InsCorp, Inc. Reports Results for 2Q26

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.

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.

SOURCE INSBANK