Evansville-based
Integra Bank will sell another group of its branch offices in an effort to improve its bottom line.
Integra plans to sell two of its Kentucky branches and two of its Ohio branches to West Virginia-based Citizens Deposit Bank and Trust, the companies announced Thursday.
Citizens will assume about $73.4 million of deposit liabilities and $18.3 million of loans related to the four branches. It will also assume $38.1 million in commercial real estate loans and $10.6 million worth of other commercial loans that Citizens selected from other Integra offices.
In a separate agreement, Citizens will also purchase $15 million in commercial loans at 98 percent of their outstanding principal balance.
Pending regulatory approval, the deal is expected to close in the third quarter of this year.
Citizens will pay an estimated deposit premium of 3.38 percent for the deposit liabilities it assumes, and it will acquire the commercial and commercial real estate loans at par value. The bank offices and fixed assets will be sold at book value.
This marks the fifth branch sale Integra has announced this year and the second this week. None of the deals has yet closed. Taken together, those five sales agreements include 20 branch offices.
As of Dec. 31, Integra operated 69 banking centers and 118 automatic teller machines in Indiana, Kentucky, Illinois and Ohio.
Integra’s Chairman and Chief Executive Officer, Michael Alley, said the bank intends to announce additional sales this year.
Alley said the sales are part of Integra’s strategy to return to profitability by exiting the commercial real estate loan market and refocusing on community banking within a smaller geographic footprint.
In the fourth quarter of 2009, Integra posted a loss of $96.1 million. The bank lost $195 million for the year as a whole.
Similar Posts:
- Evansville-based Integra sells four branches in Ky., Ohio
- Evansville-based Integra sells three Ky. offices
- Evansville-based Integra eliminates four positions
- Evergreen Bank CD Rates
- Old National’s planned merger with Bloomington, Ind. bank gets federal approval
