Company: OSBC
Filing Date: 2025-02-26
Form Type: 425
Source: 0000357173-25-000023
Chunk: 12

Company: OLD SECOND BANCORP INC
Filing Date: 2025-02-26
Form: 425
Chunk 12
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ine on that. So, I reserve consulting legal judgment. But I can't think of any reason why we couldn't.

Q:Okay. Would you expect to be active in the short term given you've kind of indicated that at least you're off the market in terms of M&A likely for the short term until you get this closed, but on the buyback, is that likely.

Bradley Adams - EVP, Chief Operating & Chief Financial Officer, Old Second Bancorp, Inc.

No, the same dynamic and constraints that we talked about in prior calls that are still in play.

Q:Got you. Okay. And then just on maybe Jim or your comments just on the potential down the road for additional M&A Jim, you made the comment about maybe addressing the kind of the deposit side. And your comment on this transaction being more the asset generator side, would your expectations be in the future that your preference would be to find more asset generators like this deal? Or is it sounds like there's a higher likelihood of the deposit side transactions given the marketplace. But just kind of your interest in future M&As.

James Eccher - Chairman and CEO of Old Second Bancorp, Inc. & Old Second National Bank

By and large, we are always interested in quality deposit franchises. That will never change. That's who we are fundamentally as a company. Obviously, growing assets organically with our teams is preferred. It's been as Brad said, it's been a little bit uneven, the last few years. We've had some great years with organic growth and some slower ones. Last year, we found the yield curve such that putting assets on it at a reasonable return didn’t make a lot of sense. So, M&A made more sense over the near term. But we will continually look for good deposit opportunities and this opportunity at Evergreen was unique, and we feel the diversification gives us is something we didn't have. We really did not have a meaningful consumer lending vertical.

On a pro forma basis, this takes our consumer lending concentration to about 20%. I like that a lot. And further reduces concentration in other buckets. So, I think our M&A strategy will continue to be the same. We'll be opportunistic and take what the market gets us.

Q:Got you. And that was the other thing, Jim, just in terms of the diversity, the 20%, I guess is that where you're comfortable, do you expect it to kind of maintain around that 20%? Would