Integra Bank Corporation Reports First Quarter Earnings

Apr 18, 2001, 01:00 ET from Integra Bank Corporation

    EVANSVILLE, Ind., April 18 /PRNewswire/ -- Integra Bank Corporation
 (Nasdaq: IBNK) ( www.integrabank.com ) today reported income before the
 cumulative effect of a change in accounting principle of $7,130,000 or $0.42
 per diluted share for the first quarter of 2001, compared with $7,882,000 or
 $0.45 per diluted share for the same period a year ago.
     Michael T. Vea, Chairman, President and Chief Executive Officer of Integra
 Bank Corporation said, "Our first quarter performance was negatively
 influenced by the Federal Reserve actions resulting in a drop in market
 interest rates during the first quarter and the "initial" impact on earnings
 of our recent acquisition of Webster Bancorp, Inc. which was completed on
 January 31st of this year."  Vea further commented, "The Federal Reserve
 dropped interest rates a total of 1.50% (150 basis points) during the first
 quarter of this year.  When these rate reductions occur, Integra immediately
 reduces the interest charged on floating rate loans.  Integra will also begin
 to reduce the interest rates paid for supporting liabilities as market
 conditions allow, which generally occurs at a slower pace.  The impact of the
 combination of these loan and deposit market rate changes is a narrowing of
 our net interest margin, until the reduction in rates paid for interest
 bearing liabilities catches up to the immediate reduction in loan rates.  This
 stabilization process will generally take place over a 45 to 60 day period of
 time.  The temporary aberration occurring in our net interest margin during
 the first quarter was exacerbated by the magnitude and rapidity of the Federal
 Reserve actions."
     Vea also commented, "Our integration of Webster into the Integra family is
 proceeding on schedule. Our second quarter will reflect the full impact of the
 synergies associated with this acquisition; whereas, our first quarter results
 included the full absorption of their overhead and other integration costs
 incurred."
     "Net interest income totaled $22,179,000 for the first quarter of 2001,
 virtually flat when compared with the $21,981,000 recorded in the first
 quarter of last year despite the narrowing in our net interest margin from
 4.56% to 3.09%", Vea said. "Average earning assets rose almost $1 billion
 during this period of time, with most of the increase reflected in securities
 available for sale and other short term investments.  At March 31, 2001, the
 unrealized gain in portfolio securities was approximately $16 million,
 compared with an unrealized loss of almost $3 million a year ago", Vea added.
     Non-interest income, excluding securities gains and the $1.8 million gain
 on sale of mortgage servicing rights in 2000, totaled $5,566,000 in 2001,
 compared with $3,639,000 in 2000.  Of the $1,927,000 increase, the
 acquisitions of the Bowling Green branches and Webster contributed
 approximately $314,000.
     Non-interest expenses amounted to $18,116,000 for the current quarter,
 compared with $14,832,000 a year ago.  Included in the $3,284,000 rise in non-
 interest expenses are operating costs, including integration costs, of
 $1,864,000 associated with the recent acquisitions.
     Effective January 1, 2001, Integra adopted SFAS No. 133 issued by the
 Financial Accounting Standards Board. SFAS 133 established new accounting
 principles for derivatives and hedging activities.  In the past, Integra (and
 most other companies) had included premiums paid for interest rate caps in the
 carrying amounts of those liabilities being hedged and amortized those amounts
 as an adjustment to interest expense over the contractual terms of the caps.
 Upon SFAS 133's initial application, all derivatives must be measured at their
 fair value. The one time cumulative effect of adopting the new accounting
 principle had an unfavorable after tax impact on first quarter 2001 net income
 of approximately $273,000.
     "Although our first quarter financial performance didn't meet our
 aggressive internal expectations, our progress towards becoming a high
 performing banking organization is well underway.  We will continue to
 maintain our focus of continually improving customer service, product
 offerings and creating shareholder value," Vea said.
 
     "Forward-looking statements" as defined in the Private Securities
 Litigation Reform Act of 1995 may be included in this release.  A variety of
 factors could cause Integra Bank Corporation's actual results to differ from
 those expected at the time of this release.  Investors are urged to carefully
 review and consider the various disclosures made by Integra Bank Corporation
 in its periodic reports filed with the Securities and Exchange Commission.
 
     Profile of Integra Bank Corporation (Nasdaq: IBNK)
     Integra Bank Corporation (Nasdaq: IBNK) ( www.integrabank.com ) is a
 $3.4 billion bank holding company headquartered in Evansville, Indiana, which
 currently operates 77 locations in Indiana, Kentucky, Illinois and Ohio and
 provides 24-hour banking convenience through a network of 128 ATMs and its
 online banking service BANK ANYTIME.  Integra Bank Corporation recently
 received the highest rating attainable from IDC Financial Publishing.
 
 
     INTEGRA BANK CORPORATION
     SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
     (in thousands, except per share data)
 
                                                              2001
                                                    1st Qtr             YTD
 
     EARNINGS DATA
            Net Income                               $6,857            $6,857
            Net Income-Pre Goodwill                   7,765             7,765
            Basic Earnings Per Share                   0.41              0.41
            Diluted Earnings Per Share                 0.41              0.41
            Diluted Earnings Per Share
              -Pre Goodwill                            0.46              0.46
            Dividends                                  .235              .235
            Book Value                                13.52             13.52
            Book Value GAAP                           14.06             14.06
            Price/Earnings Ratio                      12.55             12.55
 
     PERFORMANCE RATIOS
            Return on Assets                            .85%              .85%
            Return on Equity                          12.17             12.17
            Net Interest Margin (FTE)                  3.09              3.09
            Tier I Capital to Risk Assets              9.58              9.58
            Capital to Risk Assets                    10.83             10.83
            Efficiency Ratio                          59.12             59.12
 
     AT PERIOD END
            Assets                               $3,370,915        $3,370,915
            Interest-Earning Assets               3,150,104         3,150,104
            Loans                                 1,815,866         1,815,866
            Allowance for Loan Losses                29,004            29,004
            Deposits                              2,228,436         2,228,436
            Interest-Bearing Liabilities          2,912,509         2,912,509
            Shareholders' Equity                    244,608           244,608
            Unrealized Gains/(Losses)
               on Market Sec (FASB 115)               9,487             9,487
 
     AVERAGE BALANCES
            Assets                               $3,256,328        $3,256,328
            Interest-Earning Assets               3,052,574         3,052,574
            Loans                                 1,774,279         1,774,279
            Allowance for Loan Losses                27,703            27,703
            Deposits                              2,100,968         2,100,968
            Interest-Bearing Liabilities          2,824,409         2,824,409
            Shareholders' Equity                    222,792           222,792
            Shareholders' Equity GAAP               228,491           228,491
            Basic Shares                             16,864            16,864
            Fully Diluted Shares                     16,894            16,894
 
     ASSET QUALITY
            Allowance for Loan Losses to
             Loans                                     1.60%             1.60%
            Non-Performing Assets                   $41,039           $41,039
            Non-Performing Loans (NPL)               38,959            38,959
            Non-Accrual Loans
              Included Above                         35,195            35,195
            Net Charge-Offs                           1,973             1,973
            Allowance to NPL                          74.45%            74.45%
            NPL to Loans                               2.15              2.15
            Net Charge-Off Ratio                       0.45              0.45
 
 
     INTEGRA BANK CORPORATION
     SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
     (in thousands, except per share data)
 
                                                           2000
                                           1st Qtr       2nd Qtr       3rd Qtr
 
     EARNINGS DATA
          Net Income                        $7,882        $7,798        $7,020
          Net Income-Pre Goodwill            8,668         8,543         7,763
          Basic Earnings Per Share            0.45          0.45          0.40
          Diluted Earnings Per Share          0.45          0.45          0.40
          Diluted Earnings Per Share-
           Pre Goodwill                       0.49          0.49          0.45
          Dividends                           .210          .210          .210
          Book Value                         13.18         13.38         13.54
          Book Value GAAP                    13.08         13.21         13.71
          Price/Earnings Ratio               10.50          9.44         13.87
 
     PERFORMANCE RATIOS
          Return on Assets                    1.43%         1.31%         1.09%
          Return on Equity                   13.98         13.76         11.98
          Net Interest Margin (FTE)           4.56          4.40          3.99
          Tier I Capital to Risk Assets      13.83         13.84         13.55
          Capital to Risk Assets             15.08         15.09         14.80
          Efficiency Ratio                   49.04         50.99         52.56
 
     AT PERIOD END
          Assets                        $2,290,029    $2,468,199    $2,706,135
          Interest-Earning Assets        2,133,231     2,303,915     2,529,795
          Loans                          1,695,881     1,660,372     1,646,586
          Allowance for Loan Losses         25,406        25,156        24,494
          Deposits                       1,693,243     1,635,197     1,639,749
          Interest-Bearing Liabilities   1,854,502     2,032,271     2,275,281
          Shareholders' Equity             228,352       229,528       237,271
          Unrealized Gains/(Losses)
             on Market Sec (FASB 115)       (1,717)       (2,807)        3,072
 
     AVERAGE BALANCES
          Assets                        $2,215,291    $2,394,587    $2,558,095
          Interest-Earning Assets        2,069,297     2,241,182     2,399,216
          Loans                          1,703,156     1,695,998     1,652,916
          Allowance for Loan Losses         25,234        25,406        25,045
          Deposits                       1,713,091     1,672,113     1,646,450
          Interest-Bearing Liabilities   1,773,463     1,950,545     2,124,560
          Shareholders' Equity             224,687       231,312       233,332
          Shareholders' Equity GAAP        226,787       228,287       232,746
          Basic Shares                      17,492        17,413        17,368
          Fully Diluted Shares              17,534        17,426        17,373
 
     ASSET QUALITY
          Allowance for Loan Losses to
           Loans                              1.50%         1.52%         1.49%
          Non-Performing Assets            $36,071       $35,119       $38,514
          Non-Performing Loans (NPL)        34,996        33,916        37,672
          Non-Accrual Loans
           Included Above                   31,224        30,288        33,745
          Net Charge-Offs                      799         1,111         1,714
          Allowance to NPL                   72.60%        74.18%        65.02%
          NPL to Loans                        2.06          2.04          2.29
          Net Charge-Off Ratio                0.19          0.26          0.41
 
 
     INTEGRA BANK CORPORATION
     SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
     (in thousands, except per share data)
 
                                                              2000
                                                    4th Qtr             YTD
 
     EARNINGS DATA
           Net Income                                $7,791           $30,491
           Net Income-Pre Goodwill                    8,534            33,508
           Basic Earnings Per Share                    0.47              1.77
           Diluted Earnings Per Share                  0.47              1.77
           Diluted Earnings Per Share-
            Pre Goodwill                               0.51              1.94
           Dividends                                   .235              .865
           Book Value                                 12.74             12.74
           Book Value GAAP                            12.94             12.94
           Price/Earnings Ratio                       13.67             14.44
 
     PERFORMANCE RATIOS
           Return on Assets                            1.08%             1.21%
           Return on Equity                           13.95             13.40
           Net Interest Margin (FTE)                   3.68              4.15
           Tier I Capital to Risk Assets               9.33              9.33
           Capital to Risk Assets                     10.58             10.58
           Efficiency Ratio                           51.96             50.76
 
     AT PERIOD END
           Assets                                $3,068,818        $3,068,818
           Interest-Earning Assets                2,851,113         2,851,113
           Loans                                  1,689,290         1,689,290
           Allowance for Loan Losses                 25,264            25,264
           Deposits                               1,871,036         1,871,036
           Interest-Bearing Liabilities           2,630,549         2,630,549
           Shareholders' Equity                     205,517           205,517
           Unrealized Gains/(Losses)
              on Market Sec (FASB 115)                3,149             3,149
 
 
     AVERAGE BALANCES
           Assets                                $2,880,150        $2,511,947
           Interest-Earning Assets                2,698,903         2,352,041
           Loans                                  1,667,389         1,679,881
           Allowance for Loan Losses                 24,495            25,044
           Deposits                               1,766,639         1,699,569
           Interest-Bearing Liabilities           2,456,720         2,076,250
           Shareholders' Equity                     220,120           228,490
           Shareholders' Equity GAAP                222,168           227,573
           Basic Shares                              16,665            17,233
           Fully Diluted Shares                      16,707            17,254
 
 
     ASSET QUALITY
           Allowance for Loan Losses to
            Loans                                      1.50%             1.50%
           Non-Performing Assets                    $38,521           $38,521
           Non-Performing Loans (NPL)                36,999            36,999
           Non-Accrual Loans Included
            Above                                    33,079            33,079
           Net Charge-Offs                            1,507             5,131
           Allowance to NPL                           68.28%            68.28%
           NPL to Loans                                2.19              2.19
           Net Charge-Off Ratio                        0.36              0.31
 
 
     INTEGRA BANK CORPORATION
     UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
     (In thousands, except for share and per share data)
 
                                              March 31, December 31,  March 31,
     ASSETS                                      2001        2000        2000
     Cash and due from banks                   $74,990     $73,934     $47,290
     Federal funds sold and other short-
      term investments                         312,784     164,329       7,205
     Securities available for sale           1,021,454     997,494     431,334
     Loans                                   1,815,866   1,689,290   1,695,881
     Less:  Allowance for loan losses          (29,004)    (25,264)    (25,406)
     Net Loans                               1,786,862   1,664,026   1,670,475
     Premises and equipment                     52,582      49,390      45,477
     Intangible assets                          65,398      55,012      35,631
     Other assets                               56,845      64,633      52,617
     TOTAL ASSETS                           $3,370,915  $3,068,818  $2,290,029
 
     LIABILITIES
     Deposits:
     Non-interest-bearing demand              $184,291    $199,226    $185,258
     Interest-bearing savings and time       2,044,145   1,671,810   1,507,985
     Total deposits                          2,228,436   1,871,036   1,693,243
     Short-term borrowings                     225,088     383,735      86,804
     Other borrowings                          608,776     540,504     225,213
     Guaranteed preferred beneficial
      interests in the Corporation's subordinated
      debentures                                34,500      34,500      34,500
     Other liabilities                          29,507      33,526      21,917
     TOTAL LIABILITIES                       3,126,307   2,863,301   2,061,677
 
     SHAREHOLDERS' EQUITY
     Preferred stock - 1,000,000 shares
      authorized - None outstanding
     Common stock - $1.00 stated value
        Shares authorized:    29,000,000
        Shares outstanding: 17,396,036,
         15,880,999 and 17,459,254,
         respectively                           17,396      15,881      17,459
     Capital surplus                           128,346      99,497     137,118
     Retained earnings                          89,747      86,990      75,492
     Unearned compensation                        (368)          -           -
     Accumulated other comprehensive income      9,487       3,149      (1,717)
     TOTAL SHAREHOLDERS' EQUITY                244,608     205,517     228,352
     TOTAL LIABILITIES AND SHAREHOLDERS'
      EQUITY                                $3,370,915  $3,068,818  $2,290,029
 
 
     INTEGRA BANK CORPORATION
     UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
     (In thousands, except for share and per share data)
 
                                                      Three Months Ended
                                                          March 31,
                                                     2001              2000
     INTEREST INCOME
     Interest and fees on loans and leases          $38,381           $36,812
     Interest and dividends on securities            17,517             5,270
     Interest on federal funds sold and
      other investments                               3,329               184
     Total interest income                           59,227            42,266
 
     INTEREST EXPENSE
     Interest on deposits                            23,295            16,302
     Interest on short-term borrowings                3,987               749
     Interest on other borrowings                     9,766             3,234
     Total interest expense                          37,048            20,285
 
     NET INTEREST INCOME                             22,179            21,981
     Provision for loan losses                        1,695             1,050
     Net interest income after provision
      for loan losses                                20,484            20,931
 
     NON-INTEREST INCOME
     Trust income                                       575               544
     Service charges on deposit accounts              2,157             1,784
     Other service charges and fees                   1,467             1,140
     Securities gains (losses)                        1,997               (37)
     Other                                            1,367             1,979
     Total non-interest income                        7,563             5,410
 
     NON-INTEREST EXPENSE
     Salaries, wages and other employee
      benefits                                        9,072             7,852
     Occupancy expense                                1,137               904
     Equipment expense                                1,120               974
     Amortization of intangible assets                1,073               890
     Other                                            5,714             4,212
     Total non-interest expense                      18,116            14,832
     Income before income taxes and
      cumulative effect of accounting
      change                                          9,931            11,509
     Income taxes                                     2,801             3,627
     Income before cumulative effect of
      accounting change                               7,130             7,882
     Cumulative effect of accounting
      change, net of tax                               (273)                -
     NET INCOME                                      $6,857            $7,882
     Income excluding amortization of
      intangible assets                              $7,765            $8,668
 
     Earnings per share:
          Basic:
               Income before cumulative
                effect of accounting
                change                                $0.42             $0.45
               Cumulative effect of
                accounting change, net of
                tax                                   (0.01)                -
               Net Income                             $0.41             $0.45
 
          Diluted:
               Income before cumulative
                effect of accounting
                change                                $0.42             $0.45
               Cumulative effect of
                accounting change, net of
                tax                                   (0.01)              -
               Net Income                             $0.41             $0.45
 
     Weighted average shares outstanding:
        Basic                                    16,863,713        17,492,103
        Diluted                                  16,893,813        17,553,665
 
 

SOURCE Integra Bank Corporation
    EVANSVILLE, Ind., April 18 /PRNewswire/ -- Integra Bank Corporation
 (Nasdaq: IBNK) ( www.integrabank.com ) today reported income before the
 cumulative effect of a change in accounting principle of $7,130,000 or $0.42
 per diluted share for the first quarter of 2001, compared with $7,882,000 or
 $0.45 per diluted share for the same period a year ago.
     Michael T. Vea, Chairman, President and Chief Executive Officer of Integra
 Bank Corporation said, "Our first quarter performance was negatively
 influenced by the Federal Reserve actions resulting in a drop in market
 interest rates during the first quarter and the "initial" impact on earnings
 of our recent acquisition of Webster Bancorp, Inc. which was completed on
 January 31st of this year."  Vea further commented, "The Federal Reserve
 dropped interest rates a total of 1.50% (150 basis points) during the first
 quarter of this year.  When these rate reductions occur, Integra immediately
 reduces the interest charged on floating rate loans.  Integra will also begin
 to reduce the interest rates paid for supporting liabilities as market
 conditions allow, which generally occurs at a slower pace.  The impact of the
 combination of these loan and deposit market rate changes is a narrowing of
 our net interest margin, until the reduction in rates paid for interest
 bearing liabilities catches up to the immediate reduction in loan rates.  This
 stabilization process will generally take place over a 45 to 60 day period of
 time.  The temporary aberration occurring in our net interest margin during
 the first quarter was exacerbated by the magnitude and rapidity of the Federal
 Reserve actions."
     Vea also commented, "Our integration of Webster into the Integra family is
 proceeding on schedule. Our second quarter will reflect the full impact of the
 synergies associated with this acquisition; whereas, our first quarter results
 included the full absorption of their overhead and other integration costs
 incurred."
     "Net interest income totaled $22,179,000 for the first quarter of 2001,
 virtually flat when compared with the $21,981,000 recorded in the first
 quarter of last year despite the narrowing in our net interest margin from
 4.56% to 3.09%", Vea said. "Average earning assets rose almost $1 billion
 during this period of time, with most of the increase reflected in securities
 available for sale and other short term investments.  At March 31, 2001, the
 unrealized gain in portfolio securities was approximately $16 million,
 compared with an unrealized loss of almost $3 million a year ago", Vea added.
     Non-interest income, excluding securities gains and the $1.8 million gain
 on sale of mortgage servicing rights in 2000, totaled $5,566,000 in 2001,
 compared with $3,639,000 in 2000.  Of the $1,927,000 increase, the
 acquisitions of the Bowling Green branches and Webster contributed
 approximately $314,000.
     Non-interest expenses amounted to $18,116,000 for the current quarter,
 compared with $14,832,000 a year ago.  Included in the $3,284,000 rise in non-
 interest expenses are operating costs, including integration costs, of
 $1,864,000 associated with the recent acquisitions.
     Effective January 1, 2001, Integra adopted SFAS No. 133 issued by the
 Financial Accounting Standards Board. SFAS 133 established new accounting
 principles for derivatives and hedging activities.  In the past, Integra (and
 most other companies) had included premiums paid for interest rate caps in the
 carrying amounts of those liabilities being hedged and amortized those amounts
 as an adjustment to interest expense over the contractual terms of the caps.
 Upon SFAS 133's initial application, all derivatives must be measured at their
 fair value. The one time cumulative effect of adopting the new accounting
 principle had an unfavorable after tax impact on first quarter 2001 net income
 of approximately $273,000.
     "Although our first quarter financial performance didn't meet our
 aggressive internal expectations, our progress towards becoming a high
 performing banking organization is well underway.  We will continue to
 maintain our focus of continually improving customer service, product
 offerings and creating shareholder value," Vea said.
 
     "Forward-looking statements" as defined in the Private Securities
 Litigation Reform Act of 1995 may be included in this release.  A variety of
 factors could cause Integra Bank Corporation's actual results to differ from
 those expected at the time of this release.  Investors are urged to carefully
 review and consider the various disclosures made by Integra Bank Corporation
 in its periodic reports filed with the Securities and Exchange Commission.
 
     Profile of Integra Bank Corporation (Nasdaq: IBNK)
     Integra Bank Corporation (Nasdaq: IBNK) ( www.integrabank.com ) is a
 $3.4 billion bank holding company headquartered in Evansville, Indiana, which
 currently operates 77 locations in Indiana, Kentucky, Illinois and Ohio and
 provides 24-hour banking convenience through a network of 128 ATMs and its
 online banking service BANK ANYTIME.  Integra Bank Corporation recently
 received the highest rating attainable from IDC Financial Publishing.
 
 
     INTEGRA BANK CORPORATION
     SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
     (in thousands, except per share data)
 
                                                              2001
                                                    1st Qtr             YTD
 
     EARNINGS DATA
            Net Income                               $6,857            $6,857
            Net Income-Pre Goodwill                   7,765             7,765
            Basic Earnings Per Share                   0.41              0.41
            Diluted Earnings Per Share                 0.41              0.41
            Diluted Earnings Per Share
              -Pre Goodwill                            0.46              0.46
            Dividends                                  .235              .235
            Book Value                                13.52             13.52
            Book Value GAAP                           14.06             14.06
            Price/Earnings Ratio                      12.55             12.55
 
     PERFORMANCE RATIOS
            Return on Assets                            .85%              .85%
            Return on Equity                          12.17             12.17
            Net Interest Margin (FTE)                  3.09              3.09
            Tier I Capital to Risk Assets              9.58              9.58
            Capital to Risk Assets                    10.83             10.83
            Efficiency Ratio                          59.12             59.12
 
     AT PERIOD END
            Assets                               $3,370,915        $3,370,915
            Interest-Earning Assets               3,150,104         3,150,104
            Loans                                 1,815,866         1,815,866
            Allowance for Loan Losses                29,004            29,004
            Deposits                              2,228,436         2,228,436
            Interest-Bearing Liabilities          2,912,509         2,912,509
            Shareholders' Equity                    244,608           244,608
            Unrealized Gains/(Losses)
               on Market Sec (FASB 115)               9,487             9,487
 
     AVERAGE BALANCES
            Assets                               $3,256,328        $3,256,328
            Interest-Earning Assets               3,052,574         3,052,574
            Loans                                 1,774,279         1,774,279
            Allowance for Loan Losses                27,703            27,703
            Deposits                              2,100,968         2,100,968
            Interest-Bearing Liabilities          2,824,409         2,824,409
            Shareholders' Equity                    222,792           222,792
            Shareholders' Equity GAAP               228,491           228,491
            Basic Shares                             16,864            16,864
            Fully Diluted Shares                     16,894            16,894
 
     ASSET QUALITY
            Allowance for Loan Losses to
             Loans                                     1.60%             1.60%
            Non-Performing Assets                   $41,039           $41,039
            Non-Performing Loans (NPL)               38,959            38,959
            Non-Accrual Loans
              Included Above                         35,195            35,195
            Net Charge-Offs                           1,973             1,973
            Allowance to NPL                          74.45%            74.45%
            NPL to Loans                               2.15              2.15
            Net Charge-Off Ratio                       0.45              0.45
 
 
     INTEGRA BANK CORPORATION
     SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
     (in thousands, except per share data)
 
                                                           2000
                                           1st Qtr       2nd Qtr       3rd Qtr
 
     EARNINGS DATA
          Net Income                        $7,882        $7,798        $7,020
          Net Income-Pre Goodwill            8,668         8,543         7,763
          Basic Earnings Per Share            0.45          0.45          0.40
          Diluted Earnings Per Share          0.45          0.45          0.40
          Diluted Earnings Per Share-
           Pre Goodwill                       0.49          0.49          0.45
          Dividends                           .210          .210          .210
          Book Value                         13.18         13.38         13.54
          Book Value GAAP                    13.08         13.21         13.71
          Price/Earnings Ratio               10.50          9.44         13.87
 
     PERFORMANCE RATIOS
          Return on Assets                    1.43%         1.31%         1.09%
          Return on Equity                   13.98         13.76         11.98
          Net Interest Margin (FTE)           4.56          4.40          3.99
          Tier I Capital to Risk Assets      13.83         13.84         13.55
          Capital to Risk Assets             15.08         15.09         14.80
          Efficiency Ratio                   49.04         50.99         52.56
 
     AT PERIOD END
          Assets                        $2,290,029    $2,468,199    $2,706,135
          Interest-Earning Assets        2,133,231     2,303,915     2,529,795
          Loans                          1,695,881     1,660,372     1,646,586
          Allowance for Loan Losses         25,406        25,156        24,494
          Deposits                       1,693,243     1,635,197     1,639,749
          Interest-Bearing Liabilities   1,854,502     2,032,271     2,275,281
          Shareholders' Equity             228,352       229,528       237,271
          Unrealized Gains/(Losses)
             on Market Sec (FASB 115)       (1,717)       (2,807)        3,072
 
     AVERAGE BALANCES
          Assets                        $2,215,291    $2,394,587    $2,558,095
          Interest-Earning Assets        2,069,297     2,241,182     2,399,216
          Loans                          1,703,156     1,695,998     1,652,916
          Allowance for Loan Losses         25,234        25,406        25,045
          Deposits                       1,713,091     1,672,113     1,646,450
          Interest-Bearing Liabilities   1,773,463     1,950,545     2,124,560
          Shareholders' Equity             224,687       231,312       233,332
          Shareholders' Equity GAAP        226,787       228,287       232,746
          Basic Shares                      17,492        17,413        17,368
          Fully Diluted Shares              17,534        17,426        17,373
 
     ASSET QUALITY
          Allowance for Loan Losses to
           Loans                              1.50%         1.52%         1.49%
          Non-Performing Assets            $36,071       $35,119       $38,514
          Non-Performing Loans (NPL)        34,996        33,916        37,672
          Non-Accrual Loans
           Included Above                   31,224        30,288        33,745
          Net Charge-Offs                      799         1,111         1,714
          Allowance to NPL                   72.60%        74.18%        65.02%
          NPL to Loans                        2.06          2.04          2.29
          Net Charge-Off Ratio                0.19          0.26          0.41
 
 
     INTEGRA BANK CORPORATION
     SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
     (in thousands, except per share data)
 
                                                              2000
                                                    4th Qtr             YTD
 
     EARNINGS DATA
           Net Income                                $7,791           $30,491
           Net Income-Pre Goodwill                    8,534            33,508
           Basic Earnings Per Share                    0.47              1.77
           Diluted Earnings Per Share                  0.47              1.77
           Diluted Earnings Per Share-
            Pre Goodwill                               0.51              1.94
           Dividends                                   .235              .865
           Book Value                                 12.74             12.74
           Book Value GAAP                            12.94             12.94
           Price/Earnings Ratio                       13.67             14.44
 
     PERFORMANCE RATIOS
           Return on Assets                            1.08%             1.21%
           Return on Equity                           13.95             13.40
           Net Interest Margin (FTE)                   3.68              4.15
           Tier I Capital to Risk Assets               9.33              9.33
           Capital to Risk Assets                     10.58             10.58
           Efficiency Ratio                           51.96             50.76
 
     AT PERIOD END
           Assets                                $3,068,818        $3,068,818
           Interest-Earning Assets                2,851,113         2,851,113
           Loans                                  1,689,290         1,689,290
           Allowance for Loan Losses                 25,264            25,264
           Deposits                               1,871,036         1,871,036
           Interest-Bearing Liabilities           2,630,549         2,630,549
           Shareholders' Equity                     205,517           205,517
           Unrealized Gains/(Losses)
              on Market Sec (FASB 115)                3,149             3,149
 
 
     AVERAGE BALANCES
           Assets                                $2,880,150        $2,511,947
           Interest-Earning Assets                2,698,903         2,352,041
           Loans                                  1,667,389         1,679,881
           Allowance for Loan Losses                 24,495            25,044
           Deposits                               1,766,639         1,699,569
           Interest-Bearing Liabilities           2,456,720         2,076,250
           Shareholders' Equity                     220,120           228,490
           Shareholders' Equity GAAP                222,168           227,573
           Basic Shares                              16,665            17,233
           Fully Diluted Shares                      16,707            17,254
 
 
     ASSET QUALITY
           Allowance for Loan Losses to
            Loans                                      1.50%             1.50%
           Non-Performing Assets                    $38,521           $38,521
           Non-Performing Loans (NPL)                36,999            36,999
           Non-Accrual Loans Included
            Above                                    33,079            33,079
           Net Charge-Offs                            1,507             5,131
           Allowance to NPL                           68.28%            68.28%
           NPL to Loans                                2.19              2.19
           Net Charge-Off Ratio                        0.36              0.31
 
 
     INTEGRA BANK CORPORATION
     UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
     (In thousands, except for share and per share data)
 
                                              March 31, December 31,  March 31,
     ASSETS                                      2001        2000        2000
     Cash and due from banks                   $74,990     $73,934     $47,290
     Federal funds sold and other short-
      term investments                         312,784     164,329       7,205
     Securities available for sale           1,021,454     997,494     431,334
     Loans                                   1,815,866   1,689,290   1,695,881
     Less:  Allowance for loan losses          (29,004)    (25,264)    (25,406)
     Net Loans                               1,786,862   1,664,026   1,670,475
     Premises and equipment                     52,582      49,390      45,477
     Intangible assets                          65,398      55,012      35,631
     Other assets                               56,845      64,633      52,617
     TOTAL ASSETS                           $3,370,915  $3,068,818  $2,290,029
 
     LIABILITIES
     Deposits:
     Non-interest-bearing demand              $184,291    $199,226    $185,258
     Interest-bearing savings and time       2,044,145   1,671,810   1,507,985
     Total deposits                          2,228,436   1,871,036   1,693,243
     Short-term borrowings                     225,088     383,735      86,804
     Other borrowings                          608,776     540,504     225,213
     Guaranteed preferred beneficial
      interests in the Corporation's subordinated
      debentures                                34,500      34,500      34,500
     Other liabilities                          29,507      33,526      21,917
     TOTAL LIABILITIES                       3,126,307   2,863,301   2,061,677
 
     SHAREHOLDERS' EQUITY
     Preferred stock - 1,000,000 shares
      authorized - None outstanding
     Common stock - $1.00 stated value
        Shares authorized:    29,000,000
        Shares outstanding: 17,396,036,
         15,880,999 and 17,459,254,
         respectively                           17,396      15,881      17,459
     Capital surplus                           128,346      99,497     137,118
     Retained earnings                          89,747      86,990      75,492
     Unearned compensation                        (368)          -           -
     Accumulated other comprehensive income      9,487       3,149      (1,717)
     TOTAL SHAREHOLDERS' EQUITY                244,608     205,517     228,352
     TOTAL LIABILITIES AND SHAREHOLDERS'
      EQUITY                                $3,370,915  $3,068,818  $2,290,029
 
 
     INTEGRA BANK CORPORATION
     UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
     (In thousands, except for share and per share data)
 
                                                      Three Months Ended
                                                          March 31,
                                                     2001              2000
     INTEREST INCOME
     Interest and fees on loans and leases          $38,381           $36,812
     Interest and dividends on securities            17,517             5,270
     Interest on federal funds sold and
      other investments                               3,329               184
     Total interest income                           59,227            42,266
 
     INTEREST EXPENSE
     Interest on deposits                            23,295            16,302
     Interest on short-term borrowings                3,987               749
     Interest on other borrowings                     9,766             3,234
     Total interest expense                          37,048            20,285
 
     NET INTEREST INCOME                             22,179            21,981
     Provision for loan losses                        1,695             1,050
     Net interest income after provision
      for loan losses                                20,484            20,931
 
     NON-INTEREST INCOME
     Trust income                                       575               544
     Service charges on deposit accounts              2,157             1,784
     Other service charges and fees                   1,467             1,140
     Securities gains (losses)                        1,997               (37)
     Other                                            1,367             1,979
     Total non-interest income                        7,563             5,410
 
     NON-INTEREST EXPENSE
     Salaries, wages and other employee
      benefits                                        9,072             7,852
     Occupancy expense                                1,137               904
     Equipment expense                                1,120               974
     Amortization of intangible assets                1,073               890
     Other                                            5,714             4,212
     Total non-interest expense                      18,116            14,832
     Income before income taxes and
      cumulative effect of accounting
      change                                          9,931            11,509
     Income taxes                                     2,801             3,627
     Income before cumulative effect of
      accounting change                               7,130             7,882
     Cumulative effect of accounting
      change, net of tax                               (273)                -
     NET INCOME                                      $6,857            $7,882
     Income excluding amortization of
      intangible assets                              $7,765            $8,668
 
     Earnings per share:
          Basic:
               Income before cumulative
                effect of accounting
                change                                $0.42             $0.45
               Cumulative effect of
                accounting change, net of
                tax                                   (0.01)                -
               Net Income                             $0.41             $0.45
 
          Diluted:
               Income before cumulative
                effect of accounting
                change                                $0.42             $0.45
               Cumulative effect of
                accounting change, net of
                tax                                   (0.01)              -
               Net Income                             $0.41             $0.45
 
     Weighted average shares outstanding:
        Basic                                    16,863,713        17,492,103
        Diluted                                  16,893,813        17,553,665
 
 SOURCE  Integra Bank Corporation