DA Davidson analyst Kevin Reevey started Old Second Bancorp with a Neutral rating and $13 price target.

Reports Q1 net income increased $3.1M in the first quarter of 2024 compared to the fourth quarter of 2023. The increase was primarily due to the decrease of $4.5M in provision for credit losses and the $1.8 Mincrease in noninterest income primarily due to a more favorable mark on the fair value of mortgage servicing rights, which were partially offset by a $1.5 M decrease in net interest and dividend income, a $1.2 M increase in noninterest expense and a $518,000 increase in provision for income taxes. Net income decreased $2.3 million in the first quarter of 2024 compared to the first quarter of 2023, primarily due to a decrease in net interest income of $4.3 million year over year driven by contraction in the securities portfolio, as well as higher market rates and increased short-term borrowing. The higher market rates and increased borrowing resulted in a $7.5Mincrease to interest expense.