Integra unit may not meet required capital levels

By Reuters
Posted Nov. 10, 2010 at 11:05 a.m.

Integra Bank Corp. said its banking unit may not be able to meet regulatory capital directives within the stipulated 90-day period and reported its tenth straight quarterly loss.

The Evansville, Indiana-based company, which has been selling assets and branches in a bid to improve its capital levels, said it continues to seek buyers for its Chicago-area branches.

In August, the Office of the Comptroller of the Currency had asked the company’s banking unit to achieve and maintain total risk-based capital ratio of at least 11.5 percent and a Tier-1 leverage capital ratio of at least 8 percent within 90 days.

As of Sept. 30, the lender’s total risk-based capital ratio was 9.34 percent and its Tier-1 leverage ratio stood at 4.31 percent.

The company’s loss for the third quarter was $17.3 million, or 84 cents a share, compared with 20.9 million, or $1.01 a share, in the year-ago period.

The quarter’s loss was largely driven by deterioration of valuations of commercial real estate, the company said.

Shares of the company have lost 29 percent of their value since the regulator’s capital directives. The stock closed at 60 cents on Tuesday on Nasdaq.

Read more about the topics in this post: ,

Comments are closed.