INSBANK Reports Record Loan Growth in 4Q24 and InsCorp, Inc. Increases Quarterly Cash Dividend

INSBANK, a leading financial institution, has reported record loan growth in the fourth quarter of 2024, marking a significant milestone in its strategic focus on commercial lending, healthcare banking, and commercial deposits and related treasury services. The bank's strong performance is a testament to its commitment to these key areas, which have contributed to its overall success.

In the fourth quarter of 2024, INSBANK's loan origination momentum remained robust, with commercial bankers originating $99 million of loan commitments. This figure represents a more even distribution of loan originations across different segments, with commercial and industrial ("C&I") and Medquity loan originations accounting for 55% of originations. This growth is a clear indication of the bank's success in its strategic focus on commercial lending.

INSBANK's loan growth has had a positive impact on its asset quality, with strong metrics such as 30-day past due loans and nonperforming loans representing 0.03% and 0.16% of loans, respectively. The bank's ability to manage risks associated with this growth is evident in its de minimis charge-offs and return to pre-pandemic levels for the aggregate level of watch list loans. This demonstrates INSBANK's commitment to maintaining a strong focus on credit quality and risk management.

The bank's strategic focus on healthcare banking, through its Medquity business, has also contributed to its overall performance. Medquity reported loan growth of 15% year-over-year (YoY) and 22% linked-quarter annualized (LQA) in the fourth quarter of 2024. Despite a slight decline in the healthcare segment's loan balance linked-quarter (LQ), Medquity's origination and pipeline activity remained strong, suggesting solid growth into 2025.

INSBANK's commercial deposits and related treasury services have also grown significantly, with active operating accounts growing 6% for the year and treasury services fee income growing 20%. The bank's ability to garner new relationship deposits with virtually all new loans further demonstrates the success of its focus on commercial deposits and related treasury services.

INSBANK's record loan growth in the fourth quarter of 2024 is a clear indication of the bank's success in its strategic focus on commercial lending, healthcare banking, and commercial deposits and related treasury services. The bank's strong performance in managing risks associated with this growth, as well as its commitment to maintaining a strong focus on credit quality and risk management, is a testament to its dedication to these key areas. As INSBANK continues to execute on its strategic plans and adapt to changes in the industry and regulatory environment, it is well-positioned to sustain this growth in the long term.