InsCorp, Inc. Reports Results for 3Q26
IBTN reports Revenue growth of 12% Y/Y for 3Q26; Declares cash dividend of
New client deposit and loan growth in
Growth in revenue of 12% Y/Y and overhead 11% Y/Y in 3Q26 resulted in pre-provision pretax income ("PPNR") growth of 12% Y/Y to
Noninterest expense growth of 11% Y/Y and LQA reflected an increase in personnel expense of 12% Y/Y (18% LQA) in 3Q26. Although associate growth slowed to one FTE in 3Q26 vs. 2Q26, the timing of new hires later in 2Q26 contributed more meaningfully to overhead expense in 3Q26 than in 2Q26. Excluding costs related to the
Average earning asset growth of 13%, or
Deposit growth of 14% Y/Y reflected interest-bearing transaction balance growth of 64% Y/Y in 3Q26. Non-maturity deposit balances, which include noninterest bearing, interest-bearing demand, and money market balances, increased 46% Y/Y, lifting the mix to 54% of deposits, up from 49% a quarter ago and 42% a year ago. "Growing non-maturity and relationship deposits remain an important part of strengthening the bank's funding profile," stated
INSBANK's sensitivity to future changes in interest rates was largely neutral at 3Q26-end. Continued improvement in the mix of non-maturity deposits to total deposits and some usage of interest rate derivatives were largely responsible for the reduction in sensitivity over the past two years. This change reflects that INSBANK's asset and liability re-pricing mismatch is short-lived and largely resolved within three months of a change in the Fed Funds rate. "Market-based interest rates advanced faster and more meaningfully than the Fed Funds rate in YTD26, which offset the positive effect of low-yielding loans that re-priced higher in the first nine months of the year," stated
Asset quality remained strong in 3Q26. Net chargeoffs ("NCOs") represented 0.00% of average loans on an annualized basis in 3Q26, 2Q26, 3Q25. Nonperforming loans and 90-day past dues ("NPLs") represented 0.32% of loans, as of 3Q26-end vs. 0.25% a quarter ago and 0.84% a year ago. Loans 30-89 days past due represented 0.12% of loans at 3Q26-end compared to 0.28% a quarter ago and 0.19% a year ago. The allowance for credit losses of 1.25% of loans (-9 bps Y/Y) represented 394% of NPLs.
INSBANK maintained solid capital cushions above "Well Capitalized" regulatory capital thresholds. Specifically, the tier-1 leverage, common equity tier-1 capital, and total risk-based capital ratios were 10.21%, 10.83%, and 12.02%, respectively, at quarter-end. InsCorp, Inc.'s tangible common equity ratio was 7.04% as of 3Q26-end vs. 8.14% a year ago. Tangible book value per share decreased 1% Y/Y to
The Board of Directors approved the payment of a quarterly dividend of
About InsCorp, Inc. and INSBANK
Since 2000, INSBANK has offered clients highly personalized services from experienced relationship managers, positioning itself as an innovator by leveraging technology to deliver those services efficiently and conveniently. In addition to its commercial-focused operation, INSBANK has two divisions: Medquity and Finworth. Medquity offers healthcare banking solutions to physicians, partnerships, and practices nationwide. Finworth offers nationally available virtual private client services for interest-bearing deposits. InsCorp, Inc., a
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InsCorp, Inc. |
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Consolidated Balance Sheets |
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(000's) |
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(Unaudited) |
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Change |
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For the period ending: |
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Y/Y |
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YTD |
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Assets |
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Cash and due from banks |
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4.9 % |
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8.4 % |
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$ 5,185 |
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$ 4,783 |
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$ 4,945 |
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Fed funds sold |
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-82.6 % |
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-63.1 % |
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676 |
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1,830 |
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3,876 |
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Interest bearing deposits with banks |
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11.0 % |
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-50.4 % |
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29,027 |
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58,495 |
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26,154 |
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Investment Securities |
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23.2 % |
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25.1 % |
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98,401 |
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78,684 |
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79,854 |
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Loans, net of unearned income |
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17.3 % |
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9.8 % |
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948,303 |
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863,868 |
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808,608 |
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Allowance for Credit Losses |
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9.0 % |
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9.8 % |
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(11,837) |
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(10,780) |
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(10,858) |
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Net loans |
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17.4 % |
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9.8 % |
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936,466 |
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853,088 |
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797,750 |
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Premises and equipment, net |
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-0.7 % |
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-0.7 % |
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12,772 |
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12,861 |
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12,868 |
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Accrued interest receivable |
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10.6 % |
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8.2 % |
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4,722 |
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4,364 |
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4,271 |
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Goodwill |
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0.0 % |
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0.0 % |
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1,091 |
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1,091 |
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1,091 |
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Other assets |
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8.2 % |
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-2.3 % |
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35,443 |
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36,281 |
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32,757 |
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Total Assets |
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16.6 % |
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6.9 % |
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$ 1,123,783 |
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$ 1,051,477 |
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$ 963,566 |
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Liabilities |
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Noninterest bearing deposits |
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1.2 % |
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6.0 % |
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$ 98,836 |
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$ 93,228 |
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$ 97,666 |
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Interest bearing demand deposits |
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38.0 % |
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40.8 % |
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37,824 |
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26,859 |
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27,413 |
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Savings and money market deposits |
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67.2 % |
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28.5 % |
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372,770 |
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290,184 |
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222,982 |
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Time deposits |
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-10.0 % |
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-10.5 % |
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435,341 |
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486,243 |
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483,783 |
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Total deposits |
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13.6 % |
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5.4 % |
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944,771 |
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896,514 |
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831,844 |
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Accrued expenses and other liabilities |
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-0.6 % |
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8.4 % |
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11,487 |
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10,596 |
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11,556 |
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Federal Home Loan Bank Advances |
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328.6 % |
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53.8 % |
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60,000 |
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39,000 |
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14,000 |
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Subordinated debentures |
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0.1 % |
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0.1 % |
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17,409 |
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17,393 |
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17,387 |
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Other borrowings |
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6.4 % |
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0.0 % |
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9,950 |
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9,950 |
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9,350 |
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Total Liabilities |
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18.0 % |
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7.2 % |
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1,043,617 |
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973,453 |
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884,137 |
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46.4 % |
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24.2 % |
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509,430 |
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410,271 |
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348,061 |
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Equity |
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Common stock |
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2.5 % |
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2.1 % |
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29,436 |
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28,833 |
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28,722 |
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Retained earnings |
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6.3 % |
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7.1 % |
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49,884 |
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46,581 |
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46,908 |
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Accumulated other comprehensive income (loss) |
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144.6 % |
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205.5 % |
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(5,420) |
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(1,774) |
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(2,216) |
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Net Income |
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4.2 % |
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42.9 % |
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6,266 |
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4,384 |
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6,015 |
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Total Equity |
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0.9 % |
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2.7 % |
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80,166 |
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78,024 |
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79,429 |
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Total Liabilities & Equity |
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16.6 % |
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6.9 % |
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$ 1,123,783 |
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$ 1,051,477 |
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$ 963,566 |
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Tangible Book Value per Share |
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-0.7 % |
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1.3 % |
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$ 26.20 |
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$ 25.87 |
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$ 26.38 |
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InsCorp, Inc. |
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Consolidated Statements of Income |
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(000's) |
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(Unaudited) |
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Change vs. |
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For the Three Months Ended |
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Nine Months Ended |
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3Q25 |
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2Q26 |
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Interest Income |
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10.2 % |
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2.5 % |
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$ 16,671 |
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$ 16,259 |
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$ 15,128 |
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$ 49,410 |
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$ 43,168 |
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Interest Expense |
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8.7 % |
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2.9 % |
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8,351 |
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8,118 |
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7,685 |
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24,600 |
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22,181 |
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Net Interest Income |
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11.8 % |
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2.2 % |
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8,320 |
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8,141 |
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7,443 |
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24,810 |
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20,987 |
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Provision for Credit Losses |
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37.3 % |
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40.5 % |
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361 |
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257 |
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263 |
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1,015 |
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906 |
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Noninterest Income |
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Deposit Account Service Fees |
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42.4 % |
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2.5 % |
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121 |
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118 |
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85 |
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345 |
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254 |
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Bank Owned Life Insurance |
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5.6 % |
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2.7 % |
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113 |
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110 |
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107 |
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330 |
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311 |
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Gains (losses), net |
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-225.0 % |
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-225.0 % |
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10 |
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(8) |
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(8) |
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99 |
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(21) |
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Other |
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-11.3 % |
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80.3 % |
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211 |
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117 |
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238 |
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(289) |
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1,002 |
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Total Noninterest Income |
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7.8 % |
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35.0 % |
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455 |
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337 |
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422 |
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485 |
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1,546 |
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Noninterest Expense |
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Salaries and Benefits |
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12.1 % |
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4.4 % |
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3,775 |
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3,616 |
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3,367 |
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10,933 |
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9,585 |
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Occupancy and Equipment |
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-4.9 % |
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-6.9 % |
|
353 |
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379 |
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371 |
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1,117 |
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909 |
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Data Processing |
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12.2 % |
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-6.3 % |
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358 |
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382 |
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319 |
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1,170 |
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902 |
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Marketing and Advertising |
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-7.1 % |
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4.8 % |
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130 |
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124 |
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140 |
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349 |
|
391 |
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Other |
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17.7 % |
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3.4 % |
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1,066 |
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1,031 |
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906 |
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2,940 |
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2,609 |
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Total Noninterest Expense |
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11.3 % |
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2.7 % |
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5,682 |
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5,532 |
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5,103 |
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16,509 |
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14,396 |
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Income Before Income Taxes |
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9.3 % |
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1.6 % |
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2,732 |
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2,689 |
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2,499 |
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7,771 |
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7,231 |
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Income Tax Expense |
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126.1 % |
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2.7 % |
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$ 529 |
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$ 515 |
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$ 234 |
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$ 1,506 |
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$ 1,215 |
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Net Income |
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-2.7 % |
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1.3 % |
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$ 2,203 |
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$ 2,174 |
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$ 2,265 |
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$ 6,265 |
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$ 6,016 |
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Basic Earnings per Share |
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-3.8 % |
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1.3 % |
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$ 0.76 |
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$ 0.75 |
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$ 0.79 |
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$ 1.51 |
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$ 1.52 |
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Diluted Earnings per Share |
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-3.9 % |
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1.4 % |
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$ 0.73 |
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$ 0.72 |
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$ 0.76 |
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$ 1.45 |
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$ 1.47 |
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Change vs. |
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For the Three Months Ended |
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Nine Months Ended |
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InsCorp, Inc. |
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3Q25 |
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2Q26 |
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ROAA |
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-13 bps |
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-1 bps |
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0.80 % |
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0.81 % |
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0.93 % |
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0.78 % |
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0.86 % |
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ROAE |
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-82 bps |
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-18 bps |
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10.64 % |
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10.82 % |
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11.46 % |
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10.38 % |
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10.44 % |
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ROATCE |
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-50 bps |
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-19 bps |
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10.78 % |
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10.97 % |
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11.29 % |
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10.52 % |
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10.59 % |
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Net Interest Margin |
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-2 bps |
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0 bps |
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3.18 % |
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3.18 % |
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3.20 % |
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3.23 % |
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3.14 % |
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Efficiency |
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-28 bps |
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-39 bps |
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64.44 % |
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64.83 % |
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64.72 % |
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65.17 % |
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63.80 % |
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Revenue / Employee |
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-0.9 % |
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0.3 % |
|
424 |
|
422 |
|
428 |
|
425 |
|
426 |
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Expense / Employee |
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-1.1 % |
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-0.5 % |
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274 |
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276 |
|
277 |
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277 |
|
272 |
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Assets / Employee |
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3.6 % |
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2.0 % |
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13,676 |
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13,412 |
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13,200 |
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INSBANK |
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ROAA |
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-15 bps |
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-2 bps |
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0.97 % |
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0.99 % |
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1.12 % |
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0.95 % |
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1.06 % |
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ROAE |
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-56 bps |
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-14 bps |
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9.83 % |
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9.97 % |
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10.39 % |
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9.65 % |
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9.69 % |
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Net Interest Margin |
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-4 bps |
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-1 bps |
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3.33 % |
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3.34 % |
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3.37 % |
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3.38 % |
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3.32 % |
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Capital Ratios |
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Tier-1 Leverage |
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-87 bps |
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1 bps |
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10.21 % |
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10.20 % |
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11.08 % |
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Common Equity Tier-1 |
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-122 bps |
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-18 bps |
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10.83 % |
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11.01 % |
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12.05 % |
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Total Risk-Based Capital |
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-128 bps |
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-17 bps |
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12.02 % |
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12.19 % |
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13.30 % |
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View original content to download multimedia:https://www.prnewswire.com/news-releases/inscorp-inc-reports-results-for-3q26-302925144.html
SOURCE INSBANK
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