Core Viewpoint - Old Second National Bancorp, Inc. (OSBC) has entered into a definitive merger agreement to acquire Bancorp Financial, Inc. and its subsidiary Evergreen Bank Group for approximately $197 million, with the consideration being 75% stock and 25% cash [1][2]. Acquisition Details - OSBC will pay $15.93 per share in cash and 2.5814 OSBC shares for each share of Evergreen, with the merger expected to close in Q3 2025, pending regulatory and shareholder approvals [2]. - Bancorp Financial operates two branches in the west and one in the south Chicago suburbs, with total assets of about $1.5 billion, gross loans of $1.2 billion, and deposits of $1.2 billion as of December 31, 2024 [3]. Post-Merger Structure - After the merger, the combined entity will have approximately $7.1 billion in total assets, $5.2 billion in total loans, and $6 billion in total deposits [4]. Strategic Rationale - The acquisition is expected to enhance OSBC's deposit mix and scale, making it the second-largest community bank under $10 billion in assets in the Chicago market, while also expanding its market reach through Evergreen's Powersport lending business [5]. - The CEO of OSBC highlighted the opportunity to enhance consumer lending capabilities and improve the balance sheet profile through the merger [6]. Financial Projections - The deal is projected to be 16% accretive to OSBC's 2026 earnings per share, with expected cost savings of 30% of Evergreen's 2025 non-interest expenses [7][6]. - Tangible book value is anticipated to dilute by 5.9%, with a three-year earn-back period, and improvements in return metrics are expected by 2026 [8]. Growth Strategy - This acquisition aligns with OSBC's inorganic growth strategy, following a previous acquisition of five Illinois branches in December 2024, aimed at expanding its presence in the Chicago region [9]. Market Performance - OSBC shares have increased by 7.8% over the past six months, outperforming the industry growth of 7.1% [10].

Financial Data and Key Metrics Changes - The company reported its Q4 2024 earnings, with management highlighting the importance of understanding the current economic environment and its impact on future performance [3][4] - Specific financial metrics and their changes were not detailed in the provided content [5] Business Line Data and Key Metrics Changes - No specific data regarding individual business lines was provided in the content [5] Market Data and Key Metrics Changes - The content does not include specific market data or key metrics changes [5] Company Strategy and Development Direction and Industry Competition - Management emphasized the forward-looking nature of their statements regarding business strategies and prospects, indicating a focus on adapting to the current economic landscape [3][4] - The company does not undertake any duty to update forward-looking statements, suggesting a cautious approach to future guidance [3] Management Comments on Operating Environment and Future Outlook - Management's comments were centered around the current economic environment and its implications for the company's performance, but specific insights were not detailed in the provided content [3][5] Other Important Information - The company discussed the use of non-GAAP financial measures, which are reconciled to GAAP counterparts in their earnings release [4] Q&A Session Summary - No specific questions or answers from the Q&A session were provided in the content [5]

Core Insights - Old Second Bancorp (OSBC) reported a revenue of $73.19 million for the quarter ended December 2024, reflecting a year-over-year increase of 4.6% [1] - The earnings per share (EPS) for the quarter was $0.44, slightly up from $0.42 in the same quarter last year, but below the consensus estimate of $0.49, resulting in an EPS surprise of -10.20% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $69.85 million, leading to a revenue surprise of +4.79% [1] Financial Metrics - Net Interest Margin stood at 4.7%, surpassing the average estimate of 4.5% from three analysts [4] - The Efficiency Ratio was reported at 57.1%, higher than the average estimate of 54.6% from three analysts [4] - Total noninterest income reached $11.61 million, exceeding the estimated $10.94 million from three analysts [4] - Net interest and dividend income was $75.28 million, compared to the average estimate of $59.24 million from two analysts [4] - Wealth management income was reported at $3.30 million, above the average estimate of $2.85 million from two analysts [4] - Net gain on sales of mortgage loans was $0.52 million, slightly above the average estimate of $0.44 million from two analysts [4] Stock Performance - Shares of Old Second Bancorp have returned +4.8% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Company Performance - Old Second Bancorp (OSBC) reported quarterly earnings of $0.44 per share, missing the Zacks Consensus Estimate of $0.49 per share, but showing an increase from $0.42 per share a year ago, resulting in an earnings surprise of -10.20% [1] - The company posted revenues of $73.19 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.79% and increasing from $69.96 million year-over-year [2] - Over the last four quarters, Old Second Bancorp has surpassed consensus revenue estimates four times, but has only exceeded consensus EPS estimates once [2] Stock Performance - Old Second Bancorp shares have increased approximately 4.9% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $69.95 million, and for the current fiscal year, it is $1.86 on revenues of $281.75 million [7] Industry Outlook - The Zacks Industry Rank for Banks - Midwest, which includes Old Second Bancorp, is currently in the top 16% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the stock's performance may be influenced by these revisions [5][6]

Financial Performance - Net income for the fourth quarter of 2024 was $19.1 million, a decrease of $3.8 million from the third quarter of 2024, but an increase of $885,000 from the fourth quarter of 2023[1]. - Adjusted net income for the fourth quarter of 2024 was $20.3 million, down $3.0 million from the previous quarter, and up $1.2 million year-over-year[4]. - Net income for the year ended December 31, 2024, was $85,264 thousand, compared to $91,729 thousand in 2023, a decline of approximately 7.1%[57]. - Basic earnings per share for Q4 2024 was $0.42, up from $0.40 in Q4 2023, representing a growth of 5%[57]. - Basic earnings per share (GAAP) for Q4 2024 was $0.42, compared to $0.55 in Q3 2023, a decline of approximately 23.6%[61]. - Adjusted diluted earnings per share (non-GAAP) for Q4 2024 was $0.44, compared to $0.51 in Q3 2024 and $0.42 in Q4 2023[63]. Income and Revenue - Net interest and dividend income increased to $61.6 million in the fourth quarter of 2024, reflecting a 1.7% increase from the third quarter of 2024 and a 0.6% increase from the fourth quarter of 2023[4]. - Noninterest income rose to $11.6 million, a 9.7% increase from the third quarter of 2024 and a 33.0% increase from the fourth quarter of 2023[4]. - Total noninterest income increased to $11,610 thousand in Q4 2024 from $8,729 thousand in Q4 2023, a rise of approximately 33.5%[57]. - Noninterest income increased by $2.9 million, or 33.0%, in Q4 2024 compared to Q4 2023, primarily due to a rise in residential mortgage banking revenue[21][22]. Expenses - Noninterest expense was $44.3 million, an increase of 12.8% from the third quarter of 2024 and 19.7% from the fourth quarter of 2023[4]. - Total noninterest expense rose to $44,322 thousand in Q4 2024, compared to $37,026 thousand in Q4 2023, an increase of about 19.7%[57]. - The increase in noninterest expense in Q4 2024 was driven by a $937,000 increase in salaries and employee benefits, primarily due to higher year-end accruals[27]. - Legal fees increased by $458,000 in Q4 2024 due to loan-related legal costs, contributing to the overall rise in noninterest expenses[27]. Loans and Credit Quality - The provision for credit losses was $3.5 million in the fourth quarter of 2024, compared to $2.0 million in the third quarter of 2024 and $8.0 million in the fourth quarter of 2023[4]. - Nonperforming loans decreased to $30.3 million at December 31, 2024, down from $52.3 million at September 30, 2024, and $68.8 million at December 31, 2023[9]. - Total loans were $3.98 billion at December 31, 2024, a decrease of $9.7 million from the previous quarter and $61.6 million year-over-year[9]. - The allowance for credit losses on loans was $43.6 million as of December 31, 2024, representing 1.1% of total loans, consistent with the previous quarters[38]. - Nonperforming loans to total loans ratio improved to 0.8% as of December 31, 2024, down from 1.3% at September 30, 2024, and 1.7% at December 31, 2023[33]. Assets and Deposits - Total assets increased to $5,664.7 million as of December 31, 2024, compared to $5,615.1 million in the previous quarter[11]. - Total deposits increased by $303.3 million, or 6.8%, to $4.77 billion as of December 31, 2024, primarily due to the acquisition of FRME's five Illinois branches[45]. - Total deposits increased to $4,768,731 thousand, up from $4,570,746 thousand, reflecting a growth of approximately 4.33%[55]. - The securities available-for-sale portfolio totaled $1.16 billion as of December 31, 2024, a decrease of $29.2 million from Q3 2024 and $31.1 million from Q4 2023[31]. Tax and Efficiency - The effective tax rate for the fourth quarter of 2024 was 24.68%, compared to 23.11% in the third quarter of 2024 and 26.92% in the fourth quarter of 2023[7]. - The efficiency ratio (GAAP) for Q4 2024 was 57.12%, up from 53.38% in Q3 2024 and 50.82% in Q4 2023[27]. - Efficiency ratio for Q4 2024 was 57.12%, compared to 53.38% in Q3 2024 and 50.82% in Q4 2023, indicating a decline in operational efficiency[64]. Other Notable Points - The company recorded a $1.7 million OREO valuation reserve expense in Q4 2024 based on valuation write-downs on two OREO properties[28]. - The company declared dividends of $0.06 per share in Q4 2024, up from $0.05 per share in Q4 2023, reflecting a 20% increase[57]. - The company experienced a significant increase in construction classified loans, which rose by 235.7% to $19.4 million from September 30, 2024[35].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Old Second Bancorp (OSBC) as a strong value stock based on its financial metrics and Zacks Rank [2][4][7] Company Metrics - Old Second Bancorp (OSBC) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4] - The stock's current P/E ratio is 9.83, significantly lower than the industry average of 12.38, suggesting it may be undervalued [4] - OSBC's P/B ratio stands at 1.24, compared to the industry average of 2.17, further indicating attractive valuation [5] - The P/CF ratio for OSBC is 9.09, which is favorable when compared to the industry's average of 17.29, highlighting its strong cash flow outlook [6] Investment Outlook - The combination of OSBC's strong financial metrics and positive earnings outlook positions it as an impressive value stock at the moment [7]

Analysts on Wall Street project that Old Second Bancorp (OSBC) will announce quarterly earnings of $0.49 per share in its forthcoming report, representing an increase of 16.7% year over year. Revenues are projected to reach $69.85 million, declining 0.2% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Ahead of a company' ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 000-10537 (Exact name of Registrant as specified in its charter) Delaware 36-3143493 (State or other jurisdiction (I.R.S. Emp ...

Core Insights - Old Second Bancorp (OSBC) reported a revenue of $71.16 million for the quarter ended September 2024, reflecting a decrease of 2.4% year-over-year, while EPS was $0.51 compared to $0.55 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 0.30%, and the EPS surpassed the consensus estimate by 6.25% [1] Financial Performance Metrics - Net Interest Margin stood at 4.6%, matching the three-analyst average estimate [3] - Efficiency Ratio was reported at 53.4%, slightly above the average estimate of 53% [3] - Total interest earning assets averaged $5.22 billion, below the two-analyst average estimate of $5.26 billion [3] - Total noninterest income was $10.58 million, slightly below the average estimate of $10.62 million [3] - Wealth management income was $2.79 million, compared to the average estimate of $2.81 million [3] - Service charges on deposits amounted to $2.65 million, exceeding the average estimate of $2.52 million [3] - Other income reached $1.60 million, significantly above the average estimate of $0.93 million [3] - Net gain on sales of mortgage loans was $0.51 million, above the average estimate of $0.47 million [3] - Change in cash surrender value of BOLI was $0.86 million, exceeding the average estimate of $0.81 million [3] - Card related income was $2.59 million, slightly below the average estimate of $2.62 million [3] - Net interest and dividend income totaled $76.07 million, significantly above the average estimate of $60.28 million [3] - Net Interest Income (FTE) was reported at $60.93 million, slightly above the average estimate of $60.71 million [3] Stock Performance - Shares of Old Second Bancorp have declined by 4.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 3.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Old Second Bancorp (OSBC) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.25%. A quarter ago, it was expected that this financial holding company would post earnings of $0.48 per share when it actually produced earnings of $0.46, delivering a surprise of -4.17%. Over the last four ...