Integra Bank Corp. (IBNK) filed Quarterly Report for the period ended 2009-09-30.
Integra Bank Corporation is the parent of Integra Bank N.A. which currently operates in Indiana Kentucky Illinois and Ohio. Integra Bank N.A. is committed to providing the highest level of customer service to its retail small business and corporate customers through its network of 77 banking centers 130 ATMs and its online banking services. For retail customers Integra Bank N.A. offers telephone and Internet banking through its BANK ANYTIME service. Integra also offers Business BankNET online banking for its business customers. Integra Bank Corp. has a market cap of $17.6 million; its shares were traded at around $0.8398 with and P/S ratio of 0.1. Integra Bank Corp. had an annual average earning growth of 31% over the past 5 years.
Highlight of Business Operations:
The net loss available for common shareholders for the third quarter of 2009 was $20,852, or $1.01 per share, compared to $49,603, or $2.39 per share, for the second quarter of 2009 and $33,327 or $1.62 per share during the third quarter of 2008. The provision for loan losses was $18,913, while net-charge-offs totaled $21,858, or 3.74% of total loans on an annualized basis. Net charge-offs included $1,258 of charge-offs related to a program designed to obtain early repayment of commercial real estate loans. Net charge-offs also included $1,848 of gross charge-offs related to both loans sold during the third quarter of 2009, and loans transferred to loans held for sale at September 30, 2009.
The net loss for the second and third quarters of 2009 include $1,117 and $1,139 of dividends on the preferred shares sold to the Treasury Department in February 2009 under the CPP and discount accretion on the related warrant issued to the Treasury. The net loss for the third quarter also includes securities gains of $6,578, partially offset by trading losses of $1,237, as well as an increase in the income tax valuation allowance associated with our deferred tax asset of $6,853. The net loss for the second quarter included an other-than-temporary securities impairment (OTTI) charge of $20,314, an increase of $13,489 in the income tax valuation allowance, a special 5 basis point FDIC assessment of $1,623 and a $1,407 non-tax deductible mark to market adjustment for the warrant that reduced earnings.
Non-interest income was $14,827 for the third quarter of 2009, compared to $(10,984) for the second quarter of 2009. The third quarter of 2009 included $6,578 of securities gains and $1,237 of trading losses. The second quarter of 2009 included an OTTI charge on securities of $20,314, securities gains from sales of $1,479, and a $1,407 reduction to non-interest income for a mark-to-market adjustment for the Treasury warrant. Deposit service charges increased $300 during the third quarter of 2009 from the second quarter of 2009, while debit card interchange income declined $5.
Non-interest expense was $24,369 for the third quarter of 2009, compared to $29,169 for the second quarter of 2009. Decreases during the third quarter of 2009 compared to the second quarter included debt prepayment penalties of $1,484, personnel expense of $1,374, FDIC insurance of $1,284, professional fees of $358 and low income housing partnership losses of $313. These decreases offset an increase in loan and other real estate owned expense of $657.
Total assets decreased $87,937 during the third quarter of 2009. During the third quarter, we sold $105,718 of agency issued CMOs, $65,812 of mortgage backed securities, and $54,261 of municipal securities at a gain of $6,578. A portion of the proceeds from these sales were used to purchase $170,651 of GNMA securities, which carry a zero percent risk weight, therefore lowering risk weighted assets and improving our total risk based capital ratios. The repositioning improved the Bank’s total risk based capital ratio by approximately 45 basis points. Total securities decreased $92,156 while total loans decreased $143,811. The decrease in loans included early payoffs from our commercial real estate discount program of $14,576, the sale of $49,545 of commercial loans to The Bank of Kentucky, net charge-offs of $21,858, transfers to loans held for sale of $32,984 and other net paydowns or payoffs totaling $26,696.
Commercial loan average balances decreased $67,912 in the third quarter of 2009, or 14.9% on an annualized basis. This included declines in construction land and development loan balances of $119,832 and commercial and industrial loans of $18,372, partially offset by an increase in commercial real estate loans of $70,291. The shift out of construction and land development loans to commercial real estate loans reflects the completion of construction for several of the projects securing these loans, net of payoffs and paydowns. Low cost deposit average balances increased $57,103 during the third quarter of 2009 to $1,059,055.
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