WINNEBAGO, Ill., July 21, 2025 (GLOBE NEWSWIRE) -- Foresight Financial Group, Inc. (OTCQX: FGFH) reported net income of $2.99 million for the quarter ended June 30, 2025, an 8% decrease compared to the $3.27 million reported for the second quarter of 2024, and a 307% increase compared to the $734 thousand reported for the first quarter of 2025. Diluted Earnings per Share for the second quarter was $0.82 compared to $0.94 for the second quarter of 2024 and $0.20 for the quarter ended March 31, 2025. The second quarter of 2025 results include $1.56 million of charter consolidation expenses, which were partially offset by nonrecurring revenue of $1.20 million related to a debit card branding agreement. The second quarter results produced a Return on Average Equity of 7.60% and Return on Average Assets of 0.75%.
Net income for the six months ended June 30, 2025 decreased 45% to $3.72 million compared to $6.77 million for the first half of 2024. The decrease in net income reflects a $1.33 million increase in provision for loan losses, a $1.96 million impairment charge related to other investments and $1.88 million of charter consolidation expenses. Diluted Earnings per share for the first six months of 2025 was $1.03 compared to $1.94 for the half of 2024.
Foresight CEO Peter Q. Morrison stated, "The legal consolidation of our Company's six banking charters occurred on May 1, 2025, and the conversions of operating systems to a single platform is on track to be completed in the third and fourth quarters of this year. The charter consolidation is expected to provide significant savings via the elimination of duplicative expenses and efficiencies gained by operating under one banking platform. These efficiencies combined with more consistent credit administration practices gained through the charter consolidation will improve credit quality, earnings, and shareholder value."
Net interest income for the second quarter of 2025 increased by $588 thousand, or 5%, to $12.95 million as compared to $12.36 million for the second quarter of 2024; and increased by $685 thousand, or 6%, compared to the quarter ended March 31, 2025. The net interest margin on a fully taxable equivalent basis increased to 3.40% compared to 3.24% in the second quarter of 2024; and 3.25% for the quarter ended March 31, 2025.
Net interest income for the six months ended June 30, 2025, increased $740 thousand, or 3%, to $25.21 million compared to $24.47 million in the first six months of 2024. The net interest margin on a fully taxable equivalent basis was 3.29% for the first six months of 2025.
Total loans increased by $29.27 million during the quarter to $1.13 billion as of June 30, 2025 compared to $1.10 billion as of March 31, 2025; and increased $8.3 million as compared to total loans as of June 30, 2024. Total deposits decreased by $8.8 million during the second quarter to $1.38 billion as of June 30, 2025; and increased by $11.5 million as compared to total deposits as of June 30, 2024.
The provision for loan losses for the quarter ended June 30, 2025 increased by $100 thousand to $238 thousand as compared to $138 thousand in the second quarter of the prior year; and decreased by $1.06 million compared to the first quarter of 2025. During the second quarter of 2025 loan net charge-offs totaled $2.93 million. The provision for loan losses for the six months ended June 30, 2025 was $1.54 million, a $1.33 million increase over the provision expense for the first half of 2024.
Total non-performing assets of the Company as of June 30, 2025 were $28.29 million compared to $29.71 million the previous quarter, and $21.40 million as of June 30, 2024. The ratio of non-performing assets to total assets equaled 1.76% as of June 30, 2025 compared to 1.83% as of March 31, 2025 and 1.34% as of June 30, 2024.
Noninterest income for the quarter ended June 30, 2025 increased $1.35 million to $3.0 million compared to $1.66 million in the second quarter of the prior year. The increase is primarily attributable to $1.2 million of non-recurring revenue received under a debit card branding agreement.
Noninterest income for the six months ended June 30, 2025 increased by $1.61 million to $4.95 million compared to $3.33 million the first half of 2024. This increase includes the $1.2 million non-recurring revenue received under the debit card branding agreement.
Noninterest expenses for the quarter ended June 30, 2025 totaled $11.95 million, a $2.31 million increase over $9.64 million in the second quarter of 2024; and a $234 thousand decrease from the quarter ended March 31, 2025. The increase in operating expenses over the second quarter of 2024 includes $1.56 million in charter consolidation expenses, including $57 thousand in salary and benefits, $143 thousand in outside services and $1.36 million in other expenses, which is primarily related to data system conversions.
Noninterest expense for the six months ended June 30, 2025 increased by $5.34 million to $24.13 million compared to $18.79 million the first half of 2024. This increase in noninterest expense includes $1.88 million in charter consolidation expenses and a $1.96 million impairment charge related to a nonmarketable equity investment.
The closing price for the Company's stock was $31.50, as of the close of business April 16, 2025. Tangible book value per share of the Company's common stock increased by $1.78 and $2.82 to $44.37 as of June 30, 2025, compared to $42.59 and $41.55 as of December 31, 2024 and June 30, 2024, respectively. The tangible book value per share of the Company's common stock, excluding Accumulated Other Comprehensive Income was $52.43 as of June 30, 2025, compared to $51.79 at the end of 2024 and $51.36 as of June 30, 2024.
About Foresight Financial Group, Inc.
Foresight Financial Group, Inc. is a bank holding company headquartered in Winnebago County, Illinois and is the parent company of Foresight Bank, which operates in Northern Illinois under its divisional names Northwest Bank of Rockford, State Bank in Freeport, State Bank of Davis, German American State Bank in German Valley, Winnebago and Pecatonica, Lena State Bank, and the State Bank of Herscher. Foresight's common stock is listed on the "OTCQX" market under the trading symbol FGFH.
Forward-Looking Statements
When used in this communication, the words "believes," "expects," "likely", "would", and similar expressions are intended to identify forward-looking statements. The Company's actual results may differ materially from those described in the forward-looking statements. Factors which could cause such a variance to occur include, but are not limited to: heightened competition; adverse state and federal regulation; failure to obtain new or retain existing customers; ability to attract and retain key executives and personnel; changes in interest rates; unanticipated changes in industry trends; unanticipated changes in credit quality and risk factors, including general economic conditions particularly in the Company's markets; potential deterioration in real estate values, success in gaining regulatory approvals when required; changes in the Federal Reserve Board monetary policies; unexpected outcomes of new and existing litigation in which the Company, or its subsidiaries, officers, directors or employees is named defendants; technological changes; changes in accounting principles generally accepted in the United States; changes in assumptions or conditions affecting the application of "critical accounting policies"; inability to recover previously recorded losses as anticipated, and the inability of third party vendors to perform critical services for the Company or its customers. The inclusion of forward-looking information should not be construed as a representation by the Company or any person that future events or plans contemplated by the Company will be achieved. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information or otherwise.
| Peter Morrison | Todd James |
| Chief Executive Officer | Chief Financial Officer |
| (815) 847-7500 | (815) 847-7500 |
| Foresight Financial Group, Inc. and Subsidiaries | |||||||
| Consolidated Balance Sheets | |||||||
| June 30, 2025 and December 31, 2024 | |||||||
| (Unaudited) | |||||||
| June 30, | December 31, | ||||||
| Assets | 2025 | 2024 | |||||
| (in thousands, except per share data) | |||||||
| Cash and due from banks | $ | 28,002 | $ | 16,905 | |||
| Interest-bearing deposits in banks | 13,025 | 45,357 | |||||
| Federal funds sold | 787 | 1,738 | |||||
| Total cash and cash equivalents | 41,814 | 64,000 | |||||
| Interest-bearing deposits in banks - term deposits | 2,259 | 4,434 | |||||
| Debt securities: | |||||||
| Debt securities available-for-sale (AFS) | 361,146 | 369,945 | |||||
| Debt securities held-to-maturity (HTM) | 3,263 | 3,263 | |||||
| Marketable equity securities and other investments | 5,446 | 7,592 | |||||
| Loans held for sale | 480 | 852 | |||||
| Loans, net of allowance for credit losses | 1,116,498 | 1,100,657 | |||||
| Foreclosed assets and other real estate owned, net | 703 | - | |||||
| Premises and equipment, net | 16,889 | 17,125 | |||||
| Bank owned life insurance | 24,646 | 24,459 | |||||
| Other assets | 37,870 | 40,892 | |||||
| Total assets | $ | 1,611,014 | $ | 1,633,219 | |||
| Liabilities and Stockholders' Equity | |||||||
| Liabilities: | |||||||
| Deposits: | |||||||
| Noninterest-bearing | $ | 247,002 | $ | 249,076 | |||
| Interest-bearing | 1,136,961 | 1,151,627 | |||||
| Total deposits | 1,383,963 | 1,400,703 | |||||
| Federal funds purchased | - | 5,804 | |||||
| Securities sold under agreements to repurchase | 12,466 | 15,017 | |||||
| Federal Home Loan Bank (FHLB) and other borrowings | 39,889 | 40,911 | |||||
| Accrued interest payable and other liabilities | 14,737 | 17,386 | |||||
| Total liabilities | 1,451,055 | 1,479,821 | |||||
| Stockholders' equity: | |||||||
| Preferred stock | - | - | |||||
| Common stock | 1,062 | 1,060 | |||||
| Additional paid-in capital | 16,704 | 16,482 | |||||
| Retained earnings | 187,237 | 184,961 | |||||
| Treasury stock, at cost | (16,013 | ) | (16,008 | ) | |||
| Accumulated other comprehensive loss | (29,031 | ) | (33,097 | ) | |||
| Total stockholders' equity | 159,959 | 153,398 | |||||
| Total liabilities and stockholders' equity | $ | 1,611,014 | $ | 1,633,219 | |||
| Foresight Financial Group, Inc. and Subsidiaries | |||||||
| Consolidated Statements of Income | |||||||
| (Unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2025 | 2024 | ||||||
| (in thousands, except per share data) | |||||||
| Interest and dividend income: | |||||||
| Loans, including fees | $ | 34,657 | $ | 34,092 | |||
| Debt securities: | |||||||
| Taxable | 4,059 | 3,578 | |||||
| Tax-exempt | 802 | 831 | |||||
| Interest-bearing deposits in banks and other | 933 | 1,099 | |||||
| Federal funds sold | 8 | 69 | |||||
| Total interest income | 40,459 | 39,669 | |||||
| Interest expense: | |||||||
| Deposits | 14,464 | 14,329 | |||||
| Federal funds purchased | 2 | 28 | |||||
| Securities sold under agreements to repurchase | 111 | 218 | |||||
| FHLB and other borrowings | 669 | 621 | |||||
| Total interest expense | 15,246 | 15,196 | |||||
| Net interest income | 25,213 | 24,473 | |||||
| Provision for credit losses | 1,536 | 202 | |||||
| Net interest and dividend income, | |||||||
| after provision for credit losses | 23,677 | 24,271 | |||||
| Noninterest income: | |||||||
| Customer service fees | 893 | 684 | |||||
| Loss on sales and calls of AFS securities, net | 0 | -111 | |||||
| Gain on sale of loans, net | 163 | 287 | |||||
| Loan servicing fees, net | 535 | 155 | |||||
| Bank owned life insurance | 334 | 379 | |||||
| ATM / interchange fees | 1,049 | 1,057 | |||||
| Other | 1,971 | 882 | |||||
| Total noninterest income | 4,945 | 3,333 | |||||
| Noninterest expenses: | |||||||
| Salaries and employee benefits | 12,610 | 11,985 | |||||
| Occupancy expense of premises, net | 1,398 | 1,225 | |||||
| Outside services | 1,088 | 765 | |||||
| Data processing | 1,936 | 1,432 | |||||
| Foreclosed assets and other real estate owned, net | 0 | 6 | |||||
| Other | 7,096 | 3,372 | |||||
| Total noninterest expenses | 24,128 | 18,785 | |||||
| Income before income taxes | 4,494 | 8,819 | |||||
| Income tax expense | 772 | 2,045 | |||||
| Net income | $ | 3,722 | $ | 6,774 | |||
| Earnings per common share: | |||||||
| Basic | $ | 1.03 | $ | 1.95 | |||
| Diluted | $ | 1.03 | $ | 1.94 | |||
| Foresight Financial Group, Inc. and Subsidiaries | |||||||||||||||||||
| Consolidated Condensed Statements of Income | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Interest and dividend income: | |||||||||||||||||||
| Loans, including fees | $ | 17,739 | $ | 16,918 | $ | 17,249 | $ | 17,943 | $ | 17,394 | |||||||||
| Interest on investment securities | 2,394 | 2,467 | 2,269 | 2,183 | 2,236 | ||||||||||||||
| Interest on fed funds sold and other deposits | 285 | 656 | 818 | 573 | 625 | ||||||||||||||
| Total interest income | 20,418 | 20,041 | 20,336 | 20,699 | 20,255 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Deposits | 7,099 | 7,365 | 7,641 | 7,885 | 7,448 | ||||||||||||||
| Federal funds purchased | - | 5 | 7 | 29 | 8 | ||||||||||||||
| Securities sold under agreements to repurchase | 39 | 72 | 132 | 134 | 103 | ||||||||||||||
| FHLB and other borrowings | 331 | 335 | 328 | 365 | 335 | ||||||||||||||
| Total interest expense | 7,469 | 7,777 | 8,108 | 8,413 | 7,894 | ||||||||||||||
| Net interest income | 12,949 | 12,264 | 12,228 | 12,286 | 12,361 | ||||||||||||||
| Provision for credit losses | 238 | 1,298 | 665 | 185 | 138 | ||||||||||||||
| Net interest income after provision for loan losses | 12,711 | 10,966 | 11,563 | 12,101 | 12,223 | ||||||||||||||
| Noninterest income: | |||||||||||||||||||
| Customer service fees | 551 | 342 | 371 | 366 | 342 | ||||||||||||||
| Net securities gains (losses) | - | - | - | - | - | ||||||||||||||
| Gain on sale of loans, net | 26 | 137 | 182 | 303 | 183 | ||||||||||||||
| Loan servicing fees, net | 226 | 309 | 192 | (98 | ) | 86 | |||||||||||||
| Bank owned life insurance | 177 | 157 | 160 | 571 | 163 | ||||||||||||||
| ATM / debit card revenue | 555 | 494 | 539 | 547 | 550 | ||||||||||||||
| Other | 1,468 | 503 | 429 | 298 | 334 | ||||||||||||||
| Total noninterest income | 3,003 | 1,942 | 1,873 | 1,987 | 1,658 | ||||||||||||||
| Noninterest expenses: | |||||||||||||||||||
| Salaries and employee benefits | 6,408 | 6,202 | 6,383 | 6,302 | 6,230 | ||||||||||||||
| Occupancy expense of premises, net | 796 | 602 | 587 | 592 | 587 | ||||||||||||||
| Outside services | 422 | 666 | 435 | 411 | 391 | ||||||||||||||
| Data processing | 1,205 | 731 | 968 | 788 | 716 | ||||||||||||||
| Foreclosed assets and other real estate owned, net | - | - | - | 6 | 6 | ||||||||||||||
| Other | 3,116 | 3,980 | 1,878 | 1,759 | 1,709 | ||||||||||||||
| Total noninterest expenses | 11,947 | 12,181 | 10,251 | 9,858 | 9,639 | ||||||||||||||
| Income before income taxes | 3,767 | 727 | 3,185 | 4,230 | 4,240 | ||||||||||||||
| Income tax expense | 779 | (7 | ) | 692 | 833 | 975 | |||||||||||||
| Net income | $ | 2,988 | $ | 734 | $ | 2,493 | $ | 3,397 | $ | 3,265 | |||||||||
| Foresight Financial Group, Inc. and Subsidiaries | |||||||||||||||||||
| Consolidated Balance Sheets | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| As of | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 28,002 | $ | 19,996 | $ | 16,905 | $ | 30,162 | $ | 21,290 | |||||||||
| Interest-bearing deposits in banks | 13,025 | 46,118 | 45,357 | 20,040 | 11,196 | ||||||||||||||
| Federal funds sold | 787 | 452 | 1,738 | 2,183 | 3,433 | ||||||||||||||
| Total cash and cash equivalents | 41,814 | 66,566 | 64,000 | 52,385 | 35,919 | ||||||||||||||
| Interest-bearing deposits in banks - term deposits | 2,259 | 2,466 | 4,434 | 5,169 | 4,983 | ||||||||||||||
| Debt securities: | |||||||||||||||||||
| Debt securities available-for-sale (AFS) | 361,146 | 380,667 | 369,945 | 368,386 | 359,762 | ||||||||||||||
| Debt securities held-to-maturity (HTM) | 3,263 | 3,263 | 3,263 | 3,616 | 3,609 | ||||||||||||||
| Marketable equity securities and other investments | 5,446 | 5,671 | 7,592 | 6,738 | 6,215 | ||||||||||||||
| Loans held for sale | 480 | 573 | 852 | 794 | 480 | ||||||||||||||
| Loans, net of allowance for credit losses | 1,116,498 | 1,084,761 | 1,100,657 | 1,102,342 | 1,107,199 | ||||||||||||||
| Foreclosed assets and other real estate owned, net | 703 | - | - | - | 68 | ||||||||||||||
| Premises and equipment, net | 16,889 | 16,978 | 17,125 | 17,125 | 17,234 | ||||||||||||||
| Bank owned life insurance | 24,646 | 24,615 | 24,459 | 24,300 | 24,653 | ||||||||||||||
| Other assets | 37,870 | 40,519 | 40,892 | 39,350 | 39,550 | ||||||||||||||
| Total assets | $ | 1,611,014 | $ | 1,626,079 | $ | 1,633,219 | $ | 1,620,205 | $ | 1,599,672 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing | $ | 247,002 | $ | 250,709 | $ | 249,076 | $ | 237,685 | $ | 244,414 | |||||||||
| Interest-bearing | 1,136,961 | 1,142,009 | 1,151,627 | 1,138,578 | 1,128,081 | ||||||||||||||
| Total deposits | 1,383,963 | 1,392,718 | 1,400,703 | 1,376,263 | 1,372,495 | ||||||||||||||
| Federal funds purchased | - | 55 | 5,804 | 4,764 | 6,053 | ||||||||||||||
| Securities sold under agreements to repurchase | 12,466 | 21,095 | 15,017 | 23,381 | 21,930 | ||||||||||||||
| Federal Home Loan Bank (FHLB) and other borrowings | 39,889 | 37,810 | 40,911 | 39,174 | 39,293 | ||||||||||||||
| Accrued interest payable and other liabilities | 14,737 | 16,670 | 17,386 | 16,970 | 16,674 | ||||||||||||||
| Total liabilities | 1,451,055 | 1,468,348 | 1,479,821 | 1,460,552 | 1,456,445 | ||||||||||||||
| Stockholders' equity: | |||||||||||||||||||
| Preferred stock | - | - | - | - | - | ||||||||||||||
| Common stock | 1,062 | 1,060 | 1,060 | 1,060 | 1,022 | ||||||||||||||
| Additional paid-in capital | 16,704 | 16,482 | 16,482 | 16,445 | 11,660 | ||||||||||||||
| Retained earnings | 187,237 | 184,972 | 184,961 | 183,118 | 180,346 | ||||||||||||||
| Treasury stock, at cost | (16,013 | ) | (16,008 | ) | (16,008 | ) | (16,008 | ) | (16,008 | ) | |||||||||
| Accumulated other comprehensive loss | (29,031 | ) | (28,775 | ) | (33,097 | ) | (24,963 | ) | (33,793 | ) | |||||||||
| Total stockholders' equity | 159,959 | 157,731 | 153,398 | 159,653 | 143,227 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,611,014 | $ | 1,626,079 | $ | 1,633,219 | $ | 1,620,205 | $ | 1,599,672 | |||||||||
| KEY FINANCIAL RATIOS | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| As of and for the Quarter Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Basic earnings per common share | $ | 0.83 | $ | 0.20 | $ | 0.69 | $ | 0.97 | $ | 0.95 | |||||||||
| Diluted earnings per common share | 0.82 | 0.20 | 0.69 | 0.97 | 0.94 | ||||||||||||||
| Dividends per common share | 0.20 | 0.18 | 0.18 | 0.18 | |||||||||||||||
| Book value per common share | 44.41 | 43.84 | 42.63 | 44.38 | 41.59 | ||||||||||||||
| Tangible book value per common share | 44.37 | 43.80 | 42.59 | 44.34 | 41.55 | ||||||||||||||
| Tangible book value, excluding AOCI, per share | 52.43 | 51.80 | 51.79 | 51.28 | 51.36 | ||||||||||||||
| End of period shares outstanding | 3,606,087 | 3,598,042 | 3,598,042 | 3,597,418 | 3,443,937 | ||||||||||||||
| Average number of shares outstanding | 3,606,137 | 3,598,042 | 3,597,478 | 3,494,270 | 3,450,527 | ||||||||||||||
| Return on average assets | 0.75% | 0.21% | 0.58% | 0.82% | 0.82% | ||||||||||||||
| Return on average equity | 7.60% | 2.18% | 6.08% | 8.83% | 9.40% | ||||||||||||||
| Net interest margin, tax equivalent | 3.40% | 3.25% | 3.14% | 3.21% | 3.24% | ||||||||||||||
| Efficiency ratio, tax equivalent | 73.61% | 83.72% | 72.58 | 68.97 | 68.13 | ||||||||||||||
| ASSET QUALITY DATA | |||||||||||||||||||
| (Unaudited) | As of | ||||||||||||||||||
| (Amounts in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Nonaccrual Loans | 25,939 | 28,564 | 28,175 | 23,653 | 21,366 | ||||||||||||||
| Accruing loans past due 90 days or more | 688 | 185 | 230 | 680 | 32 | ||||||||||||||
| Total non-performing loans | 26,627 | 28,749 | 28,405 | 24,333 | 21,398 | ||||||||||||||
| Other real estate owned and other assets | 703 | 6 | 13 | 7 | - | ||||||||||||||
| Impaired other investments | 961 | 961 | - | - | - | ||||||||||||||
| Total non-performing Assets | 28,291 | 29,716 | 28,418 | 24,340 | 21,398 | ||||||||||||||
| Total Loans | 1,130,124 | 1,100,853 | 1,115,351 | 1,117,022 | 1,121,742 | ||||||||||||||
| Allowance for credit losses | 13,626 | 16,092 | 14,694 | 14,678 | 14,543 | ||||||||||||||
| Loans, net of allowance for credit losses | 1,116,498 | 1,084,761 | 1,100,657 | 1,102,344 | 1,107,199 | ||||||||||||||
| Nonperforming assets tototal assets | 1.76% | 1.83% | 1.74% | 1.50% | 1.34% | ||||||||||||||
| Nonperforming loans to total loans | 2.36% | 2.61% | 2.55% | 2.18% | 1.91% | ||||||||||||||
| Allowance for credit losses to total loans | 1.21% | 1.46% | 1.32% | 1.31% | 1.30% | ||||||||||||||
| Allowance for credit losses to noperforming loans | 51.17% | 55.97% | 51.73% | 60.32% | 67.96% | ||||||||||||||
