Integrity Financial Corporation Announces 2004 Earnings

Integrity Financial Corporation Announces 2004 Earnings 


HICKORY, N.C., March 11  /PRNewswire-FirstCall/ -- Integrity Financial
Corporation (NASDAQ:IFCB) today reported operating results for the year ended
December 31, 2004.  Integrity reported net income of $1.3 million, representing
diluted earnings per share of $0.27.

Commenting on Integrity's results, W. Alex Hall, interim President and Chief
Executive Officer of Integrity Financial Corporation, said, "2004 was an
eventful year.  We experienced adverse credit developments in the loan
portfolio of our subsidiary bank, Catawba Valley Bank. As a result of these
loan events, there was a change of executive management. The Board of Directors
and management of Integrity further addressed these issues by increasing the
allowance for possible loan loss in the third and fourth quarters to help
ensure that Integrity remains well-positioned to provide for any potential
credit losses going forward.  A regulatory examination of the banks was
concluded in the fourth quarter of 2004."

Integrity's net income for the year ended December 31, 2004 of $1.3 million
represents a decline of $3.4 million, or 73%, when compared to net income of
$4.7 million for the year ended December 31, 2003.  Net income declined
primarily due to a substantial increase in the provision for loan losses of
$5.3 million, or 482%, from $1.1 million in 2003 to $6.5 million in 2004.  Net
interest income was $20.6 million for 2004, representing an increase of $3.0
million, or 16.9%, when compared to 2003.

Integrity reported total assets of $664.7 million at December 31, 2004,
representing an increase of $34.9 million, or 5.5%, when compared to the $629.7
million reported at December 31, 2003.  This increase resulted primarily from
an increase of $33.0 million, or 7.2%, in net loans from $457.3 million to
$490.3 million.  The allowance for loan losses increased $4.2 million, or
68.8%, to $10.4 million.  Total deposits at the end of the year were $538.2
million, representing an increase of $40.3 million, or 8.1%. During 2004, each
category of core deposits, including demand, money market and NOW accounts,
savings and other time deposits, improved when compared to the results reported
at December 31, 2003.  Total stockholders' equity was $62.5 million,
representing a decline of $0.3 million, or 0.5%, as Integrity repurchased
additional shares of its common stock and rising interest rates and
correspondingly lower prevailing market value for investment securities
available for sale resulted in a decline of Integrity's accumulated other
comprehensive income. 

DATASOURCE: Integrity Financial Corporation



CONTACT: W. Alex Hall, Interim President and Chief Executive Officer of

Integrity Financial Corporation, [phone]

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