Old Second Q3 EPS $0.56, Credit Metrics Improve Sharply, Dividend Raised 14%
OSBC sits 45% above its 52-week low of $17.11.
Summary
Old Second earned $0.56 per diluted share in Q3 2026, with nonperforming loans down 30% and classified loans down 44%, and raised the quarterly dividend 14% to $0.08 per share.
Key Events · Earnings and Guidance · OSBC
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Q3 EPS $0.56, Margin 5.27%
Net income came in at $28.9M, or $0.56 per diluted share, versus $28.2M and $0.54 in Q2 2026. Tax-equivalent net interest margin rose 4 bps to 5.27% on $84.0M of net interest income.
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Credit Metrics Improve Sharply
Nonperforming loans fell to $39.6M (0.76% of total loans) from $56.5M (1.08%), and classified loans dropped to $74.2M from $132.1M. Criticized loans now stand at 1.88% of the portfolio versus 3.05% last quarter.
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Charge-Offs Still Elevated
Net charge-offs were $12.7M, including $3.1M on powersport loans and commercial losses concentrated in one previously identified relationship; the provision was $6.8M versus $7.5M in Q2.
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Dividend Raised 14%
The board declared $0.08 per share payable November 9, 2026 to holders of record October 30, 2026, up from $0.07, which management describes as a 14% increase.
Analysis · OSBC · Finance
The quarter itself was steady rather than spectacular: EPS of $0.56 versus $0.54, margin up 4 bps to 5.27%, and an efficiency ratio of 52.34%. Credit is where the story turns. Nonperforming loans fell 30% to $39.6M (0.76% of loans) and classified loans dropped 44% to $74.2M, while criticized loans declined to 1.88% of the portfolio from 3.05%. That directly addresses the concern raised in the Q1 and Q2 filings about rising nonperformers and thinning loss coverage. Charge-offs of $12.7M were still elevated and concentrated in one previously identified commercial relationship, so the improvement is real but not yet fully clean. Management also elected a 14% dividend increase to $0.08 per share and bought back 1.53M shares for $39.5M during the quarter, which supports the earnings base but leaves tangible common equity at 11.00% of tangible assets, down from 11.19%.
How filings like this one have moved
In the 30 days to Oct 22, 2026, 29.4% of the 1563 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.47%. 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 $24.87 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $17.11 to $26.06. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.