SHAREHOLDERS   $(20,852)  $(49,603)  $(28,474)  $(81,622)  $(33,327)
 ---------------------------------------------------------------------
 Earnings (Loss)
  per common
  share:
    Basic        $  (1.01)  $  (2.39)  $  (1.37)  $  (3.97)  $  (1.62)
    Diluted         (1.01)     (2.39)     (1.37)     (3.97)     (1.62)

 Weighted average
  common shares
  outstanding:
    Basic          20,707     20,715     20,732     20,569     20,567
    Diluted        20,707     20,715     20,732     20,569     20,567


 INTEGRA BANK CORPORATION
 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except for per share data)

                            Three Months Ended     Nine Months Ended
                              September 30,          September 30,
                           -------------------------------------------
                              2009       2008       2009       2008
 ---------------------------------------------------------------------
 INTEREST INCOME
 Interest and fees on loans
  and leases               $  24,566  $  35,201  $  76,007  $ 109,760
 Interest and dividends on
  securities available for
  sale                         3,857      6,605     16,161     20,781
 Interest on securities
  held for trading                81         --        103        570
 Dividends on regulatory
  stock                          337        385      1,015      1,170
 Interest on loans held for
  sale                            89         88        319        281
 Interest on federal funds
  sold and other
  investments                    272         26        539         94
 ---------------------------------------------------------------------
 Total interest income        29,202     42,305     94,144    132,656

 INTEREST EXPENSE
 Interest on deposits         10,356     12,888     34,302     42,131
 Interest on short-term
  borrowings                     268      1,995      1,614      6,116
 Interest on long-term
  borrowings                   2,528      3,562      7,921     11,865
 ---------------------------------------------------------------------
 Total interest expense       13,152     18,445     43,837     60,112
 ---------------------------------------------------------------------

 NET INTEREST INCOME          16,050     23,860     50,307     72,544
 Provision for loan losses    18,913     17,978     82,843     27,615
 ---------------------------------------------------------------------
 Net interest income after
  provision for loan losses   (2,863)     5,882    (32,536)    44,929

 NON-INTEREST INCOME
 ---------------------------------------------------------------------
 Service charges on deposit
  accounts                     5,335      5,884     14,783     15,642
 Trust income                    630        573      1,652      1,686
 Debit card income-
  interchange                  1,368      1,358      3,998      3,977
 Other service charges and
  fees                         1,098      1,103      3,142      3,997
 Securities gains (losses)     6,578         13    (13,427)    (6,262)
 Gain (Loss) on sale of
  other assets                  (219)       (47)     2,255        (59)
 Warrant fair value
  adjustment                      --         --     (6,145)        --
 Other                            37      1,300      3,077      4,949
 ---------------------------------------------------------------------
 Total non-interest income    14,827     10,184      9,335     23,930

 NON-INTEREST EXPENSE
 ---------------------------------------------------------------------
 Salaries and employee
  benefits                    10,187     12,125     33,823     36,965
 Occupancy                     2,348      2,621      7,307      7,722
 Equipment                       749        974      2,406      2,857
 Professional fees             1,699      1,390      5,486      3,925
 Communication and
  transportation               1,126      1,223      3,378      3,816
 Loan and OREO expense         2,545        870      9,881      1,752
 Goodwill impairment              --     48,000         --     48,000
 Debt prepayment fees             27         --      1,538         --
 FDIC Assessment               1,721        163      5,676        317
 Other                         3,967      4,821     13,516     15,131
 ---------------------------------------------------------------------
 Total non-interest expense   24,369     72,187     83,011    120,485
 ---------------------------------------------------------------------
 Income (Loss) before
  income taxes               (12,405)   (56,121)  (106,212)   (51,626)
 Income taxes expense
  (benefit)                    7,330    (22,794)    (9,952)   (22,373)
 ---------------------------------------------------------------------
 NET INCOME (LOSS)           (19,735)   (33,327)   (96,260)   (29,253)
 ---------------------------------------------------------------------
 Preferred stock dividends
  and discount accretion       1,117         --      2,669         --
 ---------------------------------------------------------------------
 NET INCOME (LOSS)
  AVAILABLE TO COMMON
  SHAREHOLDERS             $ (20,852) $ (33,327) $ (98,929) $ (29,253)
 ---------------------------------------------------------------------
 Earnings (Loss) per share:
    Basic                  $   (1.01) $   (1.62) $   (4.78) $   (1.42)
    Diluted                    (1.01)     (1.62)     (4.78)     (1.42)

 Weighted average shares
  outstanding:
    Basic                     20,707     20,567     20,713     20,553
    Diluted                   20,707     20,567     20,713     20,553


 INTEGRA BANK CORPORATION
 SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
 (In thousands, except for per share data)

               Sept. 30,  June 30,   March 31,  Dec. 31,   Sept. 30,
                 2009       2009       2009       2008       2008
              ---------- ---------- ---------- ---------- ----------

 EARNINGS
  DATA
  Net
   Interest
   Income
   (tax-
   equivalent)$   16,472 $   17,327 $   18,135 $   22,111 $   24,513
  Net Income
   (Loss)        (19,735)   (48,464)   (28,061)   (81,622)   (33,327)

 COMMON SHARE
  DATA
  Net
   Income
   (Loss)        (20,852)   (49,603)   (28,474)   (81,622)   (33,327)
  Basic
   Earnings
   Per Share       (1.01)     (2.39)     (1.37)     (3.97)     (1.62)
  Diluted
   Earnings
   Per Share       (1.01)     (2.39)     (1.37)     (3.97)     (1.62)
  Dividends
   Declared           --       0.01       0.01       0.01       0.01
  Tangible
   Book Value       5.35       6.40       8.21       9.39       9.22

 PERFORMANCE
  RATIOS
  Return
   on Assets       (2.34)     (5.53)%    (3.25)%    (9.57)%    (3.93)%
  Return on
   Common
   Equity         (60.56)   (111.70)    (56.62)   (119.82)    (41.36)
  Net Interest
   Margin
   (tax-
   equivalent)      2.35       2.34       2.39       2.86       3.22
  Tier 1
   Risk-Based
   Capital          8.21       8.52      10.01       7.68       9.05
  Total Risk-
   Based
   Capital         10.44      10.42      11.73       9.75      11.03
  Tangible
   Common
   Equity
   to 
   Tangible
   Assets           3.44       3.97       4.80       5.82       5.85
  Efficiency
   Ratio           96.76     102.45     107.66      75.55      68.49

 AT PERIOD END
  Assets      $3,258,325 $3,346,262 $3,555,533 $3,357,100 $3,356,842
  Interest-
   Earning
   Assets      2,681,461  2,837,522  3,005,489  3,087,332  3,026,227
  Commercial
   Loans       1,639,578  1,767,149  1,828,731  1,850,043  1,808,343
  Consumer
   Loans         398,212    406,800    409,255    432,183    431,106
  Mortgage
   Loans         167,871    175,523    188,013    208,017    221,361
    Total
     Loans     2,205,661  2,349,472  2,425,999  2,490,243  2,460,810
  Deposits     2,472,762  2,474,355  2,580,043  2,340,192  2,385,794
  Low Cost
   Deposits
   (1)         1,066,985  1,011,541    957,280    884,406    834,853
  Interest-
   Bearing
   Liabilities 2,734,414  2,809,067  2,950,191  2,832,083  2,773,566
  Sharehold-
   ers' Equity   202,532    223,464    261,502    204,791    276,588
  Unrealized
   Gains
   (Losses) on
   Market
   Securities
   (FASB 115)     (2,453)    (2,057)    (5,150)    (8,509)   (17,515)

 AVERAGE
  BALANCES
  Assets      $3,349,458 $3,513,409 $3,500,401 $3,393,237 $3,377,261
  Interest-
   Earning
   Assets (2)  2,789,909  2,961,516  3,053,716  3,087,179  3,038,943
  Commercial
   Loans       1,745,831  1,813,743  1,840,457  1,836,979  1,776,275
  Consumer
   Loans         401,820    407,757    418,640    432,380    429,042
  Mortgage
   Loans         171,490    182,568    197,016    215,343    228,747
    Total
     Loans     2,319,141  2,404,068  2,456,113  2,484,702  2,434,064
  Deposits     2,520,448  2,575,429  2,513,377  2,410,344  2,345,027
  Low Cost
   Deposits
   (1)         1,059,055  1,001,952    912,326    858,521    850,095
  Interest-
   Bearing
   Liabilities 2,804,857  2,921,548  2,936,850  2,806,089  2,746,792
  Sharehold-
   ers' Equity   221,894    259,923    233,951    270,998    320,522
  Basic Common
   Shares         20,707     20,715     20,732     20,569     20,567
  Diluted
   Common
   Shares         20,707     20,715     20,732     20,569     20,567

 (1) Defined as interest checking, demand deposit and savings
     accounts.
 (2) Includes securities available for sale and held for trading at
     amortized cost.


 INTEGRA BANK CORPORATION
 SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA-con't
 (In thousands, except ratios and yields)

                 Sept. 30,   June 30,  March 31,   Dec. 31,  Sept. 30,
                   2009        2009      2009        2008       2008
                 ---------  ---------  ---------  ---------  ---------

 ASSET QUALITY

  Non-Performing
   Assets:
   Non Accrual
    Loans        $185,558   $175,840   $186,770   $150,002   $ 79,672
   Loans 90+ Days
    Past Due        4,339      6,573      2,444        897      5,514
                 ---------  ---------  ---------  ---------  ---------
   Non-Performing
    Loans         189,897    182,413    189,214    150,899     85,186
   Other Real
    Estate Owned   26,435     29,286     19,848     19,396      7,252
                 ---------  ---------  ---------  ---------  ---------
   Non-Performing
    Assets       $216,332   $211,699   $209,062   $170,295   $ 92,438
                 =========  =========  =========  =========  =========

  Allowance for
   Loan Losses:
   Beginning
    Balance      $ 82,309   $ 78,525   $ 64,437   $ 41,766   $ 31,780
   Provision for
    Loan Losses    18,913     32,536     31,394     38,169     17,978
   Recoveries         538        442        330        377        464
   Loans Charged
    Off           (20,548)   (29,194)   (17,636)   (15,875)    (8,456)
   Transfer to
    Loans Held
    for Sale       (1,848)        --         --         --         --
                 ---------  ---------  ---------  ---------  ---------
   Ending
    Balance      $ 79,364   $ 82,309   $ 78,525   $ 64,437   $ 41,766
                 =========  =========  =========  =========  =========

  Ratios:
   Allowance for
    Loan Losses
    to Loans         3.60%      3.50%      3.24%      2.59%      1.70%
   Allowance for
    Loan Losses
    to Average
    Loans            3.42       3.42       3.20       2.59       1.72
   Allowance to
    Non-
    performing
    Loans           41.79      45.12      41.50      42.70      49.03
   Non-performing
    Loans to
    Loans            8.61       7.76       7.80       6.06       3.46
   Non-performing
    Assets to
    Loans and
    Other Real
    Estate Owned     9.69       8.90       8.55       6.79       3.75
   Net Charge-Off
    Ratio            3.42       4.80       2.86       2.48       1.31

 NET INTEREST
  MARGIN

  Yields (tax-
   equivalent)
   Loans             4.18%      4.23%      4.26%      5.28%      5.70%
   Securities        4.42       4.87       5.02       5.21       5.12
   Regulatory
    Stock            4.63       2.15       7.14       1.42       5.27
   Other Earning
    Assets           2.60      10.90       8.85       5.74       3.25
                 ---------  ---------  ---------  ---------  ---------
     Total
      Earning
      Assets         4.22       4.38       4.47       5.28       5.63

  Cost of Funds
   Interest
    Bearing
    Deposits         1.84       2.07       2.23       2.53       2.49
   Other Interest
    Bearing
    Liabilities      1.92       2.02       1.94       3.04       3.18
     Total
      Interest
      Bearing
      Liabilities    1.86       2.06       2.16       2.67       2.67
                 ---------  ---------  ---------  ---------  ---------
     Total
      Interest
      Expense to
      Earning
      Assets         1.87       2.04       2.08       2.42       2.41
                 ---------  ---------  ---------  ---------  ---------
  Net Interest
   Margin            2.35%      2.34%      2.39%      2.86%      3.22%
                 =========  =========  =========  =========  =========

CONTACT:  Integra Bank Corporation
          Mike Alley, Chairman and CEO
            812-461-5795
          Martin Zorn, EVP-Chief Operating Officer and 
           Chief Financial Officer
            812-461-5794
          Gretchen Dunn, Shareholder Relations
            812-464-9677
          http://www.integrabank.com