InsCorp, Inc. Reports Results for 2Q26

Rhea-AI Summary

InsCorp (OTCQX: IBTN) reported 2Q26 diluted EPS of $0.72, up from $0.63 in 1Q26 and $0.71 in 2Q25. Revenue rose 10% year over year, with net interest income up 14% to $8.1 million and net interest margin at 3.18%. Average earning assets grew 16% Y/Y, driven by 13% loan growth and 15% deposit growth, while the cost of deposits declined to 3.20% from 3.50% a year earlier.

Asset quality remained strong, with annualized net charge-offs at 0.00% and nonperforming plus 90-day past-due loans at 0.25% of loans. The bank stayed “well capitalized,” with a 10.20% tier-1 leverage ratio. Murfreesboro operations reached breakeven and contributed $0.01 to EPS. The board declared a 3Q26 cash dividend of $0.12 per share, implying a 9% annualized increase over 2025’s dividend rate, and tangible book value per share increased 4% Y/Y to $26.57.

Positive

• Diluted EPS up 14% QoQ to $0.72 in 2Q26
• Net interest income grew 14% Y/Y to $8.1 million in 2Q26
• Loans and deposits increased 13–15% Y/Y, supporting 16% earning-asset growth
• Cost of deposits fell to 3.20% from 3.50% a year earlier
• Asset quality strong with net charge-offs at 0.00% and NPLs+90s at 0.25% of loans
• Dividend rate raised 9% Y/Y to an annualized $0.48 per share

Negative

• Noninterest income declined 43% Y/Y to $337,000 in 2Q26
• Noninterest expense rose 18% Y/Y to $5.5 million, pressuring PPNR
• Efficiency ratio weakened to 64.8% versus 60.7% in 2Q25
• Reported NIM decreased to 3.18% from 3.34% in 1Q26 and 3.20% in 2Q25

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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.

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		QTD		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
ROAA		-10 bps		9 bps		0.81 %		0.72 %		0.91 %		0.77 %		0.83 %
ROAE		-13 bps		117 bps		10.85 %		9.68 %		10.98 %		10.24 %		9.91 %
ROATCE		-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
INSBANK
ROAA		-12 bps		9 bps		0.99 %		0.90 %		1.11 %		0.94 %		1.03 %
ROAE		-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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SOURCE INSBANK

FAQ

How did InsCorp (IBTN) perform financially in Q2 2026?

InsCorp reported diluted EPS of $0.72 in Q2 2026, up from $0.63 in Q1 2026 and $0.71 in Q2 2025. According to InsCorp, revenue grew 10% year over year and net interest income rose 14% to $8.1 million, supported by strong loan and deposit growth.

What were InsCorp (IBTN) loan and deposit growth trends in Q2 2026?

InsCorp posted 13% loan growth and 15% deposit growth year over year in Q2 2026. According to InsCorp, average earning assets increased 16% year over year, while the loan-to-deposit ratio reached 100%, up from 96% in the prior quarter and 99% a year earlier.

How strong was asset quality for InsCorp (IBTN) at June 30, 2026?

Asset quality metrics remained strong, with net charge-offs at 0.00% of average loans annualized in Q2 2026. According to InsCorp, nonperforming plus 90-day past-due loans were 0.25% of loans, and the allowance for credit losses covered 523% of those nonperforming and 90-day past-due balances.

What dividend did InsCorp (IBTN) declare for Q3 2026 and how does it compare to 2025?

InsCorp declared a $0.12 per share quarterly dividend payable September 4, 2026, to shareholders of record August 14, 2026. According to InsCorp, this implies an annualized dividend of $0.48 per share, a 9% increase over the $0.44 per share paid in 2025.

How did InsCorp’s net interest margin and funding costs change in Q2 2026?

Net interest margin was 3.18% in Q2 2026, slightly below 3.20% in Q2 2025 and 3.34% in Q1 2026. According to InsCorp, the cost of deposits improved to 3.20%, down from 3.31% in Q1 2026 and 3.50% a year earlier, aided by better deposit mix.

What was the impact of the Murfreesboro expansion on InsCorp (IBTN) in Q2 2026?

The Murfreesboro expansion reached breakeven on a direct expense and revenue basis in Q2 2026. According to InsCorp, related deposits were $36.3 million and loans $50.3 million at quarter-end, and the expansion contributed $0.01 to Q2 2026 EPS after prior periods’ dilution.

Is InsCorp (IBTN) well capitalized after its Q2 2026 results?

InsCorp reported INSBANK remained “well capitalized” at June 30, 2026, with a 10.20% tier-1 leverage ratio and 11.00% common equity tier-1 ratio. According to InsCorp, tangible common equity ratio was 7.43%, and tangible book value per share rose 4% year over year to $26.57.