Old Second Bancorp Inc Ill - OSBC STOCK NEWS

Old Second National Bank's (NASDAQ:OSBC) division O2 Sponsor Finance has provided senior secured credit facilities to support Branford Castle Partners' acquisition of Hoffman Engineering. The transaction was completed as part of O2's active financing activities in 2024.

Hoffman Engineering, based in Stamford, Connecticut, is a global leader in night vision test equipment, night vision imaging lighting systems, and commercial aviation LED specialty lighting products. Founded in 1955, the company has established a strong brand reputation in the night vision sector, serving the U.S. military, aerospace and defense OEMs, and commercial airlines.

O2 Sponsor Finance, a division of Old Second National Bank, has provided senior secured credit facilities to support Fort Point Capital's acquisition of NewBold . Founded in 1994 and based in Greenville, SC, NewBold is a leading managed technology services provider specializing in quick service restaurant, retail, warehousing, and healthcare industries.

NewBold's service portfolio includes support for point-of-sale (POS), automatic identification and data capture (AIDC), and payment device solutions. Their services encompass on-site response, depot repair, technology procurement and deployment, configuration and integration, help-desk support, and payment device encryption services.

Old Second Bancorp (NASDAQ: OSBC) has announced a definitive merger agreement to acquire Bancorp Financial's Evergreen Bank Group in a stock-and-cash transaction valued at ~$200 million. The deal, structured as 75% stock and 25% cash, is expected to close in 3Q25.

The acquisition will create a $7.1 billion asset institution, making it the second-largest bank in the Chicago MSA among banks under $10 billion in assets. Post-merger, Evergreen's significant consumer lending portfolio, particularly in powersports financing, will represent 21% of total loans. The combined entity's deposit mix will shift, with non-interest-bearing deposits declining from 37% to 31% and time deposits increasing from 16% to 26%.

Management projects cost savings of 30% on Evergreen's noninterest expense base by 2026, with an expected ROA around 1.5%. The pro forma entity will maintain strong capital levels with TCE and CET1 ratios of 9.6% and 11.7%, respectively. Credit quality metrics may slightly deteriorate due to consumer lending exposure, though Evergreen's loan portfolio maintains a weighted average FICO score of 717.

Old Second Bancorp (NASDAQ:OSBC) and Bancorp Financial (Evergreen Bank Group) have announced a strategic merger agreement valued at approximately $197 million. Under the terms, Bancorp Financial stockholders will receive 2.5814 shares of Old Second common stock and $15.93 in cash per share, representing a 75% stock and 25% cash transaction.

The merger will create a stronger banking institution with approximately $7.1 billion in assets, $6.0 billion in deposits, and $5.2 billion in loans, becoming the second largest community bank under $10 billion in assets in the Chicago market. The combination leverages Old Second's deposit franchise while incorporating Evergreen's expertise in powersport lending.

The transaction is expected to deliver ~16% EPS accretion to Old Second stockholders in the first full year with fully phased-in cost savings, improve return on assets by over 13 bps, and increase return on tangible common equity by over 267 bps. The merger is anticipated to close in the third quarter of 2025, pending regulatory approvals and Bancorp Financial stockholder approval.

O2 Sponsor Finance, a division of Old Second National Bank (NASDAQ:OSBC), has provided senior secured credit facilities to support Mangrove Equity Partners' acquisition of A&R Sealcoating. Founded in 1985 and based in Waterford, Michigan, A&R is Michigan's largest pure pavement maintenance provider, offering services including asphalt sealcoating, patching, joint and crack sealing, striping, and concrete repair.

A&R serves both commercial and residential markets with a diverse and highly recurring customer base. The company has established itself as a market leader in pavement maintenance and repair solutions in Michigan. Mangrove Equity Partners, founded in 2006, is a Tampa-based lower-middle market investment firm focusing on industrial and business-to-business services, niche manufacturing, and enthusiast consumer products.

Old Second Bancorp (NASDAQ:OSBC) reported Q4 2024 net income of $19.1 million, or $0.42 per diluted share, compared to $23.0 million ($0.50/share) in Q3 2024 and $18.2 million ($0.40/share) in Q4 2023. The quarter-over-quarter decrease was primarily due to a $1.5 million increase in credit loss provisions and a $5.0 million rise in noninterest expense.

Key Q4 2024 metrics include net interest income of $61.6 million, noninterest income of $11.6 million, and noninterest expense of $44.3 million. The company's efficiency ratio was 57.12%, with a return on average assets of 1.34%. Total assets stood at $5.65 billion, with total loans at $3.98 billion and deposits at $4.77 billion.

The Board declared a cash dividend of $0.06 per share, payable February 10, 2025. Nonperforming loans improved to 0.8% of total loans, down from 1.3% in Q3 2024.

Old Second Bancorp (NASDAQ:OSBC) has completed its acquisition of five Illinois branch locations from First Merchants Bank in the Southeast Chicago MSA. The transaction, effective December 6, 2024, involves Old Second assuming approximately $274.2 million in deposits and purchasing about $7.5 million in branch-related loans, along with other branch-related assets. The acquired branches will begin operating as Old Second locations on December 9, 2024.

The acquisition strengthens Old Second's presence in the Southeast Chicago market. Keefe, Bruyette & Woods, Inc. and Nelson Mullins Riley & Scarborough LLP served as financial and legal advisors to Old Second, while Stephens Inc. and Dentons Bingham Greenebaum LLP advised First Merchants Corp.

Old Second Bancorp reported a net income of $23.0 million ($0.50 per diluted share) for Q3 2024, up from $21.9 million ($0.48 per share) in Q2 2024 but down from $24.3 million ($0.54 per share) in Q3 2023. Adjusted net income was $23.3 million ($0.51 per share) in Q3 2024, compared to $21.0 million ($0.46 per share) in Q2 2024 and $24.8 million ($0.55 per share) in Q3 2023. The increase from Q2 2024 was due to a $1.8 million decrease in provision for credit losses, a $888,000 rise in net interest and dividend income, and a $399,000 reduction in income tax provision. However, there was a $546,000 drop in noninterest income and a $1.4 million rise in noninterest expense. Year over year, net income decreased by $1.4 million, mainly due to a $2.5 million decline in net interest income driven by higher interest expenses. Nonperforming loans increased to $52.3 million. The company declared a cash dividend of $0.06 per share, payable on November 4, 2024.

Old Second Bancorp (NASDAQ:OSBC) has agreed to purchase 5 Illinois branch locations from First Merchants (NASDAQ:FRME) in the Southeast Chicago MSA. The acquisition will add approximately $304 million in deposits and $12 million in branch-related loans to Old Second's portfolio. Old Second will pay a 7.5% deposit premium, estimated at $23 million in cash consideration.

This transaction enhances Old Second's position in the Chicagoland area, improving its scale and market penetration. For First Merchants, it marks a complete exit from suburban Chicago markets. The deal is expected to close near year-end 2024, subject to regulatory approval. Upon closing, the acquired branches will be rebranded as Old Second branches.