Foresight Reports First Quarter 2025 Results

WINNEBAGO, Ill., April 22, 2025 (GLOBE NEWSWIRE) -- Foresight Financial Group, Inc. (OTCQX:FGFH) reported net income of $734 thousand for the quarter ended March 31, 2025, a 79% decrease compared to the $3.51 million reported for the first quarter of 2024. Diluted Earnings per Share (EPS) for the first quarter decreased 80% to $0.20 compared to $1.00 in the first quarter of the prior year. The first quarter results produced a Return on Average Equity (ROAE) of 2.18% and Return on Average Assets (ROAA) of 0.21%. The decrease in net income compared to the first quarter of 2024 was due to an increase in provision for loan losses, an impairment charge related to other investments and nonrecurring expenses related to the charter consolidation process.

Foresight CEO Peter Q. Morrison stated “The legal consolidation of our Company’s six banking charters is on track to occur during the second quarter of this year, with the conversions of operating systems to a single platform to be layered in between August and October of 2025. This consolidation will provide significant savings via the reduction of duplicative operational expenses and gained efficiencies by operating under one functional banking platform rather than six. During the consolidation process executive management of Foresight Financial Group gained additional insight into the loan portfolios and credit administration practices of each of its subsidiary banks, which resulted in the identification of weaknesses in the clean energy sector of the portfolio within the German-American State Bank charter. We expect the increased consistency in credit administration practices gained through charter consolidation will be accretive to credit quality, earnings, and shareholder value.”

Net interest income for the first quarter of 2025 increased by $152 thousand to $12.26 million as compared to $12.11 million the year before. The net interest margin on a fully taxable equivalent basis increased by two basis points to 3.25% compared to 3.23% in the first quarter of 2024. Average total loans for the quarter ended March 31, 2025 increased by $21.2 million to $1.10 billion as compared to $1.08 billion in the first quarter of 2024. Total average deposits for the first quarter of 2025 increased $34.4 million to $1.41 billion as compared to $1.38 billion in the first quarter of the prior year.

The provision for loan losses for the quarter ended March 31, 2025 increased to $1.30 million as compared to $64 thousand in the first quarter of the prior year, reflecting potential impairment of certain credits within the clean energy sector of the loan portfolio. Total non-performing assets of the Company as of March 31, 2025 was $29.72 million compared to $28.42 million the previous quarter, and $14.72 million as of March 31, 2024.

Noninterest income for the quarter ended March 31, 2025 increased $267 thousand to $1.94 million compared to $1.68 million in the first quarter of the prior year. The increase includes an increase of $240,000 in net loan servicing fees, including a favorable fair value adjustment of $157 thousand to the originated mortgage servicing rights asset, and an improvement of $111 thousand in net gains/losses on securities sales.

Noninterest expenses for the quarter ended March 31, 2025 totaled $12.18 million, a $3.03 million increase over $9.15 million in the first quarter of 2024. The increase in operating expenses includes a $1.96 million impairment charge on a green energy sector non-marketable equity investment and $313 thousand of charter consolidation related expenses. In addition, salaries and employee benefits increased by $447 thousand, or 7.8%.

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 $1.21and $3.63 to $43.80 as of March 31, 2025, compared to $42.59 and $40.17 as of December 31, 2024 and March 31, 2024, respectively. The tangible book value per share of the Company’s common stock, excluding Accumulated Other Comprehensive Income was $51.80 at March 31, 2025, compared to $51.79 at the end of 2024 and $50.44 as of March 31, 2024.

About Foresight Financial

Foresight Financial is a multi-bank holding company located in Northern Illinois, its subsidiary community banks include Northwest Bank of Rockford, State Bank in Freeport, State Bank of Davis, Foresight Bank in Pecatonica (fka German American State Bank), 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.

FOR INFORMATION CONTACT:

Peter Morrison
Chief Executive Officer
(815) 847-7500

Todd James
Chief Financial Officer
(815) 847-7500

Foresight Financial Group, Inc. and Subsidiaries
Consolidated Balance Sheets
March 31, 2025 and December 31, 2024
(Unaudited)
	March 31,			December 31,
Assets		2025			2024
	(in thousands, except per share data)
Cash and due from banks	$	19,996		$	16,905
Interest-bearing deposits in banks		46,118			45,357
Federal funds sold		452			1,738
Total cash and cash equivalents		66,566			64,000

Interest-bearing deposits in banks - term deposits		2,466			4,434
Debt securities:
Debt securities available-for-sale (AFS)		380,667			369,945
Debt securities held-to-maturity (HTM)		3,263			3,263
Marketable equity securities and other investments		5,671			7,592
Loans held for sale		573			852
Loans, net of allowance for credit losses		1,084,761			1,100,657
Foreclosed assets and other real estate owned, net		-			-
Premises and equipment, net		16,978			17,125
Bank owned life insurance		24,615			24,459
Other assets		40,519			40,892
Total assets	$	1,626,079		$	1,633,219

Liabilities and Stockholders' Equity

Liabilities:
Deposits:
Noninterest-bearing	$	250,709		$	249,076
Interest-bearing		1,142,009			1,151,627
Total deposits		1,392,718			1,400,703
Federal funds purchased		55			5,804
Securities sold under agreements to repurchase		21,095			15,017
Federal Home Loan Bank (FHLB) and other borrowings		37,810			40,911
Accrued interest payable and other liabilities		16,670			17,386
Total liabilities		1,468,348			1,479,821

Stockholders' equity:
Preferred stock		-			-
Common stock		1,060			1,060
Additional paid-in capital		16,482			16,482
Retained earnings		184,972			184,961
Treasury stock, at cost		(16,008	)		(16,008	)
Accumulated other comprehensive loss		(28,775	)		(33,097	)
Total stockholders' equity		157,731			153,398
Total liabilities and stockholders' equity	$	1,626,079		$	1,633,219

Foresight Financial Group, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)

	Three Months Ended March 31,
		2025		2024
	(in thousands, except per share data)
Interest and dividend income:
Loans, including fees	$	16,918	$	16,698
Debt securities:
Taxable		2,064		1,755
Tax-exempt		403		418
Interest-bearing deposits in banks and other		646		515
Federal funds sold		10		28
Total interest income		20,041		19,414
Interest expense:
Deposits		7,365		6,881
Federal funds purchased		5		20
Securities sold under agreements to repurchase		72		115
FHLB and other borrowings		335		286
Total interest expense		7,777		7,302
Net interest income		12,264		12,112
Provision for credit losses		1,298		64
Net interest and dividend income, after provision for credit losses		10,966		12,048

Noninterest income:
Customer service fees		342		342
Loss on sales and calls of AFS securities, net		0		-111
Gain on sale of loans, net		137		104
Loan servicing fees, net		309		69
Bank owned life insurance		157		216
ATM / interchange fees		494		507
Other		503		548
Total noninterest income		1,942		1,675

Noninterest expenses:
Salaries and employee benefits		6,202		5,755
Occupancy expense of premises, net		602		638
Outside services		666		374
Data processing		731		716
Foreclosed assets and other real estate owned, net		0		0
Other		3,980		1,663
Total noninterest expenses		12,181		9,146

Income before income taxes		727		4,579
Income tax expense		-7		1,070

Net income	$	734	$	3,509

Earnings per common share:
Basic	$	0.20	$	1.00
Diluted	$	0.20	$	1.00

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,
	2025			2024		2024			2024		2024
Interest and dividend income:
Loans, including fees	$	16,918		$	17,249	$	17,943		$	17,394	$	16,698
Interest on investment securities		2,467			2,269		2,183			2,236		2,173
Interest on fed funds sold and other deposits		656			818		573			625		543
Total interest income		20,041			20,336		20,699			20,255		19,414
Interest expense:
Deposits		7,365			7,641		7,885			7,448		6,881
Federal funds purchased		5			7		29			8		20
Securities sold under agreements to repurchase		72			132		134			103		115
FHLB and other borrowings		335			328		365			335		286
Total interest expense		7,777			8,108		8,413			7,894		7,302
Net interest income		12,264			12,228		12,286			12,361		12,112
Provision for credit losses		1,298			665		185			138		64
Net interest income after provision for loan losses		10,966			11,563		12,101			12,223		12,048

Noninterest income:
Customer service fees		342			371		366			342		342
Net securities gains (losses)		-			-		-			-		(111	)
Gain on sale of loans, net		137			182		303			183		104
Loan servicing fees, net		309			192		(98	)		86		69
Bank owned life insurance		157			160		571			163		216
ATM / debit card revenue		494			539		547			550		507
Other		503			429		298			334		548
Total noninterest income		1,942			1,873		1,987			1,658		1,675

Noninterest expenses:
Salaries and employee benefits		6,202			6,383		6,302			6,230		5,755
Occupancy expense of premises, net		602			587		592			587		638
Outside services		666			435		411			391		374
Data processing		731			968		788			716		716
Foreclosed assets and other real estate owned, net		-			-		6			6		-
Other		3,980			1,878		1,759			1,709		1,663
Total noninterest expenses		12,181			10,251		9,858			9,639		9,146
Income before income taxes		727			3,185		4,230			4,240		4,579
Income tax expense		(7	)		692		833			975		1,070
Net income	$	734		$	2,493	$	3,397		$	3,265	$	3,509

Foresight Financial Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
	As of
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Assets
Cash and due from banks	$	19,996		$	16,905		$	30,162		$	21,290		$	13,179
Interest-bearing deposits in banks		46,118			45,357			20,040			11,196			33,299
Federal funds sold		452			1,738			2,183			3,433			2,791
Total cash and cash equivalents		66,566			64,000			52,385			35,919			49,269

Interest-bearing deposits in banks - term deposits		2,466			4,434			5,169			4,983			5,975
Debt securities:
Debt securities available-for-sale (AFS)		380,667			369,945			368,386			359,762			361,298
Debt securities held-to-maturity (HTM)		3,263			3,263			3,616			3,609			3,603
Marketable equity securities and other investments		5,671			7,592			6,738			6,215			6,030
Loans held for sale		573			852			794			480			479
Loans, net of allowance for credit losses		1,084,761			1,100,657			1,102,342			1,107,199			1,074,147
Foreclosed assets and other real estate owned, net		-			-			-			68			-
Premises and equipment, net		16,978			17,125			17,125			17,234			17,399
Bank owned life insurance		24,615			24,459			24,300			24,653			24,490
Other assets		40,519			40,892			39,350			39,550			37,172
Total assets	$	1,626,079		$	1,633,219		$	1,620,205		$	1,599,672		$	1,579,862

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	250,709		$	249,076		$	237,685		$	244,414		$	248,836
Interest-bearing		1,142,009			1,151,627			1,138,578			1,128,081			1,118,894
Total deposits		1,392,718			1,400,703			1,376,263			1,372,495			1,367,730
Federal funds purchased		55			5,804			4,764			6,053			446
Securities sold under agreements to repurchase		21,095			15,017			23,381			21,930			21,553
Federal Home Loan Bank (FHLB) and other borrowings		37,810			40,911			39,174			39,293			34,170
Accrued interest payable and other liabilities		16,670			17,386			16,970			16,674			16,588
Total liabilities		1,468,348			1,479,821			1,460,552			1,456,445			1,440,487
Stockholders' equity:
Preferred stock		-			-			-			-			-
Common stock		1,060			1,060			1,060			1,022			1,020
Additional paid-in capital		16,482			16,482			16,445			11,660			11,432
Retained earnings		184,972			184,961			183,118			180,346			177,703
Treasury stock, at cost		(16,008	)		(16,008	)		(16,008	)		(16,008	)		(15,161	)
Accumulated other comprehensive loss		(28,775	)		(33,097	)		(24,963	)		(33,793	)		(35,619	)
Total stockholders' equity		157,731			153,398			159,653			143,227			139,375
Total liabilities and stockholders' equity	$	1,626,079		$	1,633,219		$	1,620,205		$	1,599,672		$	1,579,862

KEY FINANCIAL RATIOS
(Unaudited)
	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024

Basic earnings per common share	$	0.20		$	0.69		$	0.97		$	0.95		$	1.00
Diluted earnings per common share		0.20			0.69			0.97			0.94			1.00
Dividends per common share		0.20			0.18			0.18			0.18			0.18

Book value per common share		43.84			42.63			44.38			41.59			40.21
Tangible book value per common share		43.80			42.59			44.34			41.55			40.17
Tangible book value, excluding AOCI, per share		51.80			51.79			51.28			51.36			50.44
End of period shares outstanding		3,598,042			3,598,042			3,597,418			3,443,937			3,466,225
Average number of shares outstanding		3,598,042			3,597,478			3,494,270			3,450,527			3,494,961

Return on average assets		0.21	%		0.58	%		0.82	%		0.82	%		0.90	%
Return on average equity		2.18	%		6.08	%		8.83	%		9.40	%		10.04	%
Net interest margin, tax equivalent		3.25	%		3.14	%		3.21	%		3.24	%		3.23	%
Efficiency ratio, tax equivalent		83.72	%		72.58			68.97			68.13			65.42

ASSET QUALITY DATA
(Unaudited)	As of
(Amounts in thousands)	March 31,		December 31,		September 30,		June 30,		March 31,
	2025		2024		2024		2024		2024

Nonaccrual Loans	28,564		28,175		23,653		21,366		14,668
Accruing loans past due 90 days or more	185		230		680		32		53
Total non-performing loans	28,749		28,405		24,333		21,398		14,721
Other real estate owned and other assets	6		13		7		-		-
Impaired other investments	961		-		-		-		-
Total non-performing Assets	29,716		28,418		24,340		21,398		14,721

Total Loans	1,100,853		1,115,351		1,117,022		1,121,742		1,088,584
Allowance for credit losses	16,092		14,694		14,678		14,543		14,435
Loans, net of allowance for credit losses	1,084,761		1,100,657		1,102,344		1,107,199		1,074,149

Nonperforming assets to total assets	1.83	%	1.74	%	1.50	%	1.34	%	0.93	%
Nonperforming loans to total loans	1.77	%	1.74	%	1.50	%	1.34	%	0.93	%
Allowance for credit losses to total loans	1.46	%	1.32	%	1.31	%	1.30	%	1.33	%
Allowance for credit losses to non-performing loans	55.97	%	51.73	%	60.32	%	67.96	%	98.06	%

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