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InsCorp, Inc. Reports Results for 2025 and 4Q25

InsCorp, Inc. (OTCQX: IBTN) recently disclosed its financial results for the year ending December 31, 2025, as well as for the fourth quarter of that year. The results reflect a turbulent period marked by an unfortunate incident of loan fraud affecting the company’s operations. Despite these challenges, InsCorp has managed to maintain its forward momentum, indicating a robust performance in other areas.

Financial Overview

In 2025, InsCorp recorded earnings per share (EPS) of $1.52, down from $2.55 in 2024. The fourth quarter of 2025 saw EPS drop to ($0.57) compared to $0.67 in the same quarter of the previous year. A significant factor impacting these figures was a pretax loss of $4,948,584 from loan fraud, which was fully charged off by the end of Q4 2025. President and CEO Jim Rieniets emphasized that this fraudulent incident was an isolated case and had no broader implications for the company’s business model.

InsCorp’s return on assets (ROA) decreased to 0.46% in 2025, down from 0.87% in 2024, with the fraud incident accounting for a 0.41% reduction of ROA. Despite this, the bank remains steadfast in its strategy, focusing on sustainable growth, thanks to a strong influx in loan and deposit pipelines throughout the year.

Growth Amid Challenges

The fourth quarter brought a surge in client deposits and loans, particularly through the newly opened branch in Murfreesboro. From the Murfreesboro team, deposits soared to approximately $28 million and loans reached $23 million by year-end, a remarkable rise from previous quarter figures. Billie Jo Parker, Chief Banking Officer, asserted that the expansion into this dynamic market has been successful, emphasizing a seamless cultural integration with the existing teams at InsCorp.

Impressively, the company’s loan pipeline saw a 35% year-over-year increase, including about $50 million in approved loans ready to fund in the first quarter of 2026. Chief Lending Officer Chad Hankins underscored the positive momentum, particularly noting loan growth of 7% compared to previous quarters. This reflects InsCorp’s readiness to capitalize on upcoming market opportunities, especially in the Nashville area.

Financial Indicators

Despite the impact of the fraud, InsCorp's revenue grew by 16% year-on-year, although this was tempered by a 25% rise in overhead costs associated with its expansion strategy. Meanwhile, net interest income surged by 20% in 2025, driven largely by a growth in loan originations. Unfortunately, this growth was partially negated by a substantial drop in noninterest income.

In the final quarter, net interest income reached $7.4 million, driven by growth in average earning assets and an expansion of the net interest margin. However, an anticipated squeeze on margins is expected in the first quarter of 2026 as adjustments following recent Federal Reserve rate changes continue to stabilize.

Looking Ahead

In response to the fraud incident, InsCorp is working closely with independent auditors to validate the integrity of its portfolio. The company has maintained solid asset quality measures, with net chargeoffs linked solely to the fraudulent loan. As the board welcomes Nancy Schultz to its ranks, adding valuable healthcare industry insights, they have also approved a quarterly dividend increase, reflecting a commitment to shareholder value.

Moving forward into 2026, InsCorp is positioned to recover and grow, expecting strong performance driven by its strategic focus on enhancing client services and operational efficiencies. Despite the financial setbacks from the fraudulent incident, InsCorp stands resilient, committed to executing its vision for sustained growth and profitability in the years ahead.