Dividends - Old Second Bancorp pays an annual dividend of $0.28 per share with a dividend yield of 1.4% while First Busey pays an annual dividend of $1.00 per share with a dividend yield of 4.0% [1] - Old Second Bancorp pays out 18.5% of its earnings as dividends, whereas First Busey pays out 87.0%, indicating potential future sustainability issues for First Busey [1] - First Busey has a longer track record of dividend growth, having raised its dividend for 10 consecutive years compared to Old Second Bancorp's 1 year [1] Insider & Institutional Ownership - 67.8% of Old Second Bancorp shares are owned by institutional investors, compared to 56.5% for First Busey [2] - Company insiders own 3.8% of Old Second Bancorp shares, while First Busey insiders own 3.9% [2] Valuation & Earnings - Old Second Bancorp has gross revenue of $341.72 million and net income of $85.26 million, with an earnings per share (EPS) of $1.51 and a price-to-earnings (P/E) ratio of 13.58 [4] - First Busey has gross revenue of $663.36 million and net income of $113.69 million, with an EPS of $1.15 and a P/E ratio of 21.89 [4][5] - Old Second Bancorp is trading at a lower P/E ratio, indicating it is more affordable compared to First Busey [5] Profitability - Old Second Bancorp has a net margin of 18.89%, return on equity of 12.34%, and return on assets of 1.51% [8] - First Busey has a net margin of 11.00%, return on equity of 9.05%, and return on assets of 1.11% [8] Analyst Recommendations - Old Second Bancorp has a consensus target price of $21.63, indicating a potential upside of 5.44%, while First Busey has a target price of $26.33 with a potential upside of 4.62% [10] - Old Second Bancorp has a stronger consensus rating with a score of 3.00 compared to First Busey's score of 2.43 [10] Summary - Old Second Bancorp outperforms First Busey in 11 out of 18 factors compared between the two stocks [11]

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]