First Indiana Bank said it had acquired servicing rights on $421 mil- lion of mortgages, in deals with two other financial institutions.

The acquisition brings to $1.1 billion the bank's portfolio of loans serviced for investors.

"This the largest purchase of servicing rights in First Indiana's history," said Owen B. Melton Jr., president and chief executive. "It illustrates our ongoing commitment to mortgage banking as a source of fee income."

He added that the deal is a key part of "plans to diversify sources of income as Central Indiana's leading mortgage banker."

The servicing rights relate to loans in Indiana, Ohio, and Illinois.

First Indiana disclosed neither the identities of the sellers nor the terms of the deals.

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