WINNEBAGO, Ill., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Foresight Financial Group, Inc., a Winnebago, IL based multi-bank holding company with fourteen offices in Stephenson, Winnebago, Boone and Kankakee counties, reported that for the third quarter of 2024, net income increased by 33.3% to $3,396,000 from $2,547,000 reported in the third quarter of 2023. The increase in net income compared to the third quarter of 2023 reflects a $1,386,000 decrease in the provision for loan losses and a $312,000 increase in net interest income. These favorable changes were partially offset by a $419,000 decrease in non-interest income and a $325,000 increase in operating expenses. The decrease in non-interest income includes a $328,000 reduction in net secondary market mortgage revenue, primarily due to reduction in the fair value of servicing rights. The increase in operating expense was largely driven by increased compensation expense, reflecting ongoing talent acquisition efforts initiated earlier in the year. Earnings per common share for the third increased to $0.97, compared to $0.71 for the third quarter of 2023.
Net income reported for the first nine months of 2024 was $10,171,000, a 30.21% increase over the $7,815,000 earned for the nine months ending September 30, 2023. The increase in net income compared to the first nine months of 2023 includes a $4,092,000 decrease in the provision for loan losses, which was partially offset by a $454,000 reduction in non-interest income and a $697,000 increase in operating expenses. Year to date earnings per common share for 2024 was $2.93, compared to $2.19, for the first nine months of 2023. The results for the first nine months of 2024 produced a return on average assets of 0.85% and return on stockholders' equity of 9.41%.
Foresight's balance sheet has experienced modest growth during the past year with total assets increasing 6.5% to $1.618 billion. Total gross loans increased 7.2% to $1.117 billion and total deposits increased 2.8% to $1.399 billion as of September 30, 2024. The majority of the loan growth was in commercial and commercial real estate lending. The deposit growth has been in demand deposits and certificates of deposit, with some funding shifting from savings and money market accounts to certificates of deposit to lock in term rates. The net interest margin for the first nine months of 2024 was 3.26% compared to 3.35%.
Foresight's asset quality remains strong. Non-performing assets of the Company as of September 30, 2024, totaled $23.7 million, up from $21.5 million the previous quarter. Loans past due 30 to 89 days remain low at 0.31% of outstanding loans.
Chief Executive Officer Peter Morrison stated "we are pleased with the year over year performance improvement, despite continued net interest margin challenges industrywide. FGFH stock performance has been a bright spot in 2024 as its price has increased 41% since the end of 2023, however we still feel our stock is significantly undervalued. As we move into the final quarter of 2024, we anticipate a strong finish to a year of significant positive change on several levels within the organization."
The closing price for the Company's stock was $33.07, as of close of business October 21, 2024. Book value of the Company's common stock increased by $4.51 to $44.30 as of September 30, 2024, compared to $39.79 as of December 31, 2023. The increase in book value per share during the first nine months of 2024 includes a $2.42 increase in Accumulated Other Comprehensive Income, reflecting a decrease in the net unrealized loss on available for sale securities.
About Foresight Financial
Foresight Financial is a multi-bank holding company located in Northern Illinois, Its subsidiary community banks include Northwest Bank of Rockford, State Bank in Freeport, State Bank of Davis, German-American State Bank, German Valley, Lena State Bank, and the State Bank of Herscher. Foresight's common stock is listed 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.
