AI-extracted from the 10-Q filed 2026-08-06 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Net income of $28.2M ($0.54 diluted EPS) grew 29% YoY, driven by Bancorp Financial acquisition (+$1.25B loan portfolio, +$1.2B deposits) and 38bps NIM expansion to 5.21%, partially offset by 3x higher provision for credit losses.
Biggest Revenue Drivers
Noninterest income$13.3M+$2.4M YoY (+21.7% YoY)
Gains on mortgage loan sales +$90K; BOLI cash surrender value +$779K; wealth management +$525K; powersport and consumer fees +$551K from Bancorp acquisition.
Biggest Revenue Drivers
Total revenue: $101.2M+26.0M YoY interest income; +$2.4M nonin
Noninterest income$13.3M+$2.4M YoY (+21.7% YoY)
Gains on mortgage loan sales +$90K; BOLI cash surrender value +$779K; wealth management +$525K; powersport and consumer fees +$551K from Bancorp acquisition.
Largest Expense Items
Salaries and employee benefits$30.1M+$3.2M YoY (+11.7% YoY)
Bancorp Financial acquisition added employees; higher base salary rates, stock compensation, 401(k), and deferred compensation expense.
Computer and data processing$3.2M+$525K YoY (+19.5% YoY)
Bancorp Financial acquisition operational costs and systems conversion completed October 2025.
Powersport loan portfolio from Bancorp acquisition: title fees, credit checks, collection, statement costs, onboarding software.
Margins: Net interest margin (GAAP) expanded 38 bps to 5.21% YoY, driven by higher loan yields (+63 bps from Bancorp acquisition powersport/consumer portfolio) and accretion on purchased loans, partially offset by higher deposit costs (+17 bps on interest-bearing deposits) and increased FHLB borrowing expense. NIM also benefited from asset-sensitive positioning in stable-rate environment.
Watch Items from the Filing
Nonperforming loans increased to 1.1% of total loans ($56.5M) from 1.0% at December 31, 2025 and 0.8% a year ago; primarily driven by two commercial relationships totaling $16.5M moved to nonaccrual in Q1 2026, with $3M charged off in Q2. Classified assets ratio 15.14% at June 30 vs 17.82% at December 31, 2025.
Provision for credit losses surged to $7.5M in Q2 2026 vs $2.5M in Q2 2025 and $9.5M in Q1 2026; driven by elevated charge-offs ($9.2M in Q2 vs $785K YoY) and one commercial relationship downgrade. Annualized net charge-offs 0.71% of avg loans, up from 0.08% YoY.
Deposits decreased $151M to $5.44B from December 31, 2025, primarily from $185M reduction in time deposits as exception-priced deposits and brokered CDs from Bancorp acquisition run off. Brokered deposits $30.3M remaining expected to mature by early 2028.
Commercial real estate loans and undrawn commitments (excluding owner-occupied) equal 210.2% of Tier 1 capital plus ACL, down from 220.3% at December 31, 2025; real estate lending comprises 55.1% of loan portfolio. Downtown Chicago office and declining occupancy office assets in nonaccrual status.
Capital ratios remain strong: Common Equity Tier 1 13.28%, Total Risk-Based 15.26%, Tier 1 Leverage 12.05%, all exceeding well-capitalized thresholds. Shares repurchased 1.9M for $38.8M in first half 2026; $546M authorized repurchase capacity remaining.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Bonifas EdwardReporting ownerShares withheld for tax or exercise price · Feb 21, 2026
About OLD SECOND BANCORP INC (OSBC): stock profile, AI score and financials
OLD SECOND BANCORP INC (OSBC) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores OSBC at 59.9/100 on a composite quality score built from its SEC filings, placing it at rank #898 of 2,925 stocks — the top half of the AI-ranked universe. OSBC scores in the top quartile across free cash flow (90.0), profitability (78.6), institutional flow (75.2). Areas of concern include revenue scale (32.9), which score below median versus the broader universe. Shareholder dilution risk is elevated at 42.8/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), OLD SECOND BANCORP INC reports quarterly revenue of $96.6M, net income of $28.2M, an operating margin of 39.2%. Top institutional holders of OSBC by reported 13-F value include BlackRock, DIMENSIONAL FUND ADVISORS, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. OSBC trades on the Nasdaq exchange and files with the SEC under CIK 357173. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate OSBC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for OLD SECOND BANCORP INC directly from SEC EDGAR.