Dear Shareholders and Friends:
What an amazing first nine months of 2006! In each of the first three quarters of 2006 Integrity Bank attained record assets, deposits, and loans, but more importantly continued to build the balance sheet of a high-performing bank.
During 3rd quarter 2006 we improved our branding and franchise value
by opening two additional high-profile branches and we received a “Superior
5-Star Status” evaluation by Bauer Financial, one of the nation’s premier
independent bank rating and research firms. In fact, we are the only bank
to receive this recognition in Cumberland, Dauphin or York county that
is under $10 billion in assets.
These are just a few of Integrity Bank’s performance highlights for 2006:
• Assets reached $238 million in just thirteen full quarters. Integrity now ranks in the top 50% of all banks in Pennsylvania in assets.
• Loans grew to $208 million, reporting a 37% increase over the same period in 2005, continuing to reflect the need and desire for More. Faster. Better lending. This growth has been attained while maintaining outstanding asset quality.
• Integrity Bank opened its fourth branch on May 24, 2006 at Senate Avenue. The Grand Openings for our fifth and sixth branches on Allentown Boulevard and Colonial Road were held on September 16, 2006. Prior to starting Integrity Bank my goal was for each branch to grow $6 million annually in deposits. The Senate Avenue branch, after five months, has attained $6 million in deposits and the Allentown Boulevard and Colonial Road branches have surpassed $10 million in only six weeks.
• The Camp Hill location after 39 months has $129 million in deposits; the third largest branch in Cumberland County. The Downtown York branch has $40 million in 20 months, and New Cumberland has $39 million in 16 months. As a comparison, the average mature branch in Central Pennsylvania has $37 million in deposits. With this level of efficiency we have a strategic advantage over our competitors. This performance confirms how our community has responded favorably to 7-day banking and extended hours, combined with competitive rates.
• The bank has increased net income from operations for the first nine months of 2006 by 86%, from $849,000 in 2005 to $1,575,000 for 2006. However, since the bank’s income became fully taxable at the end of 2005, we have paid an additional $541,000 in income tax in 2006. For the 3rd quarter 2006 we reported income after taxes of $335,000 compared to $291,000 before tax in 2005. For the first nine months of 2006 our net income is $1,034,000 after absorbing the expansion of the three new branch offices and related expenses. I am very proud of this performance.
For the remainder of 2006 we will continue our focus on growing and leveraging the company to maximize earnings and shareholder value. We are committed to growing Integrity’s balance sheet in a profitable manner, and will not jeopardize shareholder value simply for the sake of growth.
I can not express my thanks enough to the dedicated staff of Integrity
Bank, to the bank directors who devote many hours each month, and to the
many supporters who have helped make Integrity the “Highest Performing
New Bank Ever” in Pennsylvania.
WHAT A RIDE!!!!
James T. Gibson