Foresight Financial Group, Inc.: Foresight Reports 2026 First Quarter Results

WINNEBAGO, Ill., April 13, 2026 (GLOBE NEWSWIRE) -- Foresight Financial Group, Inc. (OTCQX: FGFH) reported net income of $3.89 million for the quarter ended March 31, 2026, a 429% increase compared to $735 thousand reported for the first quarter of 2025, and a 53% increase compared to $2.54 million reported for the most recent quarter ended December 31, 2025.

Diluted Earnings per Share for the first quarter of 2026 were $1.07 compared to $0.20 for the first quarter of 2025 and $0.70 for the most recent quarter ended December 31, 2025. The first quarter of 2026 results produced a Return on Average Equity of 9.13% and a Return on Average Assets of 0.95%

The increase in earnings compared to the first quarter of 2025 included $2.07 million, or 17%, growth in net interest income and a 1.67 million, or 14%, reduction in non-interest expense. The reduction in non-interest expense was due primarily to non-recurring expenses incurred in the prior year's first quarter, including $313 thousand of charter consolidation expense and a $1.96 million impairment charge related to a non-marketable equity investment.

The increase in earnings compared to the most recent quarter ended December 31, 2025 was primarily the result of reduced non-interest expense due to non-recurring items in the fourth quarter of 2025, which included $197 thousand of charter consolidation expense and a $961 thousand impairment charge related to a non-marketable equity investment.

"We are delighted with our results for the first quarter," said Peter Morrison, the Company's CEO. "With the charter consolidation and related expenses behind us, the Company is beginning to realize the benefits of the significant work that went into the process. In addition to consolidating charters, we simultaneously strengthened our credit administration practices, aligned and broadened our product and services offerings, expanded corporate treasury management services, launched a proprietary commercial credit card, created a Private Banking division, and will be expanding our wealth management capabilities. We believe the strategic investments we have made will continue to be accretive to earnings and are central to delivering a modern, comprehensive and competitive banking experience across all our markets, benefiting the Company and its shareholders as well as our customers, employees and the communities we serve," added Morrison.

Net interest income for the first quarter of 2026 increased by $2.07 million, or 17%, to $14.34 million as compared to $12.26 million for the first quarter of 2025, and increased by $35 thousand compared to the most recent quarter ended December 31, 2025.

The taxable equivalent net interest margin increased to 3.65% compared to 3.13% in the first quarter of 2025 and 3.52% for the quarter ended December 31, 2025. The growth in net interest income compared to the first quarter of 2025 was driven by improvements in the net interest margin and reflects a twenty-four basis point increase in yield on earning assets and a thirty-nine basis point decrease in the cost of interest-bearing liabilities.

Total loans held for investment decreased by $14.3 million during the quarter to $1.126 billion as of March 31, 2026 compared to $1.141 billion as of December 31, 2025, and increased by $25.4 million, or 2%, compared to March 31, 2025.

Total deposits increased by $110.1 million to $1.539 billion as of March 31, 2026 compared to $1.429 billion as of December 31, 2025, and increased by $145.9 million compared to March 31, 2025. Total deposits as of March 31, 2026 and December 31, 2025 included large short-term deposits that were reduced immediately after each quarter end. Total average deposits for the quarter ended March 31, 2026 equaled $1.435 billion, compared to $1.447 billion for the quarter ended December 31, 2025 and $1.398 billion for the quarter ended March 31, 2025.

The provision for loan losses for the quarter ended March 31, 2026 decreased by $737 thousand to $561 thousand, compared to $1.30 million for the first quarter of 2025, and decreased by $211 thousand as compared to $772 thousand in the fourth quarter of 2025.

Total non-performing assets as of March 31, 2026 were $16.08 million, compared to $29.7 million as of March 31, 2025, and $15.3 million as of December 31, 2025. The ratio of non-performing assets to total assets declined to 0.91%, from 1.83% as of March 31, 2025 and 0.92% at year-end 2025.

Non-interest income for the quarter ended March 31, 2026 decreased by $62 thousand to $1.88 million compared to $1.94 million in the first quarter of 2025, and increased by $110 thousand compared to the most recent quarter ended December 31, 2025. The decrease compared to the first quarter of 2025 reflects a $333 thousand decrease in loan servicing fees due to changes in the fair value of the originated mortgage servicing rights, which offset growth in customer service fees, card interchange and other income.

Non-interest expense for the quarter ended March 31, 2026 totaled $10.52 million, a $1.66 million decrease from $12.18 million in the first quarter of 2025, and a $1.35 million decrease from the most recent quarter ended December 31, 2025. The decrease in non-interest expense compared to the first quarter of 2025 reflects the non-recurring expenses incurred in the first quarter of 2025, which included $313 thousand of charter consolidation expenses and a $1.96 million impairment charge related to a nonmarketable equity investment. The $1.35 million reduction in non-interest expense compared to the most recent quarter ended December 31, 2025 was due to non-recurring expenses in the fourth quarter of 2025, including $197 thousand related to the charter consolidation and a $961 thousand impairment charge related to a non-marketable equity investment.

The closing price for the Company's stock was $45.50 as of the close of business April 10, 2026. Tangible Book Value per Share of the Company's common stock increased by $0.77 and $4.15 to $47.95, compared to $47.18 as of December 31, 2025, and $43.80 as of March 31, 2025, respectively. The Tangible Book Value per Share, excluding accumulated other comprehensive income, increased $0.86 to $53.98 as of March 31, 2026, compared to $53.12 at the end of 2025.

About Foresight Financial Group, Inc.

Foresight Financial Group, Inc. is a the largest 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 traded 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.

FOR INFORMATION CONTACT:
	Peter Morrison	Todd James
	Chief Executive Officer	Chief Financial Officer
	[phone]	[phone]

Foresight Financial Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
	March 31,				December 31,
Assets	2026				2025
	(in thousands, except per share data)
Cash and due from banks	-	18,696			-	15,844
Interest-bearing deposits in banks		118,000				11,254
Federal funds sold		3,900				775
Total cash and cash equivalents		140,596				27,873
Debt Securities:
Available-for-sale (AFS)		426,198				428,688
Held-to-maturity (HTM)		2,378				2,378
Marketable equity securities and other investments		4,420				4,427
Loans held for sale		352				1,549
Loans, net of allowance for credit losses		1,113,139				1,127,617
Premises and equipment, net		17,622				17,855
Bank owned life insurance		25,144				24,979
Other assets		32,840				33,281
Total assets	-	1,762,689			-	1,668,647
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing	-	226,404			-	219,275
Interest-bearing		1,312,249				1,209,276
Total deposits		1,538,653				1,428,551
Federal funds purchased		-				-
Securities sold under agreements to repurchase		-				-
Federal Home Loan Bank (FHLB) and other borrowings		36,668				53,429
Accrued interest payable and other liabilities		14,302				16,405
Total liabilities		1,589,623				1,498,385
Preferred stock		-
Common stock		1,063				1,063
Additional paid-in capital		16,734				16,720
Retained earnings		193,037				189,941
Treasury stock, at cost		(16,013	-			(16,013	-
Accumulated other comprehensive loss		(21,755	-			(21,449	-
Total stockholders' equity		173,066				170,262
Total liabilities and stockholders' equity	-	1,762,689			-	1,668,647

Foresight Financial Group, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
	Three Months Ended March 31,
	2026				2025
	(in thousands, except per share data)
Interest and dividend income:
Interest and fees on Loans	-	17,668			-	16,918
Interest on investment securities		3,233				2,591
Interest on fed funds sold and other deposits		168				532
Total interest income		21,069				20,041
Interest expense:
Deposits		6,442				7,366
Federal funds purchased		1				2
FHLB and other borrowings		288				409
Total interest expense		6,731				7,777
Net interest income		14,338				12,264
Provision for credit losses		561				1,298
Net interest and dividend income,
after provision for credit losses		13,777				10,966
Noninterest income:
Customer service fees		497				341
Net securities gains (losses)		(44	-			-
Gain on sale of loans, net		129				138
Loan servicing fees, net		-24				309
Bank owned life insurance		165				157
Card interchange fees		553				495
Other		605				503
Total noninterest income		1,881				1,943
Noninterest expenses:
Salaries and employee benefits		6,587				6,203
Occupancy expense of premises, net		751				700
Outside services		351				666
Data processing		1,317				1,141
Other		1,510				3,471
Total noninterest expenses		10,516				12,181
Income before income taxes		5,142				728
Income tax expense		1,253				-7
Net income	-	3,889			-	735
Earnings per common share:
Basic	-	1.08			-	0.20
Diluted	-	1.07			-	0.20

Foresight Financial Group, Inc. and Subsidiaries
Consolidated Condensed Statements of Income
(Unaudited)
	For the Quarter Ended
	March 31,				December 31,			September 30,			June 30,			March 31,
	2026				2025			2025			2025			2025
Interest and dividend income:
Interest and fees on Loans	-	17,668			-	18,343		-	17,893		-	17,739		-	16,918
Interest on investment securities		3,233				2,983			2,447			2,394			2,591
Interest on fed funds sold and other deposits		168				417			150			285			532
Total interest income		21,069				21,743			20,490			20,418			20,041
Interest expense:
Deposits		6,442				7,158			6,930			7,099			7,366
Federal funds purchased		1				-			4			-			2
FHLB and other borrowings		288				282			398			370			409
Total interest expense		6,731				7,440			7,332			7,469			7,777
Net interest income		14,338				14,303			13,158			12,949			12,264
Provision for credit losses		561				772			372			238			1,298
Net interest income after provision for loan losses		13,777				13,531			12,786			12,711			10,966
Noninterest income:
Customer service fees		497				445			424			551			341
Net securities gains (losses)		(44	-			-			-			-			-
Gain on sale of loans, net		129				81			79			26			138
Loan servicing fees, net		(24	-			108			106			226			309
Bank owned life insurance		165				167			166			177			157
Card interchange fees		553				581			605			555			495
Other		605				389			404			1,468			503
Total noninterest income		1,881				1,771			1,784			3,003			1,943
Noninterest expenses:
Salaries and employee benefits		6,587				6,613			6,808			6,408			6,203
Occupancy expense of premises, net		751				795			775			772			700
Outside services		351				409			615			422			666
Data processing		1,317				1,330			1,407			1,403			1,141
Other		1,510				2,722			2,751			2,943			3,471
Total noninterest expenses		10,516				11,869			12,356			11,948			12,181
Income before income taxes		5,142				3,433			2,214			3,766			728
Income tax expense		1,253				889			612			779			(7	-
Net income	-	3,889			-	2,544		-	1,602		-	2,987		-	735
Earnings per common share:
Basic	-	1.08			-	0.71		-	0.44		-	0.83		-	0.20
Diluted	-	1.07			-	0.70		-	0.44		-	0.82		-	0.20

Foresight Financial Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
	As of
	March 31,				December 31,				September 30,				June 30,				March 31,
	2026				2025				2025				2025				2025
Assets
Cash and due from banks	-	18,696			-	15,844			-	19,601			-	28,002			-	19,996
Interest-bearing deposits in banks		118,000				11,254				26,994				13,025				46,118
Federal funds sold		3,900				775				1,989				3,046				2,918
Total cash and cash equivalents		140,596				27,873				48,584				44,073				69,032
Debt securities:
Debt securities available-for-sale (AFS)		426,198				428,688				369,287				361,146				380,667
Debt securities held-to-maturity (HTM)		2,378				2,378				2,741				3,263				3,263
Marketable equity securities and other investments		4,420				4,427				5,545				5,446				5,671
Loans held for sale		352				1,549				-				480				573
Loans, net of allowance for credit losses		1,113,139				1,127,617				1,123,376				1,116,498				1,084,761
Premises and equipment, net		17,622				17,855				18,054				16,889				16,978
Bank owned life insurance		25,144				24,979				24,812				24,646				24,615
Other assets		32,840				33,281				36,373				38,573				40,519
Total assets	-	1,762,689			-	1,668,647			-	1,628,772			-	1,611,014			-	1,626,079
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	-	226,404			-	219,275			-	241,473			-	247,002			-	250,709
Interest-bearing		1,312,249				1,209,276				1,140,725				1,136,961				1,142,009
Total deposits		1,538,653				1,428,551				1,382,198				1,383,963				1,392,718
Federal funds purchased		-				-				-				-				55
Securities sold under agreements to repurchase		-				-				26,354				12,466				21,095
Federal Home Loan Bank (FHLB) and other borrowings		36,668				53,429				37,662				39,889				37,810
Accrued interest payable and other liabilities		14,302				16,405				15,666				14,737				16,670
Total liabilities		1,589,623				1,498,385				1,461,880				1,451,055				1,468,348
Stockholders' equity:
Preferred stock		-								-				-				-
Common stock		1,063				1,063				1,063				1,062				1,060
Additional paid-in capital		16,734				16,720				16,716				16,704				16,482
Retained earnings		193,037				189,941				188,119				187,237				184,972
Treasury stock, at cost		(16,013	-			(16,013	-			(16,013	-			(16,013	-			(16,008	-
Accumulated other comprehensive loss		(21,755	-			(21,449	-			(22,992	-			(29,031	-			(28,775	-
Total stockholders' equity		173,066				170,262				166,892				159,959				157,731
Total liabilities and stockholders' equity	-	1,762,689			-	1,668,647			-	1,628,772			-	1,611,014			-	1,626,079

SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands, except per share amounts and ratios)
The following table outlines selected financial data as of and for the:
	Three Months Ended
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
	2026			2025			2025			2025			2025
PER COMMON SHARE
Basic earnings	-	1.08		-	0.71		-	0.44		-	0.83		-	0.20
Diluted earnings		1.07			0.70			0.44			0.82			0.20
Dividends		0.22			0.20			0.20			0.20			0.20
Book value		47.99			47.21			46.28			44.41			43.84
Tangible book value		47.95			47.18			46.24			44.37			43.80
Tangible book value, excluding AOCI		53.98			53.12			52.62			52.43			51.80
End of period shares outstanding		3,606,428			3,606,123			3,606,123			3,606,087			3,598,042
Average number of shares outstanding		3,606,425			3,606,119			3,606,119			3,606,137			3,598,042
Market Price		45.99			41.78			32.48			31.13			31.63
PERFORMANCE RATIOS
Return on average assets		0.95	-		0.60	-		0.40	-		0.75	-		0.21	-
Return on average equity		9.13	-		5.96	-		3.90	-		7.60	-		2.18	-
Net interest margin, tax equivalent		3.65	-		3.52	-		3.41	-		3.33	-		3.13	-
Efficiency ratio, tax equivalent		64.12	-		73.32	-		81.23	-		73.61	-		83.72	-
Loan to Deposit Ratio		73.11	-		79.91	-		82.26	-		81.66	-		79.04	-
ASSET QUALITY DATA
Nonaccrual Loans		14,409			14,937			25,452			25,939			28,564
Accruing loans 90+ days past due		1,662			373			1,967			688			185
Total non-performing loans		16,071			15,310			27,419			26,627			28,749
Foreclosed assets		7			-			56			703			6
Impaired other investments		-			-			961			961			961
Total non-performing Assets		16,078			15,310			28,436			28,291			29,716
Total Loans		1,126,264			1,140,600			1,137,006			1,130,124			1,100,853
Allowance for credit losses		13,125			12,983			13,630			13,626			16,092
Loans, net of ACL		1,113,139			1,127,617			1,123,376			1,116,498			1,084,761
Nonperforming assets tototal assets		0.91	-		0.92	-		1.75	-		1.76	-		1.83	-
Nonperforming loans to total loans		1.43	-		1.34	-		2.41	-		2.36	-		2.61	-
Allowance to total loans		1.17	-		1.14	-		1.20	-		1.21	-		1.46	-
Allowance to nonperforming loans		81.67	-		84.80	-		49.71	-		51.17	-		55.97	-
ALLOWANCE FOR CREDIT LOSSES ACTIVITY
Beginning of period balance		12,983			13,630			13,626			16,092			14,694
Provision for loan losses		561			772			372			238			1,298
Provision for unfunded commitments		(120	-		(14	-		(5	-		224			110
Charge-offs		(342	-		(1,594	-		(373	-		(2,958	-		(74	-
Recoveries		43			189			10			30			64
Ending of period balance		13,125			12,983			13,630			13,626			16,092

Foresight Financial Group, Inc.
Analysis of Average Balances and Tax Equivalent Interest Rates
	For the Quarters Ended (Dollars in thousands-unaudited)
	March 31, 2026								December 31, 2025								March 31, 2025
	Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate
Interest Earning Assets:
Interest-bearing deposits and other	-	15,680		-	167	4.33	-		-	37,891		-	417	4.37	-		-	59,964		-	532	3.60	-
Investment Securities		463,514			3,332	2.92	-			443,388			2,983	2.67	-			430,085			2,591	2.44	-
Loans		1,127,837			17,683	6.36	-			1,131,854			18,343	6.43	-			1,099,230			16,918	6.24	-
Total Earning Assets	-	1,607,031		-	21,182	5.35	-		-	1,613,133		-	21,743	5.35	-		-	1,589,279		-	20,041	5.11	-
Allowance for credit losses		(13,128	-							(13,929	-							(14,994	-
Cash and due from banks		21,048								21,967								18,277
Other assets		47,172								48,057								34,523
Total Assets	-	1,662,123							-	1,669,228							-	1,627,085
Interest Bearing Liabilities:
Interest bearing checking accounts	-	204,135		-	528	1.05	-		-	213,962		-	654	1.21	-		-	242,947		-	967	1.61	-
Savings and money market deposits		515,374			2,216	1.74	-			514,500			2,418	1.86	-			404,206			1,594	1.60	-
Time deposits		477,379			3,699	3.14	-			482,141			4,086	3.36	-			507,748			4,805	3.84	-
Total interest bearing deposits		1,196,888			6,442	2.18	-			1,210,603			7,158	2.35	-			1,154,901			7,366	2.59	-
Borrowings		38,918			289	3.01	-			37,406			282	2.99	-			59,602			411	2.80	-
Total Interest-Bearing Liabilities	-	1,235,806		-	6,731	2.21	-		-	1,248,009		-	7,440	2.37	-		-	1,214,503		-	7,777	2.60	-
Interest Rate Spread						3.14	-							2.98	-							2.52	-
Non-interest bearing checking accounts		237,825								235,976								242,877
Other liabilities		15,628								15,952								15,018
Total liabilities		1,489,259								1,499,937								1,472,398
Total Stockholders' Equity		172,864								169,291								154,687
Total Liabilities and Stockholders' Equity	-	1,662,123							-	1,669,228							-	1,627,085
Net Interest Income/Margin				-	14,451	3.65	-					-	14,303	3.52	-					-	12,264	3.13	-