Integra Bank And First Security Bank Announce Termination Of Agreement To Purchase 3 Indiana Branches

EVANSVILLE, Ind. and OWENSBORO, Ky., Aug. 17, 2010 (GLOBE NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK) ("Integra") and First Security Inc. announced today that the agreement entered into by First Security Bank of Owensboro, Inc. ("First Security"), the wholly-owned subsidiary of First Security Inc., to purchase three Indiana banking offices of Integra's wholly-owned bank subsidiary, Integra Bank N.A. ("Integra Bank") has been terminated. The banking offices are in Paoli, Mitchell and Bedford, Indiana. In addition, First Security will no longer acquire a pool of indirect consumer, commercial, and commercial real estate loans from Integra Bank.

The sale of the three Indiana branches was the second phase of an agreement reached in March 2010. In the first phase, First Security purchased five banking offices in the Bowling Green and Franklin, Kentucky markets from Integra on July 22, 2010 along with a pool of indirect consumer, commercial, and commercial real estate loans. The second phase of the transaction was subject to First Security's ability to raise sufficient capital to meet regulatory approval requirements. First Security has advised Integra today that it would not complete the capital raise by the agreed upon deadline and exercised its right to terminate the agreement. First Security will pay Integra Bank a termination fee as a result of the termination.

Michael J. Alley, Chairman and Chief Executive Officer of Integra, commented, "We are disappointed that First Security is not in a position to complete this part of the transaction. However, these banking offices were a minor component of a comprehensive branch divestiture strategy under which we have sold a total of 10 banking offices so far in 2010. We plan to retain these banking centers as part of our core community banking franchise and will not market them to other prospective buyers." Alley further stated, "We remain on track to complete the sale of four banking offices to Citizens Deposit Bank and three banking offices to FNB Bank during the third quarter as previously announced."