Old Second Bancorp, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.
For the three months ended September 30, 2024, the company recorded net income of $22.951 million, a decrease from $24.335 million in the same period of 2023. This resulted in diluted earnings per share of $0.50, down from $0.54 year-over-year. For the nine months, net income was $66.154 million, compared to $73.504 million in 2023. The decline in net income was attributed to increased interest expenses, which rose to $15.494 million in Q3 2024 from $11.199 million in Q3 2023, impacting net interest income, which fell to $60.578 million from $63.030 million.
Total interest income for the three months ended September 30, 2024, was $76.072 million, up from $74.229 million in 2023. However, total noninterest expenses increased to $39.308 million from $37.423 million, driven by higher salaries and operational costs. The efficiency ratio for Q3 2024 was reported at 53.38%, compared to 50.08% in Q3 2023, indicating a decline in operational efficiency.
The company’s total assets as of September 30, 2024, were $5.672 billion, a decrease from $5.722 billion at the end of 2023. Total loans decreased by $51.9 million from December 31, 2023, primarily due to paydowns in commercial real estate and other segments. Total deposits also fell to $4.465 billion, down from $4.571 billion at year-end 2023, with noninterest-bearing deposits decreasing by 9.0%.
Strategically, Old Second Bancorp announced the acquisition of five branches from First Merchants Bank, which will add approximately $304 million in deposits and $12 million in loans. This acquisition is expected to close in late Q4 2024. The company also reported a significant increase in cash and cash equivalents, which rose to $115.8 million from $100.1 million at the end of 2023.
The allowance for credit losses on loans was $44.4 million as of September 30, 2024, reflecting a slight increase from $44.3 million at year-end 2023. The company noted a decrease in nonperforming loans, which fell to $52.3 million from $68.8 million at the end of 2023, indicating improved credit quality.
Overall, Old Second Bancorp's financial results for the third quarter of 2024 reflect challenges in profitability and revenue growth amid rising interest expenses and a decrease in total loans and deposits, while strategic acquisitions and improved credit quality metrics provide a positive outlook for future performance.
About OLD SECOND BANCORP INC
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