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 first quarter of 2011. The Company recorded a net loss of $3.1 million compared to a net loss of $8.6 million in the first quarter of 2010. The Company’s pretax net loss of $3.1 million for the first quarter of 2011 compared to $14.7 million for the first quarter of 2010. The Company’s net loss available to common shareholders of $4.3 million, or $0.30 per share, for the first quarter of 2011, compared to a net loss available to common shareholders of $9.7 million, or $0.69 per share, in the first quarter of 2010.
The Company’s $4.0 million provision for loan losses for the first quarter of 2011 compared favorably to the $19.2 million provision in the first quarter of 2010 and to the $14.0 million provision in the fourth quarter of 2010. The first quarter 2011 provision increased the allowance coverage to 4.57% of loans, up from 3.41% at March 31, 2010 and 4.51% at December 31, 2010.
In announcing these results, the Company’s Chairman and CEO, William Skoglund said, “We are very encouraged by our continued progress in addressing asset quality during the first quarter. Nonperforming loans were down $35.9 million, or 15.7%, compared to year-end 2010. While we are not yet performing at desired levels, we believe this is a significant step in the right direction.”
“Since this credit cycle began, we have tried to be as transparent as possible with the information at our disposal. We value our relationships with all of our stakeholders: customers, employees, investors and regulators. Our employees have been working diligently to move us toward a recovery and we believe that the results are beginning to show.”