業績公告
即時報告
8-K
2026-07-22
Old Second Bancorp 第二季純利2820萬美元勝預期 每股盈利0.54美元
AI 繁中摘要
Old Second Bancorp (NASDAQ:OSBC) 公佈 2026 年第二季業績，純利 2,820 萬美元（每股 0.54 美元），按季增長 10%（上季 2,560 萬美元）；調整後純利 2,870 萬美元（每股 0.55 美元），表現勝預期📈。
核心亮點：
- 淨利息收入 8,330 萬美元，按季增 2.7%；稅後淨息差擴闊 9 個基點至 5.23%，受惠貸款收益率上升及存款成本下降 5 個基點至 1.00%。
- 信貸損失撥備減至 750 萬美元（上季 950 萬美元），主要因兩筆大型商業及商用物業貸款的撇賬，但不良貸款率由 1.46% 降至 1.08%，整體資產質量改善。
- 非利息收入 1,330 萬美元，按季增 5%，來自財富管理、BOLI 現金價值及卡類收入增長；非利息支出 5,130 萬美元，增 2.1%，效率比率改善至 51.72%（調整後 50.80%）。
- 平均資產回報率 1.65%，有形普通股權益回報率 15.58%（調整後 15.85%）。有形普通股權益比率升至 11.19%。
- 季內回購 73.2 萬股（均價 21.08 美元），並於 7 月 21 日宣派每股 0.07 美元股息（8 月 10 日派付）。
- 貸款總額增至 52.5 億美元，存款總額 54.4 億美元（受季節性及高息定存到期影響下滑 2.2%）。
管理層看法：董事長 Jim Eccher 表示第二季表現強勁，收入及息差突出，營運效率理想，即使撇賬較高，整體回報仍然可觀。非計息、分類及受關注資產均顯著減少，信貸損失準備對貸款比率 1.34%，對不良貸款覆蓋率 124.6%，相信足以應付潛在損失。對下半年能為股東帶來更佳成績充滿信心💪。
對投資者啟示：Old Second 展現良好盈利能力及資本實力，息差持續擴闊及資產質量改善為正面訊號；惟需留意商業及休閒車貸的撇賬風險，以及存款成本走勢。回購行動顯示管理層對估值信心。
展開英文正文
EX-99.1
2
osbc-20260722xex99d1.htm
EX-99.1
Old Second Bancorp, Inc
(NASDAQ:OSBC)
Exhibit 99.1
Contact:
Bradley S. Adams
For Immediate Release
Chief Financial Officer
July 22, 2026
(630) 906-5484
Old Second Bancorp, Inc. Reports Second Quarter 2026 Net Income of $28.2 Million,
or $0.54 per Diluted Share
AURORA, IL, July 22, 2026 – Old Second Bancorp, Inc. (the “Company,” “Old Second,” “we,” “us,” and “our”) (NASDAQ: OSBC), the parent company of Old Second National Bank (the “Bank”), today announced financial results for the second quarter of 2026. Our net income was $28.2 million, or $0.54 per diluted share, for the second quarter of 2026, compared to net income of $25.6 million, or $0.48 per diluted share, for the first quarter of 2026. Adjusted net income1 was $28.7 million, or adjusted diluted earnings per share1 of $0.55, for the second quarter of 2026, compared to adjusted net income1 of $26.0 million, or adjusted diluted earnings per share1 of $0.49, for the first quarter of 2026.
Notable Items2
●Net interest and dividend income was $83.3 million, reflecting an increase of $2.2 million, or 2.69%.
●Net interest margin (NIM) on a fully tax-equivalent basis1 was 5.23%, an increase of nine basis points.
●Provision for credit losses of $7.5 million compared to $9.5 million, a decrease of $2.0 million.
●Noninterest income was $13.3 million, an increase of $631,000, or 5.00%, compared to $12.6 million.
●Noninterest expense was $51.3 million, an increase of $1.0 million, or 2.08%, compared to $50.2 million.
●Efficiency ratio decreased 68 basis points to 51.72%; adjusted efficiency ratio was 50.80%1.
●Provision for income tax of $9.7 million, compared to $8.5 million, with an effective tax rate of 25.53% and 24.89%, respectively.
●Return on average assets of 1.65%, compared to 1.51%.
●Return on tangible common equity (ROATCE)1 of 15.58%; adjusted ROATCE1 of 15.85%.
●On July 21, 2026, our Board of Directors declared a cash dividend of $0.07 per share of common stock, payable on August 10, 2026, to stockholders of record as of July 31, 2026.
Chairman, President and Chief Executive Officer Jim Eccher said, “Old Second reported strong results in the second quarter of 2026 led by exceptional revenue and margin performance and disciplined operating efficiency. Tangible book value per share exhibited double-digit percentage growth on an annualized basis despite the repurchase of 732,000 shares during the quarter. Nonperforming, classified and criticized assets all decreased meaningfully during the second quarter, and we believe we are adequately reserved for any future losses with an Allowance for Credit Losses on loans (“ACL”) to total loans of 1.34% and ACL to nonperforming loans of 124.60%. Charge-offs in the second quarter largely resulted from one downtown Chicago office credit and one cash-flow-dependent commercial relationship which had been downgraded in prior quarters. Overall results are exceptionally strong across the board, despite a relatively elevated level of net charge-offs, with second quarter return on average assets and return on average tangible common equity of 1.65% and 15.58%, respectively. The tax equivalent net interest margin expanded nine basis points quarter over linked quarter to 5.23% and the efficiency ratio was a very healthy 51.72%. This strong bottom-line performance and a well-positioned balance sheet drove an increase in the tangible common equity capital ratio to 11.19% from 11.07% for the prior linked period. We are proud of our performance both from a bottom-line perspective and in positioning ourselves to deliver even better results to our stockholders over the last half of the year.”
1Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the non-GAAP reconciliation contained in this release.
2All comparisons throughout this release are on a linked-quarter basis, unless otherwise noted.
Results of Operations:
Our net income was $28.2 million, or $0.54 per diluted share, for the second quarter of 2026, compared to net income of $25.6 million, or $0.48 per diluted share.
Loans increased $60.6 million driven primarily by increases in commercial, construction, multifamily, powersport, and other, including consumer.
●Total loans were $5.25 billion.
●Average loans (including loans held-for-sale) for the second quarter of 2026 totaled $5.22 billion, reflecting an increase of $15.3 million.
Credit Quality key performance metrics were impacted by two larger credits.
●Nonperforming loans totaled $56.5 million compared to $75.5 million. The $19.0 million decrease reflects paydowns, upgrades to performing status, loan payoffs, the renewal of $8.7 million of loans past due 90 days accruing that were in the process of renewal, and charge-offs of $5.8 million.
●Nonperforming loans to total loans was 1.08% compared to 1.46%.
●Classified loans totaled $132.1 million compared to $148.6 million.
●Criticized loans (special mention, substandard and doubtful) to total loans was 3.05% compared to 3.64%. The quarter-over-quarter decrease is driven by a decrease of $12.4 million in special mention loans, a decrease of $8.9 million of nonaccrual loans, and a decrease of $7.6 million in substandard accruing.
●Provision for credit losses of $7.5 million was driven by powersport charge-offs, and larger than normal charge-offs in commercial and commercial real estate; the non-powersport charge-offs were primarily isolated to two loan relationships.
Deposits experienced seasonal declines in savings and money market accounts as well as declines in time deposits as higher rate brokered deposits and other exception-priced time deposits assumed from Bancorp Financial, Inc. rolled off.
●Total deposits were $5.44 billion, a decrease of $120.3 million, or 2.16%.
●Cost of deposits decreased five basis points to 1.00%.
●Average interest-bearing deposits decreased $81.7 million while non-interest bearing deposits increased $7.0 million.
Net Interest Margin continued to be strong and increases in the cost of funds were outweighed by stronger yields during the quarter.
●Net interest margin on a fully tax-equivalent basis improved nine basis points.
●Loan yields increased 12 basis points on higher average loan balances during the quarter, and investment yields increased six basis points driven by maturities and paydowns of lower yielding securities.
●Cost of funds increased two basis points driven by higher costs on the remaining subordinated debt, coupled with $213,000 of accelerated issuance costs related to our partial redemption of $30.0 million of the original $60.0 million of subordinated debt during the quarter. Cost of deposits decreased by five basis points, specifically due to an 18-basis point decline in the cost of time deposits.
Noninterest Income increased $631,000, or 5.00%, in the second quarter of 2026.
●Wealth management related income increased in the period due to growth in advisory, insurance – annuities, agent, estate, and personal trust fees.
●The cash surrender value of BOLI increased in the current quarter due to market rate changes.
●Card related income increased in the current quarter due to growth in debit card related fees from higher transaction volumes.
●Other income decreased in the period due to a decrease in powersport related dealer charge-back income.
Noninterest Expense increased $1.0 million or 2.08%.
●Salaries and employee benefits increased $430,000, driven by growth in salaries, officer incentive accruals, deferred compensation expense, and insurance premiums, partially offset by decreases in payroll taxes and 401K company match as 2025 incentive payments were paid in the prior quarter.
●Other expenses increased $712,000 primarily due to growth in director deferred compensation expense, a $172,000 increase in litigation expense primarily regarding two unrelated customer disputes with limited exposure that are both considered non-recurring in nature, and an accrual of $184,000 related to powersport loan gap insurance refunds due to customers related to loan prepayments.
●Efficiency ratio for the quarter was 51.72% compared to 52.40% and the adjusted efficiency ratio1 was 50.80% compared to 51.70%.
Capital continued to grow due to strong net income.
●Stockholders’ equity increased $9.5 million due to net income of $28.2 million, partially offset by $3.6 million of dividends declared and a $15.5 million increase in treasury stock from share repurchases and stock award vestings.
●Share repurchases of 732,183 shares at an average price paid per share of $21.08, for a total reduction to capital of $15.4 million, net of excise taxes.
●ROATCE1 was 15.58% compared to 14.20%.
●Tangible common equity to tangible assets1 was 11.19% compared to 11.07%.
2
1Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the non-GAAP reconciliation contained in this release.
Cautionary Note Regarding Forward-Looking Statements
This earnings release and statements by our management may contain forward-looking statements within the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “should,” “anticipate,” “expect,” “estimate,” “intend,” “believe,” “may,” “likely,” “will,” “forecast,” “project,” “looking forward,” “optimistic,” “hopeful,” “potential,” “progress,” “prospect,” “remain,” “deliver,” “continue,” “trend,” “momentum,” “remainder,” “beyond,” “build,” and “near” or other statements that indicate future events or expectations. Examples of forward-looking statements include, but are not limited to, statements regarding the economic outlook, balance sheet growth, and building capital. Such forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:
●the strength of the United States economy in general and the strength of the local economies in which we conduct our operations may be different than expected;
●the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses;
●adverse developments in the commercial real estate market, including increased vacancy rates, declining property values, or borrower distress, particularly in the office sector, which could result in increased credit losses or require additional provisions;
●changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action;
●risks related to pending or future acquisitions, if any, including execution and integration risks;
●adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on us;
●changes in interest rates, which have affected and may continue to affect our deposit and funding costs, net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of our assets, including our investment securities;
●elevated inflation which causes adverse risk to the overall economy, and could indirectly pose challenges to our clients and to our business; and
●the adverse effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as trade disputes, epidemics and pandemics, war or terrorist activities, essential utility outages, deterioration in the global economy, instability in the credit markets, disruptions in our customers’ supply chains or disruptions in transportation, and disruptions caused by widespread cybersecurity incidents.
Additional risks and uncertainties are contained in the “Risk Factors” and forward-looking statements disclosure in our most recent Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q. The inclusion of this forward-looking information should not be construed as a representation by us or any person that future events, plans, or expectations contemplated by us will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Conference Call
We will host a call on Thursday, July 23, 2026, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss our second quarter 2026 financial results. Investors may listen to our earnings call via a live webcast by accessing the link provided below, or alternatively, on the Events section of the Old Second Investor Relations website (https://investors.oldsecond.com/events). Investors are encouraged to register at the webcast link at least 10 minutes prior to the scheduled start of the call.
Webcast URL: https://www.webcaster5.com/Webcast/Page/2239/54212
A replay of the webcast will be available under the Events section of the Old Second Investor Relations website (https://investors.oldsecond.com/events) for up to one year after the earnings call date.
3
Non-GAAP Presentations
We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision-making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets or by adjusting certain items that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully tax-equivalent basis. We believe these measures provide investors with information regarding balance sheet profitability, and we believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing, and comparing past, present and future periods.
These non-GAAP financial measures should not be considered as a substitute for GAAP financial measures, and we strongly encourage investors to review the GAAP financial measures included in this earnings release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this earnings release with other companies’ non-GAAP financial measures having the same or similar names. The tables beginning on page 12 provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP equivalent.
Management has disclosed in this earnings release certain non-GAAP financial measures to evaluate and measure our performance, including the presentation of adjusted net income, net interest income and net interest margin on a fully tax-equivalent basis, and our efficiency ratio calculations on a tax-equivalent basis. The net interest margin on a fully tax-equivalent basis is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Consistent with industry practice, management has disclosed the efficiency ratio including and excluding certain items, which is discussed in the efficiency ratio presentation on page 13.
4
Financial Highlights
Quarters Ended
(Dollars in thousands - unaudited)
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Balance sheet summary
Total assets
$
6,870,305
$
6,849,221
$
6,902,675
$
6,991,754
$
5,701,294
Total securities available-for-sale
1,040,760
1,115,443
1,090,523
1,157,480
1,177,688
Total loans
5,245,870
5,185,237
5,252,131
5,264,505
3,998,667
Total deposits
5,444,688
5,564,999
5,596,069
5,760,250
4,798,439
Total liabilities
5,967,494
5,955,924
6,005,907
6,125,069
4,982,645
Total equity
902,811
893,297
896,768
866,685
718,649
Total tangible assets
$
6,719,760
$
6,697,509
$
6,749,787
$
6,836,565
$
5,588,090
Total tangible equity
752,266
741,585
743,880
711,496
605,445
Income statement summary
Net interest income
$
83,329
$
81,144
$
83,051
$
82,775
$
64,234
Provision for credit losses
7,500
9,500
3,000
19,653
2,500
Noninterest income
13,261
12,630
12,154
13,109
10,898
Noninterest expense
51,252
50,210
52,935
63,163
43,419
Net income
28,179
25,585
28,787
9,871
21,822
Effective tax rate
25.53
%
24.89
%
26.69
%
24.46
%
25.30
%
Profitability ratios
Return on average assets (ROAA)
1.65
%
1.51
%
1.64
%
0.56
%
1.53
%
Return on average equity (ROAE)
12.57
11.43
12.92
4.61
12.39
Net interest margin (tax-equivalent) 1
5.23
5.14
5.09
5.05
4.85
Efficiency ratio
51.72
52.40
53.98
64.46
55.99
Return on average tangible common equity (ROATCE) 1
15.58
14.20
16.15
6.16
15.29
Tangible common equity to tangible assets (TCE/TA) 1
11.19
11.07
11.02
10.41
10.83
Per share data
Diluted earnings per share
$
0.54
$
0.48
$
0.54
$
0.18
$
0.48
Tangible book value per share
14.77
14.35
14.12
13.51
13.44
Company capital ratios 2
Common equity tier 1 capital ratio
13.28
%
13.13
%
12.99
%
12.44
%
13.77
%
Tier 1 risk-based capital ratio
13.70
13.55
13.41
12.85
14.31
Total risk-based capital ratio
15.26
15.64
15.46
15.10
16.55
Tier 1 leverage ratio
12.05
11.88
11.70
11.21
11.83
Bank capital ratios 2, 3
Common equity tier 1 capital ratio
13.72
%
13.80
%
13.17
%
13.14
%
14.02
%
Tier 1 risk-based capital ratio
13.72
13.80
13.17
13.14
14.02
Total risk-based capital ratio
14.77
14.88
14.22
14.39
14.99
Tier 1 leverage ratio
12.05
12.09
11.49
11.45
11.59
1 See the discussion entitled “Non-GAAP Presentations” above and the table on pages 12 and 14 that provide a reconciliation of this non-GAAP financial measure to the most comparable GAAP equivalent.
2 Both the Company and the Bank ratios are inclusive of a capital conservation buffer of 2.50%, and both are subject to the minimum capital adequacy guidelines of 7.00%, 8.50%, 10.50%, and 4.00% for the Common equity tier 1, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios, respectively.
3 The prompt corrective action provisions are applicable only at the Bank level, and are 6.50%, 8.00%, 10.00%, and 5.00% for the Common equity tier 1, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios, respectively.
5
Old Second Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands - unaudited)
Quarters Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Assets
Cash and due from banks
$
47,964
$
48,100
$
51,665
$
53,099
$
63,484
Interest earning deposits with financial institutions
95,369
67,627
72,360
63,426
78,283
Cash and cash equivalents
143,333
115,727
124,025
116,525
141,767
Securities available-for-sale, at fair value
1,040,760
1,115,443
1,090,523
1,157,480
1,177,688
Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock
40,125
31,350
32,025
28,282
19,087
Loans held-for-sale
2,349
4,344
3,645
1,463
3,235
Loans
5,245,870
5,185,237
5,252,131
5,264,505
3,998,667
Less: allowance for credit losses on loans
70,380
72,126
72,301
75,037
42,990
Net loans
5,175,490
5,113,111
5,179,830
5,189,468
3,955,677
Premises and equipment, net
84,505
85,634
86,645
87,714
85,702
Other real estate owned, net
622
632
1,427
6,416
6,486
Mortgage servicing rights, at fair value
9,825
9,579
9,459
9,549
9,680
Goodwill
129,196
129,196
129,196
130,262
93,232
Core deposit intangible ("CDI")
21,349
22,516
23,692
24,927
19,972
Bank-owned life insurance (“BOLI”)
133,493
131,563
130,481
129,057
114,399
Deferred tax assets, net
28,689
31,321
31,276
33,374
20,395
Other assets
60,569
58,805
60,451
77,237
53,974
Total assets
$
6,870,305
$
6,849,221
$
6,902,675
$
6,991,754
$
5,701,294
Liabilities
Deposits:
Noninterest bearing demand
$
1,746,755
$
1,755,548
$
1,739,117
$
1,738,028
$
1,704,083
Interest bearing:
Savings, NOW, and money market
2,771,532
2,795,038
2,745,540
2,763,990
2,400,235
Time
926,401
1,014,413
1,111,412
1,258,232
694,121
Total deposits
5,444,688
5,564,999
5,596,069
5,760,250
4,798,439
Securities sold under repurchase agreements
23,241
23,130
23,769
24,290
47,252
Other short-term borrowings
375,000
200,000
215,000
165,000
-
Junior subordinated debentures
25,774
25,774
25,774
25,774
25,774
Subordinated debentures
29,798
59,574
59,552
59,531
59,510
Notes payable and other borrowings
14,850
14,837
14,825
14,812
-
Other liabilities
54,143
67,610
70,918
75,412
51,670
Total liabilities
5,967,494
5,955,924
6,005,907
6,125,069
4,982,645
Stockholders’ Equity
Common stock
53,015
53,015
53,015
53,015
45,094
Additional paid-in capital
339,616
338,418
341,451
340,108
206,207
Retained earnings
583,701
559,129
537,231
512,131
505,419
Accumulated other comprehensive loss, net
(31,861)
(31,095)
(28,738)
(32,294)
(37,426)
Treasury stock
(41,660)
(26,170)
(6,191)
(6,275)
(645)
Total stockholders’ equity
902,811
893,297
896,768
866,685
718,649
Total liabilities and stockholders’ equity
$
6,870,305
$
6,849,221
$
6,902,675
$
6,991,754
$
5,701,294
6
Old Second Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except share data - unaudited)
Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Interest and dividend income
Loans, including fees
$
89,845
$
87,138
$
90,925
$
91,301
$
61,954
Loans held-for-sale
62
43
35
31
39
Securities:
Taxable
9,088
8,949
9,136
9,872
9,959
Tax exempt
1,132
1,155
1,219
1,235
1,229
Dividends from FHLBC and FRBC stock
535
512
390
381
273
Interest bearing deposits with financial institutions
527
549
598
1,255
1,784
Total interest and dividend income
101,189
98,346
102,303
104,075
75,238
Interest expense
Savings, NOW, and money market deposits
7,512
7,147
7,906
9,043
5,606
Time deposits
6,199
7,217
8,665
10,896
4,508
Securities sold under repurchase agreements
40
50
45
60
56
Other short-term borrowings
2,989
1,791
1,644
308
-
Junior subordinated debentures
289
296
288
288
288
Subordinated debentures
675
546
546
547
546
Notes payable and other borrowings
156
155
158
158
-
Total interest expense
17,860
17,202
19,252
21,300
11,004
Net interest and dividend income
83,329
81,144
83,051
82,775
64,234
Provision for credit losses
7,500
9,500
3,000
19,653
2,500
Net interest and dividend income after provision for credit losses
75,829
71,644
80,051
63,122
61,734
Noninterest income 1
Wealth management
3,628
3,383
3,537
3,515
3,103
Service charges on deposits
3,075
3,130
3,125
3,202
3,060
Secondary mortgage fees
166
121
123
92
84
Mortgage servicing rights mark to market loss
(152)
(152)
(428)
(389)
(531)
Mortgage servicing income
464
497
444
469
472
Net gain on sales of mortgage loans
640
555
657
620
550
Securities gains (losses), net
-
-
8
(1)
-
Change in cash surrender value of BOLI
1,469
1,082
834
1,175
690
Death benefit realized on BOLI
-
-
-
430
-
Card related income
2,483
2,350
2,548
2,581
2,533
Other income
1,488
1,664
1,306
1,415
937
Total noninterest income
13,261
12,630
12,154
13,109
10,898
Noninterest expense 1
Salaries and employee benefits
30,103
29,673
30,996
39,723
26,950
Occupancy, furniture and equipment
5,118
5,371
5,092
4,937
4,477
Computer and data processing
3,217
3,375
4,798
4,002
2,692
FDIC insurance
759
759
720
854
642
Net teller & bill paying
724
716
701
691
670
General bank insurance
351
353
354
437
328
Amortization of core deposit intangible
1,167
1,176
1,235
1,251
1,022
Advertising and marketing expense
483
551
437
650
454
Card related expense
1,604
1,519
1,652
1,708
1,489
Professional fees
1,160
1,299
1,265
3,145
1,158
Consumer credit expense
1,720
1,522
1,451
1,368
15
Other real estate expense, net
52
(186)
81
128
35
Other expense
4,794
4,082
4,153
4,269
3,487
Total noninterest expense
51,252
50,210
52,935
63,163
43,419
Income before income taxes
37,838
34,064
39,270
13,068
29,213
Provision for income taxes
9,659
8,479
10,483
3,197
7,391
Net income
$
28,179
$
25,585
$
28,787
$
9,871
$
21,822
Basic earnings per share
$
0.55
$
0.49
$
0.55
$
0.19
$
0.49
Diluted earnings per share
0.54
0.48
0.54
0.18
0.48
Dividends declared per share
0.07
0.07
0.07
0.06
0.06
Ending common shares outstanding
50,938,962
51,665,660
52,669,224
52,664,535
45,056,183
Weighted-average basic shares outstanding
51,250,245
52,450,306
52,667,899
52,686,391
45,053,650
Weighted-average diluted shares outstanding
52,120,337
53,303,072
53,480,431
53,509,690
45,839,465
1 Certain items in prior periods have been reclassified to conform to the current presentation.
7
Analysis of Average Balances,
Tax Equivalent Income / Expense and Rates
(Dollars in thousands - unaudited)
Quarters Ended
June 30, 2026
March 31, 2026
June 30, 2025
Average
Income /
Rate
Average
Income /
Rate
Average
Income /
Rate
Balance
Expense
%
Balance
Expense
%
Balance
Expense
%
Assets
Interest earning deposits with financial institutions
$
64,839
$
527
3.26
$
67,571
$
549
3.30
$
166,366
$
1,784
4.30
Securities:
Taxable
955,176
9,088
3.82
969,194
8,949
3.74
1,040,472
9,959
3.84
Non-taxable (TE)1
140,876
1,433
4.08
146,299
1,462
4.05
149,651
1,556
4.17
Total securities (TE)1
1,096,052
10,521
3.85
1,115,493
10,411
3.79
1,190,123
11,515
3.88
FHLBC and FRBC Stock
36,676
535
5.85
31,540
512
6.58
19,200
273
5.70
Loans and loans held-for-sale1, 2
5,223,093
89,921
6.91
5,207,744
87,194
6.79
3,960,650
62,002
6.28
Total interest earning assets
6,420,660
101,504
6.34
6,422,348
98,666
6.23
5,336,339
75,574
5.68
Cash and due from banks
46,700
-
-
48,252
-
-
47,875
-
-
Allowance for credit losses on loans
(72,418)
-
-
(71,869)
-
-
(41,544)
-
-
Other noninterest earning assets
457,995
-
-
460,433
-
-
394,034
-
-
Total assets
$
6,852,937
$
6,859,164
$
5,736,704
Liabilities and Stockholders' Equity
NOW accounts
$
717,468
$
897
0.50
$
697,692
$
823
0.48
$
653,334
$
681
0.42
Money market accounts
948,319
4,400
1.86
946,075
4,148
1.78
832,777
3,920
1.89
Savings accounts
1,109,381
2,215
0.80
1,118,979
2,176
0.79
938,836
1,005
0.43
Time deposits
968,464
6,199
2.57
1,062,623
7,217
2.75
695,946
4,508
2.60
Interest bearing deposits
3,743,632
13,711
1.47
3,825,369
14,364
1.52
3,120,893
10,114
1.30
Securities sold under repurchase agreements
21,337
40
0.75
24,795
50
0.82
35,419
56
0.63
Other short-term borrowings
312,803
2,989
3.83
189,056
1,791
3.84
-
-
-
Junior subordinated debentures
25,774
289
4.50
25,774
296
4.66
25,773
288
4.48
Subordinated debentures
34,373
675
7.88
59,564
546
3.72
59,500
546
3.68
Notes payable and other borrowings
14,844
156
4.22
14,831
155
4.24
-
-
-
Total interest bearing liabilities
4,152,763
17,860
1.73
4,139,389
17,202
1.69
3,241,585
11,004
1.36
Noninterest bearing deposits
1,745,475
-
-
1,738,504
-
-
1,729,287
-
-
Other liabilities
55,582
-
-
73,284
-
-
59,578
-
-
Stockholders' equity
899,117
-
-
907,987
-
-
706,254
-
-
Total liabilities and stockholders' equity
$
6,852,937
$
6,859,164
$
5,736,704
Net interest income (GAAP)
$
83,329
$
81,144
$
64,234
Net interest margin (GAAP)
5.21
5.12
4.83
Net interest income (TE)1
$
83,644
$
81,464
$
64,570
Net interest margin (TE)1
5.23
5.14
4.85
Interest bearing liabilities to earning assets
64.68
%
64.45
%
60.75
%
1 Tax equivalent (TE) basis is calculated using a marginal tax rate of 21% in 2026 and 2025. See the discussion entitled “Non-GAAP Presentations” above and the tables beginning on page 12 that provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
2 Interest income from loans is shown on a TE basis, which is a non-GAAP financial measure as discussed in the table on page 12, and includes loan fee income of $2.0 million for the second quarter of 2026, loan fee income of $1.9 million for the first quarter of 2026, and loan fee income of $366,000 for the second quarter of 2025. Nonaccrual loans are included in the above stated average balances.
8
Loans and Credit Quality
Loans
Quarters Ended
(Dollars in thousands)
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Commercial
$
913,527
$
845,278
$
842,130
$
786,095
$
718,927
Leases
537,197
539,116
548,256
550,201
524,513
Commercial real estate – investor
1,159,168
1,169,318
1,212,384
1,257,328
1,118,782
Commercial real estate – owner occupied
667,645
702,986
706,567
680,412
652,449
Construction
153,553
143,563
173,630
176,387
251,692
Residential real estate – investor
65,133
69,763
70,225
69,362
50,976
Residential real estate – owner occupied
242,768
239,711
230,432
231,547
220,672
Multifamily
363,352
357,131
339,131
378,213
333,787
HELOC
239,307
235,637
235,293
234,885
111,265
Powersport
683,939
674,116
696,959
715,498
-
Other1
220,281
208,618
197,124
184,577
15,604
Total loans
$
5,245,870
$
5,185,237
$
5,252,131
$
5,264,505
$
3,998,667
1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts.
Nonperforming assets
Quarters Ended
(Dollars in thousands)
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Nonaccrual loans
$
53,747
$
62,636
$
47,952
$
34,126
$
31,902
Loans past due 90 days or more and still accruing interest
2,736
12,868
4,879
13,859
345
Total nonperforming loans
56,483
75,504
52,831
47,985
32,247
Other real estate owned
622
632
1,427
6,416
6,486
Repossessed assets 1
819
858
1,363
2,088
234
Total nonperforming assets
$
57,924
$
76,994
$
55,621
$
56,489
$
38,967
30-89 days past due loans and still accruing interest
$
22,499
$
50,036
$
52,169
$
22,415
$
14,652
Nonaccrual loans to total loans
1.02
%
1.21
%
0.91
%
0.65
%
0.80
%
Nonperforming loans to total loans
1.08
%
1.46
%
1.01
%
0.91
%
0.81
%
Nonperforming assets to total loans plus OREO and repossessed assets
1.10
%
1.48
%
1.06
%
1.07
%
0.97
%
Purchased credit-deteriorated loans to total loans
1.19
%
1.35
%
1.50
%
1.61
%
0.23
%
Allowance for credit losses
$
70,380
$
72,126
$
72,301
$
75,037
$
42,990
Allowance for credit losses to total loans
1.34
%
1.39
%
1.38
%
1.43
%
1.08
%
Allowance for credit losses to nonaccrual loans
130.95
%
115.15
%
150.78
%
219.88
%
134.76
%
1 Repossessed assets are reported in other assets.
9
The following table shows classified loans by segment, which include nonaccrual loans, purchased credit deteriorated (“PCD”) loans if the risk rating so indicates, and all other loans considered substandard, for the following periods.
Classified loans
Quarters Ended
(Dollars in thousands)
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Commercial
$
39,646
$
50,640
$
51,587
$
50,680
$
23,354
Leases
2,930
2,604
2,428
1,277
1,346
Commercial real estate – investor
11,262
14,959
14,245
2,853
14,752
Commercial real estate – owner occupied
58,582
60,594
64,081
72,020
51,335
Construction
12,976
12,983
11,421
1,612
1,624
Residential real estate – investor
662
1,012
1,142
1,228
1,201
Residential real estate – owner occupied
2,076
1,886
1,897
1,839
1,707
Multifamily
1,197
1,489
1,494
1,183
1,099
HELOC
2,250
1,832
1,466
1,538
1,180
Powersport
198
204
68
-
-
Other1
318
369
270
30
22
Total classified loans
$
132,097
$
148,572
$
150,099
$
134,260
$
97,620
1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts.
Loan charge–offs, net of recoveries
Quarters Ended
(Dollars in thousands)
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Commercial
$
2,983
$
1,298
$
(44)
$
385
$
1,093
Leases
344
197
15
848
(3)
Commercial real estate – Investor
2,804
3,919
(14)
(15)
(14)
Commercial real estate – Owner occupied
(1)
(5)
1,125
(2)
(1)
Construction
-
-
-
(46)
(337)
Residential real estate – Investor
(1)
(2)
(1)
(2)
(2)
Residential real estate – Owner occupied
(21)
(7)
(11)
(7)
(8)
Multifamily
-
-
-
181
-
HELOC
(14)
(6)
(49)
(19)
(10)
Powersport
2,826
3,894
4,466
2,980
-
Other 1
328
488
494
805
67
Net charge–offs / (recoveries)
$
9,248
$
9,776
$
5,981
$
5,108
$
785
1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts.
10
Old Second Bancorp, Inc. and Subsidiaries
Quarterly Consolidated Average Balance
(In thousands - unaudited)
Quarters Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Assets
Cash and due from banks
$
46,700
$
48,252
$
52,040
$
51,357
$
47,875
Interest earning deposits with financial institutions
64,839
67,571
66,430
119,619
166,366
Cash and cash equivalents
111,539
115,823
118,470
170,976
214,241
Securities available-for-sale, at fair value
1,096,052
1,115,493
1,129,633
1,165,900
1,190,123
Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock
36,676
31,540
30,085
25,961
19,200
Loans held-for-sale
3,280
2,023
3,254
1,975
2,375
Loans
5,219,813
5,205,721
5,275,389
5,215,374
3,958,275
Less: allowance for credit losses on loans
72,418
71,869
73,718
72,354
41,544
Net loans
5,147,395
5,133,852
5,201,671
5,143,020
3,916,731
Premises and equipment, net
85,395
86,260
87,449
88,304
87,081
Other real estate owned, net
626
853
4,410
6,464
2,099
Mortgage servicing rights, at fair value
9,693
9,383
9,490
9,632
9,856
Goodwill
129,196
129,196
130,135
127,873
93,232
Core deposit intangible ("CDI")
21,916
23,073
24,281
25,539
20,462
Bank-owned life insurance (“BOLI”)
132,046
130,930
130,151
128,870
113,326
Deferred tax assets, net
31,296
30,342
32,705
30,375
23,549
Other assets
47,827
50,396
58,443
74,364
44,429
Total assets
$
6,852,937
$
6,859,164
$
6,960,177
$
6,999,253
$
5,736,704
Liabilities
Deposits:
Noninterest bearing demand
$
1,745,475
$
1,738,504
$
1,781,374
$
1,782,193
$
1,729,287
Interest bearing:
Savings, NOW, and money market
2,775,168
2,762,746
2,764,609
2,798,414
2,424,947
Time
968,464
1,062,623
1,179,966
1,347,455
695,946
Total deposits
5,489,107
5,563,873
5,725,949
5,928,062
4,850,180
Securities sold under repurchase agreements
21,337
24,795
23,464
33,382
35,419
Other short-term borrowings
312,803
189,056
159,565
25,978
-
Junior subordinated debentures
25,774
25,774
25,774
25,774
25,773
Subordinated debentures
34,373
59,564
59,542
59,521
59,500
Notes payable and other borrowings
14,844
14,831
14,819
14,806
-
Other liabilities
55,582
73,284
67,078
61,732
59,578
Total liabilities
5,953,820
5,951,177
6,076,191
6,149,255
5,030,450
Stockholders’ Equity
Common stock
53,015
53,015
53,015
53,015
45,094
Additional paid-in capital
339,145
340,459
340,870
339,612
205,706
Retained earnings
573,158
551,491
526,910
500,075
497,224
Accumulated other comprehensive loss, net
(31,113)
(26,361)
(30,594)
(36,823)
(41,080)
Treasury stock
(35,088)
(10,617)
(6,215)
(5,881)
(690)
Total stockholders’ equity
899,117
907,987
883,986
849,998
706,254
Total liabilities and stockholders’ equity
$
6,852,937
$
6,859,164
$
6,960,177
$
6,999,253
$
5,736,704
Total Earning Assets
$
6,420,660
$
6,422,348
$
6,504,791
$
6,528,829
$
5,336,339
Total Interest Bearing Liabilities
4,152,763
4,139,389
4,227,739
4,305,330
3,241,585
11
Reconciliation of Non-GAAP Financial Measures
The tables below provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure for the periods indicated. Dollar amounts below in thousands:
Net Income and Earnings Per Share - GAAP and Adjusted
Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Income before income taxes (GAAP)
$
37,838
$
34,064
$
39,270
$
13,068
$
29,213
Pre-tax income adjustments:
Provision for credit losses - Day Two
-
-
-
13,153
-
Securities (gains) losses, net
-
-
(8)
1
-
Death benefit related to BOLI
-
-
-
(430)
-
MSR losses
152
152
428
389
531
Acquisition related costs, net of (gains) losses on branch sales
526
349
2,296
11,508
810
Adjusted net income before taxes
38,516
34,565
41,986
37,689
30,554
Taxes on adjusted net income
9,832
8,604
11,208
9,326
7,730
Adjusted net income (non-GAAP)
$
28,684
$
25,961
$
30,778
$
28,363
$
22,824
Basic earnings per share (GAAP)
$
0.55
$
0.49
$
0.55
$
0.19
$
0.49
Diluted earnings per share (GAAP)
0.54
0.48
0.54
0.18
0.48
Adjusted basic earnings per share (non-GAAP)
0.56
0.49
0.59
0.54
0.50
Adjusted diluted earnings per share (non-GAAP)
0.55
0.49
0.58
0.53
0.50
Total average assets
6,852,937
6,859,164
6,960,177
6,999,253
5,736,704
Return on average assets (GAAP)
1.65
%
1.51
%
1.64
%
0.56
%
1.53
%
Adjusted return on average assets (non-GAAP)
1.68
1.53
1.75
1.61
1.60
Quarters Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Net Interest Margin
Interest income (GAAP)
$
101,189
$
98,346
$
102,303
$
104,075
$
75,238
Taxable-equivalent adjustment:
Loans
14
13
9
10
9
Securities
301
307
324
328
327
Interest income (TE)
101,504
98,666
102,636
104,413
75,574
Interest expense (GAAP)
17,860
17,202
19,252
21,300
11,004
Net interest income (TE)
$
83,644
$
81,464
$
83,384
$
83,113
$
64,570
Net interest income (GAAP)
$
83,329
$
81,144
$
83,051
$
82,775
$
64,234
Average interest earning assets
$
6,420,660
$
6,422,348
$
6,504,791
$
6,528,829
$
5,336,339
Net interest margin (GAAP)
5.21
%
5.12
%
5.07
%
5.03
%
4.83
%
Net interest margin (TE)
5.23
%
5.14
%
5.09
%
5.05
%
4.85
%
12
GAAP
Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
2026
2026
2025
2025
2025
Efficiency Ratio (GAAP)
Noninterest expense
$
51,252
$
50,210
$
52,935
$
63,163
$
43,419
Less amortization of core deposit
1,167
1,176
1,235
1,251
1,022
Less other real estate expense, net
52
(186)
81
128
35
Less acquisition related costs, net of losses (gains) on branch sales
N/A
N/A
N/A
N/A
N/A
Noninterest expense less adjustments
$
50,033
$
49,220
$
51,619
$
61,784
$
42,362
Net interest income
$
83,329
$
81,144
$
83,051
$
82,775
$
64,234
Taxable-equivalent adjustment:
Loans
N/A
N/A
N/A
N/A
N/A
Securities
N/A
N/A
N/A
N/A
N/A
Net interest income including adjustments
83,329
81,144
83,051
82,775
64,234
Noninterest income
13,261
12,630
12,154
13,109
10,898
Less death benefit related to BOLI
-
-
-
430
-
Less securities gains (losses)
-
-
8
(1)
-
Less MSRs mark to market (losses) gains
(152)
(152)
(428)
(389)
(531)
Taxable-equivalent adjustment:
Change in cash surrender value of BOLI
N/A
N/A
N/A
N/A
N/A
Noninterest income including adjustments
13,413
12,782
12,574
13,069
11,429
Net interest income including adjustments plus noninterest income including adjustments
$
96,742
$
93,926
$
95,625
$
95,844
$
75,663
Efficiency ratio (GAAP)
51.72
%
52.40
%
53.98
%
64.46
%
55.99
%
N/A - Not applicable.
Non-GAAP
Three Months Ended
June 30,
March 31,
December 31,