Dear Shareholders and Friends:
Wow!! Integrity Bank just celebrated our five year anniversary. From the start, Integrity Bank performed at levels never seen before by de novo banks in Pennsylvania and we continue to set new records. This level of performance provided our initial shareholders an average annual return of 32.5%, as share price increased from $10 to $25 per share. We truly have transitioned from a dream to an awesome reality.
For the second quarter 2008, we reported income of $547,000, an 82% increase over second quarter 2007, our highest quarter ever. Our assets grew 21% to $359 million, while loans increased 22% to $313 million over the same time period. The Board of Directors, staff, and I are very proud of this level of performance in today's economic environment.
Although many institutions got caught up in the higher returns of the sub prime markets, we chose to originate quality assets over short-term, high-risk sub prime mortgages. Integrity Bank has no sub prime loans in either the loan or investment portfolio. In hindsight, we made the right decisions with our business plan. As some of our competitors must now focus on their balance sheet and income issues, Integrity Bank is focused on gaining market share.
The banking environment is tough today. However, we are committed to continue executing our sound financial strategy that will bring outstanding performance to our shareholders.
This has been a great five years of my life. I sincerely thank you and through you I feel very blessed. The support of the Board of Directors, our committed employees who work so hard to always make us better, shareholders who believed in and continue to support our growth together, as well as so many friends, have made this a wonderful and rewarding journey.
Now it's time to focus on execution in order to give you another positive
letter in October 2008. What else can I say about the last five years
WHAT A RIDE!!!!
James T. Gibson