As part of a larger strategy to improve its bottom line, Evansville-based Integra Bank Corp. plans to sell eight of its Indiana and Kentucky branches to First Security Bank of Owensboro.
The sale, announced last week, involves five offices in Bowling Green and Franklin, Ky.; and one office each in the Indiana communities of Paoli, Mitchell and Bedford.
As part of the deal, First Security will assume about $188.2 million of deposit liabilities related to these branches.
It will also acquire $74.8 million of branch-related loans, $38.4 million of additional commercial real estate, $2.0 million of other commercial loans and $56.9 million of indirect consumer loans selected by First Security that originated at other Integra offices.
In a news release, Integra’s Chairman and Chief Executive Officer, Michael Alley, said the deal will help Integra “accelerate our return to profitability.”
Integra’s financial report, released Friday, showed that the company lost $195 million in 2009. The report also outlined a four-pronged strategy for improving its finances.
Part of that strategy includes selling off clusters of branch locations in order to reduce Integra’s operating footprint.
This is the third group of branch sales Integra has announced this year, and Alley said the bank expects to announce more sales in the next 90 days.
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