Old Second Bancorp (OSBC, Financial) has announced robust financial results for the first quarter of 2025, driven by impressive net interest income and strategic efficiency. The bank reported net interest income of $62.9 million for the quarter. Notably, the tangible book value per share saw a significant rise to $12.88, up from $12.38 in the previous quarter and $11.13 a year earlier.
The bank's net interest margin improved to 4.88%, surpassing the prior quarter's 4.68% and the 4.58% of the same quarter last year. The efficiency ratio was recorded at a healthy 56.46%, underscoring strong operational performance. The provision for credit losses was maintained at $2.4 million.
Nonperforming loans accounted for 0.9% of total loans at the end of the quarter, showing a slight increase from 0.8% in the previous quarter but a marked improvement from 1.6% a year ago. The return on average assets was reported at 1.42%, while return on average tangible common equity stood at 14.70%.
The bank's capital position was strengthened, with the tangible common equity capital ratio rising to 10.34% from 9.04% a year earlier. This growth in capital metrics reflects the bank's solid bottom-line performance and strategic balance sheet management, contributing to shareholder value.
In a strategic move to enhance capabilities, Old Second Bancorp announced its agreement to acquire Evergreen Bank Group, a $1.5 billion entity based in Oak Brook, Illinois. The acquisition is anticipated to bolster consumer lending and further optimize the bank's balance sheet, supporting increased profitability in the future.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Old Second Bancorp Inc (OSBC, Financial) is $21.83 with a high estimate of $24.00 and a low estimate of $18.00. The average target implies an upside of 41.22% from the current price of $15.46. More detailed estimate data can be found on the Old Second Bancorp Inc (OSBC) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Old Second Bancorp Inc's (OSBC, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Old Second Bancorp Inc (OSBC, Financial) in one year is $18.46, suggesting a upside of 19.4% from the current price of $15.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Old Second Bancorp Inc (OSBC) Summary page.
