INSBANK Parent Reports Record Annual Profits

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NASHVILLE, Tenn., Jan. 27, 2020 /PRNewswire/ -- InsCorp IBTN, parent company of INSBANK, reported fourth quarter profits of $1,531,000, or $0.53 per share. During the quarter, loans grew at an annualized rate of 16%, while over the past twelve months the bank's loan portfolio had increased $32 million, or more than 7%. For the year total deposits increased 6%, in parallel with earning assets. Overall balance sheet growth provided operating leverage which resulted in an annual profit of $4,527,000, or $1.55 per share.  

(PRNewsfoto/INSBANK)

"We're proud of our team's accomplishments in 2019 given the headwind of a flat yield curve and an attractive market which finds out-of-state banks offering questionable pricing and credit terms to gain market share," said Jim Rieniets, INSBANK President & CEO. "Sticking to fundamentals, delivering quality service, and innovating to meet the needs of our clients will continue to be our game plan," Rieniets added.       

Year-to-date operating income of $6,691,000 increased 13% over the prior year. Net income after taxes for the same period increased slightly from $4.3 million to $4.5 million, due to the incremental financing cost of $15 million in subordinated debt issued a year ago to support continued growth. Highlights of INBANK's performance included the following:

  • Quarterly net interest margin was 3.23%, a decrease of 4 basis points from the prior quarter.
  • A focus on treasury management products enabled a 45% growth in annual treasury service revenues.
  • Efficiency ratio improved to 56%, comparing favorably to the bank's FDIC peer group.
  • Non-interest expense was 1.89% of assets, improving from 2.26% the prior year.
  • Return on assets at the bank-level increased to 1.04% from 1.00% the prior year.
  • Non-performing assets increased to 0.66%, which was near the peer average of 0.62% as of the most recent quarterly data available.
  • Tangible book value increased to $16.32, while book value was $16.69.

The bank also announced the impending launch of a web-based, medical student loan refinance program, through a newly created business unit carrying the name "Medquity." "This began as an effort to serve the needs of young physicians that are members of the Tennessee Medical Association, with which the bank maintains a marketing agreement," said Blake Wilson, Division Head of TMA Medical Banking, a division of INSBANK. "We created the Medquity brand as this program will ultimately extend beyond the boundaries of Tennessee and the TMA, and it will provide a platform for other healthcare focused initiatives in the future," Wilson added.

"We're excited to be one of the few community banks that has created a technology-driven business unit to compete in the fintech space," said Jim Rieniets. "We believe that doing so in the physician niche vertical where we have a core competency will be good for customers and our shareholders."

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)














December 31,


December 31,






2019


2018

Assets








Cash and Cash Equivalents



$                          5,342


$                          5,081

Interest Bearing Deposits



27,417


25,740

Securities





20,996


22,874

Loans Held for Sale




-


531









Loans





469,172


436,354

  Allowance for Loan Losses



(5,380)


(4,831)

Net Loans





463,792


431,523









Premises and Equipment, net



13,982


14,245

Bank Owned Life Insurance



9,865


9,612

Restricted Equity Securities



5,866


4,454

Goodwill and Related Intangibles, net


1,091


1,091

Other Assets




5,023


3,692









  Total Assets




$                      553,374


$                      518,843









Liabilities and Shareholders' Equity





Liabilities








  Deposits









Non-interest-bearing



$                        34,854


$                        33,832


Interest-bearing



402,118


378,349


Total Deposits



436,972


412,181









  Federal Home Loan Bank Advances


49,000


45,000

  Subordinated Debentures



15,000


15,000

  Other Liabilities




3,404


2,353

Total Liabilities




504,376


474,534









Shareholders' Equity








Common Stock



30,993


30,655


Accumulated Retained Earnings


17,944


14,005


Accumulated Other Comprehensive Income

61


(351)


Total Stockholders' Equity


48,998


44,309

Total Liabilities & Shareholders' Equity


$                      553,374


$                      518,843









Tangible Book Value




$                          16.32


$                          14.85

 

InsCorp, Inc.

Consolidated Statements of Income

(000's)

(Unaudited)














Twelve Months Ended


Twelve Months Ended






December 31, 2019


December 31, 2018









Net Interest Income




$                        16,069


$                        15,657

Provision for Loan Losses



725


905

Non-Interest Income








Service Charges on Deposit Accounts

154


110


Residential Mortgage Services

-


1,251


Loan Sale



384


-


Bank Owned Life Insurance


253


251


Other




605


450

Non-Interest Expense








Salaries and Benefits



6,023


6,366


Occupancy and equipment


1,160


1,108


Data Processing



499


504


Marketing and Advertising


379


449


Other




1,988


2,462

Net income from Operations



6,691


5,925









Holding Company Interest Expense


(956)


(348)









Income Tax Expense




(1,208)


(1,244)

Net Income




$                          4,527


$                          4,333









Return on Weighted Average Common Shares

$                            1.55


$                            1.49

 

SOURCE INSBANK

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