Foresight Reports First Quarter 2025 Results

Rhea-AI Summary

Foresight Financial Group (OTCQX:FGFH) reported a significant decline in Q1 2025 performance, with net income dropping 79% to $734 thousand from $3.51 million in Q1 2024. Diluted EPS decreased 80% to $0.20, while ROAE and ROAA fell to 2.18% and 0.21% respectively.

The decline was attributed to increased loan loss provisions, an impairment charge on investments, and expenses related to charter consolidation. Net interest income showed a modest increase to $12.26 million, with average total loans rising to $1.10 billion and deposits reaching $1.41 billion.

The company is proceeding with the consolidation of six banking charters, scheduled for Q2 2025, with system conversions planned between August and October 2025. Weaknesses were identified in the clean energy sector portfolio, leading to increased loan loss provisions of $1.30 million. Non-performing assets rose to $29.72 million, up from $14.72 million year-over-year.

Positive

• Net interest income increased by $152,000 to $12.26 million
• Average total loans grew by $21.2 million to $1.10 billion
• Total deposits increased by $34.4 million to $1.41 billion
• Tangible book value per share increased by $3.63 YoY to $43.80

Negative

• Net income declined 79% to $734,000 from $3.51 million YoY
• Diluted EPS dropped 80% to $0.20 from $1.00
• Non-performing assets doubled to $29.72 million from $14.72 million YoY
• Loan loss provisions increased to $1.30 million from $64,000 YoY
• $1.96 million impairment charge on green energy sector investment
• Operating expenses increased by $3.03 million to $12.18 million

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	%

FAQ

What caused FGFH's significant profit decline in Q1 2025?

The 79% profit decline was due to increased loan loss provisions, an impairment charge on green energy investments, and expenses related to charter consolidation.

When will FGFH complete its banking charter consolidation?

The legal consolidation is scheduled for Q2 2025, with system conversions planned between August and October 2025.

How much did FGFH's non-performing assets increase in Q1 2025?

Non-performing assets increased to $29.72 million, up from $14.72 million in Q1 2024, primarily due to weaknesses in the clean energy sector portfolio.

What is FGFH's current tangible book value per share?

As of March 31, 2025, the tangible book value per share was $43.80, up from $40.17 year-over-year.

How did FGFH's loan and deposit growth perform in Q1 2025?

Average total loans increased by $21.2 million to $1.10 billion, while deposits grew by $34.4 million to $1.41 billion compared to Q1 2024.