NASHVILLE, Tenn., Nov. 18, 2019 /PRNewswire/ -- InsCorp 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 10th 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 | |||
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SOURCE INSBANK
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