Diluted Earnings per Share for the first quarter of 2026 were $1.07 compared to $0.20 for the first quarter of 2025 and $0.70 for the most recent quarter ended December 31, 2025. The first quarter of 2026 results produced a Return on Average Equity of 9.13% and a Return on Average Assets of 0.95%
The increase in earnings compared to the first quarter of 2025 included $2.07 million, or 17%, growth in net interest income and a 1.67 million, or 14%, reduction in non-interest expense. The reduction in non-interest expense was due primarily to non-recurring expenses incurred in the prior year's first quarter, including $313 thousand of charter consolidation expense and a $1.96 million impairment charge related to a non-marketable equity investment.
The increase in earnings compared to the most recent quarter ended December 31, 2025 was primarily the result of reduced non-interest expense due to non-recurring items in the fourth quarter of 2025, which included $197 thousand of charter consolidation expense and a $961 thousand impairment charge related to a non-marketable equity investment.
"We are delighted with our results for the first quarter," said Peter Morrison, the Company's CEO. "With the charter consolidation and related expenses behind us, the Company is beginning to realize the benefits of the significant work that went into the process. In addition to consolidating charters, we simultaneously strengthened our credit administration practices, aligned and broadened our product and services offerings, expanded corporate treasury management services, launched a proprietary commercial credit card, created a Private Banking division, and will be expanding our wealth management capabilities. We believe the strategic investments we have made will continue to be accretive to earnings and are central to delivering a modern, comprehensive and competitive banking experience across all our markets, benefiting the Company and its shareholders as well as our customers, employees and the communities we serve," added Morrison.
Net interest income for the first quarter of 2026 increased by $2.07 million, or 17%, to $14.34 million as compared to $12.26 million for the first quarter of 2025, and increased by $35 thousand compared to the most recent quarter ended December 31, 2025.
The taxable equivalent net interest margin increased to 3.65% compared to 3.13% in the first quarter of 2025 and 3.52% for the quarter ended December 31, 2025. The growth in net interest income compared to the first quarter of 2025 was driven by improvements in the net interest margin and reflects a twenty-four basis point increase in yield on earning assets and a thirty-nine basis point decrease in the cost of interest-bearing liabilities.
Total loans held for investment decreased by $14.3 million during the quarter to $1.126 billion as of March 31, 2026 compared to $1.141 billion as of December 31, 2025, and increased by $25.4 million, or 2%, compared to March 31, 2025.
Total deposits increased by $110.1 million to $1.539 billion as of March 31, 2026 compared to $1.429 billion as of December 31, 2025, and increased by $145.9 million compared to March 31, 2025. Total deposits as of March 31, 2026 and December 31, 2025 included large short-term deposits that were reduced immediately after each quarter end. Total average deposits for the quarter ended March 31, 2026 equaled $1.435 billion, compared to $1.447 billion for the quarter ended December 31, 2025 and $1.398 billion for the quarter ended March 31, 2025.
The provision for loan losses for the quarter ended March 31, 2026 decreased by $737 thousand to $561 thousand, compared to $1.30 million for the first quarter of 2025, and decreased by $211 thousand as compared to $772 thousand in the fourth quarter of 2025.
Total non-performing assets as of March 31, 2026 were $16.08 million, compared to $29.7 million as of March 31, 2025, and $15.3 million as of December 31, 2025. The ratio of non-performing assets to total assets declined to 0.91%, from 1.83% as of March 31, 2025 and 0.92% at year-end 2025.
Non-interest income for the quarter ended March 31, 2026 decreased by $62 thousand to $1.88 million compared to $1.94 million in the first quarter of 2025, and increased by $110 thousand compared to the most recent quarter ended December 31, 2025. The decrease compared to the first quarter of 2025 reflects a $333 thousand decrease in loan servicing fees due to changes in the fair value of the originated mortgage servicing rights, which offset growth in customer service fees, card interchange and other income.
Non-interest expense for the quarter ended March 31, 2026 totaled $10.52 million, a $1.66 million decrease from $12.18 million in the first quarter of 2025, and a $1.35 million decrease from the most recent quarter ended December 31, 2025. The decrease in non-interest expense compared to the first quarter of 2025 reflects the non-recurring expenses incurred in the first quarter of 2025, which included $313 thousand of charter consolidation expenses and a $1.96 million impairment charge related to a nonmarketable equity investment. The $1.35 million reduction in non-interest expense compared to the most recent quarter ended December 31, 2025 was due to non-recurring expenses in the fourth quarter of 2025, including $197 thousand related to the charter consolidation and a $961 thousand impairment charge related to a non-marketable equity investment.
The closing price for the Company's stock was $45.50 as of the close of business April 10, 2026. Tangible Book Value per Share of the Company's common stock increased by $0.77 and $4.15 to $47.95, compared to $47.18 as of December 31, 2025, and $43.80 as of March 31, 2025, respectively. The Tangible Book Value per Share, excluding accumulated other comprehensive income, increased $0.86 to $53.98 as of March 31, 2026, compared to $53.12 at the end of 2025.
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.
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
(Unaudited)
March 31,
December 31,
Assets
2026
2025
(in thousands, except per share data)
Cash and due from banks
$
18,696
$
15,844
Interest-bearing deposits in banks
118,000
11,254
Federal funds sold
3,900
775
Total cash and cash equivalents
140,596
27,873
Debt Securities:
Available-for-sale (AFS)
426,198
428,688
Held-to-maturity (HTM)
2,378
2,378
Marketable equity securities and other investments
4,420
4,427
Loans held for sale
352
1,549
Loans, net of allowance for credit losses
1,113,139
1,127,617
Premises and equipment, net
17,622
17,855
Bank owned life insurance
25,144
24,979
Other assets
32,840
33,281
Total assets
$
1,762,689
$
1,668,647
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing
$
226,404
$
219,275
Interest-bearing
1,312,249
1,209,276
Total deposits
1,538,653
1,428,551
Federal funds purchased
-
-
Securities sold under agreements to repurchase
-
-
Federal Home Loan Bank (FHLB) and other borrowings
36,668
53,429
Accrued interest payable and other liabilities
14,302
16,405
Total liabilities
1,589,623
1,498,385
Preferred stock
-
Common stock
1,063
1,063
Additional paid-in capital
16,734
16,720
Retained earnings
193,037
189,941
Treasury stock, at cost
(16,013
)
(16,013
)
Accumulated other comprehensive loss
(21,755
)
(21,449
)
Total stockholders' equity
173,066
170,262
Total liabilities and stockholders' equity
$
1,762,689
$
1,668,647
Foresight Financial Group, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended March 31,
2026
2025
(in thousands, except per share data)
Interest and dividend income:
Interest and fees on Loans
$
17,668
$
16,918
Interest on investment securities
3,233
2,591
Interest on fed funds sold and other deposits
168
532
Total interest income
21,069
20,041
Interest expense:
Deposits
6,442
7,366
Federal funds purchased
1
2
FHLB and other borrowings
288
409
Total interest expense
6,731
7,777
Net interest income
14,338
12,264
Provision for credit losses
561
1,298
Net interest and dividend income,
after provision for credit losses
13,777
10,966
Noninterest income:
Customer service fees
497
341
Net securities gains (losses)
(44
)
-
Gain on sale of loans, net
129
138
Loan servicing fees, net
-24
309
Bank owned life insurance
165
157
Card interchange fees
553
495
Other
605
503
Total noninterest income
1,881
1,943
Noninterest expenses:
Salaries and employee benefits
6,587
6,203
Occupancy expense of premises, net
751
700
Outside services
351
666
Data processing
1,317
1,141
Other
1,510
3,471
Total noninterest expenses
10,516
12,181
Income before income taxes
5,142
728
Income tax expense
1,253
-7
Net income
$
3,889
$
735
Earnings per common share:
Basic
$
1.08
$
0.20
Diluted
$
1.07
$
0.20
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,
2026
2025
2025
2025
2025
Interest and dividend income:
Interest and fees on Loans
$
17,668
$
18,343
$
17,893
$
17,739
$
16,918
Interest on investment securities
3,233
2,983
2,447
2,394
2,591
Interest on fed funds sold and other deposits
168
417
150
285
532
Total interest income
21,069
21,743
20,490
20,418
20,041
Interest expense:
Deposits
6,442
7,158
6,930
7,099
7,366
Federal funds purchased
1
-
4
-
2
FHLB and other borrowings
288
282
398
370
409
Total interest expense
6,731
7,440
7,332
7,469
7,777
Net interest income
14,338
14,303
13,158
12,949
12,264
Provision for credit losses
561
772
372
238
1,298
Net interest income ...
