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.
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
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InsCorp, Inc. |
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Consolidated Balance Sheets |
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(000’s) |
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(unaudited) |
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June 30, |
June 30, |
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2022 |
2021 |
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Assets |
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Cash and Cash Equivalents |
$ 3,542 |
$ 15,785 |
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Interest Bearing Deposits |
43,927 |
57,637 |
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Securities |
35,087 |
16,093 |
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Loans |
597,190 |
534,574 |
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Allowance for Loan Losses |
(8,552) |
(7,225) |
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Net Loans |
588,638 |
527,349 |
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Premises and Equipment, net |
13,167 |
13,437 |
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Bank Owned Life Insurance |
13,557 |
12,486 |
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Restricted Equity Securities |
10,152 |
8,630 |
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Goodwill and Related Intangibles, net |
1,091 |
1,091 |
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Other Assets |
8,172 |
7,640 |
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Total Assets |
$ 717,333 |
$ 660,148 |
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Liabilities and Shareholders’ Equity |
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Liabilities |
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Deposits |
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Non-interest-bearing |
$ 91,175 |
$ 81,376 |
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Interest-bearing |
472,536 |
452,422 |
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Total Deposits |
563,711 |
533,798 |
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Federal Home Loan Bank Advances |
58,010 |
40,000 |
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Paycheck Protection Program Liquidity Fund |
– |
14,070 |
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Subordinated Debentures |
17,500 |
15,000 |
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Line of Credit |
5,000 |
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Federal Funds Purchased |
10,562 |
– |
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Other Liabilities |
2,769 |
3,190 |
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Total Liabilities |
657,552 |
606,058 |
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Shareholders’ Equity |
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Common Stock |
32,426 |
31,585 |
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Treasury Stock |
(3,180) |
(663) |
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Accumulated Retained Earnings |
30,354 |
22,666 |
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Accumulated Other Comprehensive Income |
181 |
502 |
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Total Stockholders’ Equity |
59,781 |
54,090 |
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Total Liabilities & Shareholders’ Equity |
$ 717,333 |
$ 660,148 |
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Tangible Book Value |
$ 20.38 |
$ 18.04 |
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InsCorp, Inc. |
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Consolidated Statements of Income |
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(000’s) |
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(Unaudited) |
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Three Months Ended |
Six Months Ended |
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June 30, 2022 |
June 30, 2021 |
June 30, 2022 |
June 30, 2021 |
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Interest Income |
$ 6,849 |
$ 6,122 |
$ 12,862 |
$ 11,998 |
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Interest Expense |
966 |
1,241 |
1,901 |
2,672 |
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Net Interest Income |
5,883 |
4,881 |
10,961 |
9,326 |
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Provision for Loan Losses |
300 |
375 |
445 |
1,025 |
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Non-Interest Income |
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Service Charges on Deposit Accounts |
54 |
60 |
111 |
119 |
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Bank Owned Life Insurance |
80 |
61 |
159 |
121 |
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Gain on Security Sales |
– |
– |
– |
62 |
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Other |
279 |
346 |
500 |
583 |
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Non-Interest Expense |
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Salaries and Benefits |
1,913 |
1,702 |
3,948 |
3,356 |
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Occupancy and equipment |
402 |
319 |
835 |
644 |
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Data Processing |
167 |
146 |
321 |
293 |
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|
Marketing and Advertising |
129 |
108 |
257 |
208 |
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Other |
548 |
508 |
1,115 |
1,011 |
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Net income from Operations |
2,837 |
2,190 |
4,810 |
3,674 |
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Gain on Interest Rate Hedges |
323 |
(198) |
2,839 |
245 |
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Interest Expense-Holding Co. Debt |
238 |
239 |
471 |
478 |
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Income Before Income Taxes |
2,922 |
1,753 |
7,178 |
3,441 |
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Income Tax Expense |
(675) |
(384) |
(1,727) |
(782) |
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Net Income |
$ 2,247 |
$ 1,369 |
$ 5,451 |
$ 2,659 |
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Return on Weighted Average Common Shares |
$ 0.78 |
$ 0.47 |
$ 1.90 |
$ 0.91 |
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SOURCE INSBANK
