May 4, 2026

The phrase "steady as she goes” seems to describe our Bank quite nicely, as we continued to grow our loan portfolio during the first quarter of 2026.  This is demonstrated by comparing our loan balance on March 31, 2026 with our balance on March 31,2025.

                                      Net Loans before Allowance for Loan Loss
March 31, 2025March 31, 2026Percentage Increase
$43,542,923$47,607,6709.34%

Since quarter end, our net loans before allowance for loan loss have increased even more to $48,865,261 at April 30, 2026.

Meanwhile, we continue to focus on our funding costs. On average, approximately 50% of our total deposits consisted of noninterest-bearing deposits during the first quarter of 2026, which resulted in average cost of deposits of only 1.02%.

Taken together, the increase in our loan portfolio and our low cost of deposits directly contributed to material increases in our net interest income and overall net income before taxes, when comparing the first quarter of 2026 with the first quarter of 2025.
First Quarter 2025First Quarter 2026
Increase
Net Interest Income$640,861$835,258$194,397
Net Income before Taxes ($62,648)$49,876$112,524
                                                                                           
Our challenge now is to grow our loans, deposits, and income even more rapidly.

To do this, we are examining closely the traditional community bank approach to business development. We have carefully analyzed the costs and benefits to our Bank from the traditional community bank approach to growth through the recruitment of additional loan officers and deposit representatives. We remain open to recruiting just the right local bankers, those who would mesh well with our work ethic, our focus on credit, and our operational excellence.  However, our Board of Directors and I have concluded that we should also explore some other options for growth.

For example, we are beginning efforts to recruit successful sales representatives from businesses outside of banking. These sales representatives typically have much better sales skills and more aggressive calling practices than most community bankers.  We can teach these sales representatives the principles of community banking at Integrity. We believe that this approach to growing our Bank is likely to be more successful than simply relying on what community banks usually do to grow their banks.

This program is just getting underway. We hope to move forward quickly with the successful recruitment of these sales representatives.

We are very excited about this new approach to growth for our Bank.
 
Michael S. Ives
President and Chief Executive Officer

 
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 03/31/26

Income Statement for 3rd Quarter FY2026