OSBC

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Old Second Bancorp has delivered a strong share price run over the past five years, yet its current valuation signals are mixed. The Excess Returns intrinsic value estimate suggests the stock may be trading below its estimated worth, while market based multiples look closer to fair. Old Second Bancorp has returned 128.5% over 5 years, which puts extra focus on whether the current price still leaves room for attractive risk adjusted returns. The bank's ability to keep generating consistent earnings and manage credit risk can support the valuation, while any pressure on loan quality or funding costs may weigh on what investors are willing to pay. Old Second Bancorp scores 3 out of 6 on our valuation checks, which points to a mixed picture rather than a clear bargain or clear overvaluation. The issue now is whether Old Second Bancorp's share price already reflects this balance of fair looking market multiples and a potentially cheaper intrinsic value estimate, or if there is still a reasonable margin between the two. Old Second Bancorp delivered 45.2% returns over the last year. See how this stacks up to the rest of the Banks industry. The Excess Returns model evaluates how much value Old Second Bancorp can create above the required return that equity investors expect. It does this by comparing the cost of equity with the earnings power supported by the bank's balance sheet. For Old Second Bancorp, the model uses a Book Value of $17.72 per share and a Stable EPS estimate of $2.45 per share, based on future return on equity estimates from 5 analysts. With a Cost of Equity of $1.43 per share, the Excess Return is $1.02 per share, supported by an average Return on Equity of 12.41%. The Stable Book Value is $19.74 per share, based on estimates from 6 analysts, which indicates a profile that relies more on steady profitability than on aggressive balance sheet expansion. Under these assumptions, the Excess Returns model produces an intrinsic value of about $48.65 per share. Compared with the current share price, this suggests the stock is 48.2% undervalued based on the intrinsic discount calculation. On the Excess Returns view, Old Second Bancorp stock currently appears undervalued relative to its estimated intrinsic value. Our Excess Returns analysis suggests Old Second Bancorp is undervalued by 48.2%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Old Second Bancorp. The P/E ratio suits a bank like Old Second Bancorp because earnings are a key driver of how investors value established lenders. Old Second Bancorp currently trades on a P/E of about 13.9x, which is close to both the broader banks industry average of 11.8x and the peer group average of 14.0x. This suggests the market is not assigning a large premium or discount to the stock relative to other banks with similar characteristics. The fair P/E ratio implied by the model is about 13.3x, only slightly below the current multiple. That small gap indicates the market price is broadly in line with what would be expected given Old Second Bancorp's earnings profile, balance sheet and sector risks, rather than pointing to a clear bargain or an obviously stretched valuation. On the P/E multiple, Old Second Bancorp stock appears roughly fairly valued compared with both its peers and the model implied level. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Old Second Bancorp pick up where this valuation puzzle leaves off and set out the specific earnings, margin and growth paths that would need to hold for the stock to be worth materially more or materially less than today's price, on the Community page. Rather than relying on a single multiple or model, each narrative lays out the assumptions behind its view of fair value so you can compare them with Old Second Bancorp's results as they are reported. If you have a clear, number driven view on where Old Second Bancorp's growth, margins and execution go from here, share a Narrative and put your case on record in the Simply Wall St community. It is a chance to add your voice and see how your thesis holds up as new results arrive. Do you think there's more to the story for Old Second Bancorp? Head over to our Community to see what others are saying! Old Second Bancorp screens as undervalued on the Excess Returns intrinsic value estimate, while the P/E multiple points to a price that is about right compared with peers. The mixed valuation checks suggest this is not a straightforward bargain, but rather a stock where upside depends on how reliably earnings and credit quality hold up against sector risks. The key question from here is whether Old Second Bancorp can keep delivering the returns that justify the intrinsic value estimate without running into funding or asset quality pressure that would keep the market multiple anchored where it is. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OSBC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net interest margin reached an exceptionally strong 5.23%, driven by higher short-term rates and the repricing of lower-yielding loans originated in 2021 and 2022. Credit quality showed a positive inflection point with a 25% reduction in non-performing assets and a 30% decline in special mention loans, which management views as a leading indicator for future stability. The Powersports portfolio demonstrated seasonal improvement with a $1.1 million reduction in charge-offs and a robust contribution margin exceeding 8.5%. Management recorded $9.2 million of net charge-offs in the second quarter, the majority of which stemmed from the powersports portfolio along with one relationship each in commercial real estate investor and commercial. Operational leverage remains high as the bank successfully integrated the Evergreen acquisition, with efficiency ratios holding steady in the low 50% range. The office portfolio is noted as being under broad pressure regarding valuations and rents, though it represents only 3% of the total portfolio with no current classified assets in that vertical. Management targets low to mid-single-digit loan growth for 2026, though they acknowledge a slight bias toward the lower end due to borrower reluctance amid global tariff and geopolitical uncertainty. Net interest margin is expected to remain stable or contract slightly by a few basis points in the second half of 2026, assuming high-cost deposit attrition slows. The bank plans to aggressively execute its new 2.5 million share repurchase authorization through June 2027, citing a capital position that far exceeds projected needs. Strategic M&A remains a priority, specifically targeting well-priced, deposit-based franchises that enhance overall franchise value without 'betting the farm.' Fee income is projected to grow at a low single-digit rate, with potential for mid-single-digit growth if mortgage banking activity picks up. A $2.8 million charge-off was taken on a suburban Chicago office property after an updated valuation placed the collectability of a restructured B-note in doubt. A $3 million C&I charge-off in the warehousing and distribution sector is expected to be fully resolved in the coming quarter following a business sale. Deposit competition is described as 'aggressive,' with pricing frequently exceeding the Fed funds and treasury curves, creating a challenging environment for core deposit growth. The bank shuttered one additional branch in the previous month, marking the final stages of cost-saving measures related to the Evergreen merger. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that replacing high-cost attrition with wholesale funding is currently margin-accretive due to the nature of retail deposit competition. The CFO expressed a bullish long-term view on margins, suggesting the bank is structurally high-margin as long as interest rates do not return to zero-bound levels. Management expects charge-offs to normalize toward the 35 to 45 basis point range as they move past the specific C&I and CRE resolutions identified this quarter. The significant reduction in special mention loans is highlighted as a primary reason for optimism regarding future credit migration. The portfolio currently carries an APR over 10% with a loss rate that improved to 1.80% in the quarter. Management anticipates the contribution margin will remain at historical highs through 2026 before seeing a slight, non-material reduction in 2027 as newer, lower rates cycle through.

This article first appeared on GuruFocus. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Old Second Bancorp Inc (NASDAQ:OSBC) reported a strong net interest margin of 5.23% for the second quarter, marking a 9 basis point improvement from the previous quarter. The company achieved a significant reduction in non-performing loans, which decreased by $19 million, and classified assets declined by $16.5 million. Tangible book value per share increased to $14.77 at the end of the quarter, up from $14.35 in the previous quarter. The allowance for credit losses on loans decreased, indicating improved credit quality and reduced risk. Non-interest income increased by 5% compared to the prior quarter, with wealth management and mortgage banking showing strong performance. The second quarter was impacted by $9.2 million of net loan charge-offs, primarily from the Powersports portfolio and commercial real estate. The office portfolio continues to face pressure with valuations coming in at steep discounts and declining rents. Deposit runoff was higher than expected, indicating potential challenges in maintaining deposit levels. The company experienced elevated charge-offs in the Powersports business, although there was a reduction from the prior quarter. Stock repurchases led to a decrease in common equity tier one capital, which declined by 49 basis points from a year ago. Warning! GuruFocus has detected 7 Warning Signs with OSBC. Is OSBC fairly valued? Test your thesis with our free DCF calculator. Q: What are your expectations for charge-offs in the coming quarters, considering the recent improvements in classified loans and non-performers? A: Jim Ecker, Chairman, President, and CEO, mentioned that the significant reduction in special mention loans, which are typically a leading indicator for future problems, gives optimism. While there are still some credits being worked through, there haven't been any new issues identified recently. The expectation is to have a very clean quarter on the credit front soon, which should drive exceptional performance. Q: How do you see the net interest margin trending in the second half of the year? A: Brad Adams, COO and CFO, indicated that while there are many variables that could affect the margin, he expects it to be around 5.18% in the third quarter and 5.15% in the fourth quarter. He noted that loan yields feel relatively stable, but deposit costs might increase slightly. Q: Can you provide more details on the commercial loan growth this quarter, given the competitive environment? A: Jim Ecker explained that growth came from several areas, including middle market C&I, commercial real estate, sponsored finance, and Powersport. Despite fierce competition, the bank is encouraged by its current pipelines. Q: What is your approach to share repurchases, and how sensitive are you to share price and valuation? A: Brad Adams stated that the bank is not particularly sensitive to share price when it comes to repurchases. With more capital than needed, the bank sees buybacks as a tax-efficient way to return capital to shareholders. The current authorization is expected to be fully executed over the next 12 months. Q: What are your expectations for fee income growth in the second half of the year? A: Jim Ecker mentioned that the bank expects low single-digit growth in fee income, driven by the Wealth Group's success in bringing in new assets under management and potential upticks in the mortgage banking sector. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Old Second Bancorp, Inc.? Here are five stocks we like better. Old Second Bancorp posted strong Q2 results, with GAAP net income of $28.2 million, or $0.54 per share, and an adjusted profit of $28.7 million, or $0.55 per share. Return on assets improved to 1.65% and the efficiency ratio was 51.72%. Net interest margin expanded meaningfully to 5.23%, up 9 basis points from the prior quarter, as net interest income rose to $83.3 million. Management said deposit costs eased and loan yields improved, though competition for both loans and deposits remains intense. Credit quality improved despite elevated charge-offs, which were driven mainly by a few previously identified problem loans. Non-performing loans, classified assets and non-performing assets all declined, and management said the company is nearing a “very clean quarter” on credit. Old Second Bancorp (NASDAQ:OSBC) reported higher second-quarter earnings and an expanded net interest margin, while management said credit metrics improved despite elevated charge-offs tied largely to previously discussed problem loans. The Aurora, Illinois-based bank holding company posted GAAP net income of $28.2 million, or $0.54 per diluted share, for the second quarter of 2026, Chairman, President and CEO James Eccher said on the company’s earnings call. Return on assets was 1.65%, while return on average tangible common equity was 15.58%. The company’s tax-equivalent efficiency ratio was 51.72%. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Excluding certain adjusting items, including mortgage servicing rights valuation adjustments and costs related to the 2025 acquisition of Bancorp Financial and its Evergreen Bank Group subsidiary, Old Second earned $28.7 million, or $0.55 per diluted share, Eccher said. Chief Operating Officer and Chief Financial Officer Brad Adams said net interest income increased to $83.3 million from $81.1 million in the prior quarter and was up $19 million, or nearly 30%, from the year-earlier period. → 3 Photonics Companies Making Quantum Tech Possible The bank reported a tax-equivalent net interest margin of 5.23% for the second quarter, up 9 basis points from the linked quarter and 38 basis points from the prior-year quarter. Eccher said the increase reflected higher average balances, lower average time deposit balances, higher short-term rates and repricing of lower-yielding loans originated in 2021 and 2022. Adams characterized the margin as “ridiculously good,” noting that tax-equivalent loan yields increased 12 basis points and securities yields rose 6 basis points during the quarter. He said the improvement was partly driven by increases in rates along the curve, particularly SOFR and overnight index swap rates, following geopolitical instability. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Total cost of deposits was 100 basis points in the second quarter, compared with 105 basis points in the first quarter and 84 basis points in the second quarter of 2025. Adams said competition for both loans and deposits remains “very robust,” with deposit competition running “pretty significantly above” the Fed funds and Treasury curves. Looking ahead, Adams said margin trends still appeared stable in the near term, though he suggested the bank could give back a few basis points. In response to an analyst question, he estimated the margin could be around 5.18% in the third quarter and 5.15% in the fourth quarter, while cautioning that market conditions could change. Total loans increased $60.6 million during the quarter, partially reversing seasonal declines from the first quarter. The loan-to-deposit ratio rose to 96.4% as of June 30, compared with 93.2% at the end of the prior quarter and 83.3% a year earlier. Adams said loan origination activity reflected a seasonal increase, and the pipeline remained strong. However, he said tariffs and uncertainty related to the war in Iran had caused some borrowers to remain cautious about capital projects. He maintained the company’s full-year loan growth target in the low- to mid-single-digit range, with “a little bit more of a bias” toward the low-single-digit level. Eccher said second-quarter loan growth came from several areas, including middle-market commercial and industrial lending, commercial real estate, sponsored finance and the powersports portfolio. He said competition remains “fierce,” but management is encouraged by current pipelines. Old Second recorded $9.2 million of net loan charge-offs in the second quarter. Eccher said the charge-offs primarily included two credits that management had discussed on the previous quarter’s call: a $3 million commercial and industrial charge-off related to a warehousing and distribution business, and a $2.8 million commercial real estate investor charge-off tied to an office property in a western suburb of Chicago. The office property was an acquired credit that had been restructured into an A/B note in 2023 due to challenges in the office market. Eccher said the B note had previously been fully secured by collateral value but recently experienced a decline in value, leading management to conclude its collectibility was in doubt and charge it off. He added that the property continues to generate enough cash flow to support the A note at this time. Net charge-offs related to the powersports business totaled $2.8 million, down $1.1 million from the prior quarter. Eccher said seasonal patterns typically result in higher usage of ATVs and UTVs during the spring and summer, improving collateral outcomes, and he noted that the business’s contribution margin remained strong. Despite the charge-offs, management emphasized improvement in broader credit trends. Non-performing loans declined by $19 million, classified assets fell by $16.5 million and non-performing assets decreased 25% during the quarter, Eccher said. Special mention loans declined by $12.5 million, from about $40 million to $27 million, a reduction he called an encouraging leading indicator. The allowance for credit losses on loans stood at $70.4 million, or 1.34% of loans, at June 30, compared with $72.1 million, or 1.39% of loans, at March 31. Eccher said unemployment and GDP assumptions used in the bank’s loss modeling were largely unchanged from the prior quarter, while tariff volatility and the war in Iran continued to be considered in the model. On the outlook for credit, Eccher said the company is “really close to having a very clean quarter on the credit front,” though it is still working through a couple of credits. He said charge-offs could move back toward a 35- to 45-basis-point range, while acknowledging that the powersports portfolio may keep levels somewhat higher. Non-interest income increased $631,000, or 5%, from the prior quarter and rose $2.4 million, or 21.7%, from the year-earlier period. Eccher said wealth management had a strong quarter, with income up $245,000 from the linked quarter and $525,000 from the prior-year period. Mortgage banking income increased $97,000 sequentially and $543,000 from a year earlier, primarily due to mortgage servicing rights mark-to-market valuations. Total non-interest expense increased $1 million from the prior quarter, driven by higher officer incentive and employee insurance costs, elevated OREO expenses and GAP insurance refunds related to legacy Evergreen activity. Adams said he did not see material expense pressures from upcoming investments, saying capital projects are already reflected in the run rate. Tangible book value per share increased to $14.77 from $14.35 in the prior quarter. The tangible equity ratio rose to 11.19% from 11.07%, while Common Equity Tier 1 capital was 13.28%, up from 13.13% in the first quarter but down from a year earlier due mainly to stock repurchases. Adams said Old Second repurchased 732,000 shares during the second quarter at an average price of $21.08, reducing equity by $15.4 million and adding about $0.01 to earnings per share. Year-to-date repurchases totaled 1.9 million shares at an average price of $20.31. After exhausting its prior authorization, the board approved a new plan to repurchase about 2.5 million shares through June 30, 2027. Adams said management expects to remain “active and aggressive” with buybacks given the company’s capital position. He also said Old Second remains interested in well-priced mergers and acquisitions that add to franchise value, though management currently has a bias toward smaller transactions. Eccher closed the call by saying the bank is “cautiously optimistic” because of improved credit metrics and remains optimistic about loan growth and potential strategic growth opportunities. Old Second Bancorp, Inc is a bank holding company based in Aurora, Illinois, serving businesses and consumers through its primary subsidiary, Old Second National Bank. The company provides a broad range of commercial and retail banking services across the suburban Chicago marketplace, supported by a branch network and online platforms designed to meet the financial needs of local communities. In its commercial banking division, Old Second offers lending solutions that include lines of credit, term loans, equipment financing and commercial real estate financing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Old Second Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

AURORA, IL / ACCESS Newswire / 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." 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%. 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. 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 of the full earnings release, found at www.oldsecond.com, under the Investor Relations tab, 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 of the full earnings release found at www.oldsecond.com, under the Investor Relations tab. Financial Highlights 1 See the discussion entitled "Non-GAAP Presentations" above and the full earnings release, found at www.oldsecond.com, under the Investor Relations tab, that provides a reconciliation of all non-GAAP financial measures to the most comparable GAAP equivalents. 2 All comparisons throughout this release are on a linked-quarter basis, unless otherwise noted. 3 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. 4 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 CONTACT: Bradley S. AdamsChief Financial Officer(630) 906-5484 SOURCE: Old Second Bancorp Inc. View the original press release on ACCESS Newswire

Old Second Bancorp (OSBC) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.85%. A quarter ago, it was expected that this financial holding company would post earnings of $0.52 per share when it actually produced earnings of $0.49, delivering a surprise of -5.77%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Old Second Bancorp, which belongs to the Zacks Banks - Midwest industry, posted revenues of $96.59 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.57%. This compares to year-ago revenues of $75.13 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Old Second Bancorp shares have added about 21.4% since the beginning of the year versus the S&P 500's gain of 9.7%. While Old Second Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Old Second Bancorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.56 on $96.43 million in revenues for the coming quarter and $2.15 on $382.53 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. FirstSun Capital (FSUN), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 27. This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -81.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. FirstSun Capital's revenues are expected to be $183.95 million, up 72.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Old Second Bancorp, Inc. (OSBC) : Free Stock Analysis Report FirstSun Capital Bancorp (FSUN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Old Second Bancorp (OSBC) reported $96.59 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 28.6%. EPS of $0.55 for the same period compares to $0.48 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $95.1 million, representing a surprise of +1.57%. The company delivered an EPS surprise of +1.85%, with the consensus EPS estimate being $0.54. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Old Second Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Interest Margin: 5.2% compared to the 5.1% average estimate based on three analysts. Efficiency Ratio: 51.7% versus the three-analyst average estimate of 52.7%. Average Balance - Total interest earning assets: $6.42 billion versus the two-analyst average estimate of $6.43 billion. Total noninterest income: $13.26 million versus $12.87 million estimated by three analysts on average. Other income: $1.49 million versus the two-analyst average estimate of $1.84 million. Net interest and dividend income: $83.33 million compared to the $81.89 million average estimate based on two analysts. Wealth management: $3.63 million compared to the $3.21 million average estimate based on two analysts. Change in cash surrender value of BOLI: $1.47 million versus $1.04 million estimated by two analysts on average. Card related income: $2.48 million versus $2.83 million estimated by two analysts on average. Service charges on deposits: $3.08 million versus the two-analyst average estimate of $3.07 million. Net Interest Income (TE): $83.64 million compared to the $82 million average estimate based on two analysts. Net gain on sales of mortgage loans: $0.64 million versus the two-analyst average estimate of $0.82 million. View all Key Company Metrics for Old Second Bancorp here>>> Shares of Old Second Bancorp have returned +4.9% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Old Second Bancorp, Inc. (OSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when First Western (MYFW) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of +115.4%. Revenues are expected to be $28.4 million, up 17.4% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For First Western, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.90%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that First Western will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that First Western would post earnings of $0.44 per share when it actually produced earnings of $0.63, delivering a surprise of +43.18%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. First Western appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Old Second Bancorp (OSBC), another stock in the Zacks Banks - Midwest industry, is expected to report earnings per share of $0.54 for the quarter ended June 2026. This estimate points to a year-over-year change of +12.5%. Revenues for the quarter are expected to be $95.1 million, up 26.6% from the year-ago quarter. The consensus EPS estimate for Old Second Bancorp has been revised 1.8% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.30%. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Old Second Bancorp will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Western Financial, Inc. (MYFW) : Free Stock Analysis Report Old Second Bancorp, Inc. (OSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research