Old Second Bancorp beats Q4 adjusted net income estimates

Overview

• U.S. bank's Q4 adjusted net income beat analyst expectations

• Net income for Q4 rose significantly from the previous quarter

• Decrease in acquisition-related costs and provision for credit losses boosted net income

Outlook

• Old Second Bancorp did not provide specific guidance for future quarters or the full year

Result Drivers

• ACQUISITION IMPACT - Acquisition of Bancorp Financial led to increased interest and dividend income, despite higher expenses

• COST REDUCTION - Decrease in acquisition-related costs and provision for credit losses boosted net income

• INTEREST EXPENSE - Decrease in interest expense contributed to higher net income

Key Details

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 is $23.00, about 12.9% above its January 20 closing price of $20.37

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.