What a year!
The Board and I are proud to report that the success and momentum with which we launched Integrity Bank propelled us through a phenomenal year in 2004. These are just a few of the many milestones we celebrated during our first full year:
The accelerated execution of our business plan thrust the bank into profitability in April 2004, just 10 months after opening and well ahead of the planned 36 month time period. Net income for the year was $152,000 after making a provision of $700,000 for loan loss reserves.
The acceptance of our banking model expedited asset growth from $46.7 million at the end of 2003 to $127 million in 2004, an increase of over 170%. Our deposits at the end of six full quarters topped the record for any de novo bank in the history of Pennsylvania!
During 2004, loans outstanding grew 215% from $31.8 million to $100.1 million. Total loans closed by the bank exceeded $184 million in 2004, many of which were participated with other banks or are yet to be funded.
Integrity Bancorp Mortgage Company, which began operations in early 2004, reported profitability in their first year of operation. Additionally, the mortgage company closed $35 million in loans which were sold in the secondary market.
By the end of September 2004 the excitement in the community about Integrity’s success was demonstrated by the 100% exercise of 800,000 warrants (without a broker) resulting in an additional $9.6 million in capital for the bank. In December 2004, initial offering shares traded at $14.25, providing a return of over 42% in less than 19 months.
In 2004, Integrity Bank was the cover feature of the industry prominent Danielson Report. The Bank has also received other positive press in the Patriot News, Central Penn Business Journal, Harrisburg Magazine and the York Dispatch.
Our record-breaking performance, strong capital position, profitability and earnings projections permitted Integrity to secure approval for aggressive branch expansion. The opening of our Downtown York branch in 2005 will be followed by the second quarter opening of a branch in New Cumberland. Our aggressive expansion plans include the addition of branch locations in and through out Central Pennsylvania in 2006 and thereafter.
The Board and I are thrilled with the velocity of Integrity Bank’s performance.
I want to express my appreciation to the Board of Directors, bank staff, shareholders and numerous supporters. As we face 2005 and the future we are positioned to further increase the bank’s momentum.
What a phenomenal year…but just a start!
James T. Gibson