NASDAQ$OSBC

Old Second Bancorp Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported net income of $19.5 million, or $0.43 per diluted share.

Old Second Bancorp, Inc. reported a net income of $19.5 million, or $0.43 per diluted share, for the third quarter of 2022. The increase in net income was primarily due to net interest and dividend income of $55.6 million, which increased due to loan growth and market interest rate increases.

  • Third quarter 2022 net income was $19.5 million, reflecting an increase in earnings of $7.3 million from the second quarter of 2022, and an increase of $11.1 million from the third quarter of 2021.
  • Net interest and dividend income was $55.6 million for the third quarter of 2022, an increase of $10.3 million from the second quarter of 2022, and an increase of $33.0 million from the third quarter of 2021.
  • Noninterest income was $11.5 million for the third quarter of 2022, an increase of $2.3 million from the second quarter of 2022, and an increase of $2.2 million from the third quarter of 2021.
  • Noninterest expense was $36.0 million for the third quarter of 2022, a decrease of $1.3 million compared to the second quarter of 2022, and an increase of $13.9 million compared to the third quarter of 2021.

Headline financials

Total Revenue

$67.1M

Previous: $32M+109.9%
EPS (adj)

$0.43

Previous: $0.29+48.3%
Efficiency Ratio

53.1%

No prior period
Capital Expenditures

-$2.67M

Previous: -$929K-187.4%
Free Cash Flow

$16.9M

Previous: $7.48M+125.2%
Net Income

$19.5M

Previous: $8.41M+132.1%
Operating Income

$59.5M

Previous: $26.3M+126.4%
Gross Profit

$62.6M

Previous: $30.5M+105.4%
Cash & Equivalents

$116M

Previous: $519M-77.6%
Total Assets

$5.97B

Previous: $3.28B+82.2%
Stock-Based Comp

$707K

Previous: $502K+40.8%

Revenue & EPS history

Old Second · Revenue · Quarterly

$67.1M

Q3 2022+109.9%vs Q3 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Forward guidance

Asset repricing should remain robust in the coming quarters which will allow for further improvement in our core trends including additional expansion in the net interest margin.

Tailwinds

  • Asset repricing should remain robust in the coming quarters.
  • Further improvement in our core trends including additional expansion in the net interest margin.
  • Deposit repricing is expected to remain excellent.
  • We have been extremely cautious and managed the risk relatively well.
  • We remain invested at the short end of the yield curve with a weighted average portfolio duration at September 30th of 2.65 years.

Headwinds

  • The speed of interest rate changes this year does pose certain challenges.
  • The speed of interest rate changes this year is demonstrated by the unrealized loss position of our securities portfolio.
  • Deposit repricing will be modestly higher in the near future.
  • The speed of interest rate changes this year does pose certain challenges as demonstrated by the unrealized loss position of our securities portfolio.
  • The speed of interest rate changes this year does pose certain challenges as demonstrated by the unrealized loss position of our securities portfolio.

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 Q3 2022

Historical avgQ3 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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