InsCorp quarterly earnings reflect benefits of balance sheet strategies

0

NashvilleA grassroots lender increases its half-yearly dividend by 25%

NASHVILLE, Tenn., May 3, 2022 /PRNewswire/ — InsCorp, the parent company of INSBANK (OTCQX: IBTN) today announced earnings of $3,204,000or $1.12 per share, an increase of 149% compared to the same quarter of the previous year. At the bank level, net interest income was $5,078,000, an increase of 15% over the previous year. Pre-tax operating profit was $1,973,000an augmentation of $489,000 in Q1 2021. In addition to operating income, realized and unrealized gains on interest rate caps of $1,887,000net of tax, were a driver of earnings, which was a record for the company in a single quarter.

“During the pandemic, we executed hedging strategies to protect margin from increased volatility in 2021 as we reprice maturing deposits,” said Jim Rieniets, President and CEO of INSBANK. “Fortunately, these liabilities were repriced prior to the recent volatility seen in the first quarter of this year, which provided an opportunity to enhance our capital base with gains on these interest rate caps,” said Rieniets continued.

Base deposits increased by $27,000,000 during the quarter to $511,000,000while core lending (excluding Paycheck Protection Program lending) increased $4,500,000. Total new loan commitments entered into during the quarter were approximately $40,000,000while funding under these commitments was approximately $25,000,000. Net loan growth was driven by repayments primarily from customers selling commercial real estate and other assets. “While net loan growth was ultimately weaker than expected, our loan portfolio both expanded and grew during the quarter,” Rieniets said. “Activity in our market remains very vibrant and our team is busy managing the pipeline of opportunities before us, both in our core commercial banking unit and in our Medquity healthcare silos,” continued Nothings.

The Board of Directors also recently approved the payment of a semi-annual dividend. Registered shareholders of InsCorp as of May 20, 2022will receive a $0.15 dividend payable on June 10, 2022. This is a 25% increase over the company’s last semi-annual dividend. “With the earnings trajectory our team has established, we are pleased to be able to further improve our total shareholder return with an increased dividend,” said Michael QuallsPresident of InsCorp.

Quarterly and year-over-year highlights include

  • Total assets increased $88 million i.e. 13.9% at March 31, 2022 compared to March 31, 2021.
  • Non-interest bearing deposits increased $11.3 million i.e. 15.6% over the 12 months ended March 31, 2022.
  • Deferred loan fees for PPP loans are approximately $185,000 on March 31, 2022.
  • Non-interest expense to total average assets was 1.79% for the quarter ended March 31, 2022slightly higher than 1.70% for the same period in 2021 and compares favorably to the bank’s FDIC peer group average of 2.32%.
  • The cost of all interest bearing financing was 0.69% for the three months ended March 31, 2022 down from 1.33% for the same period in 2021.
  • Assets per employee remained high at $15.05 millioncompared to the FDIC peer group of $6.91 million.
  • The bank’s Tier 1 capital ratio was 12.27%, while total risk capital was 13.52%.
  • The provision for loan and lease losses was 1.50% excluding PPP loan balances.
  • Earnings per share for the first quarter of 2022 were $1.12.
  • Tangible book value brought to $19.89 on March 31, 2022 from $17.69 to March 31, 2021.
  • The percentage of delinquent and unaccounted for loans to gross loans was 0.47%, which compares favorably to the comparison of 0.76%.
  • There was $23,000 in net recoveries for the quarter ended March 31, 2022.
  • Accumulated other comprehensive income (AOCI) reflects a loss on the securities portfolio offset by gains on interest rate swaps held by the bank for interest rate risk purposes, which resulted in a 0.9% decrease in AOCI for the quarter ended March 31, 2022.

About INSBANK

Since 2000, INSBANK has been offering its clients a highly personalized service provided by experienced relationship managers, while positioning itself as an innovator, using technologies to provide these services in an efficient and convenient manner. In addition to its business activities, INSBANK operates three divisions, Medquity, TMA Medical Banking and INSBANK Online. Medquity provides healthcare banking solutions to individuals nationwide whether still in residence, practicing, or retired, while TMA Medical Banking provides banking services specifically to members of the Tennessee Medical Association. INSBANK Online offers virtual private client services available nationwide 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 at Brentwood at 5614 Franklin Pike Circle. For more information, visit www.insbank.com

InsCorp, Inc.

Consolidated balance sheets

(in thousands)

(unaudited)
















March, 31st,


The 31st of December,


March, 31st,






2022


2021


2021

Assets









Cash and cash equivalents


$17,258


$16,680


$15,561

Interest-bearing deposits



90 288


73,746


32,268

Securities




27,545


21,606


12,747











Loans




552 473


551 463


543 178

Allowance for loan losses


(8,193)


(8,025)


(7,515)

Net loans




544,280


543 438


535,663











Premises and equipment, net


13,275


13,345


13,519

Bank-owned life insurance


13,477


13,398


10,176

Restricted equity securities


9,225


9,054


8,147

Goodwill and related intangible assets, net


1,091


1,091


1,091

other assets




8,490


8,247


7,549











Total assets




$724,929


$700,605


$636,721











Liabilities and equity






Passives









Deposits










Not bearing interest



$84,190


$79,929


$72,858


Interest bearing



529,316


504 781


432 295


Total deposits



613 506


584 710


505 153











Federal bank advances on home loans


30,000


32,000


45,000

Paycheck Protection Program Liquidity Fund

322


1,404


15,485

Subordinated debentures



17,500


17,500


15,000

Federal funds purchased



4,000


Notes payable



2,500


2,500


Other liabilities



2,885


3,278


3,117

Total responsibilities




666 713


645 392


583,755











Equity









Ordinary actions



32,241


32,087


31,325


Own shares



(3,150)


(3,150)


(681)


Accumulated retained earnings


28,543


25,689


21,652


Accumulated other comprehensive income

582


587


670


Full shareholder equity


58,216


55,213


52,966

Total Liabilities and Equity

$724,929


$700,605


$636,721











Tangible book value



$19.89


$18.90


$17.69

InsCorp, Inc.

Consolidated Statements of Income

(in thousands)

(Unaudited)
















Three months completed


Twelve month period ended


Three months completed






March 31, 2022


December 31, 2021


March 31, 2021











interest income



$6,013


$24,901


$5,876

Interest charges



935


4,690


1,431

Net interest income



5,078


20 211


4,445

Allowance for loan losses



145


1,850


650

Non-interest income









Service charges on deposit accounts

57


240


59


Bank-owned life insurance


79


283


60


Gain on security sales



62


62


Other




221


1,114


237

Non-interest charges









Salaries and benefits


2,035


7,332


1,654


Occupancy and equipment


433


1,347


325


Data processing



154


597


147


Marketing and Advertising


128


574


100


Other




567


2,373


503

Net operating income


1,973


7,837


1,484











Gain in interest rate hedges


2,516


748


443

Interest expense – Subordinated debt

233


992


239

income before taxes


4,256


7,593


1,688

income tax expense



(1,052)


(1,564)


(398)

Net revenue




$3,204


$6,029


$1,290











Weighted average common stock yield

$1.12


$2.06


$0.44

SOURCE IN BANK

Share.

About Author

Comments are closed.