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INSBANK Expands into High-Growth Murfreesboro Market, Bolsters Team
NASHVILLE, Tenn., Oct. 31, 2025 – InsCorp, Inc. (OTCQX: IBTN) reported its Q3 2025 results today, showcasing a promising trajectory with earnings per share (EPS) climbing to $0.79, a notable increase from $0.73 in Q2 2025 and $0.64 in Q3 2024. This performance reflects the bank’s strategic initiatives and operational efficiency.
“Our team’s focused efforts have driven substantial growth on both sides of our balance sheet, maintaining solid margins,” commented Jim Rieniets, President and CEO of INSBANK. “We’ve entered Q4 with significant momentum, fueled by robust loan and deposit pipelines and the imminent deployment of key technology solutions designed to enhance our future performance. We’re particularly pleased to deliver higher net income while making significant investments in our operational infrastructure.”
Key performance indicators for the quarter include a Return on Assets (ROA) of 0.93%, a Return on Tangible Common Equity (ROATCE) of 11.6%, and an efficiency ratio of 64.6%. These metrics represent improvements compared to Q2 2025 (0.91%, 11.1%, and 60.7%, respectively) and Q3 2024 (0.87%, 10.0%, and 62.3%, respectively), underlining INSBANK’s enhanced profitability and operational effectiveness.
INSBANK’s strategic move into the rapidly expanding Murfreesboro market during Q3 2025, marked by the addition of four seasoned banking professionals, signals a calculated bet on future growth.
The dedicated team brings a combined 70+ years of experience in Rutherford County, reinforcing INSBANK’s commitment to local expertise. Market President Chad Hill, a Murfreesboro resident and banker for over two decades, will lead the expansion.
“The Murfreesboro team aligns perfectly with our strategic vision,” Rieniets stated. “We’re pairing top-tier bankers in a market proximate to Nashville with a dedicated commercial and private banking model. The client response has been overwhelmingly positive, resulting in approximately $14.5 million in deposits and $11.7 million in loans in the past 45 days, largely onboarded in October. This expansion is anticipated to significantly contribute to our long-term returns and growth, given Rutherford County’s dynamic growth.”
Rutherford County’s population has surged 13.4% in the last five years to 387,310 and is projected to climb another 7.6% between 2026 and 2031. The median household income, currently at $92,908, is also expected to rise by 14.1% over the same period, indicating a robust economic environment.
Revenue saw an impressive 18% year-over-year (Y/Y) increase, reaching $7.9 million in Q3 2025. However, noninterest expenses also increased, rising by 24% Y/Y to $5.1 million, primarily attributable to strategic hiring initiatives, including the Murfreesboro market entry. Salaries and benefits accounted for 63% of the overhead growth, reflecting an 18% increase in headcount year-over-year. Despite increased expenses, pretax, pre-provision income rose by 9% Y/Y to $2.8 million, highlighting continued operational profitability. A one-time energy investment tax credit further bolstered net income by approximately $278,000.
INSBANK’s net interest income has shown consistent improvement for five consecutive quarters since its low point in Q2 2024. The net interest income grew by 25% year-over-year (Y/Y) and 4.6% linked-quarter (LQ), which mirrors an expansion in the net interest margin of 25 basis points (bps) Y/Y and flat LQ, settling at 3.20%. Average earning asset growth of 15% Y/Y to $926 million in Q3 2025 has also contributed to this growth. The growth stemmed from average loan growth of 17% Y/Y to $811 million during Q3 2025 and growth in average liquidity assets of 2% Y/Y (+30% LQ) to $115 million in the quarter. Interest income increased $1.9 million Y/Y in Q3 2025, compared to interest expense growth of $0.4 million Y/Y. In Q3 2025, the average income on loans was 6.79% (-14 bp Y/Y, +3 bps LQ) compared to the cost of deposits of 3.46% (-40 bp Y/Y, -4 bp LQ).
Loan growth across INSBANK’s portfolio remains strong, increasing by 15% Y/Y in Q3 2025. Growth in Commercial and Industrial (C&I) loans (22% Y/Y), Commercial Real Estate (CRE) loans (16% Y/Y), residential loans (41% Y/Y), Home Equity Lines of Credit (HELOC) (55% Y/Y), and Multi-family loans (12% Y/Y) all contributed to the yearly loan growth, while Construction and Development (C&D) loans declined (-21% Y/Y) in 3Q25. Medquity, INSBANK’s dedicated healthcare banking division, experienced a deceleration in loan growth with only 7% Y/Y, totaling $228 million during Q3 2025, in comparison to 18% Y/Y. The banking slowdown reflects an increase in payoffs in the quarter coupled with delays of loan closings, but which are anticipated in 4Q25. For the commercial bank (which represents 70% of total loans), excluding Medquity, experienced loan growth of 19% Y/Y in Q3 2025. While loan growth slowed to only 5% on linked-quarter annualized (LQA) in 3Q25 versus 7% LQA and 10% LQA in previous quarters, the outlook for loan growth remains bright, because the loan pipeline increased approximately 25% Y/Y to a record level. C&D and CRE balances accounted for 62% and 292% of total risk-based capital.
The 16% Y/Y in deposit growth is consistent with that of prior years. There has been significant growth in interest-bearing transaction balances of 31%. Total CD balances grew 10% Y/Y in Q3 2025 and decreased to 58% of deposits compared to 60%. Non-interest bearing and interest-bearing demand deposits comprised 42% of all deposits. Medquity’s deposits increase 28% to $57 million from the same period last year.
Asset quality measures remain healthy, with net charge-offs at 0.00% of average loans for the past three quarters (3Q25, 2Q25, and 3Q24). Nonperforming loans (NPLs) stood at 0.75% of loans, compared to 0.65% a quarter ago and 1.10% a year ago. The largest NPL, a well-collateralized real estate loan, accounted for 53% of NPLs. Additionally, INSBANK maintained a stable capital position, exceeding regulatory requirements.
INSBANK’s remained welled capitalized, with a tier-1 leverage ratio of 11.08%, a common equity tier-1 capital ratio of 12.05%, and a total risk-based capital ratio of 13.30%. InsCorp, Inc.’s tangible common equity ratio was 8.14% as of 3Q25-end, compared to 8.02% a quarter ago and 8.42% a year ago. In September, TBVPS increased 6.1% to approximately $27.29.
The Board of Directors approved the payment of a quarterly dividend of $0.11 per share to all shareholders on record as of November 14, 2025, and will be distributed on December 5, 2025. The annualized quarterly dividend rate is $0.44 a share. While the Company did not make any stock repurchases this quarter, 59,000 shares, or 2.0% of the prior year’s share count, have been repurchased in 2025.
About InsCorp, Inc. and INSBANK
Since 2000, INSBANK serves its clients with personalized service while also utilizing technologies to enhance its services. Along with its core commercial business focuses, INSBANK has three other sectors: Medquity, TMA Medical Banking, and Finworth. INSBANK is headquartered in Nashville, TN and has two other branches in Brentwood and Murfreesboro.
|
Selected Performance Metrics |
Change vs. |
For the Three Months Ended |
Nine Months Ended |
|||||||||||
|
InsCorp, Inc. |
3Q24 |
2Q25 |
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
|||||||
|
ROAA |
6 bps |
2 bps |
0.93 % |
0.91 % |
0.87 % |
0.86 % |
0.87 % |
|||||||
|
ROAE |
163 bps |
51 bps |
11.46 % |
10.95 % |
9.83 % |
10.44 % |
9.93 % |
|||||||
|
ROATCE |
165 bps |
50 bps |
11.62 % |
11.12 % |
9.97 % |
10.59 % |
10.08 % |
|||||||
|
Net Interest Margin |
25 bps |
0 bps |
3.20 % |
3.20 % |
2.95 % |
3.14 % |
2.89 % |
|||||||
|
Efficiency |
232 bps |
391 bps |
64.64 % |
60.73 % |
62.32 % |
63.77 % |
59.82 % |
|||||||
|
Revenue / Employee |
-0.3 % |
0.9 % |
433 |
430 |
435 |
424 |
438 |
|||||||
|
Expense / Employee |
4.4 % |
7.6 % |
281 |
261 |
269 |
271 |
266 |
|||||||
|
Assets / Employee |
-6.2 % |
6.5 % |
13,383 |
12,562 |
14,268 |
|||||||||
