Old Second Bancorp stock hits 52-week high at $18.95

Old Second Bancorp (NASDAQ:OSBC) stock reached a 52-week high, trading at $18.95, marking a significant milestone for the company's financial performance. This peak reflects a robust 1-year change with an impressive 28.86% increase, signaling strong investor confidence and a positive market outlook for the regional bank. The surge to this high level underscores the company's resilience and growth potential amidst a dynamic economic landscape.

In other recent news, Old Second Bancorp has reported robust financial results for Q3 2024, with a net income of $23 million, or $0.50 per diluted share. The bank's profitability metrics showed significant improvement, including a return on assets of 1.63% and a return on average tangible common equity of 17.14%. In addition, the company announced a 20% increase in its common dividend.

The bank's credit quality also improved, with substandard and criticized loans decreasing from nearly $300 million in early 2023 to $187.6 million. Total (EPA:TTEF) loans rose by $14.5 million from the previous quarter, primarily in commercial, lease, and construction portfolios.

However, Old Second Bancorp expressed caution regarding future interest rate cuts and market volatility. The company is set to close a branch acquisition in early December and anticipates mid-single-digit organic loan growth. The firm projects an expense growth of 3-5% next year, mainly driven by salaries and benefits. Despite facing challenges like a recent $14 million non-performing loan, the bank's overall financial health appears robust.

InvestingPro Insights

Old Second Bancorp's (OSBC) recent surge to a 52-week high is further supported by InvestingPro data, which reveals a market capitalization of $839.21 million and a P/E ratio of 9.92. This relatively low P/E ratio suggests that the stock may still be undervalued despite its recent gains.

InvestingPro Tips highlight that OSBC has maintained dividend payments for 9 consecutive years, demonstrating a commitment to shareholder returns. This consistency aligns with the company's strong financial performance, as evidenced by its profitability over the last twelve months.

The stock's momentum is further emphasized by InvestingPro data showing a 30.88% price total return over the past six months, corroborating the article's mention of the 28.86% 1-year change. Additionally, OSBC's dividend yield stands at 1.28%, with a notable dividend growth of 20% in the last twelve months, potentially attracting income-focused investors.

For readers seeking a deeper analysis, InvestingPro offers 8 additional tips on OSBC, providing a comprehensive view of the company's financial health and market position.

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