Old Second Q2 Earnings: Net Income Climbs to $28.2M, Credit Quality Strengthens, Buybacks Persist
OSBC sits 43% above its 52-week low of $16.425.
Summary
Old Second Bancorp posted Q2 2026 net income of $28.2 million ($0.54 per share), up from $25.6 million in Q1, supported by a higher net interest margin, lower credit provisions, and a significant decline in nonperforming loans. The bank also repurchased 732,000 shares and declared a $0.07 dividend.
Key Events · Earnings and Guidance · OSBC
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Net Income Rises 10% Sequentially
Q2 2026 net income reached $28.2 million, or $0.54 per diluted share, compared to $25.6 million, or $0.48 per share, in Q1 2026.
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Net Interest Margin Expands
Driven by higher loan yields and lower deposit costs, the net interest margin on a fully tax-equivalent basis widened 9 basis points to 5.23%.
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Credit Quality Improves
Nonperforming loans fell to $56.5 million (1.08% of total loans) from $75.5 million (1.46%), while the provision for credit losses decreased to $7.5 million from $9.5 million.
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Share Repurchases Continue
The company bought back 732,183 shares at an average price of $21.08, reducing capital by $15.4 million, net of excise taxes.
Analysis · OSBC · Finance
A strong quarter for Old Second saw net income rise 10% sequentially, fueled by a wider net interest margin and reduced credit costs. Nonperforming loans dropped sharply, and the bank repurchased 732,000 shares, lifting tangible book value. The results underscore improving asset quality and capital returns, though net charge-offs remained elevated at $9.2 million, concentrated in two commercial credits and powersport loans.
How filings like this one have moved
In the 30 days to Oct 5, 2026, 29.2% of the 1496 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.63%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, OSBC was trading at $23.41 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $16.43 to $23.99. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.