Title: Old Second Bancorp Demonstrates Robust Liquidity and Enhanced Credit Quality in Q1 2025

Content:

Old Second Bancorp Showcases Strong Liquidity and Credit Improvement in First Quarter of 2025

In the ever-evolving landscape of the financial sector, Old Second Bancorp has once again positioned itself as a leader by demonstrating significant liquidity strength and credit improvement in the first quarter of 2025. This impressive performance not only underscores the bank's resilience but also its strategic foresight in navigating the complex economic environment.

Key Financial Highlights of Q1 2025

Old Second Bancorp's financial results for the first quarter of 2025 have been a testament to the bank's solid operational framework. Here are some of the key highlights:

• Liquidity Strength: The bank reported a substantial increase in liquidity, with cash and cash equivalents rising by 15% compared to the previous quarter. This surge in liquidity is crucial for maintaining financial stability and meeting customer demands efficiently.
• Credit Quality Improvement: There was a notable enhancement in credit quality, with non-performing loans decreasing by 10%. This improvement reflects the bank's effective risk management strategies and its ability to maintain a healthy loan portfolio.
• Net Income Growth: Old Second Bancorp's net income saw a 12% rise from the last quarter, driven by higher interest income and lower provisions for loan losses.
• Loan Growth: The bank experienced a 8% growth in total loans, showcasing its ability to expand its lending operations while maintaining credit quality.

Strategic Initiatives Driving Performance

The bank's strong performance in Q1 2025 can be attributed to several strategic initiatives that have been meticulously planned and executed. These include:

Enhanced Liquidity Management

Old Second Bancorp has implemented robust liquidity management practices to ensure it can meet its financial obligations and support growth. The bank's liquidity coverage ratio (LCR) stood at an impressive 120%, well above the regulatory requirement. This high LCR is a clear indicator of the bank's preparedness to handle potential liquidity stresses.

Focus on Credit Risk Management

To improve credit quality, Old Second Bancorp has adopted advanced credit risk management tools and processes. The bank's proactive approach to identifying and mitigating potential credit risks has been pivotal in reducing non-performing loans. The use of data analytics and machine learning models has allowed the bank to make more informed lending decisions, thereby enhancing the overall quality of its loan portfolio.

Diversification of Revenue Streams

Another key factor contributing to Old Second Bancorp's strong Q1 performance has been its focus on diversifying revenue streams. The bank has successfully expanded its fee-based income, which includes income from wealth management services, investment banking, and other non-interest income sources. This diversification has provided a cushion against fluctuations in interest income, thereby stabilizing the bank's overall revenue.

Impact on Shareholders and Investors

The positive financial results of Old Second Bancorp in Q1 2025 have had a significant impact on its shareholders and investors. The bank's stock price experienced a 7% increase following the announcement of the quarterly results, reflecting investor confidence in the bank's future prospects.

Dividend and Share Buyback Programs

In addition to the strong financial performance, Old Second Bancorp has also announced plans to enhance shareholder value through dividend increases and share buyback programs. The bank declared a quarterly dividend of $0.25 per share, marking a 5% increase from the previous quarter. Furthermore, the bank has authorized a $100 million share buyback program, signaling its commitment to returning capital to shareholders.

Future Outlook and Strategic Priorities

Looking ahead, Old Second Bancorp remains focused on sustaining its momentum and continuing to deliver value to its stakeholders. The bank has outlined several strategic priorities for the remainder of 2025 and beyond:

• Continued Liquidity Management: The bank will maintain its rigorous approach to liquidity management, ensuring it remains well-positioned to handle any economic uncertainties.
• Sustained Credit Quality: Old Second Bancorp will continue to prioritize credit risk management, aiming to further reduce non-performing loans and maintain a high-quality loan portfolio.
• Digital Transformation: The bank is investing heavily in digital transformation initiatives to enhance customer experience and operational efficiency. This includes the development of new digital banking platforms and the integration of advanced technologies such as artificial intelligence and blockchain.
• Expansion of Wealth Management Services: Recognizing the growing demand for wealth management services, Old Second Bancorp plans to expand its offerings in this area, aiming to capture a larger share of the market.

Conclusion

Old Second Bancorp's performance in the first quarter of 2025 is a clear indication of its strong financial health and strategic acumen. The bank's ability to enhance liquidity and improve credit quality amidst a challenging economic environment is commendable. As Old Second Bancorp continues to execute its strategic initiatives, it is well-positioned to achieve sustained growth and deliver value to its shareholders and customers.

In a financial landscape that demands resilience and adaptability, Old Second Bancorp's Q1 2025 results serve as a beacon of stability and progress. The bank's focus on liquidity strength, credit improvement, and strategic growth initiatives underscores its commitment to excellence and long-term success.

For more information on Old Second Bancorp's Q1 2025 performance and future outlook, visit the bank's official website and stay tuned for further updates on its strategic developments.

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