-- Harold Klem Joins Company as Executive Vice President and COO -- Todd Foster Appointed Executive Vice President of Risk Management -- Cameron Fausti Joins Company as Vice President of Risk Management
ALPHARETTA, Ga., Aug. 7, 2006 (PRIMEZONE) -- Integrity Bancshares, Inc. (Pink Sheets:ITYC) today announced it has expanded and strengthened its management team. Harold "Kelly" Klem has joined the Company as Executive Vice President and Chief Operating Officer. Additionally, Todd Foster has been promoted to Executive Vice President of Risk Management and Cameron Fausti has accepted the position of Vice President of Risk Management.
Klem brings over 25 years of community banking experience to Integrity Bancshares. Previously, he served as Chief Operating Officer of Stockman Bank of Montana, a $1.3 billion asset institution. Over the course of his career, Klem has held positions of increasing responsibility including stints as internal auditor, lending officer, compliance officer and CFO. He holds Bachelor of Arts degrees in both Accounting and Finance from Carroll College in Helena, Montana. He also holds the CPA Designation.
"I welcome the opportunity to join the Integrity Bank family. Integrity has a dynamically growing organization with a Golden Rule culture that sets it apart from other banks in the country," commented Klem.
"We have grown very rapidly from a bank with $24 million in assets in 2000 to more than $958 million today," said Steven M. Skow, President and CEO. "We have a strategy in place to maintain our rapid growth, but if we are to manage that pace effectively, we need to continue to have a strong management team with the skills and experience to maintain and improve the efficiency of our operations. Kelly Klem brings a wealth of knowledge and expertise in helping community banks grow. His experience will be of great value to Integrity Bancshares."
With a loan portfolio growth of 56% year over year to $815 million on June 30, 2006, the Bank has continued to strengthen its infrastructure in the risk management area. Todd Foster first joined Integrity in 2003. Before that, he served as a Bank Examiner for The Federal Deposit Insurance Corporation for 13 years. He has extensive knowledge and experience in risk assessment and management. Foster has been an important member of the team that generated the rapid growth Integrity has achieved. As Executive Vice President, Foster will have overall responsibility for Integrity's risk management function.
Cameron Fausti recently joined Integrity as Vice President of Risk Management. Fausti also has a prior 15-year career with the Federal Deposit Insurance Corporation where he was a Bank Examiner.
"We are rapidly approaching the $1 billion assets milestone," noted Skow. "We have come to this point in only five and a half years while at all times remaining true to our faith-based culture. However, we have also grown by paying close attention to our balance sheet and the level of risk we undertake while doing business. It is our aim that a concentration on the acceptable levels of risk attributed to our balance sheet will allow us to maintain the high asset quality we have achieved. The promotion of Todd and the addition of Cameron should give us the managerial strength we need to continue effectively managing risk in a larger organization."
Integrity Bancshares, Inc. recently announced record second quarter 2006 earnings of $2.8 million, or $.18 per diluted share, an 88% increase over results for the same period last year of $1.5 million, or $.10 per diluted share. Year to date net earnings were $4.9 million, or $.32 per diluted share, an increase of 76% over 2005 year to date net earnings of $2.8 million, or $.20 per diluted share. (Per share amounts for periods in 2005 have been adjusted for the December 2005 two-for-one stock split). Integrity's year to date earnings resulted in a return on average shareholders' equity of 14.30% compared to 11.71% for the same period last year. Total assets as of June 30, 2006 were $958 million, up 60% over the $599 million at June 30, 2005. Asset growth was primarily due to growth in the loan portfolio, which increased 56% year over year to $815 million at June 30, 2006.
Integrity Bancshares, Inc. is the holding company for Integrity Bank, headquartered in Alpharetta, Georgia. The bank began operations in November 2000 and currently serves Metropolitan Atlanta with four offices. Its main office is located at 11140 State Bridge Road. The Company also operates full-service branches in Roswell, Smyrna, and Duluth, Georgia, and a loan production office in Cumming, Georgia. Integrity Bancshares common stock is currently traded in the Pink Sheets in the Over the Counter market under the symbol 'ITYC.' Recently, the Company filed an application to be listed on the Nasdaq Global Market.
For additional information on Integrity Bancshares, Inc, including a list of our market makers, please access the Company's Investor Relations section of our website at www.myintegritybank.com.
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to present or future trends or factors generally affecting the banking industry and specifically affecting our operations, markets, and products. Without limiting the foregoing, the words "believes," "expects," "anticipates," "estimates," "projects," "intends," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those projected for many reasons, including without limitation, changing events and trends that have influenced our assumptions. These trends and events include (i) changes in the interest rate environment which may reduce margins, (ii) non-achievement of expected growth, (iii) less favorable than anticipated changes in the national and local business environment and securities markets, (iv) adverse changes in the regulatory requirements affecting Integrity, (v) greater competitive pressures among financial institutions in our market, (vi) changes in fiscal, monetary, regulatory, and tax policies, (vii) changes in political, legislative, and economic conditions, (viii) inflation, and (ix) greater loan losses than historic levels and (x) failure to achieve the revenue increases expected to result from our recent investments in its transaction deposit and lending businesses. Investors are encouraged to read the related section in Integrity Bancshares, Inc.'s 2005 Annual Report to Shareholders and the 2005 Annual Report on Form 10-K, including the "Risk Factors" set forth therein. Additional information and other factors that could affect future financial results are included in Integrity's filings with the Securities and Exchange Commission.