EVANSVILLE, Ind., March 5, 2010 (GLOBE NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) today reported financial results for the fourth quarter and full year of 2009.
The net loss available to common shareholders for the fourth quarter of 2009 was $96.1 million, or $4.64 per diluted share, compared to $20.9 million, or $1.01 per diluted share for the third quarter of 2009. The provision for loan losses was $30.5 million, up $11.6 million from $18.9 million during the third quarter of 2009, while net charge-offs totaled $21.2 million, or 3.86% of total loans on an annualized basis, a $0.7 million decrease from $21.9 million, or 3.74% of total loans annualized for the third quarter of 2009. The net interest margin for the fourth quarter of 2009 was 2.40%, compared to 2.35% in the third quarter. The net loss for the fourth quarter included an increase in the Company's income tax valuation allowance of $75.6 million, compared to an increase of $6.9 million in the third quarter of 2009.
The net loss for 2009 was $195.0 million, or $9.42 per share compared to $110.9 million or $5.39 per share for 2008. The 2009 results include a provision for loan losses of $113.4 million, an increase of $47.6 million from 2008, other-than-temporary securities impairment of $21.5 million, an increase of $10.9 million from 2008, and deferred income tax valuation allowance of $104.1 million, an increase of $101.0 million from 2008. The 2008 results included goodwill impairment of $122.8 million. The net interest margin for 2009 was 2.37% compared to 3.18% for 2008.
"Our fourth quarter results were significantly impacted by current economic conditions and continued weakness in commercial real estate," stated Mike Alley, Chairman and CEO. "We are executing a plan to return to profitability on a long term basis by stabilizing and then reducing our level of non-performing assets, enhancing our capital and liquidity and increasing the operating income of our core community banking franchise. The branch and loan sales we completed in 2009 and the three pending multi-branch/loan transactions we have announced in 2010 are key elements that will help us achieve our priorities. Based upon letters of intent and completed due diligence, we expect to announce agreements for additional branch and loans sales within the next 90 days. We expect that these divestiture transactions will positively impact the capital levels of the Company and Integra Bank positioning us to weather the current challenges. Reducing our operating footprint, assets, and costs is consistent with our strategic plan to focus on core community banking which has remained strong," Alley added.
The net loss for both the third and fourth 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 fourth quarter includes an increase in the tax valuation allowance of $75.6 million, a $5.3 million deposit premium and a $1.5 million write-down of the two banking facilities that were retained in the branch sale. The net loss for the third quarter included 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. Non-performing assets increased $30.6 million during the fourth quarter of 2009 to $246.9 million at December 31, 2009.
The total net loss for 2008 and 2009 of $305.9 million includes goodwill impairment of $122.8 million, increases in the deferred income tax valuation allowance of $107.3 million, other-than-temporary securities impairment ("OTTI") of $32.1 million and the provision for loan losses of $179.2 million. The Company has now written off or reserved for all of its goodwill and deferred income tax asset and has reduced its exposure to OTTI, recognizing no OTTI during the third and fourth quarters of 2009.
During the fourth quarter of 2009, the Company's banking subsidiary, Integra Bank N.A. ("Integra Bank"), completed the previously announced transaction with The Bank of Kentucky, Inc. in which the Crittenden, Dry Ridge and Warsaw, Kentucky locations and certain deposit liabilities and assets of banking offices located in Union and Florence, Kentucky were sold. In the transaction, The Bank of Kentucky assumed approximately $76.4 million of deposit liabilities related to the five branches at a premium of $5.3 million, and bought certain branch-related assets, including $37.8 million in selected loans at book value, less applicable reserves. In separate transactions, Integra Bank also sold two portfolios of primarily commercial loans totaling $69.4 million to the same purchaser.
On February 1, 2010, the Company announced that Integra Bank had agreed to sell its Milan, Osgood and Versailles Indiana banking offices to United Community Bank ("United"), of Lawrenceburg, Indiana, as well as a group of commercial and residential mortgage loans. The Company expects these transactions to close in the first half of 2010 and that they will improve Integra Bank's tier 1 and total risk based capital ratios by approximately 35 basis points, while increasing its tier 1 leverage ratio by approximately 25 basis points. The transactions are also expected to increase the Company's tangible common equity to tangible assets ratio by approximately 15 basis points.
On February 17, 2010, the Company announced that Integra Bank had agreed to sell its offices located in Leitchfield and Hardinsburg, Kentucky, along with a pool of commercial real estate loans to The Cecilian Bank of Cecilia, Kentucky. The Company expects these transactions will also close in the first half of 2010 and improve Integra Bank's tier 1 and total risk based capital ratios by approximately 25 basis points, while increasing its tier 1 leverage ratio by approximately 15 basis points. The transactions are also expected to increase the Company's tangible common equity to tangible assets ratio by approximately 10 basis points.
The loans, premises and equipment, and deposits for the pending divestitures above are classified as held for sale as of December 31, 2009.
On March 3, 2010, the Company announced that Integra Bank had agreed to sell five offices located in Bowling Green and Franklin, Kentucky and single offices located in Paoli, Mitchell and Bedford, Indiana, along with a pool of indirect consumer, commercial, and commercial real estate loans to First Security Bank of Owensboro, Kentucky. The Company expects these transactions will also close in the first half of 2010 and improve Integra Bank's tier 1 and total risk based capital ratios by approximately 120 basis points, while increasing its tier 1 leverage ratio by approximately 75 basis points. The transactions are also expected to increase the Company's tangible common equity to tangible assets ratio by approximately 55 basis points. The ability of First Security Bank to execute this transaction is dependent on their ability to raise the amount of capital necessary to ensure approval by their primary regulators. While they expect to be able to raise the necessary amount of capital and obtain regulatory approval, we did not include the loans, property and equipment and deposits as being held for sale at December 31, 2009 because of those contingencies.
During the fourth quarter of 2009, the Company suspended the payment of cash dividends on its outstanding preferred stock and deferred 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. 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 improving liquidity at the parent company level and the Company's ability to bolster Integra Bank's capital ratios. The Company also sold $45.1 million from the sale or surrender of bank owned life insurance in 2009, with an additional $17.0 million expected in 2010.
The allowance to total loans increased 79 basis points during the fourth quarter of 2009, to 4.39% at December 31, 2009, while the allowance to non-performing loans decreased from 42% to 41%. Non-performing loans increased $25.0 million to $214.9 million, or 10.64% of total loans, compared to $189.9 million, or 8.61% of total loans at September 30, 2009. The increase in non-performing loans as a percentage of total loans was due to both higher levels of those loans and the fourth quarter sale of performing loans. Non-performing assets totaled $246.9 million at December 31, 2009. Non-performing assets from the Cincinnati based commercial real estate portfolio increased $35.1 million in the fourth quarter, while non-performing assets from the Chicago commercial real estate portfolio decreased $9.3 million.
"We are in the process of completely exiting the commercial real estate line of business established during 2003 in Cincinnati, Ohio and will continue to gradually wind down the existing portfolio, either through paydowns or sales to other parties," stated John Key, Chief Credit and Risk Officer. "The closure of our Cleveland, Ohio loan production office this month follows the 2009 closure of our Nashville, Tennessee and Louisville, Kentucky commercial real estate LPOs. We have reassigned the remaining members of the commercial real estate group to our workout team to reduce outstandings, particularly those that are non-performing, and to improve pricing on credits when those opportunities arise. We have implemented a similar approach in Chicago, as that workout team is executing plans to exit the commercial real estate loans and non-performing assets we have there," added Key.
Net interest income was $15.7 million for the fourth quarter of 2009, compared to $16.1 million for the third quarter of 2009, while the net interest margin was 2.40%, compared to 2.35% for the third quarter of 2009. Liability costs and earning asset yields both declined 8 basis points during the fourth quarter of 2009. The decline in net interest income was primarily driven by a decline in average earning assets of $144.6 million.
Commercial loan average balances decreased $118.9 million in the fourth quarter of 2009, or 27.0% on an annualized basis. Commercial and industrial loan average balances decreased $69.3 million, from the third quarter of 2009, primarily as a result of the sale of $50.0 million of these loans to The Bank of Kentucky during September. There were also declines in commercial real estate loans of $32.2 million and construction and land development loans of $17.3 million. Low cost deposit average balances increased $17.0 million during the fourth quarter of 2009 to $1.1 billion. The sale of $35.9 million in low cost deposits in December 2009 did not materially impact averages for the fourth quarter. Federal Reserve Term Auction Facility borrowings of $85.0 million were paid off during the fourth quarter of 2009, and average Federal Home Loan Bank borrowings decreased by $46.3 million.
Non-interest income was $13.8 million for the fourth quarter of 2009, compared to $14.8 million for the third quarter of 2009. The fourth quarter of 2009 included $5.3 million in deposit premium from the branch sale to The Bank of Kentucky, compared to $6.6 million of securities gains and $1.2 million of trading losses in the third quarter of 2009. The fourth quarter also included a decrease of $1.1 million in loan sale gains, partially offset by an increase of $0.6 million in bank owned life insurance income.
Non-interest expense was $23.2 million for the fourth quarter of 2009, compared to $24.4 million for the third quarter of 2009. Decreases during the fourth quarter of 2009 compared to the third quarter included personnel expense of $1.8 million, and other real estate owned expense of $1.4 million, partially offset by increases in FDIC insurance of $0.3 million, and professional fees of $0.3 million.
The fourth quarter of 2009 includes an increase in the Company's deferred income tax valuation allowance of $75.6 million. Including this charge, the Company now has a reserve against all of its deferred income tax asset. Upon a return to profitability, this reserve will be reduced, meaning any future tax expense will be offset by the benefit of a reduction of the valuation allowance.
Integra Bank's total risk based capital ratio was 10.05%, a decrease of 15 basis points from September 30, 2009. The decrease resulted from the impact of the quarter's net loss, partially offset by the branch divestiture, other declines in loan balances, the reduction of bank owned life insurance and capital infusions from the Company of $6.0 million. Integra Bank's tier 1 risk-based capital ratio decreased 16 basis points to 8.76% and its tier 1 leverage ratio decreased 31 basis points to 6.30%. The Company's tangible common equity to tangible assets ratio declined 302 basis points to 0.42%, while its tangible book value per share was $0.58 at December 31, 2009. Approximately 78% of this decline resulted from the increase to the deferred income tax valuation allowance.
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, Friday, March 5, 2010, at 10:00 a.m. CT. The telephone number for the conference call is 877-212-6067, confirmation code 58307174. 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 December 31, 2009, Integra Bank has $2.9 billion in total assets and operates 69 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.
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. There are a number of important factors that could cause our future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed under the heading "Risk Factors" in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2009, including: (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 maintain security for confidential information in our computer systems and telecommunications network; (12) the effects of our participation in the CPP and possible changes to that program; (13) additional increases in insurance premiums we pay to the Federal Deposit Insurance Corporation; (14) our ability to comply with the terms of commitments we have made to federal banking authorities; (15) the success of our plans to improve our capital ratios; (16) 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; (17) our ability to once again comply with the minimum bid requirement necessary for our shares to be listed on the Nasdaq Stock Market; (18) our ability to execute our plans to exit the commercial real estate lending business, sell multiple branch clusters and loan pools and reduce our cost structure; and (19) 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.
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Summary Operating Results Data
Here is a summary of Integra Bank Corporation's fourth quarter 2009 operating results:
Net income (loss) available to common shareholders of $(96.1) million for fourth quarter 2009
- Compared with $(20.9) million for third quarter 2009
- Compared with $(81.6) million for fourth quarter 2008
Diluted net income (loss) per common share of $(4.64) for fourth quarter 2009
- Compared with $(1.01) for third quarter 2009
- Compared with $(3.97) for fourth quarter 2008
Return on assets of (12.09)% for fourth quarter 2009
- Compared with (2.34)% for third quarter 2009
- Compared with (9.57)% for fourth quarter 2008
Return on common equity of (333.05)% for fourth quarter 2009
- Compared with (59.09)% for third quarter 2009
- Compared with (119.82)% for fourth quarter 2008
Net interest margin of 2.40% for fourth quarter 2009
- Compared with 2.35% for third quarter 2009
- Compared with 2.86% for fourth quarter 2008
Allowance for loan losses of $88.7 million or 4.39% of loans at December 31, 2009
- Compared with $79.4 million or 3.60% at September 30, 2009
- Compared with $64.4 million or 2.59% at December 31, 2008
- Equaled 41.3% of non-performing loans at December 31, 2009, compared with 41.8% at September 30, 2009 and 42.7% at December 31, 2008
Non-performing assets of $246.9 million or 12.03% of loans and other real estate owned at December 31, 2009
- Compared with $216.3 million or 9.69% at September 30, 2009
- Compared with $170.3 million or 6.79% at December 31, 2008
Annualized net charge-off rate of 3.86% for fourth quarter 2009
- Compared with 3.74% for third quarter 2009
- Compared with 2.48% for fourth quarter 2008
| INTEGRA BANK CORPORATION | ||
| UNAUDITED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except share data) | ||
| December 31, | December 31, | |
| ASSETS | 2009 | 2008 |
| Cash and due from banks | $ 304,921 | $ 62,354 |
| Federal funds sold and other short-term investments | 49,653 | 419 |
| Loans held for sale (at lower of cost or market value) | 93,572 | 5,776 |
| Securities available for sale | 361,719 | 561,739 |
| Securities held for trading | 36 | -- |
| Regulatory stock | 29,124 | 29,155 |
| Loans | 2,019,732 | 2,490,243 |
| Less: Allowance for loan losses | (88,670) | (64,437) |
| Net loans | 1,931,062 | 2,425,806 |
| Premises and equipment | 37,814 | 48,500 |
| Premises and equipment held for sale | 4,249 | -- |
| Goodwill | -- | -- |
| Other intangible assets | 8,242 | 9,928 |
| Other assets | 101,549 | 213,423 |
| TOTAL ASSETS | $ 2,921,941 | $ 3,357,100 |
| LIABILITIES | ||
| Deposits: | ||
| Non-interest-bearing demand | $ 263,530 | $ 284,032 |
| Non-interest-bearing held for sale | 7,319 | -- |
| Interest-bearing | 2,004,369 | 2,056,160 |
| Interest-bearing held for sale | 89,888 | -- |
| Total deposits | 2,365,106 | 2,340,192 |
| Short-term borrowings | 62,114 | 415,006 |
| Long-term borrowings | 361,071 | 360,917 |
| Other liabilities | 31,304 | 36,194 |
| TOTAL LIABILITIES | 2,819,595 | 3,152,309 |
| SHAREHOLDERS' EQUITY | ||
| Preferred stock - no par, $1,000 per share liquidation preference -- | ||
| 1,000,000 shares authorized | 82,011 | -- |
| Common stock -- $1.00 stated value - 129,000,000 shares authorized | 20,848 | 20,749 |
| Additional paid-in capital | 216,939 | 208,732 |
| Retained earnings | (210,371) | (15,754) |
| Accumulated other comprehensive income (loss) | (7,081) | (8,936) |
| TOTAL SHAREHOLDERS' EQUITY | 102,346 | 204,791 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,921,941 | $ 3,357,100 |
| INTEGRA BANK CORPORATION | |||||
| UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | |||||
| (In thousands, except for per share data) | |||||
| Three Months Ended | |||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |
| 2009 | 2009 | 2009 | 2009 | 2008 | |
| INTEREST INCOME | |||||
| Interest and fees on loans and leases | $ 23,178 | $ 24,566 | $ 25,489 | $ 25,952 | $ 33,235 |
| Interest and dividends on securities available for sale | 3,514 | 3,857 | 5,830 | 6,474 | 6,811 |
| Interest on securities held for trading | 58 | 81 | 22 | -- | -- |
| Dividends on regulatory stock | 169 | 337 | 157 | 521 | 103 |
| Interest on loans held for sale | 197 | 89 | 127 | 103 | 85 |
| Interest on federal funds sold and other investments | 206 | 272 | 174 | 93 | 10 |
| Total interest income | 27,322 | 29,202 | 31,799 | 33,143 | 40,244 |
| INTEREST EXPENSE | |||||
| Interest on deposits | 8,919 | 10,356 | 11,759 | 12,187 | 13,532 |
| Interest on short-term borrowings | 68 | 268 | 583 | 763 | 1,447 |
| Interest on long-term borrowings | 2,606 | 2,528 | 2,683 | 2,710 | 3,828 |
| Total interest expense | 11,593 | 13,152 | 15,025 | 15,660 | 18,807 |
| NET INTEREST INCOME | 15,729 | 16,050 | 16,774 | 17,483 | 21,437 |
| Provision for loan losses | 30,525 | 18,913 | 32,536 | 31,394 | 38,169 |
| Net interest income after provision for loan losses | (14,796) | (2,863) | (15,762) | (13,911) | (16,732) |
| NON-INTEREST INCOME | |||||
| Service charges on deposit accounts | 5,096 | 5,335 | 5,035 | 4,413 | 5,436 |
| Trust income | 450 | 630 | 563 | 459 | 470 |
| Debit card income-interchange | 1,363 | 1,368 | 1,373 | 1,257 | 1,281 |
| Other service charges and fees | 995 | 1,098 | 951 | 1,093 | 1,142 |
| Securities gains (losses) | 3 | 6,578 | (18,835) | (1,170) | (4,309) |
| Gain (Loss) on sale of other assets | 4,965 | (219) | (22) | 2,496 | (3) |
| Warrant fair value adjustment | -- | -- | (1,407) | (4,738) | -- |
| Other | 961 | 37 | 1,358 | 1,682 | 1,742 |
| Total non-interest income | 13,833 | 14,827 | (10,984) | 5,492 | 5,759 |
| NON-INTEREST EXPENSE | |||||
| Salaries and employee benefits | 8,411 | 10,187 | 11,561 | 12,075 | 11,442 |
| Occupancy | 2,192 | 2,348 | 2,378 | 2,581 | 2,657 |
| Equipment | 745 | 749 | 808 | 849 | 875 |
| Professional fees | 1,967 | 1,699 | 2,057 | 1,730 | 1,816 |
| Communication and transportation | 968 | 1,126 | 1,091 | 1,161 | 1,248 |
| Loan and OREO expense | 1,122 | 2,545 | 1,888 | 5,448 | 1,028 |
| Goodwill impairment | -- | -- | -- | -- | 74,824 |
| Debt prepayment fees | -- | 27 | 1,511 | -- | -- |
| FDIC Assessment | 2,005 | 1,721 | 3,005 | 950 | 479 |
| Other | 5,748 | 3,967 | 4,870 | 4,679 | 5,199 |
| Total non-interest expense | 23,158 | 24,369 | 29,169 | 29,473 | 99,568 |
| Income (Loss) before income taxes | (24,121) | (12,405) | (55,915) | (37,892) | (110,541) |
| Income taxes expense (benefit) | 70,802 | 7,330 | (7,451) | (9,831) | (28,919) |
| NET INCOME (LOSS) | (94,923) | (19,735) | (48,464) | (28,061) | (81,622) |
| Preferred stock dividends and discount accretion | 1,129 | 1,117 | 1,139 | 413 | -- |
| NET INCOME (LOSS) AVAILABLE | |||||
| TO COMMON SHAREHOLDERS | $ (96,052) | $ (20,852) | $ (49,603) | $ (28,474) | $ (81,622) |
| Earnings (Loss) per common share: | |||||
| Basic | $ (4.64) | $ (1.01) | $ (2.39) | $ (1.37) | $ (3.97) |
| Diluted | (4.64) | (1.01) | (2.39) | (1.37) | (3.97) |
| Weighted average common shares outstanding: | |||||
| Basic | 20,685 | 20,707 | 20,715 | 20,732 | 20,569 |
| Diluted | 20,685 | 20,707 | 20,715 | 20,732 | 20,569 |
| INTEGRA BANK CORPORATION | ||||
| UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | ||||
| (In thousands, except for per share data) | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2009 | 2008 | 2009 | 2008 | |
| INTEREST INCOME | ||||
| Interest and fees on loans and leases | $ 23,178 | $ 33,235 | $ 99,185 | $ 142,995 |
| Interest and dividends on securities available for sale | 3,514 | 6,811 | 19,675 | 27,592 |
| Interest on securities held for trading | 58 | -- | 161 | 570 |
| Dividends on regulatory stock | 169 | 103 | 1,184 | 1,273 |
| Interest on loans held for sale | 197 | 85 | 516 | 366 |
| Interest on federal funds sold and other investments | 206 | 10 | 745 | 104 |
| Total interest income | 27,322 | 40,244 | 121,466 | 172,900 |
| INTEREST EXPENSE | ||||
| Interest on deposits | 8,919 | 13,532 | 43,221 | 55,663 |
| Interest on short-term borrowings | 68 | 1,447 | 1,682 | 7,563 |
| Interest on long-term borrowings | 2,606 | 3,828 | 10,527 | 15,693 |
| Total interest expense | 11,593 | 18,807 | 55,430 | 78,919 |
| NET INTEREST INCOME | 15,729 | 21,437 | 66,036 | 93,981 |
| Provision for loan losses | 30,525 | 38,169 | 113,368 | 65,784 |
| Net interest income after provision for loan losses | (14,796) | (16,732) | (47,332) | 28,197 |
| NON-INTEREST INCOME | ||||
| Service charges on deposit accounts | 5,096 | 5,436 | 19,879 | 21,078 |
| Trust income | 450 | 470 | 2,102 | 2,156 |
| Debit card income-interchange | 1,363 | 1,281 | 5,361 | 5,258 |
| Other service charges and fees | 995 | 1,142 | 4,137 | 5,139 |
| Securities gains (losses) | 3 | (4,309) | (13,424) | (10,571) |
| Gain (Loss) on sale of other assets | 4,965 | (3) | 7,220 | (62) |
| Warrant fair value adjustment | -- | -- | (6,145) | -- |
| Other | 961 | 1,742 | 4,038 | 6,691 |
| Total non-interest income | 13,833 | 5,759 | 23,168 | 29,689 |
| NON-INTEREST EXPENSE | ||||
| Salaries and employee benefits | 8,411 | 11,442 | 42,234 | 48,407 |
| Occupancy | 2,192 | 2,657 | 9,499 | 10,379 |
| Equipment | 745 | 875 | 3,151 | 3,732 |
| Professional fees | 1,967 | 1,816 | 7,453 | 5,741 |
| Communication and transportation | 968 | 1,248 | 4,346 | 5,064 |
| Loan and OREO expense | 1,122 | 1,028 | 11,003 | 2,780 |
| Goodwill impairment | -- | 74,824 | -- | 122,824 |
| Debt prepayment fees | -- | -- | 1,538 | -- |
| FDIC Assessment | 2,005 | 479 | 7,681 | 796 |
| Other | 5,748 | 5,199 | 19,264 | 20,330 |
| Total non-interest expense | 23,158 | 99,568 | 106,169 | 220,053 |
| Income (Loss) before income taxes | (24,121) | (110,541) | (130,333) | (162,167) |
| Income taxes expense (benefit) | 70,802 | (28,919) | 60,850 | (51,292) |
| NET INCOME (LOSS) | (94,923) | (81,622) | (191,183) | (110,875) |
| Preferred stock dividends and discount accretion | 1,129 | -- | 3,798 | -- |
| NET INCOME (LOSS) AVAILABLE | ||||
| TO COMMON SHAREHOLDERS | $ (96,052) | $ (81,622) | $ (194,981) | $ (110,875) |
| Earnings (Loss) per share: | ||||
| Basic | $ (4.64) | $ (3.97) | $ (9.42) | $ (5.39) |
| Diluted | (4.64) | (3.97) | (9.42) | (5.39) |
| Weighted average shares outstanding: | ||||
| Basic | 20,685 | 20,569 | 20,706 | 20,557 |
| Diluted | 20,685 | 20,569 | 20,706 | 20,557 |
| INTEGRA BANK CORPORATION | |||||
| SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA | |||||
| (In thousands, except for per share data) | |||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |
| 2009 | 2009 | 2009 | 2009 | 2008 | |
| EARNINGS DATA | |||||
| Net Interest Income (tax-equivalent) | $ 15,948 | $ 16,472 | $ 17,327 | $ 18,135 | $ 22,111 |
| Net Income (Loss) | (94,923) | (19,735) | (48,464) | (28,061) | (81,622) |
| COMMON SHARE DATA | |||||
| Net Income (Loss) | (96,052) | (20,852) | (49,603) | (28,474) | (81,622) |
| Basic Earnings Per Share | (4.64) | (1.01) | (2.39) | (1.37) | (3.97) |
| Diluted Earnings Per Share | (4.64) | (1.01) | (2.39) | (1.37) | (3.97) |
| Dividends Declared | -- | -- | 0.01 | 0.01 | 0.01 |
| PERFORMANCE RATIOS | |||||
| Return on Assets | (12.09)% | (2.34)% | (5.53)% | (3.25)% | (9.57)% |
| Return on Common Equity | (333.05) | (59.09) | (111.70) | (56.62) | (119.82) |
| Net Interest Margin (tax-equivalent) | 2.40 | 2.35 | 2.34 | 2.39 | 2.86 |
| Tier 1 Risk-Based Capital | 6.17 | 8.21 | 8.52 | 10.01 | 7.68 |
| Total Risk-Based Capital | 9.94 | 10.44 | 10.42 | 11.73 | 9.75 |
| Tangible Common Equity to . | |||||
| Tangible Assets | 0.42 | 3.44 | 3.97 | 4.80 | 5.82 |
| Efficiency Ratio | 92.75 | 96.76 | 102.45 | 107.66 | 75.55 |
| AT PERIOD END | |||||
| Assets | $ 2,921,941 | $ 3,258,325 | $ 3,346,262 | $ 3,555,533 | $ 3,357,100 |
| Interest-Earning Assets | 2,553,836 | 2,681,461 | 2,837,522 | 3,005,489 | 3,087,332 |
| Total Loans | 2,019,732 | 2,205,661 | 2,349,472 | 2,425,999 | 2,490,243 |
| Deposits | 2,365,106 | 2,472,763 | 2,474,355 | 2,580,043 | 2,340,192 |
| Low Cost Deposits (1) | 1,029,937 | 1,066,985 | 1,011,541 | 957,280 | 884,406 |
| Interest-Bearing Liabilities | 2,517,442 | 2,734,414 | 2,809,067 | 2,950,191 | 2,832,083 |
| Shareholders' Equity | 102,346 | 202,532 | 223,464 | 261,502 | 204,791 |
| Unrealized Gains (Losses) on Market | |||||
| Securities (FASB 115) | (4,977) | (2,453) | (2,057) | (5,150) | (8,509) |
| AVERAGE BALANCES | |||||
| Assets | $ 3,115,805 | $ 3,349,459 | $ 3,513,409 | $ 3,500,401 | $ 3,393,237 |
| Interest-Earning Assets (2) | 2,645,282 | 2,789,909 | 2,961,516 | 3,053,716 | 3,087,179 |
| Total Loans | 2,179,607 | 2,319,141 | 2,404,068 | 2,456,113 | 2,484,702 |
| Deposits | 2,445,514 | 2,520,448 | 2,575,429 | 2,513,377 | 2,410,344 |
| Low Cost Deposits (1) | 1,076,090 | 1,059,055 | 1,001,952 | 912,326 | 858,521 |
| Interest-Bearing Liabilities | 2,586,711 | 2,804,857 | 2,921,548 | 2,936,850 | 2,806,089 |
| Shareholders' Equity | 196,391 | 221,894 | 259,923 | 233,951 | 270,998 |
| Basic Common Shares | 20,685 | 20,707 | 20,715 | 20,732 | 20,569 |
| Diluted Common Shares | 20,685 | 20,707 | 20,715 | 20,732 | 20,569 |
| (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) | |||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |
| 2009 | 2009 | 2009 | 2009 | 2008 | |
| ASSET QUALITY | |||||
| Non-Performing Assets: | |||||
| Non Accrual Loans | $ 210,753 | $ 185,558 | $ 175,840 | $ 186,770 | $ 150,002 |
| Loans 90+ Days Past Due | 4,127 | 4,339 | 6,573 | 2,444 | 897 |
| Non-Performing Loans | 214,880 | 189,897 | 182,413 | 189,214 | 150,899 |
| Other Real Estate Owned | 31,982 | 26,435 | 29,286 | 19,848 | 19,396 |
| Trust preferred held for trading | 36 | -- | -- | -- | -- |
| Non-Performing Assets | $ 246,898 | $ 216,332 | $ 211,699 | $ 209,062 | $ 170,295 |
| Allowance for Loan Losses: | |||||
| Beginning Balance | $ 79,364 | $ 82,309 | $ 78,525 | $ 64,437 | $ 41,766 |
| Provision for Loan Losses | 30,525 | 18,913 | 32,536 | 31,394 | 38,169 |
| Recoveries | 1,007 | 538 | 442 | 330 | 377 |
| Loans Charged Off | (22,226) | (22,396) | (29,194) | (17,636) | (15,875) |
| Ending Balance | $ 88,670 | $ 79,364 | $ 82,309 | $ 78,525 | $ 64,437 |
| Ratios: | |||||
| Allowance for Loan Losses to Loans | 4.39% | 3.60% | 3.50% | 3.24% | 2.59% |
| Allowance for Loan Losses to Average | |||||
| Loans | 4.07 | 3.42 | 3.42 | 3.20 | 2.59 |
| Allowance to Non-performing Loans | 41.26 | 41.79 | 45.12 | 41.50 | 42.70 |
| Non-performing Loans to Loans | 10.64 | 8.61 | 7.76 | 7.80 | 6.06 |
| Non-performing Assets to Loans and | |||||
| Other Real Estate Owned | 12.03 | 9.69 | 8.90 | 8.55 | 6.79 |
| Net Charge-Off Ratio | 3.86 | 3.74 | 4.80 | 2.86 | 2.48 |
| NET INTEREST MARGIN | |||||
| Yields (tax-equivalent) | |||||
| Loans | 4.20% | 4.18% | 4.23% | 4.26% | 5.28% |
| Securities | 4.13 | 4.42 | 4.87 | 5.02 | 5.21 |
| Regulatory Stock | 2.32 | 4.63 | 2.15 | 7.14 | 1.42 |
| Other Earning Assets | 2.05 | 2.60 | 10.90 | 8.85 | 5.74 |
| Total Earning Assets | 4.14 | 4.22 | 4.38 | 4.47 | 5.28 |
| Cost of Funds | |||||
| Interest Bearing Deposits | 1.65 | 1.84 | 2.07 | 2.23 | 2.53 |
| Other Interest Bearing Liabilities | 2.38 | 1.92 | 2.02 | 1.94 | 3.04 |
| Total Interest Bearing Liabilities | 1.78 | 1.86 | 2.06 | 2.16 | 2.67 |
| Total Interest Expense to Earning Assets | 1.74 | 1.87 | 2.04 | 2.08 | 2.42 |
| Net Interest Margin | 2.40% | 2.35% | 2.34% | 2.39% | 2.86% |