InsCorp, Inc. Reports Results for 3Q26

InsCorp posts 12% revenue growth, stable EPS, and raises dividend for 4Q26.

What the company is saying

InsCorp, Inc. (OTCQX:IBTN) emphasizes consistent financial growth and operational stability in its 3Q26 results, highlighting a 12% year-over-year revenue increase and a fully diluted EPS of $0.73. The company frames its narrative around steady margin performance, risk discipline, and tangible book value compounding, with President and CEO Jim Rieniets stressing the benefits of prior investments in personnel, new markets, and technology. The Murfreesboro expansion is presented as a strategic success, with deposit and loan balances rising sharply, though management is transparent about its short-term negative EPS impact. Executives cite operating leverage improvements, integration progress, and a bullish outlook for the Murfreesboro market. The dividend increase to $0.12 per share for 4Q26 and the 9% annualized hike are highlighted as signals of confidence. Segment leaders, including Medquity’s president, underscore the value of specialized lending and diversification. The tone is measured but optimistic, with forward-looking statements focused on efficiency gains and sustainable growth.

What the data suggests

The numbers confirm strong operational momentum: revenue grew 12% year-over-year, and pre-provision pretax income (PPNR) also rose 12% to $3.1 million. EPS was $0.73 in 3Q26, up from $0.72 in 2Q26 and $0.66 in 3Q25 when adjusted for a one-time tax credit. Average earning assets increased 13% ($121 million), loans 14% ($112 million), and deposits 9% year-over-year. The Murfreesboro expansion drove deposit balances to $55.8 million and loans to $67.6 million at quarter-end, up from $27.5 million and $22.9 million at 4Q25-end, but reduced EPS by $0.02 in 3Q26. Noninterest income rose 8% to $455,000, with deposit service charges up 42% to $121,000. Noninterest expense grew 11%, mainly from personnel costs, but excluding Murfreesboro, expense growth was 7%. Medquity originated $29 million in loans, and its portfolio grew 17% year-over-year. Asset quality remains strong: net chargeoffs were 0.00%, NPLs were 0.32% of loans, and the allowance for credit losses was 1.25% of loans (394% of NPLs). Tangible book value per share fell 1% to $26.20. The dividend increase to $0.48 annualized (from $0.44) is supported by these results. The company’s disclosures are detailed and comprehensive, with no material gaps.

Analysis

The announcement is highly factual, with nearly all key claims supported by detailed, realised financial and operational data for 3Q26. Revenue, EPS, PPNR, loan and deposit growth, and segment performance are all quantified and compared to prior periods. Forward-looking statements are present but limited in number and scope, focusing on general optimism, future efficiencies, and ongoing integration, rather than making outsized promises. The only forward-looking items of note are the declared dividend (payable within weeks), the annualized dividend rate, and the share repurchase authorization, all of which are standard for a quarterly update and not promotional. There is no evidence of exaggerated tone or narrative inflation; the language is proportionate to the results. No large capital outlay is paired with long-dated, uncertain returns, and the Murfreesboro expansion's impact is transparently disclosed. The gap between narrative and evidence is minimal.

Risk flags

• ●Rising noninterest expense, particularly personnel costs (up 12% year-over-year and 18% annualized), could pressure margins if revenue growth slows. The company attributes some of this to timing of new hires, but sustained cost growth remains a risk.
• ●Tangible book value per share declined 1% year-over-year to $26.20, and the tangible common equity ratio fell to 7.04% from 8.14%. This erosion, though modest, signals some capital pressure that could limit flexibility if asset quality deteriorates.
• ●The Murfreesboro expansion, while driving strong loan and deposit growth, had a negative EPS impact of $0.02 in 3Q26. Continued expansion or integration missteps could further dilute near-term earnings.
• ●Concentration in commercial real estate (CRE) and construction & development (C&D) loans remains high, at 328% and 85% of total risk-based capital, respectively. This exposes the bank to sector-specific downturns, despite current strong asset quality.
• ●Accumulated Other Comprehensive Income was negative $5.4 million, or 4.9% of Tier 1 capital, reflecting unrealized losses that could impact regulatory capital if realized.

Bottom line

InsCorp, Inc. delivered a solid 3Q26, with 12% revenue growth, stable EPS, and robust loan and deposit expansion, especially from the Murfreesboro market. The company’s capital and credit metrics remain sound, and the dividend increase signals management’s confidence in ongoing performance. However, rising expenses, a slight decline in tangible book value, and high CRE/C&D loan concentrations introduce real risks if credit conditions worsen or cost discipline slips. The Murfreesboro expansion is a growth driver but continues to weigh on near-term earnings. Investors should focus on whether margin stability and operating leverage improvements persist, and whether capital ratios stabilize. The most important takeaway is that InsCorp is executing on growth while maintaining credit quality, but must manage expense growth and sector exposures to sustain shareholder value.

Announcement summary

(OTCQX:IBTN) InsCorp, Inc. reported third quarter 2026 results, with revenue growth of 12% year-over-year for 3Q26. Fully diluted earnings per share (EPS) were $0.73 in 3Q26, compared to $0.72 in 2Q26 and $0.76 in 3Q25; excluding a federal tax credit purchase in 3Q25, EPS was $0.66 in 3Q25. The company declared a cash dividend of $0.12 per common share for 4Q26, payable December 4, 2026, to shareholders of record on November 13, 2026. The annualized dividend rate of $0.48 per share is a 9% increase from $0.44 per share paid in 2025. Average earning assets grew 13% year-over-year, or $121 million, with average loan growth of 14% ($112 million) and average deposit growth of 9% in 3Q26. Excluding the Murfreesboro expansion, average earning assets, loans, and deposits increased 8%, 7%, and 4% year-over-year, respectively. Murfreesboro team deposit and loan balances were $55.8 million and $67.6 million at 3Q26-end, up from $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, $0.01 in 2Q26, ($0.06) in 1Q26, and ($0.15) in 2025. Noninterest bearing and money market balances represented 84% of Murfreesboro deposits. Pre-provision pretax income (PPNR) grew 12% year-over-year to $3.1 million in 3Q26, with PPNR improving 20% annualized in the quarter. Net interest income grew 12% year-over-year and 9% LQA in 3Q26. Noninterest income increased 8% year-over-year to $455,000, driven by a 42% increase in deposit account service charges to $121,000. Noninterest expense grew 11% year-over-year, with personnel expense up 12% year-over-year (18% LQA). Excluding Murfreesboro costs, noninterest expense growth was 7% year-over-year. Noninterest expense was 2.09% of average assets in 3Q26; excluding Murfreesboro, it was 1.99%. 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. Medquity's portfolio grew 17% year-over-year (flat LQ) in 3Q26. Deposit growth was 14% year-over-year, with interest-bearing transaction balances up 64% year-over-year. Non-maturity deposit balances increased 46% year-over-year, making up 54% of deposits, up from 49% a quarter ago and 42% a year ago. CD balances declined 10% year-over-year and 11% LQ, now 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. The net interest margin (NIM) was 3.18% in 3Q26, unchanged from 2Q26 and compared to 3.20% in 3Q25. Loan yield was 6.56% in 3Q26, down from 6.64% in 2Q26 and 6.79% in 3Q25. The yield on securities and short-term liquidity was 4.48% in 3Q26. The cost of deposits and cost of funds improved 15 bps and 17 bps year-over-year to 3.21% and 3.32%, respectively. Net chargeoffs were 0.00% of average loans annualized in 3Q26. Nonperforming loans and 90-day past dues were 0.32% of loans at 3Q26-end, up from 0.25% a quarter ago and down from 0.84% a year ago. Loans 30-89 days past due were 0.12% of loans at 3Q26-end. The allowance for credit losses was 1.25% of loans, representing 394% of NPLs. Tier-1 leverage, common equity tier-1, and total risk-based capital ratios were 10.21%, 10.83%, and 12.02% at quarter-end. Tangible common equity ratio was 7.04% at 3Q26-end, down from 8.14% a year ago. Tangible book value per share decreased 1% year-over-year to $26.20 as of September 30, 2026. C&D and CRE balances represented 85% and 328% of total risk-based capital, respectively. 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 company has not repurchased shares in 2026, but repurchased 59,000 shares (2.0% of prior year-end shares) in 2025. The current repurchase program authorizes up to 100,000 shares (3.4% of outstanding shares) through January 25, 2028. Key executives quoted include Jim Rieniets (President and CEO), Billie Jo Parker (Chief Banking Officer), Scott Gupton (Chief Operating Officer), Blake Wilson (President of Medquity), Andrew Smith (Chief Deposit Officer), and Peyton Green (Chief Financial Officer).

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