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.

(PRNewsfoto/INSBANK)

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 enhance 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 been offering 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 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

Quote

Quote

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