Old Second Bancorp, Inc. (NASDAQ:OSBC) Q3 2022 Earnings Conference Call October 27, 2022 11:00 AM ET
Company Participants
James Eccher - CEO
Brad Adams - CFO
Gary Collins - Vice Chairman
Conference Call Participants
David Long - Raymond James
Chris McGratty - KBW
Manuel Navas - D.A. Davidson
Nathan Race - Piper Sandler
Operator
Good morning, everyone, and thank you for joining us today for Old Second Bancorp, Inc.'s Third Quarter 2022 Earnings Call. On the call today is Jim Eccher, the company's CEO; Gary Collins, Vice Chairman of our Board; and the company's CFO, Brad Adams.
I will start with a reminder that Old Second's comments today may 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. On today's call, we will 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 the floor over to Jim Eccher.
James Eccher
Good morning, and thank you for joining us. 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 some summary comments, few thoughts about the future before we open it up for questions.
Net income was $19.5 million or $0.43 per diluted share in the third quarter of 2022. Net income adjusted to exclude West Suburban acquisition-related costs, net losses from branch sales and gains from the sale of our VISA portfolio and land trust portfolio was $19.6 million or $0.43 per share in the third quarter.
On the same adjusted basis, return on assets was 1.30%. Return on tangible equity was 21.97% and the efficiency ratio was 51.87%. Earnings this quarter were obviously favorably impacted by an increase in net interest income of $10.3 million from increasing asset yields across the balance sheet.
The third quarter of 2022 continue to reflect the positive impacts of the West Suburban acquisition in our financial statements. We continue to outperform our own expectations on cost saves, loan growth and revenue that we had set for ourselves internally as we plan the first year following the close.