(MENAFN- GlobeNewsWire - Nasdaq) WINNEBAGO, Ill., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Foresight Financial Group, Inc. (OTCQX: FGFH) reported net income of $4.27 million for the quarter ended September 30, 2026, a 167% increase compared to $1.60 million reported for the third quarter of 2025 and a 2% decrease compared to $4.38 million reported for the second quarter of 2026. Diluted earnings per share were $1.18 for the quarter compared to $0.44 for the third quarter of 2025 and $1.20 for the second quarter of 2026. The third quarter results produced a return on average assets and return on average equity of 0.98% and 9.69%, respectively. Net income for the first nine months of 2026 was $12.54 million, up 135% from $5.32 million for the same period in 2025. Diluted earnings per share for the first nine months were $3.43, compared with $1.47 in the prior year period. The first nine months of 2026 produced a return on average assets and return on average equity of 0.99% and 9.63%, respectively.
Earnings growth for the first nine months of 2026 compared to the prior-year period was driven by higher net interest income, lower credit costs and reduced noninterest expense, partially offset by a modest decrease in noninterest income. The comparison also reflects the absence of certain nonrecurring income and expenses recognized in the prior-year period, including $1.20 million of revenue received under a card branding agreement, $3.53 of costs associated with the charter consolidation initiative and a $1.96 million impairment charge on a nonmarketable equity investment.
“We are pleased with the Company's continued earnings strength through the first nine months of 2026,” said Peter Morrison, Chief Executive Officer.“Our year-over-year results reflect sustained improvement in net interest income, operating efficiency and shareholder value. While net interest margin moderated during the third quarter and certain credit metrics increased from the prior quarter, overall asset quality remains substantially improved from one year ago, and the Company continues to maintain a strong financial position.”
Net interest income increased to $14.81 million for the quarter ended September 30, 2026, compared to $13.16 million for the third quarter of 2025 and $14.92 million for the second quarter of 2026. The tax-equivalent net interest margin for the third quarter of 2026 was 3.53%, compared to 3.36% in the prior-year quarter and 3.69% in the linked quarter.
For the first nine months of 2026, net interest income increased $5.70 million, or 14.8%, to $44.07 million compared to $38.37 million for the first nine months of 2025. The tax-equivalent net interest margin expanded to 3.62%, compared to 3.33% in the prior year period.
The year-over-year increase in net interest income and expansion of the net interest margin were driven primarily by growth in average deposits and average earning assets, and a lower cost of interest-bearing deposits. Average earning assets increased by $74.8 million to $1.639 billion for the first nine months of 2026 compared to $1.564 billion in the prior-year period. While average total loans increased by only $235 thousand to $1.118 billion for the first nine months of 2026 compared to the prior year period, average investment securities increased by $69.0 million with the tax-equivalent yield on investment securities increasing by fifty-one basis points to 3.04%. The average rate paid on interest-bearing deposits decreased by thirty-five basis points to 2.16%, compared to 2.51% for the first nine months of 2025.
Compared to the second quarter of 2026, the third-quarter net interest margin decreased by 16 basis points. The linked-quarter decrease reflected a 15-basis-point decline in the tax-equivalent yield on average earning assets, including a 19-basis-point decrease in the average loan yield. The average cost of total interest-bearing liabilities remained unchanged at 2.17%. Average earning assets increased by $42.1 million from the linked quarter, primarily due to higher average investment securities and interest-bearing deposits at other institutions, partially offset by a $13.29 million decrease in average loans.
The provision for credit losses totaled $450 thousand during the third quarter of 2026, compared to $372 thousand in the third quarter of 2025 and $524 thousand in the second quarter of 2026. For the nine months ended September 30, 2026, the provision for credit losses totaled $1.54 million, a decrease of $373 thousand, or 19.5%, from $1.91 million in the prior year period.
Nonperforming assets totaled $18.82 million, or 1.10% of total assets, as of September 30, 2026, compared to $28.44 million, or 1.75% of total assets, as of September 30, 2025 and $16.86 million, or 0.98% of total assets, as of June 30, 2026. The year-over-year decrease primarily reflected a reduction in nonperforming loans and the absence of the impaired other investment reported at September 30, 2025. The allowance for credit losses was $13.27 million, representing 1.20% of total loans and 70.8% of nonperforming loans at September 30, 2026.
Noninterest income totaled $2.38 million for the third quarter of 2026, an increase of $596 thousand, or 33.4%, compared to $1.78 million in the third quarter of 2025 and an increase of $51 thousand compared to the second quarter of 2026. The year-over-year increase included a $124 thousand increase in customer service fees, a $101 thousand increase in card interchange fees, a $141 thousand increase is loan servicing revenue and a $198 thousand increase in other income.
Noninterest income decreased by $140 thousand to $6.59 million for the first nine months of 2026, compared to $6.73 million for the first nine months of 2025. The decrease is due to the absence of $1.20 million of non-recurring revenue recognized in the prior-year period related to a debit card branding agreement. This decrease was substantially offset by increases in customer service fees, card interchange revenue, gains on sales of loans and net loan servicing fees.
Noninterest expense totaled $11.07 million for the third quarter of 2026, a decrease of $1.29 million, or 10.4%, compared to $12.36 million for the third quarter of 2025 and an increase of $206 thousand, or 1.9%, compared to the second quarter of 2026. The year-over-year decrease primarily reflected the absence of expenses related to the charter consolidation initiative, which totaled $1.65 million in the prior-year quarter.
For the first nine months of 2026, noninterest expense declined by $4.04 million, or 11.1%, to $32.45 million compared to $36.49 million in the prior-year period. The decrease primarily reflected the absence of $5.49 million of nonrecurring expenses incurred in 2025, including expenses associated with the charter consolidation initiative and an impairment charge on a nonmarketable equity investment. Excluding the nonrecurring expenses incurred in the first nine months of 2025 noninterest expenses increased $1.45 million, or 4.7%.
Total assets were $1.702 billion as of September 30, 2026, an increase of $72.73 million, or 4.5%, from $1.629 billion at September 30, 2025. Total deposits increased by $107.83 million, or 7.8%, to $1.490 billion. Total loans held for investment decreased by $30.60 million, or 2.7%, to $1.106 billion, while available-for-sale debt securities increased by $122.18 million to $491.47 million. The loan-to-deposit ratio declined to 74.3% at September 30, 2026, compared to 82.3% at September 30, 2025.
The closing price for the Company's common stock was $49.51 on September 30, 2026, a 52% increase over the closing price of $32.48 on September 30, 2025. Tangible book value per share was $46.51 as of September 30, 2026, compared to $46.24 at September 30, 2025 and $48.48 at June 30, 2026. The linked-quarter decline in reported tangible book value reflected a decrease in accumulated other comprehensive income. Excluding accumulated other comprehensive income, tangible book value per share increased to $55.89 as of September 30, 2026, compared to $52.62 at September 30, 2025 and $54.91 at June 30, 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 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.
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