Company Quick10K Filing
Old Second Bancorp
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 30 $380
10-Q 2019-11-07 Quarter: 2019-09-30
10-Q 2019-08-07 Quarter: 2019-06-30
10-Q 2019-05-07 Quarter: 2019-03-31
10-K 2019-03-07 Annual: 2018-12-31
10-Q 2018-11-07 Quarter: 2018-09-30
10-Q 2018-08-07 Quarter: 2018-06-30
10-Q 2018-05-08 Quarter: 2018-03-31
10-K 2018-03-13 Annual: 2017-12-31
10-Q 2017-11-07 Quarter: 2017-09-30
10-Q 2017-08-07 Quarter: 2017-06-30
10-Q 2017-05-08 Quarter: 2017-03-31
10-K 2017-03-13 Annual: 2016-12-31
10-Q 2016-11-08 Quarter: 2016-09-30
10-Q 2016-08-08 Quarter: 2016-06-30
10-Q 2016-05-06 Quarter: 2016-03-31
10-K 2016-03-11 Annual: 2015-12-31
10-Q 2015-11-06 Quarter: 2015-09-30
10-Q 2015-08-07 Quarter: 2015-06-30
10-Q 2015-05-08 Quarter: 2015-03-31
10-K 2015-03-12 Annual: 2014-12-31
10-Q 2014-11-12 Quarter: 2014-09-30
10-Q 2014-08-13 Quarter: 2014-06-30
10-Q 2014-05-13 Quarter: 2014-03-31
10-K 2014-02-26 Annual: 2013-12-31
10-Q 2013-11-12 Quarter: 2013-09-30
10-Q 2013-08-14 Quarter: 2013-06-30
10-Q 2013-05-15 Quarter: 2013-03-31
10-K 2013-03-20 Annual: 2012-12-31
10-Q 2012-11-14 Quarter: 2012-09-30
10-Q 2012-08-14 Quarter: 2012-06-30
10-Q 2012-05-10 Quarter: 2012-03-31
10-K 2012-03-15 Annual: 2011-12-31
10-Q 2011-11-09 Quarter: 2011-09-30
10-Q 2011-08-09 Quarter: 2011-06-30
10-Q 2011-05-10 Quarter: 2011-03-31
10-K 2011-03-16 Annual: 2010-12-31
10-Q 2010-11-09 Quarter: 2010-09-30
10-Q 2010-08-06 Quarter: 2010-06-30
10-Q 2010-05-10 Quarter: 2010-03-31
10-K 2010-03-16 Annual: 2009-12-31
8-K 2020-01-28 Regulation FD
8-K 2020-01-22 Earnings, Exhibits
8-K 2020-01-21
8-K 2019-10-23
8-K 2019-10-15
8-K 2019-10-01 Other Events
8-K 2019-09-23 Other Events
8-K 2019-08-21 Amend Bylaw, Exhibits
8-K 2019-07-24 Earnings, Exhibits
8-K 2019-07-16
8-K 2019-07-01 Other Events
8-K 2019-06-05 Amend Bylaw, Exhibits
8-K 2019-05-29 Other Events
8-K 2019-05-22 Officers, Shareholder Vote, Other Events, Exhibits
8-K 2019-05-21 Regulation FD, Exhibits
8-K 2019-04-24 Earnings, Exhibits
8-K 2019-04-16
8-K 2019-04-01 Other Events
8-K 2019-01-23 Earnings, Exhibits
8-K 2019-01-15
8-K 2019-01-02 Other Events
8-K 2018-10-24 Earnings, Exhibits
8-K 2018-10-16
8-K 2018-10-01 Other Events
8-K 2018-07-31 Regulation FD, Exhibits
8-K 2018-07-25 Earnings, Exhibits
8-K 2018-07-17
8-K 2018-07-02 Other Events
8-K 2018-05-16 Officers, Shareholder Vote, Regulation FD
8-K 2018-05-15 Regulation FD, Exhibits
8-K 2018-05-09 Regulation FD, Exhibits
8-K 2018-04-25 Earnings, Exhibits
8-K 2018-04-18 Other Events, Exhibits
8-K 2018-04-02 Other Events
8-K 2018-02-23 Exhibits
8-K 2018-01-24 Earnings, Exhibits
8-K 2018-01-17
8-K 2018-01-02 Other Events
OSBC 2019-09-30
Part I - Financial Information
Item 1. Financial Statements
Note 1 – Summary of Significant Accounting Policies
Note 2 – Acquisitions
Note 3 – Securities
Note 4 – Loans
Note 5 – Allowance for Loan and Lease Losses
Note 6 – Other Real Estate Owned
Note 7 – Deposits
Note 8 – Borrowings
Note 9 – Junior Subordinated Debentures
Note 10 – Equity Compensation Plans
Note 11 – Earnings per Share
Note 12 – Regulatory & Capital Matters
Note 13 – Fair Value Measurements
Note 14 – Fair Values of Financial Instruments
Note 15 – Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Item 2.Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1.A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 osbc-20190930ex3113661cb.htm
EX-31.2 osbc-20190930ex31209c7e4.htm
EX-32.1 osbc-20190930ex321d54704.htm
EX-32.2 osbc-20190930ex322bb4982.htm

Old Second Bancorp Earnings 2019-09-30

OSBC 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
AMNB 394 2,418 2,106 0 0 16 34 339 10.0 1%
RBB 393 2,802 2,408 2 0 38 93 496 0% 5.3 1%
BHB 385 3,688 3,297 21 0 30 86 515 0% 6.0 1%
OSBC 380 2,624 2,366 0 0 36 69 322 4.7 1%
SONA 379 2,724 2,362 0 0 32 73 346 4.7 1%
CATC 374 2,741 2,504 0 0 22 44 336 7.6 1%
BWB 370 2,124 1,894 0 0 30 46 304 6.6 1%
CIVB 369 2,203 1,879 17 0 26 41 369 0% 9.0 1%
GNTY 362 2,333 2,083 0 0 23 52 269 5.2 1%
WTBA 357 2,363 2,161 0 0 28 66 380 5.8 1%

10-Q 1 osbc-20190930x10q.htm 10-Q osbc-Current Folio_10Q

I  

 

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, 2019

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 0-10537

 

Picture 2

(Exact name of Registrant as specified in its charter)

 

 

 

 

Delaware

 

36-3143493

(State or other jurisdiction

 

(I.R.S. Employer Identification Number)

of incorporation or organization)

 

 

 

37 South River Street, Aurora, Illinois     60507

(Address of principal executive offices)  (Zip Code)

 

(630) 892-0202

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒        No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer,’’ ‘‘smaller reporting company,’’ and ‘‘emerging growth company’’ in Rule 12b–2 of the Exchange Act.

 

Large accelerated filerAccelerated filer

Non-accelerated filerSmaller reporting companyEmerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).

Yes ☐        No ☒

 

 

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

OSBC

The Nasdaq Stock Market

Preferred Securities of Old Second Capital Trust I

OSBCP

The Nasdaq Stock Market

 

As of November 4, 2019, the Registrant has 29,903,154 shares of common stock outstanding at $1.00 par value per share.

 

 

 

 

2

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This report and other publicly available documents of the Company contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including with respect to management’s expectations regarding future plans, strategies and financial performance, including regulatory developments, industry and economic trends, and other matters.  Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, can be identified by the inclusion of such qualifications as “expects,” “intends,” “believes,” “may,” “will,” “would,” “could,” “should,” “plan,” “anticipate,” “estimate,” “possible,” “likely” or other indications that the particular statements are not historical facts and refer to future periods.  Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and may be outside of the Company’s control.  Actual events and results may differ materially from those described in such forward-looking statements due to numerous factors, including:

 

·

negative economic conditions that adversely affect the economy, real estate values, the job market and other factors nationally and in our market area, in each case that may affect our liquidity and the performance of our loan portfolio;

·

our ability to achieve anticipated results from our acquisition of Greater Chicago Financial Corp. depends on the state of the economic and financial markets going forward. Specifically, we may incur more credit losses than expected, cost savings may be less than expected, anticipated strategic gains may be significantly harder or take longer to achieve than expected or may not be achieved in their entirety, and customer attrition may be greater than expected;

·

the financial success and viability of the borrowers of our commercial loans;

·

changes in U.S. monetary policy, the level and volatility of interest rates, the capital markets and other market conditions that may affect, among other things, our liquidity and the value of our assets and liabilities;

·

competitive pressures from other financial service businesses and from nontraditional financial technology (“FinTech”) companies;

·

any negative perception of our reputation or financial strength;

·

ability to raise additional capital on acceptable terms when needed;

·

ability to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations;

·

adverse effects on our information technology systems resulting from failures, human error or cyberattacks;

·

adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;

·

the impact of any claims or legal actions, including any effect on our reputation;

·

losses incurred in connection with repurchases and indemnification payments related to mortgages;

·

the soundness of other financial institutions and other counter-party risk;

·

changes in accounting standards, rules and interpretations and the impact on our financial statements;

·

our ability to receive dividends from our subsidiaries;

·

a decrease in our regulatory capital ratios;

·

adverse federal or state tax assessments;

·

risks associated with actual or potential litigation or investigations by customers, regulatory agencies or others;

·

legislative or regulatory changes, particularly changes in regulation of financial services companies;

·

increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the current regulatory environment, including the Dodd-Frank Act; and

·

each of the factors and risks under the heading “Risk Factors” in our 2018 Annual Report on Form 10-K and in subsequent filings we make with the SEC.

 

Because the Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain, there can be no assurances that future actual results will correspond to any forward-looking statements and you should not rely on any forward-looking statements.  Additionally, all statements in this Form 10-Q, 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, except as required by applicable law.

3

 

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

September 30, 

 

December 31, 

 

    

2019

    

2018

Assets

 

 

 

 

 

 

Cash and due from banks

 

$

42,671

 

$

38,599

Interest earning deposits with financial institutions

 

 

11,366

 

 

16,636

Cash and cash equivalents

 

 

54,037

 

 

55,235

Securities available-for-sale, at fair value

 

 

488,422

 

 

541,248

Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock

 

 

10,711

 

 

13,433

Loans held-for-sale

 

 

5,592

 

 

2,984

Loans

 

 

1,899,811

 

 

1,897,027

Less: allowance for loan and lease losses

 

 

19,651

 

 

19,006

Net loans

 

 

1,880,160

 

 

1,878,021

Premises and equipment, net

 

 

42,900

 

 

42,439

Other real estate owned

 

 

4,682

 

 

7,175

Mortgage servicing rights, net

 

 

5,361

 

 

7,357

Goodwill and core deposit intangible

 

 

21,404

 

 

21,814

Bank-owned life insurance ("BOLI")

 

 

62,589

 

 

61,544

Deferred tax assets, net

 

 

12,691

 

 

21,280

Other assets

 

 

25,766

 

 

23,473

Total assets

 

$

2,614,315

 

$

2,676,003

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Noninterest bearing demand

 

$

643,355

 

$

618,830

Interest bearing:

 

 

 

 

 

 

Savings, NOW, and money market

 

 

1,004,501

 

 

1,040,668

Time

 

 

426,635

 

 

457,175

Total deposits

 

 

2,074,491

 

 

2,116,673

Securities sold under repurchase agreements

 

 

48,870

 

 

46,632

Other short-term borrowings

 

 

84,000

 

 

149,500

Junior subordinated debentures

 

 

57,722

 

 

57,686

Senior notes

 

 

44,244

 

 

44,158

Notes payable and other borrowings

 

 

8,856

 

 

15,379

Other liabilities

 

 

26,111

 

 

16,894

Total liabilities

 

 

2,344,294

 

 

2,446,922

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

Common stock

 

 

34,825

 

 

34,720

Additional paid-in capital

 

 

120,291

 

 

119,081

Retained earnings

 

 

204,486

 

 

175,463

Accumulated other comprehensive income (loss)

 

 

6,371

 

 

(4,079)

Treasury stock

 

 

(95,952)

 

 

(96,104)

Total stockholders’ equity

 

 

270,021

 

 

229,081

Total liabilities and stockholders’ equity

 

$

2,614,315

 

$

2,676,003

 

 

 

 

 

 

 

 

 

September 30, 2019

 

December 31, 2018

 

Common

 

Common

 

Stock

    

Stock

Par value

$

1.00

 

$

1.00

Shares authorized

 

60,000,000

 

 

60,000,000

Shares issued

 

34,825,340

 

 

34,719,517

Shares outstanding

 

29,903,154

 

 

29,763,078

Treasury shares

 

4,922,186

 

 

4,956,439

 

See accompanying notes to consolidated financial statements.

4

 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

(unaudited)

 

 

 

Three Months Ended  September 30, 

 

Nine Months Ended  September 30, 

 

    

2019

    

2018

    

2019

    

2018

    

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

25,109

 

$

23,377

 

$

74,132

 

$

64,625

 

Loans held-for-sale

 

 

47

 

 

39

 

 

100

 

 

94

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

2,296

 

 

2,491

 

 

6,933

 

 

7,053

 

Tax exempt

 

 

1,719

 

 

2,064

 

 

5,958

 

 

6,239

 

Dividends from FHLBC and FRBC stock

 

 

154

 

 

121

 

 

459

 

 

338

 

Interest bearing deposits with financial institutions

 

 

119

 

 

84

 

 

344

 

 

230

 

Total interest and dividend income

 

 

29,444

 

 

28,176

 

 

87,926

 

 

78,579

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings, NOW, and money market deposits

 

 

724

 

 

642

 

 

2,254

 

 

1,487

 

Time deposits

 

 

1,672

 

 

1,568

 

 

4,931

 

 

4,187

 

Securities sold under repurchase agreements

 

 

135

 

 

140

 

 

431

 

 

323

 

Other short-term borrowings

 

 

429

 

 

311

 

 

1,611

 

 

916

 

Junior subordinated debentures

 

 

933

 

 

930

 

 

2,791

 

 

2,784

 

Senior notes

 

 

682

 

 

672

 

 

2,026

 

 

2,016

 

Notes payable and other borrowings

 

 

89

 

 

173

 

 

312

 

 

268

 

Total interest expense

 

 

4,664

 

 

4,436

 

 

14,356

 

 

11,981

 

Net interest and dividend income

 

 

24,780

 

 

23,740

 

 

73,570

 

 

66,598

 

Provision for loan and lease losses

 

 

550

 

 

 -

 

 

1,450

 

 

728

 

Net interest and dividend income after provision for loan and lease losses

 

 

24,230

 

 

23,740

 

 

72,120

 

 

65,870

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust income

 

 

1,730

 

 

1,644

 

 

4,955

 

 

4,784

 

Service charges on deposits

 

 

2,020

 

 

1,923

 

 

5,841

 

 

5,284

 

Secondary mortgage fees

 

 

282

 

 

199

 

 

621

 

 

556

 

Mortgage servicing rights mark to market (loss) gain

 

 

(946)

 

 

(11)

 

 

(2,902)

 

 

189

 

Mortgage servicing income

 

 

460

 

 

471

 

 

1,408

 

 

1,550

 

Net gain on sales of mortgage loans

 

 

2,074

 

 

965

 

 

3,999

 

 

3,122

 

Securities gains, net

 

 

3,463

 

 

13

 

 

4,476

 

 

360

 

Increase in cash surrender value of BOLI

 

 

267

 

 

347

 

 

1,045

 

 

946

 

Death benefit realized on BOLI

 

 

 -

 

 

 -

 

 

 -

 

 

1,026

 

Debit card interchange income

 

 

1,124

 

 

1,135

 

 

3,277

 

 

3,279

 

Other income

 

 

1,459

 

 

1,128

 

 

3,838

 

 

3,755

 

Total noninterest income

 

 

11,933

 

 

7,814

 

 

26,558

 

 

24,851

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

12,062

 

 

11,165

 

 

35,261

 

 

33,727

 

Occupancy, furniture and equipment

 

 

2,235

 

 

1,782

 

 

6,149

 

 

4,992

 

Computer and data processing

 

 

1,490

 

 

1,247

 

 

4,346

 

 

5,332

 

FDIC insurance

 

 

(114)

 

 

162

 

 

176

 

 

483

 

General bank insurance

 

 

270

 

 

230

 

 

756

 

 

780

 

Amortization of core deposit intangible

 

 

157

 

 

136

 

 

410

 

 

254

 

Advertising expense

 

 

360

 

 

492

 

 

975

 

 

1,325

 

Debit card interchange expense

 

 

279

 

 

320

 

 

659

 

 

902

 

Legal fees

 

 

111

 

 

243

 

 

480

 

 

688

 

Other real estate expense, net

 

 

26

 

 

(370)

 

 

324

 

 

232

 

Other expense

 

 

3,078

 

 

3,304

 

 

9,738

 

 

9,636

 

Total noninterest expense

 

 

19,954

 

 

18,711

 

 

59,274

 

 

58,351

 

Income before income taxes

 

 

16,209

 

 

12,843

 

 

39,404

 

 

32,370

 

Provision for income taxes

 

 

4,036

 

 

3,201

 

 

9,485

 

 

6,978

 

Net income

 

$

12,173

 

$

9,642

 

$

29,919

 

$

25,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.41

 

$

0.32

 

$

1.00

 

$

0.85

 

Diluted earnings per share

 

 

0.40

 

 

0.32

 

 

0.98

 

 

0.84

 

Dividends declared per share

 

 

0.01

 

 

0.01

 

 

0.03

 

 

0.03

 

 

See accompanying notes to consolidated financial statements.

5

 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

(unaudited)

 

 

Three Months Ended  September 30, 

 

Nine Months Ended  September 30, 

 

    

2019

    

2018

    

2019

    

2018

Net Income

 

$

12,173

 

$

9,642

 

$

29,919

 

$

25,392

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) on available-for-sale securities arising during the period

 

 

5,824

 

 

(2,801)

 

 

23,661

 

 

(12,999)

Related tax (expense) benefit

 

 

(1,638)

 

 

788

 

 

(6,657)

 

 

3,664

Holding gains (losses) after tax on available-for-sale securities

 

 

4,186

 

 

(2,013)

 

 

17,004

 

 

(9,335)

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Reclassification adjustment for the net gains realized during the period

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gains

 

 

3,463

 

 

13

 

 

4,476

 

 

360

Related tax expense

 

 

(973)

 

 

(3)

 

 

(1,257)

 

 

(100)

Net realized gains after tax

 

 

2,490

 

 

10

 

 

3,219

 

 

260

Other comprehensive income (loss) on available-for-sale securities

 

 

1,696

 

 

(2,023)

 

 

13,785

 

 

(9,595)

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in fair value of derivatives used for cash flow hedges

 

 

(1,996)

 

 

628

 

 

(4,638)

 

 

2,422

Related tax benefit (expense)

 

 

559

 

 

(176)

 

 

1,303

 

 

(683)

Other comprehensive (loss) income on cash flow hedges

 

 

(1,437)

 

 

452

 

 

(3,335)

 

 

1,739

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss)

 

 

259

 

 

(1,571)

 

 

10,450

 

 

(7,856)

Total comprehensive income

 

$

12,432

 

$

8,071

 

$

40,369

 

$

17,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

Accumulated

 

Total

 

 

Unrealized Gain

 

Unrealized Gain

 

Accumulated Other

 

 

(Loss) on Securities

 

(Loss) on Derivative

 

Comprehensive

 

 

Available-for -Sale

 

Instruments

 

Income/(Loss)

For the Three Months Ended

 

 

 

 

 

 

 

 

 

Balance, June 30, 2019

 

$

8,051

 

$

(1,939)

 

$

6,112

Other comprehensive income (loss), net of tax

 

 

1,696

 

 

(1,437)

 

 

259

Balance, September 30, 2019

 

$

9,747

 

$

(3,376)

 

$

6,371

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2018

 

$

(4,851)

 

$

364

 

$

(4,487)

Other comprehensive (loss) income, net of tax

 

 

(2,023)

 

 

452

 

 

(1,571)

Balance, September 30, 2018

 

$

(6,874)

 

$

816

 

$

(6,058)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine Months Ended

 

 

 

 

 

 

 

 

 

Balance, December 31, 2018

 

$

(4,038)

 

$

(41)

 

$

(4,079)

Other comprehensive income (loss), net of tax

 

 

13,785

 

 

(3,335)

 

 

10,450

Balance, September 30, 2019

 

$

9,747

 

$

(3,376)

 

$

6,371

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2017

 

$

2,239

 

$

(760)

 

$

1,479

Reclassification of stranded tax effects

 

 

482

 

 

(163)

 

 

319

Other comprehensive (loss) income, net of tax

 

 

(9,595)

 

 

1,739

 

 

(7,856)

Balance, September 30, 2018

 

$

(6,874)

 

$

816

 

$

(6,058)

 

 

See accompanying notes to consolidated financial statements.

 

6

 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

Nine Months Ended  September 30, 

 

 

2019

 

2018

Cash flows from operating activities

 

 

 

 

 

 

Net income

 

$

29,919

 

$

25,392

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Net premium / discount from amortization on securities

 

 

2,128

 

 

2,128

Securities gains, net

 

 

(4,476)

 

 

(360)

Provision for loan and lease losses

 

 

1,450

 

 

728

Originations of loans held-for-sale

 

 

(126,929)

 

 

(107,947)

Proceeds from sales of loans held-for-sale

 

 

127,455

 

 

111,169

Net gains on sales of mortgage loans

 

 

(3,999)

 

 

(3,122)

Mortgage servicing rights mark to market loss (gain)

 

 

2,902

 

 

(189)

Net discount / premium from accretion on loans

 

 

(1,052)

 

 

(776)

Increase in cash surrender value of BOLI

 

 

(1,045)

 

 

(946)

Net gains on sale of other real estate owned

 

 

(254)

 

 

(716)

Provision for other real estate owned valuation losses

 

 

399

 

 

485

Depreciation of fixed assets and amortization of leasehold improvements

 

 

1,869

 

 

1,778

Net (gains) on disposal  and transfer of fixed assets

 

 

(32)

 

 

 -

Amortization of core deposit intangible

 

 

410

 

 

254

Change in current income taxes receivable

 

 

3,319

 

 

671

Provision for deferred tax expense

 

 

4,493

 

 

6,777

Change in accrued interest receivable and other assets

 

 

(7,441)

 

 

533

Accretion of purchase accounting adjustment on time deposits

 

 

(38)

 

 

 -

Amortization of purchase accounting adjustment on notes payable and other borrowings

 

 

75

 

 

 -

Amortization of junior subordinated debentures issuance costs

 

 

36

 

 

35

Amortization of senior notes issuance costs

 

 

86

 

 

75

Change in accrued interest payable and other liabilities

 

 

6,366

 

 

2,432

Stock based compensation

 

 

1,905

 

 

1,641

Net cash provided by operating activities

 

 

37,546

 

 

40,042

Cash flows from investing activities

 

 

 

 

 

 

Proceeds from maturities and calls including pay down of securities available-for-sale

 

 

32,631

 

 

32,890

Proceeds from sales of securities available-for-sale

 

 

177,824

 

 

94,663

Purchases of securities available-for-sale

 

 

(136,096)

 

 

(71,488)

Net proceeds from sales of FHLBC stock

 

 

2,722

 

 

2,627

Net disbursements from purchases of FRB stock

 

 

 -

 

 

(1,421)

Net change in loans

 

 

(2,833)

 

 

9,988

Proceeds from claims on BOLI

 

 

 -

 

 

1,204

Improvements in other real estate owned

 

 

 -

 

 

(59)

Proceeds from sales of other real estate owned, net of participation purchase

 

 

2,644

 

 

4,292

Proceeds from disposition of fixed assets

 

 

32

 

 

 -

Net purchases of premises and equipment

 

 

(2,330)

 

 

(1,563)

Cash paid for acquisition, net of cash and cash equivalents retained

 

 

 -

 

 

(35,711)

Net cash provided by investing activities

 

 

74,594

 

 

35,422

Cash flows from financing activities

 

 

 

 

 

 

Net change in deposits

 

 

(42,144)

 

 

(39,053)

Net change in securities sold under repurchase agreements

 

 

2,238

 

 

8,792

Net change in other short-term borrowings

 

 

(65,500)

 

 

(44,000)

Net change in notes payable and other borrowings

 

 

(6,598)

 

 

(5,317)

Proceeds from exercise of stock options

 

 

32

 

 

 -

Dividends paid on common stock

 

 

(896)

 

 

(892)

Purchase of treasury stock

 

 

(470)

 

 

(505)

Net cash used in financing activities

 

 

(113,338)

 

 

(80,975)

Net change in cash and cash equivalents

 

 

(1,198)

 

 

(5,511)

Cash and cash equivalents at beginning of period

 

 

55,235

 

 

55,833

Cash and cash equivalents at end of period

 

$

54,037

 

$

50,322

 

See accompanying notes to consolidated financial statements.  

7

 

 

 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Changes in

Stockholders’ Equity

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

Total

 

 

Common

 

Paid-In

 

Retained

 

Comprehensive

 

Treasury

 

Stockholders’

 

    

Stock

    

Capital

    

Earnings

    

Income (Loss)

    

Stock

    

Equity

For the Three Months Ended