By Capital Requirements Exceeded;Asset Quality Strengthened
AURORA, Ill.--(BUSINESS WIRE)-- Old Second Bancorp, Inc. (the "Company" or "Old Second") (NASDAQ: OSBC), parent company of Old Second National Bank (the "Bank"), today announced results of operations for the fourth quarter of 2011. The Company reported a net loss of $3.0 million, compared to a net loss of $76.6 million ($11.6 million pretax loss before deferred tax asset valuation allowance adjustment) in the fourth quarter of 2010. The Company's net loss available to common shareholders of $4.2 million, or $0.30 per diluted share, for the fourth quarter of 2011 and a loss of $0.79 per diluted share for the year, compared to a net loss available to common shareholders of $77.8 million, or $5.48 per diluted share, in the fourth quarter of 2010 and a loss of $8.03 in 2010.
The Company's $1.4 million provision for loan losses for the fourth quarter of 2011 compared favorably to the $14.0 million provision in the fourth quarter of 2010. The allowance for loan losses was 37.42% of nonperforming loans as of December 31, 2011, compared to 33.34% a year earlier and 42.95% as of September 30, 2011.
"We continue to exceed the capital ratio objectives that we agreed to with the OCC," said Bill Skoglund, Chairman and CEO. "As of December 31, 2011, the Bank's leverage ratio was 9.34%, up 124 basis points from December 31, 2010, and 59 basis points above the 8.75% objective in our OCC agreement. The Bank's total capital ratio was 12.97%, up 134 basis points from December 31, 2010, and 172 basis points above the objective of 11.25% in our OCC agreement."
"Consecutive quarterly declines in nonperforming assets over the course of 2011 reflect our hard work and progress," added Skoglund. "While uncertainty remains in the broader economy, we have seen recurring signs of stabilization in our key markets, which we believe will be an important contributor to our continuing improvement. Further, we are pleased to provide outstanding service to our valued customers and to work with them to achieve their long-term financial objectives."
2011 Financial Highlights/Overview
Earnings
- Fourth quarter net loss before taxes of $3.0 million compared to a net loss before taxes of $11.6 million in the same quarter of 2010.
- Fourth quarter net loss to common stockholders of $4.2 million compared to a net loss to common stockholders of $77.8 million ($11.6 million loss before the valuation allowance adjustment against deferred tax assets) in the same quarter of 2010.
- The tax-equivalent net interest margin was 3.44% during the fourth quarter of 2011 compared to 3.55% in the same quarter of 2010, and reflected a decrease of 19 basis points compared to the third quarter of 2011.
- Noninterest income of $36.0 million was $8.9 million lower for the year ended December 31 2011 as compared to 2010 reflecting lower securities gains, deposit service charges, and mortgage sale revenues. Results for 2010 also included nonrecurring revenues on bank-owned life insurance and litigation related income. Excluding the nonrecurring revenue recorded in 2010, noninterest income decreased by $5.3 million or 12.8% compared to full year 2010.
- Noninterest expenses of $97.6 million were $3.0 million or 3.0% lower in the year ended December 31, 2011 than in the same period in 2010 reflecting flat or reduced expenses in most categories except general bank insurance and legal fees.
Capital
- Bank leverage capital ratio increased to 9.34% from 8.10% at December 31, 2010.
- Bank total capital ratio increased to 12.97% from 11.63% at December 31, 2010.
- Company leverage ratio increased to 4.98% from 4.74% at December 31, 2010.
- Company total capital ratio increased to 12.38% from 11.46% at December 31, 2010.
- As expected due to net losses in 2011, Company tangible common equity to tangible assets decreased from 0.15% in the third quarter of 2011 to (.08)% in the fourth quarter of 2011 and declined from 0.40% at year end 2010.
Asset Quality/Balance Sheet Overview
- Nonperforming loans declined $89.9 million (39.3%) during 2011 to $138.9 million as of December 31, 2011, from $228.9 million as of December 31, 2010 and declined $398,000 (0.3%) during the quarter from $139.3 million as of September 30, 2011.
- The provision for loan loss expense decreased to $1.4 million for the fourth quarter ended December 31, 2011, compared to $14.0 million in the same period in 2010.
- Loans that were classified as performing but 30 to 89 days past due and still accruing interest decreased to $12.1 million at December 31, 2011, from $13.9 million at December 31, 2010.
- Securities available-for-sale increased $158.9 million during 2011 to $307.6 million from $148.6 million at December 31, 2010 with no impact on the current liquidity profile and under limits specified in our Investment Policy. At $154.0 million or 50.1% of the total portfolio, U. S. Government agency mortgage backed securities are the largest component of the total portfolio.
Non-GAAP Presentations: Management has traditionally disclosed certain non-GAAP ratios to evaluate and measure the Company's performance, including a net interest margin calculation. The net interest margin is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Management believes this measure provides investors with information regarding balance sheet profitability. Management also presents an efficiency ratio that is non-GAAP. The efficiency ratio is calculated by dividing adjusted noninterest expense by the sum of net interest income on a tax equivalent basis and adjusted noninterest income. Management believes this measure provides investors with information regarding the Company's operating efficiency and how management evaluates performance internally. Consistent with industry practice, management also disclosed the tangible common equity to tangible assets and the Tier 1 common equity to risk weighted assets in the discussion immediately above and in the following tables. The tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
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.
| Financial Highlights (unaudited) | ||||||||||||||||
| In thousands, except share data | As of and for the | As of and for the | ||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Summary Statements of Operations: | ||||||||||||||||
| Net interest and dividend income | $ | 15,017 | $ | 18,156 | $ | 63,950 | $ | 78,613 | ||||||||
| Provision for loan losses | 1,387 | 14,000 | 8,887 | 89,668 | ||||||||||||
| Noninterest income | 9,162 | 11,100 | 36,008 | 44,910 | ||||||||||||
| Noninterest expense | 25,793 | 26,853 | 97,569 | 100,636 | ||||||||||||
| Provision for income taxes | - | 65,027 | - | 41,868 | ||||||||||||
| Net loss | (3,001 | ) | (76,624 | ) | (6,498 | ) | (108,649 | ) | ||||||||
| Net loss available to common stockholders | (4,207 | ) | (77,768 | ) | (11,228 | ) | (113,187 | ) | ||||||||
| Key Ratios (annualized): | ||||||||||||||||
| Return on average assets | (0.62 | %) | (13.29 | %) | (0.32 | %) | (4.48 | %) | ||||||||
| Return to common stockholders on average assets | (0.86 | %) | (13.49 | %) | (0.56 | %) | (4.66 | %) | ||||||||
| Return on average equity | (15.37 | %) | (192.49 | %) | (8.15 | %) | (61.79 | %) | ||||||||
| Return on average common equity | (247.56 | %) | (350.13 | %) | (120.30 | %) | (106.41 | %) | ||||||||
| Net interest margin (non-GAAP tax equivalent)1 | 3.44 | % | 3.55 | % | 3.54 | % | 3.64 | % | ||||||||
| Efficiency ratio (non-GAAP tax equivalent)1 | 75.17 | % | 64.67 | % | 73.57 | % | 62.15 | % | ||||||||
| Tangible common equity to tangible assets2 | (0.08 | %) | 0.40 | % | (0.08 | %) | 0.40 | % | ||||||||
| Tier 1 common equity to risk weighted assets2 | (0.05 | %) | 0.52 | % | (0.05 | %) | 0.52 | % | ||||||||
Company total capital to risk weighted assets3 | 12.38 | % | 11.46 | % | 12.38 | % | 11.46 | % | ||||||||
Company tier 1 capital to risk weighted assets3 | 6.21 | % | 6.09 | % | 6.21 | % | 6.09 | % | ||||||||
| Company tier 1 capital to average assets | 4.98 | % | 4.74 | % | 4.98 | % | 4.74 | % | ||||||||
Bank total capital to risk weighted assets3 | 12.97 | % | 11.63 | % | 12.97 | % | 11.63 | % | ||||||||
Bank tier 1 capital to risk weighted assets3 | 11.70 | % | 10.34 | % | 11.70 | % | 10.34 | % | ||||||||
| Bank tier 1 capital to average assets | 9.34 | % | 8.10 | % | 9.34 | % | 8.10 | % | ||||||||
| Per Share Data: | ||||||||||||||||
| Basic loss per share | ($0.30 | ) | ($5.48 | ) | ($0.79 | ) | ($8.03 | ) | ||||||||
| Diluted loss per share | ($0.30 | ) | ($5.48 | ) | ($0.79 | ) | ($8.03 | ) | ||||||||
| Dividends declared per share | $0.00 | $0.00 | $0.00 | $0.02 | ||||||||||||
| Common book value per share | $0.22 | $1.01 | $0.22 | $1.01 | ||||||||||||
| Tangible common book value per share | ($0.11 | ) | $0.61 | ($0.11 | ) | $0.61 | ||||||||||
| Ending number of shares outstanding | 14,034,991 | 13,911,475 | 14,034,991 | 13,911,475 | ||||||||||||
| Average number of shares outstanding | 14,034,991 | 13,911,475 | 14,019,920 | 13,918,309 | ||||||||||||
| Diluted average shares outstanding | 14,216,163 | 14,193,303 | 14,220,822 | 14,104,228 | ||||||||||||
| End of Period Balances: | ||||||||||||||||
| Loans | $ | 1,368,985 | $ | 1,690,129 | $ | 1,368,985 | $ | 1,690,129 | ||||||||
| Deposits | 1,740,781 | 1,908,528 | 1,740,781 | 1,908,528 | ||||||||||||
| Stockholders' equity | 74,001 | 83,958 | 74,001 | 83,958 | ||||||||||||
| Total earning assets | 1,751,662 | 1,933,296 | 1,751,662 | 1,933,296 | ||||||||||||
| Total assets | 1,941,417 | 2,123,921 | 1,941,417 | 2,123,921 | ||||||||||||
| Average Balances: | ||||||||||||||||
| Loans | $ | 1,402,351 | $ | 1,774,787 | $ | 1,527,311 | $ | 1,900,604 | ||||||||
| Deposits | 1,731,793 | 1,998,044 | 1,806,924 | 2,107,883 | ||||||||||||
| Stockholders' equity | 77,488 | 157,931 | 79,725 | 175,850 | ||||||||||||
| Total earning assets | 1,741,388 | 2,038,479 | 1,817,586 | 2,189,354 | ||||||||||||
| Total assets | 1,933,572 | 2,287,517 | 2,015,464 | 2,426,356 | ||||||||||||
1 Tabular disclosures of the tax equivalent calculation including the net interest margin and efficiency ratio for the quarters ending December 31, 2011, and 2010, respectively, are presented on page 20.
2 The information to reconcile GAAP measures and the ratios of Tier 1 capital, total capital, tangible common equity or Tier 1 common equity, as applicable, to average total assets, risk-weighted assets or tangible assets, as applicable, are presented on page 21.
3 The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Those agencies define the basis for these calculations including the prescribed methodology for the calculation of the amount of risk-weighted assets.
| Financial Highlights, continued (unaudited) | ||||||||||||||||
| In thousands, except share data | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Asset Quality | ||||||||||||||||
| Charge-offs | $ | 10,192 | $ | 8,715 | $ | 41,169 | $ | 85,009 | ||||||||
| Recoveries | 950 | 2,859 | 7,971 | 7,109 | ||||||||||||
| Net charge-offs | $ | 9,242 | $ | 5,856 | $ | 33,198 | $ | 77,900 | ||||||||
| Provision for loan losses | 1,387 | 14,000 | 8,887 | 89,668 | ||||||||||||
| Allowance for loan losses to loans | 3.80 | % | 4.51 | % | 3.80 | % | 4.51 | % | ||||||||
| As of | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2011 | 2010 | |||||||||||||||
| Nonaccrual loans1 | $ | 126,786 | $ | 212,225 | ||||||||||||
| Restructured loans | 11,839 | 15,637 | ||||||||||||||
| Loans past due 90 days | 318 | 1,013 | ||||||||||||||
| Nonperforming loans | 138,943 | 228,875 | ||||||||||||||
| Other real estate | 93,290 | 75,613 | ||||||||||||||
| Receivable from swap terminations | - | 3,520 | ||||||||||||||
| Nonperforming assets | $ | 232,233 | $ | 308,008 | ||||||||||||
1 Includes $16.2 million and $23.2 million in nonaccrual restructured loans at December 31, 2011, and 2010, respectively. | ||||||||||||||||
| Major Classifications of Loans | As of | |||||||||||||||
| December 31, | ||||||||||||||||
| 2011 | 2010 | |||||||||||||||
| Commercial and industrial | $ | 98,099 | $ | 149,552 | ||||||||||||
| Real estate - commercial | 704,492 | 821,101 | ||||||||||||||
| Real estate - construction | 71,436 | 129,601 | ||||||||||||||
| Real estate - residential | 477,200 | 557,635 | ||||||||||||||
| Installment | 3,789 | 4,949 | ||||||||||||||
| Overdraft | 457 | 739 | ||||||||||||||
| Lease financing receivables | 2,087 | 2,774 | ||||||||||||||
| Other | 11,498 | 24,487 | ||||||||||||||
| 1,369,058 | 1,690,838 | |||||||||||||||
| Unearned origination fees, net | (73 | ) | (709 | ) | ||||||||||||
| $ | 1,368,985 | $ | 1,690,129 | |||||||||||||
| Major Classifications of Deposits | As of | |||||||||||||||
| December 31, | ||||||||||||||||
| 2011 | 2010 | |||||||||||||||
| Noninterest bearing | $ | 361,963 | $ | 330,846 | ||||||||||||
| Savings | 196,870 | 180,127 | ||||||||||||||
| NOW accounts | 275,957 | 304,287 | ||||||||||||||
| Money market accounts | 288,508 | 297,702 | ||||||||||||||
| Certificates of deposits of less than $100,000 | 390,530 | 491,234 | ||||||||||||||
| Certificates of deposits of $100,000 or more | 226,953 | 304,332 | ||||||||||||||
| $ | 1,740,781 | $ | 1,908,528 | |||||||||||||
| Old Second Bancorp, Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| (unaudited) | (audited) | |||||||
| December 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 2,692 | $ | 28,584 | ||||
| Interest bearing deposits with financial institutions | 48,257 | 69,492 | ||||||
| Federal funds sold | - | 682 | ||||||
| Cash and cash equivalents | 50,949 | 98,758 | ||||||
| Securities available-for-sale | 307,564 | 148,647 | ||||||
| Federal Home Loan Bank and Federal Reserve Bank stock | 14,050 | 13,691 | ||||||
| Loans held-for-sale | 12,806 | 10,655 | ||||||
| Loans | 1,368,985 | 1,690,129 | ||||||
| Less: allowance for loan losses | 51,997 | 76,308 | ||||||
| Net loans | 1,316,988 | 1,613,821 | ||||||
| Premises and equipment, net | 50,477 | 54,640 | ||||||
| Other real estate owned, net | 93,290 | 75,613 | ||||||
| Mortgage servicing rights, net | 3,487 | 3,897 | ||||||
| Core deposit and other intangible asset, net | 4,678 | 5,525 | ||||||
| Bank-owned life insurance (BOLI) | 52,595 | 50,966 | ||||||
| Other assets | 34,534 | 47,708 | ||||||
| Total assets | $ | 1,941,418 | $ | 2,123,921 | ||||
| Liabilities | ||||||||
| Deposits: | ||||||||
| Noninterest bearing demand | $ | 361,963 | $ | 330,846 | ||||
| Interest bearing: | ||||||||
| Savings, NOW, and money market | 761,335 | 782,116 | ||||||
| Time | 617,483 | 795,566 | ||||||
| Total deposits | 1,740,781 | 1,908,528 | ||||||
| Securities sold under repurchase agreements | 901 | 2,018 | ||||||
| Other short-term borrowings | - | 4,141 | ||||||
| Junior subordinated debentures | 58,378 | 58,378 | ||||||
| Subordinated debt | 45,000 | 45,000 | ||||||
| Notes payable and other borrowings | 500 | 500 | ||||||
| Other liabilities | 21,856 | 21,398 | ||||||
| Total liabilities | 1,867,416 | 2,039,963 | ||||||
| Stockholders' Equity | ||||||||
| Preferred stock | 70,863 | 69,921 | ||||||
| Common stock | 18,628 | 18,467 | ||||||
| Additional paid-in capital | 65,999 | 65,209 | ||||||
| Retained earnings | 17,107 | 28,335 | ||||||
| Accumulated other comprehensive loss | (3,702 | ) | (3,130 | ) | ||||
| Treasury stock | (94,893 | ) | (94,844 | ) | ||||
| Total stockholders' equity | 74,002 | 83,958 | ||||||
| Total liabilities and stockholders' equity | $ | 1,941,418 | $ | 2,123,921 | ||||
| Old Second Bancorp, Inc. and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (In thousands, except share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Year to Date | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Interest and Dividend Income | (unaudited) | |||||||||||||||
| Loans, including fees | $ | 18,319 | $ | 23,006 | $ | 80,084 | $ | 99,297 | ||||||||
| Loans held-for-sale | 144 | 118 | 342 | 413 | ||||||||||||
| Securities, taxable | 1,298 | 1,052 | 3,989 | 4,766 | ||||||||||||
| Securities, tax exempt | 104 | 151 | 487 | 1,795 | ||||||||||||
| Dividends from Federal Reserve Bank and Federal Home Loan Bank stock | 74 | 67 | 290 | 251 | ||||||||||||
| Federal funds sold | - | 1 | 1 | 3 | ||||||||||||
| Interest bearing deposits with financial institutions | 33 | 54 | 230 | 156 | ||||||||||||
| Total interest and dividend income | 19,972 | 24,449 | 85,423 | 106,681 | ||||||||||||
| Interest Expense | ||||||||||||||||
| Savings, NOW, and money market deposits | 304 | 663 | 1,579 | 4,067 | ||||||||||||
| Time deposits | 3,258 | 4,326 | 14,478 | 18,795 | ||||||||||||
| Securities sold under repurchase agreements | 1 | 1 | 1 | 28 | ||||||||||||
| Other short-term borrowings | - | - | - | 18 | ||||||||||||
| Junior subordinated debentures | 1,176 | 1,093 | 4,577 | 4,309 | ||||||||||||
| Subordinated debt | 212 | 206 | 822 | 838 | ||||||||||||
| Notes payable and other borrowings | 4 | 4 | 16 | 13 | ||||||||||||
| Total interest expense | 4,955 | 6,293 | 21,473 | 28,068 | ||||||||||||
| Net interest and dividend income | 15,017 | 18,156 | 63,950 | 78,613 | ||||||||||||
| Provision for loan losses | 1,387 | 14,000 | 8,887 | 89,668 | ||||||||||||
| Net interest and dividend income (expense) after provision for loan losses | 13,630 | 4,156 | 55,063 | (11,055 | ) | |||||||||||
| Noninterest Income | ||||||||||||||||
| Trust income | 1,661 | 1,594 | 6,817 | 6,849 | ||||||||||||
| Service charges on deposits | 2,114 | 2,021 | 8,135 | 8,563 | ||||||||||||
| Secondary mortgage fees | 323 | 503 | 1,055 | 1,537 | ||||||||||||
| Mortgage servicing (loss) gain, net of changes in fair value | (120 | ) | 813 | (341 | ) | (63 | ) | |||||||||
| Net gain on sales of mortgage loans | 1,791 | 2,980 | 5,458 | 9,696 | ||||||||||||
| Securities gains, net | 43 | 353 | 631 | 2,727 | ||||||||||||
| Increase in cash surrender value of bank-owned life insurance | 499 | 464 | 1,629 | 1,674 | ||||||||||||
| Death benefit realized on bank-owned life insurance | - | 5 | - | 943 | ||||||||||||
| Debit card interchange income | 745 | 697 | 3,004 | 2,783 | ||||||||||||
| Lease revenue from other real estate owned | 1,098 | 371 | 3,635 | 1,760 | ||||||||||||
| Net gain (loss) on sales of other real estate owned | 378 | (83 | ) | 1,311 | 614 | |||||||||||
| Litigation related income | - | 11 | - | 2,656 | ||||||||||||
| Other income | 630 | 1,371 | 4,674 | 5,171 | ||||||||||||
| Total noninterest income | 9,162 | 11,100 | 36,008 | 44,910 | ||||||||||||
| Noninterest Expense | ||||||||||||||||
| Salaries and employee benefits | 8,521 | 9,697 | 34,015 | 36,867 | ||||||||||||
| Occupancy expense, net | 1,184 | 1,144 | 5,112 | 5,142 | ||||||||||||
| Furniture and equipment expense | 1,261 | 1,502 | 5,601 | 6,196 | ||||||||||||
| FDIC insurance | 970 | 1,076 | 4,854 | 4,879 | ||||||||||||
| General bank insurance | 824 | 148 | 3,320 | 586 | ||||||||||||
| Amortization of core deposit and other intangible asset | 136 | 282 | 847 | 1,129 | ||||||||||||
| Advertising expense | 375 | 413 | 1,106 | 1,461 | ||||||||||||
| Debit card interchange expense | 333 | 349 | 1,424 | 1,345 | ||||||||||||
| Legal fees | 1,211 | 1,047 | 4,118 | 3,236 | ||||||||||||
| Other real estate expense | 7,738 | 7,774 | 24,356 | 26,401 | ||||||||||||
| Other expense | 3,240 | 3,421 | 12,816 | 13,394 | ||||||||||||
| Total noninterest expense | 25,793 | 26,853 | 97,569 | 100,636 | ||||||||||||
| Loss before income taxes | (3,001 | ) | (11,597 | ) | (6,498 | ) | (66,781 | ) | ||||||||
| Provision for income taxes | - | 65,027 | - | 41,868 | ||||||||||||
| Net loss | $ | (3,001 | ) | $ | (76,624 | ) | $ | (6,498 | ) | $ | (108,649 | ) | ||||
| Preferred stock dividends and accretion | 1,206 | 1,144 | 4,730 | 4,538 | ||||||||||||
| Net loss available to common stockholders | $ | (4,207 | ) | $ | (77,768 | ) | $ | (11,228 | ) | $ | (113,187 | ) | ||||
| Basic loss per share | $ | (0.30 | ) | $ | (5.48 | ) | $ | (0.79 | ) | $ | (8.03 | ) | ||||
| Diluted loss per share | (0.30 | ) | (5.48 | ) | (0.79 | ) | (8.03 | ) | ||||||||
| Dividends declared per share | - | - | - | 0.02 | ||||||||||||
| ANALYSIS OF AVERAGE BALANCES, | ||||||||||||||||||||
| TAX EQUIVALENT INTEREST AND RATES | ||||||||||||||||||||
| Three Months ended December 31, 2011, and 2010 | ||||||||||||||||||||
| (Dollar amounts in thousands - unaudited) | ||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| Average | Average | |||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||
| Assets | ||||||||||||||||||||
| Interest bearing deposits | $ | 54,881 | $ | 33 | 0.24 | % | $ | 80,913 | $ | 54 | 0.26 | % | ||||||||
| Federal funds sold | - | - | - | 1,627 | 1 | 0.24 | ||||||||||||||
| Securities: | ||||||||||||||||||||
| Taxable | 243,264 | 1,298 | 2.13 | 140,434 | 1,052 | 3.00 | ||||||||||||||
| Non-taxable (tax equivalent) | 12,793 | 159 | 4.97 | 16,587 | 232 | 5.59 | ||||||||||||||
| Total securities | 256,057 | 1,457 | 2.28 | 157,021 | 1,284 | 3.27 | ||||||||||||||
| Dividends from FRB and FHLB stock | 14,050 | 74 | 2.11 | 13,690 | 67 | 1.96 | ||||||||||||||
| Loans and loans held-for-sale 1 | 1,416,400 | 18,489 | 5.11 | 1,785,228 | 23,138 | 5.07 | ||||||||||||||
| Total interest earning assets | 1,741,388 | 20,053 | 4.51 | 2,038,479 | 24,544 | 4.72 | ||||||||||||||
| Cash and due from banks | 7,757 | - | - | 39,480 | - | - | ||||||||||||||
| Allowance for loan losses | (58,404 | ) | - | - | (75,847 | ) | - | - | ||||||||||||
| Other noninterest bearing assets | 242,831 | - | - | 285,405 | - | - | ||||||||||||||
| Total assets | $ | 1,933,572 | $ | 2,287,517 | ||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||
| NOW accounts | $ | 262,522 | $ | 75 | 0.11 | % | $ | 379,966 | $ | 191 | 0.20 | % | ||||||||
| Money market accounts | 288,118 | 165 | 0.23 | 306,651 | 348 | 0.45 | ||||||||||||||
| Savings accounts | 193,640 | 64 | 0.13 | 178,763 | 124 | 0.28 | ||||||||||||||
| Time deposits | 632,850 | 3,258 | 2.04 | 799,148 | 4,326 | 2.15 | ||||||||||||||
| Interest bearing deposits | 1,377,130 | 3,562 | 1.03 | 1,664,528 | 4,989 | 1.19 | ||||||||||||||
| Securities sold under repurchase agreements | 2,093 | 1 | 0.19 | 3,709 | 1 | 0.11 | ||||||||||||||
| Other short-term borrowings | 2,275 | - | - | 3,406 | - | - | ||||||||||||||
| Junior subordinated debentures | 58,378 | 1,176 | 8.06 | 58,378 | 1,093 | 7.49 | ||||||||||||||
| Subordinated debt | 45,000 | 212 | 1.84 | 45,000 | 206 | 1.79 | ||||||||||||||
| Notes payable and other borrowings | 500 | 4 | 3.13 | 500 | 4 | 3.13 | ||||||||||||||
| Total interest bearing liabilities | 1,485,376 | 4,955 | 1.33 | 1,775,521 | 6,293 | 1.41 | ||||||||||||||
| Noninterest bearing deposits | 354,663 | - | - | 333,516 | - | - | ||||||||||||||
| Other liabilities | 16,045 | - | - | 20,549 | - | - | ||||||||||||||
| Stockholders' equity | 77,488 | - | - | 157,931 | - | - | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,933,572 | $ | 2,287,517 | ||||||||||||||||
| Net interest income (tax equivalent) | $ | 15,098 | $ | 18,251 | ||||||||||||||||
| Net interest income (tax equivalent) | ||||||||||||||||||||
| to total earning assets | 3.44 | % | 3.55 | % | ||||||||||||||||
| Interest bearing liabilities to earning assets | 85.30 | % | 87.10 | % | ||||||||||||||||
1. Interest income from loans is shown on a tax equivalent basis as discussed in the table on page 20 and includes fees of $516,000 and $600,000 for the fourth quarter of 2011 and 2010, respectively. Nonaccrual loans are included in the above stated average balances.
Note: Tax equivalent basis is calculated using a marginal tax rate of 35%.
| ANALYSIS OF AVERAGE BALANCES, | ||||||||||||||||||||
| TAX EQUIVALENT INTEREST AND RATES | ||||||||||||||||||||
| Twelve Months ended December 31, 2011, and 2010 | ||||||||||||||||||||
| (Dollar amounts in thousands - unaudited) | ||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| Average | Average | |||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||
| Assets | ||||||||||||||||||||
| Interest bearing deposits | $ | 92,830 | $ | 230 | 0.24 | % | $ | 64,894 | $ | 156 | 0.24 | % | ||||||||
| Federal funds sold | 533 | 1 | 0.19 | 2,009 | 3 | 0.15 | ||||||||||||||
| Securities: | ||||||||||||||||||||
| Taxable | 161,986 | 3,989 | 2.46 | 154,485 | 4,766 | 3.09 | ||||||||||||||
| Non-taxable (tax equivalent) | 13,220 | 749 | 5.67 | 45,435 | 2,761 | 6.08 | ||||||||||||||
| Total securities | 175,206 | 4,738 | 2.70 | 199,920 | 7,527 | 3.77 | ||||||||||||||
| Dividends from FRB and FHLB stock | 13,963 | 290 | 2.08 | 13,467 | 251 | 1.86 | ||||||||||||||
| Loans and loans held-for-sale 1 | 1,535,054 | 80,513 | 5.17 | 1,909,064 | 99,791 | 5.16 | ||||||||||||||
| Total interest earning assets | 1,817,586 | 85,772 | 4.66 | 2,189,354 | 107,728 | 4.86 | ||||||||||||||
| Cash and due from banks | 27,402 | - | - | 37,670 | - | - | ||||||||||||||
| Allowance for loan losses | (69,471 | ) | - | - | (74,487 | ) | - | - | ||||||||||||
| Other noninterest bearing assets | 239,947 | - | - | 273,819 | - | - | ||||||||||||||
| Total assets | $ | 2,015,464 | $ | 2,426,356 | ||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||
| NOW accounts | $ | 264,470 | $ | 422 | 0.16 | % | $ | 402,954 | $ | 1,125 | 0.28 | % | ||||||||
| Money market accounts | 295,212 | 835 | 0.28 | 356,627 | 2,243 | 0.63 | ||||||||||||||
| Savings accounts | 191,857 | 322 | 0.17 | 185,175 | 699 | 0.38 | ||||||||||||||
| Time deposits | 701,189 | 14,478 | 2.06 | 840,647 | 18,795 | 2.24 | ||||||||||||||
| Interest bearing deposits | 1,452,728 | 16,057 | 1.11 | 1,785,403 | 22,862 | 1.28 | ||||||||||||||
| Securities sold under repurchase agreements | 1,957 | 1 | 0.05 | 14,883 | 28 | 0.19 | ||||||||||||||
| Other short-term borrowings | 2,742 | - | - | 5,095 | 18 | 0.35 | ||||||||||||||
| Junior subordinated debentures | 58,378 | 4,577 | 7.84 | 58,378 | 4,309 | 7.38 | ||||||||||||||
| Subordinated debt | 45,000 | 822 | 1.80 | 45,000 | 838 | 1.84 | ||||||||||||||
| Notes payable and other borrowings | 500 | 16 | 3.16 | 500 | 13 | 2.56 | ||||||||||||||
| Total interest bearing liabilities | 1,561,305 | 21,473 | 1.37 | 1,909,259 | 28,068 | 1.47 | ||||||||||||||
| Noninterest bearing deposits | 354,196 | - | - | 322,480 | - | - | ||||||||||||||
| Other liabilities | 20,238 | - | - | 18,767 | - | - | ||||||||||||||
| Stockholders' equity | 79,725 | - | - | 175,850 | - | - | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,015,464 | $ | 2,426,356 | ||||||||||||||||
| Net interest income (tax equivalent) | $ | 64,299 | $ | 79,660 | ||||||||||||||||
| Net interest income (tax equivalent) | ||||||||||||||||||||
| to total earning assets | 3.54 | % | 3.64 | % | ||||||||||||||||
| Interest bearing liabilities to earning assets | 85.90 | % | 87.21 | % | ||||||||||||||||
1. Interest income from loans is shown on a tax equivalent basis as discussed in the table on page 20 and includes fees of $2.2 million and $2.5 million for the year ended December 31, 2011 and 2010, respectively. Nonaccrual loans are included in the above stated average balances.
Note: Tax equivalent basis is calculated using a marginal tax rate of 35%.
The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. (Dollar amounts in thousands- unaudited)
| Three Months Ended | Year to Date | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net Interest Margin | ||||||||||||||||
| Interest income (GAAP) | $ | 19,972 | $ | 24,449 | $ | 85,423 | $ | 106,681 | ||||||||
| Taxable equivalent adjustment: | ||||||||||||||||
| Loans | 26 | 14 | 87 | 81 | ||||||||||||
| Securities | 55 | 81 | 262 | 966 | ||||||||||||
| Interest income (TE) | 20,053 | 24,544 | 85,772 | 107,728 | ||||||||||||
| Interest expense (GAAP) | 4,955 | 6,293 | 21,473 | 28,068 | ||||||||||||
| Net interest income (TE) | $ | 15,098 | $ | 18,251 | $ | 64,299 | $ | 79,660 | ||||||||
| Net interest income (GAAP) | $ | 15,017 | $ | 18,156 | $ | 63,950 | $ | 78,613 | ||||||||
| Average interest earning assets | $ | 1,741,388 | $ | 2,038,479 | $ | 1,817,586 | $ | 2,189,354 | ||||||||
| Net interest margin (GAAP) | 3.42 | % | 3.53 | % | 3.52 | % | 3.59 | % | ||||||||
| Net interest margin (TE) | 3.44 | % | 3.55 | % | 3.54 | % | 3.64 | % | ||||||||
| Efficiency Ratio | ||||||||||||||||
| Noninterest expense | $ | 25,793 | $ | 26,853 | $ | 97,569 | $ | 100,636 | ||||||||
| Less amortization of core deposit and | ||||||||||||||||
| other intangible asset | 136 | 282 | 847 | 1,129 | ||||||||||||
| Less other real estate expense | 7,738 | 7,774 | 24,356 | 26,401 | ||||||||||||
| Adjusted noninterest expense | 17,919 | 18,797 | 72,366 | 73,106 | ||||||||||||
| Net interest income (GAAP) | 15,017 | 18,156 | 63,950 | 78,613 | ||||||||||||
| Taxable-equivalent adjustment: | ||||||||||||||||
| Loans | 26 | 14 | 87 | 81 | ||||||||||||
| Securities | 55 | 81 | 262 | 966 | ||||||||||||
| Net interest income (TE) | 15,098 | 18,251 | 64,299 | 79,660 | ||||||||||||
| Noninterest income | 9,162 | 11,100 | 36,008 | 44,910 | ||||||||||||
| Less death benefit related to | ||||||||||||||||
| bank-owned life insurance | - | 5 | - | 943 | ||||||||||||
| Less litigation settlement income | - | 11 | - | 2,656 | ||||||||||||
| Less securities gain , net | 43 | 353 | 631 | 2,727 | ||||||||||||
| Less gain (loss) on sale of OREO | 378 | (83 | ) | 1,311 | 614 | |||||||||||
| Adjusted noninterest income, plus | ||||||||||||||||
| net interest income (TE) | 23,839 | 29,065 | 98,365 | 117,630 | ||||||||||||
| Efficiency ratio | 75.17 | % | 64.67 | % | 73.57 | % | 62.15 | % | ||||||||
| (unaudited) | ||||||||
| As of December 31, | ||||||||
| 2011 | 2010 | |||||||
| (dollars in thousands) | ||||||||
| Tier 1 capital | ||||||||
| Total stockholders' equity | $ | 74,002 | $ | 83,958 | ||||
| Tier 1 adjustments: | ||||||||
| Trust preferred securities | 25,901 | 29,029 | ||||||
| Cumulative other comprehensive loss | 3,702 | 3,130 | ||||||
| Disallowed intangible assets | (4,678 | ) | (5,525 | ) | ||||
| Disallowed deferred tax assets | (2,592 | ) | (2,064 | ) | ||||
| Other | (349 | ) | (390 | ) | ||||
| Tier 1 capital | $ | 95,986 | $ | 108,138 | ||||
| Total capital | ||||||||
| Tier 1 capital | $ | 95,986 | $ | 108,138 | ||||
| Tier 2 additions: | ||||||||
| Allowable portion of allowance for loan losses | 19,736 | 22,875 | ||||||
Additional trust preferred securities disallowed for tier 1 capital | 30,724 | 27,596 | ||||||
| Subordinated debt | 45,000 | 45,000 | ||||||
| Other Tier 2 capital components | (7 | ) | (7 | ) | ||||
| Total capital | $ | 191,439 | $ | 203,602 | ||||
| Tangible common equity | ||||||||
| Total stockholders' equity | $ | 74,002 | $ | 83,958 | ||||
| Less: Preferred equity | 70,863 | 69,921 | ||||||
| Intangible assets | 4,678 | 5,525 | ||||||
| Tangible common equity | $ | (1,539 | ) | $ | 8,512 | |||
| Tier 1 common equity | ||||||||
| Tangible common equity | $ | (1,539 | ) | $ | 8,512 | |||
| Tier 1 adjustments: | ||||||||
| Cumulative other comprehensive loss | 3,702 | 3,130 | ||||||
| Other | (2,941 | ) | (2,454 | ) | ||||
| Tier 1 common equity | $ | (778 | ) | $ | 9,188 | |||
| Tangible assets | ||||||||
| Total assets | $ | 1,941,418 | $ | 2,123,921 | ||||
| Less: | ||||||||
| Intangible assets | 4,678 | 5,525 | ||||||
| Tangible assets | $ | 1,936,740 | $ | 2,118,396 | ||||
| Total risk-weighted assets | ||||||||
| On balance sheet | $ | 1,511,815 | $ | 1,723,519 | ||||
| Off balance sheet | 34,824 | 53,051 | ||||||
| Total risk-weighted assets | $ | 1,546,639 | $ | 1,776,570 | ||||
| Average assets | ||||||||
| Total average assets for leverage | $ | 1,925,953 | $ | 2,279,538 | ||||
Old Second Bancorp, Inc.
J. Douglas Cheatham
Chief Financial Officer
(630) 906-5484
Source: Old Second Bancorp, Inc.
| distribué par | Ce noodl a été diffusé par Old Second Bancorp Inc. et initialement mise en ligne sur le site http://www.o2bancorp.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-25 22:54:18 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
