Old Second Bancorp(US:OSBC)2026-01-21 21:05Financial 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].