Market News
InsCorp Q3 Revenue Grows 12% as Board Declares $0.12 Dividend
Add Securities.io to your preferred sources on Google
InsCorp, Inc., the Nashville-based bank holding company for INSBANK, reported unaudited results on October 30, 2026 for the third quarter ended September 30, 2026, posting fully diluted earnings per share of $0.73 as revenue grew 12% year over year, and its board declared a quarterly cash dividend of $0.12 per common share, according to the company’s third-quarter earnings release.
Net income was $2.203 million in the third quarter of 2026, compared with $2.174 million in the second quarter of 2026 and $2.265 million in the third quarter of 2025. The diluted EPS figure compared with $0.72 in the prior quarter and $0.76 a year earlier; excluding the benefit associated with a federal tax credit purchase in the 2025 quarter, year-ago EPS was $0.66. For the first nine months of 2026, net income was $6.265 million versus $6.016 million in the same period of 2025, and diluted EPS was $1.45 versus $1.47.
InsCorp reported a return on average assets of 0.80%, a return on average tangible common equity of 10.78%, and an efficiency ratio of 64.44% for the quarter.
“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. He attributed the quarter’s increased operating leverage and pre-provision, pretax income to investments in personnel, new markets, and technologies over the last several quarters.
The company’s reported key ratios for the quarter and the two preceding comparison periods:
| Metric | 3Q26 | 2Q26 | 3Q25 |
|---|---|---|---|
| Return on average assets | 0.80% | 0.81% | 0.93% |
| Return on average equity | 10.64% | 10.82% | 11.46% |
| Return on average tangible common equity | 10.78% | 10.97% | 11.29% |
| Net interest margin | 3.18% | 3.18% | 3.20% |
| Efficiency ratio | 64.44% | 64.83% | 64.72% |
Revenue growth of 12% year over year against overhead growth of 11% produced pre-provision pretax income growth of 12% to $3.1 million, the company reported, and pre-provision income improved 20% on an annualized basis in the quarter, with expense growth representing 51% of revenue growth from the prior quarter and 64% year over year. Net interest income was $8.320 million, up 11.8% from a year earlier and 2.2% from the prior quarter. Noninterest income rose 7.8% to $455,000, driven by a 42.4% increase in deposit account service charges to $121,000. The provision for credit losses was $361,000, compared with $257,000 in the second quarter and $263,000 a year earlier.
Noninterest expense rose 11.3% year over year to $5.682 million, with salaries and benefits up 12.1% to $3.775 million. Associate growth slowed to one full-time employee in the quarter, though the timing of hires late in the second quarter contributed more meaningfully to third-quarter overhead, the company said. Excluding costs related to the Murfreesboro expansion, noninterest expense growth was 7% year over year, and noninterest expense was 1.99% of average assets versus 2.09% including those costs. Chief Operating Officer Scott Gupton said the company has visibility to greater operating leverage and efficiencies over the next couple of years, and that recent personnel additions will support sustainable growth while leaders across the organization integrate artificial intelligence to scale productivity.
Loan Growth Led by Construction, Residential, and Medquity
Average earning assets grew 13%, or $121 million, year over year, consisting primarily of average loan growth of 14%, or $112 million, with average deposits up 9%. Excluding growth associated with the bank’s entry into Murfreesboro in the third quarter of 2025, average earning assets, loans, and deposits rose 8%, 7%, and 4%, respectively. End-of-period loans of $948.303 million were up 17.3% from a year earlier. Construction and development loans grew 44% year over year, residential loans grew 26% (largely home equity lines), commercial real estate loans grew 13%, and commercial and industrial loans grew 14%.
Deposit and loan balances attributed to the Murfreesboro team were $55.8 million and $67.6 million at quarter-end, compared with $36.3 million and $50.3 million at the end of the second quarter. The expansion affected EPS by ($0.02) in the quarter, compared with a $0.01 contribution in the second quarter and ($0.15) for full-year 2025; the company said the linked-quarter change was primarily due to the timing of loan growth and provision expense late in the quarter. Noninterest-bearing and money market balances represented 84% of Murfreesboro-attributed deposits. Chief Banking Officer Billie Jo Parker said the quarter effectively marked the bank’s first full year of operations in Rutherford County.
Medquity, INSBANK’s healthcare division, originated $29 million of loans in the quarter, compared with $15 million in the second quarter and an average of $33 million over the trailing twelve months. Net of payoffs and participations sold, the Medquity portfolio grew 17% year over year, and its balances represented 28% of total loans; excluding Medquity, loan growth was 17% year over year and 21% on a linked-quarter basis. Medquity President Blake Wilson said the healthcare portfolio serves a nationwide market of industry providers.
Deposit Mix Shift, Stable Margin, and Capital Ratios
Total deposits were $944.771 million at September 30, 2026, up 13.6% from a year earlier. Non-maturity deposit balances increased 46% year over year, lifting the mix to 54% of deposits from 49% a quarter earlier and 42% a year earlier, while time deposits fell 10.0% to $435.341 million, a 46% share of deposits. The loan-to-deposit ratio was 100%, versus 97% a year ago. Chief Deposit Officer Andrew Smith said growing non-maturity and relationship deposits remains an important part of strengthening the bank’s funding profile.
The net interest margin was 3.18%, unchanged from the second quarter and down from 3.20% a year earlier. The loan yield was 6.56%, versus 6.64% in the prior quarter and 6.79% a year earlier, while the cost of deposits improved 15 basis points year over year to 3.21% and the cost of funds improved 17 basis points to 3.32%. The company said its sensitivity to future interest-rate changes was largely neutral at quarter-end, reflecting the improved non-maturity deposit mix and some use of interest rate derivatives. Chief Financial Officer Peyton Green said market-based interest rates advanced faster than the Fed Funds rate in 2026, offsetting the positive effect of low-yielding loans that re-priced higher during the first nine months of the year. “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,” Green said.
Net charge-offs were 0.00% of average loans on an annualized basis in the third quarter, as they were in the prior quarter and the year-ago quarter. Nonperforming loans and 90-day past dues represented 0.32% of loans, versus 0.25% a quarter earlier and 0.84% a year earlier, and the allowance for credit losses of 1.25% of loans, down 9 basis points year over year, represented 394% of nonperforming loans.
INSBANK’s tier-1 leverage, common equity tier-1, and total risk-based capital ratios were 10.21%, 10.83%, and 12.02% at quarter-end, levels the company said remain above “Well Capitalized” regulatory thresholds. InsCorp’s tangible common equity ratio was 7.04%, versus 8.14% a year earlier, and tangible book value per share declined 1% year over year to $26.20. Accumulated other comprehensive income was ($5.4 million), or 4.9% of bank-level Tier 1 capital of $111.5 million. Construction and development and commercial real estate balances represented 85% and 328% of total risk-based capital, versus 62% and 292% a year earlier. Total assets were approximately $1.12 billion at quarter-end, up 16.6% from a year earlier.
The board approved the quarterly dividend of $0.12 per common share, payable December 4, 2026 to shareholders of record on November 13, 2026. The annualized rate of $0.48 per share represents a 9% increase over the $0.44 per share paid in 2025. The company has not repurchased shares in 2026; it repurchased 59,000 shares, or 2.0% of prior year-end shares, in 2025, and its current program authorizes repurchases of 100,000 shares, or 3.4% of outstanding shares, through January 25, 2028.
InsCorp is a Tennessee bank holding company that owns INSBANK, which is headquartered in Nashville with offices in Brentwood and Murfreesboro. Alongside its commercial-focused operation, the bank operates two divisions: Medquity, which offers healthcare banking to physicians, partnerships, and practices nationwide, and Finworth, which offers nationally available virtual private client services for interest-bearing deposits. InsCorp shares trade on the OTCQX, and the company posts earnings materials, annual reports, and audited financial statements on its shareholder-relations page.
