AURORA, IL / ACCESSWIRE / April 20, 2016 / 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 first quarter of 2016. The Company reported net income of $3.3 million for the first quarter of 2016, compared to net income of $3.5 million in the first quarter of 2015. The Company's net income available to common stockholders of $3.3 million, or $0.11 per diluted share for the first quarter of 2016, compared to $2.7 million, or $0.09 per diluted share, in the first quarter of 2015.
Operating Results
- On April 19, 2016, the Registrant's board of directors declared a cash dividend of 1 cent per share payable on May 9, 2016, to stockholders of record as of April 29, 2016.
- First quarter 2016 net income available to common stockholders increased by $647,000, or 24.2%, from the first quarter of 2015 and decreased approximately 13.3% from the fourth quarter of 2015. When compared to the first quarter of 2015, the quarter reflects slightly higher net interest income, lower residential mortgage banking income, lower compensation costs and other real estate owned ("OREO") expenses.
- Noninterest expense of $16.3 million for the first quarter of 2016 was $889,000 or 5.2% lower than the results in the first quarter of 2015. OREO expense, net for the first quarter of 2016 declined $614,000, or 45.4% from the first quarter of 2015.
Capital Ratios
March 31, | December 31, |
| March 31, | |||||
2016 |
| 2015 | 2015 | |||||
The Bank's common equity tier 1 capital ratio | 14.37 | % | 14.10 | % | 16.88 | % | ||
The Company's common equity tier 1 capital ratio | 10.15 | % | 10.55 | % | 9.44 | % | ||
The Bank's total capital ratio | 15.49 | % | 15.23 | % | 18.14 | % | ||
The Company's total capital ratio | 15.58 | % | 15.56 | % | 17.28 | % | ||
The Company's tier 1 leverage capital ratio | 8.72 | % | 8.69 | % | 9.82 | % | ||
-The Bank ratios shown above exceed levels required to be considered "well capitalized."
Asset Quality & Earning Assets
- Nonperforming loans declined to $14.0 million at March 31, 2016, from $14.6 million at December 31, 2015, as nonaccrual loans were reduced.
- OREO assets decreased in the first quarter to end at $17.7 million on March 31, 2016 compared to $19.1 million at December 31, 2015. Valuation writedowns continued in the first quarter with a quarterly expense of $451,000 compared to $251,000 in the fourth quarter of 2015.
- Total loans at March 31, 2016 were $1.14 billion, reflecting an increase of $5.1 million when compared to December 31, 2015. First quarter 2016 average loans (including loans held-for-sale) were $1.14 billion, reflecting an increase of $1.6 million from the fourth quarter of 2015 and a decreased by $19.5 million when compared to the first quarter of 2015.
- Securities held-to-maturity at amortized cost total $246.0 million at March 31, 2016. This total compares to $247.7 million at December 31, 2015, and $257.3 million at March 31, 2015. March 31, 2016, available-for-sale securities at fair value totaled $500.9 million, which is an increase of $44.8 million from $456.1 million at December 31, 2015, and $399.3 million at March 31, 2015.
Management review of the loan portfolio concluded that neither a loan loss reserve release nor a loan loss provision was appropriate in the first quarter of 2016.
Non-GAAP Presentations: Management has traditionally 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 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, April 21, 2016, 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 May 5, 2016, by dialing 877-660-6853, using Conference ID #: 13633545.
Contact:
J. Douglas Cheatham
Chief Financial Officer
(630) 906-5484
SOURCE: Old Second Bancorp, Inc.
ReleaseID: 438936
