OLD SECOND BANCORP INC.
Traded: NASDAQ National Market System
Symbol: OSBC
For additional information contact:
Doug Cheatham, Sr. Vice President and CFO
(630) 906-5484
Old Second Bancorp, Inc. earned $4,793,000, or 64 cents per share, in the second quarter of 2002, a 14% increase in earnings per share over the second quarter of 2001. During the six months ended June 30, the company earned $9,772,000, or $1.31 per share, a 28% increase in earnings per share over the first half of 2001.
Growth trends continued through the second quarter. Total loans increased from $895.5 million as of December 31, 2001, to $963.6 million as of June 30, 2002, an increase of 7.6% in the six-month period. This represented an increase of $173.3 million, or 21.9% from $790.3 million at the end of the second quarter of 2001. At the same time, deposits increased from $1.09 billion as of December 31, 2001 to $1.28 billion, an increase of $193.3 million, or 17.7%, in the six-month period.
The net interest margin was 4.51% in the first half of 2002 compared to 4.25% one year earlier. The margin was 4.45% in the second quarter compared to 4.28% in the second quarter of 2001. Continued loan growth and declining cost of funds have enhanced the net interest margin.
Management, along with other financial institutions, shares a concern for the strength of the economy. Should the economic climate deteriorate, borrowers may experience difficulty and the level of non-performing loans, charge-offs and delinquencies could rise. Net charge-offs during the first half of 2002 were $1,000 compared to $132,000 in the first half of 2001. Non-performing assets increased to $4,875,000 from $3,331,000 at year-end 2001. The Company’s provision for loan losses during the first half was increased to $1,605,000 from $1,270,000 during the first half of 2001.
Old Second Bancorp, Inc. currently has nineteen banking locations and five mortgage banking offices located in Kane, Kendall, DeKalb, DuPage, Lake, LaSalle, and Winnebago counties in Illinois.
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, please review our filings with the Securities and Exchange Commission.
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Old Second Bancorp, Inc.
Financial Highlights (Unaudited)
(Dollars in thousands except share and per share data)
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| Twelve Months |
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| Quarter Ended |
| Six Months Ended |
| Ended |
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| June 30, |
| June 30, |
| December 31, |
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| 2002 |
| 2001 |
| 2002 |
| 2001 |
| 2001 |
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Income Statement: |
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Net interest income |
| $ | 14,038 |
| $ | 11,993 |
| $ | 27,808 |
| $ | 23,121 |
| $ | 49,501 |
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Provision for loan losses |
| 775 |
| 690 |
| 1,605 |
| 1,270 |
| 3,840 |
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Non-interest income |
| 5,353 |
| 5,306 |
| 10,936 |
| 10,237 |
| 22,301 |
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Non-interest expense |
| 11,347 |
| 9,997 |
| 22,303 |
| 20,020 |
| 41,476 |
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Income Taxes |
| 2,476 |
| 2,303 |
| 5,064 |
| 4,127 |
| 9,263 |
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Net income |
| 4,793 |
| 4,309 |
| 9,772 |
| 7,941 |
| 17,223 |
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End of Period Balances: |
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Loans, net of unearned income |
| $ | 963,627 |
| $ | 790,272 |
| $ | 963,627 |
| $ | 790,272 |
| $ | 895,455 |
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Deposits |
| 1,284,157 |
| 1,072,540 |
| 1,284,157 |
| 1,072,540 |
| 1,090,816 |
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Stockholders’ equity |
| 125,974 |
| 119,327 |
| 125,974 |
| 119,327 |
| 124,946 |
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Total earning assets |
| 1,398,889 |
| 1,212,498 |
| 1,398,889 |
| 1,212,498 |
| 1,264,344 |
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Total assets |
| 1,477,327 |
| 1,285,942 |
| 1,477,327 |
| 1,285,942 |
| 1,333,348 |
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Average Balances: |
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Loans, net of unearned income |
| $ | 938,196 |
| $ | 767,903 |
| $ | 920,355 |
| $ | 754,828 |
| $ | 794,147 |
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Deposits |
| 1,190,560 |
| 1,040,724 |
| 1,152,789 |
| 1,021,944 |
| 1,057,428 |
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Stockholders’ equity |
| 125,227 |
| 118,837 |
| 124,928 |
| 117,398 |
| 119,382 |
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Total earning assets |
| 1,304,236 |
| 1,162,951 |
| 1,279,534 |
| 1,136,467 |
| 1,180,869 |
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Total assets |
| 1,371,045 |
| 1,225,865 |
| 1,345,611 |
| 1,198,670 |
| 1,243,903 |
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Per Share Data: |
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Basic earnings per share |
| $ | 0.64 |
| $ | 0.56 |
| $ | 1.31 |
| $ | 1.02 |
| $ | 2.24 |
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Diluted earnings per share |
| $ | 0.64 |
| $ | 0.56 |
| $ | 1.30 |
| $ | 1.02 |
| $ | 2.23 |
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Dividends declared per share |
| $ | 0.20 |
| $ | 0.15 |
| $ | 0.35 |
| $ | 0.26 |
| $ | 0.56 |
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Book value per share |
| $ | 17.02 |
| $ | 15.56 |
| $ | 17.02 |
| $ | 15.56 |
| $ | 16.42 |
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Tangible book value per share |
| $ | 16.51 |
| $ | 15.00 |
| $ | 16.51 |
| $ | 15.00 |
| $ | 15.91 |
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Average number of shares outstanding |
| 7,440,139 |
| 7,734,587 |
| 7,483,030 |
| 7,757,372 |
| 7,695,225 |
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Ending number of shares outstanding |
| 7,403,605 |
| 7,670,125 |
| 7,403,605 |
| 7,670,125 |
| 7,607,592 |
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Profitability Ratios (annualized): |
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Return on average assets |
| 1.40 | % | 1.41 | % | 1.46 | % | 1.34 | % | 1.38 | % | |||||
Return on average equity |
| 15.35 | % | 14.54 | % | 15.77 | % | 13.64 | % | 14.43 | % | |||||
Net interest margin (tax equivalent) |
| 4.45 | % | 4.28 | % | 4.51 | % | 4.25 | % | 4.33 | % | |||||
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Asset Quality: |
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Nonperforming assets |
| $ | 4,875 |
| $ | 1,881 |
| $ | 4,875 |
| $ | 1,881 |
| $ | 3,331 |
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Net charge offs (recoveries) |
| (146 | ) | 83 |
| 1 |
| 132 |
| 1,217 |
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Allowance for loan losses |
| 13,917 |
| 10,828 |
| 13,917 |
| 10,828 |
| 12,313 |
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Allowance for loan losses to loans |
| 1.44 | % | 1.37 | % | 1.44 | % | 1.37 | % | 1.38 | % | |||||
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