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(NASDAQ:OSBC) | Exhibit 99.1 | |
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Contact: | J. Douglas Cheatham | For Immediate Release |
| Chief Financial Officer | January 25, 2017 |
| (630) 906-5484 |
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Old Second Reports Fourth Quarter 2016 Net Income of $5.0 million
AURORA, IL, January 25, 2017 – Old Second Bancorp, Inc. (the “Company” or “Old Second”) (NASDAQ: OSBC), parent company of Old Second National Bank (the “Bank”), today announced financial results for the fourth quarter of 2016 and the year ended December 31, 2016. The Company reported net income of $5.0 million for the fourth quarter of 2016, compared to net income of $3.8 million in the fourth quarter of 2015. The Company’s net income available to common stockholders was $5.0 million, or $0.17 per diluted share, for the fourth quarter of 2016, as compared to $3.8 million, or $0.13 per diluted share, in the fourth quarter of 2015. For the year ended December 31, 2016, net income available to common stockholders was $15.7 million, or $0.53 per diluted share, as compared to $13.5 million, or $0.46 per diluted share for the year ended December 31, 2015.
Operating Results
· | On January 17, 2017, the Company’s Board of Directors declared a cash dividend of 1 cent per share payable on February 6, 2017, to stockholders of record as of January 27, 2017. |
· | Fourth quarter 2016 net income available to common stockholders was $5.0 million, reflecting an increase of $1.2 million, or 30.9%, from the fourth quarter of 2015 and an increase of $1.5 million, or 43.4%, from the third quarter of 2016. |
· | Net interest and dividend income totaled $17.5 million for the fourth quarter of 2016 and reflects an increase of $2.8 million, or 18.7%, over the fourth quarter of 2015. Net interest and dividend income for the fourth quarter of 2016 reflected an increase of $2.2 million, or 14.1%, from the $15.3 million recorded in the third quarter of 2016. Net interest income was favorably impacted in the fourth quarter of 2016 primarily due to the Company’s acquisition of the Chicago branch of Talmer Bank and Trust, which closed on October 28, 2016. The Talmer branch purchase resulted in an increase to the loan portfolio of approximately $221.0 million, and purchase accounting accretion income realized in the fourth quarter totaled $604,000. |
· | Provision for loan and lease losses expense of $750,000 was recorded in the fourth quarter of 2016; no provision or release of loan loss reserves was recorded in the fourth quarter of 2015 or the third quarter of 2016. This fourth quarter provision was the only provision recorded in 2016, and compares to a provision release of $4.4 million during 2015. |
· | Noninterest income was $8.4 million for the fourth quarter of 2016, which reflects growth of $1.0 million, or 13.8%, over the fourth quarter of 2015 primarily due to increases in residential mortgage banking income. Noninterest income for the fourth quarter of 2016 was $1.8 million, or 27.8%, in excess of the third quarter of 2016, primarily due to net losses on security sales incurred in the third quarter in anticipation of the funding requirements for the Company’s acquisition of the Talmer branch. |
· | Noninterest expense of $17.2 million for the fourth quarter of 2016 increased $1.1 million, or 6.9%, from the fourth quarter of 2015, driven by the costs incurred related to the Talmer branch acquisition, such as increases |
1
in compensation costs due to the addition of 14 employees, facilities costs associated with the new branch, and acquisition related costs, primarily in the form of legal fees. Noninterest expense was $633,000, or 3.8% higher in the fourth quarter of 2016 as compared to the third quarter of 2016. |
· | The Company completed a debt retirement and simultaneous senior debt offering in the fourth quarter of 2016. Subordinated debt of $45.0 million and $500,000 of senior debt outstanding were paid off with the proceeds of a $45.0 million senior notes issuance and cash on hand. The senior notes mature in ten years, and terms include interest payable semiannually at 5.75% for five years. Beginning December 2021, the senior debt will pay interest at a floating rate, with interest payable quarterly at three month LIBOR plus 385 basis points. |
· | Excluding the Talmer branch acquisition which occurred in October 2016, as discussed above, fourth quarter net income available to common stockholders was $4.6 million, or $0.16 per diluted share. For the year ended December 31, 2016, net income available to common stockholders excluding the effect of the Talmer acquisition was $17.0 million, or $0.57 per diluted share. |
Capital Ratios
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| December 31, |
| September 30, |
| December 31, | |||
| 2016 |
| 2016 |
| 2015 | |||
The Bank's common equity tier 1 capital ratio | 12.55 | % |
| 15.22 | % |
| 14.10 | % |
The Company's common equity tier 1 capital ratio | 8.77 | % |
| 10.68 | % |
| 10.55 | % |
The Bank's total capital ratio | 13.47 | % |
| 16.24 | % |
| 15.23 | % |
The Company's total capital ratio | 12.30 | % |
| 15.42 | % |
| 15.56 | % |
The Company's tier 1 leverage ratio | 8.90 | % |
| 9.32 | % |
| 8.69 | % |
· | The ratios shown above exceed levels required to be considered “well capitalized.” |
Asset Quality & Earning Assets
· | Nonperforming loans ended at $16.0 million at December 31, 2016, compared to $14.6 million at December 31, 2015, and $17.4 million at September 30, 2016. Credit metrics continue to be relatively stable regarding nonperforming loan levels, and management is carefully monitoring loans considered to be in a classified status. Nonperforming loans as a percent of total loans decreased to 1.1% as of December 31, 2016, from 1.4% as of September 30, 2016, and 1.3% as of December 31, 2015. |
· | OREO assets decreased in the fourth quarter to end at $11.9 million on December 31, 2016, compared to $19.1 million at December 31, 2015, and $14.1 million at September 30, 2016. Valuation writedowns continued in the fourth quarter of 2016 with a quarterly expense of $265,000 compared to $251,000 in the fourth quarter of 2015 and $365,000 in the third quarter of 2016. Nonperforming assets as a percent of total loans plus OREO decreased to 1.9% as of December 31, 2016, as compared to 2.6% as of September 30, 2016 and 2.9% as of December 31, 2015. |
· | Total loans at December 31, 2016, were $1.48 billion, reflecting an increase of $345.1 million when compared to December 31, 2015; this growth was driven primarily by the $221.0 million acquired with the Talmer branch purchase, and an additional legacy portfolio growth of $124.1 million, primarily in the commercial and industrial loan portfolio. Average loans (including loans held-for-sale) for the fourth quarter of 2016 were $1.39 billion, reflecting an increase of $250.2 million from the fourth quarter of 2015 and an increase of $199.0 million when compared to the third quarter of 2016. |
· | As of December 31, 2016, available-for-sale securities at fair value totaled $531.8 million, as compared to $531.1 million at September 30, 2016. The securities portfolio changed significantly during 2016, as all securities were moved to an available for sale status in the second quarter of 2016, which allowed the sale of investments to acquire funds used for the Talmer branch acquisition in the fourth quarter of 2016. Net losses of $2.2 million pretax on the sale of securities were realized for the full year 2016 to prepare for the branch acquisition; however, the Talmer loans acquired are anticipated to enhance net interest margin in the next year. |
2
Net Interest Income1
ANALYSIS OF AVERAGE BALANCES,
TAX EQUIVALENT INTEREST AND RATES
(Dollars in thousands - unaudited)
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| Quarters Ended | ||||||||||||||||||||||
| December 31, 2016 |
| September 30, 2016 |
| December 31, 2015 | ||||||||||||||||||
| Average |
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| Rate |
| Average |
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| Rate |
| Average |
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| Rate | |||
| Balance |
| Interest |
| % |
| Balance |
| Interest |
| % |
| Balance |
| Interest |
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Assets |
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Interest bearing deposits with financial institutions | $ | 54,865 |
| $ | 71 |
| 0.51 |
| $ | 50,054 |
| $ | 64 |
| 0.50 |
| $ | 13,859 |
| $ | 12 |
| 0.34 |
Securities: |
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Taxable |
| 495,687 |
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| 3,318 |
| 2.68 |
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| 624,844 |
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| 3,954 |
| 2.53 |
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| 674,690 |
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| 3,819 |
| 2.26 |
Non-taxable (TE) |
| 37,546 |
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| 404 |
| 4.30 |
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| 35,046 |
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| 277 |
| 3.16 |
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| 17,090 |
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| 179 |
| 4.19 |
Total securities |
| 533,233 |
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| 3,722 |
| 2.79 |
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| 659,890 |
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| 4,231 |
| 2.56 |
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| 691,780 |
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| 3,998 |
| 2.31 |
Dividends from FHLBC and Federal Reserve stock |
| 7,911 |
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| 82 |
| 4.15 |
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| 7,918 |
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| 83 |
| 4.19 |
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| 8,451 |
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| 76 |
| 3.60 |
Loans and loans held-for-sale1 |
| 1,390,537 |
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| 16,485 |
| 4.64 |
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| 1,191,574 |
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| 13,567 |
| 4.46 |
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| 1,140,308 |
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| 13,057 |
| 4.48 |
Total interest earning assets |
| 1,986,546 |
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| 20,360 |
| 4.03 |
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| 1,909,436 |
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| 17,945 |
| 3.70 |
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| 1,854,398 |
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| 17,143 |
| 3.64 |
Cash and due from banks |
| 28,928 |
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| - |
| - |
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| 41,344 |
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| - |
| - |
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| 28,781 |
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| - |
| - |
Allowance for loan losses |
| (15,388) |
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| - |
| - |
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| (15,767) |
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| - |
| - |
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| (16,598) |
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| - |
| - |
Other noninterest bearing assets |
| 197,072 |
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| - |
| - |
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| 190,213 |
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| - |
| - |
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| 202,015 |
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| - |
| - |
Total assets | $ | 2,197,158 |
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| $ | 2,125,226 |
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| $ | 2,068,596 |
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Liabilities and Stockholders' Equity |
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NOW accounts | $ | 405,338 |
| $ | 97 |
| 0.10 |
| $ | 384,588 |
| $ | 89 |
| 0.09 |
| $ | 360,786 |
| $ | 79 |
| 0.09 |
Money market accounts |
| 274,423 |
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| 76 |
| 0.11 |
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| 265,135 |
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| 64 |
| 0.10 |
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| 284,209 |
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| 70 |
| 0.10 |
Savings accounts |
| 253,461 |
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| 39 |
| 0.06 |
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| 257,808 |
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| 40 |
| 0.06 |
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| 248,952 |
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| 38 |
| 0.06 |
Time deposits |
| 404,507 |
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| 1,018 |
| 1.00 |
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| 401,999 |
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| 931 |
| 0.92 |
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| 409,353 |
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| 824 |
| 0.80 |
Interest bearing deposits |
| 1,337,729 |
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| 1,230 |
| 0.37 |
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| 1,309,530 |
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| 1,124 |
| 0.34 |
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| 1,303,300 |
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| 1,011 |
| 0.31 |
Securities sold under repurchase agreements |
| 31,019 |
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| 1 |
| 0.01 |
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| 31,892 |
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| 1 |
| 0.01 |
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| 26,569 |
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| 1 |
| 0.01 |
Other short-term borrowings |
| 27,940 |
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| 36 |
| 0.50 |
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| 22,174 |
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| 22 |
| 0.39 |
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| 24,837 |
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| 10 |
| 0.16 |
Junior subordinated debentures |
| 57,585 |
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| 1,083 |
| 7.52 |
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| 57,573 |
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| 1,084 |
| 7.53 |
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| 57,538 |
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| 1,072 |
| 7.45 |
Senior notes |
| 8,155 |
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| 112 |
| 5.49 |
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| - |
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| - |
| - |
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| - |
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| - |
| - |
Subordinated debt |
| 36,685 |
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| 222 |
| 2.37 |
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| 45,000 |
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| 245 |
| 2.13 |
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| 45,000 |
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| 210 |
| 1.83 |
Notes payable and other borrowings |
| 408 |
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| 2 |
| 1.92 |
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| 500 |
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| 2 |
| 1.57 |
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| 500 |
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| 2 |
| 1.57 |
Total interest bearing liabilities |
| 1,499,521 |
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| 2,686 |
| 0.68 |
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| 1,466,669 |
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| 2,478 |
| 0.67 |
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| 1,457,744 |
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| 2,306 |
| 0.63 |
Noninterest bearing deposits |
| 510,161 |
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| - |
| - |
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| 472,599 |
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| - |
| - |
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| 445,083 |
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| - |
| - |
Other liabilities |
| 12,609 |
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| - |
| - |
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| 15,539 |
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| - |
| - |
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| 10,488 |
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| - |
| - |
Stockholders' equity |
| 174,867 |
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| - |
| - |
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| 170,419 |
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| - |
| - |
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| 155,281 |
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| - |
| - |
Total liabilities and stockholders' equity | $ | 2,197,158 |
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| $ | 2,125,226 |
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| $ | 2,068,596 |
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Net interest income (TE) |
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| $ | 17,674 |
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| $ | 15,467 |
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| $ | 14,837 |
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Net interest income (TE) |
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to total earning assets |
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| 3.54 |
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| 3.22 |
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| 3.17 |
Interest bearing liabilities to earning assets |
| 75.48 | % |
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| 76.81 | % |
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| 78.61 | % |
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1 Interest income from loans is shown on a tax equivalent basis as discussed in the table on page 13 and includes fees of $731,000, $700,000 and $430,000 for the fourth quarter of 2016, the third quarter of 2016 and the fourth quarter of 2015, respectively. Nonaccrual loans are included in the above stated average balances. Tax equivalent basis is calculated using a marginal tax rate of 35%.
Tax equivalent interest and dividend income increased $3.2 million for the quarter ended December 31, 2016, as compared to the quarter ended December 31, 2015. Quarterly average earning assets increased $132.1 million from the last quarter of 2015 to a total of $1.99 billion for the period ended December 31, 2016, while yield on earning assets increased 39 basis points. Year over year fourth quarter average loans, including loans held-for-sale, increased $250.2 million. This growth was primarily due to the Talmer branch acquisition, which resulted in $221.0 of purchased loans. In addition, loan growth, driven by commercial portfolio originations, occurred in 2016. Lower yielding securities were sold in the third quarter of 2016 in preparation for the Talmer branch acquisition, resulting in an increase of 48 basis points in the year over year period for total securities. These security sales drove a 23 basis point increase for total securities in the fourth quarter of 2016 as compared to the third quarter of 2016. The cost of funds for the fourth quarter of 2016 increased by 5 basis points from the fourth quarter of 2015 and by 1 basis point from the third quarter of 2016. Total average interest bearing liabilities have increased in all periods presented due to growth in NOW accounts, and to a lesser extent, savings accounts and securities sold under repurchase agreements. For the quarter ended December 31, 2016, average other short-term borrowings increased by $3.1 million compared to the fourth quarter of 2015 and by $5.8 million as compared to the quarter ended September 30, 2016.
3
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| 4th Quarter 2016 |
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| Three Months Ended |
| Percent Change From |
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(dollars in thousands) |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
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| 2016 |
| 2016 |
| 2015 |
| 2016 |
| 2015 |
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Trust income |
| $ | 1,396 |
| $ | 1,403 |
| $ | 1,427 |
| (0.5) |
| (2.2) |
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Service charges on deposits |
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| 1,723 |
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| 1,756 |
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| 1,734 |
| (1.9) |
| (0.6) |
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Residential mortgage banking revenue |
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| 3,001 |
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| 2,789 |
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| 1,759 |
| 7.6 |
| 70.6 |
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Securities loss, net |
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| (193) |
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| (1,959) |
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| - |
| N/M |
| N/M |
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Increase in cash surrender value of bank-owned life insurance |
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| 296 |
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| 383 |
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| 381 |
| (22.7) |
| (22.3) |
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Debit card interchange income |
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| 1,018 |
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| 1,013 |
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| 1,015 |
| 0.5 |
| 0.3 |
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Loss on disposal and transfer of fixed assets |
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| - |
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| - |
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| 24 |
| N/M |
| N/M |
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Other income |
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| 1,187 |
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| 1,209 |
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| 1,069 |
| (1.8) |
| 11.0 |
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Total noninterest income |
| $ | 8,428 |
| $ | 6,594 |
| $ | 7,409 |
| 27.8 |
| 13.8 |
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N/M - Not Meaningful
Of the noninterest income categories, residential mortgage banking income experienced the largest fluctuations on both a linked quarter and year over year basis, as shown above, primarily due to increases in the net gains on sales of mortgage loans, as well as the variability of mortgage servicing rights valuations. Finally, in the third quarter of 2016, net security losses of $2.0 million were realized to satisfy anticipated funding requirements for the Talmer branch acquisition. Excluding these items, the three quarters presented have minimal variation.
Noninterest Expense
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| 4th Quarter 2016 |
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| Three Months Ended |
| Percent Change From |
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(dollars in thousands) |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
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| 2016 |
| 2016 |
| 2015 |
| 2016 |
| 2015 |
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Salaries |
| $ | 7,718 |
| $ | 7,205 |
| $ | 6,881 |
| 7.1 |
| 12.2 |
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Bonus |
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| 339 |
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| 521 |
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| 211 |
| (34.9) |
| 60.7 |
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Benefits and other |
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| 1,323 |
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| 1,288 |
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| 1,305 |
| 2.7 |
| 1.4 |
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Total salaries and employee benefits |
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| 9,380 |
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| 9,014 |
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| 8,397 |
| 4.1 |
| 11.7 |
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Occupancy expense, net |
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| 1,254 |
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| 1,120 |
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| 1,228 |
| 12.0 |
| 2.1 |
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Furniture and equipment expense |
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| 1,267 |
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| 1,144 |
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| 1,254 |
| 10.8 |
| 1.0 |
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FDIC insurance |
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| 72 |
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| 228 |
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| 311 |
| (68.4) |
| (76.8) |
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General bank insurance |
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| 270 |
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| 269 |
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| 298 |
| 0.4 |
| (9.4) |
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Amortization of core deposit intangible asset |
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| 16 |
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| - |
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| - |
| N/M |
| N/M |
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Advertising expense |
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| 421 |
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| 430 |
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| 348 |
| (2.1) |
| 21.0 |
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Debit card interchange expense |
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| 269 |
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| 363 |
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| 383 |
| (25.9) |
| (29.8) |
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Legal fees |
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| 206 |
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| 242 |
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| 253 |
| (14.9) |
| (18.6) |
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Other real estate owned expense, net |
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| 700 |
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| 426 |
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| 474 |
| 64.3 |
| 47.7 |
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Other expense |
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| 3,360 |
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| 3,346 |
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| 3,151 |
| 0.4 |
| 6.6 |
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Total noninterest expense |
| $ | 17,215 |
| $ | 16,582 |
| $ | 16,097 |
| 3.8 |
| 6.9 |
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Efficiency ratio (defined below) |
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| 61.78 | % |
| 66.21 | % |
| 69.59 | % |
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N/M - Not Meaningful
The efficiency ratio shown in the table above is calculated as noninterest expense, excluding OREO expenses, divided by the sum of net interest income on a fully tax equivalent basis, total noninterest income less net gains and losses on securities and includes a tax equivalent adjustment on the increase in cash surrender value of bank-owned life insurance.
4
Noninterest expense for the fourth quarter of 2016 increased $1.1 million, or 6.9%, year over year and $633,000, or 3.8%, on a linked quarter basis. These increases were driven by the additional salaries and employee benefit costs primarily due to 14 new employees from the Talmer branch acquisition. Occupancy expense and furniture and equipment costs also trended higher due to the branch acquisition, and one-time acquisition costs of $269,000 were recorded for the year to date 2016 period. Finally, OREO expenses were $226,000 higher in the fourth quarter of 2016 as compared to the like quarter of 2015, and $274,000 higher as compared to the third quarter of 2016, as the OREO portfolio continues to be aggressively liquidated. Partially offsetting these increases was FDIC insurance expense, which was reduced in the fourth quarter of 2016 to fully reflect the FDIC small bank rate change effective July 1, 2016.
Earning Assets
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| December 31, 2016 |
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| Major Classification of Loans as of |
| Percent Change From |
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(dollars in thousands) |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
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| 2016 |
| 2016 |
| 2015 |
| 2016 |
| 2015 |
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Commercial |
| $ | 228,113 |
| $ | 136,819 |
| $ | 115,603 |
| 66.7 |
| 97.3 |
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Real estate - commercial |
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| 736,247 |
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| 617,280 |
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| 605,721 |
| 19.3 |
| 21.5 |
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Real estate - construction |
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| 64,720 |
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| 28,786 |
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| 19,806 |
| 124.8 |
| 226.8 |
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Real estate - residential |
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| 377,851 |
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| 357,846 |
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| 351,007 |
| 5.6 |
| 7.6 |
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Consumer |
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| 3,237 |
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| 3,325 |
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| 4,216 |
| (2.6) |
| (23.2) |
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Overdraft |
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| 436 |
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| 403 |
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| 483 |
| 8.2 |
| (9.7) |
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Lease financing receivables |
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| 55,451 |
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| 47,215 |
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| 25,712 |
| 17.4 |
| 115.7 |
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Other |
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| 11,537 |
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| 10,114 |
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| 10,130 |
| 14.1 |
| 13.9 |
|
|
|
| 1,477,592 |
|
| 1,201,788 |
|
| 1,132,678 |
| 22.9 |
| 30.5 |
|
Net deferred loan costs |
|
| 1,217 |
|
| 1,064 |
|
| 1,037 |
| 14.4 |
| 17.4 |
|
Total loans |
| $ | 1,478,809 |
| $ | 1,202,852 |
| $ | 1,133,715 |
| 22.9 |
| 30.4 |
|
Loans listed above were reclassified for all periods presented between the classifications listed to align with credit quality disclosures for the year ended December 31, 2016.
Total loans increased by $345.1 million at the end of the fourth quarter of 2016 as compared to year end 2015, and $276.0 million as compared to the prior quarter end. The Talmer branch acquisition of $221.0 million of new loans, coupled with the growth experienced during the year, primarily in commercial and industrial loans, resulted in the favorable variance to prior periods. Modest growth was also experienced in the real estate-commercial, real estate-construction, and lease financing receivables portfolios for the year to date and year over year periods, excluding the impact of the Talmer acquisition.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 2016 |
| ||
|
| Securities Portfolio As of |
| Percent Change From |
| |||||||||
(dollars in thousands) |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| |||
|
| 2016 |
| 2016 |
| 2015 |
| 2016 |
| 2015 |
| |||
Securities available-for-sale, at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury |
| $ | - |
| $ | - |
| $ | 1,509 |
| N/M |
| N/M |
|
U.S. government agencies |
|
| - |
|
| 1,503 |
|
| 1,556 |
| N/M |
| N/M |
|
U.S. government agency mortgage-backed |
|
| 41,534 |
|
| 43,723 |
|
| 1,996 |
| (5.0) |
| 1,980.9 |
|
States and political subdivisions |
|
| 68,703 |
|
| 22,254 |
|
| 30,526 |
| 208.7 |
| 125.1 |
|
Corporate bonds |
|
| 10,630 |
|
| 10,730 |
|
| 29,400 |
| (0.9) |
| (63.8) |
|
Collateralized mortgage obligations |
|
| 170,927 |
|
| 204,390 |
|
| 66,920 |
| (16.4) |
| 155.4 |
|
Asset-backed securities |
|
| 138,407 |
|
| 140,173 |
|
| 231,908 |
| (1.3) |
| (40.3) |
|
Collateralized loan obligations |
|
| 101,637 |
|
| 108,284 |
|
| 92,251 |
| (6.1) |
| 10.2 |
|
Total securities available-for-sale |
| $ | 531,838 |
| $ | 531,057 |
| $ | 456,066 |
| 0.1 |
| 16.6 |
|
Securities held-to-maturity, at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government agency mortgage-backed |
| $ | - |
| $ | - |
| $ | 36,505 |
| N/M |
| N/M |
|
Collateralized mortgage obligations |
|
| - |
|
| - |
|
| 211,241 |
| N/M |
| N/M |
|
Total securities held-to-maturity |
| $ | - |
| $ | - |
| $ | 247,746 |
| N/M |
| N/M |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities |
| $ | 531,838 |
| $ | 531,057 |
| $ | 703,812 |
| 0.1 |
| (24.4) |
|
N/M - Not Meaningful
5
The investment portfolio ended the fourth quarter of 2016 at $531.8 million, a decrease of $172.0 million from $703.8 million at December 31, 2015, but level with the $531.1 million as of September 30, 2016. The decline during 2016 is due to security sales driven by the funding needs for the Talmer branch acquisition, which resulted in pretax net losses of $2.2 million. During the fourth quarter of 2016, select collateralized mortgage obligations and asset-backed securities were liquidated to allow for portfolio repositioning in favor of high quality state and municipal securities. The securities held-to-maturity portfolio was reclassified to available-for-sale in the second quarter of 2016, to allow for portfolio restructuring and to fund loan growth. This reclassification of $244.8 million was approved by the Board of Directors, and will preclude any holdings of securities held-to-maturity for a two-year period.
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| December 31, 2016 | ||
|
| As of |
| Percent Change From | |||||||||
(dollars in thousands) |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, | |||
|
| 2016 |
| 2016 |
| 2015 |
| 2016 |
| 2015 | |||
Nonaccrual loans |
| $ | 15,283 |
| $ | 16,736 |
| $ | 14,389 |
| (8.7) |
| 6.2 |
Nonperforming troubled debt restructured loans accruing interest |
|
| 718 |
|
| 161 |
|
| 165 |
| 346.0 |
| 335.2 |
Loans past due 90 days or more and still accruing interest |
|
| - |
|
| 483 |
|
| 65 |
| (100.0) |
| (100.0) |
Total nonperforming loans |
|
| 16,001 |
|
| 17,380 |
|
| 14,619 |
| (7.9) |
| 9.5 |
Other real estate owned |
|
| 11,916 |
|
| 14,144 |
|
| 19,141 |
| (15.8) |
| (37.7) |
Total nonperforming assets |
| $ | 27,917 |
| $ | 31,524 |
| $ | 33,760 |
| (11.4) |
| (17.3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-89 days past due loans |
| $ | 5,139 |
| $ | 3,386 |
| $ | 3,652 |
|
|
|
|
Nonaccrual loans to total loans |
|
| 1.0 | % |
| 1.4 | % |
| 1.3 | % |
|
|
|
Nonperforming loans to total loans |
|
| 1.1 | % |
| 1.4 | % |
| 1.3 | % |
|
|
|
Nonperforming assets to total loans plus OREO |
|
| 1.9 | % |
| 2.6 | % |
| 2.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
| $ | 16,158 |
| $ | 14,983 |
| $ | 16,223 |
|
|
|
|
Allowance for loan losses to loans |
|
| 1.1 | % |
| 1.3 | % |
| 1.4 | % |
|
|
|
Allowance for loan losses to nonaccrual loans |
|
| 105.7 | % |
| 89.5 | % |
| 112.7 | % |
|
|
|
Nonperforming loans consist of nonaccrual loans, nonperforming restructured accruing loans and loans 90 days or greater past due but still accruing. Nonperforming loans to total loans of 1.1% decreased in the fourth quarter of 2016, as compared to the third quarter of 2016 and the fourth quarter of 2015, primarily due to the Talmer branch loan purchase. Nonperforming assets to total loans plus OREO also reflected a reduction due to the Talmer branch purchase, as well as the continued OREO liquidations and write-downs recorded in 2016. Finally, the allowance for loan losses to loans was 1.1% as of December 31, 2016, but the allowance excludes the purchase accounting credit marks recorded on the Talmer branch purchased loans.
Classified loans include nonaccrual, performing troubled debt restructurings and all other loans considered substandard, as shown below. Classified loans increased by $1.3 million, or 5.0%, from year end 2015; this increase is primarily due to additional commercial loans becoming substandard. Management review of the loan portfolio concluded that a loan loss provision of $750,000 was appropriate in the fourth quarter of 2016; no other loan loss provision expense was recorded in 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 2016 |
| ||
|
| Classified loans as of |
| Percent Change From |
| |||||||||
(dollars in thousands) |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| |||
|
| 2016 |
| 2016 |
| 2015 |
| 2016 |
| 2015 |
| |||
Real estate-construction |
| $ | 458 |
| $ | 254 |
| $ | 83 |
| 80.3 |
| 451.8 |
|
Real estate-residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor |
|
| 1,096 |
|
| 1,171 |
|
| 1,136 |
| (6.4) |
| (3.5) |
|
Owner occupied |
|
| 7,225 |
|
| 6,432 |
|
| 7,079 |
| 12.3 |
| 2.1 |
|
Revolving and junior liens |
|
| 2,340 |
|
| 3,078 |
|
| 3,055 |
| (24.0) |
| (23.4) |
|
Real estate-commercial, nonfarm |
|
| 9,946 |
|
| 13,220 |
|
| 10,568 |
| (24.8) |
| (5.9) |
|
Real estate-commercial, farm |
|
| 1,782 |
|
| 1,801 |
|
| 1,272 |
| (1.1) |
| 40.1 |
|
Commercial, including Leases |
|
| 3,636 |
|
| 2,302 |
|
| 2,029 |
| 57.9 |
| 79.2 |
|
Other |
|
| 1 |
|
| 1 |
|
| 1 |
| - |
| - |
|
Total classified loans |
| $ | 26,484 |
| $ | 28,259 |
| $ | 25,223 |
| (6.3) |
| 5.0 |
|
6
Net Charge-off Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Charge-offs, net of recoveries | Three Months Ended | |||||||||||||
(dollars in thousands) | December 31, |
| % of |
| September 30, |
| % of |
| December 31, |
| % of | |||
| 2016 |
| Total |
| 2016 |
| Total |
| 2015 |
| Total | |||
Real estate-construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilder | $ | (5) |
| 1.2 |
| $ | (7) |
| (0.8) |
| $ | (3) |
| (0.8) |
Land |
| - |
| - |
|
| (2) |
| (0.2) |
|
| (2) |
| (0.5) |
Commercial speculative |
| - |
| - |
|
| - |
| - |
|
| (1) |
| (0.3) |
All other |
| (6) |
| 1.4 |
|
| (42) |
| (5.0) |
|
| - |
| - |
Total real estate-construction |
| (11) |
| 2.6 |
|
| (51) |
| (6.0) |
|
| (6) |
| (1.6) |
Real estate-residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor |
| 91 |
| (21.4) |
|
| (16) |
| (1.9) |
|
| 97 |
| 24.9 |
Owner occupied |
| (58) |
| 13.6 |
|
| (75) |
| (8.9) |
|
| (91) |
| (23.3) |
Revolving and junior liens |
| (231) |
| 54.4 |
|
| 112 |
| 13.3 |
|
| 258 |
| 66.2 |
Total real estate-residential |
| (198) |
| 46.6 |
|
| 21 |
| 2.5 |
|
| 264 |
| 67.8 |
Real estate-commercial, nonfarm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner general purpose |
| (1) |
| 0.2 |
|
| - |
| - |
|
| (2) |
| (0.5) |
Owner special purpose |
| (5) |
| 1.2 |
|
| (3) |
| (0.4) |
|
| (4) |
| (1.0) |
Non-owner general purpose |
| 56 |
| (13.2) |
|
| 132 |
| 15.7 |
|
| 87 |
| 22.3 |
Non-owner special purpose |
| - |
| - |
|
| 636 |
| 75.8 |
|
| - |
| - |
Retail properties |
| (286) |
| 67.3 |
|
| - |
| - |
|
| - |
| - |
Total real estate-commercial, nonfarm |
| (236) |
| 55.5 |
|
| 765 |
| 91.1 |
|
| 81 |
| 20.8 |
Commercial, including Leases |
| (5) |
| 1.2 |
|
| 66 |
| 7.9 |
|
| (12) |
| (3.1) |
Other |
| 25 |
| (5.9) |
|
| 38 |
| 4.5 |
|
| 63 |
| 16.1 |
Net charge-offs / (recoveries) | $ | (425) |
| 100.0 |
| $ | 839 |
| 100.0 |
| $ | 390 |
| 100.0 |
Gross charge-offs for the quarter ended December 31, 2016, were $682,000 compared to $788,000 for the quarter ended December 31, 2015. Gross recoveries for the quarter ended December 31, 2016, were $1.1 million compared to $398,000 for the quarter ended December 31, 2015. The increase in the rate of recoveries is indicative of the continued aggressive efforts by management to effectively manage and resolve prior charge-offs.
Deposits
Total deposits were $1.87 billion at December 31, 2016, which reflects an increase from total deposits of $1.76 billion at December 31, 2015. Demand, savings, and NOW balances increased by $117.7 million during 2016 while money market deposits declined by $4.4 million and time deposits or certificates of deposit reflect a decrease of $5.6 million for 2016. The deposit growth was driven by the Talmer branch acquisition, which resulted in $48.9 million of additional deposits. Demand, money market and NOW accounts totaled $46.8 million of the purchased deposits, and time deposits totaled $2.1 million.
Borrowings
The Bank’s borrowing at the Federal Home Loan Bank of Chicago (the “FHLBC”) requires the Bank to be a member and invest in the stock of the FHLBC. As of December 31, 2016, the Bank had $70.0 million in advances outstanding under the FHLBC as compared to $15.0 million in advances at December 31, 2015.
In addition to the subordinated debt retirement and senior notes issuance in the fourth quarter of 2016 as discussed in the “Operating Results” on page 2, the Company is also indebted on $57.6 million of junior subordinated debentures related to the trust preferred securities issued by its two statutory trust subsidiaries, Old Second Capital Trust I and Old Second Capital Trust II. The carrying value was reduced by the amortization of the issuance costs in 2016 after adopting ASU 2015-03 applied on a retrospective basis.
7
Capital
|
|
|
|
|
|
|
|
|
| December 31, |
| September 30, |
| December 31, | |||
| 2016 |
| 2016 |
| 2015 | |||
The Company's common equity tier 1 capital ratio | 8.77 | % |
| 10.68 | % |
| 10.55 | % |
(minimum 4.5% for adequately capitalized) |
|
|
|
|
|
|
|
|
The Company's tier 1 capital ratio | 10.90 | % |
| 13.25 | % |
| 12.30 | % |
(minimum 6.0% for adequately capitalized) |
|
|
|
|
|
|
|
|
The Company's total capital ratio | 12.30 | % |
| 15.42 | % |
| 15.56 | % |
(minimum 8.0% for adequately capitalized) |
|
|
|
|
|
|
|
|
The Company's tier 1 leverage ratio | 8.90 | % |
| 9.32 | % |
| 8.69 | % |
(minimum 4.0% for adequately capitalized) |
|
|
|
|
|
|
|
|
As of December 31, 2016, the Bank’s common equity tier 1 capital ratio of 12.55% and total capital ratio of 13.47% exceeded the minimum capital ratios to be deemed “well capitalized.”
Non-GAAP Presentations: Management has historically disclosed certain non-GAAP ratios to evaluate and measure the Company’s performance, including a net interest margin calculation. The net interest margin is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Management believes this measure provides investors with information regarding balance sheet profitability. Consistent with industry practice, management also disclosed other non-GAAP measures in the discussion above and in the following tables. The efficiency ratio is discussed in the noninterest expense presentation on page 4. The tables on page 13 provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
Forward-Looking Statements: This report may contain forward-looking statements. Forward looking statements are identifiable by the inclusion of such qualifications as expects, intends, believes, may, likely or other indications that the particular statements are not based upon facts but are rather based upon the Company’s beliefs as of the date of this release. Actual events and results may differ significantly from those described in such forward-looking statements, due to changes in the economy, interest rates or other factors. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. For additional information concerning the Company and its business, including other factors that could materially affect the Company’s financial results or cause actual results to differ substantially from those discussed or implied in forward looking statements contained in this release, please review our filings with the Securities and Exchange Commission.
Conference Call
The Company will also host an earnings call on Thursday, January 26, 2017, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). Investors may listen to the Company’s earnings call via telephone by dialing 877-407-8035. Investors should call into the dial-in number set forth above at least 10 minutes prior to the scheduled start of the call.
A replay of the earnings call will be available until 11:59 p.m. Eastern Time (10:59 p.m. Central Time) on February 2, 2017, by dialing 877-481-4010, using Conference ID: 10190.
8
Old Second Bancorp, Inc. and Subsidiaries
(In thousands)
|
|
|
|
|
|
|
|
| (unaudited) |
|
|
| |
|
| December 31, |
| December 31, | ||
|
| 2016 |
| 2015 | ||
Assets |
|
|
|
|
|
|
Cash and due from banks |
| $ | 33,805 |
| $ | 26,975 |
Interest bearing deposits with financial institutions |
|
| 13,529 |
|
| 13,363 |
Cash and cash equivalents |
|
| 47,334 |
|
| 40,338 |
Securities available-for-sale, at fair value |
|
| 531,838 |
|
| 456,066 |
Securities held-to-maturity, at amortized cost |
|
| - |
|
| 247,746 |
Federal Home Loan Bank and Federal Reserve Bank stock |
|
| 7,918 |
|
| 8,518 |
Loans held-for-sale |
|
| 4,918 |
|
| 2,849 |
Loans |
|
| 1,478,809 |
|
| 1,133,715 |
Less: allowance for loan losses |
|
| 16,158 |
|
| 16,223 |
Net loans |
|
| 1,462,651 |
|
| 1,117,492 |
Premises and equipment, net |
|
| 38,977 |
|
| 39,612 |
Other real estate owned |
|
| 11,916 |
|
| 19,141 |
Mortgage servicing rights, net |
|
| 6,489 |
|
| 5,847 |
Goodwill and core deposit intangible |
|
| 9,018 |
|
| - |
Bank-owned life insurance (BOLI) |
|
| 60,332 |
|
| 59,049 |
Deferred tax assets, net |
|
| 53,464 |
|
| 64,552 |
Other assets |
|
| 16,333 |
|
| 15,818 |
Total assets |
| $ | 2,251,188 |
| $ | 2,077,028 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest bearing demand |
| $ | 513,688 |
| $ | 442,639 |
Interest bearing: |
|
|
|
|
|
|
Savings, NOW, and money market |
|
| 950,849 |
|
| 908,598 |
Time |
|
| 402,248 |
|
| 407,849 |
Total deposits |
|
| 1,866,785 |
|
| 1,759,086 |
Securities sold under repurchase agreements |
|
| 25,715 |
|
| 34,070 |
Other short-term borrowings |
|
| 70,000 |
|
| 15,000 |
Junior subordinated debentures |
|
| 57,591 |
|
| 57,543 |
Senior Notes |
|
| 43,998 |
|
| - |
Subordinated debt |
|
| - |
|
| 45,000 |
Notes payable and other borrowings |
|
| - |
|
| 500 |
Other liabilities |
|
| 11,889 |
|
| 9,900 |
Total liabilities |
|
| 2,075,978 |
|
| 1,921,099 |
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
Common stock |
|
| 34,534 |
|
| 34,427 |
Additional paid-in capital |
|
| 116,653 |
|
| 115,918 |
Retained earnings |
|
| 129,005 |
|
| 114,209 |
Accumulated other comprehensive loss |
|
| (8,762) |
|
| (12,659) |
Treasury stock |
|
| (96,220) |
|
| (95,966) |
Total stockholders’ equity |
|
| 175,210 |
|
| 155,929 |
Total liabilities and stockholders’ equity |
| $ | 2,251,188 |
| $ | 2,077,028 |
9
Old Second Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (unaudited) |
| (unaudited) | ||||||||
|
| Three Months Ended |
| Year Ended | ||||||||
|
| December 31, |
| December 31, | ||||||||
|
| 2016 |
| 2015 |
| 2016 |
| 2015 | ||||
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
| $ | 16,426 |
| $ | 12,997 |
| $ | 56,019 |
| $ | 53,035 |
Loans held-for-sale |
|
| 36 |
|
| 36 |
|
| 151 |
|
| 189 |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
| 3,318 |
|
| 3,819 |
|
| 15,865 |
|
| 14,037 |
Tax exempt |
|
| 263 |
|
| 116 |
|
| 842 |
|
| 542 |
Dividends from Federal Home Loan Bank and Federal Reserve Bank stock |
|
| 82 |
|
| 76 |
|
| 333 |
|
| 306 |
Interest bearing deposits with financial institutions |
|
| 71 |
|
| 12 |
|
| 169 |
|
| 55 |
Total interest and dividend income |
|
| 20,196 |
|
| 17,056 |
|
| 73,379 |
|
| 68,164 |
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW, and money market deposits |
|
| 212 |
|
| 187 |
|
| 789 |
|
| 734 |
Time deposits |
|
| 1,018 |
|
| 824 |
|
| 3,640 |
|
| 3,201 |
Other short-term borrowings |
|
| 37 |
|
| 11 |
|
| 106 |
|
| 33 |
Junior subordinated debentures |
|
| 1,083 |
|
| 1,072 |
|
| 4,334 |
|
| 4,287 |
Senior notes |
|
| 112 |
|
| - |
|
| 112 |
|
| - |
Subordinated debt |
|
| 222 |
|
| 210 |
|
| 949 |
|
| 814 |
Notes payable and other borrowings |
|
| 2 |
|
| 2 |
|
| 8 |
|
| 7 |
Total interest expense |
|
| 2,686 |
|
| 2,306 |
|
| 9,938 |
|
| 9,076 |
Net interest and dividend income |
|
| 17,510 |
|
| 14,750 |
|
| 63,441 |
|
| 59,088 |
Loan loss reserve (release) |
|
| 750 |
|
| - |
|
| 750 |
|
| (4,400) |
Net interest and dividend income after reserve (release) for loan losses |
|
| 16,760 |
|
| 14,750 |
|
| 62,691 |
|
| 63,488 |
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
Trust income |
|
| 1,396 |
|
| 1,427 |
|
| 5,670 |
|
| 5,953 |
Service charges on deposits |
|
| 1,723 |
|
| 1,734 |
|
| 6,684 |
|
| 6,820 |
Secondary mortgage fees |
|
| 243 |
|
| 192 |
|
| 1,038 |
|
| 907 |
Mortgage servicing rights mark to market |
|
| 1,002 |
|
| 60 |
|
| (919) |
|
| (1,141) |
Mortgage servicing income |
|
| 444 |
|
| 409 |
|
| 1,724 |
|
| 1,628 |
Net gain on sales of mortgage loans |
|
| 1,312 |
|
| 1,098 |
|
| 6,343 |
|
| 5,775 |
Securities loss, net |
|
| (193) |
|
| - |
|
| (2,213) |
|
| (178) |
Increase in cash surrender value of bank-owned life insurance |
|
| 296 |
|
| 381 |
|
| 1,283 |
|
| 1,396 |
Debit card interchange income |
|
| 1,018 |
|
| 1,015 |
|
| 4,027 |
|
| 4,028 |
Gain (loss) on disposal and transfer of fixed assets, net |
|
| - |
|
| 24 |
|
| (1) |
|
| (1,119) |
Other income |
|
| 1,187 |
|
| 1,069 |
|
| 4,938 |
|
| 5,225 |
Total noninterest income |
|
| 8,428 |
|
| 7,409 |
|
| 28,574 |
|
| 29,294 |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
| 9,380 |
|
| 8,397 |
|
| 36,234 |
|
| 35,061 |
Occupancy expense, net |
|
| 1,254 |
|
| 1,228 |
|
| 4,612 |
|
| 4,749 |
Furniture and equipment expense |
|
| 1,267 |
|
| 1,254 |
|
| 4,447 |
|
| 4,430 |
FDIC insurance |
|
| 72 |
|
| 311 |
|
| 865 |
|
| 1,334 |
General bank insurance |
|
| 270 |
|
| 298 |
|
| 1,109 |
|
| 1,273 |
Amortization of core deposit intangible |
|
| 16 |
|
| - |
|
| 16 |
|
| - |
Advertising expense |
|
| 421 |
|
| 348 |
|
| 1,633 |
|
| 1,340 |
Debit card interchange expense |
|
| 269 |
|
| 383 |
|
| 1,455 |
|
| 1,514 |
Legal fees |
|
| 206 |
|
| 253 |
|
| 800 |
|
| 1,175 |
Other real estate expense, net |
|
| 700 |
|
| 474 |
|
| 2,743 |
|
| 5,191 |
Other expense |
|
| 3,360 |
|
| 3,151 |
|
| 12,847 |
|
| 12,354 |
Total noninterest expense |
|
| 17,215 |
|
| 16,097 |
|
| 66,761 |
|
| 68,421 |
Income before income taxes |
|
| 7,973 |
|
| 6,062 |
|
| 24,504 |
|
| 24,361 |
Provision for income taxes |
|
| 2,955 |
|
| 2,229 |
|
| 8,820 |
|
| 8,976 |
Net income |
| $ | 5,018 |
| $ | 3,833 |
| $ | 15,684 |
| $ | 15,385 |
Preferred stock dividends and accretion of discount |
|
| - |
|
| - |
|
| - |
|
| 1,873 |
Net income available to common stockholders |
| $ | 5,018 |
| $ | 3,833 |
| $ | 15,684 |
| $ | 13,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
| $ | 0.17 |
| $ | 0.13 |
| $ | 0.53 |
| $ | 0.46 |
Diluted earnings per share |
|
| 0.17 |
|
| 0.13 |
|
| 0.53 |
|
| 0.46 |
|
|
|
|
|
|
|
|
|
Ending common shares outstanding |
| 29,555,216 |
| 29,483,429 |
| 29,555,216 |
| 29,483,429 |
Weighted-average basic shares outstanding |
| 29,555,482 |
| 29,482,722 |
| 29,532,510 |
| 29,476,821 |
Weighted-average diluted shares outstanding |
| 29,870,978 |
| 29,748,028 |
| 29,838,931 |
| 29,730,074 |
10
Old Second Bancorp, Inc. and Subsidiaries
Quarterly Consolidated Average Balance
(In thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
| |||||||||||||||||||||||||||||||||
|
|
| 2015 |
|
| 2016 | |||||||||||||||||||||||||||
Assets |
| 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | |||||||||||||||||
Cash and due from banks |
| $ | 31,744 |
| $ | 29,153 |
| $ | 28,999 |
| $ | 28,781 |
| $ | 27,813 |
| $ | 28,597 |
| $ | 41,344 |
| $ | 28,928 | |||||||||
Interest bearing deposits with financial institutions |
|
| 18,022 |
|
| 29,880 |
|
| 18,563 |
|
| 13,859 |
|
| 15,513 |
|
| 12,048 |
|
| 50,054 |
|
| 54,865 | |||||||||
Cash and cash equivalents |
|
| 49,766 |
|
| 59,033 |
|
| 47,562 |
|
| 42,640 |
|
| 43,326 |
|
| 40,645 |
|
| 91,398 |
|
| 83,793 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Securities available-for-sale, at fair value |
|
| 380,180 |
|
| 409,600 |
|
| 410,083 |
|
| 442,909 |
|
| 486,924 |
|
| 684,179 |
|
| 659,890 |
|
| 533,233 | |||||||||
Securities held-to-maturity, at amortized cost |
|
| 258,637 |
|
| 255,293 |
|
| 251,648 |
|
| 248,871 |
|
| 246,772 |
|
| 80,899 |
|
| - |
|
| - | |||||||||
Federal Home Loan Bank and Federal Reserve Bank stock |
|
| 9,058 |
|
| 8,409 |
|
| 8,271 |
|
| 8,451 |
|
| 8,518 |
|
| 7,431 |
|
| 7,918 |
|
| 7,911 | |||||||||
Loans held-for-sale |
|
| 4,782 |
|
| 7,880 |
|
| 3,789 |
|
| 3,465 |
|
| 2,912 |
|
| 4,238 |
|
| 5,295 |
|
| 4,050 | |||||||||
Loans |
|
| 1,156,662 |
|
| 1,144,605 |
|
| 1,140,624 |
|
| 1,136,843 |
|
| 1,138,985 |
|
| 1,145,892 |
|
| 1,186,279 |
|
| 1,386,487 | |||||||||
Less: allowance for loan losses |
|
| 21,605 |
|
| 20,546 |
|
| 18,607 |
|
| 16,598 |
|
| 16,257 |
|
| 16,415 |
|
| 15,767 |
|
| 15,388 | |||||||||
Net loans |
|
| 1,135,057 |
|
| 1,124,059 |
|
| 1,122,017 |
|
| 1,120,245 |
|
| 1,122,728 |
|
| 1,129,477 |
|
| 1,170,512 |
|
| 1,371,099 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Premises and equipment, net |
|
| 42,306 |
|
| 41,937 |
|
| 41,572 |
|
| 39,767 |
|
| 39,416 |
|
| 39,143 |
|
| 39,191 |
|
| 39,129 | |||||||||
Other real estate owned |
|
| 32,392 |
|
| 34,637 |
|
| 29,049 |
|
| 22,760 |
|
| 18,760 |
|
| 16,906 |
|
| 14,888 |
|
| 14,008 | |||||||||
Mortgage servicing rights, net |
|
| 5,202 |
|
| 5,416 |
|
| 5,776 |
|
| 5,596 |
|
| 5,347 |
|
| 5,151 |
|
| 4,822 |
|
| 5,618 | |||||||||
Goodwill and core deposit intangible |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 3,195 | |||||||||
Bank-owned life insurance (BOLI) |
|
| 58,139 |
|
| 58,264 |
|
| 58,566 |
|
| 58,797 |
|
| 59,178 |
|
| 59,459 |
|
| 59,787 |
|
| 60,153 | |||||||||
Deferred tax assets, net |
|
| 69,936 |
|
| 67,657 |
|
| 66,174 |
|
| 65,916 |
|
| 65,210 |
|
| 61,768 |
|
| 57,692 |
|
| 55,902 | |||||||||
Other assets |
|
| 9,693 |
|
| 10,463 |
|
| 9,656 |
|
| 9,179 |
|
| 9,346 |
|
| 10,469 |
|
| 13,833 |
|
| 19,067 | |||||||||
Total other assets |
|
| 217,668 |
|
| 218,374 |
|
| 210,793 |
|
| 202,015 |
|
| 197,257 |
|
| 192,896 |
|
| 190,213 |
|
| 197,072 | |||||||||
Total assets |
| $ | 2,055,148 |
| $ | 2,082,648 |
| $ | 2,054,163 |
| $ | 2,068,596 |
| $ | 2,108,437 |
| $ | 2,139,765 |
| $ | 2,125,226 |
| $ | 2,197,158 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Noninterest bearing demand |
| $ | 405,933 |
| $ | 435,093 |
| $ | 431,052 |
| $ | 445,083 |
| $ | 450,521 |
| $ | 472,450 |
| $ | 472,599 |
| $ | 510,161 | |||||||||
Interest bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Savings, NOW, and money market |
|
| 881,714 |
|
| 885,809 |
|
| 889,448 |
|
| 893,947 |
|
| 915,553 |
|
| 920,389 |
|
| 907,531 |
|
| 933,222 | |||||||||
Time |
|
| 418,615 |
|
| 410,066 |
|
| 404,896 |
|
| 409,353 |
|
| 407,743 |
|
| 402,912 |
|
| 401,999 |
|
| 404,507 | |||||||||
Total deposits |
|
| 1,706,262 |
|
| 1,730,968 |
|
| 1,725,396 |
|
| 1,748,383 |
|
| 1,773,817 |
|
| 1,795,751 |
|
| 1,782,129 |
|
| 1,847,890 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Securities sold under repurchase agreements |
|
| 23,437 |
|
| 31,234 |
|
| 31,466 |
|
| 26,569 |
|
| 35,776 |
|
| 37,433 |
|
| 31,892 |
|
| 31,019 | |||||||||
Other short-term borrowings |
|
| 25,722 |
|
| 22,638 |
|
| 14,674 |
|
| 24,837 |
|
| 27,802 |
|
| 28,187 |
|
| 22,174 |
|
| 27,940 | |||||||||
Junior subordinated debentures |
|
| 57,502 |
|
| 57,513 |
|
| 57,525 |
|
| 57,538 |
|
| 57,549 |
|
| 57,561 |
|
| 57,573 |
|
| 57,585 | |||||||||
Senior Notes |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 8,155 | |||||||||
Subordinated debt |
|
| 45,000 |
|
| 45,000 |
|
| 45,000 |
|
| 45,000 |
|
| 45,000 |
|
| 45,000 |
|
| 45,000 |
|
| 36,685 | |||||||||
Notes payable and other borrowings |
|
| 500 |
|
| 500 |
|
| 500 |
|
| 500 |
|
| 500 |
|
| 500 |
|
| 500 |
|
| 408 | |||||||||
Other liabilities |
|
| 11,734 |
|
| 10,962 |
|
| 9,782 |
|
| 10,488 |
|
| 11,033 |
|
| 12,511 |
|
| 15,539 |
|
| 12,609 | |||||||||
Total liabilities |
|
| 1,870,157 |
|
| 1,898,815 |
|
| 1,884,343 |
|
| 1,913,315 |
|
| 1,951,477 |
|
| 1,976,943 |
|
| 1,954,807 |
|
| 2,022,291 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Preferred stock |
|
| 36,637 |
|
| 31,553 |
|
| 15,091 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - | |||||||||
Common stock |
|
| 34,414 |
|
| 34,419 |
|
| 34,422 |
|
| 34,426 |
|
| 34,427 |
|
| 34,505 |
|
| 34,533 |
|
| 34,533 | |||||||||
Additional paid-in capital |
|
| 115,413 |
|
| 115,553 |
|
| 115,692 |
|
| 115,827 |
|
| 115,945 |
|
| 116,065 |
|
| 116,365 |
|
| 116,537 | |||||||||
Retained earnings |
|
| 102,050 |
|
| 105,208 |
|
| 108,858 |
|
| 112,584 |
|
| 116,231 |
|
| 119,640 |
|
| 123,771 |
|
| 128,017 | |||||||||
Accumulated other comprehensive loss |
|
| (7,558) |
|
| (6,935) |
|
| (8,277) |
|
| (11,590) |
|
| (13,677) |
|
| (11,241) |
|
| (8,030) |
|
| (8,000) | |||||||||
Treasury stock |
|
| (95,965) |
|
| (95,965) |
|
| (95,966) |
|
| (95,966) |
|
| (95,966) |
|
| (96,147) |
|
| (96,220) |
|
| (96,220) | |||||||||
Total stockholders' equity |
|
| 184,991 |
|
| 183,833 |
|
| 169,820 |
|
| 155,281 |
|
| 156,960 |
|
| 162,822 |
|
| 170,419 |
|
| 174,867 | |||||||||
Total liabilities and stockholder's equity |
| $ | 2,055,148 |
| $ | 2,082,648 |
| $ | 2,054,163 |
| $ | 2,068,596 |
| $ | 2,108,437 |
| $ | 2,139,765 |
| $ | 2,125,226 |
| $ | 2,197,158 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Total Earning Assets |
| $ | 1,827,341 |
| $ | 1,855,667 |
| $ | 1,832,978 |
| $ | 1,854,398 |
| $ | 1,899,624 |
| $ | 1,934,687 |
| $ | 1,909,436 |
| $ | 1,986,546 | |||||||||
Total Interest Bearing Liabilities |
|
| 1,452,490 |
|
| 1,452,760 |
|
| 1,443,509 |
|
| 1,457,744 |
|
| 1,489,923 |
|
| 1,491,982 |
|
| 1,466,669 |
|
| 1,499,521 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
11
Old Second Bancorp, Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(In thousands, except share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
| 2016 | ||||||||||||||||||||
|
| 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr |
| 1st Qtr |
| 2nd Qtr |
| 3rd Qtr |
| 4th Qtr | ||||||||
Interest and Dividend Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
| $ | 13,218 |
| $ | 13,467 |
| $ | 13,353 |
| $ | 12,997 |
| $ | 13,058 |
| $ | 13,039 |
| $ | 13,496 |
| $ | 16,426 |
Loans held-for-sale |
|
| 43 |
|
| 72 |
|
| 38 |
|
| 36 |
|
| 28 |
|
| 39 |
|
| 48 |
|
| 36 |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
| 3,375 |
|
| 3,372 |
|
| 3,471 |
|
| 3,819 |
|
| 4,211 |
|
| 4,382 |
|
| 3,954 |
|
| 3,318 |
Tax exempt |
|
| 141 |
|
| 163 |
|
| 122 |
|
| 116 |
|
| 179 |
|
| 220 |
|
| 180 |
|
| 263 |
Dividends from Federal Home Loan Bank and Federal Reserve Bank stock |
|
| 77 |
|
| 77 |
|
| 76 |
|
| 76 |
|
| 84 |
|
| 84 |
|
| 83 |
|
| 82 |
Interest bearing deposits with financial institutions |
|
| 12 |
|
| 19 |
|
| 12 |
|
| 12 |
|
| 19 |
|
| 15 |
|
| 64 |
|
| 71 |
Total interest and dividend income |
|
| 16,866 |
|
| 17,170 |
|
| 17,072 |
|
| 17,056 |
|
| 17,579 |
|
| 17,779 |
|
| 17,825 |
|
| 20,196 |
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW, and money market deposits |
|
| 179 |
|
| 183 |
|
| 185 |
|
| 187 |
|
| 191 |
|
| 193 |
|
| 193 |
|
| 212 |
Time deposits |
|
| 807 |
|
| 771 |
|
| 799 |
|
| 824 |
|
| 822 |
|
| 869 |
|
| 931 |
|
| 1,018 |
Other short-term borrowings |
|
| 9 |
|
| 7 |
|
| 6 |
|
| 11 |
|
| 20 |
|
| 26 |
|
| 23 |
|
| 37 |
Junior subordinated debentures |
|
| 1,072 |
|
| 1,071 |
|
| 1,072 |
|
| 1,072 |
|
| 1,084 |
|
| 1,083 |
|
| 1,084 |
|
| 1,083 |
Senior notes |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 112 |
Subordinated debt |
|
| 197 |
|
| 202 |
|
| 205 |
|
| 210 |
|
| 239 |
|
| 243 |
|
| 245 |
|
| 222 |
Notes payable and other borrowings |
|
| 4 |
|
| - |
|
| 1 |
|
| 2 |
|
| 2 |
|
| 2 |
|
| 2 |
|
| 2 |
Total interest expense |
|
| 2,268 |
|
| 2,234 |
|
| 2,268 |
|
| 2,306 |
|
| 2,358 |
|
| 2,416 |
|
| 2,478 |
|
| 2,686 |
Net interest and dividend income |
|
| 14,598 |
|
| 14,936 |
|
| 14,804 |
|
| 14,750 |
|
| 15,221 |
|
| 15,363 |
|
| 15,347 |
|
| 17,510 |
Loan loss (release) reserve |
|
| - |
|
| (2,300) |
|
| (2,100) |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 750 |
Net interest and dividend income after (release) reserve for loan losses |
|
| 14,598 |
|
| 17,236 |
|
| 16,904 |
|
| 14,750 |
|
| 15,221 |
|
| 15,363 |
|
| 15,347 |
|
| 16,760 |
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust income |
|
| 1,486 |
|
| 1,596 |
|
| 1,444 |
|
| 1,427 |
|
| 1,369 |
|
| 1,502 |
|
| 1,403 |
|
| 1,396 |
Service charges on deposits |
|
| 1,541 |
|
| 1,779 |
|
| 1,766 |
|
| 1,734 |
|
| 1,559 |
|
| 1,646 |
|
| 1,756 |
|
| 1,723 |
Secondary mortgage fees |
|
| 244 |
|
| 281 |
|
| 190 |
|
| 192 |
|
| 193 |
|
| 280 |
|
| 322 |
|
| 243 |
Mortgage servicing rights mark to market |
|
| (609) |
|
| 96 |
|
| (688) |
|
| 60 |
|
| (1,041) |
|
| (733) |
|
| (147) |
|
| 1,002 |
Mortgage servicing income |
|
| 401 |
|
| 404 |
|
| 414 |
|
| 409 |
|
| 421 |
|
| 422 |
|
| 437 |
|
| 444 |
Net gain on sales of mortgage loans |
|
| 1,623 |
|
| 1,695 |
|
| 1,359 |
|
| 1,098 |
|
| 1,212 |
|
| 1,642 |
|
| 2,177 |
|
| 1,312 |
Securities losses, net |
|
| (109) |
|
| (12) |
|
| (57) |
|
| - |
|
| (61) |
|
| - |
|
| (1,959) |
|
| (193) |
Increase in cash surrender value of bank-owned life insurance |
|
| 480 |
|
| 299 |
|
| 236 |
|
| 381 |
|
| 285 |
|
| 319 |
|
| 383 |
|
| 296 |
Debit card interchange income |
|
| 959 |
|
| 1,050 |
|
| 1,004 |
|
| 1,015 |
|
| 947 |
|
| 1,049 |
|
| 1,013 |
|
| 1,018 |
(Loss) gain on disposal and transfer of fixed assets |
|
| - |
|
| - |
|
| (1,143) |
|
| 24 |
|
| (1) |
|
| - |
|
| - |
|
| - |
Other income |
|
| 1,957 |
|
| 1,076 |
|
| 1,123 |
|
| 1,069 |
|
| 1,392 |
|
| 1,150 |
|
| 1,209 |
|
| 1,187 |
Total noninterest income |
|
| 7,973 |
|
| 8,264 |
|
| 5,648 |
|
| 7,409 |
|
| 6,275 |
|
| 7,277 |
|
| 6,594 |
|
| 8,428 |
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
| 9,255 |
|
| 9,149 |
|
| 8,260 |
|
| 8,397 |
|
| 9,026 |
|
| 8,814 |
|
| 9,014 |
|
| 9,380 |
Occupancy expense, net |
|
| 1,271 |
|
| 1,094 |
|
| 1,156 |
|
| 1,228 |
|
| 1,229 |
|
| 1,009 |
|
| 1,120 |
|
| 1,254 |
Furniture and equipment expense |
|
| 1,001 |
|
| 1,065 |
|
| 1,110 |
|
| 1,254 |
|
| 958 |
|
| 1,078 |
|
| 1,144 |
|
| 1,267 |
FDIC insurance |
|
| 273 |
|
| 377 |
|
| 373 |
|
| 311 |
|
| 203 |
|
| 362 |
|
| 228 |
|
| 72 |
General bank insurance |
|
| 357 |
|
| 310 |
|
| 308 |
|
| 298 |
|
| 298 |
|
| 272 |
|
| 269 |
|
| 270 |
Amortization of core deposit intangible |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 16 |
Advertising expense |
|
| 205 |
|
| 353 |
|
| 434 |
|
| 348 |
|
| 347 |
|
| 435 |
|
| 430 |
|
| 421 |
Debit card interchange expense |
|
| 352 |
|
| 400 |
|
| 379 |
|
| 383 |
|
| 203 |
|
| 620 |
|
| 363 |
|
| 269 |
Legal fees |
|
| 223 |
|
| 420 |
|
| 279 |
|
| 253 |
|
| 161 |
|
| 191 |
|
| 242 |
|
| 206 |
Other real estate expense, net |
|
| 1,352 |
|
| 2,388 |
|
| 977 |
|
| 474 |
|
| 738 |
|
| 879 |
|
| 426 |
|
| 700 |
Other expense |
|
| 2,864 |
|
| 3,371 |
|
| 2,968 |
|
| 3,151 |
|
| 3,101 |
|
| 3,040 |
|
| 3,346 |
|
| 3,360 |
Total noninterest expense |
|
| 17,153 |
|
| 18,927 |
|
| 16,244 |
|
| 16,097 |
|
| 16,264 |
|
| 16,700 |
|
| 16,582 |
|
| 17,215 |
Income before income taxes |
|
| 5,418 |
|
| 6,573 |
|
| 6,308 |
|
| 6,062 |
|
| 5,232 |
|
| 5,940 |
|
| 5,359 |
|
| 7,973 |
Provision for income taxes |
|
| 1,919 |
|
| 2,444 |
|
| 2,384 |
|
| 2,229 |
|
| 1,910 |
|
| 2,095 |
|
| 1,860 |
|
| 2,955 |
Net income |
|
| 3,499 |
|
| 4,129 |
|
| 3,924 |
|
| 3,833 |
|
| 3,322 |
|
| 3,845 |
|
| 3,499 |
|
| 5,018 |
Preferred stock dividends and accretion of discount |
|
| 824 |
|
| 710 |
|
| 339 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
Net income available to common stockholders |
| $ | 2,675 |
| $ | 3,419 |
| $ | 3,585 |
| $ | 3,833 |
| $ | 3,322 |
| $ | 3,845 |
| $ | 3,499 |
| $ | 5,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
| $ | 0.09 |
| $ | 0.12 |
| $ | 0.12 |
| $ | 0.13 |
| $ | 0.11 |
| $ | 0.13 |
| $ | 0.12 |
| $ | 0.17 |
Diluted earnings per share |
|
| 0.09 |
|
| 0.12 |
|
| 0.12 |
|
| 0.13 |
|
| 0.11 |
|
| 0.13 |
|
| 0.12 |
|
| 0.17 |
12
The table below provides a reconciliation of each non-GAAP tax equivalent measure to the most comparable GAAP measure for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
|
| Year Ended |
| |||||||||||
|
| December 31, |
| September 30, |
| December 31, |
|
| December 31, |
| |||||||
|
| 2016 |
| 2016 |
| 2015 |
|
| 2016 |
| 2015 |
| |||||
Net Interest Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (GAAP) |
| $ | 20,196 |
| $ | 17,825 |
| $ | 17,056 |
|
| $ | 73,379 |
| $ | 68,164 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
| 23 |
|
| 23 |
|
| 24 |
|
|
| 93 |
|
| 103 |
|
Securities |
|
| 141 |
|
| 97 |
|
| 63 |
|
|
| 453 |
|
| 292 |
|
Interest income (TE) |
|
| 20,360 |
|
| 17,945 |
|
| 17,143 |
|
|
| 73,925 |
|
| 68,559 |
|
Interest expense (GAAP) |
|
| 2,686 |
|
| 2,478 |
|
| 2,306 |
|
|
| 9,938 |
|
| 9,076 |
|
Net interest income (TE) |
| $ | 17,674 |
| $ | 15,467 |
| $ | 14,837 |
|
| $ | 63,987 |
| $ | 59,483 |
|
Net interest income (GAAP) |
| $ | 17,510 |
| $ | 15,347 |
| $ | 14,750 |
|
| $ | 63,441 |
| $ | 59,088 |
|
Average interest earning assets |
| $ | 1,986,546 |
| $ | 1,909,436 |
| $ | 1,854,398 |
|
| $ | 1,932,658 |
| $ | 1,842,644 |
|
Net interest margin (GAAP) |
|
| 3.51 | % |
| 3.20 | % |
| 3.16 | % |
|
| 3.28 | % |
| 3.21 | % |
Net interest margin (TE) |
|
| 3.54 | % |
| 3.22 | % |
| 3.17 | % |
|
| 3.31 | % |
| 3.23 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| ||||||
|
| December 31, |
| September 30, |
| December 31, |
| |||
|
| 2016 |
| 2016 |
| 2015 |
| |||
Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
| $ | 17,215 |
| $ | 16,582 |
| $ | 16,097 |
|
Less amortization of core deposit, net |
|
| 16 |
|
| - |
|
| - |
|
Less other real estate expense, net |
|
| 700 |
|
| 426 |
|
| 474 |
|
Less acquisition costs |
|
| 154 |
|
| 115 |
|
| - |
|
Adjusted noninterest expense |
|
| 16,345 |
|
| 16,041 |
|
| 15,623 |
|
Net interest income (GAAP) |
|
| 17,510 |
|
| 15,347 |
|
| 14,750 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
Loans |
|
| 23 |
|
| 23 |
|
| 24 |
|
Securities |
|
| 141 |
|
| 97 |
|
| 63 |
|
Net interest income (TE) |
|
| 17,674 |
|
| 15,467 |
|
| 14,837 |
|
Noninterest income |
|
| 8,428 |
|
| 6,594 |
|
| 7,409 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
Increase in cash surrender value of BOLI (TE) |
|
| 160 |
|
| 206 |
|
| 205 |
|
Noninterest income (TE) |
|
| 8,588 |
|
| 6,800 |
|
| 7,614 |
|
Less securities loss, net |
|
| (193) |
|
| (1,959) |
|
| - |
|
Adjusted noninterest income, plus net interest income (TE) |
| $ | 26,455 |
| $ | 24,226 |
| $ | 22,451 |
|
Efficiency ratio |
|
| 61.78 | % |
| 66.21 | % |
| 69.59 | % |
13