INVESTOR

FACTS

Transfer Agent

Computershare

Investor Services LLC

P.O. Box 43006

Providence, RI 02940-3006

800.368.5948

www.computershare.com/investor

Market Makers

Raymond James & Associates, Inc.

222 South Riverside Plaza

Seventh Floor

Chicago, IL 60606

800.800.4693

Monroe Securities, Inc.

100 North Riverside Plaza, Suite 1620

Chicago, IL 60606

312.327.2530

Corporate Information

Foresight Financial Group, Inc.

809 Cannell Puri Court, Suite 5

PO Box 339

Winnebago, IL 61088

815.847.7500

Email:

investor.relations@ffgbank.net

www.foresightfg.com

Corporate Officers

Peter Q. Morrison

President/CEO

Dean E. Cooke

Chief Financial Officer

Nora Koehler

Director of Human Resources

Andrew LaPour

Director of Information Technology

Lori Morgan

Director of Corporate Operations

K. Denise Osadjan

Chief Risk Officer/Corporate Secretary

Rusti Swanson

Chief Credit Officer

Directors

Robert W. Stenstrom

Chairman

John Collman

Fred Kundert

Peter Q. Morrison

John J. Morrissey

Carolyn Sluiter, D.V.M.

Jeffrey Sterling

Judd Thruman, J.D.

Douglas Wagner

A publication of the

INSIGHT

Foresight Financial Group, Inc.

Dear Shareholders,

May 2023

Core first quarter 2023 results reported net income of $1.951 million, a decrease of $1.406 million over the same period last year. The decrease was driven by isolated specific reserves on two unique sector credits. Net interest income increased $2.164 million or 21.24% over first quarter 2022 results. The company recorded a Return on Average Common Stockholder's Equity of 6.44% versus 9.03% for the same period last year, a 41.49% decrease year over year which represents Earnings per Common Share of $0.55 versus $0.94. We expect this negative earnings trend to discontinue for the balance of the year, having provided sufficient reserves for the credits as previously mentioned. While we anticipate margin compression throughout the remainder of 2023, measured growth in our loan portfolio coupled with prudent expense management will continue to drive revenue growth in the coming quarters.

Overall core credit quality continues to remain strong with non-performing loans as a percentage of total loans at 0.79% versus 0.62% at quarter end March 2022. Uncertain economic conditions will likely continue in the coming quarters and our current credit quality measures put us in a strong position to successfully navigate these potential challenges. Past dues remain historically low, and core earnings remain strong. Our Allowance for Credit Losses as of March 31, 2023 stood at 1.53% of total loans with net provision expense of $2.405 million during the quarter that was largely reflective of specific reserves on the two credits previously mentioned. Recent progress on one of the facilities provides us guarded optimism that we could recognize a provision reversal later in the year which would be further accretive to income. We diligently and frequently review our Loan Loss Reserve levels and believe that these reserves are appropriate given our risk profile. We continue to exercise an elevated level of diligence in our credit approval and review processes to assure a continued high level of credit quality given the uncertainty embedded in the current national economic profile.

The systemic impact of the coastal bank failures continues to show no recognizable negative trends within the consolidated bank group, but nonetheless we shall continue to monitor the potential impacts to our portfolios closely and manage our current and prospective liquidity requirements prudently.

The Board of Directors has declared a quarterly cash dividend of $0.16 per share, payable to shareholders of record on May 8, 2023, and payable May 15, 2023.

Respectfully,

Peter Q. Morrison

President & CEO

Celebrating Over Thirty Five Years of Community Building Through Community Banking!

This release contains information and "forward-looking statements" that relate to matters that are not historical facts and which are usually preceded by words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target," and similar expressions. These forward-lookingstatements are subject to significant risks, assumptions and uncertainties. Because of these and other uncertainties, our actual results may be materially different from those described in these forward-looking statements. The forward-looking statements in this release speak only as of the date of the release, and we do not assume any obligation to

update the forward-looking statements or to update the reasons why actual results differ from those contained in the forward-looking statements.

FINANCIAL HIGHLIGHTS

For the Three Month Period

For the Years

(Dollars in thousands, except per share data (Unaudited)

Ended March 31,

Ended December 31,

Income Statement Data

2023

2022

% Chg

2022

2021

2020

Net Interest Income

$12,353

$10,189

21.24%

$45,673

$41,228

$39,835

Provision for loan losses

2,405

(95)

2631.58%

552

756

3,785

Noninterest income

1,721

2,454

-29.87%

8,595

9,671

9,329

Noninterest expense

9,249

8,384

10.32%

36,007

35,520

32,324

Income Taxes

469

997

-52.96%

4,082

3,237

2,766

Net Income

$1,951

$3,357

-41.88%

$13,627

$11,386

$10,289

For the Three Month Period

For the Years

Ended March 31,

Ended December 31,

Ratios

2023

2022

% Chg

2022

2021

2020

Return on Average Assets

.55%

0.94%

-41.49%

0.94%

0.79%

0.78%

Return on Average Common Stockholders' Equity

6.44%

9.03%

-28.68%

10.09%

7.42%

7.03%

Net interest margin (tax equivalent)

3.51%

3.12%

12.50%

3.36%

3.14%

3.29%

Allowance as a percent of total loans

1.53%

1.66%

-7.83%

1.50%

1.62%

1.64%

Dividends per common share paid

$0.16

$0.11

45.45%

$0.54

$0.42

$0.36

Earnings per common share (Calculated by dividing net income by the

$0.55

$0.94

-41.66%

$3.82

$3.11

$2.76

weighted average number of common stock shares outstanding)

Book value per common share

$45.99

$43.68

5.29%

$46.10

$42.74

$39.66

(Calculated by dividing stockholders' equity , excluding other comprehensive income or

loss by oustanding common shares)

At March 31,

At December 31,

Balance Sheet

2023

2022

% Chg

2022

2021

2020

Assets

$1,535,194

$1,458,385

5.27%

$1,477,458

$1,453,823

$1,384,704

Investment Securities (AFS Securities at Market Value)

$378,067

$448,208

-15.65%

$395,407

$444,261

$366,999

Loans, net of unearned income

$1,031,999

$847,507

21.77%

$969,388

$862,085

$835,135

Deposits & Repurchase (SWEEP) Agreements

$1,381,273

$1,302,896

6.02%

$1,331,005

$1,270,552

$1,185,609

Short-term and other borrowings

$11,356

$7,052

61.03%

$7,366

$17,609

$36,912

Subordinated Debentures

$0

$0

0.00%

$0

$0

$0

Stockholders' Equity

$163,849

$155,128

5.62%

$164,219

$153,684

$147,503

(Excludes accumulated other comprehensive income or loss)

For the Three Month Period

For the Years

Ended March 31,

Ended December 31,

Stock Value Per Common Share Information

2023

2022

% Chg

2022

2021

2020

Price/earnings ratio

12.3

9.0

36.71%

7.2

10.4

10.8

Stock Price - High

$28.25

$34.65

$34.65

$32.95

$36.00

Low

$26.11

$32.80

$27.50

$29.10

$20.25

Ending

$26.93

$34.00

-20.79%

$27.50

$32.90

$29.88

Book value per common share

$45.99

$43.68

5.29%

$46.10

$42.74

$39.66

Price/book value per common share

0.59

0.78

-24.78%

0.60

0.77

0.75

Tangible book value per common share

$35.85

$39.22

-8.61%

$35.67

$43.13

$41.24

Price/tangible book value per common share

0.75

0.87

-13.34%

0.77

0.76

0.72

Common shares outstanding (excludes Treasury Stock Shares)

3,562,575

3,551,502

3,562,415

3,595,769

3,719,415

S T A T E B A N K O F H E R S C H E R

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Disclaimer

Foresight Financial Group Inc. published this content on 05 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2023 18:10:04 UTC.