Integra Bank Corporation Reports Second Quarter 2009 Results

• Press Release
• Source: Integra Bank Corporation
• On 7:58 am EDT, Friday July 31, 2009

EVANSVILLE, Ind., July 31, 2009 (GLOBE NEWSWIRE) -- Integra Bank Corporation (Nasdaq:IBNK - News) today reported financial results for the second quarter of 2009.

Related Quotes

Symbol	Price	Change
IBNK	0.78	0.00

{"s" : "ibnk","k" : "c10,l10,p20,t10","o" : "","j" : ""}

The net loss available to common shareholders for the second quarter of 2009 was $43.9 million, or $2.12 per diluted share, compared to $28.5 million, or $1.37 per diluted share for the first quarter of 2009. The provision for loan losses was $32.5 million, up $1.1 million from $31.4 million during the first quarter of 2009, while net-charge-offs totaled $28.8 million, or 4.80% of total loans on an annualized basis, up $11.5 million from $17.3 million, or 2.86% of total loans annualized for the first quarter of 2009. The increase in net charge-offs was attributable to the $17 million charge-off of the loan to Peoples Community Bancorp, Inc., a financial institution located in the Cincinnati, Ohio area ("PCBI"). A total of $8.25 million of this charge-off was provided for during the second quarter of 2009. The continued high level of provision was primarily due to continued weakness in the residential construction loan portfolio. The net interest margin for the second quarter of 2009 was 2.34%, compared to 2.39% in the first quarter.

The net loss for the second quarter of 2009 includes $1.1 million of dividends on the preferred shares sold to the Treasury Department in February 2009 under the Capital Purchase Program and discount accretion on the related warrant issued to the Treasury. It also includes a $1.2 million non-tax deductible mark to market adjustment for the warrant that reduced earnings. The warrant was reflected as a liability because it was not fully exercisable at the time of issuance. In April 2009, the Company's shareholders approved an increase in the authorized shares of common stock and the issuance of the common stock upon exercise of the warrant, at which point the Company began accounting for the warrant as equity. This reclassification improved the Company's capital ratios in April 2009, but did not affect those of Integra Bank N.A. The net loss also included an increase of $11.4 million in the valuation allowance associated with the Company's deferred tax asset, an other-than-temporary securities impairment (OTTI) charge of $13.5 million and a special 5 basis point FDIC assessment of $1.6 million. The first quarter of 2009 included $0.4 million of preferred stock dividends and discount accretion, a reduction to earnings of $4.7 million for the warrant, a $5.0 million deferred tax valuation allowance, OTTI of $1.2 million and branch sale gains of $2.5 million.

On May 4, 2009, the Company announced the appointment of Michael J. Alley as its Interim Chairman and Chief Executive Officer and that an outside firm had been hired to institute a search process for a permanent CEO.

On May 20, 2009, Integra Bank N.A. announced that it entered into a formal written agreement with the Office of the Comptroller of the Currency (the "OCC"). Pursuant to the agreement, the Bank agreed to undertake certain actions to reduce the level of criticized assets and improve earnings within designated timeframes and operate in compliance with the agreement's provisions during its term.

On June 26, 2009, the Company announced the completion of an initiative designed to improve profitability, efficiency and productivity. The initiative is expected to reduce future non-interest expense by over $8 million and improve future non-interest income by nearly $3 million on an annualized basis. The reduction to expense included a reduction in force, which was substantially completed during the second quarter.

"Although disappointed with our performance, we have taken and will continue to take concrete steps to improve," stated Mike Alley, Chairman and CEO. "During the second quarter, we successfully executed a profit improvement initiative, initiated efforts to increase our margin and net interest income, took proactive steps to reduce our construction and development concentration, made progress on our CEO search and most importantly, made further changes that we believe will stabilize and then reduce our non-performing assets and credit losses. Additionally, the charge-off of the PCBI loan and the OTTI charges have reduced a significant element of risk in our balance sheet", Alley added.

The allowance to total loans increased 26 basis points during the second quarter of 2009, to 3.50% at June 30, 2009, while the allowance to non-performing loans increased from 42% to 45%. Non-performing loans decreased $6.8 million to $182.4 million, or 7.76% of total loans, compared to $189.2 million, or 7.80% of total loans at March 31, 2009. Other real estate owned increased $9.4 million to $29.3 million during the second quarter of 2009, bringing total non-performing assets to $211.7 million at June 30, 2009.

Net interest income was $16.8 million for the second quarter of 2009, compared to $17.5 million for the first quarter of 2009, while the net interest margin was 2.34%, compared to 2.39% for the first quarter of 2009. Liability costs declined 10 basis points during the quarter, while earning asset yields declined 9 basis points. The decline in net interest income was primarily driven by lower levels of earning assets.

Commercial loan average balances decreased $26.7 million in the second quarter of 2009, or 5.8% on an annualized basis. This included declines in construction and land development of $84.2 million and commercial and industrial of $18.1 million, partially offset by an increase in commercial real estate of $75.6 million. 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 $89.6 million during the second quarter of 2009 to $1.0 billion.

Non-interest income was $(5.3) million for the second quarter of 2009, compared to $5.5 million for the first quarter of 2009. The second quarter of 2009 included an OTTI charge on securities of $13.5 million, securities gains from sales of $1.5 million, and the $1.2 million reduction to non-interest income for the mark-to-market adjustment for the Treasury warrant. The securities gains were offset by prepayment penalties that were incurred to pay off higher costing repurchase agreements. The first quarter of 2009 included gains on the sale of five banking centers of $2.5 million and an OTTI charge on securities of $1.2 million, as well as a $4.7 million reduction to non-interest income for a mark-to-market adjustment for the Treasury warrant. Deposit service charges increased $0.6 million during the second quarter of 2009 from the first quarter of 2009.

Non-interest expense was $29.2 million for the second quarter of 2009, compared to $29.5 million for the first quarter of 2009. Increases during the second quarter of 2009 compared to the first quarter included FDIC insurance of $2.1 million, debt prepayment penalties of $1.5 million, professional fees of $0.3 million and severance of $0.4 million. These increases offset declines in loan expense of $2.8 million, employee benefits of $1.0 million, other real estate owned expense of $0.8 million, low income housing partnership losses of $0.2 million, and occupancy expenses of $0.2 million. The increase in FDIC insurance included the special assessment of $1.6 million.

The income tax benefit for the second quarter of 2009 was $7.5 million. The tax benefit was a result of the net loss, the impact of low income housing tax credits and tax free loan, municipal security and bank-owned life insurance income, partially offset by an $11.4 million federal and state income tax valuation allowance.

Integra Bank's total risk based capital ratio was 9.74%, or adequately capitalized, while other ratios remain above the regulatory minimum for well-capitalized status. Integra Bank's tier 1 risk based capital ratio was 8.47% and its tier 1 leverage ratio was 6.41%.

On April 9, 2009, the Financial Accounting Standards Board issued two Final Staff Positions (FSPs) that provide additional application guidance and enhance disclosures regarding fair value measurements and impairments of securities. The Company adopted these FSPs effective April 1, 2009 and reversed $1.3 million for the non-credit portion of cumulative previously taken OTTI charges. The adoption was recognized as a cumulative effect adjustment that increased retained earnings and decreased accumulated other comprehensive income by $0.8 million, net of tax of $0.5 million, as of April 1, 2009. Implementing the new standard resulted in an increase in the amount of OTTI recognized in income for the period of $1.1 million.

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 31, 2009, at 8:00 a.m. CT. The telephone number for the conference call is 888-395-3241, confirmation code 6433156. 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, 2009, Integra has $3.4 billion in total assets and operates 75 banking centers and 123 ATMs at locations in Indiana, Kentucky, Illinois and Ohio. 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, www.integrabank.com.

The Integra Bank Corporation logo is available at http://www.globenewswire.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 our 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 effects of the current recession in the markets in which we primarily do business; (2) changes in the interest rate environment that reduce our net interest margin; (3) unanticipated additional loan charge-offs and loan loss provisions; (4) our ability to maintain required capital levels and adequate sources of funding and liquidity; (5) additional declines in value of our investment securities portfolio, including adverse developments affecting the issuers of trust preferred and collateralized securities we hold; (6) changes and trends in capital markets; (7) competitive pressures from other depository institutions that increase our funding costs; (8) unanticipated effects or changes in critical accounting policies and judgments; (9) legislative or regulatory changes or actions, or significant litigation that adversely affect us or the banking industry; (10) our ability to attract and retain key personnel; (11) our ability to fully utilize our deferred tax asset; (12) our ability to maintain security for confidential information in our computer systems and telecommunications network; (13) the effects of our participation in the Capital Purchase Program and possible changes to that program; (14) increases in insurance premiums we pay to the Federal Deposit Insurance Corporation; (15) our ability to comply with the terms of the formal agreement that Integra Bank entered into with the Office of the Comptroller of the Currency in May 2009; and (16) damage to our reputation as a result of the foregoing, including our ability to retain customers and attract new ones, our cost of funding and our level of liquidity as well as other factors we describe 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 2009 operating results:

 Net income (loss) available to common shareholders of $(43.9) million
 for second quarter 2009
   * Compared with $(28.5) million for first quarter 2009
   * Compared with $(0.90) million for second quarter 2008

 Diluted net income (loss) per common share of $(2.12) for
 second quarter 2009
   * Compared with $(1.37) for first quarter 2009
   * Compared with $(.04) for second quarter 2008

 Return on assets of (4.89)% for second quarter 2009
   * Compared with (3.25)% for first quarter 2009
   * Compared with (0.11)% for second quarter 2008

 Return on common equity of (98.96)% for second quarter 2009
   * Compared with (56.62)% for first quarter 2009
   * Compared with (1.09)% for second quarter 2008

 Net interest margin of 2.34% for second quarter 2009
   * Compared with 2.39% for first quarter 2009
   * Compared with 3.43% for second quarter 2008

 Allowance for loan losses of $82.3 million or 3.50% of loans
 at June 30, 2009
   * Compared with $78.5 million or 3.24% at March 31, 2009
   * Compared with $31.8 million or 1.32% at June 30, 2008
   * Equaled 45.1% of non-performing loans at June 30, 2009, compared
     with 41.5% at March 31, 2009 and 63.0% at June 30, 2008

 Non-performing assets of $211.7 million or 8.90% of loans and other
 real estate owned at June 30, 2009
   * Compared with $209.1 million or 8.55% at March 31, 2009
   * Compared with $56.4 million or 2.34% at June 30, 2008

 Annualized net charge-off rate of 4.80% for second quarter 2009
   * Compared with 2.86% for first quarter 2009
   * Compared with 0.48% for second quarter 2008


 INTEGRA BANK CORPORATION
 UNAUDITED CONSOLIDATED BALANCE SHEETS
 (In thousands, except share data)

                                     June 30,   December 31, June 30,
 ASSETS                                2009        2008        2008
 ---------------------------------------------------------------------
 Cash and due from banks            $  312,233  $   62,354  $   92,114
 Federal funds sold and other
  short-term investments                   745         419       8,529
 Loans held for sale (at lower
  of cost or market value)              10,535       5,776       6,045
 Securities available for sale         427,403     561,739     565,459
 Securities held for trading            20,230          --          --
 Regulatory stock                       29,137      29,155      29,181
 Loans:
 Commercial loans                    1,767,149   1,850,043   1,744,943
 Consumer loans                        406,800     432,183     427,952
 Mortgage loans                        175,523     208,017     237,102
 Less:  Allowance for loan losses      (82,309)    (64,437)    (31,780)
 ---------------------------------------------------------------------
 Net loans                           2,267,163   2,425,806   2,378,217
 Premises and equipment                 45,944      48,500      49,758
 Goodwill                                   --          --     122,824
 Other intangible assets                 9,085       9,928      10,790
 Other assets                          225,925     213,423     138,293
 ---------------------------------------------------------------------
 TOTAL ASSETS                       $3,348,400  $3,357,100  $3,401,210
 =====================================================================

 LIABILITIES
 Deposits:
 Non-interest-bearing demand        $  278,418  $  284,032  $  304,549
 Savings & interest checking           733,123     600,374     563,853
 Money market                          312,445     301,411     386,341
 Certificates of deposit and
  other time deposits                1,150,369   1,154,375   1,068,905
 ---------------------------------------------------------------------
 Total deposits                      2,474,355   2,340,192   2,323,648
 Short-term borrowings                 240,918     415,006     370,913
 Long-term borrowings                  372,212     360,917     359,591
 Other liabilities                      35,313      36,194      27,594
 ---------------------------------------------------------------------
 TOTAL LIABILITIES                   3,122,798   3,152,309   3,081,746

 SHAREHOLDERS' EQUITY
 Preferred stock - no par, $1,000
  per share liquidation preference
  - 1,000,000 shares authorized         81,844          --          --
 Common stock - $1.00 stated value
  - 129,000,000 shares authorized       20,709      20,749      20,759
 Additional paid-in capital            217,194     208,732     207,802
 Retained earnings                     (87,812)    (15,754)     99,610
 Accumulated other comprehensive
  income (loss)                         (6,333)     (8,936)     (8,707)
 ---------------------------------------------------------------------
 TOTAL SHAREHOLDERS' EQUITY            225,602     204,791     319,464
 ---------------------------------------------------------------------
 TOTAL LIABILITIES AND
  SHAREHOLDERS' EQUITY              $3,348,400  $3,357,100  $3,401,210
 =====================================================================


 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,
                        2009      2009      2008      2008      2008
 ---------------------------------------------------------------------
 INTEREST INCOME
 Interest and fees
  on loans and 
  leases              $ 25,489  $ 25,952  $ 33,235  $ 35,201  $ 35,777
 Interest and
  dividends on
  securities available
  for sale               5,830     6,474     6,811     6,605     6,909
 Interest on
  securities held
  for trading               22        --        --        --        45
 Dividends on
  regulatory stock         157       521       103       385       409
 Interest on loans
  held for sale            127       103        85        88        90
 Interest on federal
  funds sold and
  other investments        174        93        10        26        30
 ---------------------------------------------------------------------
 Total interest
  income                31,799    33,143    40,244    42,305    43,260
 INTEREST EXPENSE
 Interest on deposits   11,759    12,187    13,532    12,888    12,851
 Interest on
  short-term
  borrowings               583       763     1,447     1,995     1,955
 Interest on
  long-term
  borrowings             2,683     2,710     3,828     3,562     3,288
 ---------------------------------------------------------------------
 Total interest
  expense               15,025    15,660    18,807    18,445    18,094
 ---------------------------------------------------------------------
 NET INTEREST INCOME    16,774    17,483    21,437    23,860    25,166
 Provision for
  loan losses           32,536    31,394    38,169    17,978     6,003
 ---------------------------------------------------------------------
 Net interest income
  after provision for
  loan losses          (15,762)  (13,911)  (16,732)    5,882    19,163
 NON-INTEREST INCOME
 ---------------------------------------------------------------------
 Service charges on
  deposit accounts       5,035     4,413     5,436     5,884     5,059
 Trust income              563       459       470       573       554
 Debit card
  income-interchange     1,373     1,257     1,281     1,358     1,376
 Other service
  charges and fees         951     1,093     1,142     1,103     1,315
 Securities gains
  (losses)             (13,179)   (1,170)   (4,309)       13    (6,299)
 Gain (Loss) on sale
  of other assets          (22)    2,496        (3)      (47)      (12)
 Warrant fair value
  adjustment            (1,407)   (4,738)       --        --        --
 Other                   1,358     1,682     1,742     1,300     1,019
 ---------------------------------------------------------------------
 Total non-interest
  income                (5,328)    5,492     5,759    10,184     3,012
 NON-INTEREST EXPENSE
 ---------------------------------------------------------------------
 Salaries and
  employee benefits     11,561    12,075    11,442    12,125    12,446
 Occupancy               2,378     2,581     2,657     2,621     2,541
 Equipment                 808       849       875       974       955
 Professional fees       2,057     1,730     1,816     1,390     1,317
 Communication and
  transportation         1,091     1,161     1,248     1,223     1,371
 Loan and OREO expense   1,888     5,448     1,028       870       430
 Goodwill impairment        --        --    74,824    48,000        --
 Debt prepayment fees    1,511        --        --        --        --
 FDIC Assessment         3,005       950       479       163        76
 Other                   4,870     4,679     5,199     4,821     5,041
 ---------------------------------------------------------------------
 Total non-interest
  expense               29,169    29,473    99,568    72,187    24,177
 ---------------------------------------------------------------------
 Income (Loss) before
  income taxes         (50,259)  (37,892) (110,541)  (56,121)   (2,002)
 Income taxes expense
  (benefit)             (7,451)   (9,831)  (28,919)  (22,794)   (1,103)
 ---------------------------------------------------------------------
 NET INCOME (LOSS)     (42,808)  (28,061)  (81,622)  (33,327)     (899)
 ---------------------------------------------------------------------
 Preferred stock
  dividends and
  discount accretion     1,139       413        --        --        --
 ---------------------------------------------------------------------
 NET INCOME (LOSS)
  AVAILABLE TO COMMON
  SHAREHOLDERS        $(43,947) $(28,474) $(81,622) $(33,327) $   (899)
 ---------------------------------------------------------------------
 Earnings (Loss) per
  common share:
  Basic               $  (2.12) $  (1.37) $  (3.97) $  (1.62) $  (0.04)
  Diluted                (2.12)    (1.37)    (3.97)    (1.62)    (0.04)

 Weighted average
  common shares
  outstanding:
  Basic                 20,715    20,732    20,569    20,567    20,554
  Diluted               20,715    20,732    20,569    20,567    20,554


 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,
                                --------------------------------------
                                  2009      2008      2009      2008
 ---------------------------------------------------------------------
 INTEREST INCOME
 Interest and fees on loans
  and leases                    $ 25,489  $ 35,777  $ 51,441  $ 74,559
 Interest and dividends on
  securities available for sale    5,830     6,909    12,304    14,176
 Interest on securities held
  for trading                         22        45        22       570
 Dividends on regulatory stock       157       409       678       785
 Interest on loans held
  for sale                           127        90       230       193
 Interest on federal funds sold
  and other investments              174        30       267        68
 ---------------------------------------------------------------------
 Total interest income            31,799    43,260    64,942    90,351
 INTEREST EXPENSE
 Interest on deposits             11,759    12,851    23,946    29,243
 Interest on short-term
  borrowings                         583     1,955     1,346     4,121
 Interest on long-term
  borrowings                       2,683     3,288     5,393     8,303
 ---------------------------------------------------------------------
 Total interest expense           15,025    18,094    30,685    41,667
 ---------------------------------------------------------------------
 NET INTEREST INCOME              16,774    25,166    34,257    48,684
 Provision for loan losses        32,536     6,003    63,930     9,637
 ---------------------------------------------------------------------
 Net interest income after
  provision for loan losses      (15,762)   19,163   (29,673)   39,047
 NON-INTEREST INCOME
 ---------------------------------------------------------------------
 Service charges on
  deposit accounts                 5,035     5,059     9,448     9,758
 Trust income                        563       554     1,022     1,113
 Debit card income-interchange     1,373     1,376     2,630     2,619
 Other service charges and fees      951     1,315     2,044     2,894
 Securities gains (losses)       (13,179)   (6,299)  (14,349)   (6,275)
 Gain (Loss) on sale
  of other assets                    (22)      (12)    2,474       (12)
 Warrant fair value adjustment    (1,407)       --    (6,145)       --
 Other                             1,358     1,019     3,040     3,649
 ---------------------------------------------------------------------
 Total non-interest income        (5,328)    3,012       164    13,746
 NON-INTEREST EXPENSE
 ---------------------------------------------------------------------
 Salaries and employee benefits   11,561    12,446    23,636    24,840
 Occupancy                         2,378     2,541     4,959     5,101
 Equipment                           808       955     1,657     1,883
 Professional fees                 2,057     1,317     3,787     2,535
 Communication and
  transportation                   1,091     1,371     2,252     2,593
 Loan and OREO expense             1,888       430     7,336       882
 Debt prepayment fees              1,511        --     1,511        --
 FDIC Assessment                   3,005        76     3,955       154
 Other                             4,870     5,041     9,549    10,310
 ---------------------------------------------------------------------
 Total non-interest expense       29,169    24,177    58,642    48,298
 ---------------------------------------------------------------------
 Income (Loss) before
  income taxes                   (50,259)   (2,002)  (88,151)    4,495
 Income taxes expense (benefit)   (7,451)   (1,103)  (17,282)      421
 ---------------------------------------------------------------------
 NET INCOME (LOSS)               (42,808)     (899)  (70,869)    4,074
 ---------------------------------------------------------------------
 Preferred stock dividends
  and discount accretion           1,139        --     1,552        --
 ---------------------------------------------------------------------
 NET INCOME (LOSS) AVAILABLE
  TO COMMON SHAREHOLDERS        $(43,947) $   (899) $(72,421) $  4,074
 ---------------------------------------------------------------------
 Earnings (Loss) per share:
  Basic                         $  (2.12) $  (0.04) $  (3.50) $   0.20
  Diluted                          (2.12)    (0.04) $  (3.50)     0.20

 Weighted average shares
  outstanding:
  Basic                           20,715    20,554    20,717    20,545
  Diluted                         20,715    20,554    20,717    20,569


 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,
               2009        2009        2008        2008        2008
            ----------  ----------  ----------  ----------  ----------

 EARNINGS
  DATA
  Net
   Interest
   Income
   (tax-
   equiv-
   alent)   $   17,327  $   18,135  $   22,111  $   24,513  $   25,821
  Net Income
   (Loss)      (42,808)    (28,061)    (81,622)    (33,327)       (899)

 COMMON
  SHARE DATA
  Net Income
   (Loss)      (43,947)    (28,474)    (81,622)    (33,327)       (899)
  Basic
   Earnings
   Per Share     (2.12)      (1.37)      (3.97)      (1.62)      (0.04)
  Diluted
   Earnings
   Per Share     (2.12)      (1.37)      (3.97)      (1.62)      (0.04)
  Dividends
   Declared       0.01        0.01        0.01        0.01        0.18
  Tangible
   Book
   Value          6.50        8.21        9.39        9.22        8.95

 PERFORMANCE
  RATIOS
  Return on
   Assets       (4.89)%     (3.25)%     (9.57)%     (3.93)%     (0.11)%
  Return on
   Common
   Equity       (98.96)     (56.62)    (119.82)     (41.36)      (1.09)
  Net
   Interest
   Margin
   (tax-
   equiv-
   alent)         2.34        2.39        2.86        3.22        3.43
  Tier 1
   Risk-
   Based
   Capital        8.80       10.01        7.68        9.05        9.13
  Total
   Risk-
   Based
   Capital       10.58       11.73        9.75       11.03       11.13
  Tangible
   Common
   Equity
   to
   Tangible
   Assets         4.03        4.80        5.82        5.85        5.69
  Efficiency
   Ratio        102.45      107.66       75.55       68.49       67.59

 AT PERIOD
  END
  Assets    $3,348,400  $3,555,533  $3,357,100  $3,356,842  $3,401,210
  Interest-
   Earning
   Assets    2,837,522   3,005,489   3,087,332   3,026,227   3,019,211
  Commercial
   Loans     1,767,149   1,828,731   1,850,043   1,808,343   1,744,943
  Consumer
   Loans       406,800     409,255     432,183     431,106     427,952
  Mortgage
   Loans       175,523     188,013     208,017     221,361     237,102
   Total
    Loans    2,349,472   2,425,999   2,490,243   2,460,810   2,409,997
  Deposits   2,474,355   2,580,043   2,340,192   2,385,794   2,323,648
  Low Cost
   Deposits
   (1)       1,011,541     957,280     884,406     834,853     868,402
  Interest-
   Bearing
   Liabil-
   ities     2,809,067   2,950,191   2,832,083   2,773,566   2,749,603
  Share-
   holders'
   Equity      225,602     261,502     204,791     276,588     319,464
  Unrealized
   Gains
   (Losses)
   on Market
   Securities
   (FASB
   115)         (5,575)     (5,150)     (8,509)    (17,515)     (7,737)

 AVERAGE
  BALANCES
  Assets    $3,513,409  $3,500,401  $3,393,237  $3,377,261  $3,371,944
  Interest-
   Earning
   Assets
   (2)       2,961,516   3,053,716   3,087,179   3,038,943   3,022,425
  Commercial
   Loans     1,813,743   1,840,457   1,836,979   1,776,275   1,704,492
  Consumer
   Loans       407,757     418,640     432,380     429,042     422,804
  Mortgage
   Loans       182,568     197,016     215,343     228,747     250,449
   Total
    Loans    2,404,068   2,456,113   2,484,702   2,434,064   2,377,745
  Deposits   2,575,429   2,513,377   2,410,344   2,345,027   2,307,609
  Low Cost
   Deposits
   (1)       1,001,952     912,326     858,521     850,095     850,448
  Interest-
   Bearing
   Liabil-
   ities     2,921,548   2,936,850   2,806,089   2,746,792   2,728,433
  Share-
   holders'
   Equity      259,923     233,951     270,998     320,522     330,587
  Basic
   Common
   Shares       20,715      20,732      20,569      20,567      20,554
  Diluted
   Common
   Shares       20,715      20,732      20,569      20,567      20,554

 (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,
                        2009      2009      2008      2008      2008
                      --------  --------  --------  --------  --------

 ASSET QUALITY

  Non-Performing
   Assets:
   Non Accrual Loans  $175,840  $186,770  $150,002  $ 79,672  $ 50,162
   Loans 90+ Days
    Past Due             6,573     2,444       897     5,514       312
                      --------  --------  --------  --------  --------
   Non-Performing
    Loans              182,413   189,214   150,899    85,186    50,474
   Other Real Estate
    Owned               29,286    19,848    19,396     7,252     5,940
                      --------  --------  --------  --------  --------
   Non-Performing
    Assets            $211,699  $209,062  $170,295  $ 92,438  $ 56,414
                      ========  ========  ========  ========  ========

  Allowance for
   Loan Losses:
   Beginning Balance  $ 78,525  $ 64,437  $ 41,766  $ 31,780  $ 28,590
   Provision for
    Loan Losses         32,536    31,394    38,169    17,978     6,003
   Recoveries              442       330       377       464       315
   Loans Charged Off   (29,194)  (17,636)  (15,875)   (8,456)   (3,128)
                      --------  --------  --------  --------  --------
   Ending Balance     $ 82,309  $ 78,525  $ 64,437  $ 41,766  $ 31,780
                      ========  ========  ========  ========  ========

  Ratios:
   Allowance for Loan
    Losses to Loans       3.50%     3.24%     2.59%     1.70%     1.32%
   Allowance for Loan
    Losses to Average
    Loans                 3.42      3.20      2.59      1.72      1.34
   Allowance to
    Non-performing
    Loans                45.12     41.50     42.70     49.03     62.96
   Non-performing
    Loans to Loans        7.76      7.80      6.06      3.46      2.09
   Non-performing
    Assets to Loans
    and Other Real
    Estate Owned          8.90      8.55      6.79      3.75      2.34
   Net Charge-Off
    Ratio                 4.80      2.86      2.48      1.31      0.48

 NET INTEREST MARGIN

  Yields
   (tax-equivalent)
   Loans                  4.23%     4.26%     5.28%     5.70%     5.99%
   Securities             4.87      5.02      5.21      5.12      5.01
   Regulatory Stock       2.15      7.14      1.42      5.27      5.61
   Other Earning
    Assets               10.90      8.85      5.74      3.25      3.89
                      --------  --------  --------  --------  --------
    Total Earning
     Assets               4.38      4.47      5.28      5.63      5.84

  Cost of Funds
   Interest Bearing
    Deposits              2.07      2.23      2.53      2.49      2.56
   Other Interest
    Bearing
    Liabilities           2.02      1.94      3.04      3.18      2.95
    Total Interest
     Bearing
     Liabilities          2.06      2.16      2.67      2.67      2.67
                      --------  --------  --------  --------  --------
    Total Interest
     Expense to
     Earning Assets       2.04      2.08      2.42      2.41      2.41
                      --------  --------  --------  --------  --------
  Net Interest Margin     2.34%     2.39%     2.86%     3.22%     3.43%
                      ========  ========  ========  ========  ========

Integra Bank Corporation
Mike Alley, Chairman and CEO
812-461-5795
Martin Zorn, EVP-Chief Operating Officer
and Chief Financial Officer
812-461-5794
Shareholder Relations
Gretchen Dunn
812-464-9677
http://www.integrabank.com