Financial Performance - Net income for Q3 2025 was $9.9 million, or $0.18 per diluted share, down from $23.0 million, or $0.50 per diluted share, in Q3 2024[177] - Adjusted net income for Q3 2025 was $28.4 million, compared to $24.0 million in Q3 2024[177] - Noninterest income for the third quarter of 2025 increased by $2.2 million, or 20.3%, compared to the second quarter of 2025, driven by growth in wealth management and other income sources[209] - The company reported net income of $51.5 million in the first nine months of 2025, partially offset by $8.6 million in dividends paid[266] Acquisition of Bancorp Financial - The acquisition of Bancorp Financial was completed on July 1, 2025, with a total consideration of $189.4 million, including 7.9 million shares of Old Second common stock and $48.9 million in cash[173] - Bancorp Financial had approximately $1.43 billion in total assets, $1.19 billion in total loans, and $1.23 billion in total deposits at the time of acquisition[173] - The systems conversion for Bancorp Financial was successfully completed in October 2025[173] - The company realized a death benefit of $430,000 on BOLI in the third quarter of 2025, contributing to the increase in noninterest income[210] - The company experienced net cash inflows of $10.5 million from the acquisition of Bancorp Financial in July 2025[276] Income and Expenses - Noninterest expense increased by $23.9 million in Q3 2025, largely due to acquisition-related costs and adjustments[177] - Noninterest expense for Q3 2025 increased by $19.7 million, or 45.5%, compared to Q2 2025, and by $23.9 million, or 60.7%, compared to Q3 2024[215] - The increase in Q3 2025 noninterest expense was driven by $11.5 million in acquisition costs related to Bancorp Financial, accounting for 59.8% of the quarterly increase[215] - Salaries and employee benefits rose by $12.8 million in Q3 2025, with $8.4 million attributed to change in control, retention, and severance payouts from the Bancorp Financial acquisition[215] Loans and Credit Quality - Total loans increased by $1.28 billion as of September 30, 2025, compared to December 31, 2024, driven by $1.19 billion from the Bancorp Financial acquisition and $72.3 million in organic growth[182] - Nonperforming loans increased by $17.7 million to $48.0 million at September 30, 2025, from $30.3 million at December 31, 2024, but decreased by $4.3 million from $52.3 million at September 30, 2024[236] - The allowance for credit losses increased to $75.0 million as of September 30, 2025, compared to $43.6 million at December 31, 2024[239] - The provision for credit losses on loans was $19.7 million in the third quarter of 2025, primarily due to the inclusion of the powersport loan portfolio and related charge-offs[248] Capital and Ratios - All capital ratios were above regulatory requirements as of September 30, 2025, indicating a strong capital position[176] - The common equity tier 1 capital ratio was 12.44% as of September 30, 2025, exceeding the minimum requirement of 7.00%[267] - The tangible common equity to tangible assets ratio improved to 10.41% at September 30, 2025, compared to 10.04% at December 31, 2024[270] Deposits and Liquidity - Total deposits reached $5.76 billion as of September 30, 2025, reflecting a $991.5 million increase from $4.77 billion at December 31, 2024, and a $1.29 billion increase from $4.47 billion at September 30, 2024[260] - The average rate paid on total deposits increased by 19 basis points due to the higher cost profile of deposits acquired from Bancorp Financial[262] - As of September 30, 2025, the company's cash on hand liquidity totaled $116.5 million, an increase of $17.2 million compared to December 31, 2024[273] Interest Income and Margin - Net interest and dividend income increased to $82.8 million in Q3 2025 from $60.6 million in Q3 2024, primarily due to the acquisition of Bancorp Financial and organic loan growth[179] - The net interest margin increased to 5.03% in Q3 2025, up 41 basis points from 4.62% in Q3 2024, driven by the Bancorp Financial acquisition and higher security yields[193] - Net interest income (GAAP) for the nine months ended September 30, 2025, was $209,913 million, up from $180,051 million in 2024, representing a year-over-year increase of 16.6%[205] Market Conditions - The Federal Reserve Board reduced the Federal Funds target rate by 50 basis points in 2025 to a range of 3.75% - 4.00%[281] - The annual U.S. inflation rate for September 2025 rose to 3.0%, up from 2.7% in the previous quarter[287]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $9.9 million or $0.18 per diluted share, with a return on assets of 0.56% and a return on average tangible common equity of 6.16% [4] - Adjusted net income, excluding acquisition-related costs, was $28.4 million or $0.53 per diluted share [5] - The tangible equity ratio declined by 42 basis points to 10.41%, but remains 27 basis points higher year-over-year [7] - Net interest margin improved to 5.05%, a 20 basis point increase from the previous quarter and 41 basis points year-over-year [8][18] Business Line Data and Key Metrics Changes - Total loans increased by $1.27 billion, primarily due to the acquisition of Bancorp Financial [9] - Tax equivalent loan yields increased by 67 basis points compared to the previous quarter, driven by higher yielding consumer credits from the Evergreen PowerSport portfolio [9] - Non-interest income increased by $2.1 million year-over-year, with wealth management fees rising by 26.1% [13] Market Data and Key Metrics Changes - The total cost of deposits was 1.33%, up from 0.84% in the previous quarter [8] - The loan-to-deposit ratio increased to 91.4% as of September 30, 2025, compared to 83.3% last quarter [9] Company Strategy and Development Direction - The company is focused on the effective integration of Evergreen Bank Group and optimizing the balance sheet [15] - A 17% increase in the common dividend reflects confidence in the company's performance [25] - The company is open to acquiring additional deposits to replace higher-cost funding sources [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 following the Evergreen acquisition and noted strong pipelines in various sectors [25][86] - The company anticipates maintaining a higher reserve level due to the nature of the PowerSport portfolio, with expectations of charge-offs stabilizing around 30 basis points [90][91] Other Important Information - Non-interest expense increased by $19.7 million compared to the previous quarter, largely due to acquisition costs [15] - The company has completed systems conversions related to the Evergreen acquisition [19] Q&A Session Summary Question: Can you expand on the potential runoff of exception price deposits? - The company has a couple hundred million dollars in market-priced funding and aims to return to more traditional deposit types over the next 6 to 18 months [27][28] Question: What is the focus on future originations in PowerSport? - The focus remains on originating in all tiers, with a historical emphasis on the top two tiers [30][31] Question: What is the outlook for loan growth? - The company expects low to mid-single-digit growth heading into 2026, with strong pipelines in various sectors [86] Question: What are the expectations for charge-offs moving forward? - Charge-offs are expected to stabilize around 30 basis points, with management optimistic about credit quality [55][90] Question: What is the company's stance on potential M&A? - The company is ready for additional acquisitions, particularly focused on deposit-heavy opportunities [72]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $9.9 million or $0.18 per diluted share, with a return on assets of 0.56% and a return on average tangible common equity of 6.16% [4] - Excluding adjusting items, net income was $28.4 million or $0.53 per diluted share, reflecting a significant impact from the acquisition of Bancorp Financial [5] - The tangible equity ratio declined by 42 basis points to 10.41%, but remains 27 basis points higher than the same period last year [7] - Net interest margin improved to 5.05%, a 20 basis point increase from the previous quarter and 41 basis points year-over-year [8][18] Business Line Data and Key Metrics Changes - Total loans increased by $1.27 billion, primarily due to $1.19 billion of loans acquired with Bancorp Financial [9] - Non-interest income increased by $2.1 million compared to the prior year, driven by a 26.1% increase in wealth management fees [13] - Non-interest expense rose by $19.7 million compared to the prior linked quarter, largely due to acquisition costs [15] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 91.4% as of September 30, 2025, compared to 83.3% last quarter [9] - The total cost of deposits was 1.33%, up from 0.84% in the previous quarter [8] Company Strategy and Development Direction - The company is focused on the effective integration of Evergreen Bank Group and optimizing the balance sheet post-acquisition [15] - A 17% increase in the common dividend reflects confidence in the company's performance [25] - The company aims to maintain core expense growth around 4% into 2026, excluding impacts from the Evergreen acquisition [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 following the Evergreen acquisition and the onboarding of new team members [25] - The company anticipates a low single-digit growth rate in 2025, supported by robust pipelines in various sectors [63] - Management is confident in the credit quality and collateral positions despite some increases in non-performing loans [10][69] Other Important Information - The allowance for credit losses on loans increased to $75 million, or 1.43% of total loans, reflecting adjustments related to the acquisition [11] - The company is well-prepared for potential economic challenges and has a strong capital position [20] Q&A Session Summary Question: Potential runoff of exception price deposits - Management indicated a couple hundred million dollars in market-priced funding, with a goal to transition back to core deposit types over the next 6 to 18 months [27][28] Question: Future originations in PowerSport - The focus remains on originating loans across all tiers, with a historical emphasis on the top two tiers [30][31] Question: Loan growth outlook - Management expects low to mid-single-digit growth heading into 2026, with strong pipelines in various sectors [63][87] Question: Charge-off trajectory - Charge-offs were primarily administrative, with a positive outlook on credit quality moving forward [54][69] Question: M&A strategy - The company is open to future acquisitions, particularly focused on deposit-heavy opportunities [73][74] Question: Wealth management growth - Wealth management fees saw a significant increase, with expectations for continued growth [78][80]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $9.9 million or $0.18 per diluted share, with a return on assets of 0.56% and a return on average tangible common equity of 6.16% [4] - Excluding adjusting items, net income was $28.4 million or $0.53 per diluted share [5] - The net interest margin improved to 5.05%, a 20 basis point increase from the previous quarter and a 41 basis point increase year over year [7][19] - Common equity Tier one decreased to 12.44% from 13.77% in the previous quarter, but remains stable compared to the same period last year [7] Business Line Data and Key Metrics Changes - Total loans increased by $1.27 billion from the previous quarter, primarily due to the acquisition of Bancorp Financial [8] - Non-interest income increased by $2.1 million compared to the prior year, driven by a 26.1% increase in wealth management fees [13] - The allowance for credit losses on loans increased to $75 million, or 1.43% of total loans, reflecting the acquisition's impact [12] Market Data and Key Metrics Changes - The total cost of deposits rose to 133 basis points from 84 basis points in the prior linked quarter [8] - The loan to deposit ratio was 91.4% as of September 30, 2025, compared to 83.3% in the previous quarter [8] Company Strategy and Development Direction - The company is focused on the effective integration of Evergreen Bank and optimizing the balance sheet post-acquisition [15] - A 17% increase in the common dividend was announced, reflecting confidence in the company's performance [28] - The company aims to reduce reliance on wholesale funding and is interested in acquiring additional deposits [16][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 following the Evergreen acquisition and the onboarding of new team members [28] - The company anticipates a low to mid single-digit growth rate heading into 2026, supported by robust pipelines in various sectors [82] - Concerns about credit quality were downplayed, with management indicating that most classified assets are well-collateralized [50] Other Important Information - The company recorded $5.1 million in net loan charge-offs, primarily from the powersports portfolio [11] - Non-interest expense increased by $19.7 million compared to the prior linked quarter, largely due to acquisition costs [15] Q&A Session Summary Question: Potential runoff of exception price deposits - Management indicated there is about $200 million in market-priced funding, with a goal to replace it with more traditional deposits over the next 6 to 18 months [31][34] Question: Future originations in Power Sport - The focus will be on originating across all tiers, with a historical emphasis on the top two tiers [36] Question: Loan growth outlook - Management expects low to mid single-digit growth heading into 2026, with a strong pipeline in various sectors [82] Question: Charge-off trajectory - Charge-offs are expected to stabilize around 30 basis points, with management optimistic about credit quality [48] Question: Margin expectations - Management does not anticipate significant movement in margins, suggesting a stable outlook [95]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $9.9 million or $0.18 per diluted share, with a return on assets of 0.56% and a return on average tangible common equity of 6.16% [3][4] - Excluding adjusting items, net income was $28.4 million or $0.53 per diluted share, reflecting a significant impact from the acquisition of Bancorp Financial [4][5] - The tangible equity ratio declined by 42 basis points to 10.41%, but remains 27 basis points higher than the same period last year [5][6] - Net interest margin improved to 5.05%, a 20 basis point increase from the previous quarter and 41 basis points year-over-year [6][15] Business Line Data and Key Metrics Changes - Total loans increased by $1.27 billion, primarily due to $1.19 billion of loans acquired from Bancorp Financial [7] - Non-interest income increased by $2.1 million compared to the prior year, driven by a 26.1% increase in wealth management fees [11] - Non-interest expense rose to $19.7 million, with $11.8 million attributed to acquisition costs [12][20] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 91.4% as of September 30, 2025, compared to 83.3% last quarter [7] - The total cost of deposits was 1.33%, up from 0.84% in the previous quarter [6] Company Strategy and Development Direction - The company is focused on the effective integration of Evergreen Bank Group and optimizing the balance sheet post-acquisition [12][22] - A 17% increase in the common dividend reflects confidence in the company's performance [22] - The company aims to maintain core expense growth around 4% into 2026, excluding acquisition impacts [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 following the successful acquisition and integration of Evergreen [22] - The company anticipates a stable loan growth outlook, with expectations of low to mid-single-digit growth heading into 2026 [80] - Concerns regarding credit quality were addressed, with management indicating that most classified assets are well-collateralized [64][68] Other Important Information - The company recorded $5.1 million in net loan charge-offs, primarily from the PowerSport portfolio [8][9] - The allowance for credit losses on loans increased to $75 million, reflecting the acquisition's impact [9] Q&A Session Summary Question: Potential runoff of exception price deposits - Management indicated a couple hundred million dollars in market-priced funding, with a goal to return to legacy Old Second types of deposits over 6 to 18 months [25][26] Question: Future originations in PowerSport - The focus remains on originating across all tiers, with a historical emphasis on the top two tiers [27][30] Question: Loan growth outlook - Management expects low single-digit growth in 2025, with robust pipelines in various sectors [58][80] Question: Charge-off trajectory - Charge-offs were higher than expected, but management remains optimistic about the overall credit quality [47][48] Question: Additional M&A opportunities - The company is open to future acquisitions, particularly focused on deposit-heavy opportunities [66][68]

Core Insights - Old Second Bancorp (OSBC) reported a revenue of $95.88 million for Q3 2025, marking a year-over-year increase of 34.7% and exceeding the Zacks Consensus Estimate by 4.56% [1] - The earnings per share (EPS) for the same quarter was $0.53, slightly up from $0.51 a year ago, with an EPS surprise of 3.92% [1] Financial Performance Metrics - Net Interest Margin was reported at 5%, surpassing the average estimate of 4.8% [4] - Efficiency Ratio stood at 64.5%, higher than the estimated 56.4% [4] - Total interest-earning assets averaged $6.53 billion, below the estimated $6.66 billion [4] - Total noninterest income reached $13.11 million, exceeding the average estimate of $11.81 million [4] - Net interest and dividend income was $82.78 million, above the average estimate of $80.26 million [4] - Wealth management income was reported at $3.52 million, higher than the estimated $3.12 million [4] - Card-related income was $2.74 million, slightly above the average estimate of $2.71 million [4] - Service charges on deposits totaled $2.92 million, exceeding the estimated $2.8 million [4] - Net gain on sales of mortgage loans was $0.62 million, compared to the average estimate of $0.6 million [4] Stock Performance - Old Second Bancorp shares returned +1.2% over the past month, slightly outperforming the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Old Second Bancorp (OSBC) reported quarterly earnings of $0.53 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, and showing an increase from $0.51 per share a year ago, resulting in an earnings surprise of +3.92% [1] - The company posted revenues of $95.88 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.56%, and this represents a significant increase from year-ago revenues of $71.16 million [2] - Over the last four quarters, Old Second Bancorp has topped consensus revenue estimates four times, although it has only surpassed consensus EPS estimates once [2] 分组2 - The stock has added about 1.7% since the beginning of the year, underperforming the S&P 500's gain of 14.5% [3] - The current consensus EPS estimate for the coming quarter is $0.50 on revenues of $92.2 million, and for the current fiscal year, it is $1.97 on revenues of $332.1 million [7] - The Zacks Industry Rank for Banks - Midwest is currently in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q3 2025 Financial Highlights](index=1&type=section&id=Q3%202025%20Financial%20Highlights) Q3 2025 GAAP net income was $9.9 million, diluted EPS $0.18, impacted by acquisition costs and credit loss provisions | Metric | Q3 2025 (Thousands of $) | Q2 2025 (Thousands of $) | Q3 2024 (Thousands of $) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | **Net Income (GAAP)** | $9,900 | $21,800 | $23,000 | | **Diluted EPS (GAAP)** | $0.18 | $0.48 | $0.50 | | **Adjusted Net Income (Non-GAAP)** | $28,400 | $22,800 | $24,000 | | **Adjusted Diluted EPS (Non-GAAP)** | $0.53 | $0.50 | $0.52 | | **Net Interest and Dividend Income** | $82,800 | $64,200 | $60,600 | | **Provision for Credit Losses** | $19,700 | $2,500 | $2,000 | | **Noninterest Income** | $13,100 | $10,900 | $10,600 | | **Noninterest Expense** | $63,200 | $43,400 | $39,300 | | **Income Tax Provision** | $3,200 | $7,400 | $6,900 | | **Effective Tax Rate** | 24.5% | 25.3% | 23.1% | - Net income decreased by **$13.1 million** year-over-year, primarily due to a **$5.8 million** increase in interest expense, a **$17.7 million** increase in credit loss provision, and a **$23.9 million** increase in noninterest expense, all stemming from the Bancorp Financial acquisition[3](index=3&type=chunk) - The company's Board of Directors declared a **$0.07 per share** cash dividend on October 21, 2025, payable on November 10, 2025[5](index=5&type=chunk) | Metric | Sep 30, 2025 (Thousands of $) | Jun 30, 2025 (Thousands of $) | Sep 30, 2024 (Thousands of $) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | **Balance Sheet Summary** | | | | | Total Assets | $6,991,754 | $5,701,294 | $5,671,760 | | Total Loans | $5,265,014 | $3,998,667 | $3,991,078 | | Total Deposits | $5,760,250 | $4,798,439 | $4,465,424 | | Total Equity | $866,685 | $718,649 | $661,390 | | **Profitability Ratios** | | | | | Return on Average Assets (ROAA) (%) | 0.56% | 1.53% | 1.63% | | Return on Average Equity (ROAE) (%) | 4.61% | 12.39% | 14.29% | | Net Interest Margin (Tax-Equivalent) (%) | 5.05% | 4.85% | 4.64% | | Efficiency Ratio (%) | 64.46% | 55.99% | 53.38% | | **Per Share Data** | | | | | Diluted EPS | $0.18 | $0.48 | $0.50 | | Tangible Book Value Per Share | $13.51 | $13.44 | $12.61 | | **Company Capital Ratios** | | | | | Common Equity Tier 1 Capital Ratio | 12.44% | 13.77% | 12.86% | | Tier 1 Risk-Based Capital Ratio | 12.85% | 14.31% | 13.39% | | Total Risk-Based Capital Ratio | 15.10% | 16.55% | 15.62% | | Tier 1 Leverage Ratio | 11.21% | 11.83% | 11.38% | [CEO Commentary](index=4&type=section&id=CEO%20Commentary) CEO Jim Eccher praised the Bancorp Financial acquisition, noting strong loan growth, improved asset yields, and robust financial health - The company acquired Bancorp Financial, Inc., a **$1.4 billion** bank holding company, and its subsidiary Evergreen Bank Group on July 1, 2025[9](index=9&type=chunk) - Core business performance post-acquisition was strong, including robust loan growth, positive business pipelines, and excellent core profitability[9](index=9&type=chunk) - Adjusted Return on Average Assets (ROAA) was **1.61%**, Adjusted Return on Average Tangible Common Equity (ROATCE) was **16.69%**, tax-equivalent net interest margin was **5.05%**, and the adjusted efficiency ratio was **52.10%**[9](index=9&type=chunk) - The balance sheet is strong with ample liquidity and sufficient reserves, reflected by a Common Equity Tier 1 Capital Ratio of **12.44%**, a loan-to-deposit ratio of **91%**, and a loan loss allowance of **1.43%** of total loans[10](index=10&type=chunk) - The company plans to increase its common stock dividend by **17%** in the fourth quarter, reflecting the bank's performance[10](index=10&type=chunk) [Operating Results Analysis](index=6&type=section&id=Operating%20Results%20Analysis) [Net Interest Income](index=6&type=section&id=Net%20Interest%20Income) Q3 2025 net interest and dividend income rose to $82.8 million, driven by the Bancorp Financial acquisition and higher earning asset yields | Metric | Sep 30, 2025 (Thousands of $) | Jun 30, 2025 (Thousands of $) | Sep 30, 2024 (Thousands of $) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | **Net Interest Income (GAAP)** | $82,775 | $64,234 | $60,578 | | **Net Interest Income (TE)** | $83,113 | $64,570 | $60,932 | | **Net Interest Margin (GAAP)** | 5.03% | 4.83% | 4.62% | | **Net Interest Margin (TE)** | 5.05% | 4.85% | 4.64% | | **Average Yield on Earning Assets** | 6.34% | 5.68% | 5.83% | | **Average Cost of Interest-Bearing Liabilities** | 1.96% | 1.36% | 1.91% | - The yield on earning assets increased by **66 basis points** from the prior quarter, primarily driven by higher-yielding consumer loans and related accrued interest within the Bancorp Financial acquisition loan portfolio, which had an average yield of **8.65%** before accrued interest[15](index=15&type=chunk) - Average interest-bearing deposit balances significantly increased from **$3.12 billion** in Q2 2025 to **$4.15 billion** in Q3 2025, with all interest-bearing deposit categories increasing due to the Bancorp Financial acquisition[18](index=18&type=chunk) - The cost of interest-bearing deposits rose from **130 basis points** in Q2 2025 to **191 basis points** in Q3 2025, primarily due to the increase in deposits from the Bancorp Financial acquisition[18](index=18&type=chunk) [Noninterest Income](index=9&type=section&id=Noninterest%20Income) Q3 2025 noninterest income increased to $13.1 million, driven by wealth management, BOLI gains, and power sports loan fees | Noninterest Income Category (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change from Jun 30, 2025 (%) | Change from Sep 30, 2024 (%) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | :----------------------- | :----------------------- | | Wealth Management | $3,515 | $3,103 | $2,787 | 13.3 | 26.1 | | Deposit Service Charges | $2,920 | $2,788 | $2,646 | 4.7 | 10.4 | | Gross Residential Mortgage Banking Income | $792 | $575 | $93 | 37.7 | 751.6 | | Change in BOLI Cash Surrender Value | $1,175 | $690 | $860 | 70.3 | 36.6 | | BOLI Death Benefit | $430 | $- | $12 | 100.0 | N/M | | Card Related Income | $2,739 | $2,716 | $2,589 | 0.8 | 5.8 | | Other Income | $1,539 | $1,026 | $1,595 | 50.0 | (3.5) | | **Total Noninterest Income** | **$13,109** | **$10,898** | **$10,581** | **20.3** | **23.9** | - Noninterest income increased by **$2.2 million** from the prior quarter, driven by a **$412,000** increase in wealth management income, a **$485,000** increase in BOLI cash surrender value, a **$430,000** BOLI death benefit, and a **$513,000** increase in other income (primarily from power sports loan fees acquired in the Bancorp Financial acquisition)[22](index=22&type=chunk) - Noninterest income increased by **$2.5 million** from the prior year, primarily due to a **$728,000** increase in wealth management income, a **$315,000** increase in BOLI cash surrender value, and a **$430,000** BOLI death benefit[23](index=23&type=chunk) [Noninterest Expense](index=10&type=section&id=Noninterest%20Expense) Q3 2025 noninterest expense surged to $63.2 million, largely due to increased salaries, benefits, and operational costs from the Bancorp Financial acquisition | Noninterest Expense Category (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change from Jun 30, 2025 (%) | Change from Sep 30, 2024 (%) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | :----------------------- | :----------------------- | | Total Salaries and Employee Benefits | $39,723 | $26,950 | $24,676 | 47.4 | 61.0 | | Occupancy, Furniture and Equipment Expense | $4,937 | $4,477 | $3,876 | 10.3 | 27.4 | | Computer and Data Processing | $4,002 | $2,692 | $2,375 | 48.7 | 68.5 | | Core Deposit Intangible Amortization | $1,251 | $1,022 | $570 | 22.4 | 119.5 | | Consulting and Management Fees | $2,471 | $527 | $480 | 368.9 | 414.8 | | Other Expenses | $5,984 | $3,879 | $3,608 | 54.3 | 65.9 | | **Total Noninterest Expense** | **$63,163** | **$43,419** | **$39,308** | **45.5** | **60.7** | | **Efficiency Ratio (GAAP)** | 64.46% | 55.99% | 53.38% | | | | **Adjusted Efficiency Ratio (Non-GAAP)** | 52.10% | 54.54% | 52.31% | | | - Noninterest expense increased by **$19.7 million** from the prior quarter, primarily due to a **$12.8 million** increase in salaries and employee benefits (of which **$8.4 million** was related to change-in-control, retention, and severance costs from the Bancorp Financial acquisition), and increases in computer and data processing, consulting and management fees, and other expenses due to the acquisition[26](index=26&type=chunk) - Noninterest expense increased by **$23.9 million** from the prior year, primarily due to a **$15.0 million** increase in salaries and employee benefits (including **$8.4 million** related to the Bancorp Financial acquisition), and increases in occupancy, computer and data processing, core deposit intangibles, consulting and management fees, and other expenses due to the First Merchants branch acquisition and the Bancorp Financial acquisition[27](index=27&type=chunk) [Balance Sheet and Asset Quality](index=5&type=section&id=Balance%20Sheet%20and%20Asset%20Quality) [Earning Assets](index=5&type=section&id=Earning%20Assets) Total loans reached $5.27 billion as of September 30, 2025, primarily driven by the Bancorp Financial acquisition, adding $1.19 billion in loans | Loan Category (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change from Jun 30, 2025 (%) | Change from Sep 30, 2024 (%) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | :----------------------- | :----------------------- | | Commercial | $786,095 | $718,927 | $814,668 | 9.3 | (3.5) | | Lease | $550,201 | $524,513 | $458,317 | 4.9 | 20.0 | | Commercial Real Estate – Investor | $1,257,328 | $1,118,782 | $1,045,060 | 12.4 | 20.3 | | Commercial Real Estate – Owner Occupied | $680,412 | $652,449 | $718,265 | 4.3 | (5.3) | | Construction | $176,387 | $251,692 | $206,458 | (29.9) | (14.6) | | Residential Real Estate – Investor | $69,362 | $50,976 | $50,332 | 36.1 | 37.8 | | Residential Real Estate – Owner Occupied | $231,547 | $220,672 | $208,227 | 4.9 | 11.2 | | Multi-Family | $378,213 | $333,787 | $375,394 | 13.3 | 0.8 | | Home Equity Lines of Credit (HELOC) | $234,885 | $111,265 | $102,611 | 111.1 | 128.9 | | Power Sports | $715,498 | $- | $- | N/M | N/M | | Other | $185,086 | $15,604 | $11,746 | N/M | N/M | | **Total Loans** | **$5,265,014** | **$3,998,667** | **$3,991,078** | **31.7** | **31.9** | - Total loans increased by **$1.27 billion**, primarily due to the Bancorp Financial acquisition contributing **$1.19 billion** in loans, which expanded the company's consumer loan business and added a power sports lending segment[11](index=11&type=chunk)[30](index=30&type=chunk) - Excluding Bancorp Financial acquired loans, organic loan growth (net of payoffs) in Q3 2025 was **$72.3 million**, a **1.8%** increase from the prior quarter, driven by commercial, lease, and commercial real estate loans[11](index=11&type=chunk)[30](index=30&type=chunk) | Securities Category (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change from Jun 30, 2025 (%) | Change from Sep 30, 2024 (%) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | :----------------------- | :----------------------- | | U.S. Treasury | $190,670 | $190,446 | $194,188 | 0.1 | (1.8) | | U.S. Government Agency | $38,264 | $38,141 | $37,976 | 0.3 | 0.8 | | U.S. Government Agency Mortgage-Backed Securities | $93,051 | $96,083 | $96,413 | (3.2) | (3.5) | | State and Political Subdivisions | $210,675 | $208,814 | $224,795 | 0.9 | (6.3) | | Mortgage Collateralized Bonds | $378,236 | $395,014 | $384,271 | (4.2) | (1.6) | | Asset-Backed Securities | $47,802 | $48,119 | $63,947 | (0.7) | (25.2) | | Collateralized Mortgage Obligations | $198,098 | $201,071 | $189,264 | (1.5) | 4.7 | | Equity Securities | $684 | $- | $- | 100.0 | 100.0 | | **Total Available-for-Sale Securities** | **$1,157,480** | **$1,177,688** | **$1,190,854** | **(1.7)** | **(2.8)** | - The total available-for-sale securities portfolio was **$1.16 billion**, a decrease of **$20.2 million** from the prior quarter and **$33.4 million** from the prior year, consisting of high-quality fixed and floating rate securities, with over **99%** of publicly traded securities rated AA or higher[11](index=11&type=chunk)[31](index=31&type=chunk) - Total unrealized losses on securities were **$47.7 million**, a decrease from both the prior quarter and prior year, influenced by market interest rate fluctuations and changes in the securities portfolio composition[11](index=11&type=chunk) [Asset Quality](index=12&type=section&id=Asset%20Quality) Q3 2025 asset quality showed increased nonperforming loans to $48.0 million, but credit loss allowance coverage improved to 219.9% of nonaccrual loans | Nonperforming Assets Category (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change from Jun 30, 2025 (%) | Change from Sep 30, 2024 (%) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | :----------------------- | :----------------------- | | Nonaccrual Loans | $34,126 | $31,902 | $52,171 | 7.0 | (34.6) | | Loans 90 Days or More Past Due and Still Accruing | $13,859 | $345 | $109 | N/M | N/M | | **Total Nonperforming Loans** | **$47,985** | **$32,247** | **$52,280** | **48.8** | **(8.2)** | | Other Real Estate Owned | $6,416 | $6,486 | $8,202 | (1.1) | (21.8) | | Repossessed Assets | $2,088 | $234 | $- | 792.3 | N/M | | **Total Nonperforming Assets** | **$56,489** | **$38,967** | **$60,482** | **45.0** | **(6.6)** | | Nonperforming Loans to Total Loans (%) | 0.9% | 0.8% | 1.3% | | | | Allowance for Credit Losses to Total Loans (%) | 1.4% | 1.1% | 1.1% | | | | Allowance for Credit Losses to Nonaccrual Loans (%) | 219.9% | 134.8% | 85.1% | | | - Nonperforming loans increased by **$15.7 million**, driven by a **$13.5 million** increase in loans 90 days or more past due and still accruing (primarily from two legacy relationships and **$2.3 million** in power sports loans) and a **$2.2 million** increase in nonaccrual loans (primarily from a **$1.2 million** commercial real estate investor relationship)[11](index=11&type=chunk) | Classified Loan Category (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change from Jun 30, 2025 (%) | Change from Sep 30, 2024 (%) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | :----------------------- | :----------------------- | | Commercial | $50,680 | $23,354 | $35,043 | 117.0 | 44.6 | | Commercial Real Estate – Owner Occupied | $72,020 | $51,335 | $41,820 | 40.3 | 72.2 | | **Total Classified Loans** | **$134,260** | **$97,620** | **$112,823** | **37.5** | **19.0** | - As of September 30, 2025, classified loans increased by **$36.6 million** from the prior quarter, including **$62.9 million** in inflows (driven by the downgrade of two commercial relationships, five commercial real estate owner-occupied relationships, and 14 loans acquired from Bancorp Financial), partially offset by **$26.2 million** in outflows (primarily consisting of paid-off loans, upgraded loans, and loan charge-offs)[38](index=38&type=chunk) [Allowance for Credit Losses](index=13&type=section&id=Allowance%20for%20Credit%20Losses) As of September 30, 2025, total allowance for credit losses on loans was $75.0 million, with increased provision due to the Bancorp Financial acquisition - As of September 30, 2025, the total Allowance for Credit Losses (ACL) on loans was **$75.0 million**, with an additional **$2.3 million** for unfunded commitments[39](index=39&type=chunk) - In connection with the acquisition, the company recorded **$17.5 million** in day one purchase accounting credit marks and **$13.2 million** in day two non-PCD provision expense[39](index=39&type=chunk) - The standard provision expense for Q3 2025 included **$6.5 million** for the allowance for credit losses on loans and **$38,000** for the allowance for credit losses on unfunded commitments[39](index=39&type=chunk) - Net charge-offs for Q3 2025 were **$5.1 million**, primarily concentrated in the power sports portfolio[39](index=39&type=chunk)[41](index=41&type=chunk) | Loan Charge-offs (Net Recoveries) Category (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | Commercial | $385 | $1,093 | $(7) | | Lease | $848 | $(3) | $43 | | Power Sports | $2,980 | $- | $- | | Other | $805 | $67 | $45 | | **Total Net Charge-offs / (Recoveries)** | **$5,108** | **$785** | **$(155)** | [Deposits](index=14&type=section&id=Deposits) Total deposits reached $5.76 billion as of September 30, 2025, a 20.0% increase driven by the Bancorp Financial acquisition - As of September 30, 2025, total deposits were **$5.76 billion**, an increase of **$961.8 million** or **20.0%** from **$4.80 billion** as of June 30, 2025, primarily due to deposits acquired from the Bancorp Financial acquisition[45](index=45&type=chunk) - All deposit categories increased due to the acquisition, with time deposits increasing by **$564.1 million** and savings deposits by **$213.5 million**[45](index=45&type=chunk) - Annual average deposits increased by **$1.44 billion** or **32.2%** year-over-year, primarily driven by the First Merchants branch acquisition in December 2024 and the Bancorp Financial acquisition in July 2025[46](index=46&type=chunk) - As of September 30, 2025, quarterly average time deposits included **$96.9 million** in brokered deposits, which were acquired with the Bancorp Financial acquisition and are expected to run off over the next few years[46](index=46&type=chunk) [Borrowings](index=14&type=section&id=Borrowings) As of September 30, 2025, short-term FHLB advances increased to $165.0 million, with $15.0 million long-term advances from the Bancorp Financial acquisition - As of September 30, 2025, other short-term borrowings were **$165.0 million**, compared to zero as of June 30, 2025, and **$335.0 million** as of September 30, 2024, all consisting of short-term FHLB advances[47](index=47&type=chunk) - The company also assumed **$15.0 million** in long-term FHLB advances from the Bancorp Financial acquisition, which are reported on the balance sheet as notes payable and other borrowings[47](index=47&type=chunk) [Capital](index=14&type=section&id=Capital) In Q3 2025, capital increased by $140.5 million from common stock issuance for the Bancorp Financial acquisition, offset by $5.9 million in share repurchases - In Q3 2025, the company issued **7.9 million** shares of common stock, par value **$1.00** per share, to existing Bancorp Financial shareholders as part of the acquisition, providing **$140.5 million** in capital[48](index=48&type=chunk) - The company repurchased **326,854** shares of common stock at **$18.00** per share, resulting in a **$5.9 million** reduction in capital[48](index=48&type=chunk) [Non-GAAP Financial Measures](index=14&type=section&id=Non-GAAP%20Financial%20Measures) [Non-GAAP Presentations Overview](index=14&type=section&id=Non-GAAP%20Presentations%20Overview) Management uses non-GAAP metrics like adjusted net income and tax-equivalent net interest margin to provide supplementary insights into core performance - Management discloses non-GAAP financial measures such as adjusted net income, tax-equivalent net interest income and net interest margin, and tax-equivalent efficiency ratio to evaluate and measure company performance[49](index=49&type=chunk) - These non-GAAP metrics, by excluding certain non-core expenses or assets or presenting on a tax-equivalent basis, aim to provide meaningful supplementary information to help investors assess the company's performance and balance sheet profitability[50](index=50&type=chunk) - Non-GAAP financial measures should not be considered as substitutes for GAAP financial measures and may not be standardized for comparison with other companies' non-GAAP metrics[51](index=51&type=chunk) [Adjusted Net Income Reconciliation](index=21&type=section&id=Adjusted%20Net%20Income%20Reconciliation) Q3 2025 adjusted net income was $28.363 million, significantly higher than GAAP, reflecting core profitability after excluding acquisition-related items | Metric (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | Income Before Income Taxes (GAAP) | $13,068 | $29,213 | $29,851 | | **Pre-Tax Income Adjustments:** | | | | | Provision for Credit Losses - Day Two | $13,153 | $- | $- | | BOLI Related Death Benefit | $(430) | $- | $(12) | | MSR Losses | $389 | $531 | $964 | | Merger Related Costs (Net of Branch Sale Gains) | $11,508 | $810 | $471 | | **Adjusted Net Income Before Taxes** | **$37,688** | **$30,554** | **$31,274** | | Adjusted Net Income Tax Expense | $9,325 | $7,730 | $7,232 | | **Adjusted Net Income (Non-GAAP)** | **$28,363** | **$22,824** | **$24,042** | | Adjusted Diluted EPS (Non-GAAP) | $0.53 | $0.45 | $0.52 | | Adjusted Return on Average Assets (Non-GAAP) | 1.61% | 1.60% | 1.70% | [Net Interest Margin (Tax-Equivalent) Reconciliation](index=21&type=section&id=Net%20Interest%20Margin%20(Tax-Equivalent)%20Reconciliation) Q3 2025 tax-equivalent net interest income was $83.113 million and net interest margin was 5.05%, offering a comprehensive profitability view | Metric (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | Interest and Dividend Income (GAAP) | $104,075 | $75,238 | $76,072 | | **Tax-Equivalent Adjustments:** | | | | | Loans | $10 | $9 | $11 | | Securities | $328 | $327 | $343 | | **Interest and Dividend Income (TE)** | **$104,413** | **$75,574** | **$76,426** | | Interest Expense (GAAP) | $21,300 | $11,004 | $15,494 | | **Net Interest Income (TE)** | **$83,113** | **$64,570** | **$60,932** | | Net Interest Income (GAAP) | $82,775 | $64,234 | $60,578 | | Average Earning Assets | $6,529,006 | $5,336,339 | $5,219,160 | | **Net Interest Margin (TE)** | **5.05%** | **4.85%** | **4.64%** | | Net Interest Margin (GAAP) | 5.03% | 4.83% | 4.62% | [Efficiency Ratio Reconciliation](index=22&type=section&id=Efficiency%20Ratio%20Reconciliation) Q3 2025 adjusted efficiency ratio was 52.10%, lower than GAAP, indicating improved operational efficiency after excluding specific non-recurring items | Metric (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | Noninterest Expense | $63,163 | $43,419 | $39,308 | | Less: Core Deposit Amortization | $1,251 | $1,022 | $570 | | Less: Other Real Estate Owned Expense (Net) | $128 | $35 | $242 | | Less: Merger Related Costs (Net of Branch Sale Gains) | N/A | N/A | N/A | | **Noninterest Expense Less Adjustments (GAAP)** | **$61,784** | **$42,362** | **$38,496** | | **Noninterest Expense Less Adjustments (Non-GAAP)** | **$50,276** | **$41,552** | **$38,025** | | Net Interest Income (GAAP) | $82,775 | $64,234 | $60,578 | | Net Interest Income (TE) | $83,113 | $64,570 | $60,932 | | Noninterest Income (GAAP) | $13,109 | $10,898 | $10,581 | | Noninterest Income (TE) | $13,381 | $11,613 | $11,763 | | **Efficiency Ratio (GAAP)** | **64.46%** | **55.99%** | **53.38%** | | **Adjusted Efficiency Ratio (Non-GAAP)** | **52.10%** | **54.54%** | **52.31%** | [Adjusted Return on Average Tangible Common Equity Reconciliation](index=22&type=section&id=Adjusted%20Return%20on%20Average%20Tangible%20Common%20Equity%20Reconciliation) Q3 2025 adjusted ROATCE was 16.69%, significantly higher than GAAP ROAE, highlighting true profitability after excluding intangibles | Metric (Thousands of $) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | Net Income (GAAP) | $9,871 | $21,822 | $22,951 | | Income Before Income Taxes (GAAP) | $13,068 | $29,213 | $29,851 | | **Pre-Tax Income Adjustments:** | | | | | Provision for Credit Losses - Day Two | $13,153 | $- | $- | | MSR Losses (Gains) | $389 | $531 | $964 | | Merger Related Costs (Net of Branch Sale Gains) | $11,508 | $810 | $471 | | BOLI Related Death Benefit | $(430) | $- | $(12) | | Core Deposit Intangible Amortization | $1,251 | $1,022 | $570 | | **Adjusted Net Income (Excluding Intangible Amortization, Pre-Tax)** | **$38,939** | **$31,576** **$31,844** | | Adjusted Net Income Tax Expense | $9,631 | $7,989 | $7,363 | | **Adjusted Net Income (Excluding Intangible Amortization, Non-GAAP)** | **$29,308** | **$23,587** | **$24,481** | | Average Total Common Equity | $849,998 | $706,254 | $639,151 | | Less: Average Goodwill and Intangible Assets | $153,412 | $113,694 | $96,245 | | **Average Tangible Common Equity (Non-GAAP)** | **$696,586** | **$592,560** | **$542,906** | | Return on Average Common Equity (GAAP) | 4.61% | 12.39% | 14.29% | | Return on Average Tangible Common Equity (Non-GAAP) | 6.16% | 15.29% | 17.14% | | **Adjusted Return on Average Tangible Common Equity (Non-GAAP)** | **16.69%** | **15.97%** | **17.94%** | [Additional Information](index=16&type=section&id=Additional%20Information) [Cautionary Note Regarding Forward-Looking Statements](index=16&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This release contains forward-looking statements about future economic conditions and acquisition benefits, subject to various risks and uncertainties - This earnings release contains forward-looking statements regarding expectations for economic outlook, balance sheet growth, capital formation, and the strategic and financial benefits of the Bancorp Financial acquisition[52](index=52&type=chunk) - Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from expectations, including the strength of the U.S. economy, asset quality of the credit portfolio, legislative and regulatory changes, risks of future acquisitions, unfavorable capital market conditions, interest rate changes, inflation, and events beyond the company's control[52](index=52&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[52](index=52&type=chunk) [Conference Call Details](index=16&type=section&id=Conference%20Call%20Details) A conference call to discuss Q3 2025 financial results will be held on Thursday, October 23, 2025, at 10:00 AM ET - The company will host a conference call on Thursday, October 23, 2025, at **10:00 AM ET** (**9:00 AM CT**) to discuss Q3 2025 financial results[53](index=53&type=chunk) - Investors can participate in the conference call by dialing **888-506-0062** and using entry code **740004**[53](index=53&type=chunk) - A replay of the call will be available until **10:00 AM ET** (**9:00 AM CT**) on October 30, 2025, by dialing **877-481-4010** and using conference ID **53047**[54](index=54&type=chunk) [Consolidated Financial Statements](index=17&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=17&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2025, total assets reached $6.992 billion, with significant increases in net loans and total deposits due to the Bancorp Financial acquisition | Assets (Thousands of $) | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :--------------- | :--------------- | | Cash and Due from Banks | $53,099 | $52,175 | | Interest-Bearing Deposits | $63,426 | $47,154 | | Cash and Cash Equivalents | $116,525 | $99,329 | | Available-for-Sale Securities | $1,157,480 | $1,161,701 | | Net Loans | $5,189,977 | $3,937,717 | | Goodwill | $130,262 | $93,260 | | **Total Assets** | **$6,991,754** | **$5,649,377** | | **Liabilities (Thousands of $)** | | | | Noninterest-Bearing Demand Deposits | $1,738,028 | $1,704,920 | | Interest-Bearing Deposits | $4,022,222 | $3,063,811 | | **Total Deposits** | **$5,760,250** | **$4,768,731** | | Other Short-Term Borrowings | $165,000 | $20,000 | | **Total Liabilities** | **$6,125,069** | **$4,978,343** | | **Shareholders' Equity (Thousands of $)** | | | | Common Stock | $53,015 | $44,908 | | Retained Earnings | $512,131 | $469,165 | | **Total Shareholders' Equity** | **$866,685** | **$671,034** | | **Total Liabilities and Shareholders' Equity** | **$6,991,754** | **$5,649,377** | [Consolidated Statements of Income](index=18&type=section&id=Consolidated%20Statements%20of%20Income) Q3 2025 consolidated income shows $82.78 million in net interest and dividend income, a $19.653 million provision for credit losses, and net income of $9.871 million | Metric (Thousands of $) | Sep 30, 2025 (Three Months) | Sep 30, 2024 (Three Months) | Sep 30, 2025 (Nine Months) | Sep 30, 2024 (Nine Months) | | :-------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Total Interest and Dividend Income | $104,075 | $76,072 | $252,878 | $222,625 | | Total Interest Expense | $21,300 | $15,494 | $42,965 | $42,574 | | **Net Interest and Dividend Income** | **$82,775** | **$60,578** | **$209,913** | **$180,051** | | Provision for Credit Losses | $19,653 | $2,000 | $24,553 | $9,250 | | Total Noninterest Income | $13,109 | $10,581 | $34,208 | $32,209 | | Total Noninterest Expense | $63,163 | $39,308 | $151,087 | $115,426 | | Income Before Income Taxes | $13,068 | $29,851 | $68,481 | $87,584 | | Income Tax Provision | $3,197 | $6,900 | $16,958 | $21,430 | | **Net Income** | **$9,871** | **$22,951** | **$51,523** | **$66,154** | | Diluted EPS | $0.18 | $0.50 | $1.06 | $1.45 | [Quarterly Consolidated Average Balances](index=19&type=section&id=Quarterly%20Consolidated%20Average%20Balances) Q3 2025 quarterly average balances show total assets at $6.999 billion, earning assets at $6.529 billion, and interest-bearing liabilities at $4.305 billion | Metric (Thousands of $) | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :-------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | **Assets** | | | | | | | Cash and Due from Banks | $51,357 | $47,875 | $52,550 | $54,340 | $54,279 | | Interest-Bearing Deposits | $119,619 | $166,366 | $97,645 | $49,757 | $48,227 | | Available-for-Sale Securities | $1,165,900 | $1,190,123 | $1,181,257 | $1,180,024 | $1,173,948 | | Loans | $5,215,551 | $3,958,275 | $3,957,730 | $4,001,014 | $3,965,160 | | **Total Assets** | **$6,999,253** | **$5,736,706** | **$5,674,317** | **$5,664,658** | **$5,615,142** | | **Liabilities** | | | | | | | Total Deposits | $5,928,062 | $4,850,180 | $4,799,104 | $4,599,715 | $4,485,420 | | Other Short-Term Borrowings | $25,978 | $- | $1,444 | $204,783 | $305,489 | | **Total Liabilities** | **$6,149,255** | **$5,030,452** | **$4,990,739** | **$4,996,777** | **$4,975,991** | | **Shareholders' Equity** | | | | | | | **Total Shareholders' Equity** | **$849,998** | **$706,254** | **$683,578** | **$667,881** | **$639,151** | | **Total Earning Assets** | **$6,529,006** | **$5,336,339** | **$5,257,416** | **$5,260,315** | **$5,219,160** | | **Total Interest-Bearing Liabilities** | **$4,305,330** | **$3,241,585** | **$3,216,946** | **$3,217,604** | **$3,230,088** | [Quarterly Consolidated Statements of Income](index=20&type=section&id=Quarterly%20Consolidated%20Statements%20of%20Income) Q3 2025 quarterly income shows $82.78 million in net interest and dividend income, a $19.653 million provision for credit losses, and net income of $9.871 million | Metric (Thousands of $) | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :-------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Total Interest and Dividend Income | $104,075 | $75,238 | $73,565 | $75,279 | $76,072 | | Total Interest Expense | $21,300 | $11,004 | $10,661 | $13,695 | $15,494 | | **Net Interest and Dividend Income** | **$82,775** | **$64,234** | **$62,904** | **$61,584** | **$60,578** | | Provision for Credit Losses | $19,653 | $2,500 | $2,400 | $3,500 | $2,000 | | Total Noninterest Income | $13,109 | $10,898 | $10,201 | $11,610 | $10,581 | | Total Noninterest Expense | $63,163 | $43,419 | $44,505 | $44,322 | $39,308 | | Income Before Income Taxes | $13,068 | $29,213 | $26,200 | $25,372 | $29,851 | | Income Tax Provision | $3,197 | $7,391 | $6,370 | $6,262 | $6,900 | | **Net Income** | **$9,871** | **$21,822** | **$19,830** | **$19,110** | **$22,951** | | Diluted EPS (GAAP) | $0.18 | $0.48 | $0.43 | $0.42 | $0.50 |

资深财务报告分析助理任务完成报告 报告概述 本报告旨在根据提供的报告大纲内容，生成一份清晰、专业且结构化的英文财务报告大纲。报告将严格遵循以下要求： 1. **结构要求**： * 将所有内容翻译成英文，并确保单位（如billion, million）的准确性。 * 使用适当的Markdown标题样式（、、）。 * 为每个章节提供一个简洁的单句总结（约100字符），捕捉核心内容，避免冗余。 * 为每个章节标题添加页面跳转链接，格式为`[Chapter Title](index=page_num&type=section&id=item_id)`，其中`page_num`为起始页码，`item_id`需进行URL编码。 * “insight”类型的关键点以无序列表展示，关键指标和结论加粗。 * “table”类型的关键点使用Markdown表格，表格标题作为子标题，列标题中包含单位。 * “insight”类型的关键点若有chunk引用，以`[chunk_num](index=chunk_num&type=chunk)`格式在句末按升序添加。表格不添加引用。 2. **语言风格要求**： * 使用正式书面语言，避免解释性短语。 * 章节总结应为简洁的单句，不重复关键点内容。 * 不添加“Report Title”等冗余前缀。 * 使用专业财务术语和表达。 * 输出为英文，句末不使用句号。 报告生成过程 1. **内容翻译与单位转换**：仔细审查大纲中的所有中文内容和单位，将其准确翻译成英文。特别注意“千”到“thousand”的转换，并确保“million”和“billion”的正确使用。表格中的“In thousands”将转换为列标题中的“(Thousands)”。 2. **章节总结生成**：对于大纲中已提供总结的章节，直接使用。对于`summary: null`的章节，根据章节标题和其下的关键点，提炼出符合“简洁单句，约100字符，不重复关键点内容”要求的英文总结。 3. **标题与链接格式化**：根据`level`字段确定Markdown标题级别。使用`start_page`作为`page_num`，并对`item_id`进行URL编码，构建页面跳转链接。 4. **关键点处理**： * **Insight类型**：将`content`作为列表项，识别并加粗关键财务数据和结论。将`chunk_num`按升序排列并格式化为引用链接，附加在句末。 * **Table类型**：将`content`中的表格标题提取为``子标题。将表格内容转换为Markdown表格，并调整列标题以包含单位（如“(Thousands)”）。 5. **语言风格检查**：全程确保输出符合正式、专业的财务报告语言风格，无冗余前缀，无解释性短语，且句末无句号。 报告大纲输出 [Form 10-Q General Information](index=1&type=section&id=Form%2010-Q%20General%20Information) Provides key administrative details of the quarterly report, including registrant information and filing status - The report is a Quarterly Report on Form 10-Q for the period ended June 30, 2025[1](index=1&type=chunk) Registrant Information | Detail | Value | | :--- | :--- | | Exact Name | Old Second Bancorp, Inc. | | Commission File Number | 000-10537 | | State of Incorporation | Delaware | | Trading Symbol | OSBC | | Exchange | The Nasdaq Stock Market | | Filer Status | Accelerated filer | | Shell Company | No | | Common Stock Outstanding (as of Aug 5, 2025) | 52,650,413 shares | [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) Highlights that forward-looking statements are subject to risks and uncertainties, and the company does not commit to updating them - Forward-looking statements are based on current beliefs, expectations, and assumptions, and are subject to risks and uncertainties that could cause actual results to differ materially[8](index=8&type=chunk) - Key potential risks include the ability to execute growth strategy, negative economic conditions (inflation, real estate values), successful integration of acquired businesses (Bancorp Financial, Inc.), changes in U.S. monetary policy and interest rates, competitive pressures, and adverse effects on information technology systems[8](index=8&type=chunk)[10](index=10&type=chunk) - The Company undertakes no obligation to update any forward-looking statements in light of new information or future events, except as required by applicable law[9](index=9&type=chunk) [PART I – FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) Presents the unaudited consolidated financial statements and related notes for the reporting period [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of Old Second Bancorp, Inc. and its subsidiaries for the period ended June 30, 2025, including the balance sheets, statements of income, comprehensive income, cash flows, and changes in stockholders' equity. It also includes detailed notes explaining the basis of presentation, significant accounting policies, recent acquisitions, securities portfolio, loans and credit losses, deposits, borrowings, equity compensation, earnings per share, regulatory capital, fair value measurements, derivatives, and segment information [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Summarizes the company's financial position, detailing assets, liabilities, and stockholders' equity at specific dates Consolidated Balance Sheet Highlights (Thousands) | Item | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | Change (2025 vs 2024) (Thousands) | | :--- | :--- | :--- | :--- | | **Assets:** | | | | | Total assets | $5,701,294 | $5,649,377 | +$51,917 | | Cash and cash equivalents | $141,767 | $99,329 | +$42,438 | | Securities available-for-sale | $1,177,688 | $1,161,701 | +$15,987 | | Net loans | $3,955,677 | $3,937,717 | +$17,960 | | **Liabilities:** | | | | | Total deposits | $4,798,439 | $4,768,731 | +$29,708 | | Total liabilities | $4,982,645 | $4,978,343 | +$4,302 | | **Stockholders' Equity:** | | | | | Total stockholders' equity | $718,649 | $671,034 | +$47,615 | [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) Details the company's financial performance, including revenues, expenses, and net income over specific periods Consolidated Statements of Income Highlights (Thousands, except per share data) | Item | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | | Total interest and dividend income | $75,238 | $73,223 | $148,803 | $146,553 | | Total interest expense | $11,004 | $13,533 | $21,665 | $27,080 | | Net interest and dividend income | $64,234 | $59,690 | $127,138 | $119,473 | | Provision for credit losses | $2,500 | $3,750 | $4,900 | $7,250 | | Total noninterest income | $10,898 | $11,127 | $21,099 | $21,628 | | Total noninterest expense | $43,419 | $37,877 | $87,924 | $76,118 | | Net income | $21,822 | $21,891 | $41,652 | $43,203 | | Basic earnings per share | $0.49 | $0.48 | $0.93 | $0.96 | | Diluted earnings per share | $0.48 | $0.48 | $0.91 | $0.95 | | Dividends declared per share | $0.06 | $0.05 | $0.12 | $0.10 | [Consolidated Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Presents net income and other comprehensive income components, reflecting total changes in equity from non-owner sources Consolidated Statements of Comprehensive Income Highlights (Thousands) | Item | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Income | $21,822 | $21,891 | $41,652 | $43,203 | | Other comprehensive income (net of tax) | $3,953 | $2,592 | $10,322 | $2,012 | | Total comprehensive income | $25,775 | $24,483 | $51,974 | $45,215 | - Accumulated other comprehensive loss, net, improved from **$(47,748) thousand** at January 1, 2025, to **$(37,426) thousand** at June 30, 202