Billy J. Lyons Jr., a director at Old Second Bancorp Inc. (NASDAQ:OSBC), recently acquired 26 shares of the company's common stock. The purchase, made on November 4, 2024, was at a price of $16.15 per share, totaling approximately $419.
Following this transaction, Lyons holds a total of 13,793 shares directly, as detailed in the company's latest SEC filing. Of these, 5,273 shares are held in his name outright, while 8,520 shares are held with a broker. Additionally, Lyons maintains ownership of 10,441 restricted stock units.
Old Second Bancorp, based in Aurora, Illinois, continues to be an active participant in the financial sector, as evidenced by this recent insider activity.
In other recent news, Old Second Bancorp has reported a strong third quarter in 2024, with net income reaching $23 million, or $0.50 per diluted share. The firm's key financial metrics have shown significant improvement, with a return on assets of 1.63% and a return on average tangible common equity of 17.14%. Additionally, the company announced a 20% increase in its common dividend.
The bank's credit quality has improved, with a marked decrease in substandard and criticized loans from nearly $300 million in early 2023 to $187.6 million. Total (EPA:TTEF) loans have seen an increase of $14.5 million from the previous quarter, demonstrating positive loan growth.
However, Old Second Bancorp's management has expressed caution regarding future interest rate cuts and market volatility. The company is expected to close a branch acquisition in early December, which is projected to strengthen deposits.
Looking ahead, the company is targeting mid-single-digit organic loan growth and anticipates an expense growth of 3-5% next year, primarily driven by salaries and benefits. Despite challenges, including a recent $14 million non-performing loan, Old Second Bancorp's overall financial health appears robust.
InvestingPro Insights
The recent insider purchase by Billy J. Lyons Jr. at Old Second Bancorp Inc. (NASDAQ:OSBC) aligns with several positive indicators highlighted by InvestingPro. According to InvestingPro Tips, four analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in the company's financial performance. This optimism is further supported by the fact that OSBC has maintained dividend payments for nine consecutive years, demonstrating a commitment to shareholder returns.
The company's financial health appears robust, with a P/E ratio of 8.71, indicating that the stock may be undervalued relative to its earnings. This is particularly noteworthy given that OSBC has been profitable over the last twelve months and analysts predict continued profitability this year. The company's dividend yield stands at 1.48%, with a impressive dividend growth of 20% in the last twelve months, potentially making it an attractive option for income-focused investors.
Old Second Bancorp's market capitalization of $737.78 million and a price-to-book ratio of 1.11 suggest that the stock is trading close to its book value. The company's revenue for the last twelve months was $264.97 million, with an operating income margin of 44.44%, indicating strong operational efficiency.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of OSBC's investment potential.
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