The EPS miss and elevated charge-offs are tempered by a dramatic improvement in credit quality (NPLs halved, classified loans down 44%) and strong margin expansion. Watch the Q4 earnings call for guidance on whether the charge-off spike is truly isolated and for the pace of further buybacks. The dividend increase signals board confidence.
Price Chart
Executive Summary
Old Second Bancorp reported Q3 2026 GAAP diluted EPS of $0.56, a miss vs consensus of $0.59 (-5.1%), with net interest income of $84.0M. Credit quality improved sharply — nonperforming loans fell 30% QoQ to $39.6M and classified loans dropped 44% to $74.2M — but net charge-offs surged to $12.7M (driven by one commercial relationship). The bank repurchased 1.5M shares (~3% of outstanding) and raised the quarterly dividend 14% to $0.08.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $0.56 vs consensus $0.59 (miss of ~5.1%)
- Net interest income $84.0M, up 0.86% linked-quarter
- Net interest margin (tax-equivalent) expanded 4 bps to 5.27%
- Nonperforming loans fell 30% QoQ to $39.6M (0.76% of loans vs 1.08%)
- Classified loans dropped 44% to $74.2M from $132.1M
- Net charge-offs $12.7M, concentrated in one commercial relationship and powersport
- Provision for credit losses $6.8M, down from $7.5M prior quarter
- Share repurchases of 1.5M shares at avg $25.76, total $39.5M
- Quarterly dividend raised 14% to $0.08 per share
- Tangible book value per share $14.75, up from $14.77 prior quarter
Financial Impact
EPS miss of ~$0.03 vs consensus; net charge-offs $12.7M; share buyback $39.5M; dividend increase to $0.08/sh
Risk Factors
- Further charge-offs from the remaining commercial relationship or powersport portfolio
- Deposit cost creep as higher-rate brokered CDs roll off and competition persists
- AOCI losses on securities portfolio ($43.4M) could pressure capital if rates rise further
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000357173-26-000057 |
| Document: osbc-20261021x8k.htm | 0000357173-26-000057 |
| Document: osbc-ex99d2.htm | 0000357173-26-000057 |
| Document: 0000357173-26-000057-index-headers.html | 0000357173-26-000057 |
| Document: 0000357173-26-000057-index.html | 0000357173-26-000057 |
| Document: 0000357173-26-000057.txt | 0000357173-26-000057 |
| 8-K Data (Synthetic) | 0000357173-26-000057 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $24.71 | awaiting T+5 | — | $24.77 (+0.24%) |
Oct 20, 2026 6d ago | 8-K | $25.10 | awaiting T+5 | — | $24.77 (−1.31%) |
Oct 19, 2026 7d ago | 8-K | $25.10 | awaiting T+5 | — | $24.77 (−1.31%) |
Oct 8, 2026 18d ago | SC 13G | $24.86 $24.85 | ▼ −0.04% | ▲ +0.24% | $24.77 (−0.36%) |
Oct 1, 2026 25d ago | 8-K | $24.63 $24.86 | ▲ +0.93% | ▼ −0.37% | $24.77 (+0.57%) |
Sep 11, 2026 6w ago | Insider Cluster | $25.58 $24.99 | ▲ +2.31% | ▲ +2.09% | $24.77 (+3.17%) |
Sep 8, 2026 6w ago | Insider Cluster | $25.26 $24.98 | ▼ −1.11% | ▼ −0.01% | $24.77 (−1.94%) |
Aug 18, 2026 9w ago | S-3ASR | $25.66 $25.19 | ▼ −1.83% | ▼ −1.63% | $24.77 (−3.47%) |
Jul 21, 2026 13w ago | 8-K | $23.68 $24.72 | ▲ +4.39% | ▲ +5.62% | $24.77 (+4.60%) |
Jul 8, 2026 15w ago | 8-K | $22.71 $23.01 | ▲ +1.32% | ▲ +0.46% | $24.77 (+9.07%) |
US Market Status
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