Foresight Reports Second Quarter 2025 Results

Rhea-AI Summary

Foresight Financial Group (OTCQX: FGFH) reported Q2 2025 financial results, with net income of $2.99 million, down 8% from Q2 2024 but up 307% from Q1 2025. Diluted EPS was $0.82, compared to $0.94 in Q2 2024.

The quarter included $1.56 million in charter consolidation expenses, partially offset by $1.20 million in nonrecurring revenue from a debit card branding agreement. The company completed the legal consolidation of its six banking charters on May 1, 2025, with system integration expected in Q3-Q4 2025.

Key metrics include net interest income of $12.95 million (up 5% YoY), total loans of $1.13 billion, and deposits of $1.38 billion. The net interest margin improved to 3.40%, while non-performing assets ratio stood at 1.76%.

Positive

• Net income increased 307% quarter-over-quarter to $2.99 million
• Net interest income grew 5% YoY to $12.95 million
• Net interest margin improved to 3.40% from 3.24% YoY
• Tangible book value per share increased to $44.37, up $2.82 YoY
• Charter consolidation expected to provide significant cost savings

Negative

• Net income decreased 8% YoY and 45% for the first half of 2025
• Non-performing assets increased to $28.29 million from $21.40 million YoY
• Loan net charge-offs totaled $2.93 million in Q2 2025
• $1.96 million impairment charge on other investments
• Operating expenses increased by $2.31 million YoY due to consolidation costs

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%

FAQ

What were Foresight Financial's (FGFH) Q2 2025 earnings?

Foresight reported net income of $2.99 million with diluted EPS of $0.82 for Q2 2025, down 8% from $3.27 million in Q2 2024 but up 307% from Q1 2025.

How much did FGFH's charter consolidation impact Q2 2025 expenses?

The charter consolidation resulted in $1.56 million in expenses, including $57,000 in salary and benefits, $143,000 in outside services, and $1.36 million in data system conversion costs.

What is Foresight Financial's (FGFH) loan and deposit position in Q2 2025?

Total loans were $1.13 billion, up $29.27 million from Q1 2025, while total deposits were $1.38 billion, down $8.8 million during Q2 but up $11.5 million YoY.

How did FGFH's asset quality perform in Q2 2025?

Non-performing assets were $28.29 million (1.76% of total assets), down from $29.71 million in Q1 2025 but up from $21.40 million in Q2 2024. Net charge-offs were $2.93 million.

What is the status of Foresight Financial's banking charter consolidation?

The legal consolidation of six banking charters was completed on May 1, 2025, with operating system conversions expected to be completed in Q3 and Q4 2025.