Old Second Bancorp Inc. (OSBC, Financial) filed Quarterly Report for the period ended 2009-03-31.
Old Second Bancorp Inc.'s full service banking businesses include the customary consumer and commercial products and services which banks provide. The following services are included: demand savings time deposit individual retirement and Keogh deposit accounts; commercial industrial consumer and real estate lending including installment loans student loans farm loans lines of credit and overdraft checking; safe deposit operations; trust services; and an extensive variety of additional services tailored to the needs of individual customers. Old Second Bancorp Inc. has a market cap of $84.07 million; its shares were traded at around $6.08 with a P/E ratio of 6.33 and P/S ratio of 0.44. The dividend yield of Old Second Bancorp Inc. stocks is 2.63%. Old Second Bancorp Inc. had an annual average earning growth of 7.6% over the past 5 years.
Results of Operations Net income for the current period was $1.0 million, or $0.01 diluted earnings per share, as compared with $5.6 million, or $0.42 diluted earnings per share, in the first quarter of 2008. The increases in the 2009 net interest margin and noninterest income totals were more than offset by the increases in provision for loan losses and noninterest expenses. The Company recorded a $9.4 million provision for loan losses in first quarter 2009, and net charge-offs totaled $4.4 million during the same period. The provision for loan losses totaled $900,000 in the first quarter of 2008, and net charge-offs totaled $627,000. Further comparison of first quarter 2009 and 2008 shows that there was realized securities losses of $77,000 in the current period, whereas there were $308,000 in realized securities gains in the first quarter of 2008. Net income available to common stockholder was $183,000 for the first quarter of 2009, as compared to $5.6 million for the first quarter of 2008.
Net Interest Income Net interest income increased from $19.9 million in the first quarter of 2008 to $22.2 million in the first quarter of 2009. Average earning assets grew $147.8 million, or 5.6%, from March 31, 2008 to March 31, 2009. Average interest bearing liabilities increased $128.1 million, or 5.6%, during the same period. The net interest margin (tax equivalent basis), expressed as a percentage of average earning assets, increased from 3.18% in the first quarter of 2008 to 3.37% in the first quarter of 2009. The average tax-equivalent yield on earning assets decreased from 6.28%, in the first quarter of 2008 to 5.27%, or 101 basis points, in the first quarter of 2009. At the same time, however, the cost of funds on interest-bearing liabilities decreased from 3.64% to 2.25%, or 139 basis points. The interest income produced from the growth in average earning assets more than offset the cost of funding that growth in deposit and other balances. Additionally, the general decrease in interest rates lowered interest expense to a greater degree than it reduced interest income.
(1) Interest income from loans is shown on a tax equivalent basis as discussed below and includes fees of $864,000 and $956,000 for the first quarter of 2009 and 2008, respectively. Non-accrual loans are included in the above stated average balances.
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Old Second Bancorp Inc.'s full service banking businesses include the customary consumer and commercial products and services which banks provide. The following services are included: demand savings time deposit individual retirement and Keogh deposit accounts; commercial industrial consumer and real estate lending including installment loans student loans farm loans lines of credit and overdraft checking; safe deposit operations; trust services; and an extensive variety of additional services tailored to the needs of individual customers. Old Second Bancorp Inc. has a market cap of $84.07 million; its shares were traded at around $6.08 with a P/E ratio of 6.33 and P/S ratio of 0.44. The dividend yield of Old Second Bancorp Inc. stocks is 2.63%. Old Second Bancorp Inc. had an annual average earning growth of 7.6% over the past 5 years.
Highlight of Business Operations:
Although first quarter 2008 earnings included the contribution of the Heritage acquisition from the February 8, 2008 closing date, the Company did not begin to realize the full economic benefits of the Heritage transaction until the second quarter of 2008 when the integration initiatives were substantially completed. The Company paid consideration of $43.0 million in cash and 1,563,636 shares of the Companys common stock valued at $27.50 per share to consummate the Heritage acquisition. Details related to the allocation of the purchase price for this business combination are discussed in Note 2 of the financial statements included in this quarterly report. The terms of the credit facilities that were established to complete the acquisition are detailed in Note 9 of the financial statements included in this quarterly report.Results of Operations Net income for the current period was $1.0 million, or $0.01 diluted earnings per share, as compared with $5.6 million, or $0.42 diluted earnings per share, in the first quarter of 2008. The increases in the 2009 net interest margin and noninterest income totals were more than offset by the increases in provision for loan losses and noninterest expenses. The Company recorded a $9.4 million provision for loan losses in first quarter 2009, and net charge-offs totaled $4.4 million during the same period. The provision for loan losses totaled $900,000 in the first quarter of 2008, and net charge-offs totaled $627,000. Further comparison of first quarter 2009 and 2008 shows that there was realized securities losses of $77,000 in the current period, whereas there were $308,000 in realized securities gains in the first quarter of 2008. Net income available to common stockholder was $183,000 for the first quarter of 2009, as compared to $5.6 million for the first quarter of 2008.
Net Interest Income Net interest income increased from $19.9 million in the first quarter of 2008 to $22.2 million in the first quarter of 2009. Average earning assets grew $147.8 million, or 5.6%, from March 31, 2008 to March 31, 2009. Average interest bearing liabilities increased $128.1 million, or 5.6%, during the same period. The net interest margin (tax equivalent basis), expressed as a percentage of average earning assets, increased from 3.18% in the first quarter of 2008 to 3.37% in the first quarter of 2009. The average tax-equivalent yield on earning assets decreased from 6.28%, in the first quarter of 2008 to 5.27%, or 101 basis points, in the first quarter of 2009. At the same time, however, the cost of funds on interest-bearing liabilities decreased from 3.64% to 2.25%, or 139 basis points. The interest income produced from the growth in average earning assets more than offset the cost of funding that growth in deposit and other balances. Additionally, the general decrease in interest rates lowered interest expense to a greater degree than it reduced interest income.
(1) Interest income from loans is shown on a tax equivalent basis as discussed below and includes fees of $864,000 and $956,000 for the first quarter of 2009 and 2008, respectively. Non-accrual loans are included in the above stated average balances.
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