OSBC - Earnings call transcript Q2 2024 | Old Second Bancorp, Inc.

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Operator

Good morning, everyone, and thank you for joining us today for Old Second Bancorp, Inc.

Second Quarter 2024 Earnings Call.

On the call today are Jim Eccher, the company's Chairman, President and CEO; Brad Adams, the company's COO and 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 we to certain will measures. not statements. On such non-GAAP does call, today's also company any update duty forward-looking financial The be discussing non-GAAP Investor our website their oldsecond.com, on reconciled earnings These and which at described under homepage, in the release, on counterparts tab. our to available is the are measures Relations GAAP and

I will turn Now it Eccher. over to Jim

James Eccher

and opening with for then certain remarks Brad per return was X.XX%. details. summary and was everyone, we I about quarter us. morning, of share to joining the comments questions. Net million it thank on overview up turn you assets quarter will $XX.X over second the for and I the diluted future open several income and XXXX, to for Good give would before in thoughts my prepared conclude have $X.XX additional or the it of like

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

by provision by $X.XX were share. significant reduced earnings earnings after-tax XXXX the losses the loan growth, million of for $X.X negatively per quarter absence in credit which Second impacted of diluted

positioning very equity despite about points increasing to However, Old exceptionally tangible remains and this by good our sheet the second Tier at in sheet profitability, XX.XX% point. and strengthening X.XX%. our feel with profitability XX XXXX, Second balance basis Common to we linked continues increased quarter strong, equity this ratio X balance of quarter and

interest pre-provision and strong. exceptionally financials continue positively stable remained Our net revenues higher be by rates, to impacted market

interest-bearing increased driven accepting expense in $XXX,XXX pricing and expense on The deposits. XX.X%. compared period, or $X.X commercial average decreased certain remixing due million to assets and interest second the liabilities XXXX or average to prior income For interest rate the X.X% on on while is primarily like quarter earning of increase year

as reduced our quarter offered quarter on interest borrowings other XXXX, quarter daily second compared offsetting XXXX million were of $XX reduced. And less actions prior were some the on linked interest expense and we in rates debt. These from average and needs significantly deposits. second and the Our borrowings higher growth of in to retired the borrowings expense stemming other short-term of senior year-over-year the of quarter funding

XXXX first few quarter during increase large quarter. of million loans net was portfolios, payoffs million credits the quarter, from XXXX. in Comparably, an commercial, a XXXX a decrease growth of and construction second The and reflected on loans primarily prior $X.X quarter of of second linked growth to loan total the due lease in the in the million in net of quarter $XX.X $XX.X of

and quarter, up second of optimism XXXX. XXXX. By yields point providing second increase loan their year-over-year. second market sought of in quarter for for activities. the XX XX margin at loans, this loan Xx in as our compared business by has Currently, historical first of had point quarter the to picked prior months basis driven increases X from and second year. Net offset commercial partially reflected and and committee level quarter late pipelines to half up costs. market basis during loan higher of our continuing a The funding rates rate in higher XX/XX/XX, the on Loan the highest slightly increased interest and growth XXXX, those XXXX to within the increases quarters the the third increase due XXXX second about rates quarter interest a by in linked are the funding variable securities to increase realized customers growth were anomaly seasonal trends year savvy was late and in demand tempered the rate quarter an is first bank growth as and to due activity of quarter loan

on X.XX% of increased costs XXXX. margin both quarter period second remained deposit first in the was stable The compared to margins and for X.XX% and of to deposit due impact year. the balances. and net as XX% portion June second relatively year-over-year well to both in X.XX% compared of equivalent borrowing quarter due the the XXth in and as XX% securities interest short-term XXXX, the of quarter and ratio rates last The our growth increases loan for tax the time was quarter Funding XXXX XX, loan-to-deposit and variable the as of XX% rising rates portfolio the last to of base costs. The of as June

Brad we let talk be optimization. balance about have focus a sheet said, to in continues this I'll moment. As our

improving of last The late noted year. modern credits, saw continued substandard on taken second actions trends quarter primarily since and XXXX asset metrics quality remediation

of approximately belief X% including office and XXXX than remains third health to special the quarter in nearly criticized substantially XXXX. $XX approximately $XX.X peak than more than the of of from of Second lowest large and $XXX.X years. less their little point year-end or credit quarter throughout or loans two represented million, improvement in Old year. further loans inflection in levels substandard loans of of end mention the ago rest loans in the are commercial and million criticized than to and year first peak the XXXX quarter an are for one of second and end our at Encouragingly, trends. million of more of over more downgrading of which the Our million X% At below fourth accelerating quarter XXXX, remains XX% a our from through that loans at a loans real $XXX amounts 'XX the began went estate XXXX. Substandard the care XXXX, decreased and down is expectation XX% levels. The

substantial as a for in property. expect enough in a a of of determinative heavily dependent hopeful significantly such positions in real upon estate flow a the percentage large to relatively credits. number the less resolution second estate equity the as Movement of impair near in the some future is realized to real at rates of half nonperformers the realization losses we interest given continue cash costly rates, market valuations We recover XXXX. Commercial level commercial of seen, have remain can of primary the and are we

the addressing and and Additionally, the health office residual abated. believe flow brought been declining proactive cash commercial not in interest We appraisal realistic upon by real estate care has commercial from pandemic, in have facing rates, values real stress, and pressures. we higher estate loans deterioration

$X.X loan, previously call final one the period quarter million the $X.X specific As well sale the with charge-offs $XXX,XXX quarter $X.X million a the we quarter good recorded the first current the expectations, XXXX. our second consistent of discussed to remains on related of compared in One were charge-offs note related offset $XXX,XXX to remainder net net of to charge-off in that to by last $X.X of transfer we million charge-offs quarter million is allocated on news a criticized recoveries a XXXX. The decline portfolio and classified of during OREO of partially and and behaved. loans to of second of continue and approximately

has rate transitioned stress us the for our testing not higher and loan portfolio flags into new raised red this has seasoning any environment. Continued and is of bulk

estate We at this the XX, asset years reflects the repeating X- quarter to allocations the said but criticized on real stress. disappointed allowance The June of XXXX, on loss that in on for from has us X.X% $XX.X short $XX.X loans remain largely future and level a and the of relates duration commercial reduction since loans. offer ago. The We put side change total reduction March loans in forecasts vanguard in XX, of to probably last credit allowance of worth did in have used in or also total loans, million GDP June terms being quarter-over-linked it's XXXX, was fairly decreased which commercial which from a substandard XX-year real remained million as maturities provision XX, not rate or losses few our estate assets Unemployment at static of XX% assets XXXX. X.X% quarter. assumptions before,

total The realized should our to quarter-over-linked be noted think continues wealth on fees, second sale property. continued of strong XXXX, confident of expense of gain quarter, in linked no and the will quarter profitability, quarter, income, and rights weak impact of card-related was mark-to-market. linked aggressive the in discipline the that quarter credits linked with management of continuing the due and benefit in benefit one life XXXX salaries noninterest Expense the I a $XXX,XXX to income the of quarter with the benefits and contract be or excluding of mortgage strong death servicing with with less mortgage and OREO period. in strength perform prior we well BOLI $XXX,XXX second than prior on an reductions year to employee primarily banking portfolios. Noninterest growth of investors we income that in addressing remain know our level

Our excellent. efficiency ratio continues to be

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

Bradley Adams

interest portfolios $XX.X to this basis linked points. in a increase be points modestly. cost the basis NIM margin relative like point than and million to a surpassed yield offset basis first the basis for and higher X.X% was basis the Net last quarter. ended from the to compared yields of basis XX million, to Thank quarter. Securities the The to result tax performance of points Total XXXX. second X increase equivalent point the X loan quarter $X.X decreased was interest-bearing increased or by liabilities a and to interest-earning you, prior the We our down increased income point ago X.XX expectations quarter XXth X were of $XX,XXX million deposits quarter X $XX.X compared continues assets to yields XX by the points partially in of quarter believe variable aggregate. quarter Jim. portion June to increase X.XX or XXX end in to the X.X% basis due interest-bearing This year on exceptional

of duration feel not easier expectation linked without loan Deposit in flat exceptionally difficult order and on that our NII Deposit deposits in remain from pressures. Marginal what flows are pressure marginal does at in allocated borrowing trends Second headwind quarter Rate unattractive seasonality pricing Old absence significant treasury declines of offer the overall decreased outlook markets I basis, largely the inflationary deposits more fixed and more provided in returns a of and to modest in to a the corner $XX.X growth real is from duration, total believe level My alternative. for extending growth, quarter. aggressive to life. demand actually we year add the an than to remain On as this period-end million million position remain Average point for attractive kill improving. around year. expected consumption. the and this albeit overall totality, to continued In income this $X.X an continuing performance overnight is margin at we markets quarter equity real made spreads they for markets signs is not are and curve funds prior have growth than progress and quarter remains like. stabilization and but in costs. to would decreased pricing the poor cuts relative overcome is the last swell bit pace loan of realistic a are outsized Public continue right still we saw display far to a

industry, maximizing deeply and our compounding in inverted curve poor we of ensures on book returns. so continuing spreads yield focus value to are Regardless

will XX.X% capital. added a going are evidenced an loan the be cuts the astonishing in capital to For appropriately. The us, with all It's over maybe at a NII avenue a occur, slightly that and $X.XX being some source a as to means second low improvement XX trends that is the points. from means pricing year being to the be will growth. The of point portfolio as linked expected for XXX our continue book few been are basis And basis per at from a times expenses I'm remainder we result, with remains ability this points do remains. at point Absolute would least this TCE margin over moments. If a of the the I we Old tangible to last months. securities careful. risk quarter, ratio share are the few protected have two careful a down. better Credit we and should lose ratio to expect find quarter liquidity our function fair couple relatively ability have actually of rate growth basis flat, ask wrong levels securities of Second value and which we by What people in question. TCE build loan-to-deposit XX year. and

always but I that occurs. I'm wrong, to try safe Sometimes be when

capital table. today M&A come accruals that benefits incentive the a due continue A well belief Building to seasonal is gain the return from past, recent and OREO costs it's previous in will excess payroll return small buyback an $XXX,XXX to a capital primarily capital. like looks decrease quarter, conviction relative recorded levels place I will to on first is expense opportunity to in and quarter a taxes reduction does small of and in in in paid to a interesting. related timing due occupancy get to have invest earns nice primarily that be we sale. as and officer salaries the coming, is the to due a that as an starting not as on If considered to Dividend the fruition, and maintenance well. Noninterest decreased

Quarterly going last to and term. quarter, closer are in near $XX rate run the As benefits wages noted million, forward

but have while performance, revenue running ability for now, maintain the dial investment conditions we back been warrant. a Given if costs employee will the to high

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

James Eccher

that and closing, are are our Thanks, in the Brad. we balance In ahead. confident opportunities sheet

efficiency continuing well statement this The year. That and income earning the rates. mix are and interest are portfolio expectation efficiency margin levels. asset positioned monitoring deliver a stable remains risks Net the reduce to to our Our trends record loan we focus within our at prepared for solid and me overall order in gives to optimizing morning. sensitivity concludes assessing on remains confidence comments interest

I'll moderator So it I'll turn and questions. for to the open it over up

Operator

Jeff [Operator we Rulis from Instructions] Davidson. our do D.A. And have question first here.

Jeff Rulis

the off Chicago talked the office the could. timing maybe we update on California just Brad, care, we to side, I'll an possibly stay update an just and try get credit either on credits status, to capital if question. on the or But about Health

James Eccher

other charge we execute that And big was this quarter, out the think charge-offs. that this horizon several million. And was had for the sale a have been Sure. quarters. that extent note story They credits building One Chicago the Well, here I we the we required was both office pain on we $X.X of two of $X that took took really, additional able the a quarter. that the major then charge. about final were to on that million were

good resolving feel those we So two. about

what more I with than should on nonaccrual dozen significant made a loans that that reducing know we've think this quarter we resolved. headway credits investors

a $X have the against portfolio reserve north a X%. the still watching part of Office obviously of got in Office, Chicago as far now we're very entire We've As million exposure, We portfolio over. only important that in $XX suburbs. million million $XX and in the

has in and our seen we've red well. a no pretty So arms occupancy Health that and actually see new but portfolio in if care some process, around that remediation performance. improvement slower we've been got feel starting pop flags we up to like

Jeff Rulis

the Jim, just tone, sounded chunkier than And back expectation modest to the ahead? barring like losses the confirm, is half, surprises second and expect your more to the if net the on charge-off you'd of kind seems that half outlook, as be it just

James Eccher

quarters Yes, remediation, very charges the I I in see anyway. but feel in momentum that's correct. still strong don't is chunkier coming credit

Jeff Rulis

that it's of And of the pipeline second just low -- that growth what maybe you sense kind like? pickup frame maybe your market up is in-house? of combo I a Is get then you're like Do wanted looks something more question And feel is doing or picking half second could of the the you of part both? or up that? trends. on the mid-single-digit into hop kind that to

James Eccher

I this Jeff, disciplined, pretty were seen. have We that been half say we've spreads first liked seeing we the the risk-adjusted not to mean I have Yes. year. would of would

more now sidelines. and encouraged hopefully, them would got mid-single-digit opportunities. this growth for our the I'm low XQ were really are year. that get and of I broad-based about pipelines along we we verticals And what across on the We've finish line here, expect many seen the XQ is but So to to

Operator

We now hear sorry, from we McEvoy Chris McGratty Stephens. KBW. with with I'm have Terry

Terence McEvoy

in if half be year. The and year. bit outlook the Maybe last outlook question and just second call I half came of second expenses the for would could what overall a ask discussed of curious it the expense was this on the above with for a your personnel the on

Bradley Adams

flat. Relatively above -- But I that so said level. million last quarter. maybe $XXX,XXX I a $XX thought

Second about your that budget is always is half to incentive overall works of year the how relative how year and tracking accruals. with performance

can be $XXX,XXX It's market who kind horseshoes any real close. hire don't wrong any have hand I been coming still improved. at in anything don't us labor to thing. and you darn So of conditions of see by But quarter wanted. and given I kind surprises see We've grenades at a be point. we this able pretty

over and really expense good things. So on a happy I'm and a very where we secret It's also we I it's say, no job are. I'll I the think years. last have feel over lid with last wildly we've are three what the trends like keeping inflationary year time, done done been broadly a

Terence McEvoy

happened materialize. CRE wasn't And to losses loans That obviously seems then that that's there mature, what last when be when the fears quarter.

are how you potential maturities million and loans it QX And there? at reserve into So Are content those the was $XX thinking of QX? of built million ultimately, loss look in when I today? $XX the about

Bradley Adams

XX the we a like of were years alone and so. There of is while at a people to years two now. people that surprises we've been been that Yes. we parties. cocktail months looked out in coming, for And ago now. two downgrading maturities function we you were cynical better maturities less than why want part talk for no credits to have at depressing on depressed doing We've wouldn't are upcoming That's cynical felt very

that of Jim back the and I garden maturities, That's ball XXXX. and the game to industry through XXXX preponderance played offer in. to we has our bowling hose XX-year which in think alluded of X- that a kind a not been

shop, asset in is we at short-duration So terms nothing we're outsized unexpected or either us I There's believe maturities. have been. will coming a of always be. that always

Terence McEvoy

And I then said to maybe been one quote get last one, is starting the you Brad, have think interesting, M&A there. might

So mean there. of statement ask to take the question to I don't a bait your but capital on have kind

Bradley Adams

Yes.

Our strategy to -- have has statements capital. been been our build

there that. I to think do that are several reasons

the The this the years at capital over X.X% is XX first funding than in the nice last of point earns any now is that, a The which market. of is, cost return. greater point,

a return at darn it equity good, So using on this levered pretty not you're even point. is if

you throw it recession with both to it's also been people based, low of to towel. difficult have So talk allows returns, if economic like is That some margin in But margin a the corner, industry, to is begin around about. in our also they of people might something that's safety. have the a safety which times are very

that's exceptionally on if hasn't us. question. so If opportunity, capital happen that a disciplined that I capital. accretion. I cash return And have we you tell get will said, we deal, to price, an you don't will But know We the do I get whether can changed. don't opportunity, for we going be the as can we an a realize balance to is deal flexibility I in include

Operator

McGratty We now have Christian KBW. for

Bradley Adams

having you are Chris, [indiscernible]? trouble

Christopher McGratty

hear me can The now, you optimization Brad? --

Bradley Adams

Yes, can. I

Christopher McGratty

prepared Obviously, bit in mentioned and what's Just the a month? Jim. The you of left couple do? left do? of What's environment coming hard portfolio was bond us probably on help of times because by in hedging that. this curve. optimization to a the the every little to is off balance remarks What's But sheet

Bradley Adams

is which be if the come portfolio. long get lot by take think and back If I'd a a with bond we steepening, to steepening -- more portfolio offer that, whether less aggressively the it's like and size the level steepening. did bond we simply scenario. I the level. of obviously, selling things that off know ideal end variable would loan the out I can coming. we then off XX% a growth people what That meant the reduce would had it securities overall curve I would do XX% the aberration What the from we large I bulk If a become don't we've of falling we is the that better. end are. us pickup smarter don't for short interest in errand. are a percentage like their of to to investors in is than a XX up yield. know wind what And people is shore, betting cup fool's driven this The picks and street Well, structure on recession bet see on quarter it's remind laddered tried of latter or with can we hand a a them up. with interest on be get have rates corners, pessimistic yield rates a will

be of wants will We if and sensitive rates a that deposit be bet are anybody because to making better that away would us a being And base. higher mistake. always good very off inherently

any rates rates we If we lose will doing invest are do high. environment. slightly But when short will and are earn better So nice we secret. we quite returns That's And wisely, worse. in capital no will we fall, well.

Christopher McGratty

the will because get kind Jim, follow-up, basis points NII a obviously, ratio, curve, the or and the just Maybe forward margins efficiency we go get commentary, we of Brad combining down. expense the if XXX

the ratio of if XXX futures is You're be on with But the markets like bit efficiency settling right, cuts? to obviously little going probably more careful cost. a where

Bradley Adams

I good very don't we given and our would was also to that. at and that to scale going take in ever rates, to given this mid- So see back it that the back zero from think don't think that low idea idiot low an a we're XXs above going resulted I things us I now. high size XXs And have XX, point. all high absolute But rates. think

world investors zero, aren't where rates a of. a have worth in more than fundamentally So most deposits memory are

So I points soon. that rates cross any XXX long think at short don't as as basis time

X% above we are structured margin as shot are We today.

Christopher McGratty

XXs with upper to mid- [indiscernible]? So

James Eccher

time Yes. potential where were optimized, were our We difference versus cut where loan-to-deposit on at a to The were in mid-XXs big scenario we to rates balance last were wasn't sitting going today ratio. right? just we be low with sheet our

So pretax we've pre-provision power earnings now. a stronger got much

Operator

Our is Nathan next questioner Race with Piper Sandler.

Nathan Race

In terms of the and is in runoff? funding more mostly can portfolio sourced securities does XQ imply bit expand loan growth that from little And in that be margin XQ, here to XQ? going maybe a

Bradley Adams

had that is on growth. We or borrowings loan I come a it happen see believe lumpiness the trending growth that deposit up this and that say growth at reason strong, to wasn't quarter. bit I grow. see I would this bond half you it quarter. will that in would overnight like deposit don't would which We least out you if expectation why my any direction, Yes, deposits margin. It can't may may say of see up portfolio, tick we had some go last flat is the quarter. of

Nathan Race

just with can the on XX you And remind us each the then, cut impact the Brad, from margin third?

Bradley Adams

and earlier X basis point then [indiscernible]. X decline to A

Nathan Race

out coming in us remind just have of both the the you can rate of the quarter? floating in on and assets terms securities you balance that And loans sheet,

Bradley Adams

generally about X. duration but over balance an portion About of the little a the sheet effective We're fixed has XX-XX, XX%.

at pickup rates when weight, well. deposit and costs down about us So And there a question of down. the looking that. the a will But you of is no hit and get will also you come as funding free that's without lot start growth benefit

Nathan Race

of sounds It one. But out kind here to imagine just thoughts quarter. level loans? in in coming to of cleanup -- want last like of charge-offs on may that guys reserve total be may third those relative should are see out additional where terms Any for. quarter. settle you largely some already allocated And the be what one Just there I the third the

James Eccher

Yes.

question, of a loans progress in answer quarter. think on magnitude is on based an earlier us. these loans your have the total this charge-offs the I progress percentage as at the for some of reserve level this levels remediation appropriate and probably don't see half But making a already year to we're second the of of realized number I

in level a where is So close I proximity think at we're appropriate. now reserve

Operator

hear from with Long now David Raymond We James.

David Long

do to wanted deposit pricing. much base, do lowest of deposit deposit the pretty among I'm peer accounts. How costs a of the the X% in guys half Obviously, I offers, you I nice plus still Brad, about marketplace, for back on savings you we ask reside, core total group some getting costs have deposit where much great your total you longer that see you the deposit for how if Old the for higher stay see year, higher changing? Second your

Bradley Adams

that what's deposits. that of deposits with retail for any is became as around ourselves, duration. happens. at bank consumers. down is good got on here a is a bank, time deposit deposits XX% time We a which or curve XX% a of I XX% a across And And level like the is that's zero probably mix what bad going largely So think such because deal natural

primary probably just not going I the and reason So that's transition, trending it don't of there time shouldn't start be back thing. we're why deposits that became that, XX% in simply a to a pickup and is costs seeing going us. towards be shift deposit mix. what any we'll for time is a deposit see determine mix that And and now

lot is there a that Now a percentage of of the deposit money. base is

everybody than lower much that's us, else. For

more that have million them. accounts few or very in have $XX than million We $XX

toes. and them count fingers can on You

income results simply that's seen in you've deal markets what not and and costs that for big banks that be fighting we're So for a customer, simply money our are in our for win. industry, the in should better fixed in that not doing. fixed that markets a game with industry, income to pickups deposit That's

with duration funds banks higher. true fixed income funding were portfolio. stuck. to because diversified got a public large they And that's It's happens and fight and rates should customers you're what simply that wrong when are have liquidity low going wildly Sophisticated for commercial when markets having

not simply stuck. are We

David Long

things, And the commercial, concerned there C&I book? need the is about? performance from the of and closely officers more office about C&I then are regulators of watched your credit a bit more look on lot side a more needs to talk segments there be little Chief that to C&I. any at of How particularly you're And that Hearing Card space. more

James Eccher

Yes.

portfolio is X/X think think, far, little $XX holding of pleased less C&I, now only that in very in classified over about, I is I C&I our so which our up book. a about than got we're portfolio million We've about, well.

seen that we that But of stress. on. top But of behaving are clients watchful relatively we're our eye sheet in C&I. low that very balance have of and still an obviously of well. lot and C&I couple portfolio good pretty a portion line results. variable producing large, leverage a right little We bit We're keeping credits a is by it's seeing have with But a significant very now,

Operator

have Martin We Janney Scott. now with Brian Montgomery

Brian Martin

book, year. off XX% just a answered are that sounds percentage variable much but for bit of It just quarter. just is it clarity, questions that rate, this And I coming the half how my on Brad, the about securities like think second the it quarter. of of in on the Most is dropped securities of last the was portfolio,

Bradley Adams

bulk were when we've that beside the the not better much. quite quarter. are securities of to I there volatility means and variable is seen not seen we've dropping deal, that volatility has Yes, times for second are that been simply of much the that a Yes, the they type mean,

take money. for So your value best the you

I bond expect would the the the $XXX no off coming million less year. over of portfolio, terms remainder than of In

fine feels ago, support bulk need loan minutes of growth said I the we for half it at So a least very good. the to it. few flexibility feel all

Brian Martin

comes what, $XXX Yes. pretty is mean, that off low at Brad? million? And a that rate I it

Bradley Adams

$XXX which or it's portfolio, overall Yes. I I the million lower something think mean blended like certainly securities than that. like is

significantly lower that. it's than So

Brian Martin

point this year? the the commentary, slower Is be progress guess, kind made it then this any nonperformers just resolutions to credit or costly. at mean some some the of the the the or during seem kind the just of half decline meaningful But given in front, lifting heavy lumpy decline you And of back you quarter of you've the on as of terms of expect you the you in now half do less I more and of sit of here another expect classified a I criticized year? the back resolutions done?

James Eccher

Momentum $XX nonaccruals good. I don't Yes. What's we into obviously, some get We quarter, already know million a I only next we a XX% fronts. realizing this million number encouraging are there's reduction migration been a $X is reduction. nonaccrual we'll and little on mean saw, remediation very of is in but saw quarter. if

a and momentum some working So when to have that credits to you you we slowdown in really quarter. out migration expect in the next that allows continue

Brian Martin

And then least questions two Brad, capital. getting not on to disappoint at you on

a if you possibility that that You go the -- profitability then here, second one talked -- would would banks, making it the pricing route, what of the at about kind knew sense. where it's I you guess, of if look it of your had about route there you can at least one, outlook rally that you're go attractive? was market some more think in you given the changed of pricing as as the buyback. how the I But you on And

Bradley Adams

with is talk probably what it book something started I month. about [indiscernible] XX% big No. of when buyback XX%, a about value smug bought back relative it's over I think or up slug there. or something. is. it don't would really know year ultimately, and Tangible we same. at and that, relative it's like flirting all been the a a I ago changed. It's our XX%, XX% it's I a basis, stock -- acted on like But could the Certainly, is stock have a have game up nothing's

Operator

the have the to James turn question-and-answer and over will end I We Eccher closing remarks. now call reached back of session, for the

James Eccher

company, our forward and next a in day. look speaking with and Goodbye, interest your we great quarter. to again you for everyone, Thanks, Okay. have

Operator

and conference, lines your This may at time. you participation. does for conclude you this disconnect today's your Thank

Old Second Bancorp (OSBC) 18 Jul 242024 Q2 Earnings call transcript