June 3, 2025
 
Sometimes it is difficult to see the forest for the trees. Today, I will try to help give you a better understanding of what we are doing at our Bank.

First, our Bank is growing in the areas on which we focus, specifically loans and noninterest-bearing deposits. Let's compare our approximate balances in these areas on April 30, 2025, to April 30, 2024.
Percentage
April 30, 2025April 30, 2024Increases
Loans$43,825,000.00$40,059,000.009.4%
Noninterest-bearing Deposits$31,277,000.00$26,939,000.0016.1%
Total Deposits$57,761,000.00$54,186,000.006.6%
 
As you may recall, as a business bank, our highest priority is to grow our noninterest-bearing operating accounts with our business clients. This annual growth rate of 16.1% for our noninterest-bearing deposit balances for April 30, 2025, over April 30, 2024, is quite impressive to say the least.

In addition, we are pleased with our loan growth of 9.4% from April 30, 2024, to April 30, 2025. Based on our loan pipeline today, we expect to close at least another $2.9 million of loans before June 30, 2025. 

Second, we promised our initial investors that we would keep a tight eye on our noninterest operating expenses. We are keeping that promise. Our noninterest operating expenses for the first calendar quarter of 2025 were approximately $715,000 compared to noninterest operating expenses of approximately $839,000 for the first calendar quarter of 2024. This is a decrease of approximately 14.8% in our noninterest operating expenses comparing the two quarters.

Third,  in April, we restructured our securities portfolio to replace a maturing $6 million Federal Home Loan Bank bond yielding 3% with several collateralized mortgage obligation ("CMO") mortgage-backed securities yielding approximately 5.29 % which should increase our annual interest income by approximately $137,400 at current mortgage prepayment speeds.
 
Fourth, attached are our balance sheet and income statement for the first calendar quarter of 2025. Our net income for this quarter was a loss of $53,000 compared to a loss of $93,000 for the first quarter of 2024. Please remember that for seasonal reasons, our deposit balances for many of our largest deposit clients are the lowest in the first quarter of each year. Also, the first quarter of each year has the fewest days of the four calendar quarters which means less days for net interest income compared to the other calendar quarters.

Finally, I previously reported to you that Doug Glenn would be joining the Bank in an executive capacity. After further discussions regarding the position, Doug will not be joining the Bank at this time. Doug and I concluded that his existing personal business obligations could preclude Doug from serving full-time with the Bank. We certainly wish Doug well in his personal business endeavors.

Mike

Michael S. Ives
President and Chief Executive Officer
 
 
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
 
The above letter from the CEO of Integrity Bank for Business (the “Bank”) may contain “forward looking statements” regarding future events and future results of the Bank. Forward-looking statements can be identified by words such as “anticipates,” “estimates,” “intends,” “plans,” “believes,” “projects,” “will,” “expects,” “may,” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance, but are based only on the Bank’s current beliefs, expectations, and assumptions regarding the future of its business, plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and outside of the Bank’s control. The Bank’s actual results and financial condition may differ materially from those indicated in forward-looking statements, and therefore you should not rely on forward-looking statements. Any forward-looking statement made by the Bank is based only on information available to the Bank as of the date on which it is made, and the Bank has no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise.

Balance Sheet 03/31/25 

Income Statement for Third Fiscal Quarter