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

Tech Initiatives & Margin Expansion Fuel Nashville Bank's Efficiency

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Jul 28, 2021, 21:10 ET

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