INSBANK Parent, InsCorp, Inc., Reports Quarterly Earnings

NASHVILLE, Tenn., Aug. 12, 2020 /PRNewswire/ -- InsCorp, Inc., parent company of INSBANK (OTCQX: IBTN), today reported 2nd quarter earnings of $548,000, or $0.19 per share. Quarterly earnings for the Nashville-based lender were down $420,000, or $0.14 per share, versus those of the same period the prior year. Contributing to this decline, the bank added $800,000 to its provision for loan loss reserves during the quarter, compared to $175,000 in the same period the prior year. In addition to the reserve expense, a decline in net interest margin contributed to reduced operating earnings. Year-to-date earnings totaled $1,281,000, or $0.44 per share.

"While the latter part of the quarter saw some affected business clients resume operations, other industries remain muted while the pandemic prolongs," said Jim Rieniets, President & CEO of INSBANK. "Until such time as there is clarity around the virus, the duration of its impact on the economy, and the extent of legislative and regulatory response to this emerging crisis, we plan to prudently add to reserves while we work with borrowers on a case-by-case basis to navigate dynamic challenges."

As previously reported, roughly 20% of the Paycheck Protection Program (PPP) Loans originated by INSBANK were provided to new business customers. While PPP loan disbursements also contributed to aggregate deposit growth, new commercial deposit account relationships helped fuel $22.9 million of deposit growth during the quarter.

"Despite the challenges facing the banking industry, our team has remained focused on executing our plans for core deposit growth and expansion of business lines, a couple of which are fintech ventures," continued Rieniets. "In many ways this pandemic will challenge traditional banking, and those financial institutions, like INSBANK, with forward-looking business models and cultures should emerge with a competitive advantage."

Highlights of the quarter included:

• Yield on assets was 4.38% for the three months ended June 30, 2020 compared to 5.03% for the same period in 2019.
• Cost of interest-bearing funding was 1.48% for the three months ended June 30, 2020 decreasing from 1.78% for the same period in 2019.
• Efficiency ratio was 59.6% at June 30, 2020, comparing favorably to the bank's FDIC peer group average of 62.8%.
• Non-Interest Expense to Total Assets was 1.78% for the three months ended June 30, 2020, slightly lower than 1.86% for the same period in 2019 and compared favorably to the bank's FDIC peer group average of 2.65%.
• Assets per employee remained strong at $12.86 million, compared to the FDIC peer group of $6.20 million.
• Annualized net charge-offs to average loans were 0.00% for the three months ended June 30, 2020 compared to 0.06% for the same period in 2019.
• The allowance for loan and lease losses was 1.30%, slightly higher than the bank's FDIC peer group average of 1.25%.
• Annualized return on tangible common equity for the second quarter was 5.18%
• Tangible book value increased $0.21 to $16.85 during the quarter by virtue of retained earnings and an increase in accumulated other comprehensive income.

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 and Medquity are both divisions of INSBANK.  TMA Medical Banking provides banking services to members of the Tennessee Medical Association, while Medquity offers healthcare banking solutions to individuals beyond the scope of Tennessee, whether they are still in residency, practicing or entering retirement. 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.

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SOURCE INSBANK