INSBANK Parent Reports Record Annual Profits

Nashville Bank Prepares to Launch Medical Student Loan Fintech

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Jan 27, 2020, 10:54 ET

NASHVILLE, Tenn., Jan. 27, 2020 /PRNewswire/ -- InsCorp (OTCQX: IBTN), parent company of INSBANK, reported fourth quarter profits of $1,531,000, or $0.53 per share. During the quarter, loans grew at an annualized rate of 16%, while over the past twelve months the bank's loan portfolio had increased $32 million, or more than 7%. For the year total deposits increased 6%, in parallel with earning assets. Overall balance sheet growth provided operating leverage which resulted in an annual profit of $4,527,000, or $1.55 per share.

"We're proud of our team's accomplishments in 2019 given the headwind of a flat yield curve and an attractive market which finds out-of-state banks offering questionable pricing and credit terms to gain market share," said Jim Rieniets, INSBANK President & CEO. "Sticking to fundamentals, delivering quality service, and innovating to meet the needs of our clients will continue to be our game plan," Rieniets added.

Year-to-date operating income of $6,691,000 increased 13% over the prior year. Net income after taxes for the same period increased slightly from $4.3 million to $4.5 million, due to the incremental financing cost of $15 million in subordinated debt issued a year ago to support continued growth. Highlights of INBANK's performance included the following:

Quarterly net interest margin was 3.23%, a decrease of 4 basis points from the prior quarter.
A focus on treasury management products enabled a 45% growth in annual treasury service revenues.
Efficiency ratio improved to 56%, comparing favorably to the bank's FDIC peer group.
Non-interest expense was 1.89% of assets, improving from 2.26% the prior year.
Return on assets at the bank-level increased to 1.04% from 1.00% the prior year.
Non-performing assets increased to 0.66%, which was near the peer average of 0.62% as of the most recent quarterly data available.
Tangible book value increased to $16.32, while book value was $16.69.

The bank also announced the impending launch of a web-based, medical student loan refinance program, through a newly created business unit carrying the name "Medquity." "This began as an effort to serve the needs of young physicians that are members of the Tennessee Medical Association, with which the bank maintains a marketing agreement," said Blake Wilson, Division Head of TMA Medical Banking, a division of INSBANK. "We created the Medquity brand as this program will ultimately extend beyond the boundaries of Tennessee and the TMA, and it will provide a platform for other healthcare focused initiatives in the future," Wilson added.

"We're excited to be one of the few community banks that has created a technology-driven business unit to compete in the fintech space," said Jim Rieniets. "We believe that doing so in the physician niche vertical where we have a core competency will be good for customers and our shareholders."

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 is a division of INSBANK which provides banking services to members of the Tennessee Medical Association. 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.insbanktn.com.

InsCorp, Inc.
Consolidated Balance Sheets
(000's)
(unaudited)

		*December 31,*	*December 31,*
		2019	2018
Assets
Cash and Cash Equivalents		$ 5,342	$ 5,081
Interest Bearing Deposits		27,417	25,740
Securities		20,996	22,874
Loans Held for Sale		-	531

Loans		469,172	436,354
Allowance for Loan Losses		(5,380)	(4,831)
Net Loans		463,792	431,523

Premises and Equipment, net		13,982	14,245
Bank Owned Life Insurance		9,865	9,612
Restricted Equity Securities		5,866	4,454
Goodwill and Related Intangibles, net		1,091	1,091
Other Assets		5,023	3,692

Total Assets		$ 553,374	$ 518,843

Liabilities and Shareholders' Equity
Liabilities
Deposits
	Non-interest-bearing	$ 34,854	$ 33,832
	Interest-bearing	402,118	378,349
	Total Deposits	436,972	412,181

Federal Home Loan Bank Advances		49,000	45,000
Subordinated Debentures		15,000	15,000
Other Liabilities		3,404	2,353
Total Liabilities		504,376	474,534

Shareholders' Equity
	Common Stock	30,993	30,655
	Accumulated Retained Earnings	17,944	14,005
	Accumulated Other Comprehensive Income	61	(351)
	Total Stockholders' Equity	48,998	44,309
Total Liabilities & Shareholders' Equity		$ 553,374	$ 518,843

Tangible Book Value		$ 16.32	$ 14.85

InsCorp, Inc.
Consolidated Statements of Income
(000's)
(Unaudited)

		*Twelve Months Ended*	*Twelve Months Ended*
		*December 31, 2019*	*December 31, 2018*

Net Interest Income		$ 16,069	$ 15,657
Provision for Loan Losses		725	905
Non-Interest Income
	Service Charges on Deposit Accounts	154	110
	Residential Mortgage Services	-	1,251
	Loan Sale	384	-
	Bank Owned Life Insurance	253	251
	Other	605	450
Non-Interest Expense
	Salaries and Benefits	6,023	6,366
	Occupancy and equipment	1,160	1,108
	Data Processing	499	504
	Marketing and Advertising	379	449
	Other	1,988	2,462
Net income from Operations		6,691	5,925

Holding Company Interest Expense		(956)	(348)

Income Tax Expense		(1,208)	(1,244)
Net Income		$ 4,527	$ 4,333

Return on Weighted Average Common Shares		$ 1.55	$ 1.49