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Old Second Bancorp
(NASDAQ:OSBC)
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Rating:77Outperform
Price Target:
$27.00
â–²(9.22% Upside)
Action:Reiterated
Date:07/23/26
OSBC scores well due to solid financial performance (profitability, improving leverage, and generally strong cash generation) and constructive technical momentum (price above key moving averages with a positive MACD). The latest earnings call adds support via strong margins, improving credit trends, and ongoing buybacks, while fair (not cheap) valuation and risks around charge-offs, deposit competition, and potential margin volatility keep the score from the highest tier.
Positive Factors
Net Interest Margin & NII
A persistently high NIM (5.23% in Q2) and meaningful NII growth reflect durable core earnings power from lending and asset mix. That structural margin advantage supports recurring profitability, funds loss absorption and capital returns, and underpins long-term ROE if funding and loan yields remain stable.
Negative Factors
Elevated Charge-offs
Quarterly charge-offs concentrated in C&I, an office B-note and powersports show pockets of credit deterioration. Persistent or rising charge-offs can erode earnings and reserves over time, necessitating higher provisions that constrain capital growth and limit lending or dividend flexibility across future cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Net Interest Margin & NII
A persistently high NIM (5.23% in Q2) and meaningful NII growth reflect durable core earnings power from lending and asset mix. That structural margin advantage supports recurring profitability, funds loss absorption and capital returns, and underpins long-term ROE if funding and loan yields remain stable.
Read all positive factors
Old Second Bancorp (OSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.30B
Dividend Yield1.11%
Average Volume (3M)338.24K
Price to Earnings (P/E)14.2
Beta (1Y)0.83
Revenue Growth33.92%
EPS Growth-4.91%
CountryUS
Employees1,062
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-0.87
Price to Book (P/B)1.15
Price to Sales (P/S)2.59
P/FCF Ratio8.72
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$27.67Price Target Upside11.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2.19
Revenue Forecast (FY)$384.14M
Old Second Bancorp Business Overview & Revenue Model
Company Description
Old Second Bancorp, Inc. (OSBC) serves as the parent holding company for Old Second National Bank, providing a full range of community banking services. The institution offers a broad spectrum of deposit products, including demand, NOW, money mark...
How the Company Makes Money
Old Second Bancorp primarily makes money through its banking subsidiary by earning interest and fees from financial products and services. The largest earnings driver for a traditional community bank is typically net interest income: the bank pays...
Old Second Bancorp Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a positive operational and financial performance: strong net interest margin, revenue growth, loan growth, improved asset quality with notable declines in NPAs and special mention assets, robust fee businesses, and disciplined capital return via buybacks. Key challenges were $9.2M of charge-offs (including CRE and C&I), continued pressure in the office CRE market (though small portfolio share), deposit competition that could pressure future margins, and modest expense increases. Management emphasized improving credit trends and a strong capital position while remaining cautiously optimistic about the outlook.Positive Updates
Strong Net Income and Profitability
GAAP net income of $28.2M ($0.54 diluted EPS) in Q2 2026; adjusted net income $28.7M ($0.55). Return on assets 1.65% and return on average tangible common equity 15.58%.
Negative Updates
Net Loan Charge-Offs
Net loan charge-offs of $9.2M in Q2, driven by a $3.0M C&I charge-off (warehousing & distribution), a $2.8M commercial real estate investor B-note charge-off (office property), and $2.8M from the powersports portfolio.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Net Income and Profitability
GAAP net income of $28.2M ($0.54 diluted EPS) in Q2 2026; adjusted net income $28.7M ($0.55). Return on assets 1.65% and return on average tangible common equity 15.58%.
Read all positive updates
Company Guidance
Management reiterated guidance for 2026 of low‑to‑mid single‑digit loan growth, modest expense growth, continued capital returns (1.9M shares repurchased YTD at a $20.31 average, 732k in Q2 at $21.08, and a new authorization to repurchase ~2.5M shares through 6/30/2027), and generally stable margins—Q2 NIM was 5.23% (up 9 bps QoQ, 38 bps YoY) with a best‑estimate of ~5.18% in Q3 and ~5.15% in Q4; deposit cost fell to 100 bps, loan yields rose 12 bps QoQ (63 bps YoY), L/D = 96.4%, total loans up $60.6M in Q2. Credit guidance was constructive: NPAs down 25%, nonperforming loans down $19M, classified assets down $16.5M, special mention down $12.5M to $27M, ACL $70.4M (1.34% of loans), provision $7.5M (down $2.5M QoQ). Capital/efficiency targets remain strong (CET1 13.28%, tangible book $14.77, tangible equity ratio 11.19%, adjusted efficiency ~50.8%).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 | 128.35M | 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
24.72
Price Trends
22.65
Positive
21.54
Positive
20.43
Positive
Market Momentum
0.40
Negative
66.31
Neutral
69.17
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 24.72 is above the 20-day moving average (MA) of 23.71, above the 50-day MA of 22.65, and above the 200-day MA of 20.43, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 66.31 is Neutral, neither overbought nor oversold. The STOCH value of 69.17 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.12B | 20.38 | 17.82% | 0.62% | 19.99% | 10.00% | |
77 Outperform | $1.30B | 14.21 | 10.39% | 1.09% | 33.92% | -4.91% | |
74 Outperform | $1.22B | 12.68 | 10.41% | 2.01% | 2.41% | 26.67% | |
73 Outperform | $1.44B | 8.12 | 19.30% | 2.58% | -13.65% | 120.32% | |
70 Outperform | $1.39B | 12.89 | 9.86% | 1.96% | 10.34% | 14.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $969.06M | 12.80 | 8.89% | 4.21% | -4.09% | -9.75% |
* Financial Sector Average
OSBC
Old Second Bancorp
25.29
8.72
52.59%
SBSI
Southside Bancshares
32.51
4.86
17.59%
TMP
Tompkins Financial Corporation
99.84
38.55
62.91%
UVSP
Univest Of Pennsylvania
44.24
16.37
58.72%
FMBH
First Mid-Illinois Bancshares
52.09
15.21
41.24%
ESQ
Esquire Financial Holdings
129.22
35.27
37.54%
Old Second Bancorp Corporate Events
Business Operations and StrategyExecutive/Board Changes
Old Second Bancorp Announces Board Resignation and Resize
Neutral
Jul 8, 2026
On July 7, 2026, Old Second Bancorp, Inc. announced that director John Williams, Jr. resigned from its Board in accordance with the company’s Director Resignation Policy, which requires directors to step down upon reaching age 73. Williams, ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Old Second Bancorp Announces New Share Repurchase Program
Positive
Jun 25, 2026
Old Second Bancorp, Inc. announced that its board has authorized a new share repurchase program allowing the company to buy back up to $61.2 million of its common stock between July 1, 2026, and June 30, 2027, following receipt of nonobjection fro...
Business Operations and StrategyExecutive/Board Changes
Old Second Bancorp Director Resigns, Board Size Reduced
Neutral
Jun 9, 2026
On June 5, 2026, Old Second Bancorp announced that director Dennis Klaeser resigned from the boards of both the holding company and Old Second National Bank, effective immediately, after serving since 2021. Klaeser, who held a Class II seat with a...
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...
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.