InsCorp’s 3rd Quarter Earnings Driven by Loan & Margin Growth

NASHVILLE, Tenn., Nov. 1, 2021 /PRNewswire/ — InsCorp, Inc. (OTCQX: IBTN) in Nashville, and parent company of INSBANK, today reported…

NASHVILLE, Tenn., Nov. 1, 2021 /PRNewswire/ — InsCorp, Inc. (OTCQX: IBTN) in Nashville, and parent company of INSBANK, today reported third quarter earnings of $1,626,000, or $0.55 per share compared to $343,000 and $0.11 per share for the same period in 2020. Year-to-date earnings were $4,286,000, or $1.46 per share, which was a 164% increase over the prior year of $1,624,000 for the nine months ended September 30, 2020. This was the company’s most profitable 3rd quarter interim performance in its history. INSBANK’s cost of interest-bearing deposits decreased 17 basis points during the quarter, continuing a trend for the Nashville-based lender as term deposits have repriced during the year. This, along with recognition of Paycheck Protection Program-related fees, contributed to a 21 basis point increase in net interest margin during the quarter.

Core loans, excluding PPP advances, increased $35.6 million during the quarter, driven by growth of the bank’s niche medical division, Medquity, as well as commercial real estate loans. Loans, excluding PPP advances, were up more than 17% over the last 12 months, while total loans have grown 10% during the same period. «Our team remains focused on executing our strategy of balanced organic growth, both locally and within our nationwide physician-focused silos,» said Jim Rieniets, President and CEO of INSBANK.

The company continues to derive benefit from its investments in technology, as evidenced by its operating efficiency and personnel leverage. The bank’s measures of: efficiency ratio, operating expenses as a percentage of assets, and assets per employee all continue to compare favorably to its industry peer group and place it in the top quartile of those performance metrics. «Acceleration of digital trends by the pandemic has many community banks scrambling to find their place in the future of our industry,» continued Rieniets. «A focus on fintech is not a bandwagon phenomenon at INSBANK; it’s been a part of our DNA since the bank was founded over 20 years ago.» 

The board of directors also recently approved the payment of a semi-annual dividend. InsCorp shareholders of record November 19, 2021, will receive a $0.12 dividend payable on December 10, 2021.  «While most of our earnings are needed to support the bank’s growth, we’re pleased to enhance our shareholders’ value with a dividend yield,» added Michael Qualls, Chairman of InsCorp. 

Highlights of the quarter and year-over-year include:

  • Total assets grew $94 million year over year or 16% as of September 30, 2021.
  • Non-interest bearing deposits grew $17.5 million or 27.8% during the 12 months ended September 30, 2021.
  • Deferred loan fees related to the PPP loans is approximately $479,000 at September 30, 2021.
  • Efficiency ratio was 50.9% at September 30, 2021, comparing favorably to the bank’s FDIC peer group average of 60.5%.
  • Non-Interest Expense to Total Average Assets was 1.66% for the nine months ended September 30, 2021, slightly lower than 1.74% for the same period in 2020 and compared favorably to the bank’s FDIC peer group average of 2.41%.
  • Cost of all interest-bearing funding was 0.75% for the three months ended September 30, 2021 decreasing from 1.47% for the same period in 2020.
  • Assets per employee remained strong at $13.8 million, compared to the FDIC peer group of $6.7 million.
  • The bank’s tier 1 capital ratio was 11.6%, while total risk-based capital was 12.9%.
  • The allowance for loan and lease losses was 1.42% exclusive of PPP loan balances.
  • Annualized return on tangible common equity for the year was 10.95% for the nine months ended September 30, 2021
  • Tangible book value increased $0.55 to $18.59 during the quarter primarily by virtue of retained earnings.
  • The percentage of loans past due and non-accrual to gross loans was 0.52% comparing favorably to peer of 0.86%.
  • Net charge-offs for the quarter ended September 30, 2021, were $25,000.

About INSBANK 

Since 2000, INSBANK has offered its clients highly personalized service provided by experienced relationship managers, while positioning itself as an innovator, utilizing technologies to deliver those services efficiently and conveniently.  In addition to its commercial focused operation, INSBANK operates three divisions, Medquity, TMA Medical Banking and INSBANK Online.  Medquity offers healthcare banking solutions to individuals nationwide, whether they are still in residency, practicing or entering retirement, while TMA Medical Banking provides banking services specifically to members of the Tennessee Medical Association. INSBANK Online offers nationally available virtual private client services for interest bearing deposits.  INSBANK is owned by InsCorp, Inc., a Tennessee bank holding company. The bank is headquartered in Nashville at 2106 Crestmoor Road, and has an office in Brentwood at 5614 Franklin Pike Circle. For more information, please visit www.insbank.com

InsCorp, Inc.

Consolidated Balance Sheets

(000’s)

(unaudited)










September 30,


December 31,


September 30,



2021


2020


2020

Assets






Cash and Cash Equivalents

$                            16,400


$                                8,219


$                              8,476

Interest Bearing Deposits

58,738


33,356


25,415

Securities

17,513


17,039


19,304








Loans

549,510


525,235


500,133

  Allowance for Loan Losses

(7,575)


(7,365)


(7,015)

Net Loans

541,935


517,870


493,118








Premises and Equipment, net

13,417


13,630


13,757

Bank Owned Life Insurance

13,318


10,115


10,052

Restricted Equity Securities

9,453


7,612


6,826

Goodwill and Related Intangibles, net

1,091


1,091


1,091

Other Assets

7,865


8,298


7,706








  Total Assets

$                          679,730


$                           617,230


$                          585,745








Liabilities and Shareholders’ Equity






Liabilities






  Deposits







Non-interest-bearing

$                            80,504


$                             52,665


$                            62,994


Interest-bearing

478,533


417,731


384,684


Total Deposits

559,037


470,396


447,678








  Federal Home Loan Bank Advances

39,000


50,000


49,000

  Paycheck Protection Program Liquidity Fund

4,932


18,412


18,412

  Subordinated Debentures

15,000


15,000


15,000

  Federal Funds Purchased

2,000


7,000


  Other Liabilities

3,980


5,328


4,846

Total Liabilities

623,949


566,136


534,936








Shareholders’ Equity







Common Stock

31,662


31,190


31,190


Treasury Stock

(663)


(681)


(278)


Accumulated Retained Earnings

24,293


20,377


19,568


Accumulated Other Comprehensive Income

489


208


329


Total Stockholders’ Equity

55,781


51,094


50,809

Total Liabilities & Shareholders’ Equity

$                          679,730


$                           617,230


$                          585,745








Tangible Book Value

$                              18.59


$                                17.24


$                              16.98

 

InsCorp, Inc.

Consolidated Statements of Income

(000’s)

(Unaudited)










Nine Months Ended


Twelve Months Ended


Nine Months Ended



September 30, 2021


December 31, 2020


September 30, 2020








Interest Income

$                            18,380


$                             22,694


$                            17,082

Interest Expense

3,752


7,221


5,638

Net Interest Income

14,628


15,473


11,444

Provision for Loan Losses

1,400


2,400


1,850

Non-Interest Income







Service Charges on Deposit Accounts

180


212


154


Bank Owned Life Insurance

202


251


187


Gain on Int Rate Hedges and Sec sales

206




Other

892


705


534

Non-Interest Expense







Salaries and Benefits

5,098


6,200


4,598


Occupancy and equipment

984


1,233


896


Data Processing

446


553


410


Marketing and Advertising

404


349


247


Other

1,530


1,843


1,439

Net income from Operations

6,246


4,063


2,879








Interest Expense-Subordinated Debt

717


956


717

Income Before Income Taxes

5,529


3,107


2,162

Income Tax Expense

(1,243)


(674)


(538)

Net Income

$                              4,286


$                                2,433


$                              1,624








Return on Weighted Average Common Shares

$                                 1.46


$                                  0.83


$                                 0.55

 

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SOURCE INSBANK