Old Second Bancorporation Inc. [OSBC] moved down -0.36: Why It’s Important

Old Second Bancorporation Inc. [NASDAQ: OSBC] closed the trading session at $13.65. The company report on January 24, 2024 at 4:30 PM that Old Second Bancorp, Inc. Reports Fourth Quarter 2023 Net Income of $18.2 Million, or $0.40 per Diluted Share.

Old Second Bancorp, Inc. (the “Company,” “Old Second,” “we,” “us,” and “our”) (NASDAQ:OSBC), the parent company of Old Second National Bank (the “Bank”), today announced financial results for the fourth quarter of 2023. Our net income was $18.2 million, or $0.40 per diluted share, for the fourth quarter of 2023, compared to net income of $24.3 million, or $0.54 per diluted share, for the third quarter of 2023, and net income of $23.6 million, or $0.52 per diluted share, for the fourth quarter of 2022. Adjusted net income, a non-GAAP financial measure that excludes nonrecurring litigation related expenses and Visa portfolio liquidation and deconversion costs, as applicable, was $19.1 million, or $0.42 per diluted share, for the fourth quarter of 2023, compared to $24.8 million, or $0.55 per diluted share, for the third quarter of 2023. See the discussion entitled “Non-GAAP Presentations” below and the tables beginning on page 17 that provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. Noteworthy items impacting fourth quarter 2023 results include a $1.2 million litigation reserve related to prior years’ overdraft fee compliance and $1.3 million in expense related to the fair value of mortgage servicing rights.

3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free

Net income decreased $6.1 million in the fourth quarter of 2023 compared to the third quarter of 2023. The decrease was primarily due to the increase of $5.0 million in provision for credit losses, a $1.3 million increase in interest expense, and a decrease in noninterest income of $1.1 million in the fourth quarter of 2023, which were partially offset by a $397,000 decrease in noninterest expense and a $1.4 million decrease in provision for income taxes. Net income decreased $5.4 million in the fourth quarter of 2023 compared to the fourth quarter of 2022, primarily due to an increase in provision for credit losses of $6.5 million and a decrease in net interest income of $2.9 million year over year due to rising market interest rates, which also resulted in an $8.8 million increase in interest expense. These decreases to net income in the fourth quarter of 2023 were partially offset by a decrease in noninterest expenses of $2.7 million. The fourth quarter of 2023 was minimally impacted by a pre-tax net loss on the call of securities of $2,000, compared to more significant pre-tax net losses on the sale of securities of $924,000 and $910,000 in the third quarter of 2023 and the fourth quarter of 2022, respectively.

The stocks have a year to date performance of -11.59 percent and weekly performance of 1.71 percent. The stock has been moved at -8.94 percent over the last six months. The stock has performed -8.33 percent around the most recent 30 days and changed -7.39 percent over the most recent 3-months.

If compared to the average trading volume of 212.38K shares, OSBC reached to a volume of 167336 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Old Second Bancorporation Inc. [OSBC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for OSBC shares is $17.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on OSBC stock is a recommendation set at 1.17. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Stephens have made an estimate for Old Second Bancorporation Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on April 05, 2023.

The Average True Range (ATR) for Old Second Bancorporation Inc. is set at 0.43, with the Price to Sales ratio for OSBC stock in the period of the last 12 months amounting to 1.87. The Price to Book ratio for the last quarter was 1.06. Price to Free Cash Flow for OSBC in the course of the last twelve months was 5.31.

OSBC stock trade performance evaluation

Old Second Bancorporation Inc. [OSBC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.71. With this latest performance, OSBC shares dropped by -8.33% in over the last four-week period, additionally sinking by -8.94% over the last 6 months – not to mention a drop of -19.23% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for OSBC stock in for the last two-week period is set at 42.43, with the RSI for the last a single of trading hit 45.89, and the three-weeks RSI is set at 42.18 for Old Second Bancorporation Inc. [OSBC]. The present Moving Average for the last 50 days of trading for this stock 14.84, while it was recorded at 13.54 for the last single week of trading, and 14.11 for the last 200 days.

Old Second Bancorporation Inc. [OSBC]: An insightful look at the core fundamentals

Old Second Bancorporation Inc.’s liquidity data is similarly interesting compelling, with a Current Ratio set at 0.05.

Earnings per share (EPS) analysis for Old Second Bancorporation Inc. [OSBC] stock

With the latest financial reports released by the company, Old Second Bancorporation Inc. posted 0.52/share EPS, while the average EPS was predicted by analysts to be reported at 0.54/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -3.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for OSBC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Old Second Bancorporation Inc. go to 7.00%.

Old Second Bancorporation Inc. [OSBC]: Institutional Ownership

The top three institutional holders of OSBC stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in OSBC stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in OSBC stock with ownership which is approximately 5.8325%.