Old Second Bancorp(OSBC) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2025 was $19.8 million, a $720,000 increase from Q4 2024, but a decrease of $1.5 million from Q1 2024[1][2][4] - Adjusted net income for Q1 2025 was $20.6 million, reflecting a $639,000 increase from Q4 2024, but a decrease of $637,000 from Q1 2024[1][4] - Basic earnings per share decreased to $0.44 from $0.48, reflecting a decline of 8.33%[58] - Net income for the first quarter of 2025 was $19,830 thousand, down 6.95% from $21,312 thousand in the first quarter of 2024[58] - Net income (GAAP) for the quarter ended March 31, 2025, was $19,830 million, an increase from $19,110 million in the previous quarter[65] Income and Revenue - Net interest and dividend income increased to $62.9 million in Q1 2025, up $1.3 million (2.1%) from Q4 2024 and up $3.1 million (5.2%) from Q1 2024[4][5] - Noninterest income decreased to $10.2 million in Q1 2025, down $1.4 million (12.1%) from Q4 2024 and down $300,000 (2.9%) from Q1 2024[5][6] - Total interest and dividend income for Q1 2025 was $73,565 million, a slight decrease from $75,279 million in Q4 2024[62] - Noninterest income for Q1 2025 was $10,201 million, down from $11,610 million in Q4 2024, indicating a decrease of 12.1%[62] Expenses - Noninterest expense was $44.5 million in Q1 2025, an increase of $183,000 (0.4%) from Q4 2024 and an increase of $6.3 million (16.4%) from Q1 2024[5][6] - Total noninterest expense for Q1 2025 was $44,505 million, an increase from $44,322 million in Q4 2024, representing a 0.4% rise[64] - Salaries and employee benefits increased by $2.7 million year-over-year, primarily due to higher base salary rates and officers' incentives[29] Assets and Loans - Total assets as of March 31, 2025, were $5.73 billion, an increase from $5.65 billion at December 31, 2024[6] - Total loans decreased to $3.94 billion as of March 31, 2025, down $41.1 million from December 31, 2024, and down $29.2 million from March 31, 2024[11] - Total classified loans decreased by $7.0 million from December 31, 2024, and by $50.4 million from March 31, 2024, totaling $85.0 million as of March 31, 2025[39] Credit Quality - Nonperforming loans totaled $34.8 million at March 31, 2025, compared to $30.3 million at December 31, 2024, and $65.1 million at March 31, 2024[11] - The allowance for credit losses was $41.6 million, representing 1.1% of total loans as of March 31, 2025[33] - Net charge-offs for the first quarter of 2025 were $4.4 million, compared to $4.9 million in the fourth quarter of 2024[45] - Nonperforming loans to total loans was 0.9% as of March 31, 2025, down from 1.6% as of March 31, 2024[35] Tax and Equity - The effective tax rate for Q1 2025 was 24.3%, compared to 24.7% for Q4 2024 and 25.3% for Q1 2024[9] - Total stockholders' equity increased to $694,491 thousand, up 3.46% from $671,034 thousand[56] Strategic Developments - The company announced an agreement to acquire Evergreen Bank Group, a $1.5 billion bank holding company, to enhance consumer lending capabilities[10] - The company plans to continue remediation work on classified loans to improve cash flow and tenancy[39]