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EX - 99.1 2 osbc - 20210421ex9912ac345.htm EX - 99.1 Old Second Bancorp , Inc. ( NASDAQ : OSBC ) Contact : Bradley S. Adams Chief Financial Officer ( 630 ) 906-5484 Exhibit 99.1 For Immediate Release April 21 , 2021 Old Second Reports First Quarter Net Income of $ 11.9 million , or $ 0.40 per Diluted Share , Increases Quarterly Dividend to $ 0.05 per Share AURORA , IL , April 21 , 2021 Old Second Bancorp , Inc. ( the “ Company , ” “ we , ” “ us , ” and " our " ) ( NASDAQ : OSBC ) , the parent company of Old Second National Bank ( the “ Bank ” ) , today announced financial results for the first quarter of 2021. Our net income was $ 11.9 million , or $ 0.40 per diluted share , for the first quarter of 2021 , compared to net income of $ 8.0 million , or $ 0.27 per diluted share , for the fourth quarter of 2020 , and net income of $ 275,000 , or $ 0.01 per diluted share , for the first quarter of 2020. Net income for the first quarter of 2021 reflects a reversal of provision for credit losses of $ 3.0 million pre - tax , compared to no provision expense recorded in the fourth quarter of 2020 , and an $ 8.0 million pre - tax provision recorded in the first quarter of 2020. Mortgage banking income totaled $ 5.7 million in the first quarter of 2021 , which reflected a $ 2.7 million increase from the fourth quarter of 2020 , and a $ 4.9 million increase from the first quarter of 2020 , primarily due to mark to market gains on mortgage servicing rights ( “ MSRs ” ) of $ 1.1 million in the first quarter of 2021 , compared to mark to market losses of $ 1.3 million and $ 2.1 million in the fourth quarter of 2020 and the first quarter of 2020 , respectively . On April 20 , 2021 , our board of directors approved a 400 % increase to the quarterly dividend , from $ 0.01 per common share to $ 0.05 per common share , to be paid to stockholders of record on April 30 , 2021 , payable May 10 , 2021 . • Operating Results First quarter 2021 net income was $ 11.9 million , reflecting an increase in earnings of $ 3.8 million from the fourth quarter of 2020 , and an increase of $ 11.6 million from the first quarter of 2020 . Net interest and dividend income was $ 23.5 million for the first quarter of 2021 , a decrease of $ 334,000 , or 1.4 % , from the fourth quarter of 2020 , but an increase of $ 885,000 , or 3.9 % , from first quarter of 2020 . Interest and dividend income for the first quarter of 2021 was $ 25.4 million , or $ 615,000 less than the fourth quarter of 2020 and $ 2.1 million less than the first quarter of 2020 , primarily due to a decrease in market interest rates over the past year . Interest and dividend income was favorably impacted by loan fees earned on forgiven Paycheck Protection Program ( “ PPP ” ) loans during the first quarter of 2021. We originated 746 PPP loans totaling $ 136.7 million in 2020 , and as of March 31 , 2021 , $ 46.3 million on 134 PPP loans originated during the first round of the PPP loan program remained outstanding . During the first quarter of 2021 , we originated $ 58.3 million , or 481 loans , under the second round of the PPP loan program . Net loan interest and fee income recorded in 2021 year to date on all PPP loans totaled $ 741,000 , and approximately $ 2.3 million of net PPP loan fees remain unearned as of March 31 , 2021 . • Interest expense for the first quarter of 2021 totaled $ 1.8 million , compared to $ 2.1 million for the fourth quarter of 2020 , and $ 4.8 million for the first quarter of 2020. The reduction in interest expense was primarily due to a decrease in market interest rates in the year over year period . In addition , in March 2020 we redeemed our 7.8 % cumulative trust preferred securities issued by Old Second Capital Trust I and related debentures , which totaled $ 32.6 million . Upon redemption , we recognized the remaining unamortized debt issuance costs of $ 635,000 , which increased first quarter 2020 interest expense .