Core Viewpoint - Analysts forecast that Old Second Bancorp (OSBC) will report quarterly earnings of $0.48 per share, indicating a year-over-year decline of 12.7% and revenues of $70.95 million, reflecting a decline of 2.7% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised downward by 1.4% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics - Analysts estimate a 'Net Interest Margin' of 4.6%, down from 4.7% a year ago [5]. - The 'Efficiency Ratio' is expected to reach 53.0%, compared to 50.1% in the previous year [5]. - 'Total interest earning assets - Average Balance' is projected to be $5.26 billion, down from $5.39 billion year-over-year [5]. - 'Total noninterest income' is forecasted at $10.62 million, up from $9.88 million a year ago [6]. - 'Net interest and dividend income' is expected to be $60.28 million, down from $63.03 million in the same quarter last year [6]. - 'Net Interest Income (FTE)' is projected to be $60.71 million, compared to $63.40 million in the same quarter of the previous year [7]. Stock Performance - Over the past month, Old Second Bancorp shares have recorded a return of -7.3%, while the Zacks S&P 500 composite has changed by +5.4% [7]. - Based on its Zacks Rank 3 (Hold), OSBC is expected to perform in line with the overall market in the upcoming period [7].

Wall Street expects a year-over-year decline in earnings on lower revenues when Old Second Bancorp (OSBC) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Oct ...

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Shares of Old Second Bancorp have returned +18.9% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. The reported revenue represents a surprise of +1.12% over the Z ...

分组1 - Old Second Bancorp (OSBC) reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.48 per share, and down from $0.56 per share a year ago [1] - The company posted revenues of $70.82 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.12%, but down from $71.8 million year-over-year [2] - Old Second Bancorp has topped consensus revenue estimates three times over the last four quarters [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.49 on revenues of $70.83 million, and for the current fiscal year, it is $1.92 on revenues of $282.13 million [10] - The stock has added about 7.6% since the beginning of the year, compared to the S&P 500's gain of 18.8% [8] - The Zacks Industry Rank for Banks - Midwest is currently in the top 41% of over 250 Zacks industries, indicating a favorable outlook for the sector [5]

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 ...

Core Insights - The consensus EPS estimate for Old Second Bancorp has remained unchanged over the last 30 days, indicating analysts' reassessment of their forecasts [1] - Analysts predict a year-over-year decline in quarterly earnings to $0.48 per share, representing a 14.3% decrease [6] - Revenue is expected to decline by 2.5% year-over-year, with an estimated total of $70.03 million [6] Financial Metrics - The 'Net Interest Margin' is projected to be 4.6%, consistent with the same quarter last year [3] - The 'Total interest earning assets - Average Balance' is estimated at $5.24 billion, down from $5.53 billion a year ago [4] - 'Net interest and dividend income' is forecasted to be $59.51 million, a decrease from $63.58 million in the previous year [5] - The 'Efficiency Ratio' is expected to reach 52.4%, compared to 46.8% in the same quarter last year [9] - 'Total noninterest income' is projected at $10.37 million, an increase from $8.22 million a year ago [10] - The estimated 'Net Interest Income (FTE)' is $59.79 million, down from $64.45 million in the same quarter last year [11]

Core Insights - The Zacks rating system effectively utilizes earnings estimate revisions to predict near-term stock price movements, providing a more objective basis for investment decisions compared to traditional Wall Street ratings [1][3][5] Earnings Estimate Revisions - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [2][4] - Tracking earnings estimate revisions can be beneficial for making investment decisions, as empirical research shows a strong correlation between these revisions and stock movements [3] Zacks Rating System - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across over 4000 stocks, with only the top 20% receiving favorable ratings, indicating superior earnings estimate revisions [5][12] - Stocks rated Zacks Rank 1 (Strong Buy) have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the system [12] Old Second Bancorp Analysis - Old Second Bancorp has been upgraded to a Zacks Rank 2 (Buy), placing it in the top 20% of Zacks-covered stocks, suggesting potential for near-term price increases due to positive earnings outlook [9][10][14] - The Zacks Consensus Estimate for Old Second Bancorp has increased by 1.5% over the past three months, reflecting a positive trend in earnings estimates [13]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Old Second Bancorp (OSBC) as a strong value stock based on its financial metrics and Zacks Rank [2][4][7] Company Overview - Old Second Bancorp (OSBC) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for investment [4] - The stock is currently trading at a P/E ratio of 7.18, significantly lower than the industry average of 9.69, suggesting it may be undervalued [4] - OSBC's Forward P/E has fluctuated between 6.41 and 8.07 over the past year, with a median of 7.20 [4] Financial Metrics - The P/B ratio for OSBC is 1.03, which is attractive compared to the industry's average P/B of 1.71, indicating a favorable market value relative to book value [5] - Over the past 52 weeks, OSBC's P/B has ranged from 1 to 1.42, with a median of 1.15 [5] - OSBC has a P/CF ratio of 6.47, which is appealing against the industry's average P/CF of 11.70, suggesting strong cash flow relative to its valuation [6] - The P/CF for OSBC has varied between 6.06 and 7.84 in the past year, with a median of 6.62 [6] Investment Outlook - The combination of OSBC's attractive financial ratios and strong earnings outlook positions it as an impressive value stock currently [7]

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% |