This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

United Community Bank And Integra Bank Announce Agreement For Purchase Of Branches And Loans From Integra

LAWRENCEBURG and EVANSVILLE, Ind., Feb. 1 /PRNewswire-FirstCall/ -- United Community Bancorp (Nasdaq: UCBA) and Integra Bank Corporation (Nasdaq: IBNK) announced today that United Community Bank ("United"), the wholly-owned subsidiary of United Community Bancorp, has agreed to purchase three banking offices of Integra Bank Corporation's wholly-owned bank subsidiary, Integra Bank N.A. ("Integra").  The offices are located in Milan, Osgood and Versailles, Indiana. In addition, United has agreed to acquire a group of commercial and residential mortgage loans from Integra.

United will assume approximately $54.4 million of deposit liabilities related to the three branches, as well as $38.6 million of branch loans and $12.3 million of additional commercial and residential mortgage loans selected by United that were originated in other Integra offices.  

United will pay a 4.50% deposit premium for the deposit liabilities it assumes, with the exception of municipal deposits that are issued after the date of the agreement which will be acquired at par, while the loans will be acquired at their outstanding principal balance.  United will not assume any brokered deposits or Keogh accounts in the transaction. The three banking office premises will be sold at their fair market value and all other fixed assets will be sold at their book values.  Both Integra and United expect that the transaction will have a minimal impact on the liquidity of either company, as it has been designed to be liquidity neutral, meaning that minimal cash is expected to exchange hands.  The transactions are subject to customary conditions, including regulatory approval. The parties expect the branch purchase transaction to close in the first half of 2010.  

William F. Ritzmann, President and Chief Executive Officer of United, stated, "We are excited about this opportunity to expand our banking operations into neighboring Ripley County.  Customers of the branches should know that we are working diligently with Integra so that the transition will be seamless to them.  We are also very pleased that, following initial transaction expenses, this transaction is expected to be immediately accretive to earnings per share for United Community Bancorp's shareholders once the transaction closes."  

Following completion of this transaction, United will have nine Indiana branches - four in Lawrenceburg; one in Aurora; one in St. Leon; one in Osgood; one in Milan; and one in Versailles.  Upon the completion of the transaction, United is expected to have approximately $450 million in assets and $390 million in deposits.

Michael J. Alley, Chairman and Chief Executive Officer of Integra commented, "We are pleased to work with the team at United Community Bank to complete this transaction.  Our Integra associates in Milan, Osgood and Versailles have done a great job serving their customers and I am confident that this will continue."

Alley also stated, "This divestiture enhances our capital and is part of a multi-step strategy we are executing that will improve our capital and liquidity positions, reduce our credit risk and accelerate our return to profitability.  We expect to execute additional branch sales in 2010, as well as sales of both non-performing and performing loans.  Based upon letters of intent we have received from other institutions who have performed or are currently performing due diligence, we expect to announce additional agreements for sales in the next 90 days that will provide additional capital and narrow our operating footprint."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,106.31 -7.23 -0.04%
S&P 500 1,988.74 +5.21 0.26%
NASDAQ 4,478.1290 +22.1130 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs