Third Quarter Loan Growth Fuels INSBANK Profits

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.  

(PRNewsfoto/INSBANK)

"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

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/third-quarter-loan-growth-fuels-insbank-profits-300960339.html

SOURCE INSBANK

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