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.”