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Third Quarter Loan Growth Fuels INSBANK Profits

Nashville-Based Lender Launches Philanthropic Fund


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

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