Integra Bank Corporation has closed the sale of five Kentucky branches of its wholly-owned bank subsidiary, Integra Bank N.A, to First Security Bank, the wholly-owned subsidiary of First Security.
The five banking offices are located in Bowling Green and Franklin, Kentucky. In addition, the transaction included the sale of a group of commercial, commercial real estate and indirect consumer loans to First Security.
Both Integra and First Security anticipate that the closing date for the sale of three additional branches located in Paoli, Mitchell and Bedford, Indiana and additional commercial and consumer loans to First Security will occur in September 2010.
According to the Integra Bank, First Security assumed approximately $115m of deposit liabilities, as well as $41.8m of branch loans and $6.3m of additional commercial, $24.2m of additional commercial real estate and $33m of additional indirect consumer loans selected by First Security that were originated in other Integra Bank offices.
Michael Alley, chairman and CEO of Integra Bank Corporation, said: “We are pleased to smoothly transition our Bowling Green and Franklin customers to First Security in this first phase of our agreement with them.
“We expect to complete the second phase comprised of the three Indiana branches and loans in September. This transaction along with the two similar transactions we completed during the second quarter are key to our strategy to strengthen our capital position as we narrow our geographic operating footprint.”