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Mar 31, 2021
Old Second Q1 2021 Earnings Report
Reported first quarter net income of $11.9 million and increased quarterly dividend to $0.05 per share.
Key Takeaways
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.
Forward Guidance
Old Second Bancorp believes it remains conservatively positioned to meet the challenges of the coming year.
Positive Outlook
- Solid financial results
- Strong operating leverage
- Grew deposits
- Continued to build capital position
- Credit trends continued to improve and loan loss reserves reduced
Challenges Ahead
- 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”
Historical Earnings Impact
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Avg. Return Before/After Earnings
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