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Old Second Bancorp Stock Soars 22.25% on Q1 Earnings, Acquisitions

Mover TrackerThursday, Apr 24, 2025 5:53 am ET

1min read

Old Second Bancorp's stock surged by 22.25% in pre-market trading on April 24, 2025, driven by a strong first-quarter performance and strategic acquisitions.

Old Second Bancorp reported a net income of $19.8 million for the first quarter of 2025, a slight increase from $19.1 million in the previous quarter but a decrease from $21.3 million in the same period last year. The bank's net interest margin expanded significantly to 4.88%, driven by a $1.1 million decrease in credit loss provisions and a $3.0 million reduction in interest expense. This exceptional performance in the current rate environment highlights the bank's strong capital ratios and strategic growth initiatives.

The bank's asset quality metrics show mixed signals. While nonperforming loans increased slightly to 0.9% of total loans from 0.8% last quarter, they have fallen substantially from 1.6% a year ago. The modest quarter-over-quarter increase stemmed from two specific commercial relationships rather than broad deterioration. Capital metrics continue to strengthen, with tangible common equity to assets improving to 10.34% from 9.04% a year ago, demonstrating strong capital generation despite recent acquisition activity.

Old Second Bancorp announced the acquisition of Evergreen Bank Group, a $1.5 billion bank holding company, to enhance consumer lending capabilities and diversify revenue streams. This strategic move follows December's branch purchase from First Merchants Bank, showcasing the bank's continued focus on growth and expansion. The acquisition is expected to strengthen the bank's competitive position in Chicago and drive long-term stockholder value.

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