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

Former Pinnacle Executive Billie Jo Parker Joins INSBANK as Chief Banking & Development Officer

Today, InsCorp, Inc. (OTCQX: IBTN) reported results for 2Q25, which reflected earnings per share (“EPS”) of $0.73 in the second quarter of 2025 (“2Q25”) compared to EPS of $0.57 in 1Q25 and $0.63 in 2Q24. “As the second quarter commenced, we anticipated an earnings inflection point given both expected growth and margin improvement,” said President and CEO of INSBANK, Jim Rieniets. “We're pleased that our team delivered on plans to leverage recent resource additions for a solid improvement in net income, ROA, and ROE. Barring unexpected volatility, we expect continued improvement in those metrics during the second half of the year, as well,” added Rieniets. InsCorp generated a ROA of 0.91%, ROATCE of 11.1% in 2Q25, and an efficiency ratio of 60.9% versus 0.74%, 9.0%, and 66.1%, respectively, in 1Q25, and 0.88%, 10.3%, and 59.2%, respectively, in 2Q24.

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Improved results in 2Q25 reflected an acceleration in revenue growth to $1,519,000, or 24%, Y/Y in 2Q25 vs. $789,000, or 13%, Y/Y in 1Q25, while overhead growth of $1,018,000, or 28%, Y/Y in 2Q25 declined slightly versus $1,040,000, or 29%, in 1Q25. Growth in salaries and benefits expense of $759,000, or 32%, Y/Y represented 75% of overhead growth in 2Q25 and was primarily a function of headcount growth of 15 associates (22% Y/Y). Five associates joined INSBANK in 2Q25, including former Pinnacle Financial Partners executive, Billie Jo Parker, who joined INSBANK as Chief Banking & Development Officer, a new senior management role for the company. Pretax, pre-provision income increased 20% Y/Y to $3,037,000 in 2Q25 in contrast to a decline of 10% Y/Y to $2,360,000 in 1Q25. Provision for credit losses of $380,000 in 2Q25 compared to $75,000 in 2Q24 and restrained pretax income growth to 8% Y/Y in 2Q25.

Net interest income comparisons improved for the fourth consecutive quarter since reaching a low in 2Q24.Net interest income increased 27% Y/Y (11% LQ) in 2Q25 vs. 15% Y/Y (+2% LQA) in 1Q25, as the NIM improved 34 bp Y/Y (+19 bp LQ) to 3.21% and average earning assets grew 13% Y/Y to $889 million in 2Q25. Earning asset growth resulted from average loan growth of 19% Y/Y to $804 million in 2Q25, which was partially offset by a decline in average liquidity assets of 23% Y/Y to $85 million in the quarter. Interest income growth of $1,752,000 Y/Y in 2Q25 accelerated compared to $1,028,000 Y/Y in 1Q25 and exceeded interest expense growth of $255,000 Y/Y in 2Q25 for the third consecutive quarterly period. The average loan yield improved to 6.76% (+3 bps Y/Y) while the cost of deposits decreased to 3.51% (-39 bp Y/Y) in 2Q25.

Loan growth increased to 17% Y/Y in 2Q25 versus 16% Y/Y in 1Q25. Growth in C&I (25% Y/Y), CRE (14% Y/Y), Residential (29% Y/Y), HELOC (68% Y/Y), and Multifamily (12% Y/Y) all contributed to Y/Y loan growth while C&D loans declined slightly (-4% Y/Y) in 2Q25. Growth in Residential and Multifamily loans primarily reflected migration from C&D over the past nine months. Medquity, INSBANK's healthcare business, posted loan growth of 18% Y/Y to $236 million in 2Q25, which compared to 16% Y/Y for the rest of the commercial bank (70% of total loans). Notwithstanding increased payoff activity in 2H25, growth in the loan commitment pipeline of 49% Y/Y and 21% LQ to $115 million should support double-digit asset growth through year-end. C&D and CRE balances represented 69% and 300% of total risk-based capital, respectively, vs. 87% and 307% a quarter ago.

Deposit growth of 18% Y/Y reflected strong growth in interest-bearing transaction balances of 42% and solid noninterest bearing deposit growth of 15% over the past year.Total CD balances increased by 7% year-over-year in 2Q25 and decreased to 60.4% of deposits, compared to 66.1% a year ago. Noninterest bearing and non-CD interest-bearing deposits represented 39.6% of deposits compared to 33.9% a year ago. Medquity's customer deposits increased 45% Y/Y to $58.0 million.

Asset quality measures remain healthy.Net chargeoffs represented 0.00% of average loans in 2Q25, 1Q25 and 2Q24. Nonperforming loans (“NPLs”) improved to 0.65% of loans vs. 0.66% a quarter ago and 1.08% a year ago. Virtually all NPLs are well-secured and collateralized by real estate with significant equity, for which specific reserves are relatively low. One well-collateralized real estate loan accounted for 63% of NPLs, or 0.41% of loans, at 2Q25-end. Loans 30 days past due represented 0.58% of loans at the end of 1Q25, versus 0.24% a quarter ago and 0.11% a year ago. The allowance for credit losses of 1.32% of loans (-3 bps Y/Y) represented 204% of NPLs vs. 196% a quarter ago and 125% a year ago.

Existing capital levels continue to support solid balance sheet growth.INSBANK remained “well capitalized” from a regulatory perspective with a tier-1 leverage ratio of 11.28%, a common equity tier-1 capital ratio of 12.01%, and a total risk-based capital ratio of 13.26%. InsCorp, Inc.'s tangible common equity ratio was 8.02% as of 2Q25-end vs. 8.01% a quarter ago and 8.61% a year ago. Tangible book value per share (“TBVPS”) increased 6.4%, or $1.59 per share, Y/Y to $26.48, as of June 30, 2025; TBVPS has increased by $9.20, or by 9.9% annualized since December 31, 2020. Accumulated Other Comprehensive Income was ($2,538,000), or approximately 2.4% of bank-level tier-1 capital of $104,992,000, as of June 30, 2025.

The bank announced the hiring of Billie Jo Parker, who fills the company's newest C-suite position as Chief Banking and Development Officer. Parker comes to INSBANK from Pinnacle Bank, where she served as Senior Vice President and Client Services Area Manager. Prior to Pinnacle, Parker led the Private Client Division for Metropolitan Bank. In this new role, she will be responsible for enterprise-wide guidance of the bank's sales and service functions. “As we continue to grow our business, the coordination of resources for business development and curating best-in-class client services necessitates a leadership partner for our business line executives and business development officers,” said Jim Rieniets, President and CEO of INSBANK. “I am thrilled to have Billie Jo join the INSBANK team in that capacity, given her track record of accomplishments and industry-wide reputation for leadership of high-performing teams,” Rieniets continued.

The Board of Directors approved the payment of a quarterly dividend of $0.11 per common share on September 5, 2025, to shareholders of record on August 15, 2025.The annualized quarterly dividend rate of $0.44 per share represents an increase of 10% compared to dividends of $0.40 per share paid in 2024. The Company repurchased 33,000 shares in 2Q25, or 1.1% of the outstanding share count as of March 31, 2025, leaving 52,500 shares, or 1.8% of the Company's outstanding shares, available for repurchase under the existing authorization, which expires on January 27, 2026. Since the authorization was approved, the Company has repurchased 2.5% of its outstanding shares over the past year.

About InsCorp, Inc. and INSBANK

Since 2000, INSBANK has offered clients highly personalized services provided by experienced relationship managers while positioning itself as an innovator, utilizing technologies to deliver those services efficiently and conveniently. In addition to its commercial-focused operation, INSBANK operates three divisions: Medquity, TMA Medical Banking, and Finworth. Medquity offers healthcare banking solutions to physicians, partnerships, and practices nationwide, while TMA Medical Banking provides banking services specifically to members of the Tennessee Medical Association. Finworth offers nationally available virtual private client services for interest-bearing deposits. InsCorp, Inc., a Tennessee bank holding company, owns INSBANK. InsCorp, Inc.'s shares are traded on the OTCQX under the ticker symbol IBTN. Headquartered in Nashville at 2106 Crestmoor Road, the bank has an office in Brentwood at 5614 Franklin Pike Circle. For more information, please visitwww.insbank.com.

Selected Performance Metrics Change vs. For the Three Months Ended Six Months EndedInsCorp, Inc. 2Q24 1Q25 June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024ROAA 2 bps 16 bps 0.91% 0.74% 0.88% 0.86% 0.92%ROAE 82 bps 212 bps 10.96% 8.83% 10.13% 9.91% 9.99%ROATCE 82 bps 215 bps 11.11% 8.96% 10.29% 10.05% 10.17%Net Interest Margin 34 bps 19 bps 3.21% 3.02% 2.87% 3.12% 2.86%Efficiency 168 bps -528 bps 60.86% 66.13% 59.18% 63.36% 60.11%Revenue / Employee -1.0% 2.4% 419 409 423 400 422Expense / Employee 1.5% -5.9% 254 270 251 253 247Assets / Employee -9.5% -6.8% 12,802 13,730 14,141 12,802 14,141Tangible Common Equity / Assets -59 bps 1 bps 8.02% 8.01% 8.61% 8.02% 8.61%INSBANKROAA 4 bps 17 bps 1.11% 0.94% 1.08% 1.07% 1.12%ROAE 76 bps 167 bps 10.14% 8.47% 9.39% 9.32% 9.36%Net Interest Margin 33 bps 20 bps 3.40% 3.20% 3.07% 3.30% 3.08%Capital RatiosTier-1 Leverage -38 bps -5 bps 11.28% 11.33% 11.66%Common Equity Tier-1 -51 bps 4 bps 12.01% 11.97% 12.52%Total Risk-Based Capital -51 bps 6 bps 13.26% 13.20% 13.77%InsCorp, Inc.Consolidated Balance Sheets(000's)(unaudited) Change: For the period ending: Y/Y YTD June 30, 2025 December 31, June 30, 2024 2024AssetsCash and Cash Equivalents 8.2% -12.0% $ 5,630 $ 6,401 $ 5,203Interest Bearing Deposits 4.7% 33.4% 49,593 37,175 47,383Securities -2.8% -3.4% 54,497 56,426 56,056Loans 16.6% 4.3% 797,935 764,795 684,533Allowance for Credit Losses 14.5% 6.6% (10,548) (9,895) (9,216)Net Loans 16.6% 4.3% 787,387 754,900 675,317Premises and Equipment, net 0.8% 1.8% 12,672 12,451 12,568Bank Owned Life Insurance 2.8% 1.4% 14,661 14,458 14,257Restricted Equity Securities 13.0% 3.7% 10,601 10,224 9,379Goodwill and Related Intangibles, net 0.0% 0.0% 1,091 1,091 1,091Other Assets -14.1% -0.9% 11,242 11,345 13,082Total Assets 13.5% 4.7% $ 947,374 $ 904,471 $ 834,336Liabilities and Shareholders' EquityLiabilitiesDepositsNoninterest Bearing 15.3% 4.9% $ 88,140 $ 84,017 $ 76,417Interest Bearing 18.3% 6.6% 710,740 666,466 600,949Total Deposits 17.9% 6.4% 798,880 750,483 677,366Federal Home Loan Bank Advances -24.4% -22.7% 34,000 44,000 45,000Subordinated Debentures 0.1% 0.1% 17,382 17,371 17,360Notes Payable 20.4% 31.4% 10,250 7,800 8,516Other Liabilities -25.8% -1.5% 9,851 9,998 13,283Total Liabilities 14.3% 4.9% 870,363 829,652 761,525Shareholders' EquityCommon Stock -3.3% -2.8% 28,565 29,395 29,544Accumulated Retained Earnings 14.0% 6.5% 50,984 47,891 44,704Accumulated Other Comprehensive Income 76.6% 2.9% (2,538) (2,467) (1,437)Total Stockholders' Equity 5.8% 2.9% 77,011 74,819 72,811Total Liabilities & Shareholders' Equity 13.5% 4.7% $ 947,374 $ 904,471 $ 834,336Tangible Book Value 6.4% 4.3% $ 26.48 $ 25.39 $ 24.89InsCorp, Inc.Consolidated Statements of Income(000's)(Unaudited) Change vs. For the Three Months Ended Six Months Ended 2Q24 1Q25 June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024Interest Income 13.8% 6.3% $ 14,448 $ 13,591 $ 12,696 $ 28,039 $ 25,259Interest Expense 3.6% 2.3% 7,329 7,167 7,074 14,496 14,044Net Interest Income 26.6% 10.8% 7,119 6,424 5,622 13,543 11,215Provision for Credit Losses 406.7% 44.5% 380 263 75 643 100Noninterest IncomeService Charges on Deposit Accounts 12.7% 0.0% 80 80 71 160 138Bank Owned Life Insurance 7.2% 4.0% 104 100 97 204 192Other 1.4% 20.6% 428 355 422 783 837Total Noninterest Income 3.7% 14.4% 612 535 590 1,147 1,167Noninterest ExpenseSalaries and Benefits 31.7% 2.9% 3,154 3,064 2,395 6,218 4,696Occupancy and Equipment 6.4% -0.9% 449 453 422 902 815Data Processing 5.9% -25.2% 107 143 101 250 195Marketing and Advertising 88.7% 14.5% 134 117 71 251 190Other 23.7% 3.4% 850 822 687 1,672 1,339Total Noninterest Expense 27.7% 2.1% 4,694 4,599 3,676 9,293 7,235Net Income from Operations 8.0% 26.7% 2,657 2,097 2,461 4,754 5,047Gain (Loss) in Interest Rate Hedges -80.6% 260.0% $ (18) $ (5) (93) (23) (345)Income Before Income Taxes 11.4% 26.1% 2,639 2,092 2,368 4,731 4,702Income Tax Expense -1.3% 23.0% $ (541) $ (440) (548) (981) (1,119)Net Income 15.3% 27.0% $ 2,098 $ 1,652 $ 1,820 $ 3,750 $ 3,583Earnings per Share 15.9% 28.1% $ 0.73 $ 0.57 $ 0.63 $ 1.30 $ 1.24

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SOURCE INSBANK

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