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InsCorp, Inc. Reports Improved Operating Leverage and EPS Growth in 2Q25

InsCorp, Inc., listed on OTCQX under the ticker IBTN, has published its results for the second quarter of 2025, showcasing strong business performance. The key highlight is the reported earnings per share (EPS) of $0.73, demonstrating a tangible increase from $0.57 in the previous quarter and $0.63 in the same period last year. This encouraging trend indicates a solid earnings inflection point that management had anticipated at the beginning of the quarter.

Jim Rieniets, President and CEO of INSBANK, expressed satisfaction with the results, stating that the growth in EPS was propelled by both anticipated growth and margin improvements. The bank has managed to leverage its recent resource additions effectively, resulting in improved metrics across the board including net income, return on assets (ROA), and return on equity (ROE).

The second quarter saw a notable ROA at 0.91% and a return on average tangible common equity (ROATCE) of 11.1%. These metrics signify an upward trajectory compared to the previous quarter’s ratios of 0.74% and 9.0%, respectively. The efficiency ratio also improved to 60.9%, contrasted against 66.1% from last quarter and displaying the company’s commitment to enhancing operational efficiency.

Operating results in Q2 2025 reflected an impressive 24% year-over-year increase in revenue, amounting to $1,519,000. This is a substantial rise in comparison to $789,000, a growth of 13%, recorded in the first quarter of 2025. While overhead costs also rose, increasing to $1,018,000 or 28% year-over-year, this growth was a slight decline from an increase of 29% in the previous quarter.

Within the overhead growth, the salaries and benefits expense surged by 32%, highlighting a pivotal recruitment strategy that added 15 new associates—a 22% increase year-over-year. Among the new hires, former executive Billie Jo Parker from Pinnacle Financial Partners stepped into a newly created role as Chief Banking Development Officer. This strategic addition aims to enhance the bank’s capacity for handling business development and client services effectively.

Net income on a pre-tax, pre-provision basis climbed by 20% year-over-year, reaching $3,037,000 for Q2 2025, a revival from the 10% decline noted previously. However, the provision for credit losses increased to $380,000 from $75,000 in the prior year, causing the pretax income growth to be slightly restrained at 8% year-over-year.

Moreover, the bank showed progress in net interest income, with a 27% increase year-over-year, reaching $7,119,000. This contrasts with $6,424,000 from last quarter and $5,622,000 from the previous year. The net interest margin (NIM) improved to 3.21%, benefitting from a significant rise in average earning assets, which grew by 13% year-over-year.

The bank's loan portfolio expanded, with loans growing by 17% year-over-year, supported by notable increases in consumer and commercial loans across various segments. Noteworthy inflation in healthcare-related loans through Medquity, INSBANK’s healthcare division, recorded an 18% year-over-year growth, signifying its strong performance sector.

Deposit growth maintained a healthy trajectory, increasing by 18% year-over-year, facilitated by gaining more interest-bearing transaction balances. The substantial rise in deposits is indicative of the bank’s growing customer base and trust within the community.

On the quality front, asset quality remained commendable with minimal net charge-offs, reflecting sound credit risk management practices. The net charge-offs represented 0.00% of average loans, and nonperforming loans (NPLs) improved slightly, holding steady at 0.65%.

Amid these robust performance indicators, INSBANK remains well-capitalized under regulatory frameworks, boasting solid capital ratios along with a tangible book value per share (TBVPS) which has seen a 6.4% increase year-over-year to $26.48. This reflects effective capital resilience, allowing it to continue its growth trajectory.

The management's outlook remains positive. With the successful hiring of Billie Jo Parker, the institution aims to coordinate better resources for business development and enhance client services. Rounding off the success in Q2, the Board also approved a quarterly dividend of $0.11 per share, marking a 10% increase over previous dividends, which signals ongoing financial health.

In summary, InsCorp, Inc. has positioned itself for continued financial growth as it continues to enhance its operational capacity and strengthen its core banking services. The latest results underscore the bank’s strategic planning in hiring top talent, refining operational efficiencies, and applying effective risk management practices to sustain and improve its long-term profitability.