PR Newswire
AURORA, Ill., April 23, 2014
AURORA, Ill., April 23, 2014 /PRNewswire/ -- Old Second Bancorp, Inc. (the "Company" or "Old Second") (NASDAQ: OSBC), parent company of Old Second National Bank (the "Bank"), today announced financial results for the first quarter of 2014. The Company reported net income of $2.2 million for the first quarter 2014, compared to a net income of $5.5 million in the first quarter of 2013. The Company's net income available to common stockholders of $630,000 or $0.04 per diluted share, for the quarter, compared to a net income available to common stockholders of $4.2 million, or $0.30 per diluted share, in the first quarter of 2013.
Chairman Bill Skoglund remarked "First quarter results reflect further measured progress on several key improvement objectives. Importantly, our loan portfolio shows a second consecutive quarterly increase while nonperforming assets declined since year end. Over the past year, OREO dropped sharply from $65.7 million at March 31, 2013, to $40.2 million at March 31, 2014. Over the same period, nonaccrual loans declined from $64.9 million to $36.7 million. Core profitability shows continued strength in an economy that continues to be uneven in its recovery. Capital ratios remain strong and in excess of goals established by our Board of Directors. Our community banking approach has been skillfully executed by our staff. Our loyal customers and the communities we serve have recognized and realized benefit from our services."
Mr. Skoglund continued "The Board and I are proud of Old Second and the great employees who do things every day to serve our customers and communities. We completed our public offering of common stock earlier this month and expect the proceeds will position Old Second for greater growth. The economy will continue to be challenging and our competitors are skillful but with additional capital, we are excited for 2014. We will continue to work hard to reduce problem assets. As business leader confidence grows with the recovery, we will also strive to grow loan earning assets with additional improvement in core profitability."
The public offering was registered with the Securities and Exchange Commission. The Company's board of directors determined on April 3, 2014, that it was in the best interests of Company shareholders to sell common stock in the offering at $4.40 per share. Old Second completed the sale of 15,525,000 shares at this price. Net proceeds from the offering of over $64.0 million will be used to pay the accrued but unpaid interest on trust preferred securities, the accumulated but unpaid dividends on preferred stock and to repurchase certain shares of preferred stock. Remaining proceeds will be used for general corporate purposes.
On April 21, 2014, the Company paid the accumulated unpaid interest on trust preferred securities and terminated the deferral period. The interest will not be immediately paid by the indenture trustees to the holders of such trust preferred securities. Instead, the indenture trustees will hold the interest payments in irrevocable deposit accounts. The interest will be paid by the trustees on the next applicable payment dates under the indentures to the holders of the securities on the record dates set forth in the appropriate indenture.
On April 15, 2014, the Company declared a dividend of approximately $15.8 million on its Series B Fixed Rate Cumulative Perpetual Preferred Stock (the "Series B Stock") payable to Series B Stockholders of record on May 1, 2014, the dividend will be paid on May 15, 2014.
The Company is currently in the process of repurchasing some of the Series B Stock from certain holders under privately negotiated agreements. As previously disclosed, the repurchase price for such Series B Stock equals 94.75% of the liquidation value of the Series B Stock, or $947.50 per share, provided that the holders of shares enter into agreements to forbear payment of dividends due and to waive any rights to such dividend upon repurchase. The Company is also repurchasing all shares of Series B Stock held by officers and directors of the Company on the same terms. The Company will not pay any holder of the Series B Stock whose shares are being repurchased by the Company such holder's pro rata share of the declared dividend on the Series B Stock.
Financial Highlights/Overview
First quarter net income before taxes of $3.4 million compared to income before taxes of $5.5 million in the same quarter of 2013.
Capital Ratios Increased period end risk-based assets on higher loans, securities and changes in loan / securities portfolios composition toward higher risk weight instruments impact risk-based ratios.
| March 31, | | December 31, | | March 31, |
| 2014 | | 2013 | | 2013 |
The Bank's leverage capital ratio | 11.12% | | 10.97% | | 9.94% |
The Bank's total risk-based capital ratio | 17.83% | | 18.04% | | 15.79% |
The Company's leverage capital ratio | 7.29% | | 6.96% | | 5.11% |
The Company's total risk-based capital ratio | 15.87% | | 15.88% | | 14.33% |
The Company's tangible common equity to tangible assets | 3.68% | | 3.67% | | 0.05% |
Asset Quality & Earning Assets
Non-GAAP Presentations: Management has traditionally disclosed certain non-GAAP ratios to evaluate and measure the Company's performance, including a net interest margin calculation. The net interest margin is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Management believes this measure provides investors with information regarding balance sheet profitability. Management also presents an efficiency ratio that is non-GAAP. The efficiency ratio is calculated by dividing adjusted noninterest expense by the sum of net interest income on a tax equivalent basis and adjusted noninterest income. Management believes this measure provides investors with information regarding the Company's operating efficiency and how management evaluates performance internally. Consistent with industry practice, management also disclosed the tangible common equity to tangible assets and the Tier 1 common equity to risk weighted assets in the discussion immediately above and in the following tables. The tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
Forward Looking Statements: This report may contain forward-looking statements. Forward looking statements are identifiable by the inclusion of such qualifications as expects, intends, believes, may, likely or other indications that the particular statements are not based upon facts but are rather based upon the Company's beliefs as of the date of this release. Actual events and results may differ significantly from those described in such forward-looking statements, due to changes in the economy, interest rates or other factors. Additionally, all statements in this document, 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. For additional information concerning the Company and its business, including other factors that could materially affect the Company's financial results or cause actual results to differ substantially from those discussed or implied in forward looking statements contained in this release, please review our filings with the Securities and Exchange Commission.
SOURCE Old Second Bancorp, Inc.
Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.