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Inscorp Inc

InsCorp, Inc. Reports Improved Operating Leverage and EPS Growth in 2Q25

Former Pinnacle Executive Billie Jo Parker Joins INSBANK as Chief Banking & Development Officer

NASHVILLE, Tenn. , July 29, 2025 /PRNewswire/ -- Today, InsCorp, Inc. (OTCQX: IBTN) reported results for 2Q25, which reflected earnings per share ("EPS") of $0.73 in the second quarter of 2025 ("2Q25") compared to EPS of $0.57 in 1Q25 and $0.63 in 2Q24. "As the second quarter commenced, we anticipated an earnings inflection point given both expected growth and margin improvement," said President and CEO of INSBANK, Jim Rieniets. "We're pleased that our team delivered on plans to leverage recent resource additions for a solid improvement in net income, ROA, and ROE. Barring unexpected volatility, we expect continued improvement in those metrics during the second half of the year, as well," added Rieniets. InsCorp generated a ROA of 0.91%, ROATCE of 11.1% in 2Q25, and an efficiency ratio of 60.9% versus 0.74%, 9.0%, and 66.1%, respectively, in 1Q25, and 0.88%, 10.3%, and 59.2%, respectively, in 2Q24.

Improved results in 2Q25 reflected an acceleration in revenue growth to $1,519,000, or 24%, Y/Y in 2Q25 vs. $789,000, or 13%, Y/Y in 1Q25 , while overhead growth of $1,018,000, or 28%, Y/Y in 2Q25 declined slightly versus $1,040,000, or 29%, in 1Q25. Growth in salaries and benefits expense of $759,000, or 32%, Y/Y represented 75% of overhead growth in 2Q25 and was primarily a function of headcount growth of 15 associates (22% Y/Y). Five associates joined INSBANK in 2Q25, including former Pinnacle Financial Partners executive, Billie Jo Parker, who joined INSBANK as Chief Banking & Development Officer, a new senior management role for the company. Pretax, pre-provision income increased 20% Y/Y to $3,037,000 in 2Q25 in contrast to a decline of 10% Y/Y to $2,360,000 in 1Q25. Provision for credit losses of $380,000 in 2Q25 compared to $75,000 in 2Q24 and restrained pretax income growth to 8% Y/Y in 2Q25.

Net interest income comparisons improved for the fourth consecutive quarter since reaching a low in 2Q24.  Net interest income increased 27% Y/Y (11% LQ) in 2Q25 vs. 15% Y/Y (+2% LQA) in 1Q25, as the NIM improved 34 bp Y/Y (+19 bp LQ) to 3.21% and average earning assets grew 13% Y/Y to $889 million in 2Q25. Earning asset growth resulted from average loan growth of 19% Y/Y to $804 million in 2Q25, which was partially offset by a decline in average liquidity assets of 23% Y/Y to $85 million in the quarter. Interest income growth of $1,752,000 Y/Y in 2Q25 accelerated compared to $1,028,000 Y/Y in 1Q25 and exceeded interest expense growth of $255,000 Y/Y in 2Q25 for the third consecutive quarterly period. The average loan yield improved to 6.76% (+3 bps Y/Y) while the cost of deposits decreased to 3.51% (-39 bp Y/Y) in 2Q25.

Loan growth increased to 17% Y/Y in 2Q25 versus 16% Y/Y in 1Q25. Growth in C&I (25% Y/Y), CRE (14% Y/Y), Residential (29% Y/Y), HELOC (68% Y/Y), and Multifamily (12% Y/Y) all contributed to Y/Y loan growth while C&D loans declined slightly (-4% Y/Y) in 2Q25. Growth in Residential and Multifamily loans primarily reflected migration from C&D over the past nine months. Medquity, INSBANK's healthcare business, posted loan growth of 18% Y/Y to $236 million in 2Q25, which compared to 16% Y/Y for the rest of the commercial bank (70% of total loans). Notwithstanding increased payoff activity in 2H25, growth in the loan commitment pipeline of 49% Y/Y and 21% LQ to $115 million should support double-digit asset growth through year-end. C&D and CRE balances represented 69% and 300% of total risk-based capital, respectively, vs. 87% and 307% a quarter ago.

Deposit growth of 18% Y/Y reflected strong growth in interest-bearing transaction balances of 42% and solid noninterest bearing deposit growth of 15% over the past year.  Total CD balances increased by 7% year-over-year in 2Q25 and decreased to 60.4% of deposits, compared to 66.1% a year ago. Noninterest bearing and non-CD interest-bearing deposits represented 39.6% of deposits compared to 33.9% a year ago. Medquity's customer deposits increased 45% Y/Y to $58.0 million.

Asset quality measures remain healthy.  Net chargeoffs represented 0.00% of average loans in 2Q25, 1Q25 and 2Q24. Nonperforming loans ("NPLs") improved to 0.65% of loans vs. 0.66% a quarter ago and 1.08% a year ago. Virtually all NPLs are well-secured and collateralized by real estate with significant equity, for which specific reserves are relatively low. One well-collateralized real estate loan accounted for 63% of NPLs, or 0.41% of loans, at 2Q25-end. Loans 30 days past due represented 0.58% of loans at the end of 1Q25, versus 0.24% a quarter ago and 0.11% a year ago. The allowance for credit losses of 1.32% of loans (-3 bps Y/Y) represented 204% of NPLs vs. 196% a quarter ago and 125% a year ago.

Existing capital levels continue to support solid balance sheet growth.  INSBANK remained "well capitalized" from a regulatory perspective with a tier-1 leverage ratio of 11.28%, a common equity tier-1 capital ratio of 12.01%, and a total risk-based capital ratio of 13.26%. InsCorp, Inc.'s tangible common equity ratio was 8.02% as of 2Q25-end vs. 8.01% a quarter ago and 8.61% a year ago. Tangible book value per share ("TBVPS") increased 6.4%, or $1.59 per share, Y/Y to $26.48, as of June 30, 2025; TBVPS has increased by $9.20, or by 9.9% annualized since December 31, 2020. Accumulated Other Comprehensive Income was ($2,538,000), or approximately 2.4% of bank-level tier-1 capital of $104,992,000, as of June 30, 2025.

The bank announced the hiring of Billie Jo Parker, who fills the company's newest C-suite position as Chief Banking and Development Officer. Parker comes to INSBANK from Pinnacle Bank, where she served as Senior Vice President and Client Services Area Manager. Prior to Pinnacle, Parker led the Private Client Division for Metropolitan Bank. In this new role, she will be responsible for enterprise-wide guidance of the bank's sales and service functions. "As we continue to grow our business, the coordination of resources for business development and curating best-in-class client services necessitates a leadership partner for our business line executives and business development officers," said Jim Rieniets, President and CEO of INSBANK. "I am thrilled to have Billie Jo join the INSBANK team in that capacity, given her track record of accomplishments and industry-wide reputation for leadership of high-performing teams," Rieniets continued.    

The Board of Directors approved the payment of a quarterly dividend of $0.11 per common share on September 5, 2025, to shareholders of record on August 15, 2025.  The annualized quarterly dividend rate of $0.44 per share represents an increase of 10% compared to dividends of $0.40 per share paid in 2024. The Company repurchased 33,000 shares in 2Q25, or 1.1% of the outstanding share count as of March 31, 2025, leaving 52,500 shares, or 1.8% of the Company's outstanding shares, available for repurchase under the existing authorization, which expires on January 27, 2026. Since the authorization was approved, the Company has repurchased 2.5% of its outstanding shares over the past year.

About InsCorp, Inc. and INSBANK

Since 2000, INSBANK has offered clients highly personalized services provided by experienced relationship managers while positioning itself as an innovator, utilizing technologies to deliver those services efficiently and conveniently. In addition to its commercial-focused operation, INSBANK operates three divisions: Medquity, TMA Medical Banking, and Finworth. Medquity offers healthcare banking solutions to physicians, partnerships, and practices nationwide, while TMA Medical Banking provides banking services specifically to members of the Tennessee Medical Association. 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 an office in Brentwood at 5614 Franklin Pike Circle. For more information, please visit www.insbank.com.

Selected Performance Metrics


Change vs.


For the Three Months Ended


Six Months Ended

InsCorp, Inc.


2Q24


1Q25


June 30,
2025


March 31,
2025


June 30,
2024


June 30,
2025


June 30,
2024

ROAA


2 bps


16 bps


0.91 %


0.74 %


0.88 %


0.86 %


0.92 %

ROAE


82 bps


212 bps


10.96 %


8.83 %


10.13 %


9.91 %


9.99 %

ROATCE


82 bps


215 bps


11.11 %


8.96 %


10.29 %


10.05 %


10.17 %

Net Interest Margin


34 bps


19 bps


3.21 %


3.02 %


2.87 %


3.12 %


2.86 %

Efficiency


168 bps


-528 bps


60.86 %


66.13 %


59.18 %


63.36 %


60.11 %

Revenue / Employee


-1.0 %


2.4 %


419


409


423


400


422

Expense / Employee


1.5 %


-5.9 %


254


270


251


253


247

Assets / Employee


-9.5 %


-6.8 %


12,802


13,730


14,141


12,802


14,141

Tangible Common Equity / Assets


-59 bps


1 bps


8.02 %


8.01 %


8.61 %


8.02 %


8.61 %
















INSBANK















ROAA


4 bps


17 bps


1.11 %


0.94 %


1.08 %


1.07 %


1.12 %

ROAE


76 bps


167 bps


10.14 %


8.47 %


9.39 %


9.32 %


9.36 %

Net Interest Margin


33 bps


20 bps


3.40 %


3.20 %


3.07 %


3.30 %


3.08 %
















Capital Ratios















Tier-1 Leverage


-38 bps


-5 bps


11.28 %


11.33 %


11.66 %





Common Equity Tier-1


-51 bps


4 bps


12.01 %


11.97 %


12.52 %





Total Risk-Based Capital


-51 bps


6 bps


13.26 %


13.20 %


13.77 %





 

InsCorp, Inc.

Consolidated Balance Sheets

(000's)

(unaudited)














Change:


For the period ending:



Y/Y


YTD


June 30, 2025


December 31,
2024


June 30, 2024

Assets











Cash and Cash Equivalents


8.2 %


-12.0 %


$       5,630


$       6,401


$       5,203

Interest Bearing Deposits


4.7 %


33.4 %


49,593


37,175


47,383

Securities


-2.8 %


-3.4 %


54,497


56,426


56,056












Loans


16.6 %


4.3 %


797,935


764,795


684,533

  Allowance for Credit Losses


14.5 %


6.6 %


(10,548)


(9,895)


(9,216)

Net Loans


16.6 %


4.3 %


787,387


754,900


675,317












Premises and Equipment, net


0.8 %


1.8 %


12,672


12,451


12,568

Bank Owned Life Insurance


2.8 %


1.4 %


14,661


14,458


14,257

Restricted Equity Securities


13.0 %


3.7 %


10,601


10,224


9,379

Goodwill and Related Intangibles, net


0.0 %


0.0 %


1,091


1,091


1,091

Other Assets


-14.1 %


-0.9 %


11,242


11,345


13,082

  Total Assets


13.5 %


4.7 %


$    947,374


$    904,471


$    834,336












Liabilities and Shareholders' Equity











Liabilities











Deposits











Noninterest Bearing


15.3 %


4.9 %


$     88,140


$     84,017


$     76,417

Interest Bearing


18.3 %


6.6 %


710,740


666,466


600,949

Total Deposits


17.9 %


6.4 %


798,880


750,483


677,366












Federal Home Loan Bank Advances


-24.4 %


-22.7 %


34,000


44,000


45,000

Subordinated Debentures


0.1 %


0.1 %


17,382


17,371


17,360

Notes Payable


20.4 %


31.4 %


10,250


7,800


8,516

Other Liabilities


-25.8 %


-1.5 %


9,851


9,998


13,283

Total Liabilities


14.3 %


4.9 %


870,363


829,652


761,525












Shareholders' Equity











Common Stock


-3.3 %


-2.8 %


28,565


29,395


29,544

Accumulated Retained Earnings


14.0 %


6.5 %


50,984


47,891


44,704

Accumulated Other Comprehensive Income

76.6 %


2.9 %


(2,538)


(2,467)


(1,437)

Total Stockholders' Equity


5.8 %


2.9 %


77,011


74,819


72,811

Total Liabilities & Shareholders' Equity


13.5 %


4.7 %


$    947,374


$    904,471


$    834,336












Tangible Book Value


6.4 %


4.3 %


$       26.48


$       25.39


$       24.89

 

InsCorp, Inc.

Consolidated Statements of Income

(000's)

(Unaudited)


















Change vs.


For the Three Months Ended


Six Months Ended



2Q24


1Q25


June 30,
2025


March 31,
2025


June 30,
2024


June 30,
2025


June 30,
2024
















Interest Income


13.8 %


6.3 %


$     14,448


$     13,591


$     12,696


$     28,039


$     25,259

Interest Expense


3.6 %


2.3 %


7,329


7,167


7,074


14,496


14,044

Net Interest Income


26.6 %


10.8 %


7,119


6,424


5,622


13,543


11,215
















Provision for Credit Losses


406.7 %


44.5 %


380


263


75


643


100
















Noninterest Income















Service Charges on Deposit Accounts


12.7 %


0.0 %


80


80


71


160


138

Bank Owned Life Insurance


7.2 %


4.0 %


104


100


97


204


192

Other


1.4 %


20.6 %


428


355


422


783


837

Total Noninterest Income


3.7 %


14.4 %


612


535


590


1,147


1,167
















Noninterest Expense















Salaries and Benefits


31.7 %


2.9 %


3,154


3,064


2,395


6,218


4,696

Occupancy and Equipment


6.4 %


-0.9 %


449


453


422


902


815

Data Processing


5.9 %


-25.2 %


107


143


101


250


195

Marketing and Advertising


88.7 %


14.5 %


134


117


71


251


190

Other


23.7 %


3.4 %


850


822


687


1,672


1,339

Total Noninterest Expense


27.7 %


2.1 %


4,694


4,599


3,676


9,293


7,235
















Net Income from Operations


8.0 %


26.7 %


2,657


2,097


2,461


4,754


5,047
















Gain (Loss) in Interest Rate Hedges


-80.6 %


260.0 %


$           (18)


$            (5)


(93)


(23)


(345)

Income Before Income Taxes


11.4 %


26.1 %


2,639


2,092


2,368


4,731


4,702

Income Tax Expense


-1.3 %


23.0 %


$         (541)


$         (440)


(548)


(981)


(1,119)

Net Income


15.3 %


27.0 %


$       2,098


$       1,652


$       1,820


$       3,750


$       3,583
















Earnings per Share


15.9 %


28.1 %


$         0.73


$         0.57


$         0.63


$         1.30


$         1.24

 

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SOURCE INSBANK