Foresight Reports 2025 Fourth Quarter and Full Year Results

WINNEBAGO, Ill., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Foresight Financial Group, Inc. (OTCQX: FGFH) reported net income of $2.54 million for the quarter ended December 31, 2025, a 2% increase compared to $2.49 million reported for the fourth quarter of 2024, and a 59% increase compared to $1.60 million reported for the third quarter of 2025. Diluted Earnings per Share for the fourth quarter was $0.70 compared to $0.69 for the fourth quarter of 2024 and $0.44 for the most recent quarter ended September 30, 2025. The 2025 fourth quarter results include $1.16 million in non-recurring expenses, a $961 thousand impairment charge on a non-marketable equity investment and $197 thousand of conversion related expenses. The fourth quarter results produced a Return on Average Equity of 5.96% and Return on Average Assets of 0.60%.

Net income for the year ended December 31, 2025 decreased by 38% to $7.87 million compared to $12.66 million for 2024. The decrease in net income reflects a $1.63 million increase in provision for loan losses, a $2.92 million impairment charge related to an other equity investment and $3.49 million of charter consolidation related expenses. Diluted Earnings per Share for 2025 was $2.17 compared to $3.59 for 2024.

Foresight CEO Peter Q. Morrison stated “the final systems conversions and operational consolidation of our Company’s six separate banking charters into one was completed during the fourth quarter. The charter consolidation process, which included five core and ancillary systems conversions, was an expensive and time-consuming effort that we are happy to have behind us. That, coupled with the legacy credit challenges and associated credit marks, which were primarily from our German American market, caused 2025 to be both a challenging and transitional year. As a result of concerted efforts throughout 2025 to significantly improve our credit profile, we were able to achieve a 46% reduction in non-performing assets which is reflected in our fourth quarter results. We are grateful to see renewed interest in Foresight’s stock, which closed at $43.25 on January 21, 2026, a 34% increase over the closing price one year earlier. As we enter 2026, the Company is positioned for future growth and profitability, and we are focused on gaining operational efficiencies, strengthening our sales culture, enhancing our product offerings, and maintaining a strong credit culture.”

Net interest income for the fourth quarter of 2025 increased by $2.08 million, or 17%, to $14.30 million as compared to $12.23 million for the fourth quarter of 2024; and increased by $1.15 million, or 9%, compared to the quarter ended September 30, 2025. The taxable equivalent net interest margin increased to 3.53% compared to 3.14% in the fourth quarter of 2024; and 3.41% for the quarter ended June 30, 2025.

Net interest income for the year ended December 31, 2025 increased by $3.69 million, or 8%, to $52.67 million compared to $48.99 million for 2024. The tax equivalent net interest margin was 3.35% for 2025, increasing ten basis points over 2024. The Federal Reserve rate cuts in late third quarter and in the fourth quarter of 2025 contributed to the Company’s ability to lower cost of funds more than the decrease in earning asset yields.

Total loans increased by $4.6 million during the quarter to $1.141 billion as of December 31, 2025 compared to $1.137 billion as of September 30, 2025; and increased by $26.2 million, or 2%, since the end of 2024. Overall loan growth for the quarter was hindered by pay-offs of participations purchased and other intentional exits of watch credits.

Total deposits increased by $46.4 million during the fourth quarter to $1.43 billion as of December 31, 2025; and increased by $27.8 million as compared to total deposits at the end of 2024.

The provision for loan losses for the quarter ended December 31, 2025 increased by $107 thousand to $772 thousand as compared to $665 thousand in the fourth quarter of the prior year; and increased by $400 thousand compared to the third quarter of 2025. The provision for loan losses for the year ended December 31, 2025 was $2.68 million, a $1.63 million increase over the provision expense for 2024. Net loan charge-offs totaled $1.41 million and $5 million for the quarter and year ended December 31, 2025, respectively.

Total non-performing assets of the Company as of December 31, 2025 were $15.31 million compared to $28.43 million in the previous quarter, and $28.42 million at the end of 2024. The ratio of non-performing assets to total assets dropped to 0.92% from 1.75% as of September 30, 2025 and 1.74% as of December 31, 2024. The drop in non-performing assets during the fourth includes $1.69 million of net paydowns, $1.41 million of net loan charge-offs, $961 thousand investment impairment charged to expense, $7.39 million of net upgrades to performing status, and $1.65 million reduction in loans over 90 days delinquent and foreclosed assets.

Non-interest income for the quarter ended December 31, 2025 decreased $102 thousand to $1.77 million compared to $1.87 million in the fourth quarter of the prior year.

Non-interest income for the year ended December 31, 2025 increased by $1.31 million to $8.50 million compared to $7.19 million for 2024. This increase includes $1.2 million of non-recurring revenue received under a branding agreement.

Non-interest expense for the quarter ended December 31, 2025 totaled $11.87 million, a $1.62 million increase over $10.25 million in the fourth quarter of 2024; and a $487 thousand decrease from the most recent quarter ended September 30, 2025.

Non-interest expense for the year ended December 31, 2025 increased by $9.46 million to $48.35 million compared to $38.89 million in 2024. This increase includes $6.65 million in non-recurring expenses. The table below breaks out non-recurring expenses by expense category for the full year 2025:

The non-recurring salaries and benefits and outside services are all attributable to the charter consolidation effort. Non-recurring other expenses include $2.69 million of charter consolidation expenses, a $2.92 million impairment of an other investment, and $238 thousand of other nonrecurring expenses. Excluding the non-recurring items noninterest expenses increased $2.72 million, or 7%, over 2024.

The closing price for the Company’s stock was $42.48, as of the close of business January 16, 2025. Tangible Book Value per Share of the Company’s common stock increased by $0.94 and $4.59 to $47.18 compared to $46.24 as of September 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 increased $1.33 to $53.12 as of December 31, 2025, compared to $51.79 at the end of 2024.

About Foresight Financial Group, Inc.

Foresight Financial Group, Inc. is a the largest 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.