Old Second Bancorp (NASDAQ:OSBC) Announces Quarterly Earnings Results

Key Points

• Old Second Bancorp missed quarterly earnings expectations: The company reported adjusted earnings of $0.55 per share versus the $0.58 consensus estimate, while revenue of $97.12 million fell short of the $98.22 million forecast.
• The quarterly dividend increased: Old Second Bancorp raised its dividend from $0.07 to $0.08 per share, equivalent to $0.32 annually and a 1.3% yield.
• Analyst sentiment remains generally positive: The stock carries a “Moderate Buy” consensus rating with a $26.20 average price target, although insiders sold 149,000 shares worth approximately $3.81 million during the quarter.

Old Second Bancorp (NASDAQ:OSBC - Get Free Report) posted its earnings results on Wednesday. The financial services provider reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.58 by ($0.03), FiscalAI reports. The firm had revenue of $97.12 million during the quarter, compared to analyst estimates of $98.22 million. Old Second Bancorp had a return on equity of 12.79% and a net margin of 20.22%.

Old Second Bancorp Stock Performance

NASDAQ OSBC traded down $0.23 on Wednesday, hitting $24.87. 432,790 shares of the stock were exchanged, compared to its average volume of 421,044. The company has a market capitalization of $1.27 billion, a PE ratio of 14.29 and a beta of 0.77. The company has a debt-to-equity ratio of 0.08, a current ratio of 0.91 and a quick ratio of 0.91. The business's fifty day moving average is $25.14 and its 200 day moving average is $23.31. Old Second Bancorp has a 52 week low of $17.11 and a 52 week high of $26.06.

Old Second Bancorp Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 9th. Stockholders of record on Friday, October 30th will be paid a dividend of $0.08 per share. The ex-dividend date is Friday, October 30th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.3%. This is an increase from Old Second Bancorp's previous quarterly dividend of $0.07. Old Second Bancorp's dividend payout ratio (DPR) is currently 16.09%.

Insider Activity

In other news, insider Darin Campbell sold 24,000 shares of the business's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $25.53, for a total transaction of $612,720.00. Following the transaction, the insider directly owned 250,589 shares in the company, valued at $6,397,537.17. The trade was a 8.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO James Eccher sold 55,687 shares of the business's stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $25.46, for a total transaction of $1,417,791.02. Following the transaction, the chief executive officer owned 322,712 shares in the company, valued at $8,216,247.52. This represents a 14.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 149,000 shares of company stock valued at $3,809,117 in the last quarter. Company insiders own 3.60% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. DA Davidson boosted their target price on Old Second Bancorp from $24.00 to $25.00 and gave the company a "neutral" rating in a research note on Friday, July 24th. Zacks Research cut Old Second Bancorp from a "strong-buy" rating to a "hold" rating in a report on Monday, August 31st. Raymond James Financial upgraded Old Second Bancorp from an "outperform" rating to a "strong-buy" rating and lifted their price objective for the company from $27.00 to $30.00 in a report on Tuesday, October 6th. Piper Sandler reiterated an "overweight" rating and issued a $30.00 price objective (up from $26.00) on shares of Old Second Bancorp in a research report on Monday, July 27th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Old Second Bancorp in a research note on Wednesday, August 26th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $26.20.

Old Second Bancorp Company Profile

Old Second Bancorp, Inc is a bank holding company headquartered in Aurora, Illinois. Through its principal subsidiary, Old Second National Bank, the company provides banking and financial services to individuals, families, businesses and governmental entities.

Its offerings include checking and savings accounts, certificates of deposit, residential and commercial real estate lending, commercial and industrial loans, consumer loans, treasury management and cash-management services. The bank also provides wealth management, trust and investment-related services through its financial services operations.

Founded in 1871, Old Second has a long history of serving communities in northern Illinois, including the Fox Valley and Chicago metropolitan area.

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