Integra Bank Selling More Branches

FNB Bank Inc. of Mayfield, Ky., has agreed to buy three Kentucky bank branches and a pool of loans from Integra Bank of Evansville, Ind.

The deal, announced late Wednesday, would provide a capital cushion for the $2.9 billion-asset Integra, which is scaling back its four-state branch network to preserve capital amid rising problem assets. The transaction, expected to close in the third quarter, is the fourth sale of branch clusters the company has announced this year.

The $191.4 million-asset FNB is to acquire about $125 million of deposit liabilities related to the three branches and $30.1 million of branch-related loans. It also would acquire a $62.1 million portfolio of commercial, agricultural, consumer and commercial real estate loans selected by the bank from other Integra branches.

FNB is to pay a 5.3% deposit premium and would acquire the loans at par value. After the acquisition, FNB would have assets of about $340 million, it said.

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