INSBANK Parent, InsCorp, Inc., Reports 2nd Quarter Earnings Growth

NASHVILLE, Tenn., July 28, 2021 /PRNewswire/ — InsCorp, parent company to INSBANK (OTCQX:IBTN), today reported second quarter earnings of $1,369,000,…

NASHVILLE, Tenn., July 28, 2021 /PRNewswire/ — InsCorp, parent company to INSBANK (OTCQX:IBTN), today reported second quarter earnings of $1,369,000, or $0.47 per share compared to $549,000 and $.19 per share for the same period in 2020. Year-to-date earnings were $2,659,000, or $0.91 per share, which was a 107.6% increase over the prior year of $1,281,000 for the six months ended June 30, 2020. Net interest margin improved for the third consecutive quarter, as repricing liabilities drove a decrease in the bank’s cost of funding. «Our team made steady progress on both short and long-term goals this quarter,» said Jim Rieniets, President and CEO of INSBANK. «Growth, margin enhancement, and reduction in non-performing assets all contributed to a double-digit return for our shareholders.»

Driven by a variety of on-going technology initiatives, in the second quarter INSBANK also surpassed some of its own peak performance ratios. On a year-to-date basis the bank’s efficiency ratio improved to 51%, while assets per employee continued to grow, eclipsing $14 million for the first time ever. «Fintech is rapidly changing the banking landscape, as market share and capital are migrating to institutions capable of both meeting the customer digitally as well as employing technology to operate efficiently,» said Rieniets. «Driven by a culture that embraces continuous improvement, our team is meeting the technology challenge as evidenced by these operating metrics,» Rieniets continued.   

Highlights of the quarter and year-over-year include (Peer data is as of March 31, 2021):

  • Total assets grew $66.5 million year over year or 11.2% as of June 30, 2021.
  • Non-interest bearing deposits grew $14.6 million or 21.9% during the 12 months ended June 30, 2021.
  • Loans generated through the government’s SBA-PPP Phase II program totaled $19 million.
  • Deferred loan fees related to the PPP loans is approximately $770,000 at June 30, 2021.
  • Efficiency ratio was 51.1% at June 30, 2021, comparing favorably to the bank’s FDIC peer group average of 60.7%.
  • Non-Interest Expense to Total Average Assets was 1.64% for the six months ended June 30, 2021, slightly lower than 1.78% for the same period in 2020 and compared favorably to the bank’s FDIC peer group average of 2.43%.
  • Cost of all interest-bearing funding was .98% for the three months ended June 30, 2021 decreasing from 1.63% for the same period in 2020.
  • Assets per employee remained strong at $14.3 million, compared to the FDIC peer group of $6.6 million.
  • The bank’s tier 1 capital ratio was 12.1%, while total risk-based capital was 13.3%.
  • The allowance for loan and lease losses was 1.45% exclusive of PPP loan balances and 1.35% including PPP balances, slightly lower than the bank’s FDIC peer group average of 1.37%.
  • Annualized return on tangible common equity for the year was 10.09% for the six months ended June 30, 2021
  • Tangible book value increased $0.80 to $18.04 during the quarter primarily by virtue of retained earnings less a dividend of $.12 per share.

About INSBANK 

Since 2000, INSBANK has offered its clients highly personal services provided by experienced relationship managers, and has utilized technologies to deliver those services efficiently and conveniently. TMA Medical Banking and Medquity are both divisions of INSBANK.  TMA Medical Banking provides banking services to members of the Tennessee Medical Association, while Medquity offers healthcare banking solutions to individuals beyond the scope of Tennessee, whether they are still in residency, practicing or entering retirement. INSBANK is owned by InsCorp, Inc., a Tennessee bank holding company. The bank has offices in Nashville at 2106 Crestmoor Road, and in Brentwood at 5614 Franklin Pike Circle. For more information, please visit www.insbank.com

InsCorp, Inc.

Consolidated Balance Sheets

(000’s)

(unaudited)










June 30,


December 31,


June 30,



2021


2020


2020

Assets







Cash and Cash Equivalents

$                       15,785


$                                8,219


$                         4,986

Interest Bearing Deposits

57,637


33,356


32,297

Securities


16,093


17,039


23,508








Loans


534,574


525,235


500,025

  Allowance for Loan Losses

(7,225)


(7,365)


(6,480)

Net Loans


527,349


517,870


493,545








Premises and Equipment, net

13,437


13,630


13,831

Bank Owned Life Insurance

12,486


10,115


9,989

Restricted Equity Securities

8,630


7,612


6,299

Goodwill and Related Intangibles, net

1,091


1,091


1,091

Other Assets

7,640


8,298


8,090








  Total Assets

$                     660,148


$                            617,230


$                     593,636








Liabilities and Shareholders’ Equity






Liabilities







  Deposits








Non-interest-bearing

$                       81,376


$                              52,665


$                       66,773


Interest-bearing

452,422


417,731


397,941


Total Deposits

533,798


470,396


464,714








  Federal Home Loan Bank Advances

40,000


50,000


49,000

  Paycheck Protection Program Liquidity Fund

14,070


18,412


8,400

  Subordinated Debentures

15,000


15,000


15,000

  Federal Funds Purchased


7,000


  Other Liabilities

3,190


5,328


6,079

Total Liabilities

606,058


566,136


543,193








Shareholders’ Equity







Common Stock

31,585


31,190


31,155


Treasury Stock

(663)


(681)



Accumulated Retained Earnings

22,666


20,377


18,948


Accumulated Other Comprehensive Income

502


208


340


Total Stockholders’ Equity

54,090


51,094


50,443

Total Liabilities & Shareholders’ Equity

$                     660,148


$                            617,230


$                     593,636








Tangible Book Value

$                         18.04


$                                17.24


$                         16.85

 

InsCorp, Inc.

Consolidated Statements of Income

(000’s)

(Unaudited)










Six Months Ended


Twelve Months Ended


Six Months Ended



June 30, 2021


December 31, 2020


June 30, 2021








Interest Income

$                       11,998


$                              22,694


$                       11,780

Interest Expense

2,672


7,221


3,975

Net Interest Income

9,326


15,473


7,805

Provision for Loan Losses

1,025


2,400


1,100

Non-Interest Income







Service Charges on Deposit Accounts

119


212


103


Bank Owned Life Insurance

121


251


124


Gain on Interest Rate Hedges and Security sales

307




Other

583


705


383

Non-Interest Expense







Salaries and Benefits

3,356


6,200


3,137


Occupancy and equipment

644


1,233


584


Data Processing

293


553


270


Marketing and Advertising

208


349


152


Other

1,011


1,843


983

Net income from Operations

3,919


4,063


2,189








Interest Expense-Subordinated Debt

478


956


478

Income Before Income Taxes

3,441


3,107


1,711

Income Tax Expense

(782)


(674)


(430)

Net Income

$                         2,659


$                                2,433


$                         1,281








Return on Weighted Average Common Shares

$                            0.91


$                                   0.83


$                            0.44

 

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SOURCE INSBANK