InsCorp, Inc. Reports Results for 3Q26

Loan growth outpaced deposit growth, while the tangible common equity ratio fell to 7.04% from 8.14% a year earlier.

Rhea-AI Summary

InsCorp (IBTN) reported third-quarter diluted earnings of $0.73 per share, down from a year earlier despite revenue growth. EPS compared with $0.72 in 2Q26 and $0.76 in 3Q25, when a federal tax credit purchase provided a benefit. Net income fell 2.7% year over year to $2.203 million. Revenue rose 12%, and income before credit provisions and taxes increased 12% to $3.1 million.

Quarter-end loans grew 17.3% year over year to $948.303 million, while deposits increased 13.6% to $944.771 million. Net interest margin was 3.18%, unchanged sequentially. Nonperforming loans and loans 90 days past due rose to 0.32% of loans from 0.25% in 2Q26, but remained below 0.84% a year earlier. Tangible book value fell 0.7% year over year to $26.20 per share. The board approved a $0.12 quarterly dividend, payable December 4, 2026, to holders of record November 13; its annualized rate is 9% above dividends paid in 2025.

21 points · 0 major

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0 major · 20 points

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Positive

• Moderate pointRevenue grew 12% year over year in 3Q26.
• Moderate pointPre-provision, pretax income reached $3.1 million, up 12% year over year and 20% annualized sequentially.
• Moderate pointNet interest income rose 11.8% year over year to $8.320 million in 3Q26.
• Moderate pointLoans grew 17.3% year over year to $948.303 million at September 30, 2026.
• Moderate pointAverage earning assets grew 13% year over year; excluding Murfreesboro, growth was 8%.
• Moderate pointDeposits increased 13.6% year over year to $944.771 million at quarter-end.
• Moderate pointDeposit costs fell 15 basis points year over year to 3.21%; funding costs fell 17 to 3.32%.
• Moderate pointQuarterly dividend of $0.12 implies a $0.48 annualized rate, 9% above 2025 dividends.

13 minor points

• Minor pointNoninterest income increased 7.8% year over year to $455,000, including deposit service fees of $121,000.
• Minor pointAverage loans grew 14% year over year; excluding Murfreesboro, growth was 7%.
• Minor pointAverage deposits grew 9% year over year; excluding Murfreesboro, growth was 4%.
• Minor pointNon-maturity deposits rose 46% year over year, reaching 54% of deposits versus 42% a year earlier.
• Minor pointMurfreesboro deposits reached $55.8 million, versus $36.3 million at 2Q26-end.
• Minor pointMurfreesboro loans reached $67.6 million, versus $50.3 million at 2Q26-end.
• Minor pointMedquity originated $29 million of loans in 3Q26 versus $15 million in 2Q26.
• Minor pointMedquity's loan portfolio grew 17% year over year, remaining flat sequentially.
• Minor pointEfficiency ratio improved to 64.44%, from 64.83% in 2Q26 and 64.72% in 3Q25.
• Minor pointNet chargeoffs remained 0.00% of average loans annualized, matching 2Q26 and 3Q25.
• Minor pointLoans 30–89 days past due fell to 0.12%, versus 0.28% sequentially and 0.19% a year earlier.
• Minor pointRegulatory capital remained above well-capitalized thresholds: leverage 10.21%, common equity tier-1 10.83%, total risk-based 12.02%.
• Minor pointExisting repurchase authorization covers 100,000 shares, or 3.4% of outstanding shares, through January 25, 2028.

Negative

• Moderate pointNet income declined 2.7% year over year to $2.203 million, despite increasing 1.3% sequentially.
• Moderate pointNoninterest expense increased 11.3% year over year to $5.682 million in 3Q26.
• Moderate pointCredit-loss provision increased 37.3% year over year and 40.5% sequentially to $361,000.
• Moderate pointLoan-to-deposit ratio increased to 100% from 97% a year earlier.
• Moderate pointTangible common equity ratio fell to 7.04% from 8.14% a year earlier.
• Moderate pointConstruction and development exposure reached 85% of risk-based capital, versus 62% a year earlier.
• Moderate pointCommercial real estate exposure reached 328% of risk-based capital, versus 292% a year earlier.
• Moderate pointFederal Home Loan Bank advances rose 328.6% year over year to $60 million.
• Moderate pointAccumulated comprehensive loss widened to $5.420 million, from $2.216 million a year earlier.

11 minor points

• Minor pointDiluted EPS fell to $0.73 from $0.76 a year earlier, but rose from $0.72 sequentially.
• Minor pointIncome tax expense increased 126.1% year over year to $529,000.
• Minor pointMurfreesboro reduced EPS by $0.02 in 3Q26, versus a $0.01 contribution in 2Q26.
• Minor pointReturn on average assets fell to 0.80%, versus 0.81% sequentially and 0.93% a year earlier.
• Minor pointReturn on tangible common equity fell to 10.78%, versus 10.97% sequentially and 11.29% a year earlier.
• Minor pointNet interest margin was 3.18%, unchanged sequentially but below 3.20% a year earlier.
• Minor pointLoan yield declined to 6.56%, from 6.64% in 2Q26 and 6.79% in 3Q25.
• Minor pointNonperforming and 90-day-past-due loans reached 0.32%, up sequentially from 0.25% but below 0.84% a year earlier.
• Minor pointCredit-loss allowance fell nine basis points year over year to 1.25% of loans, covering 394% of nonperforming loans.
• Minor pointTangible book value declined 0.7% year over year to $26.20 per share.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter modeled margin benefit from September's policy-rate increase will likely be neutralized by market-rate effects, the company expects.

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

NASHVILLE, Tenn., Oct. 30, 2026 /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.

InsCorp, Inc.
Consolidated Balance Sheets
(000's)
(Unaudited)
		Change				For the period ending:
		Y/Y		YTD		September 30, 2026		December 31, 2025		September 30, 2025
Assets
Cash and due from banks		4.9 %		8.4 %		$           5,185		$           4,783		$           4,945
Fed funds sold		-82.6 %		-63.1 %		676		1,830		3,876
Interest bearing deposits with banks		11.0 %		-50.4 %		29,027		58,495		26,154
Investment Securities		23.2 %		25.1 %		98,401		78,684		79,854
Loans, net of unearned income		17.3 %		9.8 %		948,303		863,868		808,608
Allowance for Credit Losses		9.0 %		9.8 %		(11,837)		(10,780)		(10,858)
Net loans		17.4 %		9.8 %		936,466		853,088		797,750
Premises and equipment, net		-0.7 %		-0.7 %		12,772		12,861		12,868
Accrued interest receivable		10.6 %		8.2 %		4,722		4,364		4,271
Goodwill		0.0 %		0.0 %		1,091		1,091		1,091
Other assets		8.2 %		-2.3 %		35,443		36,281		32,757
Total Assets		16.6 %		6.9 %		$     1,123,783		$     1,051,477		$        963,566
Liabilities
Noninterest bearing deposits		1.2 %		6.0 %		$          98,836		$          93,228		$          97,666
Interest bearing demand deposits		38.0 %		40.8 %		37,824		26,859		27,413
Savings and money market deposits		67.2 %		28.5 %		372,770		290,184		222,982
Time deposits		-10.0 %		-10.5 %		435,341		486,243		483,783
Total deposits		13.6 %		5.4 %		944,771		896,514		831,844
Accrued expenses and other liabilities		-0.6 %		8.4 %		11,487		10,596		11,556
Federal Home Loan Bank Advances		328.6 %		53.8 %		60,000		39,000		14,000
Subordinated debentures		0.1 %		0.1 %		17,409		17,393		17,387
Other borrowings		6.4 %		0.0 %		9,950		9,950		9,350
Total Liabilities		18.0 %		7.2 %		1,043,617		973,453		884,137
		46.4 %		24.2 %		509,430		410,271		348,061
Equity
Common stock		2.5 %		2.1 %		29,436		28,833		28,722
Retained earnings		6.3 %		7.1 %		49,884		46,581		46,908
Accumulated other comprehensive income (loss)		144.6 %		205.5 %		(5,420)		(1,774)		(2,216)
Net Income		4.2 %		42.9 %		6,266		4,384		6,015
Total Equity		0.9 %		2.7 %		80,166		78,024		79,429
Total Liabilities & Equity		16.6 %		6.9 %		$     1,123,783		$     1,051,477		$        963,566
Tangible Book Value per Share		-0.7 %		1.3 %		$           26.20		$           25.87		$           26.38

 

InsCorp, Inc.
Consolidated Statements of Income
(000's)
(Unaudited)
		Change vs.				For the Three Months Ended						Nine Months Ended
		3Q25		2Q26		September 30, 2026		June 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Interest Income		10.2 %		2.5 %		$          16,671		$          16,259		$          15,128		$          49,410		$          43,168
Interest Expense		8.7 %		2.9 %		8,351		8,118		7,685		24,600		22,181
Net Interest Income		11.8 %		2.2 %		8,320		8,141		7,443		24,810		20,987
Provision for Credit Losses		37.3 %		40.5 %		361		257		263		1,015		906
Noninterest Income
Deposit Account Service Fees		42.4 %		2.5 %		121		118		85		345		254
Bank Owned Life Insurance		5.6 %		2.7 %		113		110		107		330		311
Gains (losses), net		-225.0 %		-225.0 %		10		(8)		(8)		99		(21)
Other		-11.3 %		80.3 %		211		117		238		(289)		1,002
Total Noninterest Income		7.8 %		35.0 %		455		337		422		485		1,546
Noninterest Expense
Salaries and Benefits		12.1 %		4.4 %		3,775		3,616		3,367		10,933		9,585
Occupancy and Equipment		-4.9 %		-6.9 %		353		379		371		1,117		909
Data Processing		12.2 %		-6.3 %		358		382		319		1,170		902
Marketing and Advertising		-7.1 %		4.8 %		130		124		140		349		391
Other		17.7 %		3.4 %		1,066		1,031		906		2,940		2,609
Total Noninterest Expense		11.3 %		2.7 %		5,682		5,532		5,103		16,509		14,396
Income Before Income Taxes		9.3 %		1.6 %		2,732		2,689		2,499		7,771		7,231
Income Tax Expense		126.1 %		2.7 %		$              529		$              515		$              234		$           1,506		$           1,215
Net Income		-2.7 %		1.3 %		$           2,203		$           2,174		$           2,265		$           6,265		$           6,016
Basic Earnings per Share		-3.8 %		1.3 %		$             0.76		$             0.75		$             0.79		$             1.51		$             1.52
Diluted Earnings per Share		-3.9 %		1.4 %		$             0.73		$             0.72		$             0.76		$             1.45		$             1.47
		Change vs.				For the Three Months Ended						Nine Months Ended
InsCorp, Inc.		3Q25		2Q26		September 30, 2026		June 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
ROAA		-13 bps		-1 bps		0.80 %		0.81 %		0.93 %		0.78 %		0.86 %
ROAE		-82 bps		-18 bps		10.64 %		10.82 %		11.46 %		10.38 %		10.44 %
ROATCE		-50 bps		-19 bps		10.78 %		10.97 %		11.29 %		10.52 %		10.59 %
Net Interest Margin		-2 bps		0 bps		3.18 %		3.18 %		3.20 %		3.23 %		3.14 %
Efficiency		-28 bps		-39 bps		64.44 %		64.83 %		64.72 %		65.17 %		63.80 %
Revenue / Employee		-0.9 %		0.3 %		424		422		428		425		426
Expense / Employee		-1.1 %		-0.5 %		274		276		277		277		272
Assets / Employee		3.6 %		2.0 %		13,676		13,412		13,200
INSBANK
ROAA		-15 bps		-2 bps		0.97 %		0.99 %		1.12 %		0.95 %		1.06 %
ROAE		-56 bps		-14 bps		9.83 %		9.97 %		10.39 %		9.65 %		9.69 %
Net Interest Margin		-4 bps		-1 bps		3.33 %		3.34 %		3.37 %		3.38 %		3.32 %
Capital Ratios
Tier-1 Leverage		-87 bps		1 bps		10.21 %		10.20 %		11.08 %
Common Equity Tier-1		-122 bps		-18 bps		10.83 %		11.01 %		12.05 %
Total Risk-Based Capital		-128 bps		-17 bps		12.02 %		12.19 %		13.30 %

 

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SOURCE INSBANK

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were InsCorp's IBTN third-quarter 2026 earnings?

InsCorp reported net income of $2.203 million and diluted EPS of $0.73 for 3Q26. Net income declined 2.7% year over year. Diluted EPS compared with $0.76 in 3Q25 and $0.72 in 2Q26; excluding the benefit of a federal tax credit purchase, 3Q25 EPS was $0.66.

When will InsCorp pay its fourth-quarter 2026 dividend?

InsCorp will pay $0.12 per common share on December 4, 2026, to shareholders of record on November 13, 2026. The annualized quarterly rate of $0.48 per share is 9% above the $0.44 per share paid in 2025.

How sensitive was INSBANK to interest-rate changes at the end of 3Q26?

INSBANK's sensitivity to future interest-rate changes was largely neutral at 3Q26-end. The company attributed the reduction over the past two years largely to a greater non-maturity deposit mix and some use of interest-rate derivatives; its asset and liability repricing mismatch was largely resolved within three months of a Fed Funds rate change.

Did InsCorp repurchase IBTN shares in 2026?

InsCorp had not repurchased shares in 2026. Its current program authorizes repurchases of 100,000 shares, or 3.4% of outstanding shares, through January 25, 2028. In 2025, it repurchased 59,000 shares, representing 2.0% of the prior year-end share count.