Quarterly Profits Increase for INSBANK Parent, InsCorp, Inc.

NASHVILLE, Tenn., Feb. 4, 2021 /PRNewswire/ -- Inscorp, Inc., parent company of INSBANK, 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:

• 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.

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