Old Second Bancorp (OSBC)
NASDAQ:OSBC
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Old Second Bancorp
(NASDAQ:OSBC)
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Rating:73Outperform
Price Target:
$23.00
â–²(4.88% Upside)
Action:Reiterated
Date:05/20/26
The score is driven mainly by solid financial performance (strong profitability and improved leverage) and a constructive earnings outlook (healthy margins, disciplined expenses, and ongoing buybacks), partially offset by recent credit deterioration and only neutral technical momentum. Valuation is supportive due to a low P/E, though the dividend yield is modest.
Positive Factors
Net interest margin strength
A 5.14% tax‑equivalent NIM indicates structurally strong core margin generation for a regional bank, supporting durable net interest income even with modest loan growth. Sustained NIM near these levels underpins long‑term earnings power and buffers against moderate deposit repricing.
Negative Factors
Elevated loan charge‑offs
Material quarterly charge‑offs across powersports, CRE and C&I highlight growing credit stress and increased provisioning needs. Persistently higher charge‑offs would erode earnings, require larger allowances, and reduce capital flexibility, making credit performance a key medium‑term risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Net interest margin strength
A 5.14% tax‑equivalent NIM indicates structurally strong core margin generation for a regional bank, supporting durable net interest income even with modest loan growth. Sustained NIM near these levels underpins long‑term earnings power and buffers against moderate deposit repricing.
Read all positive factors
Old Second Bancorp (OSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.08B
Dividend Yield1.24%
Average Volume (3M)338.24K
Price to Earnings (P/E)10.4
Beta (1Y)0.84
Revenue Growth26.26%
EPS Growth-8.61%
CountryUS
Employees877
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.71
Shares Outstanding51,432,373
10 Day Avg. Volume310,798
30 Day Avg. Volume338,243
Financial Highlights & Ratios
PEG Ratio-0.93
Price to Book (P/B)1.15
Price to Sales (P/S)2.59
P/FCF Ratio8.72
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue3.18
Enterprise Value/Gross Profit4.16
Enterprise Value/Ebitda10.74
Forecast
1Y Price Target
$24.00Price Target Upside9.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.17
Revenue Forecast (FY)$382.95M
Old Second Bancorp Business Overview & Revenue Model
Company Description
Old Second Bancorp, Inc. operates as the bank holding company for Old Second National Bank that provides community banking services. It provides demand, NOW, money market, savings, time deposit, individual retirement, and checking accounts, as wel...
How the Company Makes Money
Old Second Bancorp primarily makes money through its banking subsidiary by (1) earning net interest income and (2) generating noninterest income (fees).
1) Net interest income (core earnings driver): The bank pays interest (and incurs related cos...
Old Second Bancorp Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive underlying performance — strong margin (5.14% NIM), solid earnings power (GAAP and adjusted EPS, ROTCE 14.2%), disciplined expense control, tangible book value and capital flexibility with active buybacks — tempered by near‑term credit challenges. Asset quality softened during the quarter (notably $9.8M in charge‑offs, a ~50% valuation reduction on one office CRE property, and an uptick in nonperforming loans), leading to higher provisions. Management expects charge‑off pressure in powersports to moderate seasonally, targets low‑ to mid‑single‑digit loan growth for the year, anticipates NIM drifting toward ~5% later in the year, and plans continued share repurchases while keeping capital ample. Overall, the positives (margin, profitability, capital returns, expense control, and balance sheet flexibility) outweigh the credit‑related setbacks, which management views as largely idiosyncratic and manageable.Positive Updates
Strong GAAP and Adjusted Earnings
GAAP net income of $25.6M ($0.48 diluted EPS) and adjusted net income of $26.0M ($0.49 diluted EPS) for Q1 2026, supporting mid‑teen return on average tangible common equity (14.2%) and 1.51% return on assets.
Negative Updates
Elevated Net Loan Charge‑Offs
Q1 net loan charge‑offs of $9.8M (notable contributors: $3.9M CRE investor office charge‑off, $3.9M powersports, $1.3M C&I), which meaningfully impacted quarterly earnings and drove a higher provision.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong GAAP and Adjusted Earnings
GAAP net income of $25.6M ($0.48 diluted EPS) and adjusted net income of $26.0M ($0.49 diluted EPS) for Q1 2026, supporting mid‑teen return on average tangible common equity (14.2%) and 1.51% return on assets.
Read all positive updates
Company Guidance
Management guided to continued strong margins and capital/light growth: Q1 tax‑equivalent NIM was 5.14% and is expected to remain healthy in the near term, trending back toward about 5% later in the year; loan growth is being targeted in the mid‑single‑digit (described as low‑to‑mid single‑digit) range, expense growth is expected to be modest at about 3–4% for the year, and share repurchases will continue (1.2M shares bought in Q1 at an average $19.63 for ~$23.1M, boosting EPS by ~$0.01, more than halfway through the authorization with plans to refile). On credit, Q1 net loan charge‑offs were $9.8M (powersports >2% this quarter, powersports contribution margin 8.3% after charge‑offs), provisions were $9.5M, and the allowance stood at $72.1M (1.39% of loans); management expects loss content to trend lower seasonally but warned powersports losses will remain somewhat elevated versus history (prior net‑charge‑off guidance had been ~40 bps). Capital and liquidity remain ample (tangible book $14.35, tangible equity ratio 11.07%, CET1 13.13%, loan‑to‑deposit 93.2%, cost of deposits 105 bps), efficiency stays strong (adjusted tax‑equivalent efficiency ratio ~51.7%), and ROTCE remains in the mid‑teens (14.2% in Q1).Old Second Bancorp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 425.74M | 396.97M | 336.17M | 321.03M | 255.24M | 141.89M |
| Gross Profit | 325.33M | 310.20M | 267.15M | 264.49M | 238.37M | 129.11M |
| EBITDA | 125.99M | 120.83M | 122.12M | 132.11M | 98.43M | 31.66M |
| Net Income | 86.06M | 80.31M | 85.26M | 91.73M | 67.41M | 20.04M |
Balance Sheet | ||||||
| Total Assets | 6.85B | 6.90B | 5.65B | 5.72B | 5.89B | 6.21B |
| Cash, Cash Equivalents and Short-Term Investments | 48.10M | 196.38M | 1.26B | 1.29B | 1.65B | 2.45B |
| Total Debt | 323.31M | 338.92M | 141.90M | 516.63M | 260.81M | 198.88M |
| Total Liabilities | 5.96B | 6.01B | 4.98B | 5.15B | 5.43B | 5.71B |
| Stockholders Equity | 893.30M | 896.77M | 671.03M | 577.28M | 461.14M | 502.03M |
Cash Flow | ||||||
| Free Cash Flow | 139.37M | 117.76M | 120.75M | 104.03M | 93.01M | 29.01M |
| Operating Cash Flow | 141.37M | 122.26M | 131.53M | 116.40M | 97.34M | 31.05M |
| Investing Cash Flow | 112.67M | 159.82M | 322.70M | 161.56M | -432.78M | 132.92M |
| Financing Cash Flow | -394.43M | -257.39M | -455.05M | -292.99M | -301.50M | 258.24M |
Old Second Bancorp Technical Analysis
Positive
21.93
Price Trends
20.51
Positive
20.29
Positive
19.22
Positive
Market Momentum
0.04
Positive
53.35
Neutral
47.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSBC, the sentiment is Positive. The current price of 21.93 is above the 20-day moving average (MA) of 20.69, above the 50-day MA of 20.51, and above the 200-day MA of 19.22, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 47.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OSBC.
Old Second Bancorp Risk Analysis
Old Second Bancorp disclosed 49 risk factors in its most recent earnings report. Old Second Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Old Second Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.09B | 8.86 | 10.19% | 2.59% | 3.92% | 25.09% | |
75 Outperform | $1.23B | 10.77 | 19.50% | 3.39% | -12.54% | 126.82% | |
73 Outperform | $1.08B | 10.38 | 10.20% | 1.24% | 26.26% | -8.61% | |
73 Outperform | $974.18M | 18.16 | 18.23% | 0.66% | 20.11% | 11.08% | |
70 Outperform | $1.15B | 9.69 | 9.93% | 2.43% | 5.91% | 17.81% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $974.07M | 9.94 | 8.49% | 4.59% | -6.76% | -18.82% |
* Financial Sector Average
OSBC
Old Second Bancorp
20.97
4.56
27.75%
SBSI
Southside Bancshares
32.74
5.72
21.18%
TMP
Tompkins Financial Corporation
85.46
25.50
42.54%
UVSP
Univest Of Pennsylvania
39.00
9.82
33.67%
FMBH
First Mid-Illinois Bancshares
43.27
8.32
23.81%
ESQ
Esquire Financial Holdings
112.76
24.77
28.15%
Old Second Bancorp Corporate Events
Executive/Board ChangesShareholder Meetings
Old Second Bancorp Shareholders Approve Directors and Governance Items
Positive
May 20, 2026
At its May 19, 2026 Annual Meeting of Stockholders, Old Second Bancorp reported strong shareholder participation, with about 85.39% of its 51.8 million eligible common shares represented in person or by proxy. Stockholders elected Darin Campbell, ...
Shareholder Meetings
Old Second Bancorp Holds 2026 Annual Stockholders Meeting
Neutral
May 19, 2026
Old Second Bancorp, Inc. announced that its Annual Stockholders Meeting was held on May 19, 2026, at 9:00 a.m. CDT in Aurora, Illinois, marking a key governance event for the NASDAQ-listed bank holding company. Shareholders and investors were info...
Private Placements and FinancingRegulatory Filings and Compliance
Old Second Bancorp Announces Partial Subordinated Notes Redemption
Neutral
Mar 4, 2026
On March 4, 2026, Old Second Bancorp announced it will redeem $30 million of its outstanding 3.50% Fixed-to-Floating Rate Subordinated Notes due 2031 on April 15, 2026, at 100% of principal plus accrued and unpaid interest, after receiving non-obj...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.