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 Todd James
Chief Executive Officer Chief Financial Officer
(815) 847-7500 (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 December September June
31, 31, 30, 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
-----------------------------------------------------------------
December September
March 31, 31, 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
$(HTM.AU)$ 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%
(END) Dow Jones Newswires
April 22, 2025 19:33 ET (23:33 GMT)
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