Integra Bank 1Q
Some more numbers starting to come out from banks across Kentucky.
“Our first quarter results reflect continued weakness in commercial real estate, which was reflected in our large provision and net charge-offs as well as a change in our non-performing asset disposition strategy that will result in quicker disposition of those assets as opportunities arise. We will take advantage of opportunities to sell, exchange for other assets or accept discounted payoffs where appropriate, particularly in situations where we believe it would take several quarters for values to recover. Our efforts continue to be focused around reducing our level of non-performing assets, improving our capital and liquidity and increasing the operating income of our core community banking franchise,” stated Mike Alley, Chairman and CEO. “Since we announced our results for 2009 approximately two months ago, we have announced two branch and loan sales in addition to the three pending multi-branch/loan transactions we announced earlier. These pending branch sale transactions are a key component of our plan to increase regulatory capital,” Alley added.
The net loss for the first quarter of 2010 stems mainly from the provision for credit losses. The net loss for the fourth quarter of 2009 included an increase in the tax valuation allowance of $75.6 million, a $5.3 million deposit premium and a $1.5 million write-down of the two banking facilities that were retained in a branch sale. Non-performing assets increased $11.6 million during the first quarter of 2010 to $258.5 million at March 31, 2010.
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