Company: OSBC
Filing Date: 2025-02-26
Form Type: 425
Source: 0000357173-25-000023
Chunk: 13

Company: OLD SECOND BANCORP INC
Filing Date: 2025-02-26
Form: 425
Chunk 13
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 you like it to go higher? Kind of where should we expect that as you get things integrated and they're contributing a bit more?

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

Yes. I mean, I think we could probably take that up a little higher, 20% to 25% is probably a good number. If you look at the slide, it shows what the portfolio is going to look like on a pro forma basis. I kind of like what looks away less now, but we certainly have room to grow in this business.

Q:Got you. Okay. And then just the last one for me. Brad, did I hear you say that in the first year of the transaction, I guess Evergreen will be a bit less profitable than they are currently? And if I did, just what's driving that? Or just what's the short-term headwind there?

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

No, I believe that Evergreen will be substantially more profitable on a stand-alone basis in '25 than they were in '24, and it's driven by -- so basically, they write five-year paper with a roughly three-year effective duration. And what you see running off right now is the stuff that was at the 0-rate trough coming out of COVID. So, we're saying goodbye to 6.5% loans and new loan origination is roughly 9.5%. So that's what driving profitability improvement.

Q:Yes, got you. Okay. Thanks for that. I appreciate it. Thanks guys

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

All right. Thank you.

James Eccher - Chairman and CEO of Old Second Bancorp, Inc. & Old Second National Bank Thanks, Brian. Operator Thank you. As we have no further questions on the line, I'd like to hand it back over to Mr. Eccher for any closing remarks. James Eccher - Chairman and CEO of Old Second Bancorp, Inc. & Old Second National Bank Okay. I appreciate everyone's interest in our company and your active participation on the call this morning. Have a great day. Operator Thank you, ladies and gentlemen. This does conclude today's call, and you may disconnect your lines at this time, and we thank you for your participation. **** Cautionary Note Regarding Forward-Looking Statements Statements included in this presentation