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INSBANK Parent InsCorp Reports Third Quarter Results and Declares Quarterly Cash Dividend

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InsCorp (OTCQX: IBTN) reported Q3 2024 net income of $1,841,000 ($0.64 per share), compared to $1,820,000 ($0.63 per share) in Q2 2024 and $2,311,000 ($0.80 per share) in Q3 2023. The company saw loan growth of 4% year-over-year and 10% quarter-over-quarter, with strong performance in commercial and industrial loans. Revenue improved 6% quarter-over-quarter to $6,571,000, though declined 3% year-over-year. The Board approved a quarterly dividend of $0.10 per share, representing a 17.6% annualized increase from 2023.

InsCorp (OTCQX: IBTN) ha riportato un utile netto per il terzo trimestre del 2024 di $1.841.000 ($0,64 per azione), rispetto ai $1.820.000 ($0,63 per azione) del secondo trimestre del 2024 e ai $2.311.000 ($0,80 per azione) del terzo trimestre del 2023. L'azienda ha registrato una crescita dei prestiti del 4% rispetto all'anno precedente e del 10% rispetto al trimestre precedente, con un buon andamento nei prestiti commerciali e industriali. I ricavi sono aumentati del 6% rispetto al trimestre precedente, raggiungendo $6.571.000, anche se sono diminuiti del 3% rispetto all'anno precedente. Il Consiglio ha approvato un dividendo trimestrale di $0,10 per azione, che rappresenta un aumento annualizzato del 17,6% rispetto al 2023.

InsCorp (OTCQX: IBTN) reportó un ingreso neto para el tercer trimestre de 2024 de $1,841,000 ($0.64 por acción), en comparación con $1,820,000 ($0.63 por acción) en el segundo trimestre de 2024 y $2,311,000 ($0.80 por acción) en el tercer trimestre de 2023. La compañía vio un crecimiento de préstamos del 4% en comparación interanual y del 10% en comparación trimestral, con un sólido desempeño en préstamos comerciales e industriales. Los ingresos mejoraron un 6% en comparación trimestral, alcanzando $6,571,000, aunque disminuyeron un 3% en comparación interanual. La Junta aprobó un dividendo trimestral de $0.10 por acción, lo que representa un aumento anualizado del 17.6% respecto a 2023.

InsCorp (OTCQX: IBTN)는 2024년 3분기 순이익이 $1,841,000 ($0.64 per 주식)이라고 보고했으며, 이는 2024년 2분기의 $1,820,000 ($0.63 per 주식) 및 2023년 3분기의 $2,311,000 ($0.80 per 주식)와 비교됩니다. 회사는 대출 성장률이 지난해 대비 4%, 분기 대비 10% 증가했으며, 상업 및 산업 대출에서 강력한 실적을 보였습니다. 수익은 분기 대비 6% 증가하여 $6,571,000에 달했지만, 지난해 대비 3% 감소했습니다. 이사회는 주당 $0.10의 분기 배당금을 승인했으며, 이는 2023년 대비 연평균 17.6% 증가한 수치입니다.

InsCorp (OTCQX: IBTN) a annoncé un bénéfice net pour le troisième trimestre 2024 de 1.841.000 $ (0,64 $ par action), contre 1.820.000 $ (0,63 $ par action) au deuxième trimestre 2024 et 2.311.000 $ (0,80 $ par action) au troisième trimestre 2023. L'entreprise a enregistré une croissance des prêts de 4 % par rapport à l'année précédente et de 10 % par rapport au trimestre précédent, avec de bonnes performances dans les prêts commerciaux et industriels. Les revenus ont augmenté de 6 % par rapport au trimestre précédent, atteignant 6.571.000 $, bien qu'ils aient diminué de 3 % par rapport à l'année précédente. Le Conseil a approuvé un dividende trimestriel de 0,10 $ par action, représentant une augmentation annualisée de 17,6 % par rapport à 2023.

InsCorp (OTCQX: IBTN) meldete im dritten Quartal 2024 einen Nettogewinn von $1.841.000 ($0,64 pro Aktie), verglichen mit $1.820.000 ($0,63 pro Aktie) im zweiten Quartal 2024 und $2.311.000 ($0,80 pro Aktie) im dritten Quartal 2023. Das Unternehmen verzeichnete ein Wachstum der Kredite von 4% im Jahresvergleich und 10% im Quartalsvergleich, mit starker Leistung bei gewerblichen und industriellen Krediten. Der Umsatz stieg im Vergleich zum Vorquartal um 6% auf $6.571.000, sank jedoch im Jahresvergleich um 3%. Der Vorstand genehmigte eine vierteljährliche Dividende von $0,10 pro Aktie, was eine annualisierte Steigerung von 17,6% im Vergleich zu 2023 darstellt.

Positive
  • Net income increased QoQ from $1,820,000 to $1,841,000
  • Loan growth accelerated to 10% quarter-over-quarter
  • Revenue improved 6% quarter-over-quarter to $6,571,000
  • Strong capital ratios with tier-1 leverage ratio of 11.78%
  • 17.6% increase in annualized dividend rate compared to 2023
  • Tangible book value increased 8.0% YoY to $25.33
Negative
  • Net income decreased YoY from $2,311,000 to $1,841,000
  • EPS declined YoY from $0.80 to $0.64
  • Revenue declined 3% year-over-year
  • Net interest income decreased 4% YoY to $5,960,000
  • Expense growth of 16% YoY to $4,133,000
  • Nonperforming assets increased to 1.10% of loans vs 0.19% a year ago

NASHVILLE, Tenn., Oct. 29, 2024 /PRNewswire/ -- Today InsCorp, Inc. (OTCQX: IBTN) reported a net income of $1,841,000, or $0.64 per share, in the third quarter of 2024 ("3Q24") versus $1,820,000, or $0.63 per share, in 2Q24 and respective levels of $2,311,000 and $0.80 in 3Q23. "We're proud of our team's accomplishments in the third quarter, as we had healthy growth in each of our value-creating business lines: commercial lending, healthcare banking, and commercial deposits and related treasury services," said Jim Rieniets, President & CEO of INSBANK. "Our outlook for the rest of the year remains positive, as we have a strong pipeline of new business opportunities and stable asset quality." InsCorp generated a ROATCE of 10.1% in 3Q24 versus 10.3% in 2Q24 and 13.8% in 3Q23.

The decline in EPS on a year-over-year basis ("Y/Y") in 3Q24 reflected the following factors: (1) an increase in provision expense of $362,000 (EPS: -$0.09), (2) net interest income pressure of $245,000 (EPS: -$0.06), and (3) expenses totaling $214,000 not expected to recur in 4Q24 (EPS: -$0.06), which were partially offset by (4) a lower tax rate (EPS: +$0.04). Net interest margin pressure of 25 bps Y/Y, offset in part by average earning asset growth of 4% Y/Y, resulted in net interest income growth of -4% Y/Y; on a positive note, margin expansion of 10 bps linked quarter ("LQ") and average earning asset growth of 1% LQ lifted net interest income by 6% LQ in 3Q24. The expenses, which did not affect 2Q24 or 3Q23, represented 75% of the LQ decline in pretax income of $285,000. On an after-tax basis, the aforementioned expenses adversely affected EPS by $0.06 versus 2Q24. A lower tax rate benefited quarterly EPS by $0.03 in 3Q24 compared to 2Q24. Mark-to-market gains and losses from hedging activities contributed $0.02 to EPS in 3Q24 versus ($0.02) in 2Q24 and ($0.06) in 3Q23. Hedging contracts remain in place as an insurance policy against an unexpected drop in rates.

Bank-wide loan origination momentum remained solid at $48 million in 3Q24 versus $57 million in 2Q24 and $26 million in 3Q23. Commercial and industrial ("C&I") and Medquity loan originations represented 71% of originations in 3Q24 compared to smaller volumes of commercial real estate ("CRE") and consumer loans, which represented 19% and 10%, respectively, of originations. Management remains optimistic that loan growth will improve in 4Q24 and 1Q25 as the increase in the loan pipeline to $124 million versus $79 million a quarter ago and $19 million a year ago remains a positive harbinger for growth in future periods.

Loan growth improved to 4% Y/Y in 3Q24 compared to 1% Y/Y in 2Q24. On a LQ annualized basis ("LQA") loan growth accelerated to 10% in 3Q24 versus 4% in 2Q24. Growth in C&D (2% Y/Y; 12% LQ) and C&I (13% Y/Y; 18% LQA) loans accounted for net growth on a LQ basis, as growth in HELOC (26% Y/Y; 25% LQ) offset a small decline in CRE (-1% Y/Y; -3% LQA). On a Y/Y basis, growth was concentrated in C&I (+13%), residential (+20%), and HELOC (+26%), which were offset in part by declines in multi-family (-28%) and CRE (-1%). The Y/Y and LQ growth in HELOC balances of $2.7 million was attributable to the hiring of INSBANK's Lead Private Banker in April 2024.

Medquity, INSBANK's healthcare business, continues to provide solid growth and diversification given its national focus and reduced sensitivity to economic and real estate cycles. In 3Q24, Medquity reported loan growth of 9% Y/Y (21% LQA) compared to 9% Y/Y (6% LQA) in 2Q24. Medquity's loan balance of $220 million lifted the segment's mix to just over 31% of the portfolio versus approximately 28% a year ago. Medquity's origination and pipeline activity remained strong and suggested solid growth into 2025. However, as Medquity's portfolio seasons over time, it is reasonable to expect lumpiness in growth due to the increasing potential for payoff activity.

Revenue improved 6% LQ (-3% Y/Y) to $6,571,000 in 3Q24, as net interest income comparisons improved for the second consecutive quarter since bottoming in 1Q24. Although net interest income declined $245,000, or -4%, Y/Y to $5,960,000 in the quarter, the contribution to revenue improved to $338,000, or 6%, LQ in 3Q24 versus an improvement of $29,000 LQ in 2Q24. Noninterest income increased $57,000, or 10%, Y/Y (+14% LQA) to $611,000 in 3Q24. Treasury management income increased 3% Y/Y to $130,000 compared to the previous quarterly record level of $126,000 in 3Q23 and by 24% LQ in 3Q24, which reflected continued new customer growth.

Expense growth of $563,000 Y/Y (16% Y/Y; 12% LQ) to $4,133,000 in 3Q24 primarily consisted of increased salaries and benefits costs of $430,000, data processing of $46,000, and marketing and advertising of $48,000. Approximately $214,000 of the quarterly increase in overhead consisted of salaries and benefits expense related to long-term incentive compensation expense ($182,000) that vests annually and data processing expense ($32,000), both of which were recognized in 3Q24 and are not expected to recur in 4Q24. The remaining increase in salaries and benefits expense of $248,000 primarily reflected an increase in associate headcount to 62 versus 59 a quarter ago and 57 a year ago, in addition to merit raises and increased benefit costs.

The bank-level net interest margin of 3.24% in 3Q24 compared to 3.08% in 2Q24 and 3.50% in 3Q23. On an LQ basis, the margin benefited from an increase in the loan yield to 6.93% (+41 bps Y/Y; +20 bps LQ) in 3Q24 and an LQ decrease in the cost of deposits to 3.72% (+71 bps Y/Y; -17 bps LQ). The loan yield improvement was attributable to accelerating loan growth. The LQ decrease in the cost of deposits reflected strong growth in noninterest bearing (11% Y/Y; 12% LQ) and non-CD interest bearing deposit ("IBDs") balances (15% Y/Y; 25% LQ) compared to slower growth in higher-cost CDs (7% Y/Y; -2% LQ) in 3Q24. As a result, noninterest-bearing and low-cost IBDs represented 39% of deposits versus 34% a quarter ago and 37% a year ago. Deposit growth of 9% Y/Y versus loan growth of 4% Y/Y resulted in a loan to deposit ratio of 98% at 3Q24-end versus 101% a quarter ago and 103% a year ago. Balance sheet liquidity of $130 million compared to $109 million a quarter ago and $97 million a year ago reflected growth in cash and interest-bearing deposits of $31 million Y/Y and $22 million LQ.

Asset quality measures remain healthy. Net charge-offs represented 0.00% of average loans in 3Q24 and 2Q24 compared to (0.01%) in 3Q23. Provision for credit losses totaled $262,000 in 3Q24 versus $75,000 in 2Q24 and ($100,000) in 3Q23. The allowance for credit losses of 1.36% of loans was unchanged on a Y/Y basis (+1 bp LQ). The allowance for unfunded commitments decreased $65,000 LQ to $385,000, or 0.38% of unfunded loans. Although total unfunded commitments only declined $4.3 million, or -4.1%, to $102.2 million, unfunded construction loan commitments decreased $11.8 million LQ, or -24%, to $38.4 million. The LQ decline in unfunded construction loans was only partially offset by increases in C&I commitments of $5.4 million to $41.8 million and HELOC commitments of $1.8 million to $15.1 million at 3Q24-end. The decrease in unfunded construction loans largely reflected the migration of unfunded commitments to funded balances in 3Q24, resulting in an increase in the allowance for credit losses.

Nonperforming assets (NPAs") were 1.10% of loans versus 1.08% a quarter ago and 0.19% a year ago. Most of the Y/Y change reflected the migration of one well-secured real estate loan from the bank's watch list at the end of 2023. Virtually all nonperforming assets are well-secured and collateralized by real estate with significant equity, for which specific reserves are relatively low. As previously noted, in 2024, one very well-collateralized real estate loan accounted for 75% of NPAs, or 0.82% of loans, at 3Q24-end. Management expects to receive a significant curtailment on this nonperforming loan in 4Q24.

The aggregate level of watch list loans improved Y/Y and LQ in 2Q24. Specifically, the balance of watch list loans declined 31% Y/Y and 5% LQ during the most recent quarter, as the watch list to total loan ratio remained consistent with the level that existed prior to the pandemic. Loans 30 days past due represented 0.26% of loans as of September 30, 2024, compared to 0.11% a quarter ago and 0.00% a year ago. The change in 30-day past dues represented the movement of two well-collateralized real estate secured relationships that were less than 60 days past due as of quarter-end.

C&D and CRE concentration levels remain below regulatory guidance and historically normal levels. Due to the increase in funded C&D balances in the quarter, C&D loans increased to 86% of total capital compared to 78% a quarter ago. Total CRE, including C&D loans, increased to 288% of total capital versus 285% a quarter ago. C&D and CRE to capital ratios remained below the year-ago levels of 94% and 305%, respectively, historically normal levels for the bank and respective regulatory guidance levels of 100% and 300%. "Our bank is known to have a robust CRE risk management program, and those portfolio analytics continue to demonstrate durability," said CEO Rieniets. "Additionally, our consistent application of underwriting standards across the economic cycle positions INSBANK to take advantage of growth opportunities in the vibrant middle Tennessee market." The decline in these ratios was due in part to payoffs and paydowns as well as growth in capital of 44% over the past three years, which exceeded the growth in non-farm, non-residential real estate of 19% over the same period.

Existing capital levels and ratios remained supportive of meaningful balance sheet growth. INSBANK remained "well capitalized" from a regulatory perspective with a tier-1 leverage ratio of 11.78% (+37 bps Y/Y), a common equity tier-1 capital ratio of 12.69% (+100 bps Y/Y), and a total risk-based capital ratio of 13.94% (+109 bps Y/Y). InsCorp, Inc.'s tangible common equity ratio increased to 8.42%, as of 3Q24-end, versus 8.61% a quarter ago and 8.27% a year ago. Tangible book value increased 8.0%, or $1.87 per share, Y/Y to $25.33, as of September 30, 2024. Accumulated Other Comprehensive Income was ($1,562,000), or approximately 1.6% of bank-level tier-1 capital of $99,240,000.

The Board of Directors has approved the payment of a quarterly dividend of $0.10 per common share on December 6, 2024, to shareholders of record on November 15, 2024. The annualized quarterly dividend rate of $0.40 per share represents an annualized increase of 17.6% compared to dividends of $0.34 per share in 2023. The Company repurchased 9,000 shares during the quarter, leaving 116,000 shares, or 4.0% of the Company's outstanding shares, available for repurchase under the existing authorization through January 27, 2026.

About INSBANK 

Since 2000, INSBANK has offered its clients highly personalized services 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 through three divisions: Medquity, TMA Medical Banking, and Finworth.  Medquity offers healthcare banking solutions to physicians, partnerships, and practices nationwide, while TMA Medical Banking provides banking services specifically to members of the Tennessee Medical Association. Finworth offers nationally available virtual private client services for interest-bearing deposits. InsCorp, Inc., a Tennessee bank holding company, owns INSBANK. InsCorp, Inc. shares are traded on the OTCQX under the ticker symbol IBTN. 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,
2024


December 31,
2023


September 30,
2023

Assets






Cash and Cash Equivalents

$             10,640


$               7,688


$               5,182

Interest Bearing Deposits

63,788


49,757


38,575

Securities

55,090


58,162


53,565







Loans

702,508


681,558


673,256

  Allowance for Credit Losses

(9,556)


(9,126)


(9,164)

Net Loans

692,952


672,432


664,092







Premises and Equipment, net

12,456


12,715


12,799

Bank Owned Life Insurance

14,357


14,065


13,975

Restricted Equity Securities

4,307


8,890


8,980

Goodwill and Related Intangibles, net

1,091


1,091


1,091

Other Assets

15,685


12,290


15,206







  Total Assets

$          870,366


$          837,090


$          813,465







Liabilities and Shareholders' Equity






Liabilities






Deposits






Noninterest Bearing

$             85,405


$             70,417


$             77,253

Interest Bearing

632,279


615,779


579,247

Total Deposits

717,684


686,196


656,500







Federal Home Loan Bank Advances

42,000


45,000


53,000

Subordinated Debentures

17,365


17,348


17,500

Notes Payable

8,281


8,750


8,250

Other Liabilities

10,716


9,939


9,932

Total Liabilities

796,046


767,233


745,182







Shareholders' Equity






Common Stock

33,725


33,112


32,999

Treasury Stock

(4,089)


(3,869)


(3,857)

Accumulated Retained Earnings

46,246


41,714


39,943

Accumulated Other Comprehensive Income

(1,562)


(1,100)


(802)

Total Stockholders' Equity

74,320


69,857


68,283

Total Liabilities & Shareholders' Equity

$          870,366


$          837,090


$          813,465







Tangible Book Value per Share

$               25.33


$               23.93


$               23.46

 

InsCorp, Inc.

Consolidated Statements of Income

(000's)

(Unaudited)












Three Months Ended


Nine Months Ended


September 30,
2024


June 30,
2024


September 30,
2023


September 30,
2024


September 30,
2023











Interest Income

$         13,262


$         12,696


$         12,129


$         38,521


$         34,063

Interest Expense

7,302


7,074


5,924


21,346


16,232

Net Interest Income

5,960


5,622


6,205


17,175


17,831

Provision for Credit Losses

262


75


(100)


362


165

Noninterest Income










Service Charges on Deposit Accounts

144


71


94


282


192

Bank Owned Life Insurance

100


97


87


292


254

Other

367


422


373


1,204


965

Total Noninterest Income

611


590


554


1,778


1,411











Noninterest Expense










Salaries and Benefits

2,754


2,395


2,324


7,450


6,807

Occupancy and equipment

407


422


391


1,222


1,138

Data Processing

133


101


80


328


295

Marketing and Advertising

126


71


78


316


354

Other

713


687


697


2,052


1,934

Total Noninterest Expense

4,133


3,676


3,570


11,368


10,528











Net Income from Operations

2,176


2,461


3,289


7,223


8,549











Gain (Loss) in Interest Rate Hedges

96


(93)


(247)


(249)


(485)

Income Before Income Taxes

2,272


2,368


3,042


6,974


8,064

Income Tax Expense

(431)


(548)


(731)


(1,550)


(1,927)

Net Income

$           1,841


$           1,820


$           2,311


$           5,424


$           6,137











Earnings per Share

$            0.64


$            0.63


$            0.80


$            1.88


$            2.13











Performance Metrics










Consolidated










ROAA

0.87 %


0.88 %


1.14 %


1.09 %


1.23 %

ROAE

9.9 %


10.1 %


13.6 %


9.48 %


10.85 %

ROATCE

10.1 %


10.3 %


13.8 %


10.2 %


12.6 %

Net Interest Margin

2.96 %


2.87 %


3.21 %


2.90 %


3.19 %

Efficiency

62.9 %


59.2 %


52.8 %


60.0 %


54.7 %

Revenue / Employee

422


423


470


429


451

Expense / Employee

265


251


248


257


247

Assets / Employee

14,038


14,141


14,271


13,789


13,803











Bank Level










ROAA

1.12 %


1.07 %


1.36 %


1.09 %


1.23 %

ROAE

9.7 %


9.4 %


11.9 %


9.5 %


10.9 %

Net Interest Margin

3.24 %


3.08 %


3.50 %


3.15 %


3.39 %











Capital Ratios










Tier-1 Leverage

11.78 %


11.63 %


11.41 %





Common Equity Tier-1

12.69 %


12.52 %


11.69 %





Total Risk-Based Capital

13.94 %


13.77 %


12.85 %





 

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SOURCE INSBANK

FAQ

What was InsCorp's (IBTN) earnings per share in Q3 2024?

InsCorp reported earnings of $0.64 per share in Q3 2024.

How much did InsCorp (IBTN) loan portfolio grow in Q3 2024?

InsCorp's loan portfolio grew 4% year-over-year and 10% quarter-over-quarter in Q3 2024.

What dividend did InsCorp (IBTN) declare for Q3 2024?

InsCorp declared a quarterly dividend of $0.10 per share, payable on December 6, 2024.

What was InsCorp's (IBTN) revenue in Q3 2024?

InsCorp reported revenue of $6,571,000 in Q3 2024, up 6% quarter-over-quarter but down 3% year-over-year.

INSCORP INC

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