Overview

* Old Second Q3 adjusted net income beats expectations, driven by acquisition-related gains

* Net income for Q3 declines due to increased interest and noninterest expenses

* Company's acquisition of Bancorp Financial significantly impacts Q3 financial results

Outlook

* Company did not provide specific guidance for future quarters or full year

Result Drivers

* ACQUISITION IMPACT - Acquisition of Bancorp Financial led to increased interest and dividend income, but also higher interest and noninterest expenses

* CREDIT LOSSES - Increase in provision for credit losses due to acquisition-related day two valuations and loan growth

* NONINTEREST EXPENSES - Significant rise in noninterest expenses due to acquisition-related costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $28.40 $17.44

Adjusted mln mln (5

Net Analysts

Income )

Q3 Net $9.87

Income mln

Q3 Net $82.77

Interest mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy"

* Wall Street's median 12-month price target for Old Second Bancorp Inc ( OSBC ) is $22.00, about 17.8% above its October 21 closing price of $18.08

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)