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Press Release: Quarterly Profits Increase for INSBANK Parent, InsCorp, Inc.

· 02/04/2021 13:32
InsCorp, Inc. Consolidated Balance Sheets (000's) (unaudited) December 31 December 31, 2020 2019 -------------------- --------------------- Assets Cash and Cash Equivalents $ 8,219 $ 5,342 Interest Bearing Deposits 33,356 27,418 Securities 17,039 20,996 Loans 525,235 469,172 Allowance for Loan Losses (7,365) (5,380) Net Loans 517,870 463,792 Premises and Equipment, net 13,630 13,982 Bank Owned Life Insurance 10,115 9,865 Restricted Equity Securities 7,612 5,866 Goodwill and Related Intangibles, net 1,091 1,091 Other Assets 7,947 5,022 Total Assets $ 616,879 $ 553,374 Liabilities and Shareholders' Equity Liabilities Deposits Non-interest-bearing $ 52,665 $ 34,854 Interest-bearing 417,731 402,118 Total Deposits 470,396 436,972 Federal Home Loan Bank Advances 50,000 49,000 Paycheck Protection Program Liquidity Fund 18,412 - Subordinated Debentures 15,000 15,000 Federal Funds Purchased 7,000 - Other Liabilities 5,013 3,404 Total Liabilities 565,821 504,376 Shareholders' Equity Common Stock 31,204 30,993 Treasury Stock (681) - Accumulated Retained Earnings 20,362 17,944 Accumulated Other Comprehensive Income 173 61 Total Stockholders' Equity 51,058 48,998 Total Liabilities & Shareholders' Equity $ 616,879 $ 553,374 Tangible Book Value $ 17.24 $ 16.32 InsCorp, Inc. Consolidated Statements of Income (000's) (Unaudited) Twelve Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 --------------------- ---------------------- Interest Income 22,694 24,941 Interest Expense 7,221 8,872 Net Interest Income $ 15,473 $ 16,069 Provision for Loan Losses 2,400 725 Non-Interest Income Service Charges on Deposit Accounts 212 154 Bank Owned Life Insurance 251 253 Sale of Government Guaranteed Loans - 384 Other 705 604 Non-Interest Expense Salaries and Benefits 6,200 6,023 Occupancy and equipment 1,233 1,160 Data Processing 553 499 Marketing and Advertising 349 379 Other 1,843 1,988 Net income from Operations 4,063 6,690 Interest Expense-Subordinated Debt 956 956 Income Before Income Taxes 3,107 5,734 Income Tax Expense (674) (1,207) Net Income $ 2,433 $ 4,527 Return on Weighted Average Common Shares $ 0.83 $ 1.55-- Total assets grew $63.5 million year over year or 11.5% for 2020. -- Non-interest bearing deposits grew $17 million or 49% during 2020. -- Loans generated through the government's SBA-PPP program totaled $45.7 million. -- Deferred loan fees related to the PPP loans is approximately $900,000 at December 31, 2020 -- Efficiency ratio was 59.9% at December 31, 2020, comparing favorably to the bank's FDIC peer group average of 62.7%. -- Non-Interest Expense to Total Assets was 1.73% for the year ended December 31, 2020, slightly lower than 1.89% for the same period in 2019 and compared favorably to the bank's FDIC peer group average of 2.60%. -- Cost of all interest-bearing funding was 1.31% for the three months ended December 31, 2020 decreasing from 2.06% for the same period in 2019. -- Assets per employee remained strong at $13.66 million, compared to the FDIC peer group of $6.34 million. -- The bank's tier 1 capital ratio was 12.1%, while total risk-based capital was 13.3%. -- Annualized net charge-offs to average loans were 0.08% for the year ended December 31, 2020 compared to 0.04% for the same period in 2019. -- The allowance for loan and lease losses was 1.40%, slightly higher than the bank's FDIC peer group average of 1.38%. -- Annualized return on tangible common equity for the year was 4.86% -- During 2020 InsCorp returned to shareholders $751,000 in the form of stock buybacks. -- Tangible book value increased $0.26 to $17.24 during the quarter primarily by virtue of retained earnings.

Quarterly Profits Increase for INSBANK Parent, InsCorp, Inc.

Margin Improves as Funding Costs Steadily Decrease

PR Newswire

NASHVILLE, Tenn., Feb. 4, 2021

NASHVILLE, Tenn., Feb. 4, 2021 /PRNewswire/ -- Inscorp, Inc., parent company of INSBANK, (OTCQX: IBTN) today reported 4(th) quarter earnings of $808,500 or $0.28 per share. Quarterly earnings for the Nashville-based lender were up $465,500, or $0.17 per share versus the 3(rd) quarter, primarily driven by both an increase in net interest margin and a decrease in loan loss provision expense. The bank's net interest margin improved by 19 basis points over the 3(rd) quarter, and provision expense decreased by $200,000.

"In the 4(th) quarter we were pleased not only with improved financial results, but also with the resumption of loan and deposit pipelines that indicate certain sectors of our local economy are moving forward, albeit with changes driven by the pandemic, said Jim Rieniets, President & CEO of INSBANK. "We're cautiously optimistic that lower funding costs and core loan growth are trends that will give us inertia into 2021, as we continue to both build on digital lines of business, and hire more team members for our core, commercial banking units," Rieniets continued.

While core net interest income and operating expenses were consistent with the same quarter in the prior year, earnings were down $722,000, or $0.24 per share a result of less non-interest income and more loan loss provision expense versus that of Q4 2019. For the year the company reported earnings of $0.83 per share versus $1.55 the prior year. Factors contributing to the decline in earnings in 2020 were driven by the pandemic, in the form of the margin-compressing rate shock of March 2020, and a year-long effort to bolster loan loss reserves given the uncertainty of outcomes for business borrowers most affected by the pandemic.

"While the ultimate effects of the pandemic remain unknown, our team has worked diligently with our impacted customers to quantify risks and identify paths forward, including PPP loans and loan modifications, where appropriate," continued Rieniets. "In an industry whose evolution has been accelerated by the pandemic, we're approaching 2021 with optimism given our ability to decrease cost of funding and increase operating leverage with our technology-driven, efficient business model."

Highlights of the quarter and year-ended include:

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.insbanktn.com.

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SOURCE INSBANK

/CONTACT: Mallory Smith, msmith@insbanktn.com

/Web site: https://www.insbank.com

(END) Dow Jones Newswires

February 04, 2021 13:32 ET (18:32 GMT)