Credit quality is improving at Old Second Bancorp Inc., but the struggling company is still losing money.
The Aurora, Ill., company said late Wednesday that its third-quarter loss widened to $2.6 million, from $1.2 million a year earlier, as both interest and noninterest income declined.
The $1.9 billion-asset company reported net interest income for the quarter of $15.9 million, down 18% from a year earlier, as earning assets fell 19%, to $1.7 billion. Noninterest income was $8.5 million, down 42% from a year earlier, as gains on the sale of mortgages fell 60%, to $1.3 million.
Old Second's provision for loan losses was $3 million, down 75% from a year earlier, as nonperforming assets fell 16%, to $240 million.
The company said that its Old Second National Bank is also in compliance with the capital requirements of its consent order with the Office of the Comptroller of the Currency. The order calls for the bank to have a leverage ratio of 8.75% and a total risk-based capital ratio of 11.25%. At Sept. 30, those ratios were 9.52% and 12.98%, respectively.
