Company: OSBC
Filing Date: 2025-02-26
Form Type: 425
Source: 0000357173-25-000023
Chunk: 4

Company: OLD SECOND BANCORP INC
Filing Date: 2025-02-26
Form: 425
Chunk 4
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. That is obviously speculative, and the corresponding move exists in the other directions for higher interest rates, but I think it's helpful in understanding the natural interest rate hedge that exists here a hedge with neither a maturity date nor ongoing brokerage fees.

Our detailed due diligence process results in a high degree of comfort in our deal assumptions, including our ability to achieve an estimated 30% cost saves as reflected on Slide 17 without impacting the business. In summary, we feel great about the financial prospects of this transaction, along with the significant flexibility it will provide us in the future. We believe this opportunity provides excellent benefits to both groups of shareholders, particularly in the current interest rate environment.

I'd like to conclude my comments by offering that we evaluated this opportunity in the context in all opportunities that were in front of us to deploy capital. It's been no secret that Old Second has been stockpiling capital in recent years following our last acquisition.

I'd like to thank shareholders for their patience in that regard. It remains our belief that we would get a chance to invest that capital in an opportunity that would drive returns far in excess of the cost of carry. We believe this is such an opportunity, but not the only one.

Thank you all for joining the call today, and I'll turn it back over to Jim.

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

Okay. Thanks, Brad. That concludes our prepared comments. So, I'll turn it over to the moderator, and we can open it up to questions.

Operator

Thank you. At this time, we will be conducting our question-and-answer session. [Operator Instructions]. Thank you. Our first question is coming from Jeff Rulis with D.A. Davidson. Your line is live.

Q:This is Ryan [indiscernible] on for Jeff Rulis today. If we can start with how the relationship came to be and whether this was negotiated or auctioned?

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

Well, Ryan, as part of what we do as a management team is certainly look to be proactive, right on the M&A front looking for strategic relationships. It's something we formed over the years. We've long admired Evergreen Bank's niche business. Obviously, we'd love what it does for our asset sensitivity.

So, in short, it's just a cultivation of relationships over the years, and we're obviously thrilled to come together.