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 third quarter of 2012. The Company reported a net income of $120,000, compared to a net loss of $1.4 million in the third quarter of 2011. The Company’s net loss available to common shareholders of $1.1 million, or $0.08 per diluted share, for the quarter compared to a net loss available to common shareholders of $2.6 million, or $0.18 per diluted share, in the third quarter of 2011.
Old Second also announced that its principle banking subsidiary, Old Second National Bank, recorded net income of $1.8 million in third quarter and a net income of $3.4 million for the first nine months of 2012.
The Company did not record a provision for loan losses for the third quarter of 2012 compared to a $3.0 million provision in the third quarter of 2011. The allowance for loan losses was 38.05% of nonperforming loans as of September 30, 2012 an increase from 35.79% as of June 30, 2012 and a decline from 42.95% a year earlier.
“Our third quarter results reflect continued payback on our diligent work to improve asset quality as we progress toward overall sustainable profitability,” said Bill Skoglund, Chairman and CEO. “As total loans decreased 2.4% in third quarter, we successfully worked with problem loan situations so that loans classified as problem loans (nonaccrual and troubled debt restructurings) dropped by 25% since December 31, 2011 (down 7.4% since June 30, 2012).”
“We continue to also be greatly encouraged as our nonperforming assets decreased to levels not seen at any quarter end since June 2009. Total nonperforming assets decreased 16.5% to $193.9 million at September 30, 2012 from $232.2 million at December 31, 2011 reflecting great work by our people, commitment to our organization from loyal customers, improved but still difficult market conditions for distressed asset dispositions and prudent property valuation writedowns in a better but still stressed overall market. We will continue to expand existing strategies and pursue new workout or remediation opportunities to reduce problem credit exposures.”