OLD SECOND BANCORP INC Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>OLD SECOND BANCORP INC filed its Q1 2024 10-Q report, detailing financial data and equity changes.</b>

AI Summary

OLD SECOND BANCORP INC (OSBC) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. The filing is a 10-Q for OLD SECOND BANCORP INC, reporting for the period ending March 31, 2024. The company's Central Index Key (CIK) is 0000357173. The Standard Industrial Classification (SIC) code is 6022 for Commercial Banks. The company is incorporated in Delaware (DE) with its fiscal year ending on December 31. The filing includes data points related to various equity and treasury stock accounts for multiple periods, including March 31, 2024, December 31, 2023, March 31, 2023, and December 31, 2022.

Why It Matters

For investors and stakeholders tracking OLD SECOND BANCORP INC, this filing contains several important signals. This 10-Q provides a snapshot of the company's financial health and equity structure as of the end of the first quarter of 2024, which is crucial for investors to assess performance and stability. The detailed equity information across multiple periods allows for trend analysis and comparison, helping stakeholders understand the evolution of the company's capital structure.

Risk Assessment

Risk Level: low — OLD SECOND BANCORP INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant negative developments, indicating a low level of immediate risk from this document alone.

Analyst Insight

Review the detailed equity and treasury stock data across the provided periods to identify any significant trends or changes in the company's capital structure.

Key Numbers

• 2024-03-31 — Reporting Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-09 — Filing Date (FILED AS OF DATE)
• 60507 — ZIP Code (BUSINESS ADDRESS)
• 6308920202 — Business Phone (BUSINESS PHONE)

Key Players & Entities

• OLD SECOND BANCORP INC (company) — FILER
• 0000357173 (company) — CENTRAL INDEX KEY
• 6022 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-09 (date) — FILED AS OF DATE
• AURORA (company) — CITY
• IL (company) — STATE

FAQ

Industry Context

Old Second Bancorp Inc. operates within the commercial banking sector, providing a range of financial services.

Regulatory Implications

As a commercial bank, the company is subject to regulations from various financial authorities, including the SEC for its public filings.

What Investors Should Do

1. Analyze the detailed equity balances for common stock, retained earnings, and additional paid-in capital across the reported periods.
2. Examine the Accumulated Other Comprehensive Income and its components (net unrealized investment gain/loss, cash flow hedges) for changes.
3. Note any specific mentions or data related to the 'Equity Incentive Plan 2019' or 'Restricted Stock and Restricted Stock Units'.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This filing is a 10-Q for the first quarter of 2024, providing updated financial information compared to previous filings.

Key Financial Figures

• $1.00 — 9 shares of common stock outstanding at $1.00 par value per share. Table of Contents

Filing Documents

• tmb-20240331x10q.htm (10-Q) — 6436KB
• tmb-20240331xex31d1.htm (EX-31.1) — 17KB
• tmb-20240331xex31d2.htm (EX-31.2) — 17KB
• tmb-20240331xex32d1.htm (EX-32.1) — 10KB
• tmb-20240331xex32d2.htm (EX-32.2) — 9KB
• tmb-20240331x10q001.jpg (GRAPHIC) — 16KB
• 0000357173-24-000035.txt (&nbsp;) — 26301KB
• tmb-20240331.xsd (EX-101.SCH) — 83KB
• tmb-20240331_cal.xml (EX-101.CAL) — 101KB
• tmb-20240331_def.xml (EX-101.DEF) — 419KB
• tmb-20240331_lab.xml (EX-101.LAB) — 770KB
• tmb-20240331_pre.xml (EX-101.PRE) — 593KB
• tmb-20240331x10q_htm.xml (XML) — 7860KB

Financial Statements

Financial Statements 4 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 58 Item 4.

Controls and Procedures

Controls and Procedures 59 PART II Item 1.

Legal Proceedings

Legal Proceedings 60 Item 1.A.

Risk Factors

Risk Factors 60 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 60 Item 3. Defaults Upon Senior Securities 60 Item 4. Mine Safety Disclosure 61 Item 5. Other Information 61 Item 6. Exhibits 62

Signatures

Signatures 63 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This report and other publicly available documents of the Company contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including, but not limited to, management's expectations regarding future plans, strategies and financial performance, including regulatory developments, industry and economic trends and estimates and assumptions underlying accounting policies. Forward-looking statements are based on our current beliefs, expectations and assumptions and on information currently available and, can be identified by the use of words such as "expects," "intends," "believes," "may," "will," "would," "could," "should," "plan," "anticipate," "estimate," "possible," "likely" or the negative thereof as well as other similar words and expressions of the future. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict as to timing, extent, likelihood and degree of occurrence, which could cause our actual results to differ materially from those anticipated in or by such statements. Potential risks and uncertainties include, but are not limited to, the following: our ability to execute our growth strategy; negative economic conditions that adversely affect the economy, real estate values, the job market and other factors nationally and in our market area, in each case that may affect our liquidity and the performance of our loan portfolio; risks with respect to our ability to successfully expand and integrate businesses and operations that we acquire, as well our ability to identify and complete future mergers or acquisitions; the financial success and viability of the borrowers of our commercial loans; changes in U.S. monetary policy, the level and volatility of interest rates, the capital markets and other market conditions that may affect, among other things, our liquidity and

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Old Second Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) (unaudited) March 31, December 31, 2024 2023 Assets Cash and due from banks $ 48,841 $ 55,534 Interest earning deposits with financial institutions 49,253 44,611 Cash and cash equivalents 98,094 100,145 Securities available-for-sale, at fair value 1,168,797 1,192,829 Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock 28,518 33,355 Loans held-for-sale 1,072 1,322 Loans 3,969,411 4,042,953 Less: allowance for credit losses on loans 44,113 44,264 Net loans 3,925,298 3,998,689 Premises and equipment, net 81,290 79,310 Other real estate owned 5,123 5,123 Mortgage servicing rights, at fair value 10,564 10,344 Goodwill 86,478 86,478 Core deposit intangible 10,637 11,217 Bank-owned life insurance ("BOLI") 110,490 109,318 Deferred tax assets, net 31,699 31,077 Other assets 58,012 63,592 Total assets $ 5,616,072 $ 5,722,799 Liabilities Deposits: Noninterest bearing demand $ 1,799,927 $ 1,834,891 Interest bearing: Savings, NOW, and money market 2,221,696 2,207,949 Time 586,652 527,906 Total deposits 4,608,275 4,570,746 Securities sold under repurchase agreements 33,546 26,470 Other short-term borrowings 220,000 405,000 Junior subordinated debentures 25,773 25,773 Subordinated debentures 59,403 59,382 Other liabilities 72,916 58,147 Total liabilities 5,019,913 5,145,518 Stockholders' Equity Common stock 44,908 44,705 Additional paid-in capital 203,129 202,223 Retained earnings 412,388 393,311 Accumulated other comprehensive loss ( 63,361 ) ( 62,781 ) Treasury stock ( 905 ) ( 177 ) Total stockholders' equity 596,159 577,281 Total liabilities and stockholders' equity $ 5,616,072 $ 5,722,799 March 31, 2024 Dec

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data, unaudited) Note 1 – Basis of Presentation and Changes in Significant Accounting Policies The accounting policies followed in the preparation of the interim consolidated financial statements are consistent with those used in the preparation of the annual financial information. The interim consolidated financial statements reflect all normal and recurring adjustments that are necessary, in the opinion of management, for a fair statement of results for the interim period presented. Results for the period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These interim consolidated financial statements and accompanying notes are unaudited and should be read in conjunction with the audited financial statements and notes included in Old Second Bancorp, Inc.'s (the "Company") annual report on Form 10-K for the year ended December 31, 2023. Unless otherwise indicated, dollar amounts in the tables contained in the notes to the consolidated financial statements are in thousands. Certain items in prior periods have been reclassified to conform to the current presentation. The Company's consolidated financial statements are prepared in accordance with United States generally accepted accounting principles ("GAAP") and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the consolidated financial statements. Future changes in information may affect these estimates, assumptions, and judgments, which, in turn, may affect amounts reported in the consolidated financial statements. Recent Accounting Pronouncements T

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data, unaudited) ASU 2024-02 – On March 29, 2024, the FASB issued ASU 2024-02 "Codification Improvements" amends the Codification to remove references to various concept statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. ASU 2024-02 is effective January 1, 2025 and is not expected to have a material impact the financial statements of the Company. Change in Significant Accounting Policies Significant accounting policies are presented in Note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the consolidated financial statements and how those values are determined. During the first quarter of 2024, the Company had no changes to significant accounting policies or estimates. Subsequent Events On April 16, 2024, our Board of Directors declared a cash dividend of $ 0.05 per share of common stock payable on May 6, 2024, to stockholders of record as of April 26, 2024; dividends of $ 2.2 million were paid to stockholders on May 6, 2024. 10 Table of Contents Old Second Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Dollar amounts in thousands, except per share data, unaudited) Note 2 – Securities Investment Portfolio Management Our investment portfolio serves the liquidity needs and income objectives of the Company. While the portfolio serves as an important component of the overall liquidity management at the Bank, portions of the portfolio also serve as income producing assets. The size and composition of the portfolio reflects liquidity needs, loan demand and interest income objectives. Portfolio size and composition will be adjusted from time to time. While a significant portion of the portfolio consists of readily marketable securities to address liquidity, other parts of the portfolio may reflect funds invested pending future loan demand or to maximize interest income without undue interest rate risk. Investments are comprised of debt securities and non-marketable equity investments. Securities available-for-sale are carried at fair value. Unrealized gains and losses, net of tax, on securities available-for-sale are reported as a separate component of equity. This balance sheet component changes as interest rates and market conditions change. Unrealized gains and losses are not included in the calculation of regulatory capital. Federal Home Loan Bank of Chicago ("FHLBC") and Federal Reserve Bank of Chicago ("FRBC") stock are considered nonmarketable equity investments. FHLBC stock was recorded at $ 13.6 million at March 31, 2024 and $ 18.5 million at December 31, 2023. FRBC stock was recorded at $ 14.9 million at March 31, 2024 and December 31, 2023. The following tables summarize the amortized cost and fair value of the securities portfolio at March 31, 2024, and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses: Gross Gross Amortized Unrealized Unrealized Fair March 31, 2024 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 174,7