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Integra Bank Corporation Reports Second Quarter 2008 Results * Net Loss Per Diluted Share for Second Quarter of 2008 Was $(0.04) -- Year to Date Diluted Earnings Per Share are $0.20 * Second Quarter Loss Includes Securities Impairment Charge of $6.3 Million or $0.19 Per Diluted Share and Increased Provision From First Quarter of $2.4 Million * Net Interest Income Increases 7.0% From First Quarter as Margin Increases 20 Basis Points -- Expenses Flat With First Quarter * Non-Performing Loans Increase to 2.09% of Total Loans From 1.28% in First Quarter 2008 -- Net Charge-offs are 48 Basis Points for the Second Quarter, up 8 Basis Points From First Quarter 2008 -- Allowance for Loan Losses to Total Loans Increases to 1.32% At June 30, 2008 From 1.22% At March 31, 2008 EVANSVILLE, Ind., July 24, 2008 (PRIME NEWSWIRE) -- Integra Bank Corporation (NasdaqGM:IBNK - News) today reported a net loss for the second quarter of 2008 of $0.9 million, a decline of $5.9 million or 118.1% from the first quarter of 2008. Diluted earnings per share were ($0.04), compared to $0.24 for the first quarter of 2008. Returns on assets and equity were (0.11)% and (1.09)% for the second quarter of 2008, as compared to 0.59% and 6.01% for the first quarter of 2008. ``Our earnings were negatively impacted by current economic conditions, which led to an increased provision for loan losses and impairment charges on two investment securities,'' stated Mike Vea, Chairman, President and CEO. ``Declining home and real estate values and turmoil in the credit markets, coupled with negative consumer sentiment and the current economy have adversely impacted almost all financial institutions, including us,'' Vea added. ``We are seeing that impact in several areas, including net interest income because of a higher level of nonaccrual loans, the provision for loan losses, our securities portfolio and higher loan collection and portfolio management expenses. We are actively taking steps to manage through this difficult time and expect those steps to be successful.'' Second quarter 2008 results, as compared to first quarter 2008, included increases in the provision for loan losses of $2.4 million and non-interest expense of $0.1 million, as well as a decrease in non-interest income of $7.7 million. Partially offsetting these items were an increase in net-interest income of $1.6 million and lower tax expense of $2.6 million. Net interest income was $25.2 million for the second quarter of 2008, compared to $23.5 million for the first quarter of 2008, while the net interest margin increased 20 basis points to 3.43%. Commercial loans increased $64.3 million, or 15.8% annualized. This increase in loan volume, coupled with lower funding costs and low-cost deposit growth of $41.5 million, or 20.6% annualized, contributed to the increase in both the margin and net interest income. The provision for loan loss was $6.0 million for the second quarter of 2008, compared to $3.6 million for the first quarter of 2008. The allowance to total loans increased 10 basis points to 1.32% while net charge-offs increased 8 basis points to 0.48%. Non-performing loans increased $20.4 million, or 67.9%, to $50.5 million or 2.1% of total loans, while the allowance to non-performing loans decreased from 95% to 63%. Non-interest income was $3.0 million for the second quarter of 2008, compared to $10.7 million for the first quarter, and included a $6.3 million other than temporary impairment charge on two trust preferred investment securities. Deposit service charges increased $0.4 million, or 7.7%. Derivative losses were $0.4 million, compared to gains of $0.5 million during the first quarter. The first quarter also included non-recurring trading gains of $0.3 million. Non-interest expense for the second quarter of 2008 increased $0.1 million to $24.2 million from the first quarter of 2008, an increase of 0.9% annualized. The income tax rate for the second quarter of 2008 was 55.1%, compared to 23.5% for the first quarter. The rate is a function of the net loss, coupled with differences between book and taxable income and tax credits. The Company now estimates the tax rate for 2008 will be between 9% and 10%. The estimated rate declined as revised estimates of full year net and taxable income declined. Asset Quality The provision for loan loss was $6.0 million for the second quarter of 2008, compared to $3.6 million for the first quarter of 2008. Net charge-offs for the second quarter totaled $2.8 million, compared to $2.3 million in the first quarter of 2008. Net charge-offs for the second quarter of 2008 included $0.8 million of commercial, $0.7 million of commercial real estate and $0.4 million of indirect consumer loans, while the first quarter of 2008 included a $1.4 million loss on an automobile dealer floor plan. The year to date net charge-off ratio is 44 basis points. The allowance for loan losses at June 30, 2008, was 63% of non-performing and 1.32% of total loans, compared to 95% and 1.22% at March 31, 2008. The ratio of non-performing loans to total loans at June 30, 2008, was 2.09%, compared to 1.28% at March 31, 2008. The increase in non-performing loans came primarily from the Chicago region. Non-performing loans in the Chicago region represented approximately 67% of total non-performing loans at June 30, 2008, compared to 60% at March 31, 2008. Non-performing loans increased $20.4 million from March 31, 2008, while other real estate owned increased $2.7 million. Non-performing assets at June 30, 2008, increased $23.1 million, or 69.3% from March 31, 2008, to $56.4 million at June 30, 2008. Non-performing loans plus other real estate owned were 2.34% of total loans plus other real estate owned. Investment Securities During the second quarter, the Company recorded an other than temporary impairment charge of $6.3 million to reflect impairment on two trust preferred collateralized debt obligations classified as available for sale in the investment portfolio. The impairment reflects anticipated future disruptions in cash flows resulting from interest deferrals and the issuers failure to meet overcollateralization tests. The remaining $36.7 million of trust preferred securities in the portfolio continue to be rated as investment grade. Based on the facts that exist at June 30, 2008, the Company expects ultimate recovery from both securities if held to maturity, as the cumulative default rate must significantly increase to result in loss. Balance Sheet Commercial loans increased $64.3 million, or 15.8% annualized. This included growth in commercial real estate of $39.7 million, or 31.9% annualized, and construction and land development loans of $6.9 million, or 4.3% annualized. Direct consumer loans increased $4.9 million, or 11.6% annualized, while home equity loans increased $4.1 million, or 11.0% annualized. Low cost deposits increased by $41.5 million, or 20.6% annualized consisting of growth in non-interest bearing deposits of $12.8 million or 18.8% annualized, interest bearing checking accounts of $14.8 million or 15.0% annualized, and savings accounts of $13.9 million or 40.1% annualized. Capital Ratios Integra's capital ratios remain strong, are within the regulatory requirements for being well capitalized, and are within internal policy guidelines. The tier 1 capital to risk weighted asset ratio declined to 9.13%, compared to 9.37% at March 31, 2008. The total capital ratio to risk weighted assets ratio declined to 11.13%, from 11.51% at March 31, 2008 and the tangible equity to tangible assets ratio declined to 5.69%, from 6.03% at March 31, 2008. These declines resulted primarily as a result of the second quarter net loss, the quarterly dividend, and an increase in unrealized losses in the securities portfolio, as well as an increase in the deferred tax asset, which is not included in regulatory capital. Dividend The Company declared a quarterly cash dividend in the amount of eighteen cents ($0.18) per share payable on or about July 7, 2008, to shareholders of record at the close of business on June 30, 2008. Conference Call Integra executive management will hold a conference call to discuss the contents of this news release, business highlights and its financial outlook on Friday, July 25, 2008, at 8:00 a.m. CDT. The telephone number for the conference call is (877) 545-1407, confirmation code 2322145. The conference call will also be available by webcast at http://www.integrabank.com. About Integra Headquartered in Evansville, Indiana, Integra Bank Corporation is the parent of Integra Bank N.A. As of June 30, 2008, Integra has $3.4 billion in total assets and operates 80 banking centers and 136 ATMs at locations in Indiana, Kentucky, Illinois and Ohio. Moody's Investors Service has assigned an investment grade rating of A3 for Integra Bank's long-term deposits. Integra Bank Corporation's Corporate Governance Quotient (CGQ) rating as of July 1, 2008, has IBNK outperforming 96.0% of the companies in the Russell 3000 Index and 96.5% of the companies in the banking group. This rating is updated monthly by Institutional Shareholder Services and measures public companies' corporate governance performance to a set of corporate governance factors that reflects the current regulatory environment. Integra Bank Corporation's common stock is listed on the Nasdaq Global Market under the symbol IBNK. Additional information may be found at Integra's web site, http://www.integrabank.com. The Integra Bank Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3858 Safe Harbor Certain statements made in this release may constitute ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, the words ``may,'' ``will,'' ``should,'' ``would,'' ``anticipate,'' ``expect,'' ``plan,'' ``believe,'' ``intend,'' and similar expressions identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) the impact of current economic conditions, including disruptions in the housing and credit markets, either national or in the markets in which Integra does business; (2) changes in the interest rate environment that reduce net interest margin; (3) charge-offs and loan loss provisions; (4) the ability of Integra to maintain required capital levels and adequate sources of funding and liquidity; (5) the impact of problems affecting issuers of investment securities Integra holds; (6) changes and trends in capital markets; (7) competitive pressures among depository institutions that increase significantly; (8) effects of critical accounting policies and judgments; (9) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; (10) legislative or regulatory changes or actions, or significant litigation that adversely affect Integra or the business in which Integra is engaged; (11) ability to attract and retain key personnel; (12) ability to secure confidential information through the use of computer systems and telecommunications network; and (13) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity, and other factors described in our periodic reports filed with the SEC. We undertake no obligation to revise or update these risks, uncertainties and other factors except as may be set forth in our periodic reports. Summary Operating Results Data
Here is a summary of Integra's second quarter 2008 operating results:
Net income (loss) of $(0.9) million for second quarter 2008
* Compared with $5.0 million for the first quarter 2008
* Compared with $8.3 million for second quarter 2007
Diluted net income (loss) per share of $(0.04) for second quarter 2008
* Compared with $0.24 for the first quarter 2008
* Compared with $0.41 for second quarter 2007
Return on assets of (0.11)% for second quarter 2008
* Compared with 0.59% for first quarter 2008
* Compared with 1.04% for second quarter 2007
Return on equity of (1.09)% for second quarter 2008
* Compared with 6.01% for first quarter 2008
* Compared with 10.71% for second quarter 2007
Net interest margin of 3.43% for second quarter 2008
* Compared with 3.23% for first quarter 2008
* Compared with 3.40% for second quarter 2007
Allowance for loan losses of $31.8 million or 1.32% of loans
at June 30, 2008
* Compared with $28.6 million or 1.22% at March 31, 2008
* Compared with $26.4 million or 1.19% at June 30, 2007
* Equaled 63.0% of non-performing loans at June 30, 2008, compared
with 95.1% at March 31, 2008 and 191.6% at June 30, 2007
Non-performing loans of $50.5 million or 2.09% of loans at
June 30, 2008
* Compared with $30.1 million or 1.28% of loans at March 31, 2008
* Compared with $13.8 million or 0.62% at June 30, 2007
Annualized net charge-off rate of 0.48% for second quarter 2008
* Compared with 0.40% for first quarter 2008
* Compared with 0.22% for second quarter 2007
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
June 30, December 31, June 30,
ASSETS 2008 2007 2007
---------------------------------------------------------------------
Cash and due from banks $ 92,114 $ 72,360 $ 72,058
Federal funds sold and other
short-term investments 8,529 3,630 3,744
Loans held for sale (at lower
of cost or market value) 6,045 5,928 5,437
Securities available for sale 565,459 582,954 609,145
Securities held for trading -- 53,782 --
Regulatory stock 29,181 29,179 25,967
Loans:
Commercial loans 1,744,943 1,604,785 1,467,730
Consumer loans 427,952 423,481 426,086
Mortgage loans 237,102 283,112 324,411
Less: Allowance for loan
losses (31,780) (27,261) (26,390)
---------------------------------------------------------------------
Net loans 2,378,217 2,284,117 2,191,837
Premises and equipment 49,758 50,552 51,497
Goodwill 122,824 123,050 119,775
Other intangible assets 10,790 11,652 12,561
Other assets 138,293 132,922 122,341
---------------------------------------------------------------------
TOTAL ASSETS $ 3,401,210 $ 3,350,126 $ 3,214,362
=====================================================================
LIABILITIES
Deposits:
Non-interest-bearing demand $ 304,549 $ 265,554 $ 281,028
Savings & interest checking 563,853 516,925 510,559
Money market 386,341 401,098 394,844
Certificates of deposit and
other time deposits 1,068,905 1,156,560 1,229,188
---------------------------------------------------------------------
Total deposits 2,323,648 2,340,137 2,415,619
Short-term borrowings 370,913 272,270 207,863
Long-term borrowings 359,591 376,707 242,759
Other liabilities 27,594 33,208 31,808
--------------------------------------------------------------------
TOTAL LIABILITIES 3,081,746 3,022,322 2,898,049
SHAREHOLDERS' EQUITY
Preferred stock - 1,000 shares
authorized - None outstanding
Common stock - $1.00 stated
value - 29,000 shares
authorized 20,759 20,650 20,629
Additional paid-in capital 207,802 206,991 206,114
Retained earnings 99,610 104,913 97,326
Accumulated other comprehensive
income (loss) (8,707) (4,750) (7,756)
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TOTAL SHAREHOLDERS' EQUITY 319,464 327,804 316,313
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 3,401,210 $ 3,350,126 $ 3,214,362
=====================================================================
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)
Three Months Ended
June 30, March 31, Dec. 31, Sept. 30, June 30,
2008 2008 2007 2007 2007
---------------------------------------------------------------------
INTEREST INCOME
Interest and fees on
loans and leases $35,777 $38,782 $43,217 $43,586 $41,486
Interest and
dividends on
securities available
for sale 6,909 7,267 7,313 7,294 7,495
Interest on securities
held for trading 45 525 364 -- --
Dividends on
regulatory stock 409 376 345 314 281
Interest on loans held
for sale 90 103 85 77 45
Interest on federal
funds sold and other
investments 30 38 60 56 60
---------------------------------------------------------------------
Total interest income 43,260 47,091 51,384 51,327 49,367
INTEREST EXPENSE
Interest on deposits 12,851 16,392 19,251 19,790 20,017
Interest on short-term
borrowings 1,955 2,166 2,501 2,648 2,264
Interest on long-term
borrowings 3,288 5,015 4,977 4,191 3,519
---------------------------------------------------------------------
Total interest
expense 18,094 23,573 26,729 26,629 25,800
---------------------------------------------------------------------
NET INTEREST INCOME 25,166 23,518 24,655 24,698 23,567
Provision for loan
losses 6,003 3,634 2,280 723 455
---------------------------------------------------------------------
Net interest income
after provision for
loan losses 19,163 19,884 22,375 23,975 23,112
NON-INTEREST INCOME
---------------------------------------------------------------------
Service charges on
deposit accounts 5,059 4,699 5,283 5,408 5,408
Trust income 554 559 587 588 602
Debit card income-
interchange 1,376 1,243 1,284 1,136 1,064
Other service charges
and fees 1,315 1,579 1,039 1,286 1,133
Securities gains
(losses) (6,299) 24 (2,718) 219 56
Gain (Loss) on sale of
other assets (12) -- 48 (5) 60
Other 1,019 2,630 2,015 1,755 1,608
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Total non-interest
income 3,012 10,734 7,538 10,387 9,931
NON-INTEREST EXPENSE
---------------------------------------------------------------------
Salaries and employee
benefits 12,446 12,394 12,104 11,319 11,693
Occupancy 2,541 2,560 2,461 2,474 2,388
Equipment 955 928 965 832 822
Professional fees 1,086 984 1,509 1,073 893
Communication and
transportation 1,602 1,456 1,466 1,490 1,303
Other 5,547 5,799 4,866 5,054 4,771
---------------------------------------------------------------------
Total non-interest
expense 24,177 24,121 23,371 22,242 21,870
---------------------------------------------------------------------
Income (Loss) before
income taxes (2,002) 6,497 6,542 12,120 11,173
Income taxes expense
(benefit) (1,103) 1,524 727 2,914 2,840
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NET INCOME (LOSS) $ (899) $ 4,973 $ 5,815 $ 9,206 $ 8,333
---------------------------------------------------------------------
Earnings (Loss) per
share:
Basic $ (0.04) $ 0.24 $ 0.28 $ 0.45 $ 0.41
Diluted (0.04) 0.24 0.28 0.45 0.41
Weighted average
shares outstanding:
Basic 20,554 20,537 20,535 20,527 20,331
Diluted 20,561 20,544 20,542 20,545 20,407
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------
2008 2007 2008 2007
---------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans and
leases $35,777 $41,486 $74,559 $73,616
Interest and dividends on securities
available for sale 6,909 7,495 14,176 14,784
Interest on securities held for
trading 45 -- 570 --
Dividends on regulatory stock 409 281 785 627
Interest on loans held for sale 90 45 193 73
Interest on federal funds sold and
other investments 30 60 68 109
---------------------------------------------------------------------
Total interest income 43,260 49,367 90,351 89,209
INTEREST EXPENSE
Interest on deposits 12,851 20,017 29,243 34,701
Interest on short-term borrowings 1,955 2,264 4,121 4,282
Interest on long-term borrowings 3,288 3,519 8,303 6,330
---------------------------------------------------------------------
Total interest expense 18,094 25,800 41,667 45,313
---------------------------------------------------------------------
NET INTEREST INCOME 25,166 23,567 48,684 43,896
Provision for loan losses 6,003 455 9,637 1,190
---------------------------------------------------------------------
Net interest income after provision
for loan losses 19,163 23,112 39,047 42,706
NON-INTEREST INCOME
---------------------------------------------------------------------
Service charges on deposit accounts 5,059 5,408 9,758 9,626
Trust income 554 602 1,113 1,216
Debit card income-interchange 1,376 1,064 2,619 1,959
Other service charges and fees 1,315 1,133 2,894 2,337
Securities gains (losses) (6,299) 56 (6,275) 222
Gain (Loss) on sale of other assets (12) 60 (12) 599
Other 1,019 1,608 3,649 3,187
---------------------------------------------------------------------
Total non-interest income 3,012 9,931 13,746 19,146
NON-INTEREST EXPENSE
---------------------------------------------------------------------
Salaries and employee benefits 12,446 11,693 24,840 22,458
Occupancy 2,541 2,388 5,101 4,495
Equipment 955 822 1,883 1,646
Professional fees 1,086 893 2,070 2,030
Communication and transportation 1,602 1,303 3,058 2,474
Other 5,547 4,771 11,346 8,934
---------------------------------------------------------------------
Total non-interest expense 24,177 21,870 48,298 42,037
---------------------------------------------------------------------
Income (Loss) before income taxes (2,002) 11,173 4,495 19,815
Income taxes expense (benefit) (1,103) 2,840 421 4,126
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NET INCOME (LOSS) $ (899) $ 8,333 $ 4,074 $15,689
---------------------------------------------------------------------
Earnings (Loss) per share:
Basic $ (0.04) $ 0.41 $ 0.20 $ 0.83
Diluted (0.04) 0.41 0.20 0.82
Weighted average shares outstanding:
Basic 20,554 20,331 20,545 19,012
Diluted 20,561 20,407 20,569 19,107
INTEGRA BANK CORPORATION
SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
(In thousands, except for per share data)
June 30, March 31, Dec. 31, Sept. 30, June 30,
2008 2008 2007 2007 2007
---------- ---------- ---------- ---------- ----------
EARNINGS DATA
Net Interest
Income (tax-
equivalent) $ 25,821 $ 24,268 $ 25,436 $ 25,495 $ 24,366
Net Income
(Loss) (899) 4,973 5,815 9,206 8,333
Basic Earnings
Per Share (0.04) 0.24 0.28 0.45 0.41
Diluted
Earnings Per
Share (0.04) 0.24 0.28 0.45 0.41
Dividends
Declared 0.18 0.18 0.18 0.18 0.18
Book Value 15.39 16.03 15.87 15.74 15.33
Tangible Book
Value 8.95 9.54 9.35 9.19 8.92
PERFORMANCE
RATIOS
Return on
Assets (0.11)% 0.59% 0.69% 1.13% 1.04%
Return on
Equity (1.09) 6.01 6.99 11.34 10.71
Net Interest
Margin (tax-
equivalent) 3.43 3.23 3.42 3.52 3.40
Tier 1
Capital to
Risk Assets 9.13 9.37 9.34 9.30 9.41
Capital to
Risk Assets 11.13 11.51 11.52 11.52 11.76
Tangible
Equity to
Tangible
Assets 5.69 6.03 6.01 5.96 5.97
Efficiency
Ratio 67.59 67.73 64.20 61.09 62.65
AT PERIOD END
Assets $3,401,210 $3,400,610 $3,350,126 $3,317,320 $3,214,362
Interest-
Earning
Assets 3,019,211 3,013,161 2,986,851 2,933,165 2,862,520
Commercial
Loans 1,744,943 1,660,472 1,604,785 1,572,013 1,467,730
Consumer
Loans 427,952 419,577 423,481 422,737 426,086
Mortgage
Loans 237,102 260,701 283,112 305,238 324,411
Total Loans 2,409,997 2,340,750 2,311,378 2,299,988 2,218,227
Deposits 2,323,648 2,308,123 2,340,137 2,383,953 2,415,619
Low Cost
Deposits (1) 868,402 851,786 782,479 779,234 791,587
Interest-
Bearing
Liabilities 2,749,603 2,739,957 2,723,560 2,664,101 2,585,213
Shareholders'
Equity 319,464 331,150 327,804 325,090 316,313
Unrealized
Gains
(Losses)
on Market
Securities
(FASB 115) (7,737) (334) (3,600) (4,171) (6,848)
AVERAGE
BALANCES
Assets $3,371,944 $3,373,865 $3,320,443 $3,232,918 $3,198,981
Interest-
Earning
Assets (2) 3,022,425 3,017,241 2,964,101 2,882,412 2,866,946
Commercial
Loans 1,704,492 1,640,194 1,576,840 1,501,430 1,425,439
Consumer
Loans 422,804 420,365 423,197 423,607 427,419
Mortgage
Loans 250,449 272,500 295,186 313,535 340,430
Total Loans 2,377,745 2,333,059 2,295,223 2,238,572 2,193,288
Deposits 2,307,609 2,328,697 2,375,759 2,377,662 2,435,682
Low Cost
Deposits (1) 850,448 808,935 780,531 794,157 799,513
Interest-
Bearing
Liabilities 2,728,433 2,734,006 2,683,304 2,595,245 2,572,178
Shareholders'
Equity 330,587 333,085 330,136 322,028 312,063
Basic Shares 20,554 20,537 20,535 20,527 20,331
Diluted
Shares 20,561 20,544 20,542 20,545 20,407
(1) Defined as interest checking, demand deposit and savings accounts.
(2) Includes securities available for sale and held for trading at
amortized cost.
INTEGRA BANK CORPORATION
SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA-con't
(In thousands, except ratios and yields)
June 30, March 31, Dec. 31, Sept. 30, June 30,
2008 2008 2007 2007 2007
------- -------- ------- -------- -------
ASSET QUALITY
Non-Performing Assets:
Non Accrual Loans $50,162 $27,517 $18,549 $14,543 $12,975
Loans 90+ Days
Past Due 312 2,544 4,118 1,508 801
------- -------- ------- -------- -------
Non-Performing
Loans 50,474 30,061 22,667 16,051 13,776
Other Real Estate
Owned 5,940 3,267 2,923 4,016 3,563
------- -------- ------- -------- -------
Non-Performing
Assets $56,414 $33,328 $25,590 $20,067 $17,339
======= ======== ======= ======= =======
Allowance for Loan
Losses:
Beginning Balance $28,590 $27,261 $26,401 $26,390 $21,165
Allowance Associated
with Acquisition -- -- -- -- 5,982
Provision for
Loan Losses 6,003 3,634 2,280 723 455
Recoveries 315 448 236 362 426
Loans Charged
Off (3,128) (2,753) (1,656) (1,074) (1,638)
------- -------- ------- -------- -------
Ending Balance $31,780 $28,590 $27,261 $26,401 $26,390
======= ======== ======= ======= =======
Ratios:
Allowance for Loan
Losses to Loans 1.32% 1.22% 1.18% 1.15% 1.19%
Allowance for Loan
Losses to Average
Loans 1.34 1.23 1.19 1.18 1.20
Allowance to
Non-performing
Loans 62.96 95.11 120.27 164.48 191.57
Non-performing
Loans to Loans 2.09 1.28 0.98 0.70 0.62
Non-performing
Assets to Loans and
Other Real Estate
Owned 2.34 1.42 1.11 0.87 0.78
Net Charge-Off
Ratio 0.48 0.40 0.25 0.13 0.22
NET INTEREST MARGIN
Yields (tax-equivalent)
Loans 5.99% 6.61% 7.41% 7.67% 7.52%
Securities 5.01 5.28 5.34 5.28 5.16
Regulatory Stock 5.61 5.15 4.73 4.80 4.36
Other Earning Assets 3.89 4.93 5.59 6.16 4.60
------- -------- ------- -------- -------
Total Earning
Assets 5.84 6.37 7.00 7.19 7.01
Cost of Funds
Interest Bearing
Deposits 2.56 3.21 3.63 3.75 3.73
Other Interest
Bearing Liabilities 2.95 4.19 5.06 5.35 5.45
Total Interest
Bearing
Liabilities 2.67 3.47 3.95 4.07 4.02
------- -------- ------- -------- -------
Total Interest
Expense to
Earning Assets 2.41 3.14 3.58 3.67 3.61
------- -------- ------- -------- -------
Net Interest Margin 3.43% 3.23% 3.42% 3.52% 3.40%
======= ======== ======= ======= =======
Contact: Integra Bank Corporation
Mike Vea, Chairman, President and CEO
812-464-9604
Martin Zorn, CFO, EVP-Finance and Risk
812-461-5794
Shareholder Relations
Gretchen Dunn
812-464-9677
http://www.integrabank.com
Source: Integra Bank Corporation
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