Dear Shareholders and Friends:
“The numbers speak for themselves. Integrity Bank continues to be Pennsylvania’s most successful new banking franchise!!!”
At the end of the first ten full quarters of operation, Integrity Bank has the highest assets, deposits, loans, operating income and cumulative retained earnings of any new bank ever formed in Pennsylvania.
Integrity Bank’s assets reached $203 million on December 31, 2005, an outstanding 59% growth from December 31, 2004. During this year we opened new branches in York and New Cumberland and saw our total deposits soar 63%, an increase of $70 million to $181 million.
Loans also continued their rapid climb with total loans outstanding growing 67% during 2005, from $100 million to $167 million. To put this in perspective, since 1998 the average Pennsylvania De Novo Bank, after three full years of operations, has total loans outstanding of $67 million. Integrity Bank’s loans grew by that amount ($67 million) during the last 12 months only.
This dynamic growth has propelled Integrity Bank’s earnings to be in excess of $1 million ($1,144,000) for 2005. I am proud to report this level of income after absorbing the expenses for two new branches, paying $87,000 in federal income taxes, and increasing the bank’s total capital by allocating another $925,000 to loan loss reserve. The bank’s ability to attain profitability in April 2004 after only ten full months of operations, combined with the strong 2005 earnings of $1,144,000, resulted in the elimination of our accumulated deficit.
In November of 2005, Integrity Bank was the first bank to introduce Express Banker into the Central Pennsylvania business market. This product allows a customer to scan checks and transmit the images electronically to the bank for processing as late as 7:00 pm and receive next day availability, without ever leaving their office. Express Banker allows our customers to increase productivity, save on personnel expenses, process items for deposit more rapidly and receive information regarding returned deposit items much faster. The excellent acceptance of this product will allow us to build core deposits while improving efficiency and income for our customers.
This performance has not gone unnoticed. Integrity Bank’s most recent trades of stock have been at $16.75 per share, a 67.50% cumulative return for our original offering shares of $10.00 just 31 months ago. Also, in November, Integrity Bank and our revolutionary three-step drive thru was the featured article in the national publication, “American Banker”.
We anticipate 2006 being another banner year for Integrity Bank as we increase our footprint and brand in Central Pennsylvania. We plan to open two branches at premier locations in Dauphin County and believe this expansion will synergize the company as we grow our Central Pennsylvania market.
I again thank the directors, staff, shareholders and friends who have
been partners in this success story. Please keep supporting us with your
business and your referrals.
WHAT A RIDE!!!!
James T. Gibson