Foresight Financial Group Reports 2024 Financial Performance

Foresight Financial Group, Inc. (OTCQX:FGFH) released its financial results for the year and fourth quarter ending December 31, 2024, revealing a decline in net income and earnings per share compared to the previous year. The company reported a net income of $12.66 million for the full year, down from $14.55 million in 2023, resulting in diluted earnings per share (EPS) of $3.59, a decrease of 12% from $4.08 in the prior year.

In the fourth quarter, Foresight’s net income was $2.49 million, a significant drop from $6.73 million reported in the same period of 2023. This decline was largely attributed to a $4.04 million increase in the provision for loan losses, which contrasted with a negative provision of $3.37 million in the fourth quarter of the previous year. Consequently, diluted EPS for Q4 2024 stood at $0.69 compared to $1.83 in Q4 2023.

For the full year, net interest income decreased slightly by $283 thousand to $48.99 million from $49.27 million in 2023. The net interest margin also fell by nine basis points to 3.25%, influenced by an inverted yield curve that raised deposit costs while limiting yield increases on earning assets.

The provision for loan losses totaled $1.05 million for 2024, marginally lower than the previous year’s provision of $1.10 million, indicating stable asset quality despite some fluctuations in non-performing assets, which rose to $28.41 million from $16.05 million at the end of 2023. Noninterest income also faced challenges, totaling $7.25 million for the year, down from $7.64 million due to a negative fair value adjustment related to the company’s mortgage servicing rights.

Operating expenses increased by 6.2%, reaching $38.96 million compared to $36.69 million in 2023. This rise was primarily driven by higher salaries and employee benefits linked to the addition of a new banking team based in Rockford and expanded treasury management services. Additional costs stemmed from data processing fees associated with a digital platform conversion and legal expenses related to an ongoing charter consolidation project expected to be completed by Q4 2025.

Despite these challenges, Foresight’s balance sheet showed modest growth during 2024, with total loans increasing by 3% to reach $1.12 billion and total deposits rising by 3.2% to $1.40 billion.

CEO Peter Q. Morrison noted that 2024 marked a transformative year for Foresight with significant changes including team expansions and strategic initiatives aimed at consolidating operations into a single platform by mid-2025. This consolidation is anticipated to generate operational efficiencies and cost savings that will enhance shareholder returns.

As of January 27, 2025, Foresight’s stock closed at $32.92 per share, with book value per share increasing to $42.59 from $40.08 at the end of 2023.

Foresight Financial Group’s financial results for 2024 reflect both challenges and opportunities as it navigates through increased operating costs and shifts in asset quality while positioning itself for future growth through strategic initiatives and operational efficiencies.

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