Along with the price move, its traded volume also jumped up to over 400 shares, showing traders’ keen interest.Still, it was too soon to consider the positive price change as a long-term uptrend, as the stock started to move down again.[BANNER]
Old Second Bancorp is a bank holding company, whose business includes a full service community banking and trust business. Historical data shows that last month OSBC has traded bellow its yearly average and has initiated an order for raising capital.
According to Chicago Business, the company is: “struggling with a heavy load of soured construction and development loans” and: “is operating under an agreement with federal regulators requiring it to boost capital levels above the normal minimums”.
The mentioned above appears to be a key factor for OSBC’s future existence.
Records show that last year the company has generated a net loss of $70 million, and presently it is still looking for additional financing.
OSBC’s 2010 first quarter results turned to be quite disappointing:
- Total revenue decreased
- Net income decreased
- Total assets of 2,497 million
- Total liabilities of 2,309 million
Along with the net losses the company has suffered, OSBC may definitely need to raise more capital for its business operations.
Currently, the price change for the stock is negative and the uptrend from yesterday is already broken.
