Monitor next quarter's provision for credit losses and nonperforming loan trends, as the significant increase in credit costs and deterioration in asset quality may pressure future earnings despite strong net interest margin performance.
Price Chart
Executive Summary
Old Second Bancorp reported Q1 2026 net income of $25.6M ($0.48/share), down from $28.8M ($0.54/share) in Q4 2025, driven by a $6.5M increase in provision for credit losses to $9.5M. Despite lower EPS, net interest margin expanded 5 basis points to 5.14%, and noninterest expense decreased $2.7M. Asset quality declined with nonperforming loans rising to 1.46% of total loans.
Key Financial Metrics
Key Facts
- Net income was $25.6 million, or $0.48 per diluted share, down from $28.8 million, or $0.54 per diluted share, in Q4 2025
- Provision for credit losses increased to $9.5 million from $3.0 million in Q4 2025
- Net interest margin (tax-equivalent) increased 5 basis points to 5.14%
- Noninterest expense decreased $2.7 million to $50.2 million
- Nonperforming loans increased to $75.5 million (1.46% of total loans) from $52.8 million (1.01%)
- Tangible book value per share increased 1.63% to $14.35 despite $23.1 million in share repurchases
Financial Impact
EPS down 11.1% YoY, provision for credit losses up 217% QoQ
Risk Factors
- Deterioration in credit quality with nonperforming loans increasing to 1.46% of total loans
- Higher provision for credit losses ($9.5M vs $3.0M in prior quarter) driven by powersport and commercial loan charge-offs
- Loan portfolio decline of $66.9 million, particularly in commercial real estate and powersport segments
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000357173-26-000020 |
| Document: osbc-20260422x8k.htm | 0000357173-26-000020 |
| Document: osbc-20260422xex99d2.htm | 0000357173-26-000020 |
| Document: 0000357173-26-000020-index-headers.html | 0000357173-26-000020 |
| Document: 0000357173-26-000020-index.html | 0000357173-26-000020 |
| Document: 0000357173-26-000020.txt | 0000357173-26-000020 |
| 8-K Data (Synthetic) | 0000357173-26-000020 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $24.71 | awaiting T+5 | — | $24.65 (−0.25%) |
Oct 20, 2026 6d ago | 8-K | $25.10 | awaiting T+5 | — | $24.65 (−1.80%) |
Oct 19, 2026 7d ago | 8-K | $25.10 | awaiting T+5 | — | $24.65 (−1.80%) |
Oct 8, 2026 18d ago | SC 13G | $24.86 $24.85 | ▼ −0.04% | ▲ +0.24% | $24.65 (−0.85%) |
Oct 1, 2026 25d ago | 8-K | $24.63 $24.86 | ▲ +0.93% | ▼ −0.37% | $24.65 (+0.07%) |
Sep 11, 2026 6w ago | Insider Cluster | $25.58 $24.99 | ▲ +2.31% | ▲ +2.09% | $24.65 (+3.65%) |
Sep 8, 2026 6w ago | Insider Cluster | $25.26 $24.98 | ▼ −1.11% | ▼ −0.01% | $24.65 (−2.42%) |
Aug 18, 2026 9w ago | S-3ASR | $25.66 $25.19 | ▼ −1.83% | ▼ −1.63% | $24.65 (−3.95%) |
Jul 21, 2026 13w ago | 8-K | $23.68 $24.72 | ▲ +4.39% | ▲ +5.62% | $24.65 (+4.09%) |
Jul 8, 2026 15w ago | 8-K | $22.71 $23.01 | ▲ +1.32% | ▲ +0.46% | $24.65 (+8.53%) |
US Market Status
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