Dear Shareholders and Friends:
WOW!! Third quarter numbers and accomplishments have been released and they scream “unparalleled success!” This outstanding performance on so many different levels continues to grow the value of our company.
Here are a few of our recent highlights:
• Earnings were up 44% to $481,000 for the third quarter 2007 and up 15% to $1,185,000 for the year. This is remarkable considering the cost of operating three new branches for all of 2007.
• Loans grew $70 million to $278 million from the prior year, a 34% increase. In addition, we closed an additional $61 million in loans which were sold to participant banks. Our loan growth continues to accelerate in spite of the housing market slow down.
• The Colonial Road and Allentown Boulevard Branch sites reached $19 million and $22 million in deposits in their first year of operations, and were profitable in 10 and 11 months, respectively. This is over three times the average growth rate of new branches.
• In our first year of eligibility, Integrity Bank was recognized by the Central Penn Business Journal as the 13th fastest growing company and the fastest growing financial institution in Central Pennsylvania.
• On October 9, 2007 we surpassed $300 million in assets. This is on pace to reach the one billion mark that is in our long-term plan.
• Integrity Bank’s 2007 Annual Report was entered into an international competition for annual reports in the “nontraditional report” category. We competed against nearly 2,000 companies including Wal-Mart, General Motors, PepsiCo and many others. Integrity Bank was proud to be selected as one of three companies to receive the gold award, however the company that was selected over us was a little company called IBM. We owe many thanks to our marketing firm Spencer Media who continues to provide us outstanding creativity.
• Integrity Bank continues to have excellent asset quality, and we can proudly state that we have no sub-prime loans in our loan or investment portfolios.
We feel that this performance in a difficult economic environment is outstanding. As we look to the future we are excited about how the proficiency of our model positions us exceptionally well when compared to our competitors that have aging facilities or are burdened with many expensive locations and the associated high operating costs.
Recent trades of our stock have been at $22.00 per share. For those who invested at $10.00 per share in 2003, this equates to a return of over 21% annually.
Thanks to the many that have supported Integrity Bank in the past. Please continue to support us with your business and referrals.
WHAT A RIDE!!!!
James T. Gibson