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Dec 31, 2025
Old Second Q4 2025 Earnings Report
Old Second Bancorp, Inc. reported a significant increase in net income for the fourth quarter of 2025, driven by lower acquisition-related costs and growth in interest and dividend income.
Key Takeaways
Old Second Bancorp, Inc. announced strong financial results for the fourth quarter of 2025, with net income reaching $28.8 million, or $0.54 per diluted share. This represents a substantial increase compared to both the previous quarter and the same period last year, primarily due to reduced acquisition-related costs and higher interest and dividend income.
Net income for Q4 2025 was $28.8 million, a significant increase from $9.9 million in Q3 2025 and $19.1 million in Q4 2024.
Adjusted net income for Q4 2025 was $30.8 million, or $0.58 per diluted share, up from $28.4 million in Q3 2025 and $20.0 million in Q4 2024.
Total loans decreased by $12.4 million compared to Q3 2025 but increased by $1.27 billion compared to Q4 2024, largely due to the Bancorp Financial acquisition.
Net interest margin (TE) increased to 5.09% in Q4 2025, up from 5.05% in Q3 2025 and 4.68% in Q4 2024.
Forward Guidance
Old Second Bancorp, Inc. anticipates continued growth and strong performance in 2026, leveraging its balance sheet flexibility and strategic positioning to capitalize on market opportunities.
Positive Outlook
- Core earnings have shown very strong growth in recent periods and profitability remains among the best in the industry.
- Net interest margin has remained resilient and impressive at 5.09% (TE).
- Adjusted efficiency ratio was a very healthy 51.28%.
- Strong bottom-line performance and a well-positioned balance sheet drove an increase in tangible common equity capital ratio to 11.02% from 10.04% last year end.
- Tangible book value per share increased by 14% in 2025 despite dilution from a meaningful acquisition.
Challenges Ahead
- The strength of the United States economy in general and local economies may be different than expected.
- Rates of delinquencies and amounts of charge-offs, the level of allowance for credit loss, and loan growth may be adversely affected.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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