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Inscorp Inc

InsCorp, Inc. Reports Results for 4Q25 and 2025

IBTN Crosses the $1 Billion Asset Mark, Approves Quarterly Dividend Increase, and Adds Healthcare Veteran to its Board

NASHVILLE, Tenn. , Feb. 2, 2026 /PRNewswire/ -- Today, InsCorp, Inc. (OTCQX: IBTN) reported results for the year ("2025") and fourth quarter ("4Q25") ended December 31, 2025. IBTN recorded earnings per share ("EPS") of $1.52 in 2025 compared to $2.55 in 2024 and ($0.57) in 4Q25 compared to $0.67 in 4Q24. EPS in 4Q25 and 2025 were affected by ($1.36) due to the pretax loss of $4,948,584 recognized from the fraud perpetrated by a single borrower, which was publicly disclosed on December 11, 2025, and fully charged off in 4Q25. "From a stakeholder's perspective, it is important to note that the fraudulent loan was a unique situation, and not part of a business line for which there could be similar exposures. In addition to an internal assessment, we are also working with an independent auditor to validate collateral across the portfolio and provide concurrence on remediated processes," said President and CEO, Jim Rieniets. "Although the incident of fraud was a disheartening gut punch to our team upon its discovery, our organization remains resilient and we have managed through this adversity with a prudent response while ensuring that our team members remain focused on executing our plans for sustainable growth against a backdrop of strong loan and deposit pipelines and stable credit metrics," added Rieniets. InsCorp generated a ROA of 0.46%, ROATCE of 5.8%, and an efficiency ratio of 65.9% in 2025 versus 0.87%, 10.3%, and 60.1%, respectively, in 2024. The after-tax effect of the fraud loss reduced IBTN's ROA by 0.41% in 2025.

New client deposit and loan growth from Murfreesboro gained momentum in 4Q25.  "The opportunity to expand into the vibrant Murfreesboro market was welcomed by the Bank's leadership, and the execution of that plan has gone very well. Our new team members have hit the ground running and are steadily growing our client base. Perhaps most importantly, there is a cohesive cultural fit with our organization, which has made for a good transition for all involved," stated Chief Banking Officer Billie Jo Parker. Specifically, deposit and loan balances attributed to this team increased to approximately $28.0 million and $23.0 million at year-end, compared to $5.9 and $2.0 million at the previous quarter-end. A fifth member joined the team in December to support client services and growth in 2026. Although balance sheet growth was better than expected in the first full quarter after the team joined INSBANK in 3Q25, the absorption of costs associated with the market expansion in Murfreesboro affected EPS by approximately ($0.04) in 4Q25 and ($0.03) in 3Q25, or ($0.07) in 2025.

The loan pipeline increased 35% Y/Y to a near record level.  The pipeline included about $50 million of approved loans that are expected to fund upon closing in 1Q26. "While we reported loan growth of $57 million, or 7%, compared to September 30th, the bank's loan pipeline remained healthy as we rolled into the new year," stated Chad Hankins, Chief Lending Officer. "Simply put, our team is well positioned to take advantage of recent and future dislocations in the Nashville market," Hankins added. "We are excited about the coming quarters, as momentum across our business should pair with greater leverage on recent investments in personnel, infrastructure, and systems for enhanced operating leverage," concluded CEO Rieniets.

Loan growth of 13% Y/Y and 7% LQ in 4Q25 reflected solid contributions from commercial real estate ("CRE"), C&I, and residential loans. Growth in CRE (18% Y/Y; 7% LQ), C&I (16% Y/Y; 6% LQ), and Residential (26% Y/Y; -9% LQ), HELOC (90% Y/Y; 43% LQ), and Multifamily (1% Y/Y; 28% LQ) all contributed to loan growth on a Y/Y basis, in contrast to a decline in C&D loans (-18% Y/Y) in 4Q25. Some of the decrease in C&D and growth in Residential loans reflected migration from C&D in 2025. "Although Medquity's loan growth slowed to 5% Y/Y in 4Q25 versus 7% Y/Y in 3Q25 and 18% Y/Y in 2Q25, loan balances approved for closing remain at a record level and Mequity's growth rate is expected to return to a strong double-digit pace in 2026," explained Blake Wilson, President, Medquity Healthcare Banking. Excluding Medquity's loan balances (27% of loans), loans increased 16% Y/Y (8% LQ) in 4Q25.

Deposit growth of 19% Y/Y reflected interest-bearing transaction balance growth of 50% Y/Y and noninterest bearing deposit growth of 11% Y/Y in 2025.  Non-maturity deposit balances, which include noninterest bearing, interest-bearing demand, and money market balances increased 39% Y/Y lifting the mix to 46% of deposits compared to 42% a quarter ago and 39% a year ago. CD balances grew 7% Y/Y in 2025 and decreased to 54% of deposits versus 58% a quarter ago and 61% a year ago. INSBANK ended the year with a loan-to-deposit ratio of approximately 96% versus 102% a year ago.

Revenue growth of 16% Y/Y was offset by an increase in overhead of 25% Y/Y in 2025, which reflected continued investment in infrastructure, systems, and entry into Murfreesboro during the year . Pretax, pre-provision income ("PPNR") increased 1% Y/Y to $10.0 million in 2025. Strong growth in net interest income of 20% Y/Y was partially offset by 38% drop in noninterest income, which reflected a non-cash charge of $681,000 to reduce the carrying value of INSBANK's SBIC investments. Excluding the valuation adjustment, PPNR growth was 8% Y/Y in 2025.

Net interest income increased 16% Y/Y to $7.4 million in 4Q25 and 20% Y/Y to $28.4 million in 2025.  On a quarterly basis, net interest income growth benefited from net interest margin expansion of 12 basis points ("bps") to 3.15% and average earning asset growth of 12% Y/Y in 4Q25. Although linked-quarter ("LQ") net interest income comparisons improved for five consecutive quarters through 3Q25, margin pressure of 5 bp LQ to 3.15% offset average earning asset growth of 1.5% LQ in 4Q25. For the year, the margin improved 22 bp to 3.14% in 2025 and average earning assets increased 12%. Earning asset growth was the result of average loan growth of 14% Y/Y (1.7% LQ) in 4Q25, as the balance of average other earning assets of $116 million was roughly flat in the quarter. For the year, average earning asset growth of 12% Y/Y reflected average loan growth of 16%, which was offset in part by a 10% reduction in average other earning assets to $103 million in 2025.

Additional margin pressure is expected in 1Q26 as recent reductions in the Fed Funds target rate work through INSBANK's asset-sensitive balance sheet.  Although the Bank's interest rate risk profile was relatively unchanged compared to a quarter ago, the bank has more re-pricing assets compared to re-pricing liabilities. This mismatch begins to correct itself quickly and is largely resolved six months after a reduction in the Fed Funds rate. Due to the timing of reductions in 4Q25, margin pressure is likely during 1Q26 before comparisons begin to improve in 2Q26, assuming no further changes in 1Q26.

Provision expense of $5.8 million in 2025 included $4.9 million related to the chargeoff of the fraudulent loan relationship in 4Q25. Excluding the loan fraud chargeoff, provision expense increased 26% Y/Y to $884,000 in 2025 versus $701,000 in 2024. Other positive adjustments to the allowance for credit losses totaling $875,000 in 4Q25 resulted from favorable underlying developments in credit quality and economic trends during the quarter.

Noninterest income was adversely affected by a decrease in the value of an SBIC fund investment . For more than a decade, INSBANK has committed capital to SBIC funds as part of its plan to fulfill CRA objectives and further development of small business formation within its market, region, and the nation. Over a decade ago, INSBANK committed $1.5 million of capital to one SBIC fund which was fully drawn during the fund's investment period; over the life of the fund, INSBANK has received distributions totaling $1.7 million, or 111% of its capital contribution. Unfortunately, the fund's largest investment (66% of the fund's capital) has experienced material difficulty, which resulted in a decline in value of $939,000 Y/Y to $1.3 million, as of September 30, 2025. Based on an update received from the fund's General Partner in late January, it seems likely that fund will incur a write-down, possibly a material write-down, due to continued issues with its largest investment when the fund's financial statements, as of December 31, 2025, are provided to investors in late March. Most of INSBANK's other investments in SBIC funds are earlier in their respective lifecycles and are performing in line with expectations.

Noninterest expense growth of 25% Y/Y reflected an increase in personnel expense of 26% Y/Y in 2025.  Overhead and personnel growth of 22% Y/Y and 19% Y/Y, respectively, in 4Q25 reflected the addition of 11 associates, or 17% Y/Y growth, compared to a year ago. Excluding costs related to the Murfreesboro expansion, noninterest expense and personnel expense increased 23% and 24%, respectively, in 2025, and by 16% and 14%, respectively, in 4Q25.

Two unrelated items reduced federal tax expense by approximately $718,000 in 4Q25.  INSBANK reversed an over-accrual of federal tax expense totaling $332,000, which benefited EPS by $0.11; the over-accrual resulted from the gradual accumulation of small annual differences between GAAP and statutory tax expense that built up over time. On December 31, 2025, the bank executed a tax credit transfer agreement for a federal tax credit for the 2025 tax year, which benefited net income by $396,000 and EPS by $0.14. Together, both tax items benefited EPS by $0.25 compared to the EPS impact of ($0.19) for the decline in the value of SBIC investments recognized in the quarter. The tax credits purchased in 3Q25 and 4Q25 for the 2024 and 2025 tax years, respectively, will enable the bank to offset 75% of its federal tax liability incurred during 2021-2025 and benefited EPS by $0.23 in 2025.

Asset quality measures remain healthy heading into 2026.  Net chargeoffs ("NCOs") represented 2.26% of average loans on an annualized basis in 4Q25 compared to 0.00% in 3Q25 and 4Q24; for the year, NCOs represented 0.61% of average loans compared to 0.00% in 2024. Chargeoff activity in 2025 was related entirely to the fraudulent loan. Nonperforming loans and 90-day past dues ("NPLs") ended 2025 at 0.60% of loans vs. 0.84% a quarter ago and 0.70% a year ago. Virtually all NPLs are collateralized by real estate with significant equity. The largest NPL, a well-collateralized real estate loan, accounted for 60% of NPLs, or 0.36% of loans, at year-end. Loans 30-89 days past due represented 0.04% of loans at 4Q25-end compared to 0.18% a quarter ago and 0.16% a year ago. The allowance for credit losses of 1.25% of loans (-4 bps Y/Y) represented 207% of NPLs vs. 160% a quarter ago and 186% 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 10.66%, a common equity tier-1 capital ratio of 10.97%, and a total risk-based capital ratio of 12.14%. InsCorp, Inc.'s tangible common equity ratio was 7.32% as of 4Q25-end versus 8.14% a quarter ago and 8.16% a year ago. Tangible book value per share increased 5% Y/Y to $25.87, as of December 31, 2025. C&D and CRE balances represented 74% and 326% of total risk-based capital, respectively, versus 94% and 314% a year ago. Accumulated Other Comprehensive Income was ($1.8 million), or 1.7% of bank-level tier-1 capital of $104.8 million, as of December 31, 2025.

The Board of Directors welcomed Nancy Schultz to the Board and approved the payment of a quarterly dividend of $0.12 per common share on March 6, 2025, to shareholders of record on February 13, 2026.  Ms. Schultz joins the Board after 39 years of consulting experience focused on helping clients in the healthcare industry design and implement growth strategies using technology. She is deeply rooted in the Nashville community serving on the boards of Ascension Saint Thomas, Barge Design Solutions, Music City Baseball (focused on bringing MLB to Nashville), and the Nashville Children's Alliance. Chairman Rieniets stated, "we are thrilled to complement our existing board group with Nancy and her skillsets and deep understanding of the healthcare services industry to our board."

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 4Q25, 59,000 shares, or 2.0% of the prior year-end's share count, were repurchased in 2025. The Board has authorized a new repurchase plan for 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 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 two 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 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


December 31,
2025


September 30,
2025


December 31,
2024





Assets















Cash and due from banks


13.3 %


-3.3 %


$           4,783


$           4,945


$           4,222





Fed funds sold


-16.0 %


-52.8 %


1,830


3,876


2,179





Interest bearing deposits with banks


57.4 %


123.7 %


58,495


26,154


37,175





Investment Securities


29.6 %


-1.5 %


78,684


79,854


60,734




















Loans, net of unearned income


13.0 %


6.8 %


863,868


808,608


764,795





Allowance for Credit Losses


8.9 %


-0.7 %


(10,780)


(10,858)


(9,895)





Net loans


13.0 %


6.9 %


853,088


797,750


754,900




















Premises and equipment, net


3.3 %


-0.1 %


12,861


12,868


12,451





Accrued interest receivable


11.9 %


2.2 %


4,364


4,271


3,899





Goodwill


0.0 %


0.0 %


1,091


1,091


1,091





Other assets


30.4 %


10.8 %


36,281


32,757


27,821





Total Assets


16.3 %


9.1 %


$     1,051,477


$        963,566


$        904,472




















Liabilities















Noninterest bearing deposits


11.0 %


-4.5 %


$          93,234


$          97,666


$          84,017





Interest bearing demand deposits


1.6 %


-2.0 %


26,859


27,413


26,430





Savings and money market deposits


56.9 %


30.1 %


290,178


222,982


184,983





Time deposits


6.9 %


0.5 %


486,243


483,783


455,054





Total deposits


19.5 %


7.8 %


896,514


831,844


750,484





Accrued expenses and other liabilities


6.0 %


-8.3 %


10,596


11,554


9,998





Federal Home Loan Bank Advances


-11.4 %


178.6 %


39,000


14,000


44,000





Subordinated debentures


0.1 %


0.0 %


17,393


17,387


17,371





Other borrowings


27.6 %


6.4 %


9,950


9,350


7,800





Total Liabilities


17.3 %


10.1 %


973,453


884,135


829,653




















Equity















Common stock


-1.9 %


0.4 %


28,833


28,722


29,395





Retained earnings


15.0 %


-0.7 %


46,581


46,908


40,521





Accumulated other comprehensive income (loss)


-28.1 %


-19.9 %


(1,774)


(2,216)


(2,467)





Net Income


-40.5 %


-27.1 %


4,384


6,015


7,370





Total Equity


4.3 %


-1.8 %


78,024


79,429


74,819





Total Liabilities & Equity


16.3 %


9.1 %


$     1,051,477


$        963,564


$        904,472




















Tangible Book Value per Share


5.4 %


-1.9 %


$           25.87


$           26.38


$           24.55



































InsCorp, Inc.

Consolidated Statements of Income

(000's)

(Unaudited)


















Change vs.


For the Three Months Ended


Twelve Months Ended



4Q24


3Q25


December 31,
2025


September 30,
2025


December 31,
2024


December 31,
2025


December 31,
2024
















Interest Income


10.3 %


-0.7 %


$          15,022


$          15,129


$          13,621


$          58,191


$          52,142

Interest Expense


5.6 %


-0.6 %


7,637


7,685


7,230


29,819


28,576

Net Interest Income


15.6 %


-0.8 %


7,385


7,444


6,391


28,372


23,566

Provision for Credit Losses


1337.8 %


1753.2 %


4,874


263


339


5,781


701

Noninterest Income















Deposit Account Service Charges


33.3 %


17.6 %


100


85


75


354


296

Bank Owned Life Insurance


6.9 %


0.9 %


108


107


101


418


392

Gains (losses), net


-80.2 %


350.0 %


(36)


(8)


(182)


(56)


(480)

Other


-219.5 %


-313.4 %


(508)


238


425


494


1,740

Total Noninterest Income


-180.2 %


-179.6 %


(336)


422


419


1,210


1,948
















Noninterest Expense















Salaries and Benefits


19.4 %


3.1 %


3,473


3,367


2,908


13,058


10,358

Occupancy and Equipment


16.2 %


-3.2 %


359


371


309


1,268


1,107

Data Processing


41.6 %


19.4 %


381


319


269


1,283


969

Marketing and Advertising


47.5 %


24.3 %


174


140


118


566


417

Other


25.3 %


-11.0 %


807


907


644


3,416


2,766

Total Noninterest Expense


22.3 %


1.8 %


5,194


5,104


4,248


19,591


15,617
















Income Before Income Taxes


-235.8 %


-220.8 %


(3,019)


2,499


2,223


4,210


9,196

Income Tax Expense


-601.1 %


-693.2 %


$          (1,388)


$              234


$              277


$             (174)


$           1,826

Net Income


-183.8 %


-172.0 %


$          (1,631)


$           2,265


$           1,946


$           4,384


$           7,370
















Basic Earnings per Share


-185.1 %


-172.2 %


$            (0.57)


$             0.79


$             0.67


$             1.52


$             2.55

Diluted Earnings per Share


-189.1 %


-175.0 %


$            (0.57)


$             0.76


$             0.64


$             1.45


$             2.46

































Change vs.


For the Three Months Ended


Twelve Months Ended

InsCorp, Inc.


4Q24


3Q25


December 31,
2025


September 30,
2025


December 31,
2024


December 31,
2025


December 31,
2024

ROAA


-154 bps


-159 bps


-0.66 %


0.93 %


0.88 %


0.46 %


0.87 %

ROAE


-1838 bps


-1953 bps


-8.04 %


11.49 %


10.34 %


5.62 %


10.04 %

ROATCE


-1883 bps


-1975 bps


-8.13 %


11.62 %


10.70 %


5.76 %


10.33 %

Net Interest Margin


12 bps


-5 bps


3.15 %


3.20 %


3.03 %


3.14 %


2.92 %

Efficiency


1194 bps


807 bps


72.71 %


64.64 %


60.77 %


65.92 %


60.08 %

Revenue / Employee


-8.9 %


-11.4 %


379


428


416


414


426

Expense / Employee


7.6 %


0.6 %


279


277


259


274


261

Assets / Employee


2.6 %


7.9 %


14,241


13,200


13,879




















INSBANK















ROAA


-155 bps


-160 bps


-0.48 %


1.12 %


1.07 %


0.66 %


1.08 %

ROAE


-1394 bps


-1485 bps


-4.43 %


10.42 %


9.51 %


6.02 %


9.49 %

Net Interest Margin


13 bps


-7 bps


3.30 %


3.37 %


3.17 %


3.31 %


3.13 %
















Capital Ratios















Tier-1 Leverage


-87 bps


-42 bps


10.66 %


11.08 %


11.53 %





Common Equity Tier-1


-93 bps


-108 bps


10.97 %


12.05 %


11.90 %





Total Risk-Based Capital


-97 bps


-116 bps


12.14 %


13.30 %


13.11 %





 

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SOURCE INSBANK