WINNEBAGO, Ill., Oct. 16, 2025 (GLOBE NEWSWIRE) -- Foresight Financial Group, Inc. (OTCQX: FGFH) reported net income of $1.60 million for the quarter ended September 30, 2025, a 53% decrease compared to $3.40 million reported for the third quarter of 2024, and a 46% decrease compared to $2.99 million reported for the second quarter of 2025. Diluted Earnings per Share for the third quarter was $0.44 compared to $0.97 for the third quarter of 2024 and $0.82 for the quarter ended June 30, 2025. The third quarter of 2025 results include $1.65 million of non-recurring expenses, primarily related to the charter consolidation project and operating systems conversions. The third quarter results produced a Return on Average Equity of 3.90% and Return on Average Assets of 0.40%.

Net income for the nine months ended September 30, 2025 decreased by 48% to $5.32 million compared to $10.17 million for the first three quarters of 2024. The decrease in net income reflects a $1.52 million increase in provision for loan losses, a $1.96 million impairment charge related to other equity investments and $3.53 million of non-recurring expenses, primarily related to the charter consolidation project and systems conversions. Diluted Earnings per Share for the first nine months of 2025 was $1.48 compared to $2.91 for the first three quarters of 2024.

Foresight CEO Peter Q. Morrison stated “the legal consolidation of our Company’s six banking charters occurred on May 1, 2025, the operating systems of four of the former charters were combined during the third quarter and the remaining two are on track to be converted by the end of October. The operational consolidation has required a herculean effort by our staff to complete five core as well as ancillary system conversions in the same year. As reflected in our financial statements, and as expected when we embarked on this path, it has been an expensive endeavor that will continue to a lesser extent into Q4 of 2025; however, it has positioned Foresight for future growth and profitability improvement. As we move forward, the Company is focused on gaining the efficiencies that operating as a single bank will provide, strengthening our sales culture and continuing to implement more robust and consistent credit administration practices.”

Net interest income for the third quarter of 2025 increased by $872 thousand, or 7%, to $13.16 million as compared to $12.29 million for the third quarter of 2024; and increased by $209 thousand, or 2%, compared to the quarter ended June 30, 2025. The net interest margin on a fully taxable equivalent basis increased to 3.41% compared to 3.21% in the third quarter of 2024; and 3.40% for the quarter ended June 30, 2025.

Net interest income for the nine months ended September 30, 2025 increased by $1.61 million, or 4%, to $38.37 million compared to $36.76 million in the first nine months of 2024. The net interest margin on a fully taxable equivalent basis was 3.34% for the first nine months of 2025.

Total loans increased by $6.88 million during the quarter to $1.14 billion as of September 30, 2025 compared to $1.13 billion as of June 30, 2025; and increased by $22 million during the first three quarters of 2025. Total deposits decreased by $1.77 million during the third quarter to $1.38 billion as of September 30, 2025; and decreased by $18.51 million as compared to total deposits at the end of 2024. The decrease in deposits for both the quarter and year-to-date reflects non-renewal of approximately $40 million of time deposits related to the State of Illinois Ag Invest program due to a temporary disruption of the bank’s participation in the program during the charter consolidation process. The Company expects to renew most of that funding by the end of 2025, which will be accretive to net interest margin.

The provision for loan losses for the quarter ended September 30, 2025 increased by $187 thousand to $372 thousand as compared to $185 thousand in the third quarter of the prior year; and increased by $134 thousand compared to the second quarter of 2025. The provision for loan losses for the nine months ended September 30, 2025 was $1.91 million, a $1.52 million increase over the provision expense for the first nine months of 2024. Net loan charge-offs totaled $363 thousand and $3.30 million for the quarter and nine months ended September 30, 2025, respectively.

Total non-performing assets of the Company as of September 30, 2025 were $28.44 million compared to $28.29 million the previous quarter, and $28.42 million at the end of 2024. The ratio of non-performing assets to total assets was largely unchanged at 1.75% as of September 30, 2025 compared to 1.76% as of June 30, 2025 and 1.74% as of December 31, 2024.

Noninterest income for the quarter ended September 30, 2025 decreased $203 thousand to $1.78 million compared to $1.99 million in the third quarter of the prior year. The decrease is primarily due to a $405 thousand decrease in bank owned life insurance revenue due to benefits received in the third quarter of 2024.

Noninterest income for the nine months ended September 30, 2025 increased by $1.41 million to $6.73 million compared to $5.32 million for the first three quarters of 2024. This increase includes $1.2 million of non-recurring revenue received under a debit card branding agreement.

Noninterest expense for the quarter ended September 30, 2025 totaled $12.36 million, a $2.50 million increase over $9.89 million in the third quarter of 2024; and a $408 thousand increase from the quarter ended June 30, 2025. The increase in operating expenses over the third quarter of 2024 includes $1.65 million in non-recurring expenses, primarily related to charter consolidation.

Noninterest expense for the nine months ended September 30, 2025 increased by $7.84 million to $36.49 million compared to $28.64 million in the first three quarters of 2024. The increase in noninterest expense includes $5.49 million in non-recurring expenses. The table below includes expenses for the nine months ended September 30, 2025 by expense category, breaks out the non-recurring expenses and compares the amount, excluding the non-recurring expenses, to the noninterest expenses for the first three quarters of 2024.

The non-recurring expenses included in salary and employee benefits and outside services are all attributable to the charter consolidation effort. The other non-recurring expenses include $3.29 million of charter consolidation expenses such as conversion costs for the core and ancillary systems, contract cancellations, and customer communications; a $1.96 million impairment charge on a nonmarketable equity investment; and $238 thousand of other expenses. Excluding these non-recurring items noninterest expenses increased $2.35 million, or 8%, over the first nine months of 2024.

The closing price for the Company’s stock was $34.15, as of the close of business October 14, 2025. Tangible Book Value per Share of the Company’s common stock increased by $1.87 and $3.65 to $46.24 compared to $44.37 as of June 30, 2025 and $42.59 as of December 31, 2024, respectively. The Tangible Book Value per Share of the Company’s common stock, excluding Accumulated Other Comprehensive Income was $52.62 as of September 30, 2025, compared to $51.79 at the end of 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 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.