Third Quarter Loan Growth Fuels INSBANK Profits

Nashville-Based Lender Launches Philanthropic Fund

News provided by

Nov 18, 2019, 17:23 ET

NASHVILLE, Tenn., Nov. 18, 2019 /PRNewswire/ -- InsCorp (OTCQX: IBTN), parent company of INSBANK, reported third quarter profits of $1,125,000, or $0.38 per share. During the quarter loans grew at an annualized rate of 11%. Over the past twelve months the bank's commercial loan portfolio has increased $13 million, or 8%, while a decline in construction loan balances reduced aggregate loan growth.

"Given the industry concerns of late cycle credit allocation and a yield curve pressuring margins, our team has been maintaining a disciplined approach to credit underwriting and pricing while also focusing resources on commercial deposits and treasury management solutions for business customers," said Jim Rieniets, INSBANK President & CEO.

Year-to-date operating income of $4,805,000 increased 8% over the prior year. Net income after taxes for the same period decreased slightly from $3.1 million to $3.0 million, due to the incremental financing cost of $15 million in subordinated debt recently issued to support continued growth. Highlights for the quarter included the following:

Net interest margin was 3.27%, which was unchanged from the prior quarter.
Treasury management services increased as evidenced by a 38% growth in year-to-date deposit service charges.
Year-to-date efficiency ratio was 57%, performing better than 70% of its FDIC peer group.
Bank-level non-interest expense was 1.87% of assets, placing the bank in the top 10^th percentile of its peer group for operating expense performance.
Return on assets at the bank-level increased to 1.02% from 0.94% the prior quarter.
Non-performing loans of 0.23% compared favorably to the bank's peer group average of 0.66%.
Tangible book value increased to $15.89, while book value was $16.27.

The bank also announced the creation of the INSBANK Philanthropic Fund, with the assistance of the Community Foundation of Middle Tennessee. A feature of a newly created money market product, the Philanthropy Account, will have INSBANK making formulaic contributions to this fund as aggregate client account balances grow. The fund, in turn, will make periodic contributions to a variety of local non-profit organizations.

"The bank and its employees and directors have always been engaged in supporting non-profits in the Nashville area, and we know that our customers care about the needs of our community, as well," said Rieniets. "With the Philanthropy Account our clients can access a competitively priced deposit product while helping drive increased contributions to the fund as the bank grows. Aligning the prosperity of the bank with the needs of our community is something we're very excited about," Rieniets added.

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)

		*September 30,*	*December 31,*	*September 30,*
		2019	2018	2018
Assets
Cash and Cash Equivalents		$ 4,630	$ 5,081	$ 3,884
Interest Bearing Deposits		32,904	25,740	11,718
Securities		19,381	22,874	22,089
Loans Held for Sale		-	531	4,023

Loans		451,016	436,354	439,666
Allowance for Loan Losses		(5,230)	(4,831)	(4,710)
Net Loans		445,786	431,523	434,956

Premises and Equipment, net		14,062	14,245	14,338
Bank Owned Life Insurance		9,801	9,612	9,548
Restricted Equity Securities		5,404	4,454	4,570
Goodwill and Related Intangibles, net		1,091	1,091	1,241
Other Assets		5,379	3,692	3,857

Total Assets		$ 538,438	$ 518,843	$ 510,224

Liabilities and Shareholders' Equity
Liabilities
Deposits
	Non-interest-bearing	$ 37,422	$ 33,832	$ 37,334
	Interest-bearing	380,922	378,349	359,059
	Total Deposits	418,344	412,181	396,393

Federal Home Loan Bank Advances		50,000	45,000	45,000
Bank Debt		-	-	9,397
Subordinated Debentures		15,000	15,000	-
Federal Funds Purchased		2,729	-	13,000
Other Liabilities		4,669	2,353	3,255
Total Liabilities		490,742	474,534	467,045

Shareholders' Equity
	Common Stock	30,955	30,655	30,626
	Accumulated Retained Earnings	16,708	14,005	13,072
	Accumulated Other Comprehensive Income	33	(351)	(519)
	Total Stockholders' Equity	47,696	44,309	43,179
Total Liabilities & Shareholders' Equity		$ 538,438	$ 518,843	$ 510,224

Tangible Book Value		$ 15.89	$ 14.85	$ 14.38

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

		*Nine Months Ended*	*Twelve Months Ended*	*Nine Months Ended*
		*September 30, 2019*	*December 31, 2018*	*September 30, 2018*

Net Interest Income		$ 12,010	$ 15,657	$ 11,530
Provision for Loan Losses		525	905	720
Non-Interest Income
	Service Charges on Deposit Accounts	106	110	77
	Residential Mortgage Services	-	1,251	1,202
	Bank Owned Life Insurance	189	251	188
	Other	432	450	277
Non-Interest Expense
	Salaries and Benefits	4,381	6,366	4,823
	Occupancy and equipment	860	1,108	836
	Data Processing	374	504	365
	Marketing and Advertising	287	449	322
	Other	1,505	2,462	1,750
Net income from Operations		4,805	5,925	4,458

Holding Company Interest Expense		(717)	(348)	(249)

Income Tax Expense		(1,092)	(1,244)	(1,102)
Net Income		$ 2,996	$ 4,333	$ 3,107

Return on Weighted Average Common Shares		$ 1.02	$ 1.49	$ 1.07