NASDAQ$OSBC

Old Second Bancorp Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Old Second reported net income for Q1 2022, driven by net interest and dividend income and gain on mortgage servicing rights.

Old Second Bancorp, Inc. reported a net income of $12.0 million, or $0.27 per diluted share, for the first quarter of 2022. The increase in net income was primarily due to net interest and dividend income of $41.2 million and a $3.0 million pre-tax mark to market gain on mortgage servicing rights.

  • Net income was $12.0 million, or $0.27 per diluted share.
  • Adjusted net income was $16.1 million, or $0.36 per diluted share, excluding $5.6 million of pre-tax acquisition-related costs.
  • Net interest and dividend income was $41.2 million, an increase of $17.7 million from the first quarter of 2021.
  • Noninterest income was $13.5 million, an increase of $2.2 million compared to the first quarter of 2021.

Headline financials

Total Revenue

$54.7M

Previous: $34.8M+57.1%
EPS (adj)

$0.36

Previous: $0.40-10.0%
Allowance for Credit Losses to Total Loans

1.3%

Previous: 1.6%-18.8%
Capital Expenditures

-$487K

Previous: -$343K-42.0%
Free Cash Flow

$11.5M

Previous: $11.5M-0.0%
Net Income

$12M

Previous: $11.9M+1.2%
Operating Income

$43.2M

Previous: -$96.2M+144.9%
Gross Profit

$51.7M

Previous: $31.8M+62.5%
Cash & Equivalents

$635M

Previous: $441M+43.9%
Total Assets

$6.22B

Previous: $3.17B+96.5%
Stock-Based Comp

$747K

Previous: $114K+555.3%

Revenue & EPS history

Old Second · Revenue · Quarterly

$54.7M

Q1 2022+57.1%vs Q1 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Forward guidance

Company is optimistic on loan growth trends in the near term and believes it can do over the intermediate term. Expect these pressures to lessen in coming quarters, and combined with the prospect of higher rates, offer the potential for expanding margins and strong earnings growth in the near term.

Tailwinds

  • Solid overall core results
  • Encouraged about the trends and momentum in our businesses with robust lending pipelines and improving levels of activity within our customer base.
  • Making solid progress on the integration of West Suburban
  • The combination will deliver value to our stockholders with significant improvements in core profitability as redundancies are eliminated.
  • Loan originations were very strong in the first quarter

Headwinds

  • Balance sheet growth mitigated by Paycheck Protection Program loan forgiveness and paydowns in acquired loan participations.
  • Continued to face branch disruptions due to labor shortages and COVID-19-related closures in the first quarter of 2022.
  • Market interest rate fluctuations
  • Changes year over year in the composition of the securities portfolio.
  • Lower yielding loans in the first quarter of 2022

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 2022

Historical avgQ1 2022

-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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