{"success":true,"data":{"pressRelease":{"id":"5563","rtpr_id":"nACSJWh4pa","ticker":"OSBC","exchange":"NASDAQ","all_tickers":["OSBC"],"title":"Old Second Bancorp, Inc. Reports First Quarter 2026 Net Income of $25.6 Million, or $0.48 per Diluted Share","author":"ACCESSWIRE","published_at":"2026-04-22T20:35:45.083Z","article_body":"AURORA, IL / ACCESS Newswire (https://www.accessnewswire.com/) / April 22,\n2026 / Old Second Bancorp, Inc. (the \"Company,\" \"Old Second,\" \"we,\" \"us,\" and\n\"our\") (NASDAQ:OSBC), the parent company of Old Second National Bank (the\n\"Bank\"), today announced financial results for the first quarter of 2026. Our\nnet income was $25.6 million, or $0.48 per diluted share, for the first\nquarter of 2026, compared to net income of $28.8 million, or $0.54 per diluted\nshare, for the fourth quarter of 2025. Adjusted net income(1) was $26.0\nmillion, or adjusted diluted earnings per share(1) of $0.49, for the first\nquarter of 2026, compared to adjusted net income(1) of $30.8 million, or\nadjusted diluted earnings per share(1) of $0.58, for the fourth quarter of\n2025.\n\nNotable Items(2)\n*\nNet interest and dividend income was $81.1 million, reflecting a decrease of\n$1.9 million, or 2.30%.\n*\nNet interest margin (NIM) on a fully tax-equivalent basis(1) was 5.14%, an\nincrease of 5 basis points.\n*\nProvision for credit losses of $9.5 million compared to $3.0 million.\n*\nNoninterest income was $12.6 million, an increase of $476,000, or 3.92%,\ncompared to $12.2 million.\n*\nNoninterest expense was $50.2 million, a decrease of $2.7 million, or 5.15%,\ncompared to $52.9 million.\n*\nEfficiency ratio improved 158 basis points to 52.40%; adjusted efficiency\nratio was 51.70%(1).\n*\nProvision for income tax of $8.5 million, compared to $10.5 million with an\neffective tax rate of 24.89% and 26.69%, respectively.\n*\nReturn on average assets of 1.51%, compared to 1.64%.\n*\nReturn on tangible common equity (ROATCE)(1) of 14.20%; adjusted ROATCE(1) of\n14.41%.\n*\nOn April 15, 2026, we paid down $30 million of the total $60 million\nsubordinated debt outstanding and due in 2031.\n*\nOn April 21, 2026, our Board of Directors declared a cash dividend of $0.07\nper share of common stock, payable on May 11, 2026, to stockholders of record\nas of May 1, 2026.\n\nChairman, President and Chief Executive Officer Jim Eccher said \"Old Second\nreported strong results in the first quarter of 2026 led by exceptional margin\nperformance and disciplined operating efficiency. Tangible book value per\nshare increased by 1.63% on a linked quarter basis despite the reduction to\nequity from our stock repurchases of $23.1 million, or 1.2 million shares,\nduring the quarter. Nonperforming assets increased due to a few larger\nrelationships, but we believe we are adequately reserved for any future losses\nwith an Allowance for Credit Losses on loans (\"ACL\") to total loans of 1.39%\nand ACL to nonperforming loans of 95.53%. Credit deterioration in the first\nquarter largely resulted from one downtown Chicago office credit and one\ncash-flow-dependent commercial relationship. Otherwise results remain solid\nwith first quarter return on average assets and return on average common\nequity of 1.51% and 11.43%, respectively. The tax equivalent net interest\nmargin expanded to 5.14% and the efficiency ratio was a very healthy 52.40%.\nThis strong bottom-line performance and a well-positioned balance sheet drove\nan increase in the tangible common equity capital ratio to 11.07% from 11.02%\nfor the prior linked period. We are proud of our performance from both a\nbottom-line perspective and in positioning ourselves to deliver better results\nto our stockholders over the remainder of the year.\"\n\nResults of Operations:\n\nOur net income was $25.6 million, or $0.48 per diluted share, for the first\nquarter of 2026, compared to net income of $28.8 million, or $0.54 per diluted\nshare.\n\nLoans declined $66.9 million driven by decreases in commercial real estate,\nconstruction, and powersport.\n*\nTotal loans were $5.19 billion.\n*\nAverage loans (including loans held-for-sale) for the first quarter of 2026\ntotaled $5.21 billion, reflecting a decrease of $70.9 million.\n*\nYield on loans, including loans held for sale, declined 5 basis points.\n\nCredit Quality key performance metrics were impacted by a few larger credits.\n*\nNonperforming loans totaled $75.5 million compared to $52.8 million. The\nincrease of $22.7 million was partially driven by $9.8 million of loans past\ndue greater than 90 days, still accruing, which are in the process of renewal.\n*\nNonperforming loans to total loans was 1.46% compared to 1.01%.\n*\nClassified loans totaled $148.6 million compared to $150.1 million.\n*\nCriticized loans (special mention, substandard and doubtful) to total loans\nwas 3.64% compared to 3.12%. The quarter-over-quarter increase is driven by an\nincrease of $26.4 million in special mention loans, an increase of $14.7\nmillion of nonaccrual loans driven by one large commercial relationship,\npartially offset by a decrease of $16.2 million in substandard accruing.\n*\nProvision for credit losses of $9.5 million was driven by powersport\ncharge-offs, and larger than normal charge-offs in commercial and commercial\nreal estate; the non-powersport charge-offs were primarily isolated to two\nloan relationships.\n\nDeposits experienced seasonal declines in savings as well as declines in time\ndeposits as higher rate brokered deposits and other exception-priced time\ndeposits assumed from Bancorp Financial, Inc. rolled off.\n*\nTotal deposits were $5.56 billion, a decrease of $31.1 million, or 0.56%.\n*\nCost of deposits decreased 10 basis points to 1.05%.\n*\nAverage interest-bearing deposits and non-interest bearing deposits decreased\n$119.2 million and $42.9 million, respectively.\n\nNet Interest Margin continued to be strong, and declines in the cost of funds\noutweighed softer yields during the quarter.\n*\nNet interest margin on a fully tax-equivalent basis improved 5 basis points.\n*\nLoan yields declined 5 basis points on lower average balances while investment\nyields increased 4 basis points driven on higher yield outpacing the decline\nin balance.\n*\nCost of funds declined 8 basis points driven by lower cost of deposits,\nspecifically a 10-basis point decline on the cost of savings accounts, an\n11-basis point decline in the cost of money markets, and a 16-basis point\ndecline in the cost of time deposits.\n\nNoninterest Income increased $476,000, or 3.92%, in the first quarter of 2026,\nexcluding mark to market losses on MSR and changes in BOLI cash surrender\nvalues, the change was nominal.\n*\nCard related income declined in the period due to a reduction in debit card\nrelated fees based on seasonally lower transaction volume.\n*\nOther income growth in the period was driven by an increase in powersport\nrelated loan servicing fees and dealer charge-back income.\n\nNoninterest Expense decreased $2.7 million or 5.15%.\n*\n$1.3 million decrease in salaries and employee benefits, driven by declines to\nsalaries, officer incentive accruals, and insurance premiums, partially offset\nby increases in payroll taxes and 401K company match on 2025 incentive\npayments paid in 2026.\n*\n$1.4 million decrease in computer and data processing due to prior quarter\nacquisition-related core conversion expenses.\n*\nEfficiency ratio for the quarter was 52.40% compared to 53.98% and the\nadjusted efficiency ratio(1) was 51.70% compared to 51.28%.\n\nCapital continued to grow due to strong net income.\n*\nStockholders' equity decreased $3.5 million partially comprised of $3.7\nmillion of dividends declared, a $20.0 million increase in treasury stock from\nshare repurchases, and an increase of $2.4 million in AOCI unrealized losses\non securities, partially offset by net income of $25.6 million.\n*\nShare repurchases of 1,175,859 shares at an average price paid per share of\n$19.63, for a total reduction to capital of $23.1 million.\n*\nROATCE(1) was 14.20% compared to 16.15%.\n*\nTangible common equity to tangible assets(1) was 11.07% compared to 11.02%.\n\nCautionary Note Regarding Forward-Looking Statements\n\nThis earnings release and statements by our management may contain\nforward-looking statements within the Private Securities Litigation Reform Act\nof 1995. Forward-looking statements can be identified by words such as\n\"should,\" \"anticipate,\" \"expect,\" \"estimate,\" \"intend,\" \"believe,\" \"may,\"\n\"likely,\" \"will,\" \"forecast,\" \"project,\" \"looking forward,\" \"optimistic,\"\n\"hopeful,\" \"potential,\" \"progress,\" \"prospect,\" \"remain,\" \"deliver,\"\n\"continue,\" \"trend,\" \"momentum,\" \"remainder,\" \"beyond,\" \"build,\" and \"near\" or\nother statements that indicate future events or expectations. Examples of\nforward-looking statements include, but are not limited to, statements\nregarding the economic outlook, balance sheet growth, and building capital.\nSuch forward-looking statements are subject to risks, uncertainties, and other\nfactors, which could cause actual results to differ materially from future\nresults expressed or implied by such forward-looking statements. The following\nfactors, among others, could cause actual results to differ materially from\nthe anticipated results or other expectations expressed in the forward-looking\nstatements:\n*\nthe strength of the United States economy in general and the strength of the\nlocal economies in which we conduct our operations may be different than\nexpected;\n*\nthe rate of delinquencies and amounts of charge-offs, the level of allowance\nfor credit loss, the rates of loan growth, or adverse changes in asset quality\nin our loan portfolio, which may result in increased credit risk-related\nlosses and expenses;\n*\nchanges in legislation, regulation, policies, or administrative practices,\nwhether by judicial, governmental, or legislative action;\n*\nrisks related to pending or future acquisitions, if any, including execution\nand integration risks;\n*\nadverse conditions in the stock market, the public debt market and other\ncapital markets (including changes in interest rate conditions) could have a\nnegative impact on us;\n*\nchanges in interest rates, which have and may continue to affect our deposit\nand funding costs, net income, prepayment penalty income, mortgage banking\nincome, and other future cash flows, or the market value of our assets,\nincluding our investment securities;\n*\nelevated inflation which causes adverse risk to the overall economy, and could\nindirectly pose challenges to our clients and to our business; and\n*\nthe adverse effects of events beyond our control that may have a destabilizing\neffect on financial markets and the economy, such as trade disputes, epidemics\nand pandemics, war or terrorist activities, essential utility outages,\ndeterioration in the global economy, instability in the credit markets,\ndisruptions in our customers' supply chains or disruption in transportation,\nand disruptions caused by widespread cybersecurity incidents.\n\nAdditional risks and uncertainties are contained in the \"Risk Factors\" and\nforward-looking statements disclosure in our most recent Annual Report on Form\n10-K, and Quarterly Reports on Form 10-Q. The inclusion of this\nforward-looking information should not be construed as a representation by us\nor any person that future events, plans, or expectations contemplated by us\nwill be achieved. We undertake no obligation to publicly update or revise any\nforward-looking statements, whether as a result of new information, future\nevents, or otherwise, except as required by law.\n\nConference Call\n\nWe will host a call on Thursday, April 23, 2026, at 10:00 a.m. Eastern Time\n(9:00 a.m. Central Time) to discuss our first quarter 2026 financial results.\nInvestors may listen to our earnings call via a live webcast by accessing the\nlink provided below, or alternatively, on the Events section of the Old Second\nInvestor Relations website (https://investors.oldsecond.com/events). Investors\nare encouraged to register at the webcast link at least 10 minutes prior to\nthe scheduled start of the call.\n\nWebcast URL: https://www.webcaster5.com/Webcast/Page/2239/53807\n\nA replay of the webcast will be available under the Events section of the Old\nSecond Investor Relations website (https://investors.oldsecond.com/events) for\nup to one year after the earnings call date.\n\nNon-GAAP Presentations\n\nManagement has disclosed in this earnings release certain non-GAAP financial\nmeasures to evaluate and measure our performance, including the presentation\nof adjusted net income, net interest income and net interest margin on a fully\ntax-equivalent basis, and our efficiency ratio calculations on a\ntax-equivalent basis. The net interest margin on a fully tax-equivalent basis\nis calculated by dividing net interest income on a tax equivalent basis by\naverage earning assets for the period. Consistent with industry practice,\nmanagement has disclosed the efficiency ratio including and excluding certain\nitems, which is discussed in the efficiency ratio presentation on page 13 of\nthe full earnings release found at www.oldsecond.com, under the Investor\nRelations tab.\n\nWe consider the use of select non-GAAP financial measures and ratios to be\nuseful for financial and operational decision-making and useful in evaluating\nperiod-to-period comparisons. We believe that these non-GAAP financial\nmeasures provide meaningful supplemental information regarding our performance\nby excluding certain expenditures or assets or by adjusting certain items that\nwe believe are not indicative of our primary business operating results or by\npresenting certain metrics on a fully tax-equivalent basis. We believe these\nmeasures provide investors with information regarding balance sheet\nprofitability, and we believe that management and investors benefit from\nreferring to these non-GAAP financial measures in assessing our performance\nand when planning, forecasting, analyzing, and comparing past, present and\nfuture periods.\n\nThese non-GAAP financial measures should not be considered as a substitute for\nGAAP financial measures, and we strongly encourage investors to review the\nGAAP financial measures included in this earnings release and not to place\nundue reliance upon any single financial measure. In addition, because\nnon-GAAP financial measures are not standardized, it may not be possible to\ncompare the non-GAAP financial measures presented in this earnings release\nwith other companies' non-GAAP financial measures having the same or similar\nnames. The tables beginning on page 12 of the full earnings release, found at\nwww.oldsecond.com, under the Investor Relations tab, provide a reconciliation\nof each non-GAAP financial measure to the most comparable GAAP equivalent.\n\nFinancial Highlights\n\n                                                           Quarters Ended                                                                                                           \n (Dollars in thousands - unaudited)                        March 31,               December 31,              September 30,             June 30,                March 31,            \n                                                           2026                    2025                      2025                      2025                    2025                 \n Balance sheet summary                                                                                                                                                              \n Total assets                                              $      6,849,221        $        6,902,675        $        6,991,754        $      5,701,294        $      5,727,686     \n Total securities available-for-sale                              1,115,443                 1,090,523                 1,157,480               1,177,688               1,146,721     \n Total loans                                                      5,185,237                 5,252,131                 5,264,505               3,998,667               3,940,232     \n Total deposits                                                   5,564,999                 5,596,069                 5,760,250               4,798,439               4,852,791     \n Total liabilities                                                5,955,924                 6,005,907                 6,125,069               4,982,645               5,033,195     \n Total equity                                                     893,297                   896,768                   866,685                 718,649                 694,491       \n                                                                                                                                                                                    \n Total tangible assets                                     $      6,697,509        $        6,749,787        $        6,836,565        $      5,588,090        $      5,613,460     \n Total tangible equity                                            741,585                   743,880                   711,496                 605,445                 580,265       \n                                                                                                                                                                                    \n Income statement summary                                                                                                                                                           \n Net interest income                                       $      81,144           $        83,051           $        82,775           $      64,234           $      62,904        \n Provision for credit losses                                      9,500                     3,000                     19,653                  2,500                   2,400         \n Noninterest income                                               12,630                    12,154                    13,109                  10,898                  10,201        \n Noninterest expense                                              50,210                    52,935                    63,163                  43,419                  44,505        \n Net income                                                       25,585                    28,787                    9,871                   21,822                  19,830        \n Effective tax rate                                               24.89      %              26.69      %              24.46      %            25.30      %            24.31      %  \n                                                                                                                                                                                    \n Profitability ratios                                                                                                                                                               \n Return on average assets (ROAA)                                  1.51       %              1.64       %              0.56       %            1.53       %            1.42       %  \n Return on average equity (ROAE)                                  11.43                     12.92                     4.61                    12.39                   11.76         \n Net interest margin (tax-equivalent) (1)                         5.14                      5.09                      5.05                    4.85                    4.88          \n Efficiency ratio                                                 52.40                     53.98                     64.46                   55.99                   56.46         \n Return on average tangible common equity (ROATCE) (1)            14.20                     16.15                     6.16                    15.29                   14.70         \n Tangible common equity to tangible assets (TCE/TA) (1)           11.07                     11.02                     10.41                   10.83                   10.34         \n                                                                                                                                                                                    \n Per share data                                                                                                                                                                     \n Diluted earnings per share                                $      0.48             $        0.54             $        0.18             $      0.48             $      0.43          \n Tangible book value per share                                    14.35                     14.12                     13.51                   13.44                   12.88         \n                                                                                                                                                                                    \n Company capital ratios (3)                                                                                                                                                         \n Common equity tier 1 capital ratio                               13.13      %              12.99      %              12.44      %            13.77      %            13.47      %  \n Tier 1 risk-based capital ratio                                  13.55                     13.41                     12.85                   14.31                   14.01         \n Total risk-based capital ratio                                   15.64                     15.46                     15.10                   16.55                   16.24         \n Tier 1 leverage ratio                                            11.88                     11.70                     11.21                   11.83                   11.58         \n                                                                                                                                                                                    \n Bank capital ratios (3, 4)                                                                                                                                                         \n Common equity tier 1 capital ratio                               13.80      %              13.17      %              13.14      %            14.02      %            13.64      %  \n Tier 1 risk-based capital ratio                                  13.80                     13.17                     13.14                   14.02                   13.64         \n Total risk-based capital ratio                                   14.88                     14.22                     14.39                   14.99                   14.58         \n Tier 1 leverage ratio                                            12.09                     11.49                     11.45                   11.59                   11.27         \n\n(1) See the discussion entitled \"Non-GAAP Presentations\" above and the full\nearnings release, found at www.oldsecond.com, under the Investor Relations\ntab, that provides a reconciliation of all non-GAAP financial measures to the\nmost comparable GAAP equivalents.\n\n(2) All comparisons throughout this release are on a linked-quarter basis,\nunless otherwise noted.\n\n(3) Both the Company and the Bank ratios are inclusive of a capital\nconservation buffer of 2.50%, and both are subject to the minimum capital\nadequacy guidelines of 7.00%, 8.50%, 10.50%, and 4.00% for the Common equity\ntier 1, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios,\nrespectively.\n\n(4) The prompt corrective action provisions are applicable only at the Bank\nlevel, and are 6.50%, 8.00%, 10.00%, and 5.00% for the Common equity tier 1,\nTier 1 risk-based, Total risk-based and Tier 1 leverage ratios, respectively.\n\n Contact:    Bradley S. Adams         \n             Chief Financial Officer  \n             (630) 906-5484           \n\nSOURCE: Old Second Bancorp Inc.\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/old-second-bancorp-inc.-reports-first-quarter-2026-net-income-of-25.-1159973)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nACSJWh4pa","title":"Old Second Bancorp, Inc. Reports First Quarter 2026 Net Income of $25.6 Million, or $0.48 per Diluted Share","author":"ACCESSWIRE","ticker":"OSBC","created":"2026-04-22T20:35:45.083Z","tickers":["OSBC"],"exchange":"NASDAQ","article_body":"AURORA, IL / ACCESS Newswire (https://www.accessnewswire.com/) / April 22,\n2026 / Old Second Bancorp, Inc. (the \"Company,\" \"Old Second,\" \"we,\" \"us,\" and\n\"our\") (NASDAQ:OSBC), the parent company of Old Second National Bank (the\n\"Bank\"), today announced financial results for the first quarter of 2026. Our\nnet income was $25.6 million, or $0.48 per diluted share, for the first\nquarter of 2026, compared to net income of $28.8 million, or $0.54 per diluted\nshare, for the fourth quarter of 2025. Adjusted net income(1) was $26.0\nmillion, or adjusted diluted earnings per share(1) of $0.49, for the first\nquarter of 2026, compared to adjusted net income(1) of $30.8 million, or\nadjusted diluted earnings per share(1) of $0.58, for the fourth quarter of\n2025.\n\nNotable Items(2)\n*\nNet interest and dividend income was $81.1 million, reflecting a decrease of\n$1.9 million, or 2.30%.\n*\nNet interest margin (NIM) on a fully tax-equivalent basis(1) was 5.14%, an\nincrease of 5 basis points.\n*\nProvision for credit losses of $9.5 million compared to $3.0 million.\n*\nNoninterest income was $12.6 million, an increase of $476,000, or 3.92%,\ncompared to $12.2 million.\n*\nNoninterest expense was $50.2 million, a decrease of $2.7 million, or 5.15%,\ncompared to $52.9 million.\n*\nEfficiency ratio improved 158 basis points to 52.40%; adjusted efficiency\nratio was 51.70%(1).\n*\nProvision for income tax of $8.5 million, compared to $10.5 million with an\neffective tax rate of 24.89% and 26.69%, respectively.\n*\nReturn on average assets of 1.51%, compared to 1.64%.\n*\nReturn on tangible common equity (ROATCE)(1) of 14.20%; adjusted ROATCE(1) of\n14.41%.\n*\nOn April 15, 2026, we paid down $30 million of the total $60 million\nsubordinated debt outstanding and due in 2031.\n*\nOn April 21, 2026, our Board of Directors declared a cash dividend of $0.07\nper share of common stock, payable on May 11, 2026, to stockholders of record\nas of May 1, 2026.\n\nChairman, President and Chief Executive Officer Jim Eccher said \"Old Second\nreported strong results in the first quarter of 2026 led by exceptional margin\nperformance and disciplined operating efficiency. Tangible book value per\nshare increased by 1.63% on a linked quarter basis despite the reduction to\nequity from our stock repurchases of $23.1 million, or 1.2 million shares,\nduring the quarter. Nonperforming assets increased due to a few larger\nrelationships, but we believe we are adequately reserved for any future losses\nwith an Allowance for Credit Losses on loans (\"ACL\") to total loans of 1.39%\nand ACL to nonperforming loans of 95.53%. Credit deterioration in the first\nquarter largely resulted from one downtown Chicago office credit and one\ncash-flow-dependent commercial relationship. Otherwise results remain solid\nwith first quarter return on average assets and return on average common\nequity of 1.51% and 11.43%, respectively. The tax equivalent net interest\nmargin expanded to 5.14% and the efficiency ratio was a very healthy 52.40%.\nThis strong bottom-line performance and a well-positioned balance sheet drove\nan increase in the tangible common equity capital ratio to 11.07% from 11.02%\nfor the prior linked period. We are proud of our performance from both a\nbottom-line perspective and in positioning ourselves to deliver better results\nto our stockholders over the remainder of the year.\"\n\nResults of Operations:\n\nOur net income was $25.6 million, or $0.48 per diluted share, for the first\nquarter of 2026, compared to net income of $28.8 million, or $0.54 per diluted\nshare.\n\nLoans declined $66.9 million driven by decreases in commercial real estate,\nconstruction, and powersport.\n*\nTotal loans were $5.19 billion.\n*\nAverage loans (including loans held-for-sale) for the first quarter of 2026\ntotaled $5.21 billion, reflecting a decrease of $70.9 million.\n*\nYield on loans, including loans held for sale, declined 5 basis points.\n\nCredit Quality key performance metrics were impacted by a few larger credits.\n*\nNonperforming loans totaled $75.5 million compared to $52.8 million. The\nincrease of $22.7 million was partially driven by $9.8 million of loans past\ndue greater than 90 days, still accruing, which are in the process of renewal.\n*\nNonperforming loans to total loans was 1.46% compared to 1.01%.\n*\nClassified loans totaled $148.6 million compared to $150.1 million.\n*\nCriticized loans (special mention, substandard and doubtful) to total loans\nwas 3.64% compared to 3.12%. The quarter-over-quarter increase is driven by an\nincrease of $26.4 million in special mention loans, an increase of $14.7\nmillion of nonaccrual loans driven by one large commercial relationship,\npartially offset by a decrease of $16.2 million in substandard accruing.\n*\nProvision for credit losses of $9.5 million was driven by powersport\ncharge-offs, and larger than normal charge-offs in commercial and commercial\nreal estate; the non-powersport charge-offs were primarily isolated to two\nloan relationships.\n\nDeposits experienced seasonal declines in savings as well as declines in time\ndeposits as higher rate brokered deposits and other exception-priced time\ndeposits assumed from Bancorp Financial, Inc. rolled off.\n*\nTotal deposits were $5.56 billion, a decrease of $31.1 million, or 0.56%.\n*\nCost of deposits decreased 10 basis points to 1.05%.\n*\nAverage interest-bearing deposits and non-interest bearing deposits decreased\n$119.2 million and $42.9 million, respectively.\n\nNet Interest Margin continued to be strong, and declines in the cost of funds\noutweighed softer yields during the quarter.\n*\nNet interest margin on a fully tax-equivalent basis improved 5 basis points.\n*\nLoan yields declined 5 basis points on lower average balances while investment\nyields increased 4 basis points driven on higher yield outpacing the decline\nin balance.\n*\nCost of funds declined 8 basis points driven by lower cost of deposits,\nspecifically a 10-basis point decline on the cost of savings accounts, an\n11-basis point decline in the cost of money markets, and a 16-basis point\ndecline in the cost of time deposits.\n\nNoninterest Income increased $476,000, or 3.92%, in the first quarter of 2026,\nexcluding mark to market losses on MSR and changes in BOLI cash surrender\nvalues, the change was nominal.\n*\nCard related income declined in the period due to a reduction in debit card\nrelated fees based on seasonally lower transaction volume.\n*\nOther income growth in the period was driven by an increase in powersport\nrelated loan servicing fees and dealer charge-back income.\n\nNoninterest Expense decreased $2.7 million or 5.15%.\n*\n$1.3 million decrease in salaries and employee benefits, driven by declines to\nsalaries, officer incentive accruals, and insurance premiums, partially offset\nby increases in payroll taxes and 401K company match on 2025 incentive\npayments paid in 2026.\n*\n$1.4 million decrease in computer and data processing due to prior quarter\nacquisition-related core conversion expenses.\n*\nEfficiency ratio for the quarter was 52.40% compared to 53.98% and the\nadjusted efficiency ratio(1) was 51.70% compared to 51.28%.\n\nCapital continued to grow due to strong net income.\n*\nStockholders' equity decreased $3.5 million partially comprised of $3.7\nmillion of dividends declared, a $20.0 million increase in treasury stock from\nshare repurchases, and an increase of $2.4 million in AOCI unrealized losses\non securities, partially offset by net income of $25.6 million.\n*\nShare repurchases of 1,175,859 shares at an average price paid per share of\n$19.63, for a total reduction to capital of $23.1 million.\n*\nROATCE(1) was 14.20% compared to 16.15%.\n*\nTangible common equity to tangible assets(1) was 11.07% compared to 11.02%.\n\nCautionary Note Regarding Forward-Looking Statements\n\nThis earnings release and statements by our management may contain\nforward-looking statements within the Private Securities Litigation Reform Act\nof 1995. Forward-looking statements can be identified by words such as\n\"should,\" \"anticipate,\" \"expect,\" \"estimate,\" \"intend,\" \"believe,\" \"may,\"\n\"likely,\" \"will,\" \"forecast,\" \"project,\" \"looking forward,\" \"optimistic,\"\n\"hopeful,\" \"potential,\" \"progress,\" \"prospect,\" \"remain,\" \"deliver,\"\n\"continue,\" \"trend,\" \"momentum,\" \"remainder,\" \"beyond,\" \"build,\" and \"near\" or\nother statements that indicate future events or expectations. Examples of\nforward-looking statements include, but are not limited to, statements\nregarding the economic outlook, balance sheet growth, and building capital.\nSuch forward-looking statements are subject to risks, uncertainties, and other\nfactors, which could cause actual results to differ materially from future\nresults expressed or implied by such forward-looking statements. The following\nfactors, among others, could cause actual results to differ materially from\nthe anticipated results or other expectations expressed in the forward-looking\nstatements:\n*\nthe strength of the United States economy in general and the strength of the\nlocal economies in which we conduct our operations may be different than\nexpected;\n*\nthe rate of delinquencies and amounts of charge-offs, the level of allowance\nfor credit loss, the rates of loan growth, or adverse changes in asset quality\nin our loan portfolio, which may result in increased credit risk-related\nlosses and expenses;\n*\nchanges in legislation, regulation, policies, or administrative practices,\nwhether by judicial, governmental, or legislative action;\n*\nrisks related to pending or future acquisitions, if any, including execution\nand integration risks;\n*\nadverse conditions in the stock market, the public debt market and other\ncapital markets (including changes in interest rate conditions) could have a\nnegative impact on us;\n*\nchanges in interest rates, which have and may continue to affect our deposit\nand funding costs, net income, prepayment penalty income, mortgage banking\nincome, and other future cash flows, or the market value of our assets,\nincluding our investment securities;\n*\nelevated inflation which causes adverse risk to the overall economy, and could\nindirectly pose challenges to our clients and to our business; and\n*\nthe adverse effects of events beyond our control that may have a destabilizing\neffect on financial markets and the economy, such as trade disputes, epidemics\nand pandemics, war or terrorist activities, essential utility outages,\ndeterioration in the global economy, instability in the credit markets,\ndisruptions in our customers' supply chains or disruption in transportation,\nand disruptions caused by widespread cybersecurity incidents.\n\nAdditional risks and uncertainties are contained in the \"Risk Factors\" and\nforward-looking statements disclosure in our most recent Annual Report on Form\n10-K, and Quarterly Reports on Form 10-Q. The inclusion of this\nforward-looking information should not be construed as a representation by us\nor any person that future events, plans, or expectations contemplated by us\nwill be achieved. We undertake no obligation to publicly update or revise any\nforward-looking statements, whether as a result of new information, future\nevents, or otherwise, except as required by law.\n\nConference Call\n\nWe will host a call on Thursday, April 23, 2026, at 10:00 a.m. Eastern Time\n(9:00 a.m. Central Time) to discuss our first quarter 2026 financial results.\nInvestors may listen to our earnings call via a live webcast by accessing the\nlink provided below, or alternatively, on the Events section of the Old Second\nInvestor Relations website (https://investors.oldsecond.com/events). Investors\nare encouraged to register at the webcast link at least 10 minutes prior to\nthe scheduled start of the call.\n\nWebcast URL: https://www.webcaster5.com/Webcast/Page/2239/53807\n\nA replay of the webcast will be available under the Events section of the Old\nSecond Investor Relations website (https://investors.oldsecond.com/events) for\nup to one year after the earnings call date.\n\nNon-GAAP Presentations\n\nManagement has disclosed in this earnings release certain non-GAAP financial\nmeasures to evaluate and measure our performance, including the presentation\nof adjusted net income, net interest income and net interest margin on a fully\ntax-equivalent basis, and our efficiency ratio calculations on a\ntax-equivalent basis. The net interest margin on a fully tax-equivalent basis\nis calculated by dividing net interest income on a tax equivalent basis by\naverage earning assets for the period. Consistent with industry practice,\nmanagement has disclosed the efficiency ratio including and excluding certain\nitems, which is discussed in the efficiency ratio presentation on page 13 of\nthe full earnings release found at www.oldsecond.com, under the Investor\nRelations tab.\n\nWe consider the use of select non-GAAP financial measures and ratios to be\nuseful for financial and operational decision-making and useful in evaluating\nperiod-to-period comparisons. We believe that these non-GAAP financial\nmeasures provide meaningful supplemental information regarding our performance\nby excluding certain expenditures or assets or by adjusting certain items that\nwe believe are not indicative of our primary business operating results or by\npresenting certain metrics on a fully tax-equivalent basis. We believe these\nmeasures provide investors with information regarding balance sheet\nprofitability, and we believe that management and investors benefit from\nreferring to these non-GAAP financial measures in assessing our performance\nand when planning, forecasting, analyzing, and comparing past, present and\nfuture periods.\n\nThese non-GAAP financial measures should not be considered as a substitute for\nGAAP financial measures, and we strongly encourage investors to review the\nGAAP financial measures included in this earnings release and not to place\nundue reliance upon any single financial measure. In addition, because\nnon-GAAP financial measures are not standardized, it may not be possible to\ncompare the non-GAAP financial measures presented in this earnings release\nwith other companies' non-GAAP financial measures having the same or similar\nnames. The tables beginning on page 12 of the full earnings release, found at\nwww.oldsecond.com, under the Investor Relations tab, provide a reconciliation\nof each non-GAAP financial measure to the most comparable GAAP equivalent.\n\nFinancial Highlights\n\n                                                           Quarters Ended                                                                                                           \n (Dollars in thousands - unaudited)                        March 31,               December 31,              September 30,             June 30,                March 31,            \n                                                           2026                    2025                      2025                      2025                    2025                 \n Balance sheet summary                                                                                                                                                              \n Total assets                                              $      6,849,221        $        6,902,675        $        6,991,754        $      5,701,294        $      5,727,686     \n Total securities available-for-sale                              1,115,443                 1,090,523                 1,157,480               1,177,688               1,146,721     \n Total loans                                                      5,185,237                 5,252,131                 5,264,505               3,998,667               3,940,232     \n Total deposits                                                   5,564,999                 5,596,069                 5,760,250               4,798,439               4,852,791     \n Total liabilities                                                5,955,924                 6,005,907                 6,125,069               4,982,645               5,033,195     \n Total equity                                                     893,297                   896,768                   866,685                 718,649                 694,491       \n                                                                                                                                                                                    \n Total tangible assets                                     $      6,697,509        $        6,749,787        $        6,836,565        $      5,588,090        $      5,613,460     \n Total tangible equity                                            741,585                   743,880                   711,496                 605,445                 580,265       \n                                                                                                                                                                                    \n Income statement summary                                                                                                                                                           \n Net interest income                                       $      81,144           $        83,051           $        82,775           $      64,234           $      62,904        \n Provision for credit losses                                      9,500                     3,000                     19,653                  2,500                   2,400         \n Noninterest income                                               12,630                    12,154                    13,109                  10,898                  10,201        \n Noninterest expense                                              50,210                    52,935                    63,163                  43,419                  44,505        \n Net income                                                       25,585                    28,787                    9,871                   21,822                  19,830        \n Effective tax rate                                               24.89      %              26.69      %              24.46      %            25.30      %            24.31      %  \n                                                                                                                                                                                    \n Profitability ratios                                                                                                                                                               \n Return on average assets (ROAA)                                  1.51       %              1.64       %              0.56       %            1.53       %            1.42       %  \n Return on average equity (ROAE)                                  11.43                     12.92                     4.61                    12.39                   11.76         \n Net interest margin (tax-equivalent) (1)                         5.14                      5.09                      5.05                    4.85                    4.88          \n Efficiency ratio                                                 52.40                     53.98                     64.46                   55.99                   56.46         \n Return on average tangible common equity (ROATCE) (1)            14.20                     16.15                     6.16                    15.29                   14.70         \n Tangible common equity to tangible assets (TCE/TA) (1)           11.07                     11.02                     10.41                   10.83                   10.34         \n                                                                                                                                                                                    \n Per share data                                                                                                                                                                     \n Diluted earnings per share                                $      0.48             $        0.54             $        0.18             $      0.48             $      0.43          \n Tangible book value per share                                    14.35                     14.12                     13.51                   13.44                   12.88         \n                                                                                                                                                                                    \n Company capital ratios (3)                                                                                                                                                         \n Common equity tier 1 capital ratio                               13.13      %              12.99      %              12.44      %            13.77      %            13.47      %  \n Tier 1 risk-based capital ratio                                  13.55                     13.41                     12.85                   14.31                   14.01         \n Total risk-based capital ratio                                   15.64                     15.46                     15.10                   16.55                   16.24         \n Tier 1 leverage ratio                                            11.88                     11.70                     11.21                   11.83                   11.58         \n                                                                                                                                                                                    \n Bank capital ratios (3, 4)                                                                                                                                                         \n Common equity tier 1 capital ratio                               13.80      %              13.17      %              13.14      %            14.02      %            13.64      %  \n Tier 1 risk-based capital ratio                                  13.80                     13.17                     13.14                   14.02                   13.64         \n Total risk-based capital ratio                                   14.88                     14.22                     14.39                   14.99                   14.58         \n Tier 1 leverage ratio                                            12.09                     11.49                     11.45                   11.59                   11.27         \n\n(1) See the discussion entitled \"Non-GAAP Presentations\" above and the full\nearnings release, found at www.oldsecond.com, under the Investor Relations\ntab, that provides a reconciliation of all non-GAAP financial measures to the\nmost comparable GAAP equivalents.\n\n(2) All comparisons throughout this release are on a linked-quarter basis,\nunless otherwise noted.\n\n(3) Both the Company and the Bank ratios are inclusive of a capital\nconservation buffer of 2.50%, and both are subject to the minimum capital\nadequacy guidelines of 7.00%, 8.50%, 10.50%, and 4.00% for the Common equity\ntier 1, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios,\nrespectively.\n\n(4) The prompt corrective action provisions are applicable only at the Bank\nlevel, and are 6.50%, 8.00%, 10.00%, and 5.00% for the Common equity tier 1,\nTier 1 risk-based, Total risk-based and Tier 1 leverage ratios, respectively.\n\n Contact:    Bradley S. Adams         \n             Chief Financial Officer  \n             (630) 906-5484           \n\nSOURCE: Old Second Bancorp Inc.\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/old-second-bancorp-inc.-reports-first-quarter-2026-net-income-of-25.-1159973)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved."},"type":"article","timestamp":"2026-04-22T20:35:45.130004717Z","server_sent_at_ms":1776890145130},"received_at":"2026-04-22T20:35:45.559Z","source_url":"https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/old-second-bancorp-inc.-reports-first-quarter-2026-net-income-of-25.-1159973"},"analysis":{"id":"4071","press_release_id":"5563","analysis_json":{"industry":{"label":"Banks","sector":"Financials"},"redFlags":["Provision for credit losses tripled to $9.5 million from $3.0 million in the prior quarter","Nonperforming loans increased 43% linked-quarter to $75.5 million","Total loans declined $66.9 million driven by decreases in commercial real estate and construction"],"eventType":"earnings","narrative":"Old Second Bancorp reported Q1 2026 net income of $25.6 million, or $0.48 per diluted share, a decline from the prior quarter driven by a higher provision for credit losses.\n\nDespite the credit costs, operating metrics showed strength with net interest margin expanding 5 basis points to 5.14% and the efficiency ratio improving to 52.40%.\n\nThe company returned capital to shareholders through a declared $0.07 dividend and $23.1 million in share repurchases while also paying down $30 million in subordinated debt.","sentiment":"mixed","agentHooks":{"shouldPost":false,"suggestedAngle":"Solid margin performance offset by notable credit deterioration and elevated provision expenses."},"keyFigures":{"eps":0.48,"customDimensions":{"net_income":"$25.6 million","efficiency_ratio":"52.40%","share_repurchases":"$23.1 million","adjusted_net_income":"$26.0 million","net_interest_income":"$81.1 million","net_interest_margin":"5.14%","nonperforming_loans":"$75.5 million","provision_for_credit_losses":"$9.5 million"}},"quotedText":"Old Second reported strong results in the first quarter of 2026 led by exceptional margin performance and disciplined operating efficiency.","namedEntities":{"people":[{"name":"Jim Eccher","role":"Chairman, President and Chief Executive Officer"},{"name":"Bradley S. Adams","role":"Chief Financial Officer"}],"products":[],"companies":[{"name":"Old Second Bancorp, Inc.","ticker":"OSBC"},{"name":"Old Second National Bank","relationship":"subsidiary"},{"name":"Bancorp Financial, Inc.","relationship":"partner"}],"dollarAmounts":[{"amount":"$25.6 million","context":"Q1 2026 net income"},{"amount":"$0.48","context":"Q1 2026 diluted earnings per share"},{"amount":"$81.1 million","context":"Q1 2026 net interest and dividend income"},{"amount":"$9.5 million","context":"Q1 2026 provision for credit losses"},{"amount":"$23.1 million","context":"Q1 2026 share repurchases"},{"amount":"$30 million","context":"subordinated debt paydown"},{"amount":"$0.07","context":"cash dividend declared per share"}]},"materialImpact":{"score":3,"reasoning":"Operating performance showed strength with expanding NIM and efficiency, but results were tempered by a significant spike in credit provision costs and deterioration in asset quality."},"tickerRelevance":{"others":[],"primary":"OSBC"},"eventTypeSecondary":["dividend","buyback"]},"event_type":"earnings","event_type_secondary":["dividend","buyback"],"sentiment":"mixed","material_impact_score":3,"narrative":"Old Second Bancorp reported Q1 2026 net income of $25.6 million, or $0.48 per diluted share, a decline from the prior quarter driven by a higher provision for credit losses.\n\nDespite the credit costs, operating metrics showed strength with net interest margin expanding 5 basis points to 5.14% and the efficiency ratio improving to 52.40%.\n\nThe company returned capital to shareholders through a declared $0.07 dividend and $23.1 million in share repurchases while also paying down $30 million in subordinated debt.","key_figures":{"eps":0.48,"customDimensions":{"net_income":"$25.6 million","efficiency_ratio":"52.40%","share_repurchases":"$23.1 million","adjusted_net_income":"$26.0 million","net_interest_income":"$81.1 million","net_interest_margin":"5.14%","nonperforming_loans":"$75.5 million","provision_for_credit_losses":"$9.5 million"}},"named_entities":{"people":[{"name":"Jim Eccher","role":"Chairman, President and Chief Executive Officer"},{"name":"Bradley S. Adams","role":"Chief Financial Officer"}],"products":[],"companies":[{"name":"Old Second Bancorp, Inc.","ticker":"OSBC"},{"name":"Old Second National Bank","relationship":"subsidiary"},{"name":"Bancorp Financial, Inc.","relationship":"partner"}],"dollarAmounts":[{"amount":"$25.6 million","context":"Q1 2026 net income"},{"amount":"$0.48","context":"Q1 2026 diluted earnings per share"},{"amount":"$81.1 million","context":"Q1 2026 net interest and dividend income"},{"amount":"$9.5 million","context":"Q1 2026 provision for credit losses"},{"amount":"$23.1 million","context":"Q1 2026 share repurchases"},{"amount":"$30 million","context":"subordinated debt paydown"},{"amount":"$0.07","context":"cash dividend declared per share"}]},"model_name":"glm-4.7","prompt_hash":"sha256:2f2748f0fcc8c4f2","schema_hash":"sha256:ad96b863d7123008","created_at":"2026-04-22T23:51:44.651Z","global_importance":3,"audience_relevance":3,"importance_components":{"method":"backfill-heuristic","signals":{"bodyLong":false,"headlineTier1":false,"tickerCovered":false,"hadSignificance":false},"version":1,"computedAt":"2026-04-27T11:52:54.513Z"}},"durationMs":159184,"modelName":"glm-4.7"}}