Safety and Soundness: Material Loss Review of Integra Bank, National Association. Audit Report.

摘要

This report presents the results of our material loss review of the failure of Integra Bank, National Association (Integra), of Evansville, Indiana, and of the Office of the Comptroller of the Currencys (OCC) supervision of the institution. OCC closed Integra and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver on July 29, 2011. Section 38(k) of the Federal Deposit Insurance Act mandated this review because of the magnitude of Integras estimated loss to the Deposit Insurance Fund. As of December 31, 2011, FDIC estimated that loss at $205.9 million. FDIC also estimated that the failure of Integra would result in a loss of $51 million to FDICs Debt Guarantee Program (DGP). In addition, the Department of Treasury (Treasury) expects that the $83.6 million that was provided to Integras holding company, Integra Bank Corporation, under Treasurys Troubled Asset Relief Program (TARP) will not be repaid. Our objectives were to determine the causes of Integras failure; assess OCCs supervision of Integra, including implementation of the prompt corrective action (PCA) provisions of section 38; and make recommendations for preventing such a loss in the future.