1. IBTN reported Q4 2024 net income of $1.946M, up from Q3. 2. EPS declined 13% in 2024 due to increased overhead and provision costs. 3. Loan origination improved significantly to $99M, showing strong growth potential. 4. Dividend increased by 10%, signaling confidence in financial stability. 5. Asset quality remained strong, with NPLs decreasing to 0.70% of loans.
Improved loan origination and confidence with higher dividends may attract investors.
Strong quarterly performance and a dividend increase are likely to positively influence stock price.
Positive financial indicators likely to boost investor sentiment in the upcoming quarter.
Today InsCorp, Inc. (OTCQX: IBTN) reported net income of $1,946,000, or $0.66 per share, in the fourth quarter of 2024 ("4Q24") versus $1,841,000, or $0.64 per share, in 3Q24 and respective levels of $2,267,000 and $0.79 in 4Q23. "Our team closed the year meeting a number of objectives, achieving growth goals as well as recruiting new personnel to support longer-term strategic plans," said Jim Rieniets, President & CEO of INSBANK.
"As we embark on the new year, we have the talent in place to both set the course for crossing the billion-dollar mark in the near future, and to deploy technologies necessary for relevancy in a rapidly changing industry." InsCorp generated a ROA of 0.88%, ROATCE of 10.5% in 4Q24, and an efficiency ratio of 60.8% versus 1.08%, 13.5%, and 59.3%, respectively, in 4Q23.
EPS declined 13% to $2.54 in 2024 compared to $2.92 in 2023. The decline was primarily due to: (1) an increase in overhead of $1,143,000, or 8% Y/Y, (2) an increase in provision of $386,000, or 123% Y/Y, and (3) a decrease in net interest income of $355,000, or -1% Y/Y, which was offset in part by (4) growth in noninterest income of $401,000, or 20% Y/Y, in 2024.
Personnel growth of $924,000, or 10% Y/Y, represented 80% of expense growth in 2024. Net interest income was adversely affected by margin pressure of 26 bps to 2.93%, which more than offset growth in average earning assets of 6% Y/Y in 2024.
Bank-wide loan origination momentum remained strong at $99 million in 4Q24 compared to $48 million in 3Q24 and $48 million in 4Q23. Origination volume in the quarter reflected a more even distribution, as commercial and industrial ("C&I") and Medquity loan originations represented 55% of originations in 4Q24 compared to 43% for commercial real estate ("CRE") and 2% for consumer.
Management remains optimistic that loan growth will remain solid in the first half of 2025, given the loan pipeline of $111 million at year-end compared to $124 million a quarter ago, $53 million a year ago, and a low of $19 million at 3Q23-end.
Asset quality measures remain healthy. Net charge-offs represented 0.00% of average loans in 4Q24 compared to (0.01%) in 3Q24 and 0.03% in 4Q24. Provision for credit losses totaled $339,000 in 4Q24 versus $262,000 in 3Q24 and $150,000 in 4Q23. The allowance for credit losses of 1.29% of loans (-5 bps Y/Y) represented 186% of nonperforming loans.
The allowance for unfunded commitments of $385,000 represented 0.34% of unfunded loans. Total unfunded commitments increased 11% Y/Y and 10% LQ to $102 million.
The Board of Directors has approved the payment of a quarterly dividend of $0.11 per common share on March 7, 2025, to shareholders of record on February 14, 2025. The annualized quarterly dividend rate of $0.44 per share represents an increase of 10% compared to dividends of $0.40 per share in 2024.
The Company repurchased 23,000 shares during the quarter and a total of 32,000 shares in 2024, leaving 93,000 shares, or 3.2% of the Company's outstanding shares, available for repurchase under the existing authorization through January 27, 2026.
Since 2000, INSBANK has offered its clients highly personalized services provided by experienced relationship managers while positioning itself as an innovator, utilizing technologies to deliver those services efficiently and conveniently. INSBANK operates three divisions: Medquity, TMA Medical Banking, and Finworth.
For more information, please visit www.insbank.com.