We recently compiled a list of the 9 High Growth Small Cap Stocks That Are Profitable. Old Second Bancorp, Inc. is placed ninth on our list of high-growth stocks. TheFly reported on January 23 that DA Davidson raised its price target for OSBC to $23 from $22 and maintained a Neutral rating following the company’s fourth-quarter earnings. The firm noted that the impact of the Evergreen acquisition was clearly reflected in Q4 results, with a very strong net interest margin alongside higher-than-normal net c ...

Core Viewpoint - DA Davidson raised the price target on Old Second Bancorp (OSBC) to $23 from $22 while maintaining a Neutral rating after the company's Q4 earnings exceeded expectations [1] Financial Performance - The Q4 results highlighted the impact of the Evergreen acquisition, showcasing a high net interest margin of 5.00% [1] - The company experienced higher than historical net charge-offs during the same period [1] Future Outlook - Growth is expected to increase in 2026, supported by effective cost control measures [1] - The elevated non-performing asset balance compared to peers is a concern that requires monitoring [1]

Core Insights - Old Second Bancorp reported strong fourth-quarter performance with a tax-equivalent net interest margin of 5.09%, an increase of 41 basis points year-over-year and 4 basis points from the previous quarter [1] - The company achieved a return on assets (ROA) of 1.64% and a return on average tangible common equity (ROCCE) of 16.15%, with earnings per share up approximately 30% compared to the previous year [2][4] - The net income for the fourth quarter was reported at $28.8 million, or $0.54 per diluted share, with adjustments leading to a net income of $30.8 million, or $0.58 per diluted share [3][6] Financial Performance - The company experienced a decline in deposit costs, with the total cost of deposits falling to 1.15% from 1.33% in the prior quarter, contributing to the strong net interest margin [7] - Non-interest income decreased slightly from the prior quarter but was higher than the year-ago quarter, driven by increases in wealth management fees and service charges [18] - Total non-interest expense declined by $10.2 million from the prior quarter, including a significant decrease in acquisition-related costs [21] Loan and Deposit Trends - Old Second's loan-to-deposit ratio increased to 93.9%, up from 91.4% in the prior quarter, although total loans decreased by $12.4 million [10] - Average loans increased by $60 million, or 1.2%, from the linked quarter, while average deposits declined by approximately $200 million [11] - The company is targeting mid-single-digit loan growth for 2026 despite expected continued runoff in certain commercial real estate participations [5][13] Credit Quality and Charge-offs - The company recorded $6 million in net loan charge-offs during the fourth quarter, with approximately 75% attributed to the power sports and owner-occupied commercial real estate portfolios [14][16] - Non-performing loans increased by $4.8 million, and classified assets rose by $10 million during the quarter [14] - Management expects elevated charge-offs in the power sports segment in the near term due to a higher interest-rate environment, but remains optimistic about the contribution margin in that portfolio [15][16] Capital and Future Outlook - Tangible book value per share increased to $14.12, and the tangible equity ratio rose to 11.02% at year-end [23] - The company anticipates expense growth of around 3% in 2026, moderated by realized cost savings, while also planning for potential share repurchases [22][24] - Management expressed confidence in the integration of Evergreen and aims to drive organic balance sheet growth [24]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $28.8 million, or $0.54 per diluted share, with a return on assets (ROA) of 1.64% and a return on average tangible common equity (ROTCE) of 16.15% [4] - Excluding certain adjusting items, net income was $30.8 million, or $0.58 per diluted share, with tangible book value per share increasing to $14.12 [5] - The tax equivalent efficiency ratio was 53.98%, with a notable improvement in the efficiency ratio adjusted to 51.28% [12] Business Line Data and Key Metrics Changes - The net interest margin (NIM) was exceptionally strong at 5.09%, reflecting a 41 basis points increase year-over-year [6] - Total loans decreased by $12.4 million from the previous quarter, with tax equivalent loan yields declining by 11 basis points [8] - Non-interest income saw a slight decrease compared to the prior quarter but increased compared to the previous year, driven by wealth management fees and service charges on deposits [11] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 93.9% as of year-end, compared to 91.4% last quarter [7] - The total cost of deposits decreased to 115 basis points from 133 basis points in the prior linked quarter [6] - The allowance for credit losses on loans was $72.3 million, or 1.38% of total loans, down from 1.43% in the previous quarter [9] Company Strategy and Development Direction - The company aims to optimize its balance sheet and reduce reliance on wholesale funding while allowing higher-cost deposits to run off [12] - Loan growth is targeted in the mid-single digit range for the upcoming year, with a focus on organic growth and integration of previous acquisitions [16][66] - The management expressed optimism about future performance and opportunities, emphasizing the strength of the bank [17] Management's Comments on Operating Environment and Future Outlook - Management noted that unemployment and GDP forecasts remain stable, with no significant changes in assumptions [10] - The company expects elevated charge-offs in the power sports portfolio due to the nature of the business, but the contribution margin is at a multi-year high [9][22] - Management is optimistic about the first half of 2026, citing a strong pipeline for loan production [53] Other Important Information - The company completed its integration efforts from previous acquisitions, which contributed to improved performance metrics [13] - Non-interest expenses decreased significantly, with a notable reduction in acquisition-related costs [11] Q&A Session Summary Question: Are cost savings fully captured or is there a tail end into 2026? - Management indicated there is a tail end into 2026, with employee benefits expected to rise due to inflationary trends [19] Question: What is the expected net charge-off pace for the power sports portfolio? - Management expects a higher net charge-off rate due to the nature of the power sports business, with $4.5 million of the $6 million charge-off related to this portfolio [21][22] Question: What are the expectations for loan growth in the power sports vertical? - Management anticipates slightly less than mid-single digit growth in the power sports vertical [36] Question: Can you provide insights on the profile of a typical power sports borrower? - The average cycle score for the power sports portfolio is 730, with a busy season from March through the second and third quarters [42] Question: What is the outlook for share repurchases? - Management expects to begin share repurchases in the near term, indicating a lack of price sensitivity [62]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $28.8 million, or $0.54 per diluted share, with a return on assets (ROA) of 1.64% and a return on average tangible common equity (ROTCE) of 16.15% [4] - Excluding certain adjusting items, net income was $30.8 million, or $0.58 per diluted share, with tangible book value per share increasing to $14.12 [5] - The tax equivalent efficiency ratio was 53.98%, with a notable improvement in net interest margin (NIM) to 5.09%, reflecting a 41 basis points increase year-over-year [6][12] Business Line Data and Key Metrics Changes - Total loans decreased by $12.4 million from the previous quarter, with tax equivalent loan yields declining by 11 basis points [7] - The Powersports portfolio showed higher than expected losses given default, but the contribution margin is at a multi-year high, indicating strong profitability [8] - Non-interest income decreased slightly compared to the prior quarter but increased year-over-year, driven by growth in wealth management fees and service charges on deposits [10] Market Data and Key Metrics Changes - The unemployment and GDP forecast views remained static, with no material changes in assumptions based on recent Federal Reserve projections [9] - The loan-to-deposit ratio increased to 93.9% as of year-end, compared to 91.4% in the previous quarter [6] Company Strategy and Development Direction - The company aims to optimize its balance sheet and reduce reliance on wholesale funding, allowing for a more stable funding profile [11] - Loan growth is targeted in the mid-single digit range for the upcoming year, with a focus on organic growth and integration of recent acquisitions [16][69] - The management is optimistic about future opportunities and believes the bank's performance reflects its strength [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's performance and the potential for growth in 2026, despite challenges in the Powersports portfolio [8][17] - The company anticipates a modest decline in margins in the first quarter but expects to maintain a NIM above 5% for the full year [14][58] Other Important Information - The efficiency ratio adjusted to exclude certain costs was 51.28%, indicating strong operational efficiency [11] - The company recorded a decrease in acquisition-related costs, contributing to a decline in total non-interest expenses [10] Q&A Session Summary Question: Are cost savings fully captured or is there a tail end into 2026? - Management indicated there is a tail end in 2026, with employee benefits expected to rise due to inflationary trends [19] Question: What is the expected net charge-off pace for Powersports? - Management expects a higher net charge-off rate due to the nature of the Powersports business, with $4.5 million of the $6 million charge-off related to this portfolio [22] Question: What are the expectations for loan growth in the Powersports vertical? - Management anticipates slightly less than mid-single digit growth for the Powersports vertical [36] Question: Can you describe the profile of a typical Powersports borrower? - The average FICO score for the Powersports portfolio is 730, with a busy season from March to the third quarter [44] Question: What is the outlook for share repurchase and M&A? - Management indicated that share repurchase is likely to begin soon, and the M&A environment is favorable, but any potential deals will be carefully considered [45][66]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $28.8 million, or $0.54 per diluted share, with a return on assets (ROA) of 1.64% and a return on average tangible common equity (ROATCE) of 16.15% [3] - Excluding certain adjusting items, net income was $30.8 million, or $0.58 per diluted share, with tangible book value per share increasing to $14.12 [4] - The tangible equity ratio increased to 11.02%, and Common Equity Tier 1 was 12.99%, up from 12.44% in the previous quarter [4] Business Line Data and Key Metrics Changes - Total loans decreased by $12.4 million from the previous quarter, with tax equivalent loan yields declining by 11 basis points [6] - Non-performing loans increased by $4.8 million, while classified assets rose by $10 million [6] - The allowance for credit losses on loans was $72.3 million, or 1.38% of total loans, down from $75 million [8] Market Data and Key Metrics Changes - The net interest margin (NIM) was exceptionally strong at 5.09%, a 41 basis point increase year-over-year [5] - The total cost of deposits decreased to 115 basis points from 133 basis points in the prior quarter [5] - Average loans increased by $60 million, or 1.2%, over the linked quarter, while average deposits declined by approximately $200 million [13] Company Strategy and Development Direction - The company aims for mid-single digit loan growth in 2026, with a focus on optimizing the balance sheet and reducing reliance on wholesale funding [16][11] - Integration of the Evergreen acquisition is nearly complete, and the company is prioritizing organic growth [56][58] - The management is optimistic about the performance in 2026, particularly in the power sports segment, which has shown a high contribution margin [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's performance and the strength of its operations, despite challenges in the economic environment [17] - The company anticipates a stable margin trend, with potential modest declines in the first quarter of 2026 [15] - The management noted that the unemployment and GDP forecasts remain static, with no significant changes expected [9] Other Important Information - Non-interest income showed a slight decrease compared to the prior quarter but performed well year-over-year, driven by increases in wealth management fees and service charges [10] - Total non-interest expenses decreased by $10.2 million from the prior linked quarter, with a significant reduction in acquisition-related costs [10] Q&A Session Summary Question: Are the cost savings fully captured or is there a tail end at 2026? - Management indicated there is a tail end at 2026, with employee benefits expected to rise due to inflationary trends, but overall expense growth is projected to be around 3% [19] Question: What is the expectation for net charge-off rates in the power sports portfolio? - Management expects a higher net charge-off rate due to the nature of the power sports business, with $4.5 million of the $6 million charge-off related to this segment [21] Question: Can you provide insights on the margin expectations for the first quarter? - Management expressed confidence in maintaining a margin around 5% for the full year, despite potential modest headwinds [27] Question: What is the current status of the West Suburban loan portfolio? - Approximately $285 million remains in the West Suburban portfolio, with expectations of continued runoff [44] Question: What is the company's approach to capital management and potential buybacks? - Management indicated that share repurchases are expected to begin soon, with no price sensitivity at this point [53]

分组1 - Old Second Bancorp (OSBC) reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, and up from $0.44 per share a year ago, representing an earnings surprise of +9.43% [1] - The company posted revenues of $95.21 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 0.47%, but increased from $73.19 million year-over-year [2] - Old Second Bancorp shares have increased approximately 4.5% since the beginning of the year, contrasting with a 0.7% decline in the S&P 500 [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $93.6 million, and for the current fiscal year, it is $2.14 on revenues of $386 million [7] - The Zacks Industry Rank indicates that the Banks - Midwest sector is currently in the bottom 34% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - The estimate revisions trend for Old Second Bancorp was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Core Viewpoint - Old Second Bancorp, Inc. reported significant growth in net income for the fourth quarter of 2025, indicating strong financial performance compared to previous quarters and the same quarter last year [1] Financial Performance - The net income for the fourth quarter of 2025 was $28.8 million, or $0.54 per diluted share [1] - This represents an increase from a net income of $9.9 million, or $0.18 per diluted share, in the third quarter of 2025 [1] - Compared to the fourth quarter of 2024, where the net income was $19.1 million, or $0.42 per diluted share, the company experienced a year-over-year increase [1]

Financial Performance - Fourth quarter 2025 net income was $28.8 million, an increase of $18.9 million from the third quarter of 2025, and an increase of $9.7 million from the fourth quarter of 2024[1]. - Adjusted net income for the fourth quarter of 2025 was $30.8 million, up $2.4 million from the third quarter of 2025, and up $10.8 million from the fourth quarter of 2024[2]. - Net income for the year ended December 31, 2025, was $80,310,000, down from $85,264,000 in 2024, a decrease of 5.6%[59]. - Basic earnings per share for Q4 2025 was $0.55, compared to $0.42 in Q4 2024, an increase of 30.9%[59]. - Adjusted net income (non-GAAP) for Q4 2025 was $30,778 million, compared to $19,966 million in Q4 2024, reflecting a growth of 54%[64]. Income and Expenses - Net interest and dividend income was $83.1 million for the fourth quarter of 2025, reflecting a 0.3% increase from the third quarter of 2025 and a 34.9% increase from the fourth quarter of 2024[6]. - Noninterest income decreased by $955,000, or 7.3%, to $12.2 million in the fourth quarter of 2025 compared to the third quarter of 2025[6]. - Noninterest expense was $52.9 million for the fourth quarter of 2025, a decrease of $10.2 million, or 16.2%, from the third quarter of 2025[6]. - Total noninterest expense for Q4 2025 was $52,935 million, compared to $44,322 million in Q4 2024, marking an increase of 19%[63]. Credit and Loans - The provision for credit losses was $3.0 million in the fourth quarter of 2025, down from $19.7 million in the third quarter of 2025[6]. - Nonperforming loans totaled $52.8 million at December 31, 2025, representing 1.0% of total loans, up from 0.8% a year earlier[12]. - Total loans were $5.25 billion at December 31, 2025, a decrease of $12.4 million from September 30, 2025, but an increase of $1.27 billion from December 31, 2024, primarily due to the acquisition of Bancorp Financial[12]. - The allowance for credit losses on loans was $72.301 million as of December 31, 2025, maintaining a ratio of 1.4% to total loans, consistent with September 30, 2025[39][40]. Assets and Equity - Total assets increased to $6,902,675,000 as of December 31, 2025, up from $5,649,377,000 in 2024, representing a growth of 22.2%[57]. - Total stockholders' equity increased to $883,986 million in Q4 2025 from $849,998 million in Q3 2025, a rise of 4.00%[61]. - Retained earnings grew to $526,910 million in Q4 2025, up from $500,075 million in Q3 2025, reflecting an increase of 5.36%[61]. Dividends and Shareholder Returns - The company declared a cash dividend of $0.07 per share, payable on February 9, 2026[6]. - The company declared dividends of $0.25 per share for the year, up from $0.21 in 2024, reflecting a 19% increase[59]. Market and Strategic Position - The company plans to continue strategically buying and selling securities as opportunities arise, reflecting a proactive approach to managing its investment portfolio[12]. - The company recorded a day one purchase accounting credit mark of $17.5 million related to the acquisition in the third quarter of 2025[39]. Future Outlook - The company plans to discuss its fourth quarter 2025 financial results in a conference call scheduled for January 22, 2026[53].

Group 1 - Analysts project Old Second Bancorp (OSBC) will announce quarterly earnings of $0.53 per share, a 20.5% increase year over year [1] - Revenues are expected to reach $95.65 million, reflecting a 30.7% increase from the same quarter last year [1] - There has been no revision in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Group 2 - The 'Net Interest Margin' is projected to be 5.0%, up from 4.7% in the same quarter last year [4] - The 'Efficiency Ratio' is expected to reach 54.3%, improved from 57.1% in the previous year [4] - The average balance of total interest-earning assets is estimated at $6.58 billion, compared to $5.26 billion a year ago [5] Group 3 - 'Total noninterest income' is forecasted to be $12.78 million, up from $11.61 million in the same quarter last year [5] - 'Net interest and dividend income' is expected to reach $82.96 million, compared to $75.28 million in the same quarter last year [5] - 'Wealth management' is projected to be $3.55 million, an increase from $3.30 million a year ago [6] Group 4 - Old Second Bancorp shares have decreased by 0.9% in the past month, while the Zacks S&P 500 composite has increased by 1.6% [6] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [6]