Integra Bank Corporation Reports Third Quarter 2009 Results

EVANSVILLE, Ind., Oct. 29, 2009 (GLOBE NEWSWIRE) -- Integra Bank Corporation
(Nasdaq:IBNK) today reported financial results for the third quarter of 2009.

The net loss available to common shareholders for the third quarter of 2009 was
$20.9 million, or $1.01 per diluted share, compared to $49.6 million, or $2.39
per diluted share for the second quarter of 2009. The provision for loan losses
was $18.9 million, down $13.6 million from $32.5 million during the second
quarter of 2009, while net charge-offs totaled $20.0 million, or 3.42% of total
loans on an annualized basis, down $8.8 million from $28.8 million, or 4.80% of
total loans annualized for the second quarter of 2009. Net charge-offs included
$1.3 million related to a program designed to obtain early repayment of
commercial real estate loans. The net interest margin for the third quarter of
2009 was 2.35%, compared to 2.34% in the second quarter. The net loss available
to shareholders for the nine months ended September 30, 2009 was $98.9 million,
or $4.78 per diluted share.

The net loss for both the second and third quarters of 2009 include $1.1 million
of dividends on the preferred shares sold to the Treasury Department in February
2009 under the Capital Purchase Program and discount accretion on the related
warrant issued to the Treasury. The net loss for the third quarter also includes
securities gains of $6.6 million, partially offset by trading losses of $1.2
million and an increase in the income tax valuation allowance of $6.9 million.
The net loss for the second quarter included an other-than-temporary securities
impairment (OTTI) charge of $20.3 million, an increase of $13.5 million in the
income tax valuation allowance, a special 5 basis point FDIC assessment of $1.6
million and a $1.4 million non-tax deductible mark-to-market adjustment for the
warrant that reduced earnings.

The Company previously announced that its banking subsidiary, Integra Bank N.A.,
had entered into two agreements with the Bank of Kentucky, Inc. First, Integra
Bank agreed to sell its banking offices located in Crittenden, Dry Ridge and
Warsaw, Kentucky and certain deposit liabilities and assets of banking offices
located in Union and Florence, Kentucky. In this transaction, The Bank of
Kentucky will assume approximately $85.0 million of deposit liabilities related
to the five branches at a premium of approximately $5.2 million, and buy certain
branch-related assets, including at least $35.0 million in selected loans at
book value, less applicable reserves. All other assets will be sold at their
book values. Integra Bank intends to close the Union and Florence banking
offices following the completion of this transaction and seek a buyer for the
real estate. This transaction is subject to customary conditions, including
regulatory approval for the branch sale. The second transaction was the sale of
a portfolio of primarily commercial loans originated from Integra Bank's
Covington, Kentucky loan production office. The sale of a portion of the
commercial loans, totaling $50.0 million, occurred in September 2009. It is
anticipated that additional commercial loans related to Integra Bank's
Covington, Kentucky loan production office will be purchased prior to the
closing of the branch purchase transaction, which is expected to close during
the fourth quarter of 2009. The Company estimates that approximately $33.0
million in additional loans are available to be purchased at the discretion of
the Bank of Kentucky, and classified these loans as held for sale at September
30, 2009.

During the third quarter of 2009, the Company sold $105.7 million of agency
issued collateralized mortgage obligations, $65.8 million of mortgage backed
securities and $54.3 million of municipal securities at a gain of $6.6 million.
A portion of the proceeds from these sales were used to purchase $170.7 million
of GNMA securities, which carry a zero percent risk weight for regulatory
capital requirements, thereby reducing the amount of risk weighted assets and
improving total risk-based capital ratios. The repositioning improved Integra
Bank's total risk-based capital ratio by approximately 45 basis points.

"While we continue to be disappointed with our earnings, we did execute
initiatives during the third quarter designed to improve our credit, liquidity
and capital positions and we will continue to take additional steps in the
coming months," stated Mike Alley, Chairman and CEO. "During the third quarter,
we successfully repositioned our securities portfolio, reduced commercial real
estate loan balances, improved Integra's Bank's capital ratios, and stabilized
our non-performing asset levels and credit losses. These actions are consistent
with our intent to maintain strong liquidity and capital positions, while
continuing to reduce non-performing assets and credit losses," Alley added.

The allowance to total loans increased 10 basis points during the third quarter
of 2009, to 3.60% at September 30, 2009, while the allowance to non-performing
loans decreased from 45% to 42%. Non-performing loans increased $7.5 million to
$189.9 million, or 8.61% of total loans, compared to $182.4 million, or 7.76% of
total loans at June 30, 2009. Other real estate owned decreased $2.9 million to
$26.4 million during the third quarter of 2009, bringing total non-performing
assets to $216.3 million at September 30, 2009.

Net interest income was $16.1 million for the third quarter of 2009, compared to
$16.8 million for the second quarter of 2009, while the net interest margin was
2.35%, compared to 2.34% for the second quarter of 2009. Liability costs
declined 20 basis points during the quarter, while earning asset yields declined
16 basis points. The decline in net interest income was primarily driven by a
decline in average earning assets of $171.6 million.

Commercial loan average balances decreased $67.9 million in the third quarter of
2009, or 14.9% on an annualized basis. This included reductions in construction
and land development loans of $119.8 million and commercial and industrial loans
of $18.4 million, partially offset by an increase in commercial real estate
loans of $70.3 million. The change in the portfolio reflecting the reductions of
construction and land development loans and the increase of commercial real
estate loans reflects the completion of construction for several of the projects
securing these loans, net of payoffs and paydowns. The sale of $50.0 million of
loans to the Bank of Kentucky occurred during September and did not materially
impact average loan balances for the quarter. Low cost deposit average balances
increased $57.1 million during the third quarter of 2009 to $1.1 billion.

Non-interest income was $14.8 million for the third quarter of 2009, compared to
$(11.0) million for the second quarter of 2009. The third quarter of 2009
included $6.6 million of securities gains and $1.2 million of trading losses, as
well as a $0.8 million loss reflected when the Company reclassified its bank
owned life insurance as available for sale or surrender. The second quarter of
2009 included an OTTI charge on securities of $20.3 million, securities gains
from sales of $1.5 million, and a $1.4 million reduction to non-interest income
for a mark-to-market adjustment for the Treasury warrant. Deposit service
charges increased $0.3 million during the third quarter of 2009 from the second
quarter of 2009.

Non-interest expense was $24.4 million for the third quarter of 2009, compared
to $29.2 million for the second quarter of 2009. Decreases during the third
quarter of 2009 compared to the second quarter included debt prepayment
penalties of $1.5 million, personnel expense of $1.4 million, FDIC insurance of
$1.3 million, professional fees of $0.4 million and low income housing
partnership losses of $0.3 million. These decreases offset an increase in loan
and other real estate owned expense of $0.7 million.

Income tax expense was $7.3 million for the third quarter of 2009, as a federal
and state income tax valuation allowance of $6.9 million and expected tax
expense on the bank owned life insurance transaction of $5.6 million more than
offset the tax benefit of the quarter's loss.

Integra Bank's total risk based capital ratio was 10.20%, an increase of 36
basis points from June 30, 2009. The increase resulted from the sale of
securities and reinvestment of those funds into lower risk-weighted assets, the
sale of loans to the Bank of Kentucky, other declines in loan balances, and
capital infusions from the Company of $9.9 million, partially offset by the
impact of the quarter's net loss. Integra Bank's tier 1 risk-based capital ratio
increased 36 basis points to 8.92% and its tier 1 leverage ratio increased 14
basis points to 6.61%. All of Integra Bank's regulatory capital ratios are above
the minimums for well-capitalized status. The Company's tangible common equity
to tangible assets ratio declined 53 basis points to 3.44%.

On September 18, 2009, the Company announced the suspension of cash dividends on
its common stock for an indefinite period. The quarterly cash dividend had
previously been $0.01 per share.

Beginning in the fourth quarter of 2009, the Company intends to suspend the
payment of cash dividends on its outstanding preferred stock and defer the
payment of interest on its outstanding junior subordinated notes related to its
trust preferred securities. The terms of the junior subordinated notes and the
trust documents allow the Company to defer payments of interest for up to five
years without default or penalty. During the deferral period, the respective
trusts will likewise suspend the declaration and payment of dividends on the
trust preferred securities. Also during the deferral period, the Company may
not, among other things and with limited exceptions, pay cash dividends on or
repurchase its common stock or preferred stock nor make any payment on
outstanding debt obligations that rank equally with or junior to the junior
subordinated notes.

The Company believes that the suspension of cash dividends on its preferred and
common stock and the deferral of interest payments on the junior subordinated
notes will preserve approximately $1.8 million per quarter (compared with the
continuing level of dividend and interest payments), thereby enhancing liquidity
and the Company's ability to bolster Integra Bank's capital ratios. The decision
to defer payment of dividends and interest is in line with guidance issued by
the Federal Reserve in February 2009, as revised in March 2009 (SR-09-4) related
to payment of dividends on common and preferred stock, as well as interest on
the subordinated notes underlying trust preferred securities.

Conference Call

Integra executive management will hold a conference call to discuss the contents
of this news release, business highlights and its financial outlook on,
Thursday, October 29, 2009, at 10:00 a.m. CT. The telephone number for the
conference call is 866-861-4873, confirmation code 1408075. The conference call
will also be available by webcast at http://www.integrabank.com.

About Integra

Headquartered in Evansville, Indiana, Integra Bank Corporation is the parent of
Integra Bank N.A. As of September 30, 2009, Integra Bank has $3.3 billion in
total assets and operates 74 banking centers and 122 ATMs at locations in
Indiana, Kentucky, Illinois and Ohio. Integra Bank Corporation's common stock is
listed on the Nasdaq Global Market under the symbol IBNK. Additional information
may be found at www.integrabank.com.

The Integra Bank Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3858

Safe Harbor

Certain statements made in this release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. When used in this release, the words "may," "will," "should," "would,"
"anticipate," "expect," "plan," "believe," "intend," and similar expressions
identify forward-looking statements. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause our
actual results, performance or achievements to be materially different from the
results, performance or achievements expressed or implied by such
forward-looking statements. Factors that might cause such a difference include,
but are not limited to: (1) the effects of the current recession in the markets
in which we primarily do business; (2) changes in the interest rate environment
that reduce our net interest margin; (3) unanticipated additional loan
charge-offs and loan loss provisions; (4) our ability to maintain required
capital levels and adequate sources of funding and liquidity; (5) additional
declines in value of our investment securities portfolio, including adverse
developments affecting the issuers of trust preferred and collateralized
securities we hold; (6) changes and trends in capital markets; (7) competitive
pressures from other depository institutions that increase our funding costs;
(8) unanticipated effects or changes in critical accounting policies and
judgments; (9) legislative or regulatory changes or actions, or significant
litigation that adversely affect us or the banking industry; (10) our ability to
attract and retain key personnel; (11) our ability to fully utilize our deferred
tax asset; (12) our ability to maintain security for confidential information in
our computer systems and telecommunications network; (13) the effects of our
participation in the Capital Purchase Program and possible changes to that
program; (14) increases in insurance premiums we pay to the Federal Deposit
Insurance Corporation; (15) our ability to comply with the terms of commitments
we have made to federal banking authorities; (16) the successful completion of
the branch and loan sale transactions announced in September 2009 and other
plans to improve our capital ratios; (17) the impact of our decisions to suspend
paying cash dividends on common and preferred stock and defer interest payments
on our subordinated debt relating to our trust preferred securities (18) damage
to our reputation that could result from adverse developments with respect to
the foregoing, including our ability to retain customers and attract new ones,
our cost of funding and our level of liquidity as well as other factors we
describe in our periodic reports filed with the SEC. We undertake no obligation
to revise or update these risks, uncertainties and other factors except as may
be set forth in our periodic reports.

Summary Operating Results Data

Here is a summary of Integra's third quarter 2009 operating results:

Net income (loss) available to common shareholders of $(20.9) million for third
quarter 2009

-- Compared with $(49.6) million for second quarter 2009
-- Compared with $(33.3) million for third quarter 2008
Diluted net income (loss) per common share of $(1.01) for third quarter 2009

-- Compared with $(2.39) for second quarter 2009
-- Compared with $(1.62) for third quarter 2008
Return on assets of (2.34)% for third quarter 2009

-- Compared with (5.53)% for second quarter 2009
-- Compared with (3.93)% for third quarter 2008
Return on common equity of (60.56)% for third quarter 2009

-- Compared with (111.7)% for second quarter 2009
-- Compared with (41.36)% for third quarter 2008
Net interest margin of 2.35% for third quarter 2009

-- Compared with 2.34% for second quarter 2009
-- Compared with 3.22% for third quarter 2008
Allowance for loan losses of $79.4 million or 3.60% of loans at September 30,
2009

-- Compared with $82.3 million or 3.50% at June 30, 2009
-- Compared with $41.8 million or 1.70% at September 30, 2008
-- Equaled 41.8% of non-performing loans at September 30, 2009,
compared with 45.1% at June 30, 2009 and 49.0% at September 30,
2008
Non-performing assets of $216.3 million or 9.69% of loans and other real estate
owned at September 30, 2009

-- Compared with $211.7 million or 8.90% at June 30, 2009
-- Compared with $92.4 million or 3.75% at September 30, 2008
Annualized net charge-off rate of 3.42% for third quarter 2009

-- Compared with 4.80% for second quarter 2009
-- Compared with 1.31% for third quarter 2008
INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

Sept. 30, Dec. 31, Sept. 30,
ASSETS 2009 2008 2008
---------------------------------------------------------------------
Cash and due from banks $ 391,171 $ 62,354 $ 66,369
Federal funds sold and other
short-term investments 49,946 419 4,128
Loans held for sale (at lower
of cost or market value) 41,253 5,776 6,679
Securities available for sale 342,240 561,739 525,428
Securities held for trading 13,237 -- --
Regulatory stock 29,124 29,155 29,182
Loans:
Commercial loans 1,639,578 1,850,043 1,808,343
Consumer loans 398,212 432,183 431,106
Mortgage loans 167,871 208,017 221,361
Less: Allowance for loan
losses (79,364) (64,437) (41,766)
---------------------------------------------------------------------
Net loans 2,126,297 2,425,806 2,419,044
Premises and equipment 45,296 48,500 49,534
Goodwill -- -- 74,824
Other intangible assets 8,664 9,928 10,359
Other assets 211,097 213,423 171,295
---------------------------------------------------------------------
TOTAL ASSETS $ 3,258,325 $ 3,357,100 $ 3,356,842
=====================================================================

LIABILITIES
Deposits:
Non-interest-bearing demand $ 287,723 $ 284,032 $ 277,086
Savings & interest checking 779,262 600,374 557,767
Money market 291,680 301,411 345,154
Certificates of deposit and
other time deposits 1,114,097 1,154,375 1,205,787
---------------------------------------------------------------------
Total deposits 2,472,762 2,340,192 2,385,794
Short-term borrowings 188,011 415,006 306,182
Long-term borrowings 361,364 360,917 358,676
Other liabilities 33,656 36,194 29,602
---------------------------------------------------------------------
TOTAL LIABILITIES 3,055,793 3,152,309 3,080,254

SHAREHOLDERS' EQUITY
Preferred stock - no par,
$1,000 per share liquidation
preference - 1,000,000 shares
authorized 81,928 -- --
Common stock - $1.00 stated
value - 129,000,000 shares
authorized 20,937 20,749 20,749
Additional paid-in capital 217,205 208,732 208,228
Retained earnings (114,320) (15,754) 66,076
Accumulated other comprehensive
income (loss) (3,218) (8,936) (18,465)
---------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 202,532 204,791 276,588
---------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 3,258,325 $ 3,357,100 $ 3,356,842
=====================================================================

INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)

Three Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2009 2009 2009 2008 2008
---------------------------------------------------------------------
INTEREST INCOME
Interest and
fees on loans
and leases $ 24,566 $ 25,489 $ 25,952 $ 33,235 $ 35,201
Interest and
dividends on
securities
available for
sale 3,857 5,830 6,474 6,811 6,605
Interest on
securities held
for trading 81 22 -- -- --
Dividends on
regulatory
stock 337 157 521 103 385
Interest on
loans held for
sale 89 127 103 85 88
Interest on
federal funds
sold and other
investments 272 174 93 10 26
---------------------------------------------------------------------
Total interest
income 29,202 31,799 33,143 40,244 42,305
INTEREST EXPENSE
Interest on
deposits 10,356 11,759 12,187 13,532 12,888
Interest on
short-term
borrowings 268 583 763 1,447 1,995
Interest on
long-term
borrowings 2,528 2,683 2,710 3,828 3,562
---------------------------------------------------------------------
Total interest
expense 13,152 15,025 15,660 18,807 18,445
---------------------------------------------------------------------
NET INTEREST
INCOME 16,050 16,774 17,483 21,437 23,860
Provision for
loan losses 18,913 32,536 31,394 38,169 17,978
---------------------------------------------------------------------
Net interest
income after
provision for
loan losses (2,863) (15,762) (13,911) (16,732) 5,882
NON-INTEREST
INCOME
---------------------------------------------------------------------
Service charges
on deposit
accounts 5,335 5,035 4,413 5,436 5,884
Trust income 630 563 459 470 573
Debit card
income-
interchange 1,368 1,373 1,257 1,281 1,358
Other service
charges and
fees 1,098 951 1,093 1,142 1,103
Securities gains
(losses) 6,578 (18,835) (1,170) (4,309) 13
Gain (Loss) on
sale of other
assets (219) (22) 2,496 (3) (47)
Warrant fair
value
adjustment -- (1,407) (4,738) -- --
Other 37 1,358 1,682 1,742 1,300
---------------------------------------------------------------------
Total non-
interest income 14,827 (10,984) 5,492 5,759 10,184
NON-INTEREST
EXPENSE
---------------------------------------------------------------------
Salaries and
employee
benefits 10,187 11,561 12,075 11,442 12,125
Occupancy 2,348 2,378 2,581 2,657 2,621
Equipment 749 808 849 875 974
Professional
fees 1,699 2,057 1,730 1,816 1,390
Communication
and
transportation 1,126 1,091 1,161 1,248 1,223
Loan and OREO
expense 2,545 1,888 5,448 1,028 870
Goodwill
impairment -- -- -- 74,824 48,000
Debt prepayment
fees 27 1,511 -- -- --
FDIC Assessment 1,721 3,005 950 479 163
Other 3,967 4,870 4,679 5,199 4,821
---------------------------------------------------------------------
Total non-
interest
expense 24,369 29,169 29,473 99,568 72,187
---------------------------------------------------------------------
Income (Loss)
before income
taxes (12,405) (55,915) (37,892) (110,541) (56,121)
Income taxes
expense
(benefit) 7,330 (7,451) (9,831) (28,919) (22,794)
---------------------------------------------------------------------
NET INCOME
(LOSS) (19,735) (48,464) (28,061) (81,622) (33,327)
---------------------------------------------------------------------
Preferred stock
dividends and
discount
accretion 1,117 1,139 413 -- --
---------------------------------------------------------------------
NET INCOME
(LOSS)
AVAILABLE TO
COMMON
SHAREHOLDERS $(20,852) $(49,603) $(28,474) $(81,622) $(33,327)
---------------------------------------------------------------------
Earnings (Loss)
per common
share:
Basic $ (1.01) $ (2.39) $ (1.37) $ (3.97) $ (1.62)
Diluted (1.01) (2.39) (1.37) (3.97) (1.62)

Weighted average
common shares
outstanding:
Basic 20,707 20,715 20,732 20,569 20,567
Diluted 20,707 20,715 20,732 20,569 20,567

INTEGRA BANK CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)

Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------------------
2009 2008 2009 2008
---------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans
and leases $ 24,566 $ 35,201 $ 76,007 $ 109,760
Interest and dividends on
securities available for
sale 3,857 6,605 16,161 20,781
Interest on securities
held for trading 81 -- 103 570
Dividends on regulatory
stock 337 385 1,015 1,170
Interest on loans held for
sale 89 88 319 281
Interest on federal funds
sold and other
investments 272 26 539 94
---------------------------------------------------------------------
Total interest income 29,202 42,305 94,144 132,656

INTEREST EXPENSE
Interest on deposits 10,356 12,888 34,302 42,131
Interest on short-term
borrowings 268 1,995 1,614 6,116
Interest on long-term
borrowings 2,528 3,562 7,921 11,865
---------------------------------------------------------------------
Total interest expense 13,152 18,445 43,837 60,112
---------------------------------------------------------------------

NET INTEREST INCOME 16,050 23,860 50,307 72,544
Provision for loan losses 18,913 17,978 82,843 27,615
---------------------------------------------------------------------
Net interest income after
provision for loan losses (2,863) 5,882 (32,536) 44,929

NON-INTEREST INCOME
---------------------------------------------------------------------
Service charges on deposit
accounts 5,335 5,884 14,783 15,642
Trust income 630 573 1,652 1,686
Debit card income-
interchange 1,368 1,358 3,998 3,977
Other service charges and
fees 1,098 1,103 3,142 3,997
Securities gains (losses) 6,578 13 (13,427) (6,262)
Gain (Loss) on sale of
other assets (219) (47) 2,255 (59)
Warrant fair value
adjustment -- -- (6,145) --
Other 37 1,300 3,077 4,949
---------------------------------------------------------------------
Total non-interest income 14,827 10,184 9,335 23,930

NON-INTEREST EXPENSE
---------------------------------------------------------------------
Salaries and employee
benefits 10,187 12,125 33,823 36,965
Occupancy 2,348 2,621 7,307 7,722
Equipment 749 974 2,406 2,857
Professional fees 1,699 1,390 5,486 3,925
Communication and
transportation 1,126 1,223 3,378 3,816
Loan and OREO expense 2,545 870 9,881 1,752
Goodwill impairment -- 48,000 -- 48,000
Debt prepayment fees 27 -- 1,538 --
FDIC Assessment 1,721 163 5,676 317
Other 3,967 4,821 13,516 15,131
---------------------------------------------------------------------
Total non-interest expense 24,369 72,187 83,011 120,485
---------------------------------------------------------------------
Income (Loss) before
income taxes (12,405) (56,121) (106,212) (51,626)
Income taxes expense
(benefit) 7,330 (22,794) (9,952) (22,373)
---------------------------------------------------------------------
NET INCOME (LOSS) (19,735) (33,327) (96,260) (29,253)
---------------------------------------------------------------------
Preferred stock dividends
and discount accretion 1,117 -- 2,669 --
---------------------------------------------------------------------
NET INCOME (LOSS)
AVAILABLE TO COMMON
SHAREHOLDERS $ (20,852) $ (33,327) $ (98,929) $ (29,253)
---------------------------------------------------------------------
Earnings (Loss) per share:
Basic $ (1.01) $ (1.62) $ (4.78) $ (1.42)
Diluted (1.01) (1.62) (4.78) (1.42)

Weighted average shares
outstanding:
Basic 20,707 20,567 20,713 20,553
Diluted 20,707 20,567 20,713 20,553

INTEGRA BANK CORPORATION
SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
(In thousands, except for per share data)

Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2009 2009 2009 2008 2008
---------- ---------- ---------- ---------- ----------

EARNINGS
DATA
Net
Interest
Income
(tax-
equivalent)$ 16,472 $ 17,327 $ 18,135 $ 22,111 $ 24,513
Net Income
(Loss) (19,735) (48,464) (28,061) (81,622) (33,327)

COMMON SHARE
DATA
Net
Income
(Loss) (20,852) (49,603) (28,474) (81,622) (33,327)
Basic
Earnings
Per Share (1.01) (2.39) (1.37) (3.97) (1.62)
Diluted
Earnings
Per Share (1.01) (2.39) (1.37) (3.97) (1.62)
Dividends
Declared -- 0.01 0.01 0.01 0.01
Tangible
Book Value 5.35 6.40 8.21 9.39 9.22

PERFORMANCE
RATIOS
Return
on Assets (2.34) (5.53)% (3.25)% (9.57)% (3.93)%
Return on
Common
Equity (60.56) (111.70) (56.62) (119.82) (41.36)
Net Interest
Margin
(tax-
equivalent) 2.35 2.34 2.39 2.86 3.22
Tier 1
Risk-Based
Capital 8.21 8.52 10.01 7.68 9.05
Total Risk-
Based
Capital 10.44 10.42 11.73 9.75 11.03
Tangible
Common
Equity
to
Tangible
Assets 3.44 3.97 4.80 5.82 5.85
Efficiency
Ratio 96.76 102.45 107.66 75.55 68.49

AT PERIOD END
Assets $3,258,325 $3,346,262 $3,555,533 $3,357,100 $3,356,842
Interest-
Earning
Assets 2,681,461 2,837,522 3,005,489 3,087,332 3,026,227
Commercial
Loans 1,639,578 1,767,149 1,828,731 1,850,043 1,808,343
Consumer
Loans 398,212 406,800 409,255 432,183 431,106
Mortgage
Loans 167,871 175,523 188,013 208,017 221,361
Total
Loans 2,205,661 2,349,472 2,425,999 2,490,243 2,460,810
Deposits 2,472,762 2,474,355 2,580,043 2,340,192 2,385,794
Low Cost
Deposits
(1) 1,066,985 1,011,541 957,280 884,406 834,853
Interest-
Bearing
Liabilities 2,734,414 2,809,067 2,950,191 2,832,083 2,773,566
Sharehold-
ers' Equity 202,532 223,464 261,502 204,791 276,588
Unrealized
Gains
(Losses) on
Market
Securities
(FASB 115) (2,453) (2,057) (5,150) (8,509) (17,515)

AVERAGE
BALANCES
Assets $3,349,458 $3,513,409 $3,500,401 $3,393,237 $3,377,261
Interest-
Earning
Assets (2) 2,789,909 2,961,516 3,053,716 3,087,179 3,038,943
Commercial
Loans 1,745,831 1,813,743 1,840,457 1,836,979 1,776,275
Consumer
Loans 401,820 407,757 418,640 432,380 429,042
Mortgage
Loans 171,490 182,568 197,016 215,343 228,747
Total
Loans 2,319,141 2,404,068 2,456,113 2,484,702 2,434,064
Deposits 2,520,448 2,575,429 2,513,377 2,410,344 2,345,027
Low Cost
Deposits
(1) 1,059,055 1,001,952 912,326 858,521 850,095
Interest-
Bearing
Liabilities 2,804,857 2,921,548 2,936,850 2,806,089 2,746,792
Sharehold-
ers' Equity 221,894 259,923 233,951 270,998 320,522
Basic Common
Shares 20,707 20,715 20,732 20,569 20,567
Diluted
Common
Shares 20,707 20,715 20,732 20,569 20,567

(1) Defined as interest checking, demand deposit and savings
accounts.
(2) Includes securities available for sale and held for trading at
amortized cost.

INTEGRA BANK CORPORATION
SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA-con't
(In thousands, except ratios and yields)

Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2009 2009 2009 2008 2008
--------- --------- --------- --------- ---------

ASSET QUALITY

Non-Performing
Assets:
Non Accrual
Loans $185,558 $175,840 $186,770 $150,002 $ 79,672
Loans 90+ Days
Past Due 4,339 6,573 2,444 897 5,514
--------- --------- --------- --------- ---------
Non-Performing
Loans 189,897 182,413 189,214 150,899 85,186
Other Real
Estate Owned 26,435 29,286 19,848 19,396 7,252
--------- --------- --------- --------- ---------
Non-Performing
Assets $216,332 $211,699 $209,062 $170,295 $ 92,438
========= ========= ========= ========= =========

Allowance for
Loan Losses:
Beginning
Balance $ 82,309 $ 78,525 $ 64,437 $ 41,766 $ 31,780
Provision for
Loan Losses 18,913 32,536 31,394 38,169 17,978
Recoveries 538 442 330 377 464
Loans Charged
Off (20,548) (29,194) (17,636) (15,875) (8,456)
Transfer to
Loans Held
for Sale (1,848) -- -- -- --
--------- --------- --------- --------- ---------
Ending
Balance $ 79,364 $ 82,309 $ 78,525 $ 64,437 $ 41,766
========= ========= ========= ========= =========

Ratios:
Allowance for
Loan Losses
to Loans 3.60% 3.50% 3.24% 2.59% 1.70%
Allowance for
Loan Losses
to Average
Loans 3.42 3.42 3.20 2.59 1.72
Allowance to
Non-
performing
Loans 41.79 45.12 41.50 42.70 49.03
Non-performing
Loans to
Loans 8.61 7.76 7.80 6.06 3.46
Non-performing
Assets to
Loans and
Other Real
Estate Owned 9.69 8.90 8.55 6.79 3.75
Net Charge-Off
Ratio 3.42 4.80 2.86 2.48 1.31

NET INTEREST
MARGIN

Yields (tax-
equivalent)
Loans 4.18% 4.23% 4.26% 5.28% 5.70%
Securities 4.42 4.87 5.02 5.21 5.12
Regulatory
Stock 4.63 2.15 7.14 1.42 5.27
Other Earning
Assets 2.60 10.90 8.85 5.74 3.25
--------- --------- --------- --------- ---------
Total
Earning
Assets 4.22 4.38 4.47 5.28 5.63

Cost of Funds
Interest
Bearing
Deposits 1.84 2.07 2.23 2.53 2.49
Other Interest
Bearing
Liabilities 1.92 2.02 1.94 3.04 3.18
Total
Interest
Bearing
Liabilities 1.86 2.06 2.16 2.67 2.67
--------- --------- --------- --------- ---------
Total
Interest
Expense to
Earning
Assets 1.87 2.04 2.08 2.42 2.41
--------- --------- --------- --------- ---------
Net Interest
Margin 2.35% 2.34% 2.39% 2.86% 3.22%
========= ========= ========= ========= =========
-0-
CONTACT: Integra Bank Corporation
Mike Alley, Chairman and CEO
812-461-5795
Martin Zorn, EVP-Chief Operating Officer and
Chief Financial Officer
812-461-5794
Gretchen Dunn, Shareholder Relations
812-464-9677
http://www.integrabank.com