Foresight Reports Second Quarter 2025 Results
WINNEBAGO, Ill., July 21, 2025 — Foresight Financial Group, Inc. reported a net income of $2.99 million for the quarter ended June 30, 2025. This reflects an 8% decrease from the $3.27 million reported for the same period in 2024, still marking a significant increase of 307% from the $734 thousand reported for the first quarter of 2025. Diluted earnings per share stood at $0.82, a decrease from $0.94 in the second quarter of 2024 but an increase from $0.20 in the first quarter of 2025. The quarter included $1.56 million of charter consolidation expenses, offset by $1.20 million in nonrecurring revenue through a debit card branding agreement. The results for this quarter yielded a Return on Average Equity of 7.60% and a Return on Average Assets of 0.75%.
For the six months ending June 30, 2025, net income dropped by 45% to $3.72 million, from $6.77 million in the first half of 2024. This decrease is attributed to a rise of $1.33 million in the provision for loan losses, a $1.96 million impairment charge on other investments, and $1.88 million in charter consolidation expenses. For the first half of 2025, diluted earnings per share amounted to $1.03, a decline from $1.94 in the corresponding period of 2024.
Peter Q. Morrison, CEO of Foresight, commented, “The consolidation of our Company’s six banking charters, completed on May 1, 2025, along with the transition to a single operating system platform set to finish in this year’s third and fourth quarters, marks a significant advancement. The charter consolidation is anticipated to yield substantial savings by eliminating redundant expenses and enhancing efficiencies through a unified banking platform. This consolidation promotes more consistent credit administration, improving both credit quality and shareholder value.”
For the second quarter of 2025, net interest income rose by $588 thousand, or 5%, to $12.95 million, from $12.36 million in the same quarter of the previous year, and increased by $685 thousand, or 6%, compared to the previous quarter ending March 31, 2025. The net interest margin on a fully taxable equivalent basis increased to 3.40% from 3.24% in the second quarter of 2024 and 3.25% in the first quarter of 2025.
For the first half of 2025, net interest income increased by $740 thousand, or 3%, to $25.21 million compared to $24.47 million in the first half of 2024, with the net interest margin on a fully taxable equivalent basis at 3.29%.
Total loans expanded by $29.27 million within the quarter, reaching $1.13 billion as of June 30, 2025, compared to $1.10 billion at the end of March 2025, and an increase of $8.3 million from June 30, 2024. Total deposits dropped by $8.8 million during the second quarter to reach $1.38 billion as of June 30, 2025, though they increased by $11.5 million compared to the same date in 2024.
The provision for loan losses for the quarter increased by $100 thousand to $238 thousand from the $138 thousand recorded in the second quarter of 2024, though it decreased by $1.06 million from the first quarter of 2025. During the second quarter of 2025, loan net charge-offs amounted to $2.93 million. The provision for loan losses for the first half of 2025 was $1.54 million, representing a $1.33 million increase over the provision expense in the first half of 2024.
As of June 30, 2025, the Company’s total non-performing assets stood at $28.29 million, a decline from $29.71 million the previous quarter and an increase from $21.40 million as of June 30, 2024. The ratio of non-performing assets to total assets was 1.76% as of June 30, 2025, compared to 1.83% as of March 31, 2025, and 1.34% as of June 30, 2024.
For the second quarter ended June 30, 2025, noninterest income surged by $1.35 million to $3.0 million from $1.66 million in the previous year’s corresponding quarter. This increase is largely due to a $1.2 million infusion of non-recurring revenue from a debit card branding agreement.
For the first six months ending June 30, 2025, noninterest income rose by $1.61 million to $4.95 million compared to $3.33 million in the first half of 2024, inclusive of the $1.2 million non-recurring income from the debit card branding agreement.
Second quarter noninterest expenses totaled $11.95 million, reflecting a $2.31 million increase from $9.64 million in the second quarter of 2024, and a $234 thousand decrease from the first quarter of 2025. The rise in operating costs over the second quarter of 2024 encompassed $1.56 million in charter consolidation expenses, involving $57 thousand in salaries and benefits, $143 thousand in outside services, and $1.36 million in other expenses, primarily linked to data system conversions.
Looking at the first half of 2025, noninterest expenses climbed by $5.34 million to $24.13 million, compared to $18.79 million in the first half of 2024. This increase includes $1.88 million in charter consolidation expenses and a $1.96 million impairment charge on a nonmarketable equity investment.
As of the close of business on April 16, 2025, the Company’s stock was priced at $31.50. The tangible book value per share rose by $1.78 and $2.82 to $44.37 as of June 30, 2025, compared to $42.59 and $41.55 as of December 31, 2024, and June 30, 2024, respectively. Excluding Accumulated Other Comprehensive Income, the tangible book value per share stood at $52.43 as of June 30, 2025.
