Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, everyone, and thank you for joining us today for Old Second Bancorp, Inc.’s Second Quarter 2023 Earnings Call.

On the call today is Jim Eccher, the Company’s Chairman, President and CEO; Brad Adams, the Company’s CFO; and Gary Collins, the Vice Chairman of our Board.

I will start with a reminder that Old Second’s comments today will contain forward-looking statements about the Company’s business, strategies and prospects, which are based on management’s existing expectations in the current economic environment. These statements are not a guarantee of future performance, and results may differ materially from those projected.

Management would ask you to refer to the Company’s SEC filings for a full discussion of the Company’s risk factors. undertake to not statements. such does Company any update duty forward-looking The

to in today’s be available homepage measures under These reconciled also we on are the GAAP certain and On oldsecond.com will and measures. our discussing website call, on which earnings our release, non-GAAP at financial described Investor their is tab. counterparts the non-GAAP Relations

will Mr. Jim I Eccher. to turn over it Now

Jim Eccher

us. joining Good morning, you and for thank

the quarter As I have of give prepared my to remarks over opening questions. will with certain details. will then customary, summary thoughts and and Brad we before comments up I several open future conclude additional for it turn and overview for the it about then

second $X.XX Adjusted $XX.X second quarter was also Net represents diluted quarter. record per income earnings. XXXX. per was income million the or net million, $XX.X in quarter of our $X.XX This the share consecutive second in diluted share

basis, a return on adjusted X.XX%. was assets On same

equity efficiency Second XX.X% quarter XXXX was was tax ratio the and return on XX.XX%. average tangible common equivalent

quarter by senior and negatively $XX accelerated we outstanding million the note well as issuance $X.X impacted XXX,XXX senior as redeemed a were security sales loss cost strategic million security as pretax note. Second earnings of

reduced diluted combined impact of per these two share by The $X.XX. earnings items

favorably across funding to second in expansion the quarter results compared due continue net along interest financial an yields the in quarter or by with increases $XX.X like manageable rates to Our balance million to with impacted be asset income market elevated prior in XX.X% interest cost increase sheet. significant the

signs although prior same compared first in million and seen the slowing. within growth show the or activity begin quarter, quarter. of reduction to million the Loan XXXX, prepayments committee to the stronger for $XXX.X accelerated of in activity linked quarter and loan second reflected of second recently, period Activity quarter The majority year. we modest over more loan $XX.X moderated net the relative significant the origination resulting quarter last have second XX% to over the were period of

quarter, costs redemption senior pricing contracted to certain the specials due well associated interest costs funding with our due in issuance deposit product time to as deposit accelerated largely of Net as increased and margin the deposits notes. this on increases

and quarter, continued to quarter points year-over-year. X.XX% XX expand basis of yields at Loan XXXX. NIM margin during X.XX% portion in and to the for loan-to-deposit quarter compared mix the second remained as now increasing the XX% basis of linked the loan over the sheet portfolio in loan has strong XXXX. XX, balance The and of the from points improvements, continuing compared XXXX. benefited impact -- the The quarter XXX growth quarter XX% last variable at year-over-year rates June The to XX% rising on of is ratio

optimization. now focus I’ll talk our quarter, last let balance to noted we moment. sheet that about Brad As And shifted has in a

this point, at Ongoing the essentially to this assets million. significantly while Credit as favorable deterioration and are $XXX.X were and X.X% last revealed X.X% or to $X.X loans paydowns loans more nonaccrual classified decreased or commercial ticked $X.X evaluations relative estate stable to various within loans upgrades million have metrics up and real not trends on million quarter. due office of significant criticized quarter

forward. recently monitoring weakness few favorable more will third commercial I on present remains potential our see downgraded addressed trends believe specifically we and have quarter Clearly, the could real a in estate going and sufficiently in focus office. credits themselves

see stressed broad-based and believe maturing risk. we credits renewal don’t We have under rates all

refreshing on as proactive a been credit for outlook result, have valuations. And our has changed. We not

continue is very first quarter portfolio. owner-occupied, to office unusual real and net compared bank commercial only the exposure X% which believe it’s half we We I that simply remember estate our about in closely. we is charge-offs $XXX,XXX year, our to of the think is important recorded the net We a our don’t of have watch charge-offs for a $XXX,XXX quarter. of of exposure second this it to but lot in of size,

million the estate $XXX,XXX ACL three loans to March allowance real $XX.X XXst. the XXth gross quarter, of as owned decrease in OREO total based of transfer. of in XXX,XXX to as loans to at in of XXXX, sales is quarter second as increased property reflected on losses total Other one of June net the with a previous end on June credit million $XX.X X.X% X.X% from total at for which the quarter, XX, of the The end loans consistent

static GDP rate future and quarter. in forecasts from loss Unemployment fairly used assumptions last remained

think know and the the should the credits discussed ones our strength we previously. investors portfolios confident that are question in we of that in have I same remain

We watch those continue to closely.

$X.X wealth income card million management credit in continued second sales incurred Noninterest our perform well. Pretax income on increase on certain Expense believe strategic is losses security outstanding simply noninterest an $XXX,XXX efficiency increased our types quarter, income adjustments, to mark-to-market, driven and to within this related in related discussed quarter and of MSR, to losses discipline were And point. we compared excluding in at by sales security portfolio. security gains on first continues repositioning income. the to be earlier, the strong,

recent commercial with and are the term. liquidity, The long building the we featuring forward, loan balance build mix same, returns is capability loans more maintain look to doing more securities continuing of order in a for on which long-term towards more to sheet continue stable is origination equity less the goal performance. managing to we our As commensurate obviously on

it turn to more comments. for I’ll now over Brad

Brad Adams

quarter quarter. last interest at relative recent XX% yields Net quarter or $XX.X quarter. decreased $XX.X ended slower $XX.X flat the yields year income prior second the of in million remained pace continued the the slightly quarter, periods ago but and million, grow relatively to increased for though million to a from to than Jim. you, securities Loan Thank since

increase over of XX cost the and linked basis-point decrease last interest-bearing liabilities interest-bearing X.XX. The X.XX end points to the a to mitigated basis XX for quarter quarter in to increased XX the partially bps, deposits basis-point assets interest-earning in increase from a result a the on yield aggregate. was XXX Total XX NIM in basis-point by

noted redeemed outstanding an As on deferred XXth, senior of resulted during an debt approximate the costs. the the June the in had basis-point This impact issuance earlier, acceleration margin quarter. issuance which on we X negative

declines along costs this showed net $XX modest basis always about I’m Going replacement forward, with of we assumed points add leakage for redemption that X flows gone. end, or typical to seasonal decline the on would dollar that the million note quarter the senior basis-point XX -- sorry, funding Deposit an quarter dollar with half being high payments we new see far and in customers latter tax activities personal business the nature saw character customers an for XXXX. spring. commercial based and like feels and inverse of looks the the on of and beginning the rolling and through in continuing move Bank, of the into largely thus out XXXX flows The

and a the more the flexibility we have has progress normal portfolio. the remix right some last high balance to some than including to the year, third sheet Fortunately, reducing continue with sensitivity variable There adapt. significant in just earnings over and fairly reducing to profile we a been still to at chase significant margin made rather liquidity We’ll of have the asset but time return from anything, beta optimize to aren’t We and but than the lurching associated duration doing portfolio. securities more it’s over within XX% give-up rate this, deposits.

the sensitivity The bets a reduce way the on remains ways. to increased as an aren’t and asset still to X.X Effective inversion path relative bond seems of slowly in source is is for liquidity numerous ability the to Duration in the approximate in years, its the level place portfolio It duration we hurry you our up to being last With the loan-to-deposit significantly from of months higher portfolio from large curve, six on zeitgeist. longer has color interest rates. finally into the we seen now quarter. low, gave ratio added ago.

ours would The result to from but the last TCE would The short quarter, points relative capital is basis-point you the in quickly linked improvement duration very given I the evidenced Old to what the as XX the means ratio in relatively the build XX that TCE quickly. version by Second’s have sharp Second be months. longer basis over points with remind that mark Old six seen high the remains in portfolio added like of outperformance recaptured should that have quarter, basis securities continue we net to which combined will portfolios XX on just end.

strong position we excellent, holding at here million As well. approximately an unpledged the the today, securities. capacity, have $XXX remains in we in additional borrowing company is a undrawn in and $XXX In liquidity short, million Bank as sit

here may Margin are year this borrowings seek more to and from year resume relatively continued permission with rate to the the expected one as from of outpace projected by not on be repurchases to much. increased over overnight hike stable well. We benefits repricing stock asset the remainder reliance trends

$XXX,XXX quarter. near with the worsening commitments loans on to provision $X credit recorded be of the unfunded with growth environment. quarter, was of million though losses change the provision would roughly growth that in consistent significant $X.X a losses on I provision for could loan of credit the expect due for in quarter reversal during the XXXX macro to term, over net million Provision during was and second

$XX from million employee previous quarterly the and between by continue the $X.X expenses. and expect benefits near to benefits to quarter, declined driven million be term. and I data salaries well forward expense as and processing Noninterest computer in as lower $XX going million wages

performance, it the revenue conditions running employee been dial ability the but investment will Given as warrant. to we have costs maintain back high,

Jim. I’d With over back turn to the that, call to like

Jim Eccher

Okay. Thanks, Brad.

in confident opportunities are balance In how us. ahead we and constructed the that for closing, we’ve our are sheet

close position strong. We and and underwriting credit disciplined, are our remained We our funding very attention has paying believe expenses. to is

grow aggressive to and a rate We flexibility should look and liquidity to relationships. to we in and talent levels levels maintain environment. adding sheet and have Capital the will continue excel targets, be in higher above balance

prepared that our morning. So, this concludes comments

we So, it the up I’ll questions. moderator, turn to to it and open over can

Operator

Thank question Terry from you. first Stephens. Our McEvoy coming with is [Operator Instructions]

Terry McEvoy

Jim, run time, statement you Could correctly? expected the as were what downgrades a said talking favorable you maybe so third you but outcome. of more CRE be exactly one understand more one prepared quarter, at you’re in getting just your and comments that through I you the portfolio, there’d about

Jim Eccher

on the credits and just I’ve in and this to realize downgraded in Terry, third No, a the upgrades few opposite, seen previously quarter. -- already -- expect starting some we’re Yes. resolutions so we some quarter,

the in right trending direction. are things So

Terry McEvoy

Okay. you, the in points deposit second Maybe, Brad, for really been a It’s Good. were that XX morning quarter. question your costs basis just interest-bearing low a long already. at

see you think trending? and just of that do about your As competition you of the into the maybe deposits, year this on for kind half comments margin? second And what’s the where baked

Brad Adams

So, don’t a will I happened of as Most think it I move tick in to that quarter we think it first a as big bit. second. little increase -- saw of most March. that be up will

-- here what think is, deposit We lot have most people require that how movement. advantage just now a granular realize doesn’t a the big of I in it base

I think will we uptick. some see

borrowing comfortable I are position. exceptionally a under in probably gets borrowing -- overnight it think If we level more CD at that, we’ll put out pricing. that $XXX above million

hike with X little rate But fourth. the of idea into I It here. is down portion would it be to securities bit variable up. to a around the portfolio, to or may over which or It the belief, seems the margin with lot. significant a bleeding think better that going that others And for I don’t minus come give have hire plus in whole consistent with a a sell just we’re points of does third continue a basis little longer. that call

And is there that a we we to coming it ones this now cuts year, everybody were it, that, were then on before it. thought, the whereas rate touch wanted as so And either. bought nobody only when bid wanted

So, our two to it we’ll position ago, is that. or even continue ability to move was and a than month markedly do today better down that

just on at kind in upside margin reducing this asset will sensitivity the cycle. probably of be up So given point

Terry McEvoy

it quick need or What properties? stock? you remediation a do Brad, those you at? on maybe What looking of see follow-up. you for of are to waiting funding some is it kind hinted on confidence or CRE begin And Is costs? hear but at repurchasing to it,

Brad Adams

scenarios are purchase environment. what building back type Obviously, I in on is here. we’re very mean, And just accounting of of return I quickly it marginal everybody There an are punitive doesn’t. No. far it’s where the work. can the think aware generation There are whereby M&A best capital capital more a marks how is. question M&A scenarios

then good won’t about credit overall a got people the think heck poor disciplined anything that a And of builds. look I We’ve pretty on terms But big investment just in exposures, continuing and and other done. to speed feels which of also office opportunities know things whole of and function feel it’s do at pretty on a capital front reserve the where outlook. That we sit. we good. we’re

Operator

you. Thank

question coming Piper Sandler. is Race Our next with from Nathan

Nathan Race

I you if just on a for half was could hoping expand bit margin of little this back outlook Brad, the year. your

level. I spoke kind the you And added stable are think outlook XQ short-term mentioned quarter. to in borrowings relatively ongoing that remarks, the your reliance in you a prepared from of the of the

back how on assume of to perhaps map the flows those on So, I balance year, [ph] guys in the remain securities you how just it dependent is is sheet half trend or guess, more it deposit book? fair

Brad Adams

overnight is sheet it the the the period than with borrowing consistent is more balance position with average So, end.

mentioned we around and had issuance paid June a day. off money we that senior of that think a on we debt moving lot hack I of XXth, whole

the thing. just we we to there, make sure was bit one-day typically borrowed So, but liquidity more that a a was than would

to majority closer than far. million $XXX we to this so the $XXX month for are are We million of

fine. feels that So,

I variable hike is strategic reduce we another would is, Obviously, the just The which think portfolio. at about of continue point. is it -- this benefit rate speed There the would at that. is no us. the some to portion question doubt of

the are if waning these we loan happens, guess, when levels because overnight the -- significantly out to demand of obviously loan above borrowing That funds continue the mitigates that some that do there And X%. growth is cost I of days.

embedded that asset is think down I sensitivity, kind outlook that of Nate. to So, in that bring continue margin we’ll

Nathan Race

you some loans third just were a quarter? When having some some to resolutions the CRE are resolutions earlier expecting to in moved of were Makes last here Understood. classified to sense. those tied question. Maybe or the quarter, speaking specifically that

Jim Eccher

Yes, they are.

or We’re to capital seeing sponsors these step providing up credits payment more reserves. for inject either

pleasantly optimistic be a our We’re to that larger able going couple resolve ones. we’re to of

quarter sold. another could property This be there

got arms continue against around Brad’s in feel portfolio. And So and point to earlier, we particularly to an increase reserve we feel our particularly office we’ve we this. our office ample reserve, have our Chicago

Nathan Race

of cost in of half to run salary Brad, year, the overall the guidance really I XQ XQ but appreciate for a this in good And in Okay, great. XQ. terms rate estimate for the kind ballpark what was back and quarter costs any controls of just of relative I thought

Brad Adams

we’ll I think back the up computer kick office back kind data and processing little see a of bit. for expense

stepping us new that of really got really a the coincides in ongoing positions with Second over expense, that months, isn’t we’ve of add out pleased some September in of Suburban will that Old estate my to complementing execution the real and real takes of those it. occupancy the job. October. excess also gotten It’s it in both great going the estate done. a way last this of acquisition six and or did acquisition, stepping into basically of about new out myself. back-ended that of line post team well The which with piece terms the We’re speed $XXX,XXX And account on come reflects kind on been we space West And into that quarter needs every

Jim Eccher

on XX disposed and of That the quarter. branches little three a color in we’ve put this includes to XXXX. just Just since that, beginning properties closed maybe

expect on well cost we’re ahead forward. and some of so, going out we to that have schedule lift saves, And of

Brad Adams

Yes.

of as solidly a post to like feel it’s the stuff one deal, cultural the direction. inside and And trending look been kind of is lot really we’ve bank. that well two years measuring the starting So, right in

accomplish, So, conversion hats both on it’s technical team we’ve a also to the conversion a pretty what to cultural standpoint off able and from been standpoint, been good.

Nathan Race

great hear. That’s to

million maybe of to together, is pieces rate like some all a probably million with those... good So put trying those $XX run to $XX

Brad Adams

so. Yes, I think

right. think the better little feels then than third about fourth in I the and that be a that we’ll quarter

Nathan Race

back. all I believe great. had. I’ll that’s you. Okay, I step Thank

Brad Adams

Thanks, Nate.

Operator

next is Chris coming Our KBW. McGratty with question from

Chris McGratty

Brad, week Interested X, sensitivity? NIM for the for much rest in in Like, scenario kind we obviously anywhere ‘XX risk then the downside second. if if of how just that you what rate the the risk But steady at of a Expectations that is see X to or would cuts. reducing next the played to your for curve? NIM out, been given margin get between going you’ve back the -- forward and how so are year. has high then a be

Brad Adams

right. All

the -- this terms probably conservative in if firmly of But, next rate at here. I’m I that’s week feel overly hike you’re think do, we prudent gut So, what will margin point. being get but territory that so in

next In landing an -- animal kind it’s assume over and terms XX soft it’s let’s of that that basis-point cuts say, in year, rate the let’s say, spread actually year. lives of nature exists as

where would it X trend towards we’re X.XX probably would there but modest don’t envision from a while advantage, And first get the X.XX there. It my slow loses a the crappier run scenario, are the be you and be funding that a zero. to Second In in at me we scenario. basically a take margin Let Old would that X.XX we we today. its zero hanging kind cuts, you is back better I to absolute a But rate to which scenario and where to scenario, say go in zero out of the deposit core have, slow. scenario would the do in base guess,

Chris McGratty

reserve then percentage...? actual quantified a that, you Did And that. the you is could office. big you what you or -- That you reserve Thanks quantify the mentioned for Okay. on have reasonable. have

Jim Eccher

of XX%. north It’s

Brad Adams

On Chicago...

Jim Eccher

see on one most We is we well. the property got we’ve good is as that pretty which office, where only stress. suburban Chicago reserve At a duress. office under that have sized And

Chris McGratty

number. -- dollar a big the office? what’s What’s that’s And of Chicago

Jim Eccher

I have that.

it’s that’s $XX think X-storey roughly -- building. I million,

We are one quarter, seeing last on commented -- Chris. I that’s

got We’ve to assist some build-out. leasing finally the are to some up that. that’s to activity also a see with looking on of We equity new encouraged sponsor pick secure good

the is that optimistic one right in we’re trending this So, direction.

Chris McGratty

rest -- is -- the quarter. identified of is on is this last this Chicago? is right? this about This Jim, XX% credit, There’s one specific your the the -- you But what

Jim Eccher

office The portfolio. whole

Brad Adams

is portfolio and across this a downtown We’ve reserve the portfolio. and of both is X% the suburban. got and X.X% in -- have we approaching aggregate office, on entire

Jim Eccher

on the XX portfolio, On entire over office Chicago office.

Brad Adams

downtown On office.

Operator

Our Jeff next from D.A. Rulis question with is Davidson. coming

Jeff Rulis

but Just check runoff, trended, of into deposit on not front-end for that in balances rate loaded. being in pretty later I the covered and wanted side. I really, to you deposit the the that quarter and quarter much third the well, guess, the rate, think -- how to on the alluded guess, but has funding you kind so balances pretty I expectations

Brad Adams

for been deposits better more of stable than So, have part the X.X-month.

the So, very deposits character to with I’d were XXXX, was was of in anybody to that just entirely second of the The XXXX top back thing terms of a was in It able is the wasn’t leave the latter what quarter of that half running over like quarter, this tell in, kind stable. coming after half in second base. of the through second across people granular happening. I when

run-up. of not the both of just on the very the here It’s base leakage a is kind top overall. any coming then mirrors on and a just it outflow. is happening off mirror of account. in It’s or kind hundred of thing happening it’s of just granular big dollars debt image image It’s couple there what’s And every reverse and same the it the also consumer and And trend.

terms what just nothing’s bank. burn. we’re in the we’re that like it depositors of that So, have have million X liquidity a really But doing. And very just few than in fortunate more enough feels changed we

regard. a just So, we’re in duck of that kind different

Jeff Rulis

sort for you numbers specific you if through the either progress had takes. the And and of puts margin you the Obviously, looking monthly could, then, you. I some have general do trend, or Got quarter? as just

Brad Adams

That’s The absent purely margin if of I’m what on day Our debt is to is, communicate count balance sheet. payoff nothing And that the impact the would is we quarter a first doing delta is the unforecastable. up Jeff. an anything, have have would the measures quarter. trying I not much, margin is flat. in else If quarter given reported in peak all first kind changes of on sold margin we said hadn’t entirely securities, was it realistic stable.

Jeff Rulis

it. Got

I’ll Okay. back. Pretty step straightforward. Thanks.

Operator

Thank you.

from is question next Raymond coming Long James. with Our David

David Long

your get wanted a acquire to and Just on talent. little hire color to appetite more more

loan but obviously demand, got some market. the You’ve disruption declining in

business So, opportunities a how balance the market talent? to in with with from do you on perspective the the opportunities bring --

Jim Eccher

find I end investment to the If long certainly question. right. it haul. David, are demand tepid. that Yes, team, But the we loan I to making make you’re we’re today to good mean, try because an is we going obviously pretty tend for market take we view. long mean,

be We a look demand year far continue funding of we as But pretty will new business. a some in But to to are as lot couple of talent. actively seeing the we muted for this expect verticals. new of balance

David Long

or is for specifically the you you guys for are when you’re what large pass, And best regard? talent, bank Do passed qualities you’re with situation bank in prefer bankers looking community for? the looking a that what

Jim Eccher

Yes.

growth we’re So, significant Chicago still market. our seeing is where from

of technology get different just so, a are looking And deals banks for we’re has larger about ability lenders quite bank looking larger done. to experience for bank. probably and a talking metrics, from a the way you’re the frankly, And that by that than

typically the to hire. that’s where So, seen we’ve opportunities

David Long

hiring? -- Brad? is discussions expense your it. expectations Got your are that on Is outlook, on built into And

Brad Adams

It is, yes.

Operator

Janney with question from next Montgomery. coming Martin Our is Brian

Brian Martin

clarification or the Jim on office, on that Brad. question either one Just

dollars on other, make just office and sure how what between just much total was? in the and split that clear exposure I’m to the is Just Chicago

Jim Eccher

Chicago. Yes. in exposure in We’ve million got office about $XX

obviously, So much. not very

in $XX got that Our it And total office Chicago. reserved we’ve million. XX% exposure is million, of of $XXX about about

Brian Martin

Got you.

Okay. All right.

suburbs. piece the is So, the other

of outlook far sales, guess, kind your I how comments that or any as security timing just your color there? about or on expect in on much terms the of Brad, give can then, you to margin, as you further additional do And Okay. just

Brad Adams

of the the what and completely consensus was on last curve whole Fed last by for funds we’ve quarters. the and three It’s Kind -- feels flummoxed like mystified market and quarter, slow or steady. been of I done I two the shape carried by step real I nuts. And a rate thought I’d longer but believe I’ve down bit everybody see for on like was people think now, are gradually, yet the to higher away getting life. to that thing. in that animal

So, we’ll see.

supposed that hopefully rug is back the just return before is to know a the pretend we’ll goal not much it’s Our get before be, rug there, pull. securities warehouse securities portfolio of for kind when and But the portfolio I the like hopefully the to securities is. is a rug too don’t for us duration, but pull, before typically, pull. what type to XX% position to which more variable

So we’ll see.

Brian Martin

that, percent And on variable is today what Okay. Brad?

Brad Adams

when just nobody inflation XX%. buying a out -- over the We hand real Over over was XX% stuff fist. It thought were peaked around thing.

Brian Martin

Got you. Yes.

production a on just then, in were versus payoffs a on Okay. And better. Jim, did were comment loan was just the doing on how some growth your then Kind of that just being of And said the you quarter? verticals that little bit softer. the kind shake there Maybe out? what comments that. little

Jim Eccher

Yes.

first and quarter. they the Payoffs So in $XX Brian, growth, the were were we what paydowns had Xx quarter. in in million

clients lot from over a seeing on had capital week, of not commercial loan a and But of million and lot back. here cost we we’re our probably X payoffs. Brad pull here out, paydowns certainly higher we’re expecting over going with as of next of demand, $XXX mentioned, think I just just

seeing everything good in deal leasing pretty slowing still activity verticals, but finance our and is We’re really sponsored else down.

Brian Martin

your you to But -- do slow? just expect were they as far Xx... I production. if payoffs payoffs, hear the I as comments about guess And Okay. the

Jim Eccher

But accelerated Payoffs Brian. normally payoffs, would quarter last you payoffs moderate in quarter off are to mean, several sales. I had lower paydowns we property hard would third right? rate expect levels. due predict, to a large expect I quarter environment, second rising to

Brian Martin

Got you.

the to it mean, like Certainly, you the the be there’s nonperforming Okay. material already far do the as expect sounds And over in quarters? know. I improvement, as some I next of the timing, couple potential occurring... don’t improvement

Brad Adams

We we Yes. didn’t. wouldn’t mention it if

I last won’t people it fast. the that be consider think if move-up material, quarter

will I think yes. it people, matter to

Brian Martin

Yes.

half of a just second comments the include comment, okay, reducing -- debt which that’s also Brad, give the year. your the that And senior sensitivity on payoff just Brad, you margin, And too, in Okay. benefit. your securities the incorporates would

think X basis was said I you it points.

Brad Adams

that the -- replaced for basis-point at that it’s $XX improvement is assumes And Yes. dollar obviously X fund’s million dollar rate. Fed overnight

even So I’m we to be substantial on it that extent are, better more able than to that do than which could the we’re replacement funding, hopeful that.

Brian Martin

Yes.

flat with your But Okay. stuff. other guidance includes that benefit some give-up the on

okay. So,

Brad Adams

Yes.

Operator

you. Thank

of session. end the our reached have question-and-answer We

Eccher for now to any back turn closing over remarks. Mr. will I So

Jim Eccher

joining we next forward to again with everyone Thank you you this quarter. for and speaking us look Okay. morning, Goodbye.

Operator

we Thank you today’s this may time, and conference, participation. for you. concludes disconnect you thank at your and This lines your

Old Second Bancorp (OSBC) 20 Jul 232023 Q2 Earnings call transcript