NASDAQ$OSBC

Old Second Bancorp Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported first quarter net income of $11.9 million and increased quarterly dividend to $0.05 per share.

Old Second Bancorp, Inc. reported a strong first quarter in 2021 with net income of $11.9 million, or $0.40 per diluted share, compared to a net income of $0.27 per diluted share in Q4 2020, and $0.01 per diluted share in Q1 2020. The board of directors approved a 400% increase to the quarterly dividend, from $0.01 to $0.05 per common share.

  • First quarter 2021 net income was $11.9 million, an increase of $3.8 million from the fourth quarter of 2020, and an increase of $11.6 million from the first quarter of 2020.
  • Net interest and dividend income was $23.5 million for the first quarter of 2021, a decrease of $334,000, or 1.4%, from the fourth quarter of 2020, but an increase of $885,000, or 3.9%, from first quarter of 2020.
  • Recorded a $3.0 million reversal of provision for credit losses in the first quarter of 2021.
  • Noninterest income was $11.3 million for the first quarter of 2021, an increase of $2.5 million, or 28.6%, compared to $8.8 million for the fourth quarter of 2020, and an increase of $5.0 million, or 78.7%, compared to $6.3 million for the first quarter of 2020.

Headline financials

Total Revenue

$34.8M

Previous: $29M+20.2%
EPS (adj)

$0.40

Previous: $0.20+100.0%
Efficiency Ratio

64.0%

Previous: 66.3%-3.5%
Allowance for Credit Losses to Total Loans

1.6%

Previous: 1.5%+6.7%
Allowance for Credit Losses to Nonaccrual Loans

152.0%

No prior period
Capital Expenditures

-$343K

Previous: -$887K+61.3%
Free Cash Flow

$11.5M

Previous: -$612K+1985.0%
Net Income

$11.9M

Previous: $275K+4219.6%
Operating Income

-$96.2M

Previous: $14.9M-743.9%
Gross Profit

$31.8M

Previous: $21M+51.7%
Cash & Equivalents

$441M

Previous: $73.1M+502.9%
Total Assets

$3.17B

Previous: $2.66B+19.2%
Stock-Based Comp

$114K

Previous: $729K-84.4%

Revenue & EPS history

Old Second · Revenue · Quarterly

$34.8M

Q1 2021+20.2%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Old Second Bancorp believes it remains conservatively positioned to meet the challenges of the coming year.

Tailwinds

  • Solid financial results
  • Strong operating leverage
  • Grew deposits
  • Continued to build capital position
  • Credit trends continued to improve and loan loss reserves reduced

Headwinds

  • The strength of the United States economy in general and the strength of the local economies in which we conduct our operations may be different than expected, including, but not limited to, due to the negative impacts and disruptions resulting from the global coronavirus
  • The rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses
  • Changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action, including, but not limited to, the Coronavirus Aid, Relief, and Economic Security Act, or the “CARES Act”
  • Adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on us
  • Changes in interest rates, which may affect our net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of our assets, including our investment securities

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.1%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+3.5%

Avg return

30 days after

46%

29 / 63 earnings

Positive

+7.8%

Q3 2024

Best reaction

-6.3%

Q3 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.3%-1.4%-0.6%
Q4 2025-1.1%-7.7%-4.2%
Q3 2025-0.3%+3.7%+3.2%
Q2 2025-2.2%-1.2%+2.7%
Q1 2025+0.9%+4.4%+6.1%
Q3 2024+7.8%+3.5%+16.8%
Q2 2024-1.3%-0.3%-4.0%
Q1 2024+3.2%+8.9%+12.1%
Q3 2023+0.4%-1.1%+7.1%
Q2 2023+5.6%+8.7%+2.6%
Q1 2023-0.1%-3.5%-10.3%
Q4 2022+6.6%+9.6%+10.7%
Q3 2022+2.2%+7.8%+17.7%
Q2 2022-2.1%-1.7%-3.0%
Q1 2022+2.2%+3.9%+9.3%
Q4 2021+0.9%+0.9%+0.1%
Q3 2021+2.3%+4.3%+1.4%
Q2 2021-3.5%-4.9%-4.4%
Q1 2021+2.2%+7.1%+12.1%
Q4 2020-4.8%-0.7%+15.9%
Q3 2020+6.0%+8.4%+11.0%
Q2 2020+7.8%+3.0%+2.4%
Q1 2020-4.5%+6.4%+2.0%
Q4 2019-1.1%-3.7%-2.9%
Q3 2019-1.0%+0.2%+0.3%
Q2 2019+4.2%+4.1%-7.6%
Q1 2019-5.5%-2.8%-6.2%
Q4 2018-2.5%+3.0%+7.0%
Q3 2018-1.6%+0.1%+3.6%
Q2 2018+3.3%+1.0%+3.3%
Q1 2018-0.4%+0.4%+6.0%
Q4 2017-0.7%-1.0%-3.1%
Q3 2017+4.6%+5.7%-3.8%
Q2 2017+1.7%+1.7%-1.7%
Q1 2017+0.8%-0.8%-0.8%
Q4 2016+4.4%+3.9%+5.3%
Q3 2016-3.7%-0.6%+14.9%
Q2 2016+0.7%+4.9%+10.4%
Q1 2016-2.0%
Q4 2015+0.0%
Q3 2015+0.2%
Q2 2015-3.1%
Q1 2015+2.8%
Q4 2014+2.7%
Q3 2014-5.2%
Q2 2014-1.5%
Q1 2014+0.4%
Q4 2013-0.4%
Q3 2013-2.8%
Q2 2013-4.1%
Q1 2013-3.2%
Q4 2012+1.2%
Q3 2012+0.0%
Q2 2012+0.7%
Q1 2011-4.7%
Q1 2012+2.2%
Q4 2010+3.2%
Q4 2011+3.2%
Q3 2011-6.3%
Q3 2010-6.3%
Q2 2011-2.5%
Q2 2010-2.5%
Q1 2010-2.4%

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