Old Second Bancorp Reports Steady Net Income and Asset Growth in Q2 2025

Old Second Bancorp, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $21.8 million, or $0.48 per diluted share, which is consistent with the same period in 2024. The company experienced a slight increase in net interest and dividend income, which rose to $64.2 million from $59.7 million year-over-year, primarily due to higher yields on securities and a reduction in other short-term borrowing costs. However, this was offset by a $5.5 million increase in noninterest expenses, driven largely by acquisition-related costs from the merger with Bancorp Financial, which was completed on July 1, 2025.

In terms of overall financial performance, total assets increased to $5.70 billion as of June 30, 2025, up from $5.65 billion at the end of 2024. This growth was attributed to a $42.4 million increase in cash and a $16 million rise in securities available-for-sale. Total loans also saw a modest increase of $17.3 million, reaching $4.00 billion, with notable growth in the leases and commercial real estate sectors. The company’s total deposits rose to $4.80 billion, reflecting a $29.7 million increase since December 31, 2024.

Operationally, Old Second Bancorp's loan portfolio remains robust, with a focus on maintaining quality amid economic fluctuations. The allowance for credit losses on loans stood at $43.0 million, representing 1.08% of total loans. The company recorded a provision for credit losses of $2.2 million in the second quarter, influenced by credit migration in the commercial and commercial real estate segments. Nonperforming loans increased slightly to $32.2 million, but this figure is significantly lower than the $46.9 million reported a year earlier.

Strategically, the merger with Bancorp Financial is expected to enhance Old Second's market presence and operational scale, particularly in the Chicago area. The acquisition of five branches from First Merchants Bank in December 2024 has already contributed to an increase in deposits and customer relationships. The company continues to focus on expanding its services and enhancing customer engagement, with a commitment to maintaining a strong liquidity position and managing interest rate risk effectively.

Looking ahead, Old Second Bancorp remains optimistic about its growth trajectory, despite potential economic challenges. The company plans to leverage its expanded branch network and enhanced capabilities from the merger to drive further loan growth and improve profitability. Management is closely monitoring market conditions and adjusting strategies to ensure resilience against economic fluctuations, including inflation and interest rate changes.