Company Quick10K Filing
Quick10K
Old Second Bancorp
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$14.03 30 $418
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
8-K 2019-01-23 Earnings, Exhibits
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
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OSBC 2018-09-30
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 &Amp; 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-10.1 osbc-20180930ex101c30f56.htm
EX-31.1 osbc-20180930ex311ee7e18.htm
EX-31.2 osbc-20180930ex3120f0767.htm
EX-32.1 osbc-20180930ex321a5e017.htm
EX-32.2 osbc-20180930ex3220ed0da.htm

Old Second Bancorp Earnings 2018-09-30

OSBC 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 osbc-20180930x10q.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, 2018

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 ☒

 

As of November 2, 2018, the Registrant had 29,758,578 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, including the documents incorporated herein by reference, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including, but not limited to, statements regarding management’s belief that we are positioned for future growth, expectations regarding future plans, strategies and financial performance, 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,” “seeks,” “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 significantly 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;

·

defaults and losses on our loan portfolio;

·

the anticipated benefits of the Company’s recent merger with Greater Chicago Financial Corp., including estimated cost savings and anticipated strategic gains, may be significantly harder or take longer to achieve than expected or may not be achieved in their entirety as a result of unexpected factors or events;

·

the integration of Greater Chicago Financial Corp.’s business and operations into the Company, which included conversion of Greater Chicago Financial Corp.’s operating systems and procedures, may have unanticipated adverse results relating to the Company’s existing businesses;

·

the Company’s ability to achieve anticipated results from the Greater Chicago Financial Corp. transaction is dependent on the state of the economic and financial markets going forward. Specifically, the Company may incur more credit losses than expected, cost savings may be less than expected and customer attrition may be greater than expected;

·

risks related to potential mergers and acquisitions including potential deposit attrition, higher than expected costs, customer loss and business disruption, including, without limitation, potential difficulties in maintaining relationships with key personnel and other integration related-matters, and the potential inability to identify and successfully negotiate and complete additional successful combinations with potential merger or acquisition partners;

·

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

·

market conditions in the commercial and residential real estate markets in our market area;

·

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 in the financial services business;

·

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;

·

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;

·

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;

·

the impact of heightened capital requirements; and

·

each of the factors and risks under the heading  “Risk Factors” in our 2017 Form 10-K and Form 10-Qs filed 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.

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, 

 

    

2018

    

2017

Assets

 

 

 

 

 

 

Cash and due from banks

 

$

34,366

 

$

37,444

Interest bearing deposits with financial institutions

 

 

15,956

 

 

18,389

Cash and cash equivalents

 

 

50,322

 

 

55,833

Securities available-for-sale, at fair value

 

 

542,338

 

 

541,439

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

 

 

10,511

 

 

10,168

Loans held-for-sale

 

 

2,911

 

 

4,067

Loans

 

 

1,834,949

 

 

1,617,622

Less: allowance for loan and lease losses

 

 

19,328

 

 

17,461

Net loans

 

 

1,815,621

 

 

1,600,161

Premises and equipment, net

 

 

42,752

 

 

37,628

Other real estate owned

 

 

6,964

 

 

8,371

Mortgage servicing rights, net

 

 

8,131

 

 

6,944

Goodwill and core deposit intangible

 

 

21,947

 

 

8,922

Bank-owned life insurance ("BOLI")

 

 

61,506

 

 

61,764

Deferred tax assets, net

 

 

25,116

 

 

25,356

Other assets

 

 

24,354

 

 

22,776

Total assets

 

$

2,612,473

 

$

2,383,429

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Noninterest bearing demand

 

$

621,580

 

$

572,404

Interest bearing:

 

 

 

 

 

 

Savings, NOW, and money market

 

 

1,045,886

 

 

967,750

Time

 

 

464,904

 

 

382,771

Total deposits

 

 

2,132,370

 

 

1,922,925

Securities sold under repurchase agreements

 

 

44,333

 

 

29,918

Other short-term borrowings

 

 

81,875

 

 

115,000

Junior subordinated debentures

 

 

57,674

 

 

57,639

Senior notes

 

 

44,133

 

 

44,058

Notes payable and other borrowings

 

 

18,050

 

 

 -

Other liabilities

 

 

15,908

 

 

13,539

Total liabilities

 

 

2,394,343

 

 

2,183,079

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

Common stock

 

 

34,717

 

 

34,626

Additional paid-in capital

 

 

118,625

 

 

117,742

Retained earnings

 

 

167,140

 

 

142,959

Accumulated other comprehensive (loss) income

 

 

(6,058)

 

 

1,479

Treasury stock

 

 

(96,294)

 

 

(96,456)

Total stockholders’ equity

 

 

218,130

 

 

200,350

Total liabilities and stockholders’ equity

 

$

2,612,473

 

$

2,383,429

 

 

 

 

 

 

 

 

 

September 30, 2018

 

December 31, 2017

 

Common

 

Common

 

Stock

    

Stock

Par value

$

1.00

 

$

1.00

Shares authorized

 

60,000,000

 

 

60,000,000

Shares issued

 

34,716,589

 

 

34,625,734

Shares outstanding

 

29,747,078

 

 

29,627,086

Treasury shares

 

4,969,511

 

 

4,998,648

 

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, 

 

 

    

2018

    

2017

    

2018

    

2017

    

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

23,377

 

$

18,208

 

$

64,625

 

$

52,202

 

Loans held-for-sale

 

 

39

 

 

34

 

 

94

 

 

95

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

2,491

 

 

2,424

 

 

7,053

 

 

7,994

 

Tax exempt

 

 

2,064

 

 

1,628

 

 

6,239

 

 

4,188

 

Dividends from FHLBC and FRBC stock

 

 

121

 

 

94

 

 

338

 

 

271

 

Interest bearing deposits with financial institutions

 

 

84

 

 

37

 

 

230

 

 

91

 

Total interest and dividend income

 

 

28,176

 

 

22,425

 

 

78,579

 

 

64,841

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings, NOW, and money market deposits

 

 

642

 

 

239

 

 

1,487

 

 

695

 

Time deposits

 

 

1,568

 

 

1,077

 

 

4,187

 

 

3,081

 

Securities sold under repurchase agreements

 

 

140

 

 

 4

 

 

323

 

 

10

 

Other short-term borrowings

 

 

311

 

 

220

 

 

916

 

 

472

 

Junior subordinated debentures

 

 

930

 

 

930

 

 

2,784

 

 

3,073

 

Senior notes

 

 

672

 

 

672

 

 

2,016

 

 

2,017

 

Notes payable and other borrowings

 

 

173

 

 

 -

 

 

268

 

 

 -

 

Total interest expense

 

 

4,436

 

 

3,142

 

 

11,981

 

 

9,348

 

Net interest and dividend income

 

 

23,740

 

 

19,283

 

 

66,598

 

 

55,493

 

Provision for loan and lease losses

 

 

 -

 

 

300

 

 

728

 

 

1,050

 

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

 

 

23,740

 

 

18,983

 

 

65,870

 

 

54,443

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust income

 

 

1,644

 

 

1,468

 

 

4,784

 

 

4,564

 

Service charges on deposits

 

 

1,923

 

 

1,722

 

 

5,284

 

 

4,955

 

Secondary mortgage fees

 

 

199

 

 

195

 

 

556

 

 

594

 

Mortgage servicing rights mark to market (loss) gain

 

 

(11)

 

 

(194)

 

 

189

 

 

(756)

 

Mortgage servicing income

 

 

471

 

 

451

 

 

1,550

 

 

1,330

 

Net gain on sales of mortgage loans

 

 

965

 

 

1,095

 

 

3,122

 

 

3,715

 

Securities gains (losses), net

 

 

13

 

 

102

 

 

360

 

 

(165)

 

Increase in cash surrender value of BOLI

 

 

347

 

 

362

 

 

946

 

 

1,071

 

Death benefit realized on bank-owned life insurance

 

 

 -

 

 

 -

 

 

1,026

 

 

 -

 

Debit card interchange income

 

 

1,135

 

 

1,075

 

 

3,279

 

 

3,131

 

Gain on disposal and transfer of fixed assets, net

 

 

 -

 

 

 -

 

 

 -

 

 

10

 

Other income

 

 

1,128

 

 

1,567

 

 

3,755

 

 

3,739

 

Total noninterest income

 

 

7,814

 

 

7,843

 

 

24,851

 

 

22,188

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

11,165

 

 

10,049

 

 

33,727

 

 

31,167

 

Occupancy, furniture and equipment

 

 

1,782

 

 

1,482

 

 

4,992

 

 

4,510

 

Computer and data processing

 

 

1,247

 

 

1,081

 

 

5,332

 

 

3,283

 

FDIC insurance

 

 

162

 

 

199

 

 

483

 

 

512

 

General bank insurance

 

 

230

 

 

246

 

 

780

 

 

780

 

Amortization of core deposit intangible

 

 

136

 

 

24

 

 

254

 

 

74

 

Advertising expense

 

 

492

 

 

255

 

 

1,325

 

 

1,093

 

Debit card interchange expense

 

 

320

 

 

285

 

 

902

 

 

1,033

 

Legal fees

 

 

243

 

 

162

 

 

688

 

 

450

 

Other real estate expense, net

 

 

(370)

 

 

680

 

 

232

 

 

1,928

 

Other expense

 

 

3,304

 

 

2,455

 

 

9,636

 

 

8,128

 

Total noninterest expense

 

 

18,711

 

 

16,918

 

 

58,351

 

 

52,958

 

Income before income taxes

 

 

12,843

 

 

9,908

 

 

32,370

 

 

23,673

 

Provision for income taxes

 

 

3,201

 

 

1,831

 

 

6,978

 

 

6,023

 

Net income available to common stockholders

 

$

9,642

 

$

8,077

 

$

25,392

 

$

17,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.32

 

$

0.27

 

$

0.85

 

$

0.60

 

Diluted earnings per share

 

 

0.32

 

 

0.27

 

 

0.84

 

 

0.59

 

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, 

 

    

2018

    

2017

    

2018

    

2017

Net Income

 

$

9,642

 

$

8,077

 

$

25,392

 

$

17,650

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(2,801)

 

 

2,971

 

 

(12,999)

 

 

13,798

Related tax benefit (expense)

 

 

788

 

 

(1,191)

 

 

3,664

 

 

(5,556)

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

 

 

(2,013)

 

 

1,780

 

 

(9,335)

 

 

8,242

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Reclassification adjustment for the net gains (losses) realized during the period

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gains (losses)

 

 

12

 

 

102

 

 

360

 

 

(165)

Related tax (expense) benefit

 

 

(2)

 

 

(42)

 

 

(100)

 

 

24

Net realized gains (losses) after tax

 

 

10

 

 

60

 

 

260

 

 

(141)

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

 

 

(2,023)

 

 

1,720

 

 

(9,595)

 

 

8,383

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in fair value of derivatives used for cash flow hedges

 

 

628

 

 

19

 

 

2,422

 

 

(445)

Related tax (expense) benefit

 

 

(176)

 

 

 8

 

 

(683)

 

 

192

Other comprehensive income on cash flow hedges

 

 

452

 

 

27

 

 

1,739

 

 

(253)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other comprehensive (loss) income

 

 

(1,571)

 

 

1,747

 

 

(7,856)

 

 

8,130

Total comprehensive income

 

$

8,071

 

$

9,824

 

$

17,536

 

$

25,780

 

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, 

 

 

2018

    

2017

    

Cash flows from operating activities

 

 

 

 

 

 

Net income

$

25,392

 

$

17,650

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

Depreciation of fixed assets and amortization of leasehold improvements

 

1,778

 

 

1,760

 

Change in fair value of mortgage servicing rights

 

(189)

 

 

756

 

Provision for loan and lease losses

 

728

 

 

1,050

 

Provision for deferred tax expense

 

6,777

 

 

5,682

 

Originations of loans held-for-sale

 

(107,947)

 

 

(113,077)

 

Proceeds from sales of loans held-for-sale

 

111,169

 

 

119,059

 

Net gains on sales of mortgage loans

 

(3,122)

 

 

(3,715)

 

Net discount (accretion)/premium amortization of purchase accounting adjustment on loans

 

(776)

 

 

(1,115)

 

Change in current income taxes receivable

 

671

 

 

111

 

Increase in cash surrender value of BOLI

 

(946)

 

 

(1,071)

 

Change in accrued interest receivable and other assets

 

533

 

 

(6,849)

 

Change in accrued interest payable and other liabilities

 

2,432

 

 

4,571

 

Net premium amortization/discount (accretion) on securities

 

2,128

 

 

1,320

 

Securities (gains) losses, net

 

(360)

 

 

165

 

Amortization of core deposit intangible

 

254

 

 

74

 

Amortization of junior subordinated debentures issuance costs

 

35

 

 

36

 

Amortization of senior notes issuance costs

 

75

 

 

77

 

Stock based compensation

 

1,641

 

 

897

 

Net gains on sale of other real estate owned

 

(716)

 

 

(454)

 

Provision for other real estate owned valuation losses

 

485

 

 

1,630

 

Net losses on disposal  and transfer of fixed assets

 

 -

 

 

(10)

 

Net cash provided by operating activities

 

40,042

 

 

28,547

 

Cash flows from investing activities

 

 

 

 

 

 

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

 

32,890

 

 

105,327

 

Proceeds from sales of securities available-for-sale

 

94,663

 

 

152,476

 

Purchases of securities available-for-sale

 

(71,488)

 

 

(246,971)

 

Net disbursements/proceeds from sales (purchases) of FHLBC stock

 

2,627

 

 

(2,475)

 

Net disbursements/proceeds from  (purchases) sales of FRB stock

 

(1,421)

 

 

 -

 

Net change in loans

 

9,988

 

 

(118,711)

 

Proceeds from claims on BOLI, net of premiums paid

 

1,204

 

 

 -

 

Improvements in other real estate owned

 

(59)

 

 

 -

 

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

 

4,292

 

 

5,512

 

Proceeds from disposition of premises and equipment

 

 -

 

 

13

 

Net purchases of premises and equipment

 

(1,563)

 

 

(852)

 

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

 

(35,711)

 

 

 -

 

Net cash provided by (used in) investing activities

 

35,422

 

 

(105,681)

 

Cash flows from financing activities

 

 

 

 

 

 

Net change in deposits

 

(39,053)

 

 

22,330

 

Net change in securities sold under repurchase agreements

 

8,792

 

 

1,138

 

Net change in other short-term borrowings

 

(44,000)

 

 

55,000

 

Payment of senior note issuance costs

 

 -

 

 

(42)

 

Net change in notes payable and other borrowings

 

(5,317)

 

 

 -

 

Dividends paid on common stock

 

(892)

 

 

(888)

 

Purchase of treasury stock

 

(505)

 

 

(236)

 

Net cash (used in) provided by financing activities

 

(80,975)

 

 

77,302

 

Net change in cash and cash equivalents

 

(5,511)

 

 

168

 

Cash and cash equivalents at beginning of period

 

55,833

 

 

47,334

 

Cash and cash equivalents at end of period

$

50,322

 

$

47,502

 

 

7

 


 

 

 

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Cash Flows - Continued

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended  September 30, 

Supplemental cash flow information

    

2018

    

2017

Income taxes paid, net

 

$

 -

 

$

230

Interest paid for deposits

 

 

5,381

 

 

3,802

Interest paid for borrowings

 

 

5,482

 

 

4,890

Non-cash transfer of loans to other real estate owned

 

 

2,194

 

 

3,701

Non-cash transfer of premises to other real estate owned

 

 

 -

 

 

95

 

See accompanying notes to consolidated financial statements.

 

 

8

 


 

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

Balance, December 31, 2016

 

$

34,534

 

$

116,653

 

$

129,005

 

$

(8,762)

 

$

(96,220)

 

$

175,210

Net income

 

 

 

 

 

 

 

 

17,650

 

 

 

 

 

 

 

 

17,650

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

8,130

 

 

 

 

 

8,130

Dividends declared and paid, ($0.03 per share)

 

 

 

 

 

 

 

 

(888)

 

 

 

 

 

 

 

 

(888)

Vesting of restricted stock

 

 

92

 

 

(92)

 

 

 

 

 

 

 

 

 

 

 

 -

Stock based compensation

 

 

 

 

 

897

 

 

 

 

 

 

 

 

 

 

 

897

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(236)

 

 

(236)

Balance, September 30, 2017

 

$

34,626

 

$

117,458

 

$

145,767

 

$

(632)

 

$

(96,456)

 

$

200,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2017

 

$

34,626

 

$

117,742

 

$

142,959

 

$

1,479

 

$

(96,456)

 

$

200,350

Net income

 

 

 

 

 

 

 

 

25,392

 

 

 

 

 

 

 

 

25,392

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

(7,856)

 

 

 

 

 

(7,856)

Dividends declared and paid, ($0.03 per share)

 

 

 

 

 

 

 

 

(892)

 

 

 

 

 

 

 

 

(892)

Vesting of restricted stock

 

 

91

 

 

(758)

 

 

 

 

 

 

 

 

667

 

 

 -

Reclassification of stranded tax effects

 

 

 

 

 

 

 

 

(319)

 

 

319

 

 

 

 

 

 -

Stock based compensation

 

 

 

 

 

1,641

 

 

 

 

 

 

 

 

 

 

 

1,641

Purchase of treasury stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(505)

 

 

(505)

Balance, September 30, 2018

 

$

34,717

 

$

118,625

 

$

167,140

 

$

(6,058)

 

$

(96,294)

 

$

218,130

 

See accompanying notes to consolidated financial statements.