Old Second Reports Q1 Revenue of $93.7M, Beating Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2026
0mins
Reports Q1 revenue $93.7M, consensus $80.9M. Provision for credit losses of $9.5 million compared to $3.0 million. CEO Jim Eccher said "Old Second reported strong results in the first quarter of 2026 led by exceptional margin performance and disciplined operating efficiency. Tangible book value per share increased by 1.63% on a linked quarter basis despite the reduction to equity from our stock repurchases of $23.1 million, or 1.2 million shares, during the quarter. Nonperforming assets increased due to a few larger relationships, but we believe we are adequately reserved for any future losses with an Allowance for Credit Losses on loans to total loans of 1.39% and ACL to nonperforming loans of 95.53%. Credit deterioration in the first quarter largely resulted from one downtown Chicago office credit and one cash-flow-dependent commercial relationship. Otherwise results remain solid with first quarter return on average assets and return on average common equity of 1.51% and 11.43%, respectively. The tax equivalent net interest margin expanded to 5.14% and the efficiency ratio was a very healthy 52.40%. This strong bottom-line performance and a well-positioned balance sheet drove an increase in the tangible common equity capital ratio to 11.07% from 11.02% for the prior linked period. We are proud of our performance from both a bottom-line perspective and in positioning ourselves to deliver better results to our stockholders over the remainder of the year."
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Analyst Views on OSBC
Wall Street analysts forecast OSBC stock price to fall
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 23.220
Low
19.00
Averages
21.63
High
24.50
Current: 23.220
Low
19.00
Averages
21.63
High
24.50
About OSBC
Old Second Bancorp, Inc. is a financial services company. The Company is the holding company of Old Second National Bank (the Bank). The Bank is a full-service banking business offering a range of deposit products, trust and wealth management services, lending services, and deposit services, including demand, NOW, money market, savings, time deposit and individual retirement accounts. It also offers commercial, industrial, consumer and real estate lending, including installment loans, agricultural loans, lines of credit, lease financing receivables and overdraft checking, and safe deposit operations. It provides a variety of additional services to the needs of individual customers, such as money orders, cashiers' checks and foreign currency, direct deposit, discount brokerage, debit cards, credit cards, and other special services. It also provides a complement of electronic banking services, such as online and mobile banking and corporate cash management products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Career Background: With over four and a half years at O2 Sponsor Finance, Gallun previously held positions at TCF Capital Funding and Fitch Ratings, bringing a strong foundation in sponsor finance and credit analysis that supports the company's development.
- Company Overview: O2 Sponsor Finance focuses on providing cash flow-based loans to lower middle-market businesses with revenues between $10 million and $100 million, aiming to support private equity sponsors and independent sponsors in acquisitions or recapitalizations, showcasing its unique market positioning.
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- Market Performance Comparison: FB Financial's stock has risen 20% over the past year, although it underperformed against the S&P 500's 28% increase, raising concerns about its ongoing profitability amidst interest rate uncertainties and deposit competition.
See More
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- Lindblad Expeditions Outlook: Lindblad Expeditions (LIND) has shown a lackluster annual revenue growth of 17.4% over the past two years, indicating a loss of market share, while its forward P/E ratio of 76.9 suggests potential overvaluation risks.
- Capital Southwest Financial Strain: Capital Southwest (CSWC) has experienced a 6.3% annual decline in earnings per share over the last two years, despite revenue growth, and its 7x net-debt-to-EBITDA ratio indicates over-leverage, increasing the risk of shareholder dilution.
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- Small-Cap Investment Strategy: While small-cap stocks present mispricing opportunities due to limited analyst coverage, the financial challenges faced by companies like LIND and CSWC necessitate cautious selection, with a recommendation to focus on outperformers like OSBC for better investment returns.
See More
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- Impact of Loan Charge-Offs: The quarter's loan charge-offs included a $3.9 million commercial real estate charge-off linked to an office property in downtown Chicago, alongside $1.3 million in industrial loan charge-offs and $3.9 million from the Powersports business, reflecting the impact of market uncertainties on credit quality.
- Net Interest Income Growth: Compared to the prior year, net interest income increased by $18 million or 29%, with a net interest margin of 5.14%, as the company reduced reliance on wholesale funding, showcasing adaptability in a declining interest rate environment.
- Stock Buyback Program: The company repurchased 1.2 million shares at an average price of $19.63 during the quarter and plans to continue this buyback under the existing authorization, indicating management's confidence in the company's future performance.
See More
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- Quarterly Dividend Announcement: Old Second Bancorp has declared a quarterly dividend of $0.07 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Yield Information: The forward yield of 1.32% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
- Payment Schedule: The dividend will be payable on May 11, with a record date of May 1 and an ex-dividend date also on May 1, providing investors with a clear timeline for their investment decisions.
- Financial Transparency: Old Second Bancorp offers its dividend scorecard, yield chart, and historical earnings data, enhancing investor confidence in the company's financial health and increasing market interest in its stock.
See More
Old Second Bancorp Q1 Earnings Highlights
- Earnings Per Share: Old Second Bancorp reported a Q1 GAAP EPS of $0.48, indicating stable profitability amidst market challenges, which may positively influence investor confidence.
- Revenue Performance: The company achieved revenues of $93.77 million, demonstrating resilience in maintaining strong income levels despite the current economic environment, which is crucial for sustaining operations.
- Financial Health: An analysis of Old Second Bancorp's financial information reveals a robust balance sheet, providing a solid foundation for future growth and shareholder returns, which is essential for long-term strategic planning.
- Dividend Commitment: The dividend scorecard for Old Second Bancorp highlights the company's commitment to returning value to shareholders, and while specific dividend data is not disclosed, its ongoing profitability supports future dividend potential.
See More
