EVANSVILLE, Ind., Sept. 24, 2010 (GLOBE NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) announced the closing of the sale of three branches of its wholly-owned bank subsidiary, Integra Bank N.A. ("Integra Bank"), to FNB Bank, Inc. ("FNB"), a wholly-owned subsidiary of Jackson Financial Corporation. Two of the banking offices are located in Cadiz, Kentucky and the third is located in Mayfield, Kentucky. In addition, the transaction included the sale of a group of commercial, agricultural and commercial real estate loans to FNB.
FNB assumed approximately $119.7 million of deposit liabilities related to the three branches and acquired $27.8 million of branch related loans, as well as $43.7 million of additional commercial, agricultural and commercial real estate loans selected by FNB that were originated in other Integra offices.
FNB paid a net deposit premium of 5.09% for the deposit liabilities it assumed. The deposit premium paid was approximately $6.0 million. The banking office premises were sold at their book values.
The transaction increased Integra Bank's tier 1 and total risk based capital ratios by approximately 75 basis points, while increasing its tier 1 leverage ratio by approximately 35 basis points. The transaction also increased the holding company's tangible common equity to tangible assets ratio by approximately 25 basis points.
Michael J. Alley, Chairman and Chief Executive Officer of Integra Bank Corporation commented, "We are pleased to complete this transaction within the original timeframe and anticipate a seamless transition of our customers in these three branches to FNB. The successful closure of this transaction represents the last of the five transactions we have announced in 2010 and I am very pleased with the execution efforts of our associates involved in these divestitures. This strategy has greatly strengthened our capital and resulted in narrowing our geographic operating footprint to 48 branches all within 100 miles of Evansville, plus four branches in the Chicago area we continue to market for eventual sale. This clearly positions us very well for the execution of the next stage of our recovery plans."
Forward-Looking Statements
This press release contains statements about the sale of additional branch offices and the impact of those sales and other strategies on both Integra Bank and Integra Bank Corporation. These statements are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions. Forward-looking statements are not guarantees of future performance. These statements are based upon current expectations, forecasts and assumptions that are subject to risks, uncertainties and other factors that could cause actual outcomes and results to differ materially from those indicated by these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the satisfaction of customary closing conditions set forth in the various agreements between the parties, including the receipt of regulatory approval for in-process branch sales, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in Integra Bank Corporation's respective filings with the Securities and Exchange Commission.
About Integra Bank Corporation
Headquartered in Evansville, Indiana, Integra Bank Corporation is the parent of Integra Bank N.A. As of June 30, 2010, Integra Bank has $3.0 billion in total assets. Integra operates 52 banking centers and 101 ATMs at locations in Indiana, Kentucky and Illinois. Integra Bank Corporation's common stock is listed on the Nasdaq Global Market under the symbol IBNK. Additional information may be found at www.integrabank.com.
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