Integra Financial Corp. said it will report a $14 million onetime charge in the third quarter as a result of plans to write down the value of its headquarters building in preparation for a relocation.
The Pittsburgh-based company said the writedown was taken to reflect the fair market value of the 75-year-old complex.
Integra is planning to move because of new space needs related to recent acquisitions, said Charles R.L. Skillington, the company's vice chairman and treasurer.
The bank, which plans to sell or lease the space, has not yet developed final plans for a new location.
No Harm to Earnings Seen
The special charge will not affect integra's ability to achieve analysts' earnings projections in the quarter ended Sept. 30, because of continued strong earnings net securities gains that it took, Mr. Skillington said.
Integra, which has $14.2 billion of assets, is expected to report $1.08 a share in the third quarter, according to the mean estimate of six analysts polled by Zacks Investment Research Co., Chicago.
Mr. Skillington said the writedown is part of a comprehensive review of Integra's real estate values and long-term facilities requirements.
Integra has doubled in size over the last three and a half years through acquisitions.
In January, the bank closed its largest purchase to date, Equimark Corp., which added $3 billion of assets and 1,000 employees.
The bank currently has 4,000 employees, 800 of whom are housed in its Pittsburgh headquarters.
Seeking Greater Efficiency
Integra consolidated some operations earlier this year, relocating 600 operations and mortgage banking employees from downtown Pittsburgh to a building elsewhere in the city.
"We're looking for more efficient and less costly space," said Mr. Skillington.
In afternoon trading on Friday, Integra's stock was unchanged at $48 a share.