Integra Bank Announces Completion Of Sale Of Branches And Loans To FNB Bank

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."