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

WINNEBAGO, Ill., July 15, 2026 (GLOBE NEWSWIRE) -- Foresight Financial Group, Inc. (OTCQX: FGFH) reported net income of $4.38 million for the quarter ended June 30, 2026, a 47% increase compared to $2.99 million reported for the second quarter of 2025 and a 13% increase compared to $3.89 million reported for the first quarter of 2026. Diluted earnings per share were $1.20 for the quarter compared to $0.82 for the second quarter of 2025 and $1.07 for the first quarter of 2026. The second quarter results produced a return on average assets and return on average equity of 1.04% and 10.07%.

Net income for the first six months of 2026 was $8.27 million, up 122% from $3.72 million for the same period in 2025. Diluted earnings per share for the first half were $2.27, compared with $1.03 in the prior year period. The first half 2026 results produced a return on average assets and return on average equity of 1.00% and 9.60%, respectively.

The earnings growth for the first half of 2026 compared to the prior year period was driven by margin expansion, lower credit costs and reduced non-interest expense, which was partially offset by a decrease in non-interest income. The decrease in non-interest income was due to $1.2 million of non-recurring revenue in the prior year period related to a debit card branding agreement. The reduction in non-interest expenses was also related to non-recurring items in the prior year period, including a $1.96 million impairment charge on a nonmarketable equity investment and $1.88 million of expenses directly related to the charter consolidation initiative.

"We are pleased with the continued momentum recognized during the second quarter," said Peter Morrison, Chief Executive Officer. "The strategic initiatives completed during the past year are producing measurable results, including stronger profitability, improved operating efficiency and increased shareholder value."

Net interest income increased to $14.92 million for the quarter ended June 30, 2026, compared to $12.95 million for the second quarter of 2025 and $14.34 million for the first quarter of 2026. The tax-equivalent net interest margin for the second quarter of 2026 expanded to 3.69%, compared to 3.33% in the prior-year quarter and 3.65% in the linked quarter.

For the first six months of 2026, net interest income increased $4.05 million, or 16.1%, to $29.26 million compared to $25.21 million for the first six months of 2025. The taxable equivalent net interest margin expanded to 3.67%, compared to 3.29% in the prior year period.

The growth in net interest income and improvement of the net interest margin for both the second quarter and first half of 2026 was driven primarily by strong deposit growth and a lower cost of deposits compared to the prior year periods. The rate on average interest-bearing deposits decreased by thirty-eight basis points to 2.17% for the first half of 2026 as compared to 2.55% for the first half of 2025. Average total deposits increased by $63.9 million, or 4.6%, to $1.449 billion for the first half of 2026 compared to $1.385 billion in the prior year period. The tax-equivalent yield on average total earning assets increased by ten basis points to 5.35% for the first half of 2026 as compared to the prior year period. Average total loans for the first half increased by $13.9 million to $1.124 billion as compared to $1.110 billion in the first half of the prior year, with the additional liquidity generated by the deposit growth being deployed in investment securities. Average total investment securities for the first half of 2026 increased by $48.6 million as compared to the prior year period, with the yield on investment securities increasing by forty-four basis points.

The provision for credit losses totaled $524 thousand during the second quarter of 2026, compared to $238 thousand in the second quarter of 2025 and $561 thousand in the first quarter of 2026. For the six months ended June 30, 2026 the provision for loan losses totaled $1.08 million, a $451 thousand, or 29%, decrease as compared to the first six months of the prior year.

Asset quality remained solid, with nonperforming assets totaling $16.9 million, or 0.98% of total assets, as of June 30, 2026 as compared to $28.29 million, or 1.76% of total assets, on June 30, 2025, and $16.08 million, 0.91% of total assets as of March 31, 2026.

Noninterest income totaled $2.33 million for the quarter, a $674 thousand decrease compared to $3.00 million in the second quarter of 2025. The decline was due to $1.20 million of non-recurring revenue received in the second quarter of the prior year related to a debit card branding agreement, which was partially offset by a $231 thousand increase in net loan servicing fees due to changes in the fair value of the mortgage servicing asset. In addition, card interchange fees increased by $114 thousand in the quarter compared to the second quarter of 2025, reflecting revenue from the recently implemented proprietary corporate card program.

Non-interest income totaled $4.21 million for the first six months of 2026, compared to $4.95 million for the first six months of 2025, primarily due to $1.2 million of non-recurring revenue recognized in the prior period and a $102 thousand decrease in net loan servicing fees due to valuation fluctuations of the mortgage servicing asset. These decreases were partially offset by a $141 thousand increase in deposit service fees and a $172 thousand increase in card interchange revenue, reflecting the Company's initiatives to grow core non-interest revenue.

Noninterest expense totaled $10.86 million for the quarter ended June 30, 2026, decreasing by $1.09 million compared to $11.95 million for the second quarter of 2025. The decrease was due to $1.56 million in non-recurring expenses realized in the second quarter of 2025 related to the charter consolidation initiative. This decrease was partially offset by a $304 thousand, or 4.7% increase in salaries and benefits.

Non-interest expense for the first half of 2026 declined by $2.75 million, or 11.4%, to $21.38 million compared to $24.13 million in the first six months of the prior year, reflecting the absence of non-recurring expenses incurred in the prior period, including $1.88 million related to the charter consolidation initiative and a $1.96 impairment charge on a nonmarketable equity investment. These decreases were partially offset by a $689 thousand, or 5.5% increase in salaries and employee benefits.

The Company's efficiency ratio for the second quarter improved to 62.3%, compared to 73.6% in the prior-year quarter and 64.1% in the linked quarter. The efficiency ratio for the six months ended June 30, 2026 improved to 63.2% compared to 78.6% for the first half of the prior year.

The closing price for the Company's common stock was $48.04 on June 30, 2026, a 54% increase over the closing price of $31.13 on June 30, 2025. Tangible book value per share increased to $48.48 as of June 30, 2026, compared to $44.37 on June 30, 2025 and $47.95 on March 31, 2026. Excluding accumulated other comprehensive income, tangible book value per share increased to $54.91 as of June 30, 2026 compared to $52.43 on June 30, 2025 and $53.98 on March 31, 2026.

About Foresight Financial Group, Inc.

Foresight Financial Group, Inc. is the largest bank holding company headquartered in Winnebago County, Illinois and is the parent company of Foresight Bank, which has offices in the Illinois counties of Winnebago, Stephenson and Kankakee. Foresight Bank was formed through the legal consolidation of six long-standing community bank subsidiaries of Foresight Financial Group, including German American State Bank, State Bank of Davis, Northwest Bank of Rockford, State Bank (Freeport), Lena State Bank, and 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]

Consolidated Balance Sheets
(Unaudited)	June 30,				December 31,
		2026				2025
Assets	(in thousands, except per share data)
Cash and due from banks	-	18,419			-	15,844
Interest-bearing deposits in banks		46,830				11,254
Federal funds sold		1,288				775
Total cash and cash equivalents		66,537				27,873
Debt Securities:
Available-for-sale (AFS)		459,322				428,688
Held-to-maturity (HTM)		2,378				2,378
Marketable equity securities and other investments		4,436				4,427
Loans held for sale		441				1,549
Loans, net of allowance for credit losses		1,103,191				1,127,617
Premises and equipment, net		17,604				17,855
Bank owned life insurance		25,323				24,979
Other assets		33,265				33,281
Total assets	-	1,712,497			-	1,668,647
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing	-	233,195			-	219,275
Interest-bearing		1,251,414				1,209,276
Total deposits		1,484,609				1,428,551
Federal funds purchased		-				-
Securities sold under agreements to repurchase		-				-
Federal Home Loan Bank (FHLB) and other borrowings		33,477				53,429
Accrued interest payable and other liabilities		19,064				16,405
Total liabilities		1,537,150				1,498,385
Preferred stock		-
Common stock		1,065				1,063
Additional paid-in capital		16,937				16,720
Retained earnings		196,620				189,941
Treasury stock, at cost		(16,013	-			(16,013	-
Accumulated other comprehensive loss		(23,262	-			(21,449	-
Total stockholders' equity		175,347				170,262
Total liabilities and stockholders' equity	-	1,712,497			-	1,668,647

Consolidated Statements of Income
(Unaudited)	Six Months Ended June 30,
		2026			2025
	(in thousands, except per share data)
Interest and dividend income:
Interest and fees on loans	-	35,553			-	34,657
Interest on investment securities		6,737				4,985
Interest on fed funds sold and other deposits		499				817
Total interest income		42,789				40,459
Interest expense:
Deposits		12,992				14,464
Federal funds purchased		1				2
FHLB and other borrowings		536				780
Total interest expense		13,529				15,246
Net interest income		29,260				25,213
Provision for credit losses		1,085				1,536
Net interest and dividend income,
after provision for credit losses		28,175				23,677
Noninterest income:
Customer service fees		1,034				893
Net securities gains (losses)		(44	-			-
Gain on sale of loans, net		229				163
Loan servicing fees, net		433				535
Bank owned life insurance		344				334
Card interchange fees		1,222				1,050
Other		992				1,971
Total noninterest income		4,210				4,946
Noninterest expenses:
Salaries and employee benefits		13,299				12,610
Occupancy expense of premises, net		1,560				1,407
Outside services		775				1,088
Data processing		2,755				2,614
Other		2,990				6,410
Total noninterest expenses		21,379				24,129
Income before income taxes		11,006				4,494
Income tax expense		2,739				772
Net income	-	8,267			-	3,722
Earnings per common share:
Basic	-	2.29			-	1.03
Diluted	-	2.27			-	1.03

Consolidated Statements of Income
(Unaudited)	For the Quarter Ended
	June 30,			March 31,				December 31,			September 30,			June 30,
	2026			2026				2025			2025			2025
Interest and dividend income:	(in thousands, except per share data)
Interest and fees on loans	-	17,885		-	17,668			-	18,343		-	17,893		-	17,739
Interest on investment securities		3,504			3,233				2,983			2,447			2,394
Interest on fed funds sold and other deposits		331			168				417			150			285
Total interest income		21,720			21,069				21,743			20,490			20,418
Interest expense:
Deposits		6,550			6,442				7,158			6,930			7,099
Federal funds purchased		-			1				-			4			-
FHLB and other borrowings		248			288				282			398			370
Total interest expense		6,798			6,731				7,440			7,332			7,469
Net interest income		14,922			14,338				14,303			13,158			12,949
Provision for credit losses		524			561				772			372			238
Net interest income after provision for loan losses		14,398			13,777				13,531			12,786			12,711
Noninterest income:
Customer service fees		537			497				445			424			551
Net securities gains (losses)		-			(44	-			-			-			-
Gain on sale of loans, net		100			129				81			79			26
Loan servicing fees, net		457			(24	-			108			106			226
Bank owned life insurance		179			165				167			166			177
Card interchange fees		669			553				581			605			555
Other		387			605				389			404			1,468
Total noninterest income		2,329			1,881				1,771			1,784			3,003
Noninterest expenses:
Salaries and employee benefits		6,712			6,587				6,613			6,808			6,408
Occupancy expense of premises, net		809			751				795			775			772
Outside services		424			351				409			615			422
Data processing		1,438			1,317				1,330			1,407			1,403
Other		1,480			1,510				2,722			2,751			2,943
Total noninterest expenses		10,863			10,516				11,869			12,356			11,948
Income before income taxes		5,864			5,142				3,433			2,214			3,766
Income tax expense		1,486			1,253				889			612			779
Net income	-	4,378		-	3,889			-	2,544		-	1,602		-	2,987
Earnings per common share:
Basic	-	1.21		-	1.08			-	0.71		-	0.44		-	0.83
Diluted	-	1.20		-	1.07			-	0.70		-	0.44		-	0.82

Consolidated Balance Sheets
(Unaudited)	As of
	June 30				March 31,				December 31,				September 30,				June 30,
	2026				2026				2025				2025				2025
Assets	(in thousands)
Cash and due from banks	-	18,419			-	18,696			-	15,844			-	19,601			-	28,002
Interest-bearing deposits in banks		46,830				118,000				11,254				26,994				13,025
Federal funds sold		1,288				3,900				775				1,989				3,046
Total cash and cash equivalents		66,537				140,596				27,873				48,584				44,073
Debt securities:
Debt securities available-for-sale (AFS)		459,322				426,198				428,688				369,287				361,146
Debt securities held-to-maturity (HTM)		2,378				2,378				2,378				2,741				3,263
Marketable equity securities and other investments		4,436				4,420				4,427				5,545				5,446
Loans held for sale		441				352				1,549				-				480
Loans, net of allowance for credit losses		1,103,191				1,113,139				1,127,617				1,123,376				1,116,498
Premises and equipment, net		17,604				17,622				17,855				18,054				16,889
Bank owned life insurance		25,323				25,144				24,979				24,812				24,646
Other assets		33,265				32,840				33,281				36,373				38,573
Total assets	-	1,712,497			-	1,762,689			-	1,668,647			-	1,628,772			-	1,611,014
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	-	233,195			-	226,404			-	219,275			-	241,473			-	247,002
Interest-bearing		1,251,414				1,312,249				1,209,276				1,140,725				1,136,961
Total deposits		1,484,609				1,538,653				1,428,551				1,382,198				1,383,963
Federal funds purchased		-				-				-				-				-
Securities sold under agreements to repurchase		-				-				-				26,354				12,466
Federal Home Loan Bank (FHLB) and other borrowings		33,477				36,668				53,429				37,662				39,889
Accrued interest payable and other liabilities		19,064				14,302				16,405				15,666				14,737
Total liabilities		1,537,150				1,589,623				1,498,385				1,461,880				1,451,055
Stockholders' equity:
Preferred stock		-				-								-				-
Common stock		1,065				1,063				1,063				1,063				1,062
Additional paid-in capital		16,937				16,734				16,720				16,716				16,704
Retained earnings		196,620				193,037				189,941				188,119				187,237
Treasury stock, at cost		(16,013	-			(16,013	-			(16,013	-			(16,013	-			(16,013	-
Accumulated other comprehensive loss		(23,262	-			(21,755	-			(21,449	-			(22,992	-			(29,031	-
Total stockholders' equity		175,347				173,066				170,262				166,892				159,959
Total liabilities and stockholders' equity	-	1,712,497			-	1,762,689			-	1,668,647			-	1,628,772			-	1,611,014

SELECTED FINANCIAL DATA (Unaudited)
The following table outlines selected financial data as of and for the:
(in thousands, except per share amounts and ratios)
	Three Months Ended																Six Months Ended
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,				Jun 30,				Jun 30,
		2026			2026			2025			2025			2025				2026				2025
PER COMMON SHARE
Basic earnings	-	1.21		-	1.08		-	0.71		-	0.44		-	0.83			-	2.29			-	0.20
Diluted earnings		1.20			1.07			0.70			0.44			0.82				2.27				0.20
Dividends		0.22			0.22			0.20			0.20			0.20				0.44				0.20
Book value		48.52			47.99			47.21			46.28			44.41				48.52				44.41
Tangible book value		48.48			47.95			47.18			46.24			44.37				48.48				44.37
Tangible book value, excluding AOCI		54.91			53.98			53.12			52.62			52.43				54.91				52.43
End of period shares outstanding		3,614,260			3,606,428			3,606,123			3,606,123			3,606,087				3,614,260				3,606,087
Average number of shares outstanding		3,614,153			3,606,425			3,606,119			3,606,119			3,606,137				3,610,310				3,602,112
Market price		48.04			45.99			41.78			32.48			31.13				48.04				31.13
PERFORMANCE RATIOS
Return on average assets		1.04	-		0.95	-		0.60	-		0.40	-		0.75	-			1.00	-			0.47	-
Return on average equity		10.07	-		9.13	-		5.96	-		3.90	-		7.60	-			9.60	-			4.80	-
Net interest margin, tax equivalent		3.69	-		3.65	-		3.52	-		3.41	-		3.33	-			3.67	-			3.29	-
Efficiency ratio, tax equivalent		62.29	-		64.12	-		73.32	-		81.23	-		73.61	-			63.2	-			78.57	-
Loan to deposit ratio		75.21	-		73.11	-		79.91	-		82.26	-		81.66	-			75.21	-			81.66	-
ASSET QUALITY DATA
Nonaccrual loans		16,589			14,409			14,937			25,452			25,939				16,589				25,939
Accruing loans 90+ days past due		249			1,662			373			1,967			688				249				688
Total non-performing loans		16,838			16,071			15,310			27,419			26,627				16,838				26,627
Foreclosed assets		25			7			-			56			703				25				703
Impaired other investments		-			-			-			961			961				-				961
Total non-performing assets		16,863			16,078			15,310			28,436			28,291				16,863				28,291
Total loans held for investment		1,116,178			1,126,264			1,140,600			1,137,006			1,129,719				1,116,178				1,129,719
Allowance for credit losses		12,987			13,125			12,983			13,630			13,626				12,987				13,626
Loans, net of ACL		1,103,191			1,113,139			1,127,617			1,123,376			1,116,498				1,103,191				1,116,498
Nonperforming assets to total assets		0.98	-		0.91	-		0.92	-		1.75	-		1.76	-			0.98	-			1.76	-
Nonperforming loans to total loans		1.51	-		1.43	-		1.34	-		2.41	-		2.36	-			1.51	-			2.36	-
Allowance to total loans		1.16	-		1.17	-		1.14	-		1.20	-		1.21	-			1.16	-			1.21	-
Allowance to nonperforming loans		77.13	-		81.67	-		84.80	-		49.71	-		51.17	-			77.13	-			51.17	-
ALLOWANCE FOR CREDIT LOSSES ACTIVITY
Beginning of period balance		13,125			12,983			13,630			13,626			16,092				12,983				14,694
Provision for loan losses		524			561			772			372			238				1,085				1,536
Provision for unfunded commitments		(412	-		(120	-		(14	-		(5	-		224				(532	-			334
Charge-offs		(285	-		(342	-		(1,594	-		(373	-		(2,958	-			(627	-			(3,032	-
Recoveries		35			43			189			10			30				78				94
Ending of period balance		12,987			13,125			12,983			13,630			13,626				12,987				13,626

Analysis of Average Balances and Tax Equivalent Interest Rates
(dollars in thousands)
	For the Quarters Ended(Dollars in thousands-unaudited)
	June 30, 2026								March 31, 2026								June 30, 2025
	Average Balance			Interest (1)		Average Rate (1)			Average Balance			Interest (1)		Average Rate (1)			Average Balance			Interest (1)		Average Rate (1)
Interest Earning Assets:
Interest bearing deposits and other	-	32,009		-	331	4.15	-		-	15,680		-	167	4.33	-		-	12,712		-	223	7.05	-
Investment securities		481,728			3,602	3.00	-			463,514			3,332	2.92	-			441,109			2,581	2.35	-
Loans		1,119,935			17,901	6.41	-			1,127,837			17,683	6.36	-			1,120,619			17,738	6.35	-
Total Earning Assets	-	1,633,672		-	21,835	5.36	-		-	1,607,031		-	21,182	5.35	-		-	1,574,440		-	20,542	5.23	-
Allowance for credit losses		(13,328	-							(13,128	-							(16,112	-
Cash and due from banks		20,646								21,048								28,640
Other assets		43,945								47,172								14,452
Total Assets	-	1,684,935							-	1,662,123							-	1,601,420
Interest Bearing Liabilities:
Interest bearing checking accounts	-	213,820		-	588	1.10	-		-	204,135		-	528	1.05	-		-	249,836		-	1,055	1.69	-
Savings and money market deposits		536,490			2,369	1.77	-			515,375			2,216	1.74	-			406,685			1,728	1.70	-
Time deposits		472,878			3,593	3.05	-			477,354			3,699	3.14	-			473,023			4,331	3.67	-
Total interest bearing deposits		1,223,188			6,550	2.15	-			1,196,864			6,442	2.18	-			1,129,544			7,114	2.53	-
Borrowings		34,649			247	2.86	-			38,918			289	3.01	-			57,816			370	2.57	-
Total Interest Bearing Liabilities	-	1,257,837		-	6,797	2.17	-		-	1,235,782		-	6,731	2.21	-		-	1,187,360		-	7,484	2.53	-
Interest Rate Spread						3.19	-							3.14	-							2.71	-
Noninterest bearing checking accounts		239,120								237,825								242,185
Other liabilities		13,554								15,652								14,152
Total liabilities		1,510,511								1,489,259								1,443,697
Total stockholders' equity		174,424								172,864								157,723
Total Liabilities and Stockholders' Equity	-	1,684,935							-	1,662,123							-	1,601,420
Net Interest Income/Margin				-	15,037	3.69	-					-	14,451	3.65	-					-	13,059	3.33	-
(1) Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including a
presentation of net interest income with a net interest margin on a tax-equivalent(TE) basis. Net interest margin is calculated by dividing net
interest income on a TE basis by average earning assets for the period. Nonaccrual loans are included in the above-stated average balances.

Analysis of Average Balances and Tax Equivalent Interest Rates
(dollars in thousands)
	For Six Months Ended(Dollars in thousands-unaudited)
	June 30, 2026								June 30, 2025
	Average Balance			Interest (1)		Average Rate (1)			Average Balance			Interest (1)		Average Rate (1)
Interest Earning Assets:
Interest bearing deposits and other	-	23,890		-	499	4.21	-		-	36,208		-	817	4.55	-
Investment securities		472,671			6,934	2.96	-			424,064			5,303	2.52	-
Loans		1,123,864			35,583	6.38	-			1,109,984			34,722	6.31	-
Total Earning Assets	-	1,620,425		-	43,016	5.35	-		-	1,570,256		-	40,842	5.25	-
Allowance for credit losses		(13,229	-							(15,556	-
Cash and due from banks		20,846								23,487
Other assets		45,550								35,995
Total Assets	-	1,673,592							-	1,614,182
Interest Bearing Liabilities:
Interest bearing checking accounts	-	209,004		-	1,116	1.08	-		-	246,411		-	2,021	1.65	-
Savings and money market deposits		525,991			4,584	1.76	-			405,453			3,322	1.65	-
Time deposits		475,103			7,292	3.10	-			490,289			9,121	3.75	-
Total interest bearing deposits		1,210,098			12,992	2.17	-			1,142,153			14,464	2.55	-
Borrowings		36,772			536	2.94	-			58,704			781	2.68	-
Total Interest Bearing Liabilities	-	1,246,870		-	13,528	2.19	-		-	1,200,857		-	15,246	2.56	-
Interest Rate Spread						3.17	-							2.68	-
Noninterest bearing checking accounts		238,476								242,529
Other liabilities		14,598								14,582
Total liabilities		1,499,944								1,457,968
Total stockholders' equity		173,648								156,213
Total Liabilities and Stockholders' Equity	-	1,673,592							-	1,614,181
Net Interest Income/Margin				-	29,488	3.67	-					-	25,597	3.29	-
(1) Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including a
presentation of net interest income with a net interest margin on a tax-equivalent(TE) basis. Net interest margin is calculated by dividing net
interest income on a TE basis by average earning assets for the period. Nonaccrual loans are included in the above-stated average balances.