Old Second Bancorp, Inc. (NASDAQ:OSBC) Q2 2023 Results Conference Call July 20, 2023 11:00 AM ET
Company Participants
Jim Eccher - Chairman, President and CEO
Brad Adams - CFO
Gary Collins - Vice Chairman
Conference Call Participants
Terry McEvoy - Stephens
Nathan Race - Piper Sandler
Chris McGratty - KBW
Jeff Rulis - D.A. Davidson
David Long - Raymond James
Brian Martin - Janney Montgomery
Operator
Good morning, everyone, and thank you for joining us today for Old Second Bancorp, Inc.’s Second Quarter 2023 Earnings Call.
On the call today is Jim Eccher, the Company’s Chairman, President and CEO; Brad Adams, the Company’s CFO; and Gary Collins, the Vice Chairman of our Board.
I will start with a reminder that Old Second’s comments today will contain forward-looking statements about the Company’s business, strategies and prospects, which are based on management’s existing expectations in the current economic environment. These statements are not a guarantee of future performance, and results may differ materially from those projected.
Management would ask you to refer to the Company’s SEC filings for a full discussion of the Company’s risk factors. The Company does not undertake any duty to update such forward-looking statements.
On today’s call, we will also be discussing certain non-GAAP financial measures. These non-GAAP measures are described and reconciled to their GAAP counterparts in our earnings release, which is available on our website at oldsecond.com on the homepage and under the Investor Relations tab.
Now I will turn it over to Mr. Jim Eccher.
Jim Eccher
Good morning, and thank you for joining us. As customary, I have several prepared opening remarks and will give my overview of the quarter and then turn it over to Brad for additional details. I will then conclude with certain summary comments and thoughts about the future before we open it up for questions.
Net income was $25.6 million or $0.56 per diluted share in the second quarter 2023. Adjusted net income was also $25.6 million, $0.56 per diluted share in the second quarter. This represents our second consecutive quarter of record earnings.
On a same adjusted basis, return on assets was 1.74%. Second quarter 2023 return on average tangible common equity was 25.3% and the tax equivalent efficiency ratio was 46.84%. Second quarter earnings were negatively impacted by a $1.5 million pretax security loss and strategic security sales as well as 362,000 of accelerated senior note issuance cost as we redeemed the $45 million outstanding senior note.