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Sep 30, 2022
Old Second Q3 2022 Earnings Report
Reported net income of $19.5 million, or $0.43 per diluted share.
Key Takeaways
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.
Old Second
Old Second
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.