Attached files
file | filename |
---|---|
8-K - FORM 8-K - United Community Bancorp | v172836_8k.htm |
EX-2.1 - BRANCH PURCHASE AGREEMENT - United Community Bancorp | v172836_ex2-1.htm |
EX-99.2 - PRESS RELEASE DATED JANUARY 29, 2010 - United Community Bancorp | v172836_ex99-2.htm |
EX-99.3 - PRESS RELEASE DATED JANUARY 28, 2010 - United Community Bancorp | v172836_ex99-3.htm |
News Release
United
Community Bank and Integra Bank Announce Agreement for Purchase of Branches and
Loans from Integra
LAWRENCEBURG,
INDIANA and EVANSVILLE, INDIANA – February 1, 2010 – United
Community Bancorp (NASDAQ Global Market: UCBA) and Integra Bank
Corporation (NASDAQ Global Market: IBNK) announced today that United Community
Bank (“United”), the wholly-owned subsidiary of United Community Bancorp,
has agreed to purchase three banking offices of Integra Bank Corporation’s
wholly-owned bank subsidiary, Integra Bank N.A. (“Integra”). The
offices are located in Milan, Osgood and Versailles, Indiana. In addition,
United has agreed to acquire a group of commercial and residential mortgage
loans from Integra.
United
will assume approximately $54.4 million of deposit liabilities related to the
three branches, as well as $38.6 million of branch loans and $12.3 million of
additional commercial and residential mortgage loans selected by United that
were originated in other Integra offices.
United
will pay a 4.50% deposit premium for the deposit liabilities it assumes, with
the exception of municipal deposits that are issued after the date of the
agreement which will be acquired at par, while the loans will be
acquired at their outstanding principal balance. United will not
assume any brokered deposits or Keogh accounts in the transaction. The
three banking office premises will be sold at their fair market value and all
other fixed assets will be sold at their book values. Both Integra
and United expect that the transaction will have a minimal impact on the
liquidity of either company, as it has been designed to be liquidity neutral,
meaning that minimal cash is expected to exchange hands. The
transactions are subject to customary conditions, including regulatory approval.
The parties expect the branch purchase transaction to close in the first half of
2010.
William
F. Ritzmann, President and Chief Executive Officer of United, stated, "We are
excited about this opportunity to expand our banking operations into neighboring
Ripley County. Customers of the branches should know that we are
working diligently with Integra so that the transition will be seamless to
them. We are also very pleased that, following initial transaction
expenses, this transaction is expected to be immediately accretive to earnings
per share for United Community Bancorp’s shareholders once the transaction
closes.”
Following
completion of this transaction, United will have nine Indiana branches - four in
Lawrenceburg; one in Aurora; one in St. Leon; one in Osgood; one in Milan; and
one in Versailles. Upon the completion of the transaction, United is
expected to have approximately $450 million in assets and $390 million in
deposits.
Michael
J. Alley, Chairman and Chief Executive Officer of Integra commented, “We are
pleased to work with the team at United Community Bank to complete this
transaction. Our Integra associates in Milan, Osgood and Versailles
have done a great job serving their customers and I am confident that this will
continue.”
Alley
also stated, “This divestiture enhances our capital and is part of a
multi-step strategy we are executing that will improve our capital and liquidity
positions, reduce our credit risk and accelerate our return to
profitability. We expect to execute additional branch sales in 2010,
as well as sales of both non-performing and performing loans. Based
upon letters of intent we have received from other institutions who have
performed or are currently performing due diligence, we expect to announce
additional agreements for sales in the next 90 days that will provide additional
capital and narrow our operating footprint.”
Kilpatrick
Stockton LLP served as legal counsel to United and Ice Miller LLP served as
legal counsel to Integra. RP Financial, LC. acted as financial
advisor to United and Keefe Bruyette & Woods, Inc. acted as financial
advisor to Integra.
Forward-Looking
Statements
This
press release contains statements about the proposed sale of Integra Bank branch
offices and other assets to United Community Bank and the impact on both Integra
Bank and United Community Bank. These statements are not historical facts and
are considered forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are preceded by terms
such as "expects," "believes," "anticipates," "intends" and similar
expressions. Forward-looking statements are not guarantees of future
performance. These
statements are based upon current expectations, forecasts and assumptions that
are subject to risks, uncertainties and other factors that could cause actual
outcomes and results to differ materially from those indicated by these
forward-looking statements. These risks, uncertainties and other factors
include, but are not limited to, the satisfaction of customary closing
conditions set forth in the various agreements between the parties, including
the receipt of regulatory approval for the branch sale, general economic
conditions, including changes in market interest rates and changes in monetary
and fiscal policies of the federal government; legislative and regulatory
changes; and other factors disclosed periodically in United Community Bancorp’s
and Integra Bank Corporation’s respective filings with the Securities and
Exchange Commission.
About
United Community Bancorp
United
Community Bancorp is the holding company of United Community Bank, headquartered
in Lawrenceburg, Indiana. United Community Bank currently operates
six offices and nine ATMs in Dearborn County, Indiana, and has total assets of
approximately $398.4 million. For more information about United
Community Bank, please visit us online at www.bankucb.com.
About
Integra Bank Corporation
Headquartered
in Evansville, Indiana, Integra Bank Corporation is the parent of Integra Bank
N.A. As of September 30, 2009, Integra had $3.3 billion in total
assets. Integra operates 69 banking centers and 116 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 Integra’s web site,
www.integrabank.com.
Contacts:
(Integra
Bank):
Mike
Alley, Chairman and CEO – (812) 461-5795
Mike
Carroll, Chief Financial Officer – (812) 464-9673
Gretchen
Dunn, Shareholder Relations – (812) 464-9677
(United
Community Bank):
William
P. Ritzmann, President and CEO – (812) 537-4822