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Mar 31, 2022
Old Second Q1 2022 Earnings Report
Old Second reported net income for Q1 2022, driven by net interest and dividend income and gain on mortgage servicing rights.
Key Takeaways
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.
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.
Positive Outlook
- 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
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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