EX-99.1 3 a03-1147_1ex991.htm EX-99.1

Exhibit 99.1

 

OLD SECOND BANCORP, INC.

Traded: NASDAQ NMS

Symbol: OSBC

 

For Immediate Release

July 15, 2003

 

For additional information contact:

Doug Cheatham, SVP & CFO

(630) 906-5484

 

Old Second Bancorp, Inc. earned $0.75 per share in the second quarter of 2003, an increase of 17.2% over 64 cents in the second quarter of 2002. Old Second earned $1.45 per share in the first half of 2003, an 11.54% increase over the $1.30 per share for the first half of 2002. Net income was $10.8 million in the first half and $5.6 million in the second quarter of 2003, compared with $9.8 million in the first half and $4.8 million in the second quarter of 2002.  Earnings were enhanced by strong asset growth and a significant increase in noninterest income.

 

Growth in loans and deposits continued through the first half of 2003.  Total loans increased to $1.18 billion as of June 30, 2003, an increase of $120.8 million, or 11.37% from $1.06 billion as of December 31, 2002.  At the same time, deposits increased to $1.48 billion at June 30, 2003, an increase of $93.5 million or 6.72% as of December 31, 2002.

 

Net interest income for the first half of 2003 grew 8.81%, to $30.3 million on the strength of continued asset growth.  The net interest margin declined to 4.03% in the first half of 2003 compared to 4.51% one year earlier.  Net interest margin was 4.07% for the second quarter of 2003 and 3.99% in the first quarter of 2003.  Given the Company’s mix of interest bearing liabilities and interest earning assets, the net interest margin could be expected to decline in a falling interest rate environment.

 

Non-interest income increased from $10.9 million in the first half of 2002 to $15.3 million in the first half of 2003, a 40.3% increase.  This was primarily due to the increase in the gains on sales of mortgage loans and secondary mortgage fees resulting from the higher volume in residential mortgage originations as a result of the decrease in interest rates.

 

Net charge-offs during the first half of 2003 were $603,000 compared to $1,000 in the first half of 2002.  The Company’s provision for loan losses during the first half of 2003 was increased to $1.7 million from $1.6 million during the first half of the previous year.  Management, along with other financial institutions, shares a concern for the possible continued economic situation.  Should the uncertain economic climate continue, borrowers may experience difficulty, and the level of non-performing loans, charge-offs and delinquencies could rise.  Non-performing assets decreased from $5.6 million at year-end 2002 to $3.2 million as of June 30, 2003.

 

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During June, the Company completed its tender offer, for shares of its common stock, in which 723,053 shares were repurchased at $42.50 per share.  The Company also completed the sale of $27.5 million of cumulative trust preferred securities by its subsidiary, Old Second Capital Trust I (Nasdaq: OSBCP). An additional $4.1 million of cumulative trust preferred securities was sold in the first week of July, 2003.  The total cash payment required to complete the tender offer was approximately $30.7 million, which was funded by the sale of trust preferred securities and available corporate funds.

 

Old Second Bancorp, Inc. currently has twenty-three banking locations and four mortgage banking offices located in Kane, Kendall, DeKalb, DuPage, and LaSalle counties in Illinois.

 

 

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, please review our filings with the Securities and Exchange Commission.

 

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Old Second Bancorp, Inc.

Financial Highlights (Unaudited)

(Dollars in thousands except per share data)

 

 

 

Quarter Ended
June 30,

 

Year to Date
June 30,

 

Year-ended
December 31,

 

 

 

2003

 

2002

 

2003

 

2002

 

2002

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement:

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

15,635

 

$

14,038

 

$

30,259

 

$

27,808

 

$

57,482

 

Provision for loan losses

 

886

 

775

 

1,741

 

1,605

 

3,805

 

Non-interest income

 

7,928

 

5,353

 

15,338

 

10,936

 

25,276

 

Non-interest expense

 

13,831

 

11,347

 

26,987

 

22,303

 

48,056

 

Income taxes

 

3,207

 

2,476

 

6,023

 

5,064

 

10,751

 

Net income

 

5,639

 

4,793

 

10,846

 

9,772

 

20,146

 

 

 

 

 

 

 

 

 

 

 

 

 

End of Period Balances:

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income

 

$

1,182,640

 

$

963,627

 

$

1,182,640

 

$

963,627

 

$

1,061,867

 

Deposits

 

1,484,172

 

1,284,157

 

1,484,172

 

1,284,157

 

1,390,661

 

Stockholders’ equity

 

110,966

 

125,974

 

110,966

 

125,974

 

133,076

 

Total earning assets

 

1,613,959

 

1,398,889

 

1,613,959

 

1,398,889

 

1,523,149

 

Total assets

 

1,709,206

 

1,477,327

 

1,709,206

 

1,477,327

 

1,608,087

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances:

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income

 

$

1,151,509

 

$

938,196

 

$

1,115,380

 

$

920,355

 

$

969,982

 

Deposits

 

1,412,185

 

1,190,560

 

1,401,038

 

1,152,789

 

1,254,673

 

Stockholders’ equity

 

139,827

 

125,227

 

137,725

 

124,928

 

127,155

 

Total earning assets

 

1,578,134

 

1,304,236

 

1,550,540

 

1,279,534

 

1,379,516

 

Total assets

 

1,657,292

 

1,371,045

 

1,628,751

 

1,345,611

 

1,451,131

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.76

 

$

0.64

 

$

1.46

 

$

1.31

 

$

2.71

 

Diluted earnings per share

 

$

0.75

 

$

0.64

 

$

1.45

 

$

1.30

 

$

2.69

 

Dividends declared per share

 

$

0.20

 

$

0.20

 

$

0.40

 

$

0.35

 

$

0.75

 

Book value per share

 

$

16.57

 

$

17.02

 

$

16.57

 

$

17.02

 

$

18.00

 

Tangible book value  per share

 

$

16.06

 

$

16.51

 

$

16.06

 

$

16.51

 

$

17.52

 

Average number of shares outstanding

 

7,412,559

 

7,440,139

 

7,413,451

 

7,483,030

 

7,429,882

 

Ending number of shares outstanding

 

6,697,452

 

7,403,605

 

6,697,452

 

7,403,605

 

7,393,104

 

 

 

 

 

 

 

 

 

 

 

 

 

Profitability Ratios (annualized):

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.36

%

1.40

%

1.34

%

1.46

%

1.39

%

Return on average equity

 

16.18

%

15.35

%

15.88

%

15.77

%

15.84

%

Net interest margin (tax equivalent)

 

4.07

%

4.45

%

4.03

%

4.51

%

4.28

%

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets

 

$

3,168

 

$

4,875

 

$

3,168

 

$

4,875

 

$

5,575

 

Net charge offs

 

234

 

(146

)

603

 

1

 

349

 

Allowance for loan losses

 

16,907

 

13,917

 

16,907

 

13,917

 

15,769

 

Allowance for loan losses to loans

 

1.43

%

1.44

%

1.43

%

1.44

%

1.49

%

 

 

37 South River Street, Aurora, IL 60506-4172  •  (630) 892-0202  •  02bancorp.com

 

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