Old Second Bancorp Reports $9.9 Million Net Income, Acquires Bancorp Financial

Old Second Bancorp, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2025. The company achieved a net income of $9.9 million, or $0.18 per diluted share, a decrease from $23.0 million, or $0.50 per diluted share, in the same quarter of the previous year. This decline is attributed to increased noninterest expenses and provisions for credit losses, primarily due to the recent acquisition of Bancorp Financial, which closed on July 1, 2025. The company’s net interest and dividend income rose to $82.8 million, up from $60.6 million year-over-year, driven by the acquisition and organic loan growth.

Total assets increased by $1.34 billion to $6.99 billion as of September 30, 2025, compared to $5.65 billion at the end of 2024. This growth was largely due to the addition of $1.19 billion in loans from the Bancorp Financial acquisition. Total loans reached $5.27 billion, reflecting a 32.2% increase from the previous year, while total deposits rose to $5.76 billion, a 20.8% increase, also influenced by the acquisition. The company’s allowance for credit losses on loans was $75.0 million, representing 1.4% of total loans, an increase from $43.6 million at the end of 2024.

Operationally, Old Second Bancorp has expanded its footprint and product offerings through strategic acquisitions, including the Bancorp Financial deal, which added new markets and increased scale. The company also completed a branch acquisition from First Merchants Bank in December 2024, further enhancing its presence in the Chicago area. As of September 30, 2025, the company operated 55 banking centers across several counties in Illinois, focusing on community banking services.

The filing also highlighted a notable increase in noninterest expenses, which rose to $63.2 million in the third quarter of 2025, compared to $39.3 million in the same quarter of 2024. This increase was primarily driven by higher salaries and employee benefits related to the Bancorp Financial acquisition, as well as costs associated with the integration of the new operations. The company recorded acquisition-related costs of $11.5 million during the quarter, which significantly impacted its overall expenses.

Looking ahead, Old Second Bancorp remains optimistic about its growth trajectory, emphasizing its strong liquidity position and capital ratios, which exceed regulatory requirements. The company is focused on managing interest rate risk and maintaining a balanced loan portfolio while navigating the evolving economic landscape. The management anticipates that the integration of Bancorp Financial will yield operational efficiencies and strategic benefits in the coming quarters.