Integra Bank, Bank Of Kentucky Announce Purchase Agreement

September 4, 2009 (FinancialWire) — The Bank of Kentucky Financial Corp. (NASDAQ: BKYF), headquartered in Crestview Hills, Kentucky, and Integra Bank Corp. (NASDAQ: IBNK), headquartered in Evansville, Indiana announced that The Bank of Kentucky Financial Corp.’s wholly-owned bank subsidiary, The Bank of Kentucky, Inc., has agreed to purchase three banking offices of Integra Bank Corp.’s wholly-owned bank subsidiary, Integra Bank N.A., located in Crittenden, Dry Ridge and Warsaw, Kentucky.

In addition, The Bank of Kentucky has agreed as part of the branch purchase to acquire certain deposit liabilities and assets of Integra Bank’s banking offices located in Union and Florence, Kentucky. In a separate transaction, The Bank of Kentucky has agreed to purchase a portfolio of commercial loans originated by Integra Bank’s Covington, Kentucky, loan production office.

In the branch purchase transaction, The Bank of Kentucky will assume approximately $85 million (as of September 2, 2009) of deposit liabilities related to the five branches and buy certain branch-related assets, including at least $35 million (as of September 2, 2009) in selected loans. 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. Integra Bank’s customers at such banking offices will be served by existing, nearby branch offices of The Bank of Kentucky.

In the commercial loan purchase transaction, The Bank of Kentucky has agreed to purchase approximately $50 million in selected commercial loans originated by Integra Bank’s Covington, Kentucky loan production office prior to September 30, 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.

Upon closing of the branch purchase, The Bank of Kentucky will pay a 6.50% deposit premium for the deposit liabilities, while the loans will be acquired at book value, less applicable reserves. All other assets will be sold at their book values. The transactions are subject to customary conditions, including regulatory approval for the branch sale. The parties expect the branch purchase transaction to close during the fourth quarter of 2009 and the separate commercial loan purchase transaction to close by September 30, 2009.

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