Exhibit 99.1
January 29, 2008
Dear Shareholder:
We are pleased to report the results of our fourth quarter ended December 31, 2007 and our second full year of operations. We have experienced solid growth during 2007 and are excited about a strong start to 2008.
At December 31, 2007, total assets were $110.5 million, increasing $2.4 million, or 2%, from September 30, 2007, and $34.8 million, or 46%, from December 31, 2006. Total gross loans outstanding were $98.9 million, increasing $4.5 million, or 5%, from September 30, 2007, and $35.9 million, or 57%, from December 31, 2006. The allowance for loan losses as a percentage of total gross loans outstanding was 1.30% at both December 31, 2007 and September 30, 2007. Total deposits as of December 31, 2007 were $82.1 million, decreasing $1.0 million, or 1%, from September 30, 2007, and increasing $25.2 million, or 44%, from December 31, 2006. At December 31, 2007, brokered deposits, included in total deposits, were $35.2 million compared to $34.9 million at September 30, 2007. Growth in brokered deposits was used to fund loan growth during the quarter.
For the quarter ended December 31, 2007, operations resulted in net income of $204,942. For the year ended December 31, 2007, net income was $322,193. We recognized $987,306 in net interest income for the quarter ended December 31, 2007, compared to $962,216 for the quarter ended September 30, 2007, an increase of $25,090, or 3%. Net income for the quarter and year ended December 31, 2007 includes a tax benefit of $154,800 and $216,500, respectively. This is a result of the reduction in a valuation allowance on deferred tax assets after an analysis of the evidence supporting the future usage of net operating loss carry-forwards through projected taxable income. We expect our tax rate to be normalized in 2008. We continue to focus on quality growth in loans and deposits, which we believe will drive growth in net interest income and profitability in future quarters.
Last quarter we announced the opening of our new full-service branch on Wade Hampton Boulevard in Taylors, SC, which is off to a great start. We are now in the process of building our third location in Simpsonville, SC at the intersection of Highways 14 and 417. We believe this third location will further enable us to serve our clients in a more efficient and convenient manner and will increase our recognition in upstate South Carolina.
Independence National Bank is a full service commercial bank, providing traditional loan and deposit services, as well as online banking, commercial cash management, remote deposit capture, and other essential services for our clients. We strive to maintain a personal focus and are dedicated to meeting the needs of our clients. We value your support as a shareholder. Please do not hesitate to contact us with any questions.
Best Regards,
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Lawrence R. Miller | Charles D. Walters | ||
President & CEO | Chairman of the Board |
Financial Highlights
(unaudited)
Balance Sheet |
| As of |
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Data |
| 12/31/2007 |
| 09/30/2007 |
| 12/31/2006 |
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Total assets |
| $ | 110,511,245 |
| $ | 108,159,443 |
| $ | 75,730,333 |
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Loans, gross |
| 98,891,370 |
| 94,351,555 |
| 62,953,196 |
| |||
Allowance for loan losses |
| 1,283,491 |
| 1,222,991 |
| 1,198,152 |
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Deposits |
| 82,133,117 |
| 83,179,745 |
| 56,906,716 |
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Shareholders’ equity |
| 18,989,433 |
| 18,706,893 |
| 18,473,469 |
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Income Statement |
| For the |
| For the |
| For the |
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Net interest income |
| $ | 3,670,148 |
| $ | 987,306 |
| $ | 962,216 |
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Provision for loan losses |
| 483,000 |
| 60,500 |
| 109,500 |
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Non-interest income |
| 62,491 |
| 25,333 |
| 10,367 |
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Non-interest expense |
| 3,143,946 |
| 901,997 |
| 843,650 |
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Net income, net of tax |
| 322,193 |
| 204,942 |
| 43,233 |
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Net income, per diluted share |
| 0.15 |
| 0.10 |
| 0.02 |
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Quarterly Net Interest Income ($ in thousands)
Quarter End Gross Loans Outstanding ($ in millions)
Quarter End Deposits Outstanding ($ in millions)
Quarter End Total Assets ($ in millions)
Certain statements in this document contain “forward-looking statements,” such as statements relating to future plans and expectations. Such forward-looking statements are subject to risks and uncertainties, such as a downturn in the economy, greater than expected non-interest expenses, regulatory changes and excessive loan losses, which could cause actual results to differ materially from future plans and expectations expressed or implied by such forward-looking statements. For a more detailed description of factors that could cause such differences, please see our filings with the SEC.
STOCK TRANSFER AGENT
Registrar & Transfer Company
Investor Relations Department
10 Commerce Drive
Cranford, NJ 07016-3572
(800) 368-5948
Registrar & Transfer Company makes it possible for you to update shareholder information online. If you have had a change in address or other shareholder information, visit www.rtco.com, click on investor relations, and make your changes now!
FINANCIAL INFORMATION
Shareholders, analysts, and others seeking financial information should contact:
Ms. Katie N. Tuttle
Chief Financial Officer
Independence Bancshares, Inc.
P. O. Box 1776
Greenville, SC 29602
500 E. Washington Street
Greenville, SC 29601
(864) 672-1776
24 Hour Account Access
(800) 657-7670
www.IndependenceNB.com