DA Davidson Flag Elevated Non-Performing Assets as Key Risk for Old Second Bancorp, Inc. (OSBC)

We recently compiled a list of the 9 High Growth Small Cap Stocks That Are Profitable. Old Second Bancorp, Inc. is placed ninth on our list of high-growth stocks.

TheFly reported on January 23 that DA Davidson raised its price target for OSBC to $23 from $22 and maintained a Neutral rating following the company’s fourth-quarter earnings. The firm noted that the impact of the Evergreen acquisition was clearly reflected in Q4 results, with a very strong net interest margin alongside higher-than-normal net charge-offs. DA Davidson added that while growth is expected to improve in 2026 with solid cost control, the elevated level of non-performing assets compared with peers remains a key risk to monitor.

DA Davidson Flag Elevated Non-Performing Assets as Key Risk for Old Second Bancorp, Inc. (OSBC)

Old Second Bancorp, Inc. (NASDAQ:OSBC) reported a strong fourth quarter marked by solid growth in net interest and dividend income, which rose to $83.1 million. Profitability remained among the strongest in the industry, supported by a resilient tax-equivalent net interest margin of 5.09% and an adjusted efficiency ratio of 51.28%. Management highlighted that the company’s strong earnings performance and balanced growth helped improve capital strength, with tangible common equity and tangible book value both increasing despite acquisition-related dilution.

Old Second Bancorp, Inc. (NASDAQ:OSBC) is a regional bank holding company headquartered in Aurora, Illinois, providing community banking services through Old Second National Bank. It offers retail and commercial banking, loans, deposit accounts, trust and wealth management, and other financial services.

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