INSBANK Parent InsCorp Reports Second Quarter Profits

Nashville Lender Produces Consistent Operating Income and Stable Margin

NASHVILLE, Tenn., July 24, 2023 /PRNewswire/ — Today InsCorp (OTCQX: IBTN), reported a second quarter net profit of $1,776,000 or, $0.62 per share, increasing year-to-date profits to $3,826,000, or $1.33 per share. Net interest income for the quarter totaled $6,234,000, increasing an annualized 7.1% over the most recent quarter. Year-to-date net interest income of $12,359,000 represented a 12.8% increase over the same period for the prior year. Pre-tax operating income for the second quarter, excluding a $306,000 mark-to-market adjustment on hedging activities, was $3,026,000, and represented an increase over the first quarter of 2023. At the bank level, net interest margin for the second quarter was 3.38%, consistent with the first quarter measure of 3.37%. Yield on earning assets increased 29 basis points to 6.11%, while cost of funding increased 45 basis points to 3.05%. “Given historical industry measures of funding costs relative to Fed Funds, and the ease with which depositors can open accounts on their smartphones, we assume that the industry drifts toward commoditization of interest-bearing deposits as rates rise and stay at those levels,” said Jim Rieniets, President and CEO of INSBANK. “For these reasons we have historically tried to minimize exposure to long-dated assets and focused on highly efficient operations to sustain earnings as long-term trends will see margin compress, regardless of rate cycles,” Rieniets continued.

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