United Community Bank, a wholly-owned subsidiary of Indiana-based United Community Bancorp, has agreed to purchase three banking offices of Integra Bank, the wholly-owned bank subsidiary Indiana-based Integra Bank.
The offices are located in Milan, Osgood and Versailles, Indiana. In addition, United Community Bank has also agreed to acquire a group of commercial and residential mortgage loans from Integra.
United Community Bank will assume approximately $54.4m of deposit liabilities related to the three branches, as well as $38.6m of branch loans and $12.3m of additional commercial and residential mortgage loans selected by United that were originated in other Integra offices.
William Ritzmann, president and CEO of United Community Bank, said: “We are excited about this opportunity to expand our banking operations into neighboring Ripley County. Customers of the branches should know that we are working diligently with Integra so that the transition will be seamless to them.”
Michael Alley, chairman and CEO of Integra, said: “Our Integra associates in Milan, Osgood and Versailles have done a great job serving their customers and I am confident that this will continue.
“This divestiture enhances our capital and is part of a multi-step strategy we are executing that will improve our capital and liquidity positions, reduce our credit risk and accelerate our return to profitability. We expect to execute additional branch sales in 2010, as well as sales of both non-performing and performing loans.”
However, the transactions are subject to customary conditions, including regulatory approval. The parties expect the branch purchase transaction to close in the first half of 2010.