InsCorp’s Murfreesboro Bet Pays Off, Fueling Strong Q2 Earnings

NASHVILLE, TN – July 31, 2026 – InsCorp, Inc. (OTCQX: IBTN), the holding company for INSBANK, today delivered a set of second-quarter results that showcases a masterclass in strategic execution. The Nashville-based bank reported a robust 14% sequential increase in fully diluted earnings per share (EPS) to $0.72, signaling a powerful rebound in profitability. The standout success story, however, is the rapid success of its recent expansion into Murfreesboro, which achieved breakeven status far ahead of schedule, validating the bank's growth-oriented playbook.

In a move that will surely please shareholders, the company’s Board of Directors also declared a quarterly cash dividend of $0.12 per share. This brings the annualized dividend to $0.48, a 9% increase over 2025, underscoring management's confidence in sustained financial strength and its commitment to returning capital to investors.

“The quarter ended with improvement in key metrics including operating leverage, efficiency ratio, and return on equity, while core net interest margin was stable and consistent with our budget,” said Jim Rieniets, President and CEO of INSBANK. This performance comes as the bank balances aggressive growth initiatives with disciplined operational management, a critical balancing act in today's complex banking environment.

Murfreesboro: A Blueprint for Profitable Growth

The most compelling narrative from InsCorp's second quarter is the resounding success of its Murfreesboro expansion. Launched in the third quarter of 2025, the new market has not only started contributing to the bottom line but did so in just three quarters—a significant acceleration compared to internal projections.

“We were pleased to see continued growth from our team in Murfreesboro, and excited to share that on a direct expense and revenue basis we reached breakeven in 2Q26,” announced Peyton Green, CFO of INSBANK. “This accomplishment was achieved in just three quarters and is ahead of our internal projections.”

The financial impact of this rapid integration is striking. After being a drag on earnings in previous quarters—to the tune of ($0.06) per share in 1Q26 and ($0.15) for 2025—the Murfreesboro operation contributed a positive $0.01 to EPS in the second quarter. The division's balance sheet tells a story of solid customer acquisition, ending the quarter with $50.3 million in loans and $36.3 million in deposits. This success serves as a powerful testament to INSBANK's ability to identify promising markets, deploy experienced teams, and quickly establish a profitable foothold.

Fortifying the Core: Disciplined Loan and Deposit Management

Beyond the Murfreesboro headline, INSBANK’s core operations demonstrated impressive momentum. Average earning assets surged 16% year-over-year, propelled by 13% growth in average loans and 15% growth in average deposits. Even excluding the new Murfreesboro market, the bank’s organic growth remains solid, with loans and deposits up 8% and 10% year-over-year, respectively.

Loan growth was well-diversified across key commercial sectors. Commercial & industrial (C&I) loans grew 19% year-over-year, commercial real estate (CRE) by 10%, and home equity lines of credit (HELOC) saw a remarkable 143% surge. This targeted lending demonstrates the bank's deep integration into the region's economic activity. Chief Lending Officer Chad Hankins noted that despite increased loan payoff activity, “the loan pipeline remained healthy heading into the third quarter and supportive of solid growth in the second half of the year.”

On the other side of the ledger, INSBANK has skillfully managed its funding costs. The bank's cost of deposits improved to 3.20%, down from 3.31% in the prior quarter and 3.50% a year ago. This was achieved through a strategic shift in deposit mix. The bank has successfully grown its base of non-maturity deposits (such as checking and money market accounts), which now constitute 49% of average deposits, up from just 38% a year ago. This shift away from higher-cost CDs has helped stabilize the bank's net interest margin (NIM) at 3.18%, a figure that improves by 15 basis points on a linked-quarter basis when adjusted for one-off items from Q1.

Navigating Headwinds with Prudent Risk Management

In an era where investors are increasingly scrutinized bank balance sheets, INSBANK’s commitment to credit quality stands out. The bank reported zero net charge-offs for the third consecutive quarter, and nonperforming loans fell to a mere 0.25% of total loans, down from 0.65% a year prior. The allowance for credit losses now covers nonperforming loans by a robust 523%.

This pristine asset quality is no accident. It is the result of a deliberate and conservative underwriting philosophy. “While local economic indicators remain healthy, our underwriting practices continue to emphasize stress scenarios to ensure durability through a nationwide credit cycle, which is arguably long overdue,” stated Philip Fons, the bank’s Chief Credit Officer. This forward-looking approach to risk management positions INSBANK to weather potential economic turbulence.

The bank’s capital position remains a source of significant strength. It continues to be designated as “well capitalized” by regulators, with a tier-1 leverage ratio of 10.20% and a total risk-based capital ratio of 12.19%. This strong capital base not only provides a buffer against unforeseen losses but also gives the bank the flexibility to pursue further strategic growth opportunities as they arise.

Investing in Future Efficiency

The bank's rapid growth has necessitated strategic investments in talent. Noninterest expenses rose 18% year-over-year, driven primarily by a 15% increase in personnel costs associated with the Murfreesboro team and other key hires. While this pushed the efficiency ratio to 64.8%, up from 60.7% a year ago, it represents a necessary investment in the infrastructure required to support a larger, more complex institution.

Management is now focused on translating this investment into productivity gains. CEO Jim Rieniets stated, “Our expectations for the near-term include greater personnel leverage across both production and support teams.” With overhead expected to remain stable for the remainder of the year, the stage is set for INSBANK to improve its operating efficiency as its expanded team hits full stride, turning strategic investments into sustained shareholder value.