Old Second Bancorp (NASDAQ:OSBC – Get Free Report) and First Busey (NASDAQ:BUSE – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends. Get Old Second Bancorp alerts: DividendsOld Second Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. First Busey pays an annual dividend of $1 ...

Core Insights - O2 Sponsor Finance, a division of Old Second National Bank, has been active in the second half of 2025 with significant financing activities [1] - The company served as Administrative Agent and Co-Lead Arranger for senior secured credit facilities [1] - The financing supports the acquisition of EventLink Group by Paceline Equity Partners and Serata Capital Partners [1]

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]

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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]