Foresight Reports Third Quarter 2025 Results

Rhea-AI Summary

Foresight Financial Group (OTCQX: FGFH) reported Q3 2025 net income of $1.60M, down 53% year-over-year and 46% versus Q2 2025; diluted EPS was $0.44. Results include $1.65M of Q3 non-recurring expenses tied to a charter consolidation and systems conversions and $1.96M impairment on other equity investments. Net interest income rose to $13.16M (+7% vs Q3 2024) with a fully taxable equivalent NIM of 3.41%. Total loans were $1.14B and total deposits were $1.38B at Sept 30, 2025; deposits fell largely due to non-renewal of ~$40M in Ag Invest time deposits during consolidation. Tangible book value per share was $46.24.

Positive

• Net interest income of $13.16M (+7% YoY)
• NIM (FTE) improved to 3.41% in Q3 2025
• Total loans rose to $1.14B as of Sept 30, 2025
• Tangible book value per share increased to $46.24

Negative

• Net income down 53% YoY to $1.60M in Q3 2025
• Diluted EPS fell to $0.44 in Q3 2025
• Non-recurring expenses of $1.65M in Q3 ($5.49M YTD)
• Impairment charge of $1.96M on equity investments
• Deposits decreased $18.51M year-to-date; $1.77M in Q3

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.

	Nine Months Ended September 30,
	2025				2024
			Excluding
	Actual	Non-Recurring	Non-Recurring		Actual
Operating Expenses:	Expenses	Expenses	Expenses		Expenses
	(in thousands)
Salaries and employee benefits	19,419	352	19,067		18,287
Occupancy expense of premises, net	2,383		2,383		2,031
Outside services	1,703	420	1,283		1,176
Data processing	3,771		3,771		2,946
Other	9,209	4,719	4,490		4,203
	36,485	5,491	30,994		28,643

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.

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
September 30, 2025 and December 31, 2024
(Unaudited)
	September 30,				December 31,
Assets		2025				2024
	(in thousands, except per share data)
Cash and due from banks	$	19,601			$	16,905
Interest-bearing deposits in banks		25,371				45,357
Federal funds sold		1,989				1,738
Total cash and cash equivalents		46,961				64,000
Interest-bearing deposits in banks - term deposits		1,624				4,434
Debt securities:		-
Debt securities available-for-sale (AFS)		369,287				369,945
Debt securities held-to-maturity (HTM)		2,741				3,263
Marketable equity securities and other investments		5,545				7,592
Loans held for sale		-				852
Loans, net of allowance for credit losses		1,123,376				1,100,657
Foreclosed assets and other real estate owned, net		56				-
Premises and equipment, net		18,054				17,125
Bank owned life insurance		24,812				24,459
Other assets		36,317				40,892
Total assets	$	1,628,772			$	1,633,219
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	241,473			$	249,076
Interest-bearing		1,140,725				1,151,627
Total deposits		1,382,198				1,400,703
Federal funds purchased		-				5,804
Securities sold under agreements to repurchase		26,354				15,017
Federal Home Loan Bank (FHLB) and other borrowings		37,662				40,911
Accrued interest payable and other liabilities		15,666				17,386
Total liabilities		1,461,880				1,479,821
Stockholders' equity:
Preferred stock		-				-
Common stock		1,063				1,060
Additional paid-in capital		16,716				16,482
Retained earnings		188,119				184,961
Treasury stock, at cost		(16,013	)			(16,008	)
Accumulated other comprehensive loss		(22,992	)			(33,097	)
Total stockholders' equity		166,892				153,398
Total liabilities and stockholders' equity	$	1,628,772			$	1,633,219

Foresight Financial Group, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
	Nine Months Ended September 30,
	2025				2024
	(in thousands, except per share data)
Interest and dividend income:
Loans, including fees	$	52,550			$	52,035
Debt securities:
Taxable		6,231				5,351
Tax-exempt		1,201				1,241
Interest-bearing deposits in banks and other		955				1,650
Federal funds sold		12				91
Total interest income		60,949				60,368
Interest expense:
Deposits		21,395				22,214
Federal funds purchased		6				57
Securities sold under agreements to repurchase		166				352
FHLB and other borrowings		1,011				986
Total interest expense		22,578				23,609
Net interest income		38,371				36,759
Provision for credit losses		1,908				387
Net interest and dividend income, after provision for credit losses		36,463				36,372
Noninterest income:
Customer service fees		1,316				1,050
Loss on sales and calls of AFS securities, net		0				-111
Gain on sale of loans, net		243				590
Loan servicing fees, net		641				57
Bank owned life insurance		500				950
ATM / interchange fees		1,655				1,604
Other		2,375				1,180
Total noninterest income		6,730				5,320
Noninterest expenses:
Salaries and employee benefits		19,419				18,287
Occupancy expense of premises, net		2,383				2,031
Outside services		1,703				1,176
Data processing		3,771				2,946
Other		9,209				4,203
Total noninterest expenses		36,485				28,643
Income before income taxes		6,708				13,049
Income tax expense		1,384				2,878
Net income	$	5,324			$	10,171
Earnings per common share:
Basic	$	1.48			$	2.92
Diluted	$	1.48			$	2.91

Foresight Financial Group, Inc. and Subsidiaries
Consolidated Condensed Statements of Income
(Unaudited)
	For the Quarter Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
	2025				2025				2025				2024				2024
Interest and dividend income:
Loans, including fees	$	17,893			$	17,739			$	16,918			$	17,249			$	17,943
Interest on investment securities		2,447				2,394				2,591				2,269				2,183
Interest on fed funds sold and other deposits		150				285				532				818				573
Total interest income		20,490				20,418				20,041				20,336				20,699
Interest expense:
Deposits		6,930				7,099				7,366				7,641				7,885
Federal funds purchased		4				-				2				7				29
FHLB and other borrowings		398				370				409				460				499
Total interest expense		7,332				7,469				7,777				8,108				8,413
Net interest income		13,158				12,949				12,264				12,228				12,286
Provision for credit losses		372				238				1,298				665				185
Net interest income after provision for loan losses		12,786				12,711				10,966				11,563				12,101
Noninterest income:
Customer service fees		424				551				341				371				366
Net securities gains (losses)		-				-				-				-				-
Gain on sale of loans, net		79				26				138				182				303
Loan servicing fees, net		106				226				309				192				(98	)
Bank owned life insurance		166				177				157				160				571
ATM / debit card revenue		605				555				495				539				547
Other		404				1,468				503				429				298
Total noninterest income		1,784				3,003				1,943				1,873				1,987
Noninterest expenses:
Salaries and employee benefits		6,808				6,408				6,203				6,383				6,302
Occupancy expense of premises, net		911				772				700				660				663
Outside services		615				422				666				435				411
Data processing		1,227				1,403				1,141				1,359				1,073
Other		2,795				2,943				3,471				1,414				1,409
Total noninterest expenses		12,356				11,948				12,181				10,251				9,858
Income before income taxes		2,214				3,766				728				3,185				4,230
Income tax expense		612				779				(7	)			692				833
Net income	$	1,602			$	2,987			$	735			$	2,493			$	3,397

Foresight Financial Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
	As of
	September 30,				June 30,				March 31,				December 31,				September 30,
		2025				2025				2025				2024				2024
Assets
Cash and due from banks	$	19,601			$	28,002			$	19,996			$	16,905			$	30,162
Interest-bearing deposits in banks		25,371				13,025				46,118				45,357				20,040
Federal funds sold		1,989				787				452				1,738				2,183
Total cash and cash equivalents		46,961				41,814				66,566				64,000				52,385
Interest-bearing deposits in banks - term deposits		1,624				2,259				2,466				4,434				5,169
Debt securities:
Debt securities available-for-sale (AFS)		369,287				361,146				380,667				369,945				368,386
Debt securities held-to-maturity (HTM)		2,741				3,263				3,263				3,263				3,616
Marketable equity securities and other investments		5,545				5,446				5,671				7,592				6,738
Loans held for sale		-				480				573				852				794
Loans, net of allowance for credit losses		1,123,376				1,116,498				1,084,761				1,100,657				1,102,342
Foreclosed assets and other real estate owned, net		56				703				-				-				-
Premises and equipment, net		18,054				16,889				16,978				17,125				17,125
Bank owned life insurance		24,812				24,646				24,615				24,459				24,300
Other assets		36,317				37,870				40,519				40,892				39,350
Total assets	$	1,628,772			$	1,611,014			$	1,626,079			$	1,633,219			$	1,620,205
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	241,473			$	247,002			$	250,709			$	249,076			$	237,685
Interest-bearing		1,140,725				1,136,961				1,142,009				1,151,627				1,138,578
Total deposits		1,382,198				1,383,963				1,392,718				1,400,703				1,376,263
Federal funds purchased		-				-				55				5,804				4,764
Securities sold under agreements to repurchase		26,354				12,466				21,095				15,017				23,381
Federal Home Loan Bank (FHLB) and other borrowings		37,662				39,889				37,810				40,911				39,174
Accrued interest payable and other liabilities		15,666				14,737				16,670				17,386				16,970
Total liabilities		1,461,880				1,451,055				1,468,348				1,479,821				1,460,552
Stockholders' equity:
Preferred stock		-				-				-				-				-
Common stock		1,063				1,062				1,060				1,060				1,060
Additional paid-in capital		16,716				16,704				16,482				16,482				16,445
Retained earnings		188,119				187,237				184,972				184,961				183,118
Treasury stock, at cost		(16,013	)			(16,013	)			(16,008	)			(16,008	)			(16,008	)
Accumulated other comprehensive loss		(22,992	)			(29,031	)			(28,775	)			(33,097	)			(24,963	)
Total stockholders' equity		166,892				159,959				157,731				153,398				159,653
Total liabilities and stockholders' equity	$	1,628,772			$	1,611,014			$	1,626,079			$	1,633,219			$	1,620,205

KEY FINANCIAL RATIOS
(Unaudited)
	As of and for the Quarter Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
		2025				2025				2025				2024				2024
Basic earnings per common share	$	0.44			$	0.83			$	0.20			$	0.69			$	0.97
Diluted earnings per common share		0.44				0.82				0.20				0.69				0.97
Dividends per common share		0.20				0.20				0.20				0.18				0.18
Book value per common share		46.28				44.41				43.84				42.63				44.38
Tangible book value per common share		46.24				44.37				43.80				42.59				44.34
Tangible book value, excluding AOCI, per share		52.62				52.43				51.80				51.79				51.28
End of period shares outstanding		3,606,123				3,606,087				3,598,042				3,598,042				3,597,418
Average number of shares outstanding		3,606,119				3,606,137				3,598,042				3,597,478				3,494,270
Return on average assets		0.40	%			0.75	%			0.21	%			0.58	%			0.82	%
Return on average equity		3.90	%			7.60	%			2.18	%			6.08	%			8.83	%
Net interest margin, tax equivalent		3.41	%			3.40	%			3.25	%			3.14	%			3.21	%
Efficiency ratio, tax equivalent		81.23	%			73.61	%			83.72	%			72.58				68.97
ASSET QUALITY DATA
(Unaudited)	As of
(Amounts in thousands)	September 30,				June 30,				March 31,				December 31,				September 30,
		2025				2025				2025				2024				2024
Nonaccrual Loans		25,452				25,939				28,564				28,175				23,653
Accruing loans past due 90 days or more		1,967				688				185				230				680
Total non-performing loans		27,419				26,627				28,749				28,405				24,333
Other real estate owned and other assets		56				703				6				13				7
Impaired other investments		961				961				961				-				-
Total non-performing Assets		28,436				28,291				29,716				28,418				24,340
Total Loans		1,137,006				1,130,124				1,100,853				1,115,351				1,117,022
Allowance for credit losses		13,630				13,626				16,092				14,694				14,678
Loans, net of allowance for credit losses		1,123,376				1,116,498				1,084,761				1,100,657				1,102,344
Nonperforming assets to total assets		1.75	%			1.76	%			1.83	%			1.74	%			1.50	%
Nonperforming loans to total loans		2.41	%			2.36	%			2.61	%			2.55	%			2.18	%
Allowance for credit losses to total loans		1.20	%			1.21	%			1.46	%			1.32	%			1.31	%
Allowance for credit losses to nonperforming loans		49.71	%			51.17	%			55.97	%			51.73	%			60.32	%

FAQ

What did FGFH report for Q3 2025 net income and EPS?

FGFH reported $1.60M net income and $0.44 diluted EPS for Q3 2025.

How did FGFH's net interest income and margin perform in Q3 2025?

Net interest income was $13.16M (up 7% YoY) and NIM (FTE) was 3.41% in Q3 2025.

How did the charter consolidation affect FGFH's Q3 2025 results?

Q3 includes $1.65M of non-recurring consolidation and systems conversion expenses; YTD non-recurring costs totaled $5.49M.

What were FGFH's loan and deposit levels as of September 30, 2025?

Total loans were $1.14B and total deposits were $1.38B as of Sept 30, 2025.

Did FGFH record any impairments or charge-offs in 2025?

Yes. There was a $1.96M impairment on an equity investment and net loan charge-offs were $3.30M for the nine months ended Sept 30, 2025.

What is FGFH's tangible book value per share as of Sept 30, 2025?

Tangible book value per share was $46.24 as of Sept 30, 2025.