N/M - Not meaningful. Noninterest income increased $626,000, or 5.96%, in the second quarter of 2024, compared to the first quarter of 2024, and increased $2.9 million, or 35.3%, compared to the second quarter of 2023. The increase from the first quarter of 2024 was primarily driven by a $218,000 increase in wealth management income, an $893,000 death benefit realized on BOLI, and a $201,000 increase in card related income. Partially offsetting the increase in noninterest income from the prior quarter was a ...

Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights. The combined assessment of analysts suggests that 'Net Inte ...

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements. The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the n ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 000-10537 (Exact name of Registrant as specified in its charter) of incorporation or organization) Delaware 36-3143493 (State or ...

[Financial Highlights & Executive Summary](index=1&type=section&id=Financial%20Highlights%20%26%20Executive%20Summary) The company reported strong financial results for the quarter, highlighting key performance indicators and strategic achievements [First Quarter 2024 Performance Overview](index=1&type=section&id=First%20Quarter%202024%20Performance%20Overview) Old Second Bancorp reported strong Q1 2024 results with net income of $21.3 million, driven by profitability and capital growth | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | **Net Income (GAAP)** | $21.3 million | $18.2 million | $23.6 million | | **Diluted EPS (GAAP)** | $0.47 | $0.40 | $0.52 | | **Adjusted Net Income (Non-GAAP)** | $21.3 million | $19.1 million | $23.4 million | | **Adjusted Diluted EPS (Non-GAAP)** | $0.47 | $0.42 | $0.52 | - The sequential increase in net income from Q4 2023 was primarily driven by a **$4.5 million** decrease in the provision for credit losses and a **$1.8 million** increase in noninterest income. The year-over-year decrease was mainly due to a **$4.3 million** decline in net interest income caused by securities portfolio contraction and higher funding costs[16](index=16&type=chunk) - CEO Jim Eccher emphasized the company's strong performance, noting exceptional profitability (ROAA **1.51%**, ROATCE **17.8%**), a resilient net interest margin, and favorable asset quality trends. He also highlighted a **25%** year-over-year increase in tangible book value per share and a Common Equity Tier 1 ratio exceeding **12%**[26](index=26&type=chunk) - The Board of Directors declared a cash dividend of **$0.05** per share of common stock, payable on May 6, 2024[23](index=23&type=chunk) [Operating Results Analysis](index=6&type=section&id=Operating%20Results%20Analysis) Analysis of the company's operational performance, including net interest income, noninterest income, and expenses [Net Interest Income](index=6&type=section&id=Net%20Interest%20Income) Net interest income decreased to $59.8 million in Q1 2024, with NIM compressing to 4.55% due to rising funding costs | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | **Net Interest Income (GAAP)** | $59.8 million | $61.2 million | $64.1 million | | **Net Interest Margin (GAAP)** | 4.55% | 4.59% | 4.72% | | **Net Interest Margin (TE)** | 4.58% | 4.62% | 4.74% | - The yield on interest-earning assets increased by **6 basis points** compared to the linked quarter, driven by loan portfolio repricing. However, this was more than offset by rising funding costs[34](index=34&type=chunk) - The cost of interest-bearing deposits increased to **1.18%** in Q1 2024, up from **0.89%** in Q4 2023 and **0.25%** in Q1 2023. This was driven by exception pricing on select money market accounts and higher rates offered on time deposits to attract funds[38](index=38&type=chunk) - Borrowing costs decreased quarter-over-quarter due to a **$58.5 million** reduction in the average balance of other short-term borrowings (FHLB advances)[39](index=39&type=chunk) [Noninterest Income](index=9&type=section&id=Noninterest%20Income) Noninterest income significantly increased to $10.5 million in Q1 2024, driven by MSR adjustments and BOLI income | Noninterest Income Component | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Wealth management | $2,561 thousand | $2,600 thousand | $2,270 thousand | | Service charges on deposits | $2,415 thousand | $2,527 thousand | $2,424 thousand | | Residential mortgage banking revenue | $946 thousand | ($358 thousand) | $356 thousand | | MSRs mark to market gain (loss) | $94 thousand | ($1,277 thousand) | ($525 thousand) | | Securities gains (losses), net | $1 thousand | ($2 thousand) | ($1,675 thousand) | | Change in cash surrender value of BOLI | $1,172 thousand | $541 thousand | $242 thousand | | **Total Noninterest Income** | **$10,501 thousand** | **$8,729 thousand** | **$7,350 thousand** | - The **$1.8 million** sequential increase was primarily driven by a **$1.3 million** positive swing in residential mortgage banking revenue (due to MSRs mark-to-market gains) and a **$631,000** increase in BOLI income[42](index=42&type=chunk) [Noninterest Expense](index=10&type=section&id=Noninterest%20Expense) Noninterest expense rose to $38.2 million in Q1 2024, primarily due to increased salaries and benefits, impacting the efficiency ratio | Noninterest Expense Component | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $24,312 thousand | $21,405 thousand | $22,248 thousand | | Occupancy, furniture and equipment | $3,927 thousand | $3,817 thousand | $3,475 thousand | | Computer and data processing | $2,255 thousand | $2,291 thousand | $1,774 thousand | | **Total Noninterest Expense** | **$38,241 thousand** | **$37,026 thousand** | **$35,922 thousand** | | **Efficiency Ratio (GAAP)** | **53.59%** | **50.82%** | **47.52%** | - The sequential increase was primarily attributable to a **$2.9 million** rise in salaries and employee benefits, driven by restricted stock expense, officers' incentives, payroll taxes, and deferred executive compensation[50](index=50&type=chunk) - The year-over-year increase was mainly due to a **$2.1 million** increase in salaries and benefits, a **$452,000** increase in occupancy expenses, and a **$481,000** increase in computer and data processing costs[44](index=44&type=chunk) [Provision for Credit Losses](index=13&type=section&id=Provision%20for%20Credit%20Losses) Provision for credit losses decreased to $3.5 million in Q1 2024, with net charge-offs of $3.7 million from a single CRE borrower - The company recorded a provision for credit losses of **$3.5 million** in Q1 2024, compared to **$8.0 million** in Q4 2023 and **$3.5 million** in Q1 2023[19](index=19&type=chunk) - The Q1 provision consisted of a **$3.5 million** provision for loans and a **$44,000** reversal of provision for unfunded commitments[60](index=60&type=chunk) - Net charge-offs were **$3.7 million** in Q1 2024. The majority of these charge-offs were specific to one commercial real estate borrower, for which a **$3.9 million** specific allocation existed within the ACL at the end of 2023[60](index=60&type=chunk) [Balance Sheet and Asset Quality Analysis](index=5&type=section&id=Balance%20Sheet%20and%20Asset%20Quality%20Analysis) Overview of the company's financial position, focusing on loan portfolio, asset quality, and funding sources [Loans and Securities](index=5&type=section&id=Loans%20and%20Securities) Total loans decreased to $3.97 billion due to payoffs, and the securities portfolio contracted with widened unrealized losses | Loan Category | March 31, 2024 | Dec 31, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Commercial | $796.6 million | $841.7 million | (5.4)% | | Commercial real estate – investor | $1,018.4 million | $1,034.4 million | (1.6)% | | Commercial real estate – owner occupied | $782.6 million | $796.5 million | (1.7)% | | Leases | $425.6 million | $398.2 million | 6.9% | | **Total Loans** | **$3,969.4 million** | **$4,043.0 million** | **(1.8)%** | - The quarterly reduction in total loans was attributed to **$59.4 million** in payoffs on seven larger loans and a typical seasonal decline in first-quarter originations[52](index=52&type=chunk) - The securities portfolio decreased by **$24.0 million** QoQ to **$1.17 billion**. Net unrealized losses were **$85.0 million** at quarter-end, compared to **$84.2 million** at December 31, 2023[53](index=53&type=chunk) [Asset Quality](index=5&type=section&id=Asset%20Quality) Asset quality remained stable, with nonperforming loans decreasing to $65.1 million and classified loans modestly increasing | Asset Quality Metric | March 31, 2024 | Dec 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Nonperforming loans | $65.1 million | $68.8 million | $64.5 million | | Nonperforming loans to total loans | 1.6% | 1.7% | 1.6% | | Allowance for credit losses (ACL) | $44.1 million | $44.3 million | $53.4 million | | ACL to total loans | 1.1% | 1.1% | 1.3% | - The decrease in nonperforming loans during Q1 2024 was driven by a partial charge-off of **$3.9 million** for a commercial real estate-owner occupied loan[27](index=27&type=chunk) - Classified loans increased by **$2.7 million** from the prior quarter, primarily due to additions of **$15.9 million** (largely three relationships), which were partially offset by **$6.4 million** in upgrades and **$3.9 million** in charge-offs[59](index=59&type=chunk) [Deposits and Borrowings](index=14&type=section&id=Deposits%20and%20Borrowings) Total deposits grew to $4.61 billion, driven by CDs, while non-interest bearing deposits declined and borrowings decreased - Total deposits increased by **$37.5 million (0.8%)** QoQ to **$4.61 billion**. The growth was led by a **$58.7 million** increase in certificates of deposits, while non-interest bearing deposits declined by **$35.0 million**[65](index=65&type=chunk) - Short-term borrowings, consisting of FHLB advances, decreased significantly to **$220.0 million** as of March 31, 2024, compared to **$405.0 million** at the end of 2023[66](index=66&type=chunk) [Capital Position](index=3&type=section&id=Capital%20Position) Review of the company's capital adequacy and regulatory ratios, demonstrating financial strength [Capital Ratios](index=3&type=section&id=Capital%20Ratios) The company's capital position strengthened, with CET1 ratio improving to 12.02% and TCE/TA ratio increasing to 9.04% | Capital Ratio | March 31, 2024 | Dec 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | **Company Ratios** | | | | | Common equity tier 1 | 12.02% | 11.37% | 9.91% | | Tier 1 risk-based capital | 12.55% | 11.89% | 10.43% | | Total risk-based capital | 14.79% | 14.06% | 12.79% | | Tier 1 leverage | 10.47% | 10.06% | 8.56% | | **Other Ratios** | | | | | TCE / TA | 9.04% | 8.53% | 6.83% | | Tangible book value per share | $11.13 | $10.73 | $8.90 | [Financial Statements](index=17&type=section&id=Financial%20Statements) Presentation of the company's consolidated financial statements, including balance sheets and income statements [Consolidated Balance Sheets](index=17&type=section&id=Consolidated%20Balance%20Sheets) Unaudited consolidated balance sheets show total assets at $5.62 billion, a decrease driven by lower loans and securities | (In thousands) | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $98,094 | $100,145 | | Securities available-for-sale | $1,168,797 | $1,192,829 | | Net loans | $3,925,298 | $3,998,689 | | **Total assets** | **$5,616,072** | **$5,722,799** | | **Liabilities & Equity** | | | | Total deposits | $4,608,275 | $4,570,746 | | Other short-term borrowings | $220,000 | $405,000 | | **Total liabilities** | **$5,019,913** | **$5,145,518** | | **Total stockholders' equity** | **$596,159** | **$577,281** | [Consolidated Statements of Income](index=18&type=section&id=Consolidated%20Statements%20of%20Income) Unaudited consolidated statements of income show Q1 2024 net income at $21.3 million, impacted by lower net interest income and higher noninterest expense | (In thousands, except per share) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net interest and dividend income | $59,783 | $64,086 | | Provision for credit losses | $3,500 | $3,501 | | Noninterest income | $10,501 | $7,350 | | Noninterest expense | $38,241 | $35,922 | | Income before income taxes | $28,543 | $32,013 | | **Net income** | **$21,312** | **$23,607** | | **Diluted earnings per share** | **$0.47** | **$0.52** | [Quarterly Financial Data](index=19&type=section&id=Quarterly%20Financial%20Data) Key unaudited financial data for the past five quarters shows declining total assets and moderating net income | (In thousands) | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | $5,676,723 | $5,694,734 | $5,778,518 | $5,911,491 | $5,898,647 | | **Total Deposits** | $4,580,424 | $4,577,734 | $4,658,064 | $4,794,068 | $4,998,349 | | **Net Interest Income** | $59,783 | $61,235 | $63,030 | $63,580 | $64,086 | | **Net Income** | $21,312 | $18,225 | $24,335 | $25,562 | $23,607 | [Non-GAAP Reconciliations](index=21&type=section&id=Non-GAAP%20Reconciliations) Reconciliation of non-GAAP financial measures to their most comparable GAAP equivalents for enhanced transparency [Reconciliation of Non-GAAP Measures](index=21&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Detailed reconciliations of non-GAAP financial measures to GAAP counterparts provide additional insight into performance - The company considers select non-GAAP financial measures useful for decision-making and evaluating period-to-period comparisons by excluding items not indicative of primary business operating results[2](index=2&type=chunk) | Reconciliation (In thousands) | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | **Net Income (GAAP)** | **$21,312** | **$18,225** | **$23,607** | | Pre-tax adjustments: | | | | | Litigation related expenses | - | $1,200 | - | | Losses/(gains) on branch sales, net | - | $19 | ($306) | | **Adjusted Net Income (Non-GAAP)** | **$21,312** | **$19,116** | **$23,381** | | Performance Ratios (Non-GAAP) | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net interest margin (TE) | 4.58% | 4.62% | 4.74% | | Adjusted efficiency ratio | 53.09% | 48.76% | 47.66% | | Return on avg. tangible common equity | 17.80% | 16.43% | 25.54% |

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-10537 (Exact name of registrant as specified in its charter) Delaware 36-3143493 (State of or other jurisdiction of incorporat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 000-10537 (Exact name of Registrant as specified in its charter) (State or other jurisdiction (I.R.S. Employer Identification ...

Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to OR Commission File Number 000-10537 (Exact name of Registrant as specified in its charter) of incorporation or organization) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 Delaware 36-3143493 (State or o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 000-10537 (Exact name of Registrant as specified in its charter) of incorporation or organization) Delaware 36-3143493 (State or ...