INSBANK Parent, InsCorp, Inc., Reports 2nd Quarter Earnings Growth

Rhea-AI Summary

InsCorp, parent company of INSBANK (OTCQX:IBTN), reported second quarter earnings of $1,369,000, or $0.47 per share, marking a substantial increase from $549,000 and $0.19 per share during the same period in 2020. Year-to-date earnings reached $2,659,000, a 107.6% increase from last year. Key highlights include an 11.2% growth in total assets, improved net interest margin, and a favorable efficiency ratio of 51.1%. The bank generated $19 million in loans through the government’s SBA-PPP program and reduced non-interest expenses compared to peers.

Positive

• Second quarter earnings increased by 149% year-over-year, reaching $1,369,000.
• Year-to-date earnings of $2,659,000 represent a 107.6% increase over the prior year.
• Total assets grew by $66.5 million (11.2%) year-over-year.
• Non-interest bearing deposits increased by $14.6 million (21.9%) over the past year.
• Efficiency ratio improved to 51.1%, better than the peer average of 60.7%.
• Cost of interest-bearing funding decreased to 0.98% from 1.63% year-over-year.

Negative

• None.

NASHVILLE, Tenn., July 28, 2021 /PRNewswire/ -- InsCorp, parent company to INSBANK (OTCQX:IBTN), today reported second quarter earnings of $1,369,000, or $0.47 per share compared to $549,000 and $.19 per share for the same period in 2020. Year-to-date earnings were $2,659,000, or $0.91 per share, which was a 107.6% increase over the prior year of $1,281,000 for the six months ended June 30, 2020. Net interest margin improved for the third consecutive quarter, as repricing liabilities drove a decrease in the bank's cost of funding. "Our team made steady progress on both short and long-term goals this quarter," said Jim Rieniets, President and CEO of INSBANK. "Growth, margin enhancement, and reduction in non-performing assets all contributed to a double-digit return for our shareholders."

Driven by a variety of on-going technology initiatives, in the second quarter INSBANK also surpassed some of its own peak performance ratios. On a year-to-date basis the bank's efficiency ratio improved to 51%, while assets per employee continued to grow, eclipsing $14 million for the first time ever. "Fintech is rapidly changing the banking landscape, as market share and capital are migrating to institutions capable of both meeting the customer digitally as well as employing technology to operate efficiently," said Rieniets. "Driven by a culture that embraces continuous improvement, our team is meeting the technology challenge as evidenced by these operating metrics," Rieniets continued.   

Highlights of the quarter and year-over-year include (Peer data is as of March 31, 2021):

• Total assets grew $66.5 million year over year or 11.2% as of June 30, 2021.
• Non-interest bearing deposits grew $14.6 million or 21.9% during the 12 months ended June 30, 2021.
• Loans generated through the government's SBA-PPP Phase II program totaled $19 million.
• Deferred loan fees related to the PPP loans is approximately $770,000 at June 30, 2021.
• Efficiency ratio was 51.1% at June 30, 2021, comparing favorably to the bank's FDIC peer group average of 60.7%.
• Non-Interest Expense to Total Average Assets was 1.64% for the six months ended June 30, 2021, slightly lower than 1.78% for the same period in 2020 and compared favorably to the bank's FDIC peer group average of 2.43%.
• Cost of all interest-bearing funding was .98% for the three months ended June 30, 2021 decreasing from 1.63% for the same period in 2020.
• Assets per employee remained strong at $14.3 million, compared to the FDIC peer group of $6.6 million.
• The bank's tier 1 capital ratio was 12.1%, while total risk-based capital was 13.3%.
• The allowance for loan and lease losses was 1.45% exclusive of PPP loan balances and 1.35% including PPP balances, slightly lower than the bank's FDIC peer group average of 1.37%.
• Annualized return on tangible common equity for the year was 10.09% for the six months ended June 30, 2021
• Tangible book value increased $0.80 to $18.04 during the quarter primarily by virtue of retained earnings less a dividend of $.12 per share.

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 and Medquity are both divisions of INSBANK.  TMA Medical Banking provides banking services to members of the Tennessee Medical Association, while Medquity offers healthcare banking solutions to individuals beyond the scope of Tennessee, whether they are still in residency, practicing or entering retirement. 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.insbank.com

InsCorp, Inc.
Consolidated Balance Sheets
(000's)
(unaudited)
		June 30,		December 31,		June 30,
		2021		2020		2020
Assets
Cash and Cash Equivalents		$                       15,785		$                                8,219		$                         4,986
Interest Bearing Deposits		57,637		33,356		32,297
Securities		16,093		17,039		23,508
Loans		534,574		525,235		500,025
Allowance for Loan Losses		(7,225)		(7,365)		(6,480)
Net Loans		527,349		517,870		493,545
Premises and Equipment, net		13,437		13,630		13,831
Bank Owned Life Insurance		12,486		10,115		9,989
Restricted Equity Securities		8,630		7,612		6,299
Goodwill and Related Intangibles, net		1,091		1,091		1,091
Other Assets		7,640		8,298		8,090
Total Assets		$                     660,148		$                            617,230		$                     593,636
Liabilities and Shareholders' Equity
Liabilities
Deposits
	Non-interest-bearing	$                       81,376		$                              52,665		$                       66,773
	Interest-bearing	452,422		417,731		397,941
	Total Deposits	533,798		470,396		464,714
Federal Home Loan Bank Advances		40,000		50,000		49,000
Paycheck Protection Program Liquidity Fund		14,070		18,412		8,400
Subordinated Debentures		15,000		15,000		15,000
Federal Funds Purchased		-		7,000		-
Other Liabilities		3,190		5,328		6,079
Total Liabilities		606,058		566,136		543,193
Shareholders' Equity
	Common Stock	31,585		31,190		31,155
	Treasury Stock	(663)		(681)		-
	Accumulated Retained Earnings	22,666		20,377		18,948
	Accumulated Other Comprehensive Income	502		208		340
	Total Stockholders' Equity	54,090		51,094		50,443
Total Liabilities & Shareholders' Equity		$                     660,148		$                            617,230		$                     593,636
Tangible Book Value		$                         18.04		$                                17.24		$                         16.85

 

InsCorp, Inc.
Consolidated Statements of Income
(000's)
(Unaudited)
		Six Months Ended		Twelve Months Ended		Six Months Ended
		June 30, 2021		December 31, 2020		June 30, 2021
Interest Income		$                       11,998		$                              22,694		$                       11,780
Interest Expense		2,672		7,221		3,975
Net Interest Income		9,326		15,473		7,805
Provision for Loan Losses		1,025		2,400		1,100
Non-Interest Income
	Service Charges on Deposit Accounts	119		212		103
	Bank Owned Life Insurance	121		251		124
	Gain on Interest Rate Hedges and Security sales	307		-		-
	Other	583		705		383
Non-Interest Expense
	Salaries and Benefits	3,356		6,200		3,137
	Occupancy and equipment	644		1,233		584
	Data Processing	293		553		270
	Marketing and Advertising	208		349		152
	Other	1,011		1,843		983
Net income from Operations		3,919		4,063		2,189
Interest Expense-Subordinated Debt		478		956		478
Income Before Income Taxes		3,441		3,107		1,711
Income Tax Expense		(782)		(674)		(430)
Net Income		$                         2,659		$                                2,433		$                         1,281
Return on Weighted Average Common Shares		$                            0.91		$                                   0.83		$                            0.44

 

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SOURCE INSBANK

FAQ

What were INSBANK's second quarter earnings for 2021?

INSBANK reported second quarter earnings of $1,369,000, or $0.47 per share.

How much did INSBANK's total assets grow in the second quarter of 2021?

Total assets grew by $66.5 million, or 11.2%, year-over-year.

What is the efficiency ratio of INSBANK for the second quarter of 2021?

INSBANK's efficiency ratio improved to 51.1%, which is better than the FDIC peer group average.

What was the year-to-date earnings of INSBANK for 2021?

Year-to-date earnings were $2,659,000, reflecting a 107.6% increase from the previous year.

How much did INSBANK generate in loans through the SBA-PPP program?

INSBANK generated $19 million in loans through the government's SBA-PPP Phase II program.