InsCorp, Inc. Reports Results for 2Q26
InsCorp, Inc. Reports Results for 2Q26
Fri, July 31, 2026 at 10:52 PM UTC
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IBTN reports fully diluted EPS growth of 14% to $0.72 in 2Q26 compared to $0.63 in 1Q26; Declares cash dividend of $0.12 for 3Q26
NASHVILLE, Tenn., July 31, 2026 /PRNewswire/ -- Today, InsCorp, Inc. (OTCQX: IBTN) reported results for the second quarter ("2Q26") ended June 30, 2026. IBTN recorded fully diluted earnings per share ("EPS") of $0.72 in 2Q26 compared to $0.63 in 1Q26 and $0.71 in 2Q25. Balance sheet growth remained solid during the quarter as average earning asset growth of 16% Y/Y reflected average loan growth of 13% Y/Y and average deposit growth of 15% Y/Y. Excluding growth associated with the strategic entry into Murfreesboro in 3Q25, average earning assets, loans, and deposits increased 10%, 8%, and 10% Y/Y, respectively, in 2Q26. InsCorp's ROA of 0.81%, ROATCE of 11.0%, andefficiency ratio of 64.8% in 2Q26 compared to respective levels of 0.72%, 9.8%, and 66.4%, in 1Q26, and 0.91%, 11.1%, and 60.7%, in 2Q25. "The quarter ended with improvement in key metrics including operating leverage, efficiency ratio, and return on equity, while core net interest margin was stable and consistent with our budget," said Jim Rieniets, President and CEO of INSBANK. "Our expectations for the near-term include greater personnel leverage across both production and support teams," Rieniets continued.
New client deposit and loan growth in Murfreesboro remained solid in 2Q26. "We were pleased to see continued growth from our team in Murfreesboro, and excited to share that on a direct expense and revenue basis we reached breakeven in 2Q26," said Peyton Green, CFO, INSBANK. "This accomplishment was achieved in just three quarters and is ahead of our internal projections," Green added. Deposit and loan balances attributed to the Murfreesboro team were $36.3 million and $50.3 million at 2Q26-end compared to $36.2 million and $40.4 million at 1Q26-end. The Murfreesboro expansion benefited EPS by $0.01 in 2Q26 versus ($0.06) in 1Q26 and ($0.15) in 2025.
Average earning asset growth of 16%, or $139 million, Y/Y consisted of average loan growth of 13%, or $107 million, Y/Y and short-term liquidity and securities growth of 37%, or $32 million, Y/Y in 2Q26. The loan yield of 6.54% in 2Q26 compared to 6.53% in 1Q26, which excludes $784,000 of non-accrued interest, prepayment, and late fees received in March, and 6.76% in 2Q25. The yield on securities and short-term liquidity was 4.27%, excluding approximately $75,000 of interest received on the bank's tax refund, and 4.07% in 2Q25. Average deposits increased 15%, or $116 million, Y/Y in 2Q26, which reflected interest bearing deposit growth of 15% Y/Y and noninterest bearing growth of 13% Y/Y in 2Q26. The cost of deposits improved to 3.20% in 2Q26 vs. 3.31% in 1Q26 and 3.50% in 2Q25. The average balance of non-maturity deposits (i.e., noninterest bearing, interest bearing demand, and money market) increased 50% Y/Y and 5% linked-quarter ("LQ") to $445 million, or 49% of average deposits compared to 46% in 1Q26 and 38% in 2Q25. Average CD balance growth of -6% Y/Y and -8% LQ in 2Q26 resulted in a mix of 51% of average deposits, down from 54% a quarter ago and 62% a year ago. INSBANK's loan-to-deposit ratio was 100% versus 96% a quarter ago and 99% a year ago.
Loan growth was 15% Y/Y and 8% linked-quarter annualized ("LQA") in 2Q26 and reflected solid contributions from commercial & industrial ("C&I"), commercial real estate ("CRE"), construction, and home equity ("HELOC") loans. "Although increased payoff activity over the first six months of the year restrained the growth rate, the loan pipeline remained healthy heading into the third quarter and supportive of solid growth in the second half of the year," explained Chad Hankins, Chief Lending Officer. Growth in C&I (19% Y/Y; 5% LQA), CRE (10% Y/Y; 13% LQA), and HELOC (143% Y/Y; 42% LQA), and construction & development (23% Y/Y; 11% LQ), outpaced multifamily (-2% Y/Y; -23% LQ) and consumer (-70% Y/Y; -33% LQA) in 2Q26. Funded balance growth was restrained by loan payoffs of $20 million in 2Q26 and $29 million in 1Q26 vs. $13 million in 4Q25. Medquity's loan balances increased 13% Y/Y and 20% LQA in 2Q26. "Although Medquity's loan originations decreased to $15 million in 2Q26 compared to $38 million in 1Q26, the pipeline remains strong heading into 2H26, and supportive of double digit growth," explained Blake Wilson, President, Medquity Healthcare Banking. Excluding loans related to Medquity (29% of total loans), loan growth was 16% Y/Y and 3% LQA in 2Q26.
Revenue growth of 10% Y/Y reflected net interest income growth of 14% Y/Y in 2Q26. Pre-provision pretax income ("PPNR") growth of -2% Y/Y (+5% LQ) to $2.9 million in 2Q26 reflected expense growth 18% Y/Y due to hiring activity late in 2Q25, which did not materially affect personnel expense in 2Q25, the onboarding of the five-person Murfreesboro team in 2H25, and an additional six FTEs hired in 2Q26. Solid growth in net interest income of $1.0 million Y/Y was partially offset by a drop in noninterest income of $257,000 Y/Y to $337,000 in 2Q26, which reflected a drop in SBIC income vs. 2Q25.
Net interest income increased 14% Y/Y to $8.1 million in 2Q26 versus $7.1 million in 2Q25. The LQ decline in net interest income of $209,000 was due to the inclusion of $803,801 from non-accrued interest recognized on the migration of a loan to performing status in 1Q26 and interest income received on a federal tax refund in 1Q26. Excluding these two items, net interest income grew 8% to $8.1 million in 2Q26 versus $7.5 million in 1Q26. The net interest margin ("NIM") was 3.18% in 2Q26 compared to 3.20% in 2Q25. Adjusted to exclude the non-accrued interest from the nonperforming loan that returned to accruing status and the tax refund in 1Q26, the NIM improved 15 bps LQ in 2Q26.
INSBANK's balance sheet is slightly asset sensitive. Continued improvement in the mix of non-maturity deposits to total deposits was largely responsible for decreased sensitivity on a Y/Y and LQ basis. INSBANK's asset re-pricing mismatch, relative to liability re-pricing, is short-lived and largely resolved within six months of a change in the Fed Funds rate. Assuming no change to the Fed Funds target rate and a static balance sheet, the NIM is projected to gradually increase from the current level.
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Noninterest expense growth of 18% Y/Y reflected an increase in personnel expense of 15% Y/Y in 2Q26. Personnel expense reflected associate growth of eight people, or 11%, Y/Y, and six people, or 8%, in YTD26. Excluding costs related to the Murfreesboro expansion, noninterest expense growth was 12% Y/Y in 2Q26 and 9% Y/Y in 1Q26. Noninterest expense represented 2.06% of average assets in 2Q26 versus 1.99% in 1Q26, 2.11% in 4Q25, and 2.02% in 2Q25; costs associated with the Murfreesboro expansion contributed 10 bp in 2Q26 and 1Q26. Overhead is expected to remain relatively stable on a quarterly basis over 2H26.
Asset quality measures were stable in 2Q26. Net chargeoffs ("NCOs") represented 0.00% of average loans on an annualized basis in 2Q26, 1Q26 and 2Q25. "Measures of asset quality remained stable in the quarter, as evidenced by modest nonperforming asset levels," said Philip Fons, Chief Credit Officer, INSBANK. "While local economic indicators remain healthy, our underwriting practices continue to emphasize stress scenarios to ensure durability through a nationwide credit cycle, which is arguably long overdue," Fons continued. Specifically, nonperforming loans and 90-day past dues ("NPLs") were 0.25% of loans vs. 0.27% a quarter ago and 0.65% a year ago. Loans 30-89 days past due represented 0.28% of loans at 2Q26-end vs. 0.08% a quarter ago and 0.43% a year ago. The allowance for credit losses of 1.25% of loans represented 523% of NPLs+90s vs. 503% a quarter ago and 204% a year ago.
Existing capital levels support solid asset growth. INSBANK remained "well capitalized" from a regulatory perspective with a tier-1 leverage ratio of 10.20%, a common equity tier-1 capital ratio of 11.00%, and a total risk-based capital ratio of 12.19%. InsCorp, Inc.'s tangible common equity ratio was 7.43% as of 2Q26-end versus 7.24% a quarter ago and 8.02% a year ago. Tangible book value per share increased by 4% Y/Y to $26.57, as of June 30, 2026. C&D and CRE balances represented 81% and 314% of total risk-based capital, respectively, versus 70% and 301% a year ago. Accumulated Other Comprehensive Income was ($2.4 million), or 2.2% of bank-level tier-1 capital of $109.8 million.
The Board of Directors approved the payment of a quarterly dividend of $0.12 per common share on September 4, 2026, to shareholders of record on August 14, 2026. The annualized quarterly dividend rate of $0.48 per share represents an increase of 9% compared to dividends of $0.44 per share paid in 2025. Although the Company did not repurchase shares in 1H26, 59,000 shares, or 2.0% of the prior year-end's shares, were repurchased in 2025. The current repurchase program authorizes management to repurchase 100,000 shares, or 3.4% of IBTN's outstanding shares, through January 25, 2028.
About InsCorp, Inc. and INSBANK
Since 2000, INSBANK has offered clients highly personalized services from experienced relationship managers, positioning itself as an innovator by leveraging technology to deliver those services efficiently and conveniently. In addition to its commercial-focused operation, INSBANK has two divisions: Medquity and Finworth. Medquity offers healthcare banking solutions to physicians, partnerships, and practices nationwide. Finworth offers nationally available virtual private client services for interest-bearing deposits. InsCorp, Inc., a Tennessee bank holding company, owns INSBANK. InsCorp, Inc.'s shares are traded on the OTCQX under the ticker symbol IBTN. Headquartered in Nashville at 2106 Crestmoor Road, the bank has offices in Brentwood at 5614 Franklin Pike Circle and in Murfreesboro at 1574 Medical Center Parkway. For more information, please visit www.insbank.com.
InsCorp, Inc.
Consolidated Balance Sheets
(000's)
(Unaudited)
Change
For the period ending:
Y/Y
June 30,2026
December 31,2025
June 30,2025
Assets
Cash and due from banks
-13.0 %
2.4 %
$ 4,900
$ 4,783
$ 5,630
Fed funds sold
-32.5 %
-26.3 %
1,349
1,830
1,999
Interest bearing deposits with banks
-62.9 %
-69.8 %
17,639
58,495
47,594
Investment Securities
72.0 %
28.2 %
100,864
78,684
58,645
Loans, net of unearned income
14.5 %
5.8 %
914,022
863,868
797,935
Allowance for Credit Losses
8.2 %
5.8 %
(11,408)
(10,780)
(10,548)
Net loans
14.6 %
5.8 %
902,614
853,088
787,387
Premises and equipment, net
1.5 %
0.0 %
12,864
12,861
12,672
Accrued interest receivable
12.2 %
6.8 %
4,660
4,364
4,155
Goodwill
0.0 %
0.0 %
1,091
1,091
1,091
Other assets
19.6 %
-7.1 %
33,719
36,281
28,201
Total Assets
14.0 %
2.7 %
$ 1,079,700
$ 1,051,477
$ 947,374
Liabilities
0.99689428
0.95156127
0.985614843
Noninterest bearing deposits
7.4 %
1.6 %
$ 94,680
$ 93,228
$ 88,140
Interest bearing demand deposits
35.0 %
28.5 %
34,526
26,859
25,580
Savings and money market deposits
62.9 %
11.4 %
323,129
290,184
198,316
Time deposits
-6.9 %
-6.8 %
453,091
486,243
486,843
Total deposits
13.3 %
1.0 %
905,426
896,514
798,879
Accrued expenses and other liabilities
8.0 %
0.4 %
10,643
10,596
9,853
Federal Home Loan Bank Advances
61.8 %
41.0 %
55,000
39,000
34,000
Subordinated debentures
-2.9 %
0.0 %
9,950
9,950
10,250
Other borrowings
0.1 %
0.1 %
17,404
17,393
17,382
Total Liabilities
14.7 %
2.6 %
998,423
973,453
870,364
Equity
Common stock
2.9 %
2.0 %
29,396
28,833
28,564
Retained earnings
6.4 %
7.9 %
50,246
46,581
47,234
Accumulated other comprehensive income (loss)
-4.4 %
36.8 %
(2,427)
(1,774)
(2,538)
Net Income
8.3 %
-7.3 %
4,062
4,384
3,750
Total Equity
5.5 %
4.2 %
81,277
78,024
77,010
Total Liabilities & Equity
14.0 %
2.7 %
$ 1,079,700
$ 1,051,477
$ 947,374
Tangible Book Value per Share
3.8 %
2.7 %
$ 26.57
$ 25.87
$ 25.60
InsCorp, Inc.
Consolidated Statements of Income
(000's)
(Unaudited)
Change vs.
For the Three Months Ended
Six Months Ended
2Q25
1Q26
June 30,2026
March 31,2026
June 30,2025
June 30,2026
June 30,2025
Interest Income
12.5 %
-1.3 %
$ 16,259
$ 16,481
$ 14,447
$ 32,740
$ 28,039
Interest Expense
10.8 %
-0.2 %
8,118
8,131
7,329
16,249
14,496
Net Interest Income
14.4 %
-2.5 %
8,141
8,350
7,118
16,491
13,543
Provision for Credit Losses
-32.4 %
-35.4 %
257
398
380
655
643
Noninterest Income
Deposit Service Charges
40.5 %
10.3 %
118
107
84
224
168
Bank Owned Life Insurance
5.8 %
2.8 %
110
107
104
217
204
Gains (losses), net
-55.6 %
-108.2 %
(8)
98
(18)
90
(13)
Other
-72.4 %
-118.9 %
117
(619)
424
(501)
765
Total Noninterest Income
-43.3 %
-209.8 %
337
(307)
594
30
1,124
Noninterest Expense
Salaries and Benefits
14.6 %
2.1 %
3,616
3,542
3,154
7,158
6,218
Occupancy and Equipment
39.3 %
-1.6 %
379
385
272
764
538
Data Processing
41.5 %
-11.0 %
382
429
270
811
583
Marketing and Advertising
-7.5 %
30.5 %
124
95
134
219
251
Other
19.2 %
22.3 %
1,031
843
865
1,875
1,703
Total Noninterest Expense
17.8 %
4.5 %
5,532
5,294
4,695
10,827
9,293
Income Before Income Taxes
2.0 %
14.4 %
2,689
2,351
2,637
5,039
4,731
Income Tax Expense
-4.6 %
11.5 %
$ 515
$ 462
$ 540
$ 977
$ 981
Net Income
3.7 %
15.1 %
$ 2,174
$ 1,889
$ 2,097
$ 4,062
$ 3,750
Basic Earnings per Share
2.7 %
15.4 %
$ 0.75
$ 0.65
$ 0.73
$ 1.40
$ 1.30
Diluted Earnings per Share
1.4 %
14.3 %
$ 0.72
$ 0.63
$ 0.71
$ 1.35
$ 1.26
Change vs.
For the Three Months Ended
Six Months Ended
InsCorp, Inc.
2Q25
1Q26
June 30,2026
March 31,2026
June 30,2025
June 30,2026
June 30,2025
-10 bps
9 bps
0.81 %
0.72 %
0.91 %
0.77 %
0.83 %
-13 bps
117 bps
10.85 %
9.68 %
10.98 %
10.24 %
9.91 %
-14 bps
119 bps
10.97 %
9.79 %
11.11 %
5.15 %
4.98 %
Net Interest Margin
-2 bps
-16 bps
3.18 %
3.34 %
3.20 %
3.26 %
3.10 %
Efficiency
410 bps
-152 bps
64.83 %
66.35 %
60.73 %
65.56 %
63.31 %
Revenue / Employee
-4.4 %
-1.4 %
422
428
442
211
211
Expense / Employee
2.5 %
-2.2 %
276
282
269
138
134
Assets / Employee
-0.9 %
-5.3 %
13,412
14,162
13,534
-12 bps
9 bps
0.99 %
0.90 %
1.11 %
0.94 %
1.03 %
-17 bps
84 bps
10.00 %
9.16 %
10.17 %
9.56 %
9.32 %
Net Interest Margin
-5 bps
-15 bps
3.34 %
3.49 %
3.39 %
3.41 %
3.29 %
Capital Ratios
Tier-1 Leverage
-108 bps
14 bps
10.20 %
10.06 %
11.28 %
Common Equity Tier-1
-101 bps
-1 bps
11.00 %
11.01 %
12.01 %
Total Risk-Based Capital
-107 bps
-1 bps
12.19 %
12.20 %
13.26 %
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