Dear Shareholders and Friends:
The first quarter of 2008 was another period of growth and increased profits for Integrity Bank. So if you want bad news … stop reading this letter and go listen to the media or some politician.
In spite of a difficult economic environment, Integrity again showed the supremacy of our banking model. Total assets increased 14% to $320 million, while loans grew 21% to $293 million. Most importantly, net income was up 13% to $457,000. We are proud to have this level of performance.
During the first quarter, the Federal Reserve Board cut the Federal Funds rate by 175 basis points to support the sub prime market and some of the investment houses. This greatly reduced our interest income. Our experienced management team responded to this challenge and successfully mitigated the effect of these rate reductions by increasing revenue in other areas and decreasing costs. I am pleased to report that Integrity Bank ended the first quarter ahead of budget.
The view that Central Pennsylvania is the last in and first out of an economic downturn may be true. We have already seen an increasing trend in the number of homes sold in the last six weeks which has not yet happened in some areas of the country. Since Integrity Bank was never involved in sub prime lending, we can focus our efforts on the profitable growth potential in our market instead of the costly damage control many banks are facing.
Our branches are extremely busy with new customers opening accounts and settling loans. The people and business owners in our community consistently choose More…Faster…Better banking. Thanks to many of you who have accounts with Integrity; and for everyone else, you deserve a better bank.
We are excited about our first quarter performance and thrilled with
what we see for the rest of 2008 and beyond.
WHAT A RIDE!!!!
James T. Gibson