InsCorp quarterly earnings reflect benefits of balance sheet strategies

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.

(PRNewsfoto/INSBANK)

“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 pipeline 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

Quote

View original content to download multimedia: https://www.prnewswire.com/news-releases/inscorp-quarterly-profits-reflect-benefits-of-balance-sheet-strategies-301539193.html

SOURCE IN BANK

Related posts:

Related Articles