NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) has assigned the senior unsecured debt rating of BBB- and short-term debt rating of K3 for Old Second Bancorp, Inc. (NASDAQ: OSBC) (“OSBC”, “Old Second” or “the Company”), a bank holding company headquartered in Aurora, Illinois. In addition, KBRA has assigned the senior unsecured debt/deposit rating of BBB and short-term deposit rating of K3, as well as assigned a subordinated debt rating of BBB- and short-term debt rating of K3 for the subsidiary bank, Old Second National Bank (“the Bank”). The outlook on all long-term ratings is stable.
The ratings are supported by Old Second’s substantial core deposit base and stable funding metrics, strong core and risk-based capital, and substantially accretive acquisition of the Chicago branch of Talmer Bank. However, ratings are counterbalanced by the below peer earnings performance impacted by legacy credit issues, coupled with the Company’s elevated level of double leverage, though this ratio has trended downward since 2013.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology, published on February 19, 2016.
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).