Old Second Bancorp Reports Q3 2026 Net Income of $28.9 Million and Improved Asset Quality
Old Second Bancorp (OSBC) reported a net income of $28.9 million for the third quarter of 2026. Despite absorbing $12.7 million in net loan charge-offs, primarily from a single commercial customer, the bank saw significant improvements in credit health. Criticized loans fell by 38% ($61.3 million), reaching levels not seen since before the COVID-19 pandemic. The company is pursuing an aggressive capital allocation strategy, including a 14% dividend increase and the repurchase of 1.5 million shares during the quarter. Management aims to continue share buybacks while maintaining liquidity for potential mergers and acquisitions. To counter deposit competition pressure, the bank expects margin support as 45% of its loan book and 25% of its securities portfolio are scheduled to reprice at higher interest rates over the next four quarters.
Tickers: $OSBC
Topics: Asset Quality Dividends Loan Repricing Net Income Share Buybacks