InsCorp, Inc. Reports Results for 3Q26

IBTN reports Revenue growth of 12% Y/Y for 3Q26; Declares cash dividend of $0.12 for 4Q26

, /PRNewswire/ — Today, InsCorp, Inc. (OTCQX: IBTN) reported results for the third quarter (“3Q26”) ended September 30, 2026. Fully diluted earnings per share (“EPS”) of $0.73 in 3Q26 compared to $0.72 in 2Q26 and $0.76 in 3Q25; excluding the benefit associated with a federal tax credit purchase in 3Q25, EPS was $0.66 in 3Q25. Balance sheet growth remained solid during the quarter as average earning asset growth of 13% Y/Y reflected average loan growth of 14% Y/Y and average deposit growth of 9% Y/Y. Excluding growth associated with the strategic entry into Murfreesboro in 3Q25, average earning assets, loans, and deposits increased 8%, 7%, and 4% Y/Y, respectively, in 3Q26. InsCorp’s ROA of 0.80%, ROATCE of 10.78%, and efficiency ratio of 64.44% in 3Q26 compared to respective levels of 0.81%, 10.97%, and 64.83%, in 2Q26, and 0.93%, 11.29%, and 64.72%, in 3Q25. “While volatility seems to define financial markets this year, we’re pleased to report the bank continues to experience steady growth, margin stability, and healthy measures of risk metrics—the boring things that allow tangible book value growth to compound over time,” said President and CEO Jim Rieniets. “With regard to the third quarter, increased operating leverage and pre-provision, pretax income were the manifestations of investments in personnel, new markets, and technologies over the last several quarters,” Rieniets continued.

New client deposit and loan growth in Murfreesboro continued in 3Q26. Deposit and loan balances attributed to the Murfreesboro team were $55.8 million and $67.6 million at 3Q26-end compared to $36.3 million and $50.3 million at 2Q26-end, and $27.5 million and $22.9 million at 4Q25-end. The Murfreesboro expansion affected EPS by ($0.02) in 3Q26 compared to $0.01 in 2Q26, ($0.06) in 1Q26, and ($0.15) in 2025. The linked-quarter (“LQ”) decline was primarily due to timing of loan growth and provision expense, which occurred late in 3Q26. The end of period (“EOP”) earning asset base was supportive of continued improvement in pre-provision, pretax income. Noninterest bearing and money market balances increased LQ and represented 84% of the deposits attributable to the Murfreesboro team’s efforts. “This quarter effectively marked our first full year of operations in Rutherford County, and the results our team has produced should make our stakeholders proud,” said Billie Jo Parker, Chief Banking Officer. “Beyond impressive growth and performance metrics, the integration of operations and the confluence of cultures finds us bullish on our future prospects in Murfreesboro,” Parker continued.  

Growth in revenue of 12% Y/Y and overhead 11% Y/Y in 3Q26 resulted in pre-provision pretax income (“PPNR”) growth of 12% Y/Y to $3.1 million in 3Q26. PPNR improved 20% annualized in the quarter, as expense growth represented 51% of revenue growth between 3Q26 and 2Q26 and 64% on a Y/Y basis. Net interest income growth of 12% Y/Y and 9% LQA in 3Q26 was largely responsible for revenue growth in the quarter. The increase in noninterest income of 8% Y/Y to $455,000 was driven by a 42% increase in deposit account service charges to $121,000 in 3Q26.

Noninterest expense growth of 11% Y/Y and LQA reflected an increase in personnel expense of 12% Y/Y (18% LQA) in 3Q26. Although associate growth slowed to one FTE in 3Q26 vs. 2Q26, the timing of new hires later in 2Q26 contributed more meaningfully to overhead expense in 3Q26 than in 2Q26. Excluding costs related to the Murfreesboro expansion, noninterest expense growth was 7% Y/Y in 3Q26. Noninterest expense was 2.09% of average assets in 3Q26 versus 2.06% in 2Q26 and 2.12% in 1Q25; excluding costs associated with the Murfreesboro expansion, the ratio was 1.99% in 3Q26 compared to 1.96% in 2Q26 and 2.10% in 3Q25. “On multiple fronts we have visibility to greater operating leverage and efficiencies over the next couple years,” said Scott Gupton, Chief Operating Officer. “While recent quarters saw the bank solidifying its personnel foundation in strategically important areas, those additions will ensure sustainable growth while leaders across the organization integrate artificial intelligence to scale productivity across the company,” Gupton continued.    

Average earning asset growth of 13%, or $121 million, Y/Y primarily consisted of average loan growth of 14%, or $112 million, Y/Y in 3Q26. On an end of period basis (“EOP”), loan growth of 17% Y/Y (15% LQA) reflected contributions from commercial real estate (“CRE”), construction & development (“C&D”), home equity (“HELOC”), and commercial & industrial (“C&I”) loans in 3Q26. Growth in C&I (14% Y/Y; -3% LQA), CRE (13% Y/Y; 14% LQA), C&D (44% YY; 29% LQA), and residential (26% Y/Y; 45% LQ), largely due to HELOC growth, drove growth in 3Q26. Medquity, INSBANK’s healthcare division, originated $29 million of loans in 3Q26 compared to $15 million in 2Q26 and an average of $33 million over the trailing twelve months. Net of payoffs and participations sold, Medquity’s portfolio grew 17% Y/Y (flat LQ) in 3Q26. Excluding Medquity’s loan balances (28% of loans), loan growth was 17% Y/Y (21% LQ) in 3Q26. “Our healthcare portfolio remains a unique line of business which leverages the expertise of our team to serve a nationwide market of industry providers,” said Blake Wilson, President of Medquity. “Given the scope and relative stability of healthcare spending in the US, we believe continued focus on scaling Medquity can support growth objectives while minimizing correlation of risks with other asset concentrations such as CRE,” Wilson continued.

Deposit growth of 14% Y/Y reflected interest-bearing transaction balance growth of 64% Y/Y in 3Q26. Non-maturity deposit balances, which include noninterest bearing, interest-bearing demand, and money market balances, increased 46% Y/Y, lifting the mix to 54% of deposits, up from 49% a quarter ago and 42% a year ago. “Growing non-maturity and relationship deposits remain an important part of strengthening the bank’s funding profile,” stated Andrew Smith, Chief Deposit Officer. “By deepening customer relationships and capturing a greater share of their deposits, we are building a more efficient funding base that supports margin performance and interest rate risk management,” Smith continued. CD balance growth of -10% Y/Y and -11% LQ in 3Q26 resulted in a mix of 46% of deposits, down from 51% a quarter ago and 58% a year ago. The loan-to-deposit ratio was 100% versus 97% a year ago.

INSBANK’s sensitivity to future changes in interest rates was largely neutral at 3Q26-end. Continued improvement in the mix of non-maturity deposits to total deposits and some usage of interest rate derivatives were largely responsible for the reduction in sensitivity over the past two years. This change reflects that INSBANK’s asset and liability re-pricing mismatch is short-lived and largely resolved within three months of a change in the Fed Funds rate. “Market-based interest rates advanced faster and more meaningfully than the Fed Funds rate in YTD26, which offset the positive effect of low-yielding loans that re-priced higher in the first nine months of the year,” stated Peyton Green, Chief Financial Officer. “Although our modeling reflects a slight benefit to the margin in 4Q26 from the increase in the Fed Funds rate in September, the lag in policy rates compared to market rates will likely neutralize that benefit,” concluded Green. The net interest margin (“NIM”) of 3.18% in 3Q26 compared to 3.18% in 2Q26 and 3.20% in 3Q25. The loan yield was 6.56% in 3Q26 vs. 6.64% in 2Q26 and 6.79% in 3Q25. The yield on securities and short-term liquidity was 4.48% vs. 4.58% in 2Q26 and 4.30% in 3Q25. The cost of deposits and cost of funds improved 15 bps and 17 bps Y/Y, respectively, to 3.21% and 3.32% in 3Q26.

Asset quality remained strong in 3Q26. Net chargeoffs (“NCOs”) represented 0.00% of average loans on an annualized basis in 3Q26, 2Q26, 3Q25. Nonperforming loans and 90-day past dues (“NPLs”) represented 0.32% of loans, as of 3Q26-end vs. 0.25% a quarter ago and 0.84% a year ago. Loans 30-89 days past due represented 0.12% of loans at 3Q26-end compared to 0.28% a quarter ago and 0.19% a year ago. The allowance for credit losses of 1.25% of loans (-9 bps Y/Y) represented 394% of NPLs.

INSBANK maintained solid capital cushions above “Well Capitalized” regulatory capital thresholds. Specifically, the tier-1 leverage, common equity tier-1 capital, and total risk-based capital ratios were 10.21%, 10.83%, and 12.02%, respectively, at quarter-end. InsCorp, Inc.’s tangible common equity ratio was 7.04% as of 3Q26-end vs. 8.14% a year ago. Tangible book value per share decreased 1% Y/Y to $26.20, as of September 30, 2026. C&D and CRE balances represented 85% and 328% of total risk-based capital, respectively, versus 62% and 292% a year ago. Accumulated Other Comprehensive Income was ($5.4 million), or 4.9% of bank-level Tier 1 capital of $111.5 million, as of September 30, 2026.

The Board of Directors approved the payment of a quarterly dividend of $0.12 per common share on December 4, 2026, to shareholders of record on November 13, 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 has not repurchased shares in 2026, 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