Old Second Bancorp reports Q1 adjusted EPS 45c, consensus 44c

Reports Q1 net interest income $62.9M. Tangible book value per share was $12.88 at quarter-end, up from $12.38 at the end of Q4 2024 and $11.13 at the end of Q1 2024. Net interest margin was 4.88% compared to 4.68% in Q4 2024 and 4.58% in Q1 2024. Nonperforming loans as a percentage of total loans were 0.9% at quarter-end, compared to 0.8% at the end of Q4 2024 and 1.6% at the end of Q1 2024. Provision for credit losses was $2.4M. Efficiency ratio was 56.46%. Chairman, President and CEO Jim Eccher said, Old Second reported strong results in the first quarter of 2025 led by exceptional margin performance and disciplined operating efficiency. Tangible book value per share increased by more than 15% on both a linked quarter annualized and year over year basis despite the dilution associated with a branch purchase transaction in the fourth quarter of 2024. Nonperforming assets and classified loans have declined meaningfully on both year over year and linked quarter basis as well. First quarter return on average assets and return on average tangible common equity were 1.42% and 14.70%, respectively, the tax equivalent net interest margin was expanded meaningfully to 4.88% and the efficiency ratio was a very healthy 56.46%. This strong bottom-line performance and a well-positioned balance sheet drove an increase in the tangible common equity capital ratio to 10.34% from 9.04% for the prior year like period. We are exceptionally proud of our performance from both a bottom line perspective and in positioning ourselves to deliver value to our stockholders over the remainder of the year.” Eccher continued, “In February, we announced an agreement to acquire Evergreen Bank Group, a $1.5 billion bank holding company headquartered in Oak Brook, Illinois. We believe the transaction will add meaningful consumer lending capabilities and enhance the flexibility and profitability of Old Second’s balance sheet.”