InsCorp Reports Second Quarter Earnings Driven by Loan Growth

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Nashville-based lender adds local bank investor to board

NASHVILLE, Tenn., August 3, 2022 /PRNewswire/ — Today, InsCorp, parent company of INSBANK (OTCQX:IBTN), reported net profit of $2,247,000 Where, $0.78 per share, which represents an increase of 64.1% compared to the second quarter of 2021. Earnings since the beginning of the year are $5,451,000Where $1.90 per share. Net interest income for the quarter was $5,883,000an increase of 20.5% compared to the same quarter of the previous year and 15.9% compared to the first quarter of 2022. Loan growth of $45 million for the quarter contributed to the expansion of net interest margin and operating income. Operating income, excluding non-recurring items and non-recurring gains, was $2,837,000compared to $2,097,000 during the first quarter of the year. “Our team developed a strong loan pipeline early in the year, and the second quarter saw those efforts come to fruition,” said Jim Rieniets, President and CEO of INSBANK. “Loan demand has been well balanced between local businesses and nationwide healthcare borrowers through our Medquity division,” Rieniets continued.

Interest-bearing deposit balances decreased slightly during the quarter, while transaction account balances increased. The cost of interest-bearing financing was 0.71%, up from 0.69% in the prior quarter. The slight increase in the cost of funding came at a time when the Fed had raised overnight rates by 100 basis points. Quarterly operating expenses of $3,159,000 equals 1.73% of assets and contributed to an efficiency ratio of 42.6%, which compares favorably to the historical average of the bank’s peer group. Asset quality metrics remained strong with non-performing assets at 0.40% and delinquent loans totaling 0.03%. “It goes without saying that we are navigating the uncertainty of this economy, with an unprecedented combination of inflationary pressures, continued supply chain disruptions and the perils of a geopolitical crisis in Europe,” said Jim Rieniets. “Historically, INSBANK has maintained a firm hand in extending credit and plans to be a constant 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 over 30 years of experience in the financial industry and is a graduate of Vanderbilt University. Today, she is Managing Partner and Fund Manager for Spence Limited, LP, an investment partnership established by John Spence 30 years ago. “Our Board of Directors and members of management are thrilled to have Hope as part of the INSBANK team,” said Mike Qualls, Chairman of InsCorp. “His depth of experience and knowledge of the financial services industry will strengthen our resources at the board level as the bank continues to innovate, develop economies of scale and navigate the changing playing field. industry,” continued Qualls. Ms. Lundt was elected by InsCorp shareholders for a three-year term expiring in 2025.

Quarterly and year-over-year highlights include

  • Loans increased $62.6 million i.e. 11.7% at June 30, 2022 compared to June 30, 2021.
  • Total assets increased $57 million i.e. 8.7% at June 30, 2022 compared to June 30, 2021.
  • Non-interest bearing deposits increased $9.8 million i.e. 12.04% over the 12 months ended June 30, 2022.
  • Non-interest expense to average total assets was 1.73% for the quarter ended June 30, 2022slightly higher than 1.64% for the same period in 2021 and compares favorably to the bank’s FDIC peer group average of 2.34%.
  • The cost of all interest bearing financing was 0.71% for the quarter ended June 30, 2022 down from 0.98% for the same period in 2021.
  • Assets per employee remained high at $15.58 millioncompared to the FDIC peer group of $6.83 million.
  • The bank’s Tier 1 capital ratio was 11.72%, while total risk capital was 12.97%.
  • The provision for loan and lease losses was 1.43%.
  • Annualized return on tangible equity was 19.33% for the six months ended June 30, 2022.
  • Tangible book value brought to $20.38 on June 30, 2022 of $18.04 at June 30, 2021.
  • The percentage of delinquent and unaccounted for loans to gross loans was 0.43%, which compares favorably to the comparison of 0.76%.
  • There was $58,000 in net recoveries for the quarter ended June 30, 2022.
  • Accumulated other comprehensive income (AOCI) reflects 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 a highly personalized service provided by experienced relationship managers, while positioning itself as an innovator, using technologies to provide these services in an efficient and convenient manner. In addition to its business activities, INSBANK operates three divisions, Medquity, TMA Medical Banking and INSBANK Online. Medquity provides healthcare banking solutions to individuals nationwide whether they are still in residence, practicing, or retired, while TMA Medical Banking provides banking services specifically to members of the Tennessee Medical Association. INSBANK Online offers virtual private client services available nationwide 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 at Brentwood at 5614 Franklin Pike Circle. For more information, visit www.insbank.com

InsCorp, Inc.

Consolidated balance sheets

(in thousands)

(unaudited)




















June 30th,




June 30th,








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 intangible assets, net




1,091




1,091

other assets






8,172




7,640













Total assets






$717,333




$660,148













Liabilities and equity








Passives











Deposits












Not bearing interest





$91,175




$81,376


Interest bearing





472,536




452 422


Total deposits





563 711




533,798













Federal bank advances on home loans




58,010




40,000

Paycheck Protection Program Liquidity Fund






14,070

Subordinated debentures




17,500




15,000

Credit line






5,000





Federal funds purchased




10,562




Other liabilities





2,769




3,190

Total responsibilities






657 552




606 058













Equity











Ordinary actions





32,426




31,585


Own shares





(3,180)




(663)


Accumulated retained earnings




30,354




22,666


Accumulated other comprehensive income


181




502


Full shareholder equity




59,781




54,090

Total Liabilities and Equity



$717,333




$660,148













Tangible book value





$20.38




$18.04













InsCorp, Inc.

Consolidated Statements of Income

(in thousands)

(Unaudited)


















Three months completed


Semester completed






June 30, 2022


June 30, 2021


June 30, 2022


June 30, 2021













interest income



$6,849


$6,122


$12,862


$11,998

Interest charges



966


1,241


1,901


2,672

Net interest income



5,883


4,881


10,961


9,326

Allowance 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 charges











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 operating income


2,837


2,190


4,810


3,674













Gain on interest rate hedges


323


(198)


2,839


245

Debit interest-Holding Co. Debt


238


239


471


478

income before taxes


2,922


1,753


7,178


3,441

income tax expense



(675)


(384)


(1,727)


(782)

Net revenue




$2,247


$1,369


$5,451


$2,659













Weighted average common stock yield

$0.78


$0.47


$1.90


$0.91













SOURCE IN BANK

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