InsCorp Reports Q2 Profits Driven by Loan Growth

Published: Aug. 3, 2022 at 3:00 PM CDT

Nashville-Based Lender Adds Local Bank Investor to its Board of Directors

NASHVILLE, Tenn., Aug. 3, 2022 /PRNewswire/ -- Today InsCorp, parent company to INSBANK (OTCQX:IBTN), reported a second quarter net profit of $2,247,000 or, $0.78 per share, representing a 64.1% increase over the second quarter of 2021. Year-to-date earnings are $5,451,000, or $1.90 per share. Net interest income for the quarter was $5,883,000, which was a 20.5% increase over the prior year same quarter, and a 15.9% increase over the first quarter of 2022. Loan growth of $45 million for the quarter contributed to the expansion of both net interest margin and operating income. Operating income, excluding non-recurring items and one-time gains, was $2,837,000, as compared to $2,097,000 during the first quarter of the year. "Our team developed a robust loan pipeline in the early part of the year, and the second quarter saw those efforts come to fruition", said Jim Rieniets, President & CEO of INSBANK. "Loan demand has been well-balanced between both local businesses and healthcare borrowers nationwide thru our Medquity division," Rieniets continued.

(PRNewsfoto/INSBANK)
(PRNewsfoto/INSBANK)(PRNewswire)

Interest-bearing deposit balances decreased modestly during the quarter, while transaction account balances increased. The cost of interest-bearing funding was 0.71%, increasing from 0.69% the prior quarter. The slight increase in funding cost came at a time when the Fed had increased overnight rates by 100 basis points. Quarterly operating expenses of $3,159,000 equated to 1.73% of assets, and contributed to an efficiency ratio of 42.6%, which compares favorably to the bank's historical peer group average. Asset quality measures remained strong with non-performing assets of 0.40% and past due loans totaling 0.03%. "It goes without saying that we're navigating uncertainty in this economy, with an unprecedented combination of inflationary pressures, on-going supply chain disruption; and perils of a geo-political crisis in Europe," said Jim Rieniets. "Historically INSBANK has held a steady hand in extending credit, and plans to be a consistent partner to our customers as we head into uncharted waters."

Recently InsCorp, Inc. shareholders elected Hope Lundt to join the company's board of directors at its annual meeting.  Ms. Lundt has more than 30 years' experience in the financial industry and is a graduate of Vanderbilt University.  Today, she serves as managing partner and fund manager for Spence Limited, LP, an investment partnership established by John Spence 30 years ago. "Our board and members of management are pleased that Hope is part of the INSBANK team," said Mike Qualls, chairman of InsCorp. "Her depth of experience and knowledge of the financial services industry will enhance our board-level resources as the bank continues to innovate, grow scale economies, and navigate changes to the industry playing field," Qualls continued. Ms. Lundt was elected by InsCorp shareholders to serve a three-year term expiring in 2025.

Highlights of the quarter and year-over-year include

  • Loans grew $62.6 million or 11.7% as of June 30, 2022 compared to June 30, 2021.
  • Total assets grew $57 million or 8.7% as of June 30, 2022 compared to June 30, 2021.
  • Non-interest bearing deposits grew $9.8 million or 12.04% during the 12 months ended June 30, 2022.
  • Non-Interest Expense to Total Average Assets was 1.73% for the quarter ended June 30, 2022, slightly higher than 1.64% for the same period in 2021 and compared favorably to the bank's FDIC peer group average of 2.34%.
  • Cost of all interest-bearing funding was 0.71% for the three months ended June 30, 2022 decreasing from 0.98% for the same period in 2021.
  • Assets per employee remained strong at $15.58 million, compared to the FDIC peer group of $6.83 million.
  • The bank's tier 1 capital ratio was 11.72%, while total risk-based capital was 12.97%.
  • The allowance for loan and lease losses was 1.43%.
  • Annualized return on tangible common equity was 19.33% for the six months ended June 30, 2022.
  • Tangible book value increased to $20.38 on June 30, 2022 from $18.04 at June 30, 2021.
  • The percentage of loans past due and non-accrual to gross loans was 0.43% comparing favorably to peer of 0.76%.
  • There were $58,000 in net recoveries for the quarter ended June 30, 2022.
  • Accumulated Other Comprehensive Income (AOCI) reflected a loss on the securities portfolio partially offset by gains on interest rate swaps held by the bank for interest rate risk purposes, resulting in a $401,000 decrease in AOCI for the three months ended June 30, 2022.

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)




















June 30,




June 30,








2022




2021

Assets











Cash and Cash Equivalents




$                          3,542




$                       15,785

Interest Bearing Deposits





43,927




57,637

Securities






35,087




16,093













Loans






597,190




534,574

  Allowance for Loan Losses




(8,552)




(7,225)

Net Loans






588,638




527,349













Premises and Equipment, net




13,167




13,437

Bank Owned Life Insurance




13,557




12,486

Restricted Equity Securities




10,152




8,630

Goodwill and Related Intangibles, net




1,091




1,091

Other Assets






8,172




7,640













  Total Assets






$                     717,333




$                     660,148













Liabilities and Shareholders' Equity








Liabilities











  Deposits












Non-interest-bearing





$                       91,175




$                       81,376


Interest-bearing





472,536




452,422


Total Deposits





563,711




533,798













  Federal Home Loan Bank Advances




58,010




40,000

  Paycheck Protection Program Liquidity Fund



-




14,070

  Subordinated Debentures




17,500




15,000

  Line of Credit






5,000





  Federal Funds Purchased




10,562




-

  Other Liabilities





2,769




3,190

Total Liabilities






657,552




606,058













Shareholders' Equity











Common Stock





32,426




31,585


Treasury Stock





(3,180)




(663)


Accumulated Retained Earnings




30,354




22,666


Accumulated Other Comprehensive Income


181




502


Total Stockholders' Equity




59,781




54,090

Total Liabilities & Shareholders' Equity



$                     717,333




$                     660,148













Tangible Book Value





$                         20.38




$                         18.04













InsCorp, Inc.

Consolidated Statements of Income

(000's)

(Unaudited)


















Three Months Ended


Six Months Ended






June 30, 2022


June 30, 2021


June 30, 2022


June 30, 2021













Interest Income



$                          6,849


$                          6,122


$                       12,862


$                       11,998

Interest Expense



966


1,241


1,901


2,672

Net Interest Income



5,883


4,881


10,961


9,326

Provision for Loan Losses



300


375


445


1,025

Non-Interest Income











Service Charges on Deposit Accounts

54


60


111


119


Bank Owned Life Insurance


80


61


159


121


Gain on Security Sales


-


-


-


62


Other




279


346


500


583

Non-Interest Expense











Salaries and Benefits



1,913


1,702


3,948


3,356


Occupancy and equipment


402


319


835


644


Data Processing



167


146


321


293


Marketing and Advertising


129


108


257


208


Other




548


508


1,115


1,011

Net income from Operations


2,837


2,190


4,810


3,674













Gain on Interest Rate Hedges


323


(198)


2,839


245

Interest Expense-Holding Co. Debt


238


239


471


478

Income Before Income Taxes


2,922


1,753


7,178


3,441

Income Tax Expense



(675)


(384)


(1,727)


(782)

Net Income




$                          2,247


$                          1,369


$                          5,451


$                          2,659













Return on Weighted Average Common Shares

$                            0.78


$                            0.47


$                            1.90


$                            0.91













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SOURCE INSBANK

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