InsCorp's 3rd Quarter Earnings Driven by Loan & Margin Growth

Rhea-AI Summary

InsCorp, Inc. (OTCQX: IBTN) reported record third quarter earnings of $1,626,000 ($0.55 per share), a significant rise from $343,000 ($0.11 per share) in Q3 2020. Year-to-date earnings reached $4,286,000 ($1.46 per share), marking a 164% increase compared to the prior year. The bank's net interest margin improved by 21 basis points, driven by lower deposit costs and strong loan growth of over 17% in core loans. Total assets grew by $94 million (16%) year-over-year. A dividend of $0.12 per share will be paid on December 10, 2021, enhancing shareholder value.

Positive

• Record Q3 earnings of $1,626,000 ($0.55/share), up significantly from $343,000 ($0.11/share) in 2020.
• Year-to-date earnings of $4,286,000 ($1.46/share) represent a 164% increase year-over-year.
• Net interest margin increased by 21 basis points due to lower deposit costs and fee recognition.
• Core loans grew by $35.6 million during the quarter, a 17% increase year-on-year.
• Total assets rose by $94 million (16%) year-over-year.

Negative

• None.

NASHVILLE, Tenn., Nov. 1, 2021 /PRNewswire/ -- InsCorp, Inc. (OTCQX: IBTN) in Nashville, and parent company of INSBANK, today reported third quarter earnings of $1,626,000, or $0.55 per share compared to $343,000 and $0.11 per share for the same period in 2020. Year-to-date earnings were $4,286,000, or $1.46 per share, which was a 164% increase over the prior year of $1,624,000 for the nine months ended September 30, 2020. This was the company's most profitable 3^rd quarter interim performance in its history. INSBANK's cost of interest-bearing deposits decreased 17 basis points during the quarter, continuing a trend for the Nashville-based lender as term deposits have repriced during the year. This, along with recognition of Paycheck Protection Program-related fees, contributed to a 21 basis point increase in net interest margin during the quarter.

Core loans, excluding PPP advances, increased $35.6 million during the quarter, driven by growth of the bank's niche medical division, Medquity, as well as commercial real estate loans. Loans, excluding PPP advances, were up more than 17% over the last 12 months, while total loans have grown 10% during the same period. "Our team remains focused on executing our strategy of balanced organic growth, both locally and within our nationwide physician-focused silos," said Jim Rieniets, President and CEO of INSBANK.

The company continues to derive benefit from its investments in technology, as evidenced by its operating efficiency and personnel leverage. The bank's measures of: efficiency ratio, operating expenses as a percentage of assets, and assets per employee all continue to compare favorably to its industry peer group and place it in the top quartile of those performance metrics. "Acceleration of digital trends by the pandemic has many community banks scrambling to find their place in the future of our industry," continued Rieniets. "A focus on fintech is not a bandwagon phenomenon at INSBANK; it's been a part of our DNA since the bank was founded over 20 years ago." 

The board of directors also recently approved the payment of a semi-annual dividend. InsCorp shareholders of record November 19, 2021, will receive a $0.12 dividend payable on December 10, 2021.  "While most of our earnings are needed to support the bank's growth, we're pleased to enhance our shareholders' value with a dividend yield," added Michael Qualls, Chairman of InsCorp. 

Highlights of the quarter and year-over-year include:

• Total assets grew $94 million year over year or 16% as of September 30, 2021.
• Non-interest bearing deposits grew $17.5 million or 27.8% during the 12 months ended September 30, 2021.
• Deferred loan fees related to the PPP loans is approximately $479,000 at September 30, 2021.
• Efficiency ratio was 50.9% at September 30, 2021, comparing favorably to the bank's FDIC peer group average of 60.5%.
• Non-Interest Expense to Total Average Assets was 1.66% for the nine months ended September 30, 2021, slightly lower than 1.74% for the same period in 2020 and compared favorably to the bank's FDIC peer group average of 2.41%.
• Cost of all interest-bearing funding was 0.75% for the three months ended September 30, 2021 decreasing from 1.47% for the same period in 2020.
• Assets per employee remained strong at $13.8 million, compared to the FDIC peer group of $6.7 million.
• The bank's tier 1 capital ratio was 11.6%, while total risk-based capital was 12.9%.
• The allowance for loan and lease losses was 1.42% exclusive of PPP loan balances.
• Annualized return on tangible common equity for the year was 10.95% for the nine months ended September 30, 2021
• Tangible book value increased $0.55 to $18.59 during the quarter primarily by virtue of retained earnings.
• The percentage of loans past due and non-accrual to gross loans was 0.52% comparing favorably to peer of 0.86%.
• Net charge-offs for the quarter ended September 30, 2021, were $25,000.

About INSBANK 

Since 2000, INSBANK has offered its clients highly personalized service provided by experienced relationship managers, while positioning itself as an innovator, utilizing technologies to deliver those services efficiently and conveniently.  In addition to its commercial focused operation, INSBANK operates three divisions, Medquity, TMA Medical Banking and INSBANK Online.  Medquity offers healthcare banking solutions to individuals nationwide, whether they are still in residency, practicing or entering retirement, while TMA Medical Banking provides banking services specifically to members of the Tennessee Medical Association. INSBANK Online offers nationally available virtual private client services 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 in Brentwood at 5614 Franklin Pike Circle. For more information, please visit www.insbank.com

InsCorp, Inc.
Consolidated Balance Sheets
(000's)
(unaudited)
		September 30,		December 31,		September 30,
		2021		2020		2020
Assets
Cash and Cash Equivalents		$                            16,400		$                                8,219		$                              8,476
Interest Bearing Deposits		58,738		33,356		25,415
Securities		17,513		17,039		19,304
Loans		549,510		525,235		500,133
Allowance for Loan Losses		(7,575)		(7,365)		(7,015)
Net Loans		541,935		517,870		493,118
Premises and Equipment, net		13,417		13,630		13,757
Bank Owned Life Insurance		13,318		10,115		10,052
Restricted Equity Securities		9,453		7,612		6,826
Goodwill and Related Intangibles, net		1,091		1,091		1,091
Other Assets		7,865		8,298		7,706
Total Assets		$                          679,730		$                           617,230		$                          585,745
Liabilities and Shareholders' Equity
Liabilities
Deposits
	Non-interest-bearing	$                            80,504		$                             52,665		$                            62,994
	Interest-bearing	478,533		417,731		384,684
	Total Deposits	559,037		470,396		447,678
Federal Home Loan Bank Advances		39,000		50,000		49,000
Paycheck Protection Program Liquidity Fund		4,932		18,412		18,412
Subordinated Debentures		15,000		15,000		15,000
Federal Funds Purchased		2,000		7,000		-
Other Liabilities		3,980		5,328		4,846
Total Liabilities		623,949		566,136		534,936
Shareholders' Equity
	Common Stock	31,662		31,190		31,190
	Treasury Stock	(663)		(681)		(278)
	Accumulated Retained Earnings	24,293		20,377		19,568
	Accumulated Other Comprehensive Income	489		208		329
	Total Stockholders' Equity	55,781		51,094		50,809
Total Liabilities & Shareholders' Equity		$                          679,730		$                           617,230		$                          585,745
Tangible Book Value		$                              18.59		$                                17.24		$                              16.98

 

InsCorp, Inc.
Consolidated Statements of Income
(000's)
(Unaudited)
		Nine Months Ended		Twelve Months Ended		Nine Months Ended
		September 30, 2021		December 31, 2020		September 30, 2020
Interest Income		$                            18,380		$                             22,694		$                            17,082
Interest Expense		3,752		7,221		5,638
Net Interest Income		14,628		15,473		11,444
Provision for Loan Losses		1,400		2,400		1,850
Non-Interest Income
	Service Charges on Deposit Accounts	180		212		154
	Bank Owned Life Insurance	202		251		187
	Gain on Int Rate Hedges and Sec sales	206		-		-
	Other	892		705		534
Non-Interest Expense
	Salaries and Benefits	5,098		6,200		4,598
	Occupancy and equipment	984		1,233		896
	Data Processing	446		553		410
	Marketing and Advertising	404		349		247
	Other	1,530		1,843		1,439
Net income from Operations		6,246		4,063		2,879
Interest Expense-Subordinated Debt		717		956		717
Income Before Income Taxes		5,529		3,107		2,162
Income Tax Expense		(1,243)		(674)		(538)
Net Income		$                              4,286		$                                2,433		$                              1,624
Return on Weighted Average Common Shares		$                                 1.46		$                                  0.83		$                                 0.55

 

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SOURCE INSBANK

FAQ

What were InsCorp's earnings for Q3 2021?

InsCorp reported Q3 2021 earnings of $1,626,000, or $0.55 per share.

How much did InsCorp's year-to-date earnings increase?

Year-to-date earnings for InsCorp reached $4,286,000, up 164% from the previous year.

What is the dividend announced by InsCorp for 2021?

InsCorp announced a semi-annual dividend of $0.12 per share, payable on December 10, 2021.

How did InsCorp's total assets change year-over-year?

InsCorp's total assets grew by $94 million, representing a 16% increase year-over-year.

What was the change in net interest margin for InsCorp?

InsCorp's net interest margin increased by 21 basis points during the quarter.