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In a recent move to expand its capital base, Old Second Bancorp Inc. has officially increased the number of its authorized common shares. The company, based in Aurora, Illinois, filed a Certificate of Amendment to its Restated Certificate of Incorporation with the Delaware Secretary of State on May 23, 2025. This filing doubled the authorized common shares from 60 million to 120 million. The $750 million market cap bank currently maintains a "GREAT" financial health rating according to InvestingPro analysis, with a robust track record of 10 consecutive years of dividend payments.
The decision was backed by the shareholders during the Annual Meeting held on May 20, 2025, indicating strong support for the company’s strategic direction. The amendment to the articles is a common practice among public companies seeking to raise additional capital, facilitate stock-based acquisition strategies, or introduce employee stock option plans. The company’s strong financial position is reflected in its modest debt-to-equity ratio of 0.18 and impressive one-year total return of 19.37%.
The company’s filing, as per the Securities and Exchange Commission (SEC) Form 8-K, includes the Certificate of Amendment as Exhibit 3.1, providing official documentation for the change. This move could potentially pave the way for various corporate actions that necessitate the issuance of additional shares.
Old Second Bancorp, which operates under the trading symbol (NASDAQ:OSBC), is a state commercial bank holding company. It has not indicated any immediate plans to issue the newly authorized shares, but the increase in authorized capital provides the company with flexibility for future endeavors. According to InvestingPro data, four analysts have recently revised their earnings expectations upward, suggesting positive momentum. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report, available for over 1,400 US stocks.
This information is based on the company’s SEC filing and is provided to give shareholders and potential investors insight into Old Second Bancorp’s corporate governance and capital structure. The company has not expressed any specific intentions regarding the use of the additional shares at this time.
In other recent news, Old Second Bancorp reported higher-than-expected earnings and revenue for the first quarter of 2025. The company achieved earnings per share of $0.45, surpassing the forecast of $0.44, and reported revenue of $73.1 million, exceeding projections of $70.96 million. Additionally, Old Second Bancorp’s net interest margin improved by 20 basis points to 4.88%, outperforming consensus estimates. Stephens, a research firm, adjusted its price target for the company to $20.00 from $22.00 but maintained an Overweight rating, reflecting a positive outlook on the bank’s performance. The bank also reported a significant year-over-year increase in tangible common equity, reaching 10.3%, and noted positive deposit flows up 7% on an annualized basis. Old Second Bancorp is preparing for a merger with Evergreen Bank, which is expected to enhance its balance sheet resilience in a lower interest rate environment. Furthermore, the company saw improvements in credit quality, with a 62% decline in criticized loans since their peak in the first quarter of 2023. Recent shareholder decisions included the approval of an amendment to increase authorized common stock and the ratification of Plante & Moran, PLLC as the independent public accounting firm for 2025.
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