Old Second Bancorp(US:OSBC)2024-10-16 20:05Financial Performance - Net income for Q3 2024 was $23.0 million, an increase of $1.1 million from Q2 2024, but a decrease of $1.4 million from Q3 2023[1][3] - Adjusted net income for Q3 2024 was $23.3 million, up $2.3 million from Q2 2024, and down $1.5 million from Q3 2023[1][3] - Net interest income (GAAP) for the third quarter of 2024 was $60,578 thousand, compared to $59,690 thousand in the previous quarter and $63,030 thousand in the same quarter last year[13] - The efficiency ratio (GAAP) for Q3 2024 was 53.38%, compared to 50.08% in Q3 2023[24] - Net income for the three months ended September 30, 2023, was $22,951 million, a decrease from $24,335 million year-over-year[51] - Basic earnings per share for the quarter were $0.52, down from $0.55 in the previous year[51] Income and Expenses - Net interest and dividend income for Q3 2024 was $60.6 million, reflecting a 1.5% increase from Q2 2024, but a 3.9% decrease from Q3 2023[1][3] - Noninterest income decreased by $546,000, or 4.9%, to $10.6 million in Q3 2024 compared to Q2 2024, but increased by 7.1% from Q3 2023[1][3] - Noninterest expense increased by $1.4 million, or 3.8%, to $39.3 million in Q3 2024 compared to Q2 2024, and increased by 5.0% from Q3 2023[1][4] - Total noninterest income increased to $10,581 million from $9,877 million in the previous quarter[51] - Total noninterest expense rose to $39,308 million compared to $37,423 million in the prior period[51] Assets and Liabilities - Total assets as of September 30, 2024, were $5.67 billion, a slight increase from $5.66 billion at June 30, 2024, but a decrease from $5.76 billion at September 30, 2023[1][5] - Total loans were $3.99 billion at September 30, 2024, reflecting a $14.5 million increase from June 30, 2024, but a $38.5 million decrease from September 30, 2023[1][10] - Total deposits decreased to $4.47 billion as of September 30, 2024, down $56.3 million or 1.2% from $4.52 billion at June 30, 2024, primarily due to a decrease in noninterest bearing deposits[39] - Total liabilities decreased to $5.01 billion as of September 30, 2024, compared to $5.15 billion as of December 31, 2023[49] - Stockholders' equity increased to $661.4 million as of September 30, 2024, up from $577.3 million as of December 31, 2023[49] Credit Quality - The provision for credit losses was $2.0 million in Q3 2024, down from $3.8 million in Q2 2024 and $3.0 million in Q3 2023[1][3] - Nonperforming loans were $52.3 million as of September 30, 2024, an increase of 11.6% from June 30, 2024, but a decrease of 17.4% from September 30, 2023[28] - The allowance for credit losses on loans was $44.4 million, representing 1.1% of total loans as of September 30, 2024, unchanged from June 30, 2024, and down from 1.3% a year earlier[35] - Gross charge-offs for Q3 2024 were $165,000, significantly lower than $6.0 million in Q2 2024 and $6.9 million in Q3 2023[37] - The company recorded net recoveries of $155,000 in Q3 2024, indicating ongoing efforts to manage prior charge-offs effectively[35] Dividends and Shareholder Returns - The Board of Directors declared a cash dividend of $0.06 per share, payable on November 4, 2024[1][4] - The company declared dividends of $0.05 per share, consistent with the previous quarter[51] Market and Strategic Initiatives - The company plans to continue buying and selling strategically identified securities as opportunities arise[11] - The company is in the process of acquiring five bank branches from FRME, contributing to increased transaction-related costs[24] - The company plans to host a conference call on October 17, 2024, to discuss the third quarter 2024 financial results[47]