Evansville-based Integra Bank Corp. has completed a previously-announced sale of three branch offices in Kentucky.
The offices — two in Cadiz and one in Mayfield — were sold to Mayfield-based FNB Bank. With the acquisitions, FNB operates a total of eight offices.
The deal with FNB is the last of five transactions announced by Integra this year as part of a strategy to reduce the bank's operating footprint and improve its financial position. All told, Integra has shed 17 branch offices this year.
Integra has lost money for the past nine quarters, most recently a $10.2 million loss in the second quarter.
"This (branch sale) strategy has greatly strengthened our capital and resulted in narrowing our geographic operating footprint to 48 branches all within 100 miles of Evansville, plus four branches in the Chicago area we continue to market for eventual sale," Integra Chairman and Chief Executive Officer Mike Alley said in a press release issued Friday.
In the FNB deal, FNB purchased the three branch offices at book value. As part of the transaction FNB also assumed about $119.7 million of deposit liabilities related to the three branches, paying a deposit premium of about $6 million, or 5.09 percent, on those deposits.
FNB also acquired $27.8 million in branch-related loans, plus an additional $43.7 million in commercial, agricultural and commercial real estate loans that originated at other Integra offices.