Integra Bank Corporation, the parent company of Integra Bank, has closed its investment transaction with the US Department of the Treasury under the capital purchase program.
Integra issued to the Treasury Department 83,586 shares of a new series of preferred stock and a warrant to purchase 7.42 million shares of common stock at an initial exercise price of $1.69 per share, subject to adjustment in certain circumstances. The total amount invested by the Treasury Department in Integra was $83.59 million.
Under the capital purchase program (CPP), the Treasury Department is investing up to $250 billion in securities of healthy US financial institutions as part of its efforts to provide a firmer capital foundation for banks and to increase credit availability to businesses and consumers.
Mike Vea, chairman, president and CEO of Integra Bank, said: We view this investment as a positive development for Integra and our shareholders. The additional capital improves our liquidity and will allow us to continue to meet the credit needs of businesses and consumers in our markets.
The capital purchase program (CPP), created by the U.S. Treasury, is a voluntary program in which selected, healthy financial institutions are encouraged to participate. Approved use of the funds includes providing credit to qualified borrowers, either as companies or individuals, among other things. Such participation is intended to support the economic development of the community and thereby restore the health of the local and national economy.
