Integra Bank is one of three victims of the FDIC and the Office of the Comptroller of the Currency this week.
Integra Bank Headquarters

The Integra Bank headquarters was bustling at dusk this evening as executives, regulators and rank-and-file employees prepared for a long working weekend

Integra was based a short distance from my home, and I held a relatively small amount of stock in the now-failed bank. I don't imagine a whole lot of people care about the fate of their bank, so long as the full faith and credit of the United States Government backs up their deposits. (Which appears to be about 3 more days)

The national news reports about the bank focus on it being the third-largest failure of the year, with assets of $2.2 billion and $1.9 billion in liabilities; the first collapse in Indiana since 2009 and only the second in the whole banking crisis. The national reports indicate how Old National and the FDIC are sharing the losses. But they're lacking the backstory.

When the banking crisis first hit U.S shores, we knew that Integra was in trouble. The bank was losing money before the front fell off the industry. Then Integra took millions of dollars in TARP. $83.5 million, in fact. I saw this number in 2008 and thought that no bank their size could possibly lose that much money, and felt that the company's stock was a relatively safe investment, especially at its price of around $1/share at the time. As time rolled on and Integra began selling banking branches and laying off employees, the investment seemed less and less safe. For about nine months, it has been apparent that a receiver would be appointed after a dismal fiscal 2010 where the company lost more then $9 per share.

From here on out, the future of Integra's 52 remaining bank branches are somewhat unclear. Old National Bank will take over the branches and rename them. It seems certain that some branches will be closed because the two banks most of their geographic footprint. It is too early in the game for Old National to know how they will pick which branches to close and which to save. For example, the combined company will have 23 branches and 71 ATMs with an Evansville address. In some areas, Old National and Integra are a few hundred yards separated; a clear redundancy. I also would expect some branches to be closed in smaller towns like Rockport and Mt. Vernon where both banks had a branch. I suspect Old National will probably keep nearly all of the Illinois and Kentucky branches open, because, although both banks already operate in the state, both have a very limited presence.

By the way, the photo in this entry was taken from the Old National Bank parking garage. You can see another building owned by Old National Bank at the left, in white. One thing that will clearly not get in the way is geography.