Foresight Reports 2026 Second Quarter and First Half Results

WINNEBAGO, Ill., July 15, 2026 (GLOBE NEWSWIRE) -- Foresight Financial Group, Inc. (OTCQX: FGFH) reported net income of $4.38 million for the quarter ended June 30, 2026, a 47% increase compared to $2.99 million reported for the second quarter of 2025 and a 13% increase compared to $3.89 million reported for the first quarter of 2026. Diluted earnings per share were $1.20 for the quarter compared to $0.82 for the second quarter of 2025 and $1.07 for the first quarter of 2026. The second quarter results produced a return on average assets and return on average equity of 1.04% and 10.07%.

Net income for the first six months of 2026 was $8.27 million, up 122% from $3.72 million for the same period in 2025. Diluted earnings per share for the first half were $2.27, compared with $1.03 in the prior year period. The first half 2026 results produced a return on average assets and return on average equity of 1.00% and 9.60%, respectively.

The earnings growth for the first half of 2026 compared to the prior year period was driven by margin expansion, lower credit costs and reduced non-interest expense, which was partially offset by a decrease in non-interest income. The decrease in non-interest income was due to $1.2 million of non-recurring revenue in the prior year period related to a debit card branding agreement. The reduction in non-interest expenses was also related to non-recurring items in the prior year period, including a $1.96 million impairment charge on a nonmarketable equity investment and $1.88 million of expenses directly related to the charter consolidation initiative.

“We are pleased with the continued momentum recognized during the second quarter,” said Peter Morrison, Chief Executive Officer. “The strategic initiatives completed during the past year are producing measurable results, including stronger profitability, improved operating efficiency and increased shareholder value.”

Net interest income increased to $14.92 million for the quarter ended June 30, 2026, compared to $12.95 million for the second quarter of 2025 and $14.34 million for the first quarter of 2026. The tax-equivalent net interest margin for the second quarter of 2026 expanded to 3.69%, compared to 3.33% in the prior-year quarter and 3.65% in the linked quarter.

For the first six months of 2026, net interest income increased $4.05 million, or 16.1%, to $29.26 million compared to $25.21 million for the first six months of 2025. The taxable equivalent net interest margin expanded to 3.67%, compared to 3.29% in the prior year period.

The growth in net interest income and improvement of the net interest margin for both the second quarter and first half of 2026 was driven primarily by strong deposit growth and a lower cost of deposits compared to the prior year periods. The rate on average interest-bearing deposits decreased by thirty-eight basis points to 2.17% for the first half of 2026 as compared to 2.55% for the first half of 2025. Average total deposits increased by $63.9 million, or 4.6%, to $1.449 billion for the first half of 2026 compared to $1.385 billion in the prior year period. The tax-equivalent yield on average total earning assets increased by ten basis points to 5.35% for the first half of 2026 as compared to the prior year period. Average total loans for the first half increased by $13.9 million to $1.124 billion as compared to $1.110 billion in the first half of the prior year, with the additional liquidity generated by the deposit growth being deployed in investment securities. Average total investment securities for the first half of 2026 increased by $48.6 million as compared to the prior year period, with the yield on investment securities increasing by forty-four basis points.

The provision for credit losses totaled $524 thousand during the second quarter of 2026, compared to $238 thousand in the second quarter of 2025 and $561 thousand in the first quarter of 2026. For the six months ended June 30, 2026 the provision for loan losses totaled $1.08 million, a $451 thousand, or 29%, decrease as compared to the first six months of the prior year.

Asset quality remained solid, with nonperforming assets totaling $16.9 million, or 0.98% of total assets, as of June 30, 2026 as compared to $28.29 million, or 1.76% of total assets, on June 30, 2025, and $16.08 million, 0.91% of total assets as of March 31, 2026.

Noninterest income totaled $2.33 million for the quarter, a $674 thousand decrease compared to $3.00 million in the second quarter of 2025. The decline was due to $1.20 million of non-recurring revenue received in the second quarter of the prior year related to a debit card branding agreement, which was partially offset by a $231 thousand increase in net loan servicing fees due to changes in the fair value of the mortgage servicing asset. In addition, card interchange fees increased by $114 thousand in the quarter compared to the second quarter of 2025, reflecting revenue from the recently implemented proprietary corporate card program.

Non-interest income totaled $4.21 million for the first six months of 2026, compared to $4.95 million for the first six months of 2025, primarily due to $1.2 million of non-recurring revenue recognized in the prior period and a $102 thousand decrease in net loan servicing fees due to valuation fluctuations of the mortgage servicing asset. These decreases were partially offset by a $141 thousand increase in deposit service fees and a $172 thousand increase in card interchange revenue, reflecting the Company’s initiatives to grow core non-interest revenue.

Noninterest expense totaled $10.86 million for the quarter ended June 30, 2026, decreasing by $1.09 million compared to $11.95 million for the second quarter of 2025. The decrease was due to $1.56 million in non-recurring expenses realized in the second quarter of 2025 related to the charter consolidation initiative. This decrease was partially offset by a $304 thousand, or 4.7% increase in salaries and benefits.

Non-interest expense for the first half of 2026 declined by $2.75 million, or 11.4%, to $21.38 million compared to $24.13 million in the first six months of the prior year, reflecting the absence of non-recurring expenses incurred in the prior period, including $1.88 million related to the charter consolidation initiative and a $1.96 impairment charge on a nonmarketable equity investment. These decreases were partially offset by a $689 thousand, or 5.5% increase in salaries and employee benefits.

The Company’s efficiency ratio for the second quarter improved to 62.3%, compared to 73.6% in the prior-year quarter and 64.1% in the linked quarter. The efficiency ratio for the six months ended June 30, 2026 improved to 63.2% compared to 78.6% for the first half of the prior year.

The closing price for the Company’s common stock was $48.04 on June 30, 2026, a 54% increase over the closing price of $31.13 on June 30, 2025. Tangible book value per share increased to $48.48 as of June 30, 2026, compared to $44.37 on June 30, 2025 and $47.95 on March 31, 2026. Excluding accumulated other comprehensive income, tangible book value per share increased to $54.91 as of June 30, 2026 compared to $52.43 on June 30, 2025 and $53.98 on March 31, 2026.

About Foresight Financial Group, Inc.

Foresight Financial Group, Inc. is the largest bank holding company headquartered in Winnebago County, Illinois and is the parent company of Foresight Bank, which has offices in the Illinois counties of Winnebago, Stephenson and Kankakee. Foresight Bank was formed through the legal consolidation of six long-standing community bank subsidiaries of Foresight Financial Group, including German American State Bank, State Bank of Davis, Northwest Bank of Rockford, State Bank (Freeport), Lena State Bank, and 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.