Old Second Bancorp Inc. (OSBC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Old Second Bancorp Inc. has a market cap of $68.86 million; its shares were traded at around $4.94 with and P/S ratio of 0.39. The dividend yield of Old Second Bancorp Inc. stocks is 0.81%.
Results of Operations The net loss for the current period was $.69 per diluted share on $8.6 million of net loss. This compares to net income of $.01 per diluted share, on $984,000 of net income, for the first quarter of 2009. The decreases in earning assets and mortgage banking income combined with increases in both the provision for loan losses and other real estate expenses more than offset reductions to interest expense, salaries and employment related expenses. The Company recorded a $19.2 million provision for loan losses and net charge-offs totaled $16.9 million in the first quarter of 2010. This compared to a provision for loan losses of $9.4 million and net charge-offs totaling $4.4 million in the first quarter of 2009. The net loss available to common stockholders was $9.7 million for the first quarter of 2010 after preferred stock dividends and accretion of $1.1 million. This compared to net income available to common stockholders of $183,000 for the first quarter of 2009 after preferred stock dividends and accretion of $801,000.
Net Interest Income Net interest income decreased $1.2 million, from $22.2 million in the first quarter of 2009 to $21.0 million in the first quarter of 2010. Average earning assets decreased $478.5 million, or 17.2%, from March 31, 2009 to March 31, 2010. Average interest bearing liabilities decreased $423.2 million, or 17.4%, during the same period. Management continued to focus upon asset quality and loan growth continued to be limited in 2010. The $239.3 million decrease in average loans was primarily due to the combined effect of a general decrease in demand from qualified borrowers in the Banks market area as well as loan charge-off activity. Management significantly reduced both borrowings and securities available for sale throughout 2009, and additional reductions were made to the tax-exempt available for sale securities portfolio in the first quarter of 2010. At the same time, management significantly reduced both borrowings and deposits that had previously provided funding for those assets. The decrease in
(1) Interest income from loans is shown on a TE basis as discussed below and includes fees of $683,000 and $864,000 for the first quarter of 2010 and 2009, respectively. Non-accrual loans are included in the above stated average balances.
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Old Second Bancorp Inc. has a market cap of $68.86 million; its shares were traded at around $4.94 with and P/S ratio of 0.39. The dividend yield of Old Second Bancorp Inc. stocks is 0.81%.
Highlight of Business Operations:
The loan portfolio quality is generally reflective of the economic status of the communities in which the Company operates, and the Company recorded a $19.2 million provision for loan losses and a net loss of $8.6 million prior to preferred stock dividends and accretion in the first quarter of 2010.The ongoing weakness in the financial system and economy, particularly as it relates to the credit and real estate markets continues to directly affect some borrowers ability to repay their loans as well as the general level of property valuations. While this economic weakness is reflected in the operating results, management remains vigilant in analyzing the loan portfolio quality, estimating loan loss provision and making decisions to charge-off loans. Management also remains focused on the capital planning process and continues to assess capital alternatives to help ensure capital strength is sustained to best situate the Company to pursue lending and market opportunities that may become available with an economic recovery. In connection with that process the Company requested, and the stockholders approved, an increase in the number of authorized shares of common stock from 20 million to 40 million shares at the annual meeting that was held on April 20, 2010.Results of Operations The net loss for the current period was $.69 per diluted share on $8.6 million of net loss. This compares to net income of $.01 per diluted share, on $984,000 of net income, for the first quarter of 2009. The decreases in earning assets and mortgage banking income combined with increases in both the provision for loan losses and other real estate expenses more than offset reductions to interest expense, salaries and employment related expenses. The Company recorded a $19.2 million provision for loan losses and net charge-offs totaled $16.9 million in the first quarter of 2010. This compared to a provision for loan losses of $9.4 million and net charge-offs totaling $4.4 million in the first quarter of 2009. The net loss available to common stockholders was $9.7 million for the first quarter of 2010 after preferred stock dividends and accretion of $1.1 million. This compared to net income available to common stockholders of $183,000 for the first quarter of 2009 after preferred stock dividends and accretion of $801,000.
Net Interest Income Net interest income decreased $1.2 million, from $22.2 million in the first quarter of 2009 to $21.0 million in the first quarter of 2010. Average earning assets decreased $478.5 million, or 17.2%, from March 31, 2009 to March 31, 2010. Average interest bearing liabilities decreased $423.2 million, or 17.4%, during the same period. Management continued to focus upon asset quality and loan growth continued to be limited in 2010. The $239.3 million decrease in average loans was primarily due to the combined effect of a general decrease in demand from qualified borrowers in the Banks market area as well as loan charge-off activity. Management significantly reduced both borrowings and securities available for sale throughout 2009, and additional reductions were made to the tax-exempt available for sale securities portfolio in the first quarter of 2010. At the same time, management significantly reduced both borrowings and deposits that had previously provided funding for those assets. The decrease in
(1) Interest income from loans is shown on a TE basis as discussed below and includes fees of $683,000 and $864,000 for the first quarter of 2010 and 2009, respectively. Non-accrual loans are included in the above stated average balances.
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