Foresight Reports Third Quarter 2025 Results

Core Insights - Foresight Financial Group, Inc. reported a significant decline in net income for the third quarter of 2025, with a net income of $1.60 million, representing a 53% decrease from $3.40 million in Q3 2024 and a 46% decrease from $2.99 million in Q2 2025 [1][2] - The decrease in net income is attributed to increased provisions for loan losses, impairment charges, and non-recurring expenses related to charter consolidation and system conversions [2][3] Financial Performance - For the third quarter of 2025, diluted earnings per share (EPS) was $0.44, down from $0.97 in Q3 2024 and $0.82 in Q2 2025 [1] - Net interest income for Q3 2025 increased by $872 thousand, or 7%, to $13.16 million compared to $12.29 million in Q3 2024 [3] - The net interest margin improved to 3.41% in Q3 2025 from 3.21% in Q3 2024 [3] Year-to-Date Performance - For the nine months ended September 30, 2025, net income decreased by 48% to $5.32 million compared to $10.17 million for the same period in 2024 [2] - Noninterest income for the first nine months of 2025 increased by $1.41 million to $6.73 million compared to $5.32 million in the first nine months of 2024 [9] Asset Quality - Total non-performing assets as of September 30, 2025, were $28.44 million, slightly up from $28.29 million in the previous quarter [7] - The ratio of non-performing assets to total assets remained stable at 1.75% as of September 30, 2025 [7][28] Expenses - Noninterest expenses for Q3 2025 totaled $12.36 million, a $2.50 million increase from $9.89 million in Q3 2024, largely due to non-recurring expenses related to charter consolidation [10] - For the nine months ended September 30, 2025, noninterest expenses increased by $7.84 million to $36.49 million compared to $28.64 million in the same period in 2024 [11] Loans and Deposits - Total loans increased by $6.88 million during Q3 2025 to $1.14 billion, while total deposits decreased by $1.77 million to $1.38 billion [5] - The decrease in deposits is attributed to the non-renewal of approximately $40 million of time deposits related to the State of Illinois Ag Invest program [5] Management Commentary - The CEO highlighted the challenges and costs associated with the legal consolidation of the company's banking charters and emphasized the focus on future growth and efficiency improvements [3]