Old Second Bancorp stock posts 28.9 million US dollar Q3 profit

Published on 11/10/2026 at 01:29 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Old Second Bancorp stock is in focus after the bank reported stronger third-quarter profit and improving credit indicators. Margin expansion supported results.

Old Second reports stronger quarterly profit

Net interest margin increased to 5.27 percent in the third quarter.
Credit quality improved, although charge-offs remained elevated.
The board declared a common dividend payable on November 9, 2026.

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Old Second Bancorp reported higher net income for the third quarter ended September 30, 2026, while credit indicators improved from the previous quarter. The figures were released on October 21 in a statement carried by Morningstar.

Margin supports quarterly profitability

Net income reached 28.9 million US dollars, or 0.56 US dollars per diluted share, compared with 28.2 million US dollars and 0.54 US dollars in the second quarter. Adjusted net income was 28.5 million US dollars, while adjusted diluted earnings per share came to 0.55 US dollars.

Net interest and dividend income rose to 84.0 million US dollars. The fully tax-equivalent net interest margin increased by four basis points to 5.27 percent. The provision for credit losses fell to 6.8 million US dollars from 7.5 million US dollars, while noninterest expense increased to 51.6 million US dollars.

Credit trends improve despite charge-offs

Old Second said nonperforming loans declined to 39.6 million US dollars from 56.5 million US dollars and classified loans fell to 74.2 million US dollars from 132.1 million US dollars. Criticized loans represented 1.88 percent of total loans, down from 3.05 percent in the preceding quarter.

Loan losses remained a pressure point. The company said charge-offs were concentrated in a single commercial relationship, alongside 3.1 million US dollars of net charge-offs related to powersport loans. Total loans stood at 5.24 billion US dollars and deposits at 5.33 billion US dollars at quarter-end.

Dividend and capital actions

The board declared a cash dividend of 0.08 US dollars per common share on October 20, payable November 9 to shareholders of record on October 30. Old Second also repurchased 1.5 million common shares during the quarter, or approximately 3 percent of shares outstanding, according to the company.