EVANSVILLE — Evansville-based Integra Bank’s capital ratios slipped again in the first quarter, which the bank said is expected to move it into the “critically undercapitalized” category and closer to possible receivership.
The bank also lost $47.3 million ($2.29 per share) in the first quarter, according to the earnings report filed Monday morning.
As a nationally chartered bank, Integra is regulated by the Office of the Comptroller of the Currency. Last August, the OCC issued a capital directive ordering Integra to increase its total risk-weighted capital ratio to at least 11.5 percent and its Tier 1 leverage ratio to at least 8 percent. The deadline for doing so was Nov. 20, and Integra did not meet that deadline. The bank later submitted a plan to the OCC, but last month the bank learned regulators rejected that plan.
As of Dec. 31, Integra’s capital ratios were 7.32 percent and 3.34 percent, respectively. In its first-quarter report Integra said those levels had dropped to 4.38 percent and 1.76 percent.
Because of this drop, Integra said it expects that the OCC will move it into the “critically undercapitalized” category, which is the lowest of the OCC’s five rankings.
According to Federal Deposit Insurance Corp. requirements, once a bank moves into the “critically undercapitalized” category, the bank’s primary federal regulators are required to act within 90 days “by either appointing a receiver for the institution or taking such other action that the regulator determines would better achieve the purposes” of the FDIC requirement, Integra said in its release.
As of March 31, the amount needed to satisfy the OCC’s capital directive was $144.3 million. Integra said it has worked on recapitalization plans since the third quarter of 2009 but to date this goal has not been achieved.
Also on Monday, Integra announced that Judge Wayne Trockman had resigned from the company’s board of directors effective April 28. Trockman was appointed to the board last year.