- Old Second Bancorp (OSBC, Financial) reports Q1 2025 net income of $19.8 million, or $0.43 per diluted share.
- Net interest income increased 5.2% year-over-year to $62.9 million, while noninterest income fell by 2.9%.
- The company declares a $0.06 per share dividend and announces the acquisition of Evergreen Bank Group.
Old Second Bancorp, Inc. (OSBC) announced its financial results for the first quarter of 2025, revealing a net income of $19.8 million, or $0.43 per diluted share. This represents an increase from $19.1 million, or $0.42 per share, in the fourth quarter of 2024, but a decrease when compared to $21.3 million, or $0.47 per share, in the first quarter of 2024.
The bank's net interest income rose to $62.9 million, marking a 2.1% increase from the previous quarter and a 5.2% increase year-over-year. However, noninterest income saw a decline of 12.1% sequentially and 2.9% year-over-year. Noninterest expenses rose 16.4% from a year ago.
Old Second Bancorp saw its net interest margin expand significantly to 4.88%, an improvement from 4.68% last quarter and 4.58% a year earlier. Despite a decrease in total loans to $3.94 billion, the percentage of nonperforming loans dropped to 0.9% from 1.6% a year ago, indicating improved asset quality.
The company reported a tangible book value per share increase to $12.88 and a return on average tangible common equity of 14.70%. The common equity tier 1 capital ratio was 13.47%, and the total risk-based capital ratio stood at 16.24%.
In addition to the financial highlights, Old Second Bancorp declared a $0.06 per share cash dividend, payable on May 5, 2025. The expected strategic acquisition of Evergreen Bank Group was also announced, which is anticipated to bolster the bank's consumer lending capabilities and diversify its revenue streams, further enhancing its competitive position in the Chicago market.
