-- Net Income and Earnings Per Share for 2007 Increase To $32.8
million and $1.66 -- increase of 67.8% and 49.5%, Respectively over
2006 Results
-- Net Interest Margin of 3.46% for 2007 Up 3 Basis Points from
2006 -- Net Interest Income Increases $10.9 Million or 13.3%
-- Non-interest Income Increases $4.0 million or 11.1% From 2006
-- Allowance to Total Loans Increases 3 Basis Points to 1.18% From
Third Quarter-Net Charge-offs Remain Low at 19 Basis Points for
the Year
-- Commercial Loan Growth Continues -- Up $75 Million or
20% Annualized from Third Quarter of 2007
-- Non-Performing Loans Increase to .98% of Total Loans in Fourth
Quarter, Yet Remain Below Peer Levels
EVANSVILLE, Ind., Jan. 22, 2008 (PRIME NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) today reported net income for 2007 of $32.8 million, an increase of $13.3 million or 67.8% over 2006 results. Diluted earnings per share were $1.66, compared to $1.11 for 2006, an increase of 49.5%. Returns on assets and equity were 1.06% and 10.92% for 2007, as compared to 0.72% and 8.50% for 2006.
Comparisons between 2007 and 2006 were affected by a significant event in each year. Financial results for 2007 were impacted by the second quarter acquisition of Prairie Financial Corporation, a privately-held 15 year old community bank with five offices in the Chicago metropolitan area. Financial results for 2006 were impacted by a fourth quarter charge-off and related provision for loan losses of a $17.7 million lending relationship.
Financial results for 2007, compared to 2006, included increases in net-interest income of $10.9 million and non-interest income of $4.0 million, as well as a decrease in the provision for loan losses of $16.1 million, partially offset by increases in non-interest expense of $11.2 million and tax expense of $6.6 million. The net interest margin increased 3 basis points to 3.46%. The allowance to total loans was 1.18% at both December 31, 2007 and 2006, while the net charge off ratio decreased from 1.32% to 0.19%. Non-performing assets increased $15.8 million to $25.6 million, while the allowance to non-performing loans decreased from 239% to 120%.
Returns on assets and equity were 0.94% and 9.50% for the fourth quarter of 2007 compared to 1.13% and 11.34% for the third quarter of 2007.
Fourth quarter 2007 results, as compared to third quarter 2007, included increases in the provision for loan losses of $1.6 million and non-interest expense of $0.5 million, partially offset by decreases in non-interest income of $0.1 million and income taxes of $0.9 million. Net interest income was $24.7 million for both the third and fourth quarters of 2007, while the net interest margin decreased 10 basis points to 3.42%. Commercial loans increased $75.4 million, or 19.9% annualized. This increase in loan volume offset the decline in net interest margin. Non-interest income was $10.3 million for the fourth quarter, compared to $10.4 million for the preceding quarter. The allowance to total loans increased 3 basis points to 1.18% while net charge offs increased 12 basis points to 0.25%. Non-performing assets increased $5.5 million, or 27.5%, while the allowance to non-performing loans decreased from 164% to 120%.
"During 2007, our industry saw the quick beginning and rapid acceleration of a credit cycle that has produced dramatic declines in housing starts, near record levels of home inventory, a decline in home prices and the highest mortgage delinquency rates in 20 years," stated Mike Vea, Chairman, President and CEO. "It resulted in higher levels of non-performing loans and net charge-offs and a 35% decline in the S&P Bank Index. Given that environment, we were pleased that we were able to maintain continued solid commercial loan growth, stable revenues, and low net charge-offs during the fourth quarter, even though our overall results fell short of our expectations. Our fourth quarter results were negatively impacted by increases in our non-performing loans, reflecting the slowdown among residential builders, as well as the short term impact of interest rate cuts. We believe we are well positioned going into 2008. We continue to improve our earning asset mix, grow our customer base and cross sell new products to our customers," added Vea.
Commercial and Direct Consumer Loan Growth Continues
Higher yielding commercial loan average balances increased $75.4 million during the fourth quarter, as compared to the preceding quarter, a 19.9% annualized growth rate. This growth came in the areas of commercial real estate and Cincinnati commercial. Commercial loan average balances were 53.2% of earning assets for the fourth quarter of 2007, up from 52.1% for the third quarter of 2007, and 41.7% for the fourth quarter of 2006.
Direct consumer loan average balances increased $4.6 million in the fourth quarter, or 11.3% annualized. The increases in commercial and direct consumer loans more than offset planned declines of $5.5 million in indirect consumer loans and residential mortgage loans of $18.3 million. Both the indirect and residential mortgage reductions were in line with the company's strategy to improve its earning asset mix and have been consistent throughout 2007.
"The continued success of our commercial real estate and commercial banking teams, coupled with strong direct consumer lending growth in our community markets, were the primary contributors to the improvement in our earning asset mix and overall earnings," stated Vea. "We are pleased with the returns on our continued investments in commercial banking and are confident that the new commercial bankers that we added during the second half of 2007 will help continue our momentum in 2008," Vea added.
Net Interest Margin and Net Interest Income
The net interest margin was 3.46% for 2007, a three basis point improvement over 2006. An increase in the yield on earning assets of 0.51% to 7.00%, was partially offset by an increase in the cost of interest bearing liabilities of 0.50%. Net interest income increased $10.9 million, or 13.3%, to $93.2 million. Average loan balances increased $346 million, due primarily to strong commercial growth coupled with the loans added by the Prairie acquisition. This growth was funded primarily by higher time deposit and transaction account balances.
The net interest margin for the fourth quarter of 2007 was 3.42%, compared to 3.52% for the third quarter of 2007, while net interest income was $24.7 million for both 2007 quarters. With the current rate environment, the company's $1.4 billion of floating rate loans repriced more quickly than floating rate liabilities, resulting in a reduction to net interest income. Higher yielding commercial loan balances offset the decrease in margin, resulting in stable net interest income.
Non-Interest Income
Non-interest income was $39.8 million for 2007, an increase of $4.0 million, or 11.1% from 2006. Non-interest income resulting from the Prairie acquisition was $1.1 million of this increase. Service charges on deposit accounts increased $1.4 million, or 7.6%, while debit card income increased $1.1 million, or 32.7%. Annuity income increased $0.3 million or 38.3%. Non-interest income also included a $0.6 million gain on the first quarter 2007 sale of the company's mortgage servicing rights portfolio.
Non-interest income was $10.3 million for the fourth quarter, compared to $10.4 million for the preceding quarter. Trading gains, mark-to-market adjustments and an increase in debit card income offset slight declines in deposit service charges, annuity income and securities gains.
Non-Interest Expense
Non-interest expense was $87.0 million for 2007, an increase of $11.2 million, or 14.7% from 2006. Higher expenses resulting from the Prairie acquisition contributed $4.9 million in direct costs and merger-related expenses. Personnel expense increased $5.9 million, or 14.7%, reflecting the addition of employees in the Chicago region, and other investments made within the commercial banking line of business. Occupancy expense increased $1.2 million, or 15.3%, due to the addition of the Chicago branches from the Prairie acquisition and the opening of a new banking center in the Greater Cincinnati metropolitan area.
Fourth quarter 2007 non-interest expense was $22.8 million, a $0.5 million, or 2.4% increase from the third quarter of 2007. Personnel expenses increased by $0.8 million, primarily due to higher health insurance costs and investments in personnel for the commercial banking line of business.
Credit Quality
The provision for loan losses was $4.2 million for 2007, compared to $20.3 million for 2006. Net charge-offs for 2007 totaled $4.1 million, compared to $23.5 million in 2006. Net charge-offs and the provision for loan losses for 2006 reflected the write-off of a single $17.7 million lending relationship.
The provision for loan losses was $2.3 million for the fourth quarter of 2007, compared to $0.7 million for the third quarter. Net charge-offs totaled $1.4 million, resulting in a net charge-off ratio of 0.25% for the fourth quarter, compared to $0.7 million or 0.13% for the third quarter. The year to date net charge-off ratio was 0.19%.
The allowance for loan losses at December 31, 2007, was 120% of non-performing and 1.18% of total loans, compared to 164% and 1.15% at September 30, 2007, and 239% and 1.18% at December 31, 2006. The ratio of non-performing loans to total loans at December 31, 2007, was 0.98%, compared to 0.70% at September 30, 2007, and 0.49% at December 31, 2006. Non-performing loans in the company's Chicago region represented approximately 60% of the company's total non-performing loans at December 31, 2007. Non-performing loans increased $6.6 million from September 30, 2007, while other real estate owned declined $1.1 million.
"Our loan portfolio is not immune to the challenges facing our industry," stated Mike Vea, Chairman, President and CEO. "We experienced an increase in non-performing assets due primarily to our residential builder portfolio, which is located predominately in our Chicago region. Our levels of non-performing assets remain below peer levels, which we expect to continue, largely due to the economic conditions of our footprint, which does not experience the highs and lows that many other regions of the country experience," added Vea.
Income Taxes
The effective tax rate for the fourth quarter of 2007 was 20.0%, while the rate for the year was 21.6%, and the rate for the third quarter was 24.0%. Income tax expense for 2007 included receipt of a federal income tax refund of $0.9 million. The effective rate for the year, exclusive of that refund, would have been 23.9%.
Capital
Integra's capital ratios remain strong, are within the regulatory requirements for being well capitalized as well as within Integra's internal policy guidelines, and were basically unchanged from September 30, 2007.
Definitive Agreement to Acquire Peoples Community Bancorp
On September 13, 2007, Integra announced that it had entered into a definitive agreement to acquire Peoples Community Bancorp, Inc. of Cincinnati, Ohio ("Peoples"). Peoples is the holding company for Peoples Community Bank, a federally chartered stock savings bank, with 19 offices and 24 ATMs in the Greater Cincinnati metropolitan area. Under the terms of the merger agreement, which has been approved by both companies' boards of directors, each share of Peoples stock will be converted into the right to receive 0.6175 shares of Integra common stock and $6.30 in cash. Based upon Integra's closing price on September 12, 2007 of $18.45 per share, the merger consideration is equivalent to $17.69 per share of Peoples common stock or $85.6 million in total. Integra will also pay approximately $0.7 million for Peoples stock options.
The transaction remains pending Peoples' shareholder approval, regulatory approvals and other customary closing conditions. Based upon financial data for Integra and Peoples as of September 30, 2007, the combined company will have approximately $4.2 billion in total assets, $3.1 billion in deposits and $3.0 billion in loans.
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, January 22, 2008, at 8:00 a.m. CST. The telephone number for the conference call is (877) 419-6592, confirmation code 7714686. The conference call will also be available by webcast at http://www.integrabank.com/webcasts.
About Integra
Headquartered in Evansville, Indiana, Integra Bank Corporation is the parent of Integra Bank N.A. As of December 31, 2007, Integra has $3.4 billion in total assets and operates 80 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 January 1, 2008, has IBNK outperforming 98.7% of the companies in the Russell 3000 Index and 98.3% 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. Factors that might cause such a difference include, but are not limited to: (1) general economic conditions, either national or in the markets in which Integra does business, are less favorable than expected; (2) changes in the interest rate environment that reduce net interest margin; (3) charge-offs and loan loss provisions; (4) the ability of Integra to maintain required capital levels and adequate sources of funding and liquidity; (5) changes and trends in capital markets; (6) competitive pressures among depository institutions increase significantly; (7) effects of critical accounting policies and judgments; (8) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; (9) legislative or regulatory changes or actions, or significant litigation that adversely affect Integra or the business in which Integra is engaged; (10) ability to attract and retain key personnel; (11) difficulties in combining the operations of Peoples; (12) ability to secure confidential information through the use of computer systems and telecommunications network; and (13) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity, 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 fourth quarter 2007 operating results:
Net income of $7.9 million for fourth quarter and $32.8 million for
the year ended December 31, 2007
-- Compared with $7.4 million, $8.3 million and $9.2 million for the
first, second and third quarters of 2007
-- Compared with $(2.6) million for fourth quarter 2006
-- Compared with $19.5 million for the year 2006
Diluted net income per share of $0.38 for fourth quarter and
$1.66 for the year ended December 31, 2007
-- Compared with $0.41, $0.41, and $0.45 for the first, second and
third quarters 2007
-- Compared with $(0.15) for fourth quarter 2006
-- Compared with $1.11 for the year 2006
Return on assets of 0.94% for fourth quarter and 1.06% for year 2007
-- Compared with 1.13% for third quarter 2007
-- Compared with (0.38)% for fourth quarter 2006
-- Compared with 0.72% for year 2006
Return on equity of 9.50% for fourth quarter and 10.92% for year 2007
-- Compared with 11.34% for third quarter 2007
-- Compared with (4.26)% for fourth quarter 2006
-- Compared with 8.50% for year 2006
Net interest margin of 3.42% for fourth quarter and 3.46% for
year 2007
-- Compared with 3.52% for third quarter 2007
-- Compared with 3.41% for fourth quarter 2006
-- Compared with 3.43% for year 2006
Allowance for loan losses of $27.3 million or 1.18% of loans at
December 31, 2007
-- Compared with $26.4 million or 1.15% at September 30, 2007
-- Compared with $21.2 million or 1.18% at December 31, 2006
-- Equaled 120.3% of non-performing loans at December 31, 2007,
compared with 164.5% at September 30, 2007 and 239.0% at
December 31, 2006
Non-performing loans of $22.7 million or 0.98% of loans at
December 31, 2007
-- Compared with $16.1 million or 0.70% of loans at
September 30, 2007
-- Compared with $8.9 million or 0.49% at December 31, 2006
Annualized net charge-off rate of 0.25% for fourth quarter and 0.19%
for year 2007
-- Compared with 0.13% for third quarter 2007
-- Compared with 4.03 % for fourth quarter 2006
-- Compared with 1.32% for full year 2006
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, December 31,
ASSETS 2007 2006
------------------------------------------------------------------
Cash and due from banks $ 72,360 $ 65,400
Federal funds sold and
other short-term
investments 3,630 3,998
Loans held for sale
(at lower of cost or
market value) 5,928 1,764
Securities available for sale 582,499 614,718
Securities held for trading 53,782 --
Regulatory stock 29,179 24,410
Loans:
Commercial loans 1,604,785 1,018,930
Consumer loans 423,481 421,957
Mortgage loans 283,112 350,089
Less: Allowance for
loan losses (27,261) (21,155)
------------------------------------------------------------------
Net loans 2,284,117 1,769,821
Premises and equipment 50,552 46,157
Goodwill 123,050 44,491
Other intangible assets 11,652 6,832
Other assets 133,458 106,888
------------------------------------------------------------------
TOTAL ASSETS $ 3,350,207 $ 2,684,479
==================================================================
LIABILITIES
Deposits:
Non-interest-bearing demand $ 265,554 $ 252,851
Savings & interest checking 516,925 497,548
Money market 401,098 296,732
Certificates of deposit and
other time deposits 1,156,560 906,721
------------------------------------------------------------------
Total deposits 2,340,137 1,953,852
Short-term borrowings 272,270 217,518
Long-term borrowings 376,707 254,521
Other liabilities 33,093 23,114
-------------------------------------------------------------------
TOTAL LIABILITIES 3,022,207 2,449,005
SHAREHOLDERS' EQUITY
Preferred stock - 1,000
shares authorized - None
outstanding
Common stock - $1.00 stated
value - 29,000 shares
authorized 20,650 17,794
Additional paid-in capital 206,991 135,054
Retained earnings 107,001 88,355
Accumulated other
comprehensive income (loss) (6,642) (5,729)
------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 328,000 235,474
------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 3,350,207 $ 2,684,479
==================================================================
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)
Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2007 2007 2007 2007 2006
---------------------------------------------------------------------
INTEREST INCOME
Interest and fees
on loans and leases $43,217 $43,586 $41,486 $32,130 $32,860
Interest and dividends
on securities
available for sale 7,313 7,294 7,495 7,289 7,521
Interest on securities
held for trading 364 -- -- -- --
Dividends on
regulatory stock 345 314 281 346 328
Interest on
loans held for sale 85 77 45 28 31
Interest on federal
funds sold and
other investments 60 56 60 49 62
---------------------------------------------------------------------
Total interest income 51,384 51,327 49,367 39,842 40,802
INTEREST EXPENSE
Interest on deposits 19,251 19,790 20,017 14,684 15,138
Interest on short-term
borrowings 2,501 2,648 2,264 2,018 2,147
Interest on long-term
borrowings 4,977 4,191 3,519 2,811 2,889
---------------------------------------------------------------------
Total interest expense 26,729 26,629 25,800 19,513 20,174
---------------------------------------------------------------------
NET INTEREST INCOME 24,655 24,698 23,567 20,329 20,628
Provision for
loan losses 2,280 723 455 735 18,091
---------------------------------------------------------------------
Net interest income
after provision for
loan losses 22,375 23,975 23,112 19,594 2,537
NON-INTEREST INCOME
---------------------------------------------------------------------
Service charges
on deposit accounts 5,283 5,408 5,408 4,218 4,842
Trust income 587 588 602 614 595
Debit card
income-interchange 1,284 1,136 1,064 895 954
Other service charges
and fees 1,039 1,286 1,133 1,204 939
Securities gains 8 219 56 166 589
Gain (Loss) on sale
of other assets 48 (5) 60 539 6
Other 2,015 1,755 1,608 1,579 1,518
---------------------------------------------------------------------
Total non-interest
income 10,264 10,387 9,931 9,215 9,443
NON-INTEREST EXPENSE
---------------------------------------------------------------------
Salaries and
employee benefits 12,104 11,319 11,693 10,765 9,564
Occupancy 2,461 2,474 2,388 2,107 2,143
Equipment 965 832 822 824 813
Professional fees 923 1,073 893 1,137 859
Communication
and transportation 1,466 1,490 1,303 1,171 1,218
Other 4,847 5,054 4,771 4,163 4,263
---------------------------------------------------------------------
Total
non-interest expense 22,766 22,242 21,870 20,167 18,860
---------------------------------------------------------------------
Income before
income taxes 9,873 12,120 11,173 8,642 (6,880)
Income taxes
expense (benefit) 1,970 2,914 2,840 1,286 (4,280)
---------------------------------------------------------------------
NET INCOME (LOSS) $ 7,903 $ 9,206 $ 8,333 $ 7,356 $(2,600)
---------------------------------------------------------------------
Earnings per share:
Basic $ 0.38 $ 0.45 $ 0.41 $ 0.42 $ (0.15)
Diluted 0.38 0.45 0.41 0.41 (0.15)
Weighted average
shares outstanding:
Basic 20,535 20,527 20,331 17,678 17,697
Diluted 20,542 20,545 20,407 17,786 17,864
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,
-------------------------------------------
2007 2006 2007 2006
---------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans
and leases $ 43,217 $ 32,860 $160,419 $125,504
Interest and dividends on
securities available for
sale 7,313 7,521 29,391 30,937
Interest on securities
held for trading 364 -- 364 --
Dividends on regulatory
stock 345 328 1,286 1,479
Interest on loans held for
sale 85 31 235 140
Interest on federal funds
sold and other
investments 60 62 225 333
---------------------------------------------------------------------
Total interest income 51,384 40,802 191,920 158,393
INTEREST EXPENSE
Interest on deposits 19,251 15,138 73,742 54,421
Interest on short-term
borrowings 2,501 2,147 9,431 8,574
Interest on long-term
borrowings 4,977 2,889 15,498 13,092
---------------------------------------------------------------------
Total interest expense 26,729 20,174 98,671 76,087
---------------------------------------------------------------------
NET INTEREST INCOME 24,655 20,628 93,249 82,306
Provision for loan losses 2,280 18,091 4,193 20,294
---------------------------------------------------------------------
Net interest income after
provision for loan losses 22,375 2,537 89,056 62,012
NON-INTEREST INCOME
---------------------------------------------------------------------
Service charges on deposit
accounts 5,283 4,842 20,317 18,879
Trust income 587 595 2,391 2,361
Debit card income-
interchange 1,284 954 4,379 3,301
Other service charges and
fees 1,039 939 4,662 4,155
Securities gains 8 589 449 577
Gain on sale of other
assets 48 6 642 93
Other 2,015 1,518 6,957 6,461
---------------------------------------------------------------------
Total non-interest income 10,264 9,443 39,797 35,827
NON-INTEREST EXPENSE
---------------------------------------------------------------------
Salaries and employee
benefits 12,104 9,564 45,881 39,990
Occupancy 2,461 2,143 9,430 8,182
Equipment 965 813 3,443 3,412
Professional fees 923 859 4,026 2,955
Communication and
transportation 1,466 1,218 5,430 4,933
Other 4,847 4,263 18,835 16,405
---------------------------------------------------------------------
Total non-interest expense 22,766 18,860 87,045 75,877
---------------------------------------------------------------------
Income before income taxes 9,873 (6,880) 41,808 21,962
Income taxes expense
(benefit) 1,970 (4,280) 9,010 2,415
---------------------------------------------------------------------
NET INCOME (LOSS) $ 7,903 $ (2,600) $ 32,798 $ 19,547
---------------------------------------------------------------------
Earnings per share:
Basic $ 0.38 $ (0.15) $ 1.66 $ 1.11
Diluted 0.38 (0.15) 1.66 1.11
Weighted average shares
outstanding:
Basic 20,535 17,697 19,778 17,546
Diluted 20,542 17,864 19,812 17,658
INTEGRA BANK CORPORATION
SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
(In thousands, except for per share data)
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2007 2007 2007 2007 2006
---------- ---------- ---------- ---------- ----------
EARNINGS DATA
Net Interest
Income (tax-
equivalent) $ 25,436 $ 25,495 $ 24,366 $ 20,945 $ 21,286
Net Income
(Loss) 7,903 9,206 8,333 7,356 (2,600)
Basic
Earnings
Per Share 0.38 0.45 0.41 0.42 (0.15)
Diluted
Earnings
Per Share 0.38 0.45 0.41 0.41 (0.15)
Dividends
Declared 0.18 0.18 0.18 0.17 0.17
Book Value 15.88 15.74 15.33 13.51 13.23
Tangible
Book Value 9.36 9.19 8.92 10.61 10.35
PERFORMANCE
RATIOS
Return on
Assets 0.94% 1.13% 1.04% 1.12% (0.38)%
Return on
Equity 9.50 11.34 10.71 12.62 (4.26)
Net Interest
Margin
(tax-
equivalent) 3.42 3.52 3.40 3.48 3.41
Tier 1
Capital to
Risk Assets 9.41 9.30 9.41 11.01 10.80
Capital to
Risk Assets 11.57 11.52 11.76 12.71 12.51
Tangible
Equity to
Tangible
Assets 6.01 5.96 5.97 7.20 6.99
Efficiency
Ratio 62.51 61.09 62.65 66.46 61.80
AT PERIOD END
Assets $3,350,207 $3,317,320 $3,214,362 $2,656,211 $2,684,479
Interest-
Earning
Assets 2,986,396 2,933,165 2,862,520 2,415,717 2,435,866
Commercial
Loans 1,604,785 1,572,013 1,467,730 1,040,004 1,018,930
Consumer
Loans 423,481 422,737 426,086 412,576 421,957
Mortgage
Loans 283,112 305,238 324,411 337,480 350,089
Total Loans 2,311,378 2,299,988 2,218,227 1,790,060 1,790,976
Deposits 2,340,137 2,383,953 2,415,619 1,995,728 1,953,852
Low Cost
Deposits (a) 782,479 779,234 791,587 742,645 750,399
Interest-
Bearing
Liabilities 2,723,560 2,664,101 2,585,213 2,141,347 2,173,040
Shareholders'
Equity 328,000 325,090 316,313 238,707 235,474
Unrealized
Gains
(Losses) on
Market
Securities
(FASB 115) (5,492) (4,171) (6,848) (3,294) (4,879)
AVERAGE
BALANCES
Assets $3,320,443 $3,232,918 $3,198,981 $2,658,785 $2,707,539
Interest-
Earning
Assets (b) 2,964,101 2,882,412 2,866,946 2,417,417 2,469,010
Commercial
Loans 1,576,840 1,501,430 1,425,439 1,021,373 1,028,889
Consumer
Loans 423,197 423,607 427,419 416,532 423,325
Mortgage
Loans 295,186 313,535 340,430 342,344 355,412
Total Loans 2,295,223 2,238,572 2,193,288 1,780,249 1,807,626
Deposits 2,375,759 2,377,662 2,435,682 1,980,454 2,016,184
Low Cost
Deposits (a) 780,531 794,157 799,513 738,439 742,090
Interest-
Bearing
Liabilities 2,683,304 2,595,245 2,572,178 2,148,320 2,187,665
Shareholders'
Equity 330,136 322,028 312,063 236,333 242,248
Basic Shares 20,535 20,527 20,331 17,678 17,697
Diluted
Shares 20,542 20,545 20,407 17,786 17,864
(a) Defined as interest checking, demand deposit and savings
accounts.
(b) 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)
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2007 2007 2007 2007 2006
-------- -------- -------- -------- --------
ASSET QUALITY
Non-Performing Assets:
Non Accrual Loans $18,549 $14,543 $12,975 $ 8,816 $ 8,625
Loans 90+ Days
Past Due 4,118 1,508 801 49 228
-------- -------- -------- -------- --------
Non-Performing Loans 22,667 16,051 13,776 8,865 8,853
Other Real
Estate Owned 2,923 4,016 3,563 1,246 936
-------- -------- -------- -------- --------
Non-Performing
Assets $25,590 $20,067 $17,339 $10,111 $ 9,789
======== ======== ======== ======== ========
Allowance for
Loan Losses:
Beginning Balance $26,401 $26,390 $21,165 $21,155 $21,403
Allowance Associated
with Acquisition -- -- 5,982 -- --
Provision for
Loan Losses 2,280 723 455 735 18,091
Recoveries 236 362 426 348 463
Loans Charged Off (1,656) (1,074) (1,638) (1,073) (18,802)
-------- -------- -------- -------- --------
Ending Balance $27,261 $26,401 $26,390 $21,165 $21,155
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Ratios:
Allowance for Loan
Losses to Loans 1.18% 1.15% 1.19% 1.18% 1.18%
Allowance for Loan
Losses to Average
Loans 1.19 1.18 1.20 1.19 1.17
Allowance to
Non-performing Loans 120.27 164.48 191.57 238.75 238.96
Non-performing
Loans to Loans 0.98 0.70 0.62 0.50 0.49
Non-performing
Assets to Loans and
Other Real
Estate Owned 1.11 0.87 0.78 0.56 0.55
Net Charge-Off Ratio 0.25 0.13 0.22 0.17 4.03
NET INTEREST MARGIN
Yields (tax-equivalent)
Loans 7.41% 7.67% 7.52% 7.25% 7.18%
Securities 5.34 5.28 5.16 5.17 5.17
Regulatory Stock 4.73 4.80 4.36 5.68 5.05
Other Earning Assets 5.59 6.16 4.60 5.92 5.68
-------- -------- -------- -------- --------
Total Earning Assets 7.00 7.19 7.01 6.76 6.64
Cost of Funds
Interest
Bearing Deposits 3.63 3.75 3.73 3.44 3.41
Other Interest
Bearing Liabilities 5.06 5.35 5.45 4.64 4.64
Total Interest
Bearing Liabilities 3.95 4.07 4.02 3.68 3.65
-------- -------- -------- -------- --------
Total Interest
Expense to
Earning Assets 3.58 3.67 3.61 3.28 3.23
-------- -------- -------- -------- --------
Net Interest Margin 3.42% 3.52% 3.40% 3.48% 3.41%
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