Old Second Bancorp Inc - OSBC STOCK NEWS

Old Second Bancorp (NASDAQ: OSBC) reported first quarter 2023 net income of $23.6 million, or $0.52 per diluted share, unchanged from the previous quarter but a notable increase from $12.0 million, or $0.27 per diluted share, a year earlier.

Adjusted net income was $23.4 million, a slight decrease from the prior quarter. The increase in annual net income is attributed to a $22.9 million rise in net interest and dividend income, despite a $1.6 million drop in noninterest income. The company declared a cash dividend of $0.05 per share, payable on May 8, 2023. Key metrics include a net provision for credit losses of $3.5 million and nonperforming loans totaling 1.6% of total loans.

O2 Sponsor Finance, part of Old Second National Bank, announced on April 13, 2023, the provision of senior secured credit facilities to facilitate Hastings Equity Partners' acquisition of TERRA Staffing Group. TERRA, a staffing services provider based in Everett, Washington, operates 18 offices across five states, specializing in industrial, administrative, and technical staffing. In 2022, TERRA received the Best of Staffing award for client and talent satisfaction. The financial backing includes subordinated debt financing and equity co-investment from NorthCoast Mezzanine. O2 Sponsor Finance focuses on supporting lower middle-market businesses and enhancing operations through strategic partnerships.

Old Second Bancorp announced that its division O2 Sponsor Finance arranged over $44 million in senior secured credit facilities to support Soundcore Capital Partners in their acquisitions of ACI Asphalt & Concrete, LLC and ACS Asphalt Concrete Solutions. This financing positions the combined entity as a market leader in the Minneapolis area for asphalt and concrete services. The acquisitions are part of Soundcore’s growth strategy, with ACI and ACS servicing large commercial clients and homeowner associations. Co-lender financing was provided by Old National Bank, with Northstar Capital offering subordinated debt.

Old Second Bancorp reported a fourth quarter 2022 net income of $23.6 million, or $0.52 per diluted share, a significant increase from $19.5 million in Q3 2022 and a recovery from a $9.1 million loss in Q4 2021. The net interest and dividend income rose to $64.1 million, up 15.3% from Q3 2022 and 124.1% year-over-year. Adjusted net income, excluding acquisition costs, was $24.1 million. A provision for credit losses declined to $1.5 million. The dividend of $0.05 per share is payable on February 6, 2023. The company's capital ratios indicate a solid financial position and effective asset management.

Old Second Bancorp (NASDAQ: OSBC) reported a net income of $19.5 million or $0.43 per diluted share for Q3 2022, marking an increase from $12.2 million in Q2 2022 and $8.4 million in Q3 2021. The surge in net income is attributed to net interest and dividend income of $55.6 million, reflecting a year-over-year increase of 145.7%. However, the company faced a net provision for credit losses of $4.5 million due to rising loan balances. Additionally, nonperforming loans rose to $52.9 million, raising concerns for investors.

O2 Sponsor Finance, a division of Old Second National Bank, has provided senior secured credit facilities to support Prospect Partners in the recapitalization of Blackwood Solutions. Blackwood, established in 2016, offers electric utility services, including transportation and logistics management in over 20 states. With its asset-based model, Blackwood aims to deliver exceptional service to major electric utility customers. The partnership highlights O2's role in facilitating growth in the utility service sector.

Old Second Bancorp announced that its division, O2 Sponsor Finance, provided $41.5 million in senior secured credit facilities to support Borgman Capital's acquisition of Dairyfood USA. This acquisition enhances the product portfolio and customer base of Borgman's portfolio company, Gilman Cheese Corporation, which specializes in processed cheeses. Dairyfood USA is recognized for producing a variety of private label products and is the largest producer of smoked Gouda in the U.S. The collaboration aims to strengthen their market position and operational synergies.

Old Second Bancorp announced that its O2 Sponsor Finance division provided over $22.8 million in secured financing to assist Cairngorm Capital Partners and SageHome Inc. with their acquisition of New Bath Today Inc. This acquisition aims to enhance services for aging seniors by bridging healthcare and home modification. SageHome specializes in home services allowing seniors to live independently, while New Bath Today focuses on bathroom renovations, particularly for safety. The deal anticipates growth in the senior living market.