<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For transition period from ____ to ____
Commission File Number 0 -10537
OLD SECOND BANCORP, INC.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
DELAWARE 36-3143493
- --------------------------------- ---------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification Number)
of incorporation or organization)
37 SOUTH RIVER STREET, AURORA, ILLINOIS 60507
---------------------------------------------------
(Address of principal executive offices) (Zip Code)
(630) 892-0202
---------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date: As of May 1, 2000,
the Registrant had outstanding 5,904,794 shares of common stock, $1.00 par value
per share.
<PAGE>
OLD SECOND BANCORP, INC.
Form 10-Q Quarterly Report
Table of Contents
PART I
<TABLE>
<CAPTION>
Page
Number
<S> <C>
Item 1. Financial Statements..............................................3
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.....................8
PART II
Item 1. Legal Proceedings................................................13
Item 2. Changes in Securities............................................13
Item 3. Defaults Upon Senior Securities..................................13
Item 4. Submission of Matters to a Vote of Security Holders..............13
Item 5. Other Information................................................13
Item 6. Exhibits and Reports on Form 8-K.................................13
Signatures...........................................................14
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
OLD SECOND BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
------------ -------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 33,409 $ 42,800
Interest bearing balances with banks 2,285 575
Federal funds sold 16,675 25,900
------------ -------------
Cash and cash equivalents 52,369 69,275
Securities available for sale 289,083 270,912
Loans held for sale 8,306 8,437
Loans 637,374 610,770
Allowance for loan losses 8,852 8,444
------------ -------------
Net loans 628,522 602,326
Premises and equipment, net 21,113 20,665
Other real estate owned -- 79
Mortgage servicing rights, net 189 7,658
Goodwill, net 2,894 3,004
Core deposit intangible assets, net 2,398 2,487
Accrued interest and other assets 15,684 13,665
------------ -------------
Total assets $ 1,020,558 $ 998,508
============ =============
LIABILITIES
Deposits:
Demand $ 124,996 $ 126,808
Savings 402,896 387,647
Time 354,074 333,881
------------ -------------
Total deposits 881,966 848,336
Securities sold under repurchase agreements 18,760 17,289
Other short-term borrowing 1,351 10,321
Notes payable 5,027 9,467
Accrued interest and other liabilities 10,067 9,334
------------ -------------
Total liabilities 917,171 894,747
STOCKHOLDERS' EQUITY
Preferred stock, no par value;
authorized 300,000 shares; none issued -- --
Common stock, no par value; authorized 10,000,000 shares;
issued 6,103,830 in 2000 and 6,102,362 in 1999 6,104 6,102
Surplus 9,799 9,773
Retained earnings 94,719 92,143
Unrealized net gain (loss) on securities available for sale (2,307) (1,977)
Treasury stock, at cost, 199,036 shares in 2000
and 81,500 shares in 1999 (4,928) (2,280)
------------ -------------
Total stockholders' equity 103,387 103,761
------------ -------------
Total liabilities and stockholders' equity $ 1,020,558 $ 998,508
============ =============
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
OLD SECOND BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, 2000 and 1999
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
2000 1999
---------- ----------
<S> <C> <C>
INTEREST INCOME
Loans, including fees $ 12,702 $ 11,472
Loans held for sale 166 559
Securities:
Taxable 3,502 3,389
Tax-exempt 665 644
Federal funds sold 326 471
Interest bearing deposits 8 7
---------- ----------
Total interest income 17,369 16,542
INTEREST EXPENSE
Savings deposits 2,733 2,169
Time deposits 4,552 4,596
Repurchase agreements 165 169
Other short-term borrowing 52 24
Notes payable 76 385
---------- ----------
Total interest expense 7,578 7,343
---------- ----------
Net interest income 9,791 9,199
Provision for loan losses 210 201
---------- ----------
Net interest income after provision for loan losses 9,581 8,998
NONINTEREST INCOME
Trust income 1,281 1,227
Service charges on deposits 826 749
Secondary mortgage fees 96 338
Mortgage servicing income 234 418
Gain on sale of loans 791 1,842
Securities gains, net -- --
Other income 1,271 394
---------- ----------
Total noninterest income 4,499 4,968
NONINTEREST EXPENSE
Salaries and employee benefits 5,092 5,253
Occupancy expense, net 639 603
Furniture and equipment expense 852 1,000
Amortization of goodwill 110 110
Amortization of core deposit intangible assets 89 89
Other expense 2,160 2,627
---------- ----------
Total noninterest expense 8,942 9,682
---------- ----------
Income before income taxes 5,138 4,284
Provision for income taxes 1,678 1,351
---------- ----------
Net income $ 3,460 $ 2,933
========== ==========
PER SHARE INFORMATION:
Ending number of shares 5,904,794 6,102,362
Average number of shares 5,968,019 6,102,362
Diluted average number of shares 5,976,128 6,114,567
Basic earnings per share $ 0.58 $ 0.48
Diluted earnings per share $ 0.58 $ 0.48
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
OLD SECOND BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2000 and 1999
(In thousands)
<TABLE>
<CAPTION>
2000 1999
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 3,460 $ 2,933
Adjustments to reconcile net income to net cash from operating activities:
Depreciation 430 551
Amortization of mortgage servicing rights 56 48
Provision for loan losses 210 201
Net change in mortgage loans held for sale 131 3,600
Net gains on sales of loans (791) (1,842)
Change in net income taxes payable (2,151) (251)
Change in accrued interest and other assets (2,019) (135)
Change in accrued interest and other liabilities 3,130 1,886
Premium amortization and discount accretion on securities 101 167
Amortization of goodwill 110 110
Amortization of core deposit intangible assets 89 89
Sale of mortgage servicing rights 765 --
--------- ---------
Net cash from operating activities 3,521 7,357
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of securities available for sale 15,007 31,014
Purchases of securities available for sale (33,834) (19,961)
Net principal disbursed or repaid on loans (26,406) (4,937)
Proceeds from sales of other real estate 79 103
Property and equipment expenditures (878) (768)
Proceeds from sale of mortgage servicing rights 7,439
--------- ---------
Net cash from investing activities (38,593) 5,451
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits 33,630 (10,634)
Net change in repurchase agreements 1,471 (17,884)
Net change in other short-term borrowing (8,970) (2,265)
Net change in notes payable (4,440) (9,167)
Proceeds from exercise of incentive stock options 28 --
Dividends paid (905) (763)
Purchase of treasury stock (2,648) --
--------- ---------
Net cash from financing activities 18,166 (40,713)
--------- ---------
Net change in cash and cash equivalents (16,906) (27,905)
Cash and cash equivalents at beginning of period 69,275 92,152
--------- ---------
Cash and cash equivalents at end of period $ 52,369 $ 64,247
========= =========
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid $ 1,347 $ 1,256
Interest paid 4,672 4,642
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE>
OLD SECOND BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies followed in the preparation of interim financial
statements are consistent with those used in the preparation of annual financial
information. The interim financial statements reflect all normal and recurring
adjustments, which are necessary, in the opinion of management, for a fair
statement of results for the interim periods presented. Results for the three
months ended March 31, 2000 are not necessarily indicative of the results that
may be expected for the year ended December 31, 2000.
NOTE 2 - SECURITIES
Securities available for sale are summarized as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
MARCH 31, 2000:
U.S. Treasury $ 9,532 $ -- $ 52 $ 9,480
U.S. Government agencies 188,198 107 3,641 184,664
States and political subdivisions 67,889 948 649 68,188
Mortgage backed securities 24,731 -- 545 24,186
Other securities 2,565 -- -- 2,565
--------- ---------- ---------- ---------
$292,915 $ 1,055 $ 4,887 $289,083
========= ========== ========== =========
DECEMBER 31, 1999:
U.S. Treasury $ 10,043 $ 3 $ 30 $ 10,016
U.S. Government agencies 169,271 105 3,190 166,186
States and political subdivisions 66,685 808 593 66,900
Mortgage backed securities 25,623 67 445 25,245
Other securities 2,565 -- -- 2,565
--------- ---------- ---------- ---------
$274,187 $ 983 $ 4,258 $270,912
========= ========== ========== =========
</TABLE>
NOTE 3 - LOANS
Major classifications of loans were as follows:
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
--------- ------------
<S> <C> <C>
Commercial and industrial $ 155,965 $ 151,771
Real estate - commercial 190,435 175,010
Real estate - construction 53,879 58,833
Real estate - residential 168,098 159,743
Installment 69,056 65,491
--------- ------------
637,433 610,848
Unearned discount (59) (78)
--------- ------------
$ 637,374 $ 610,770
========= ============
</TABLE>
6
<PAGE>
NOTE 4 - ALLOWANCE FOR LOAN LOSSES
Changes in the allowance for loan losses as of March 31, are summarized as
follows:
<TABLE>
<CAPTION>
2000 1999
------- -------
<S> <C> <C>
Balance, January 1 $ 8,444 $ 7,823
Provision for loan losses 210 201
Loans charged-off (121) (100)
Recoveries 319 155
------- -------
Balance, end of period $ 8,852 $ 8,079
======= =======
</TABLE>
NOTE 5 - NOTES PAYABLE
The Company has a $40 million line of credit available with Marshall & Ilsley
Bank, under which $5.0 million was outstanding as of March 31, 2000 and $9.5
million was outstanding as of December 31, 1999. The note bears interest at the
rate of 1% over the Federal Funds rate. This borrowing is for the purpose of
funding loans held for sale at the Maple Park Mortgage subsidiary and other
corporate purposes.
NOTE 6 - EARNINGS PER SHARE
Earnings per share for the three months ended March 31, were as follows (share
data not in thousands):
<TABLE>
<CAPTION>
2000 1999
---------- ----------
<S> <C> <C>
Basic Earnings Per Share:
Weighted-average common shares outstanding 5,968,019 6,102,362
Net income $ 3,460 $ 2,933
Basic earnings per share $ 0.58 $ 0.48
Diluted Earnings Per Share:
Weighted-average common shares outstanding 5,968,019 6,102,362
Dilutive effect of stock options 8,109 14,765
---------- ----------
Diluted average common shares outstanding 5,976,128 6,117,127
Net income $ 3,460 $ 2,933
Diluted earnings per share $ 0.58 $ 0.48
</TABLE>
NOTE 7 - COMPREHENSIVE INCOME
Comprehensive income for the three months ended March 31, was as follows:
<TABLE>
<CAPTION>
2000 1999
-------- --------
<S> <C> <C>
Net Income $ 3,460 $ 2,933
Other comprehensive loss, net of tax (330) (846)
------- -------
Comprehensive income $ 3,130 $ 2,087
======= =======
</TABLE>
7
<PAGE>
OLD SECOND BANCORP, INC. AND SUBSIDIARIES
MANAGEMENTS' DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Net income for the first quarter of 2000 was $3,460,000, or 58 cents diluted
earnings per share, compared to $2,933,000 or 48 cents per share in the first
quarter of 1999. This was an 18% increase in earnings, or 20.8% on a per share
basis. The increase in net income for the quarter was primarily a result of an
increase in net interest income. Noninterest income declined $469,000 and
noninterest expenses declined $740,000 from the first quarter of 1999 to the
first quarter of 2000. The first quarter return on equity increased from 11.91%
in the first quarter of 1999, to 12.82% in the same period of 2000.
Net interest income was $9.8 million and $9.2 million during the three months
ended March 31, 2000 and 1999, an increase of 6.5%. The Company's net interest
margin was 4.37% for the three months ended March 31, 2000, and 4.24% a year
earlier. The increase in the ratio has resulted from two primary factors. First,
the cost of funds as a percent of earning assets funded has declined slightly
from 3.30% to 3.26%. In some cases, time deposits that were opened when interest
rates were higher are re-pricing to lower rates. Second, the yield on earning
assets has increased from 7.53% to 7.63% over the same period of time. A
proportionately greater allocation to loans and an increase in interest rates
have contributed to the increase.
Noninterest income was $4,499,000 during the first quarter of 2000 and
$4,968,000 in the first quarter of 1999, a decline of $469,000, or 9.4%. This
decrease was primarily due to the increase in interest rates and the
corresponding decrease in residential mortgage originations. Gains on sales of
mortgage loans declined to $791,000 in the first quarter of 2000, from
$1,842,000 in the first quarter of 1999.
Unamortized mortgage servicing rights totaled approximately $7.7 million as of
December 31, 1999. During the first quarter of 2000, Maple Park Mortgages
entered into an agreement to sell the majority of the mortgage servicing rights.
A gain of $765,000 was recorded at the time of the sale and is included in other
income. A portion of the sale amount has been retained to compensate the buyer
for short-term prepayments. Maple Park Mortgage intends to sell mortgage loans
on a servicing-released basis instead of retaining originated servicing rights.
As a result of the sale of mortgage servicing rights, servicing income declined
from $1,842,000 in the first quarter of 1999 to $791,000 in the first quarter of
2000.
Trust income was $54,000 higher in the first quarter of 2000 than in the first
quarter of 1999. Other income, which includes the gain on sale of mortgage
servicing rights, was $877,000 higher in the first quarter of 2000 than a year
earlier. Excluding the gain, other income would have increased $122,000.
Noninterest expenses were $8,942,000 during the first quarter of 2000, a decline
of $740,000 from $9,682,000 in the first quarter of 1999. The decrease in
noninterest expenses is primarily the result of a decrease in expenses of Maple
Park Mortgage as this business has declined as a result of an increase in
interest rates. Salaries and benefits, which account for over half of
noninterest expenses, decreased $161,000, in part, due to lower expenses at
Maple Park Mortgage.
8
<PAGE>
FINANCIAL CONDITION
LOANS
Total loans were $637.4 million as of March 31, 2000, an increase of $26.6
million for the three month period, from $610.8 million as of December 31, 1999.
The largest increases in loan classifications were in commercial and residential
real estate loans, which increased $15.4 million and $8.4 million, respectively.
Commercial and industrial loans and installment loans increased $4.2 million and
$3.6 million, respectively. These changes reflect the continuing loan demand in
the markets in which the Company operates.
Asset quality has improved, with nonperforming loans of $1.04 million as of
March 31, 2000, down from $2.04 million a as of December 31, 1999. Nonperforming
loans include loans in nonaccrual status, renegotiated loans, and loans past due
ninety days or more and still accruing. The provision for loan losses was
$210,000 in the first quarter of 2000 and $201,000 in the first quarter of 1999.
One measure of the adequacy of the allowance for loan losses is the ratio of the
allowance to total loans. The allowance for loan losses as a percentage of total
loans was 1.39% as of March 31, 2000, compared to 1.38% as of December 31, 1999.
In management's judgment, an adequate allowance for possible future losses has
been established.
DEPOSITS AND BORROWING
Total deposits were $882.0 million as of March 31, 2000, an increase of $33.7
million from $848.3 million as of December 31, 1999. The acquisition of a direct
competitor in the market by an out-of state institution contributed to the
growth achieved in the first quarter. Savings deposits which includes money
market accounts, increased $15.3 million during the first quarter and time
deposits increased $20.2 million. Demand deposits declined from $126.8 million
to $125.0 million during this period.
Securities sold under repurchase agreements, which are typically of short-term
durations, increased from $17.3 million as of December 31, 1999, to $18.8
million as of March 31, 2000. Other short-term borrowing, which primarily
consists of treasury tax and loan notes, declined from $10.3 million to $1.4
million as of March 31, 2000 due to temporary balances carried as of year-end
1999. The Company also uses notes payable, primarily as a means of financing
loans held for sale at the Maple Park Mortgage subsidiary. Notes payable
declined from $9.5 million as of December 31, 1999, to $5.0 million as of March
31, 2000.
CAPITAL
In June 1999, the Company announced that the board of directors had authorized
the repurchase of up to 300,000 shares of the Company's common stock, or 4.9% of
the company's 6,102,362 shares outstanding. The purchase of approximately
117,500 shares in the first quarter of 2000, together with 81,500 shares
purchased during 1999, total approximately 199,000 shares repurchased. On April
19, 2000, the Company announced that the board of directors had authorized the
purchase of up to an additional 300,000 shares, bringing the total number of
shares authorized but not purchased to approximately 400,000.
9
<PAGE>
The Company and its three subsidiary banks (the "Banks") are subject to
regulatory capital requirements administered by federal banking agencies.
Capital adequacy guidelines provide for five classifications, the highest of
which is well capitalized. The Company and the Banks were categorized as well
capitalized as of March 31, 2000. The accompanying table shows the capital
ratios of the Company and Old Second National Bank as of March 31, 2000.
Capital levels and minimum required levels:
<TABLE>
<CAPTION>
Minimum Required Minimum Required
for Capital to be Well
Actual Adequacy Purposes Capitalized
--------------------- ------------------ -------------------
Amount Ratio Amount Ratio Amount Ratio
--------- -------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
MARCH 31, 2000:
Total capital to risk weighted assets
Consolidated $ 109,226 15.47% $56,484 8.00% $70,605 10.00%
Old Second 72,902 15.39 37,896 8.00 47,370 10.00
Tier 1 capital to risk weighted assets
Consolidated 100,398 14.22 28,241 4.00 42,362 6.00
Old Second 67,076 14.16 18,948 4.00 28,422 6.00
Tier 1 capital to average assets
Consolidated 100,398 10.16 39,527 4.00 49,408 5.00
Old Second 67,076 9.65 27,804 4.00 34,754 5.00
DECEMBER 31, 1999:
Total capital to risk weighted assets
Consolidated $ 108,691 15.84% $54,894 8.00% $ 68,618 10.00%
Old Second 66,061 14.81 35,685 8.00 44,606 10.00
Tier 1 capital to risk weighted assets
Consolidated 100,247 14.61 27,446 4.00 41,169 6.00
Old Second 60,509 13.57 17,836 4.00 26,754 6.00
Tier 1 capital to average assets
Consolidated 100,247 10.17 39,429 4.00 49,286 5.00
Old Second 60,509 9.17 26,394 4.00 32,993 5.00
</TABLE>
LIQUIDITY
Liquidity measures the ability of the Company to meet maturing obligations and
its existing commitments, to withstand fluctuations in deposit levels, to fund
its operations, and to provide for customers' credit needs. The liquidity of the
Company principally depends on cash flows from operating activities, investment
in and maturity of assets, changes in balances of deposits and borrowings, and
its ability to borrow funds in the money or capital markets.
Net cash flows from operating activities were $3.5 million in the first three
months of 2000 and $7.4 million in the first three months of 1999. Interest
received net of interest paid was the principal source of operating cash inflows
in both periods reported. In addition, the sale of mortgage servicing rights
resulted in a gain $765,000. Management of investing and financing activities,
and market conditions, determine the level and the stability of net interest
cash flows. Management's policy is to mitigate the impact of changes in market
interest rates to the extent possible, so that balance sheet growth is the
principal determinant of growth in net interest cash flows.
Net cash outflows from investing activities were $38.6 million in the three
months ended March 31, 2000, compared to a net inflow of $5.5 million a year
earlier. In the first three months of 2000, net principal disbursed on loans
accounted for net outflows of $26.4 million, and securities
10
<PAGE>
transactions aggregated a net outflow of $18.8 million. In the first three
months of 1999, net principal disbursed on loans accounted for a net outflow of
$4.9 million, and securities transactions resulted in net inflows of $11.1
million. The sale of mortgage servicing rights resulted in net cash inflows of
$7.4 million.
Cash inflows from financing activities included an increase in deposits of $33.6
million in the first three months of 2000. This compares with a net outflow
associated with deposits of $10.6 million during the first quarter of 1999.
Short-term borrowing resulted in net cash outflows of $9.0 million in the three
months of 2000, and outflows of $2.3 million in the three months of 1999. Net
cash outflows associated with notes payable totaled $14.4 million in the first
three months of 2000 compared to outflows of $9.2 million in the first three
months of 1999.
The impact of movements in general market interest rates on a financial
institution's financial condition, including capital adequacy, earnings, and
liquidity, is known as interest rate risk. Interest rate risk is the Company's
primary market risk. As a financial institution, accepting and managing this
risk is an inherent aspect of the Company's business. However, safe and sound
management of interest rate risk requires that it be maintained at prudent
levels.
The Company analyzes interest rate risk by examining the extent to which assets
and liabilities are interest rate sensitive. The interest sensitivity gap is
defined as the difference between the amount of interest earning assets maturing
or repricing within a specific time period and the amount of interest-bearing
liabilities maturing or repricing within that time period. A gap is considered
positive when the amount of interest sensitive assets exceeds the amount of
interest sensitive liabilities. A gap is considered negative when the amount of
interest sensitive liabilities exceeds the amount of interest sensitive assets.
During a period of rising interest rates, a negative gap would tend to result in
a decrease in net interest income while a positive gap would tend to positively
affect net interest income. The Company's policy is to manage the balance sheet
such that fluctuations in the net interest margin are minimized regardless of
the level of interest rates.
The accompanying table does not necessarily indicate the future impact of
general interest rate movements on the Company's net interest income because the
repricing of certain assets and liabilities is discretionary and is subject to
competitive and other pressures. As a result, assets and liabilities indicated
as repricing within the same period may in fact reprice at different times and
at different rate levels. Assets and liabilities are reported in the earliest
time frame in which maturity or repricing may occur. Although securities
available for sale are reported in the earliest time frame in which maturity or
repricing may occur, these securities may be sold in response to changes in
interest rates or liquidity needs.
11
<PAGE>
EXPECTED MATURITY OF INTEREST-EARNING ASSETS AND INTEREST-BEARING LIABILITIES
<TABLE>
<CAPTION>
Expected Maturity Dates
------------------------------------------------------------------------------------
1 Year 2 Years 3 Years 4 Years 5 Years Thereafter Total
<S> <C> <C> <C> <C> <C> <C> <C>
INTEREST-EARNING ASSETS
Deposit with banks $ 2,285 $ -- $ -- $ -- $ -- $ -- $ 2,285
Average interest rate 5.00% 5.00%
Federal funds sold $ 16,675 $ -- $ -- $ -- $ -- $ -- $ 16,675
Average interest rate 5.89% 5.89%
Securities $ 37,487 $ 33,361 $ 54,613 $ 56,113 $ 36,770 $ 70,740 $ 289,084
Average interest rate 6.12% 6.21% 6.00% 5.91% 6.27% 5.69% 5.98%
Fixed rate loans $ 120,735 $ 70,131 $ 63,294 $ 63,092 $ 29,938 $ 46,135 $ 393,325
Average interest rate 8.33% 7.98% 8.55% 7.46% 7.06% 7.98% 7.86%
Adjustable rate loans $ 158,751 $ 20,388 $ 28,894 $ 21,150 $ 6,407 $ 16,765 $ 252,355
Average interest rate 8.99% 7.70% 7.91% 7.25% 7.86% 7.82% 8.51%
------------ ------------- ------------- -------------- ------------- -------------- -------------
Total $ 335,933 $ 123,880 $ 146,801 $140,355 $ 73,115 $ 133,640 $ 953,724
============ ============= ============= ============== ============= ============== =============
INTEREST-BEARING LIABILITIES
Interest-bearing deposits $ 464,352 $ 73,041 $ 8,773 $ 15,519 $ 2,979 $ 192,306 $ 756,970
Average interest rate 4.69% 5.58% 5.56% 5.21% 5.78% 1.86% 4.10%
Short-term borrowing $ 20,111 $ -- $ -- $ -- $ -- $ -- $ 20,111
Average interest rate 4.15% 8.36%
Notes payable $ 5,027 $ -- $ -- $ -- $ -- $ -- $ 5,027
Average interest rate 9.80% 9.80%
------------ ------------- ------------- -------------- ------------- -------------- -------------
Total $ 489,490 $ 73,041 $ 8,773 $ 15,519 $ 2,979 $ 192,306 $ 782,108
============ ============= ============= ============== ============= ============== =============
Period gap $(153,557) $ 50,839 $ 138,028 $124,836 $ 70,136 $(58,666) $ 171,616
Cumulative gap (153,557) (102,718) 35,310 160,146 230,282 171,616
</TABLE>
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are no material pending legal proceedings to which the Company or
its subsidiaries are a party other than ordinary routine litigation
incidental to their respective businesses.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits
27. Financial Data Schedule
Reports on Form 8-K
None.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
OLD SECOND BANCORP, INC.
(Registrant)
/s/ William B. Skoglund
---------------------------------------------
William B. Skoglund
President and Chief Executive Officer
/s/ J. Douglas Cheatham
---------------------------------------------
J. Douglas Cheatham
Vice President and Chief Financial Officer
Date: May 11, 2000
14
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