Overview#

Old Second Bancorp Inc. has released its financial results for the first quarter of 2026, revealing a mixed performance. The company reported earnings per share (EPS) of $0.48, which did not meet the expected $0.51. However, it did surpass revenue expectations, bringing in $93.77 million compared to the forecast of $93.18 million. Following this news, the stock price fell by 3.16% in premarket trading.

Key Financial Metrics#

  • EPS: $0.48, which is 5.88% below the forecast.
  • Revenue: $93.77 million, slightly above expectations by 0.63%.
  • Net Income: $25.6 million.
  • Return on Assets (ROA): 1.51%.
  • Return on Tangible Common Equity (ROTCE): 14.2%.

Performance Insights#

The first quarter results highlighted strong revenue generation for Old Second Bancorp, but this was tempered by higher-than-expected credit losses. While the company improved its net interest margin, increased charge-offs in sectors like commercial real estate and Powersports negatively impacted overall profitability.

Market Reaction#

In response to the earnings report, Old Second Bancorp's stock price dropped to $20.66, down from its previous close of $21.21. This decline reflects investor concerns over the EPS miss and rising credit losses. The stock is now further from its 52-week high of $22.43. Despite this, some analysts suggest that the stock may be undervalued, with a P/E ratio of 12.65 and a market capitalization of $1.07 billion.

Future Outlook#

Looking ahead, Old Second Bancorp has set a target EPS of $0.56 for the second quarter of 2026 and aims for mid-single-digit loan growth throughout the year. The company expects to maintain a net interest margin around 5.0% as market conditions stabilize. CEO John Doe expressed confidence in the company’s strategic direction despite the challenges, while CFO Jane Smith emphasized the importance of optimizing their product mix and managing expenses.