Old Second Bancorp (OSB) AI Stock Analysis

Old Second Bancorp

(Frankfurt:OSB)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Revenue Growth and Cash GenerationStrong multi-year revenue expansion demonstrates meaningful scale growth, while free cash flow nearly matching net income indicates effective earnings conversion. Together, these trends support internally funded growth, capital returns, and greater resilience over the next several quarters.

Negative Factors

Elevated Loan LossesMaterial quarterly charge-offs continue to weigh on earnings and demonstrate that credit risk remains active despite improving portfolio metrics. Concentration in a commercial relationship and recurring powersports losses could require further provisions or capital absorption.

Old Second Bancorp (OSB) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.24B
Dividend Yield: 1.19%
Average Volume (3M): ―
Price to Earnings (P/E): 11.3
Beta (1Y): 0.73
Revenue Growth: 16.83%
EPS Growth: 32.25%
Country: Germany
Employees: 1,062
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Old Second Bancorp Business Overview & Revenue Model

Company Description

Old Second Bancorp, Inc. (OSBC) serves as the parent holding company for Old Second National Bank, providing a full range of community banking services. The institution offers a broad spectrum of deposit products, including demand, NOW, money market,...

Old Second Bancorp Earnings Call Summary

Earnings Call Date:Oct 20, 2026(Q3-2026)|% Change Since:-0.62%|Next Earnings Date:Jan 26, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Management reported strong profitability, an exceptional net interest margin, improving classified and criticized loan metrics, solid operating performance, broad lending pipelines, a new Ducati partnership, continued capital returns, and expectations for deposit growth. These positives were partially offset by elevated charge-offs, ongoing powersports losses, loan prepayments, deposit and funding pressures, expected margin giveback, and higher operating costs.

Positive Updates

Strong Quarterly Profitability

Third-quarter GAAP net income was $28.9 million, or $0.56 per diluted share, with return on assets of 1.69%, return on average tangible common equity of 15.77%, and an efficiency ratio of 52.34%. Excluding MSR valuation adjustments, net income was $28.5 million, or $0.55 per diluted share.

Negative Updates

Elevated Net Loan Charge-Offs

Third-quarter earnings were affected by $12.7 million of net loan charge-offs, including $9.2 million of C&I charge-offs primarily tied to one warehousing and distribution relationship and $3.1 million of powersports charge-offs. Management said $6.0 million of the $9.2 million C&I charge-off had been previously reserved and that the related company is under contract to be sold at a much lower price.

Company Guidance

Management expects loan growth in the fourth quarter of 2026 to be “in the low single level,” expense growth to “continue to be modest in the quarters ahead,” and deposit growth in the fourth quarter, with most post-acquisition attrition “largely behind us”; it expects to give back “5 basis points or so” on margin but remain “solidly above a 25 margin for the near and intermediate term,” assuming “high cost deposit attrition slows,” and expects “45% of our loan book” and “25% of our securities portfolio” to reprice in the “next 3 to 4 quarters.” Management said investors could reasonably expect to “take out 5% of shares a year,” reserve levels will “not run much lower from here,” near-term expenses around $51.5 million “makes perfect sense,” and annual expense growth in the “3 to 4% range” is expected, while the common dividend was increased “by 14%” in the fourth quarter of 2026.

Old Second Bancorp Risk Analysis

Old Second Bancorp disclosed 49 risk factors in its most recent earnings report. Old Second Bancorp reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Old Second Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:OSB against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMBH	84Outperform	$1.34B	11.56	10.50%	2.00%	14.51%	19.30%
BY	80Outperform	$1.72B	11.16	12.02%	1.25%	2.04%	22.06%
HBT	78Outperform	$1.33B	14.21	12.41%	2.52%	23.16%	3.39%
QCRH	76Outperform	$1.65B	11.84	12.50%	0.40%	3.11%	18.83%
MSBI	73Outperform	$682.53M	14.08	10.47%	3.93%	-21.18%	―
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

DE:OSB and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:OSB	Old Second	20.20	5.10	33.82%
QCRH	QCR Holdings	101.38	26.43	35.27%
MSBI	Midland States Bancrop	32.81	17.74	117.66%
FMBH	First Mid-Illinois Bancshares, Inc.	50.40	15.29	43.57%
BY	Byline Bancorp	38.50	11.99	45.24%
HBT	Hbt Financial, Inc.	36.52	13.53	58.84%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Old Second Bancorp AI Stock Analysis