| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 71 | 11.7x | 17.3x | Top tier | |
Growth | 83 | 22.2% | 7.1% | Top tier | |
Quality | 74 | — | — | Top tier | |
Safety | 21 | — | — | Bottom tier | |
Capital Return | 72 | 1.01% | 0.06% | Top tier | |
Momentum | 90 | 38.1% | -1.6% | Top tier | |
Sentiment | 42 | 5 | 3 | Around median |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Old Second Bancorp, Inc., listed on NASDAQ under the ticker OSBC, operates in regional banking, with a business model based on funding loans primarily through core retail deposits and earning net interest income alongside fees. Lending activities include middle-market companies, commercial real estate, financial sponsor-backed financing, and recreational vehicle financing through National Specialty Lending, while wealth management and mortgage banking add noninterest income. Its ability to grow earnings therefore depends on loan yields, deposit costs, and credit losses, with an additional contribution from fee businesses.
In quarter 2 of fiscal year 2026, ended 2026-06-30, net revenue was 88.8 million dollars, up 18.2% compared with the same quarter of the previous fiscal year, while net income was 28.2 million dollars and diluted earnings per share were 0.54 dollars. The operating margin calculated by EL7 was 42.6%, a different measure from the net interest margin, which was 5.23% in the same period. Net revenue declined from 93.8 million dollars in quarter 1 of fiscal year 2026, ended 2026-03-31, while net income rose from 25.6 million dollars in that quarter.
Business activity in quarter 2 of fiscal year 2026 shows that growth came from commercial lending, real estate lending, and recreational vehicle financing, with wealth management income increasing by 245 thousand dollars compared with the previous quarter. However, improved profitability coincided with net loan charge-offs of 9.2 million dollars, including exposures in warehousing and distribution, an office property, and recreational vehicle financing. Nonperforming assets declined by 25% compared with the previous quarter, making sustained credit improvement, alongside the cost of funding loans, central to assessing the bank's results.
Q2 FY2026
When: 2026-10-21
Net interest margin at the 5.18% threshold in the expected earnings announcement
Net loan charge-offs at the 9.2 million dollar threshold in the expected earnings announcement
Loan-to-deposit ratio at the 96.4% threshold in the expected earnings announcement
The median analyst target was 30 dollars in the 2026-10-19 snapshot, a low-confidence indicative estimate because it relies on one analyst and reflects growth and profitability expectations. The industry-multiple value is 20 dollars, within a range of 17 dollars to 25 dollars, based on a median price-to-book multiple of 1.2 across 335 companies, measuring the value implied by pricing the bank on its book value like its peers. The analyst target is above the range produced by the industry-multiple method, and the difference reflects the weight of growth expectations in the former versus the book value benchmark in the latter, alongside analysts' inherently optimistic targets. Piper Sandler's increase in its target from 26 dollars to 30 dollars on 2026-07-27 is consistent with its improved expectations, but does not eliminate the limitations of research coverage.
Figures in the text are as of 2026-10-20; the live price is shown at the top of the page.
Old Second Bancorp relies on net interest income from deposit-funded lending, alongside wealth management and mortgage banking fees. Net revenue was 88.8 million dollars in quarter 2 of fiscal year 2026, ended 2026-06-30, with a net interest margin of 5.23%. National Specialty Lending adds a specialized recreational vehicle financing business whose contribution margin exceeded 8.5% in that quarter, but it also recorded net loan charge-offs of 2.8 million dollars.
Nonperforming assets declined by 25% and special mention loans by 30% compared with the previous quarter in quarter 2 of fiscal year 2026, ended 2026-06-30. However, net loan charge-offs were 9.2 million dollars in the same period, including a warehousing and distribution exposure, an office property, and recreational vehicle financing. Management said on the 2026-07-23 call that the commercial and industrial exposure remained on the balance sheet and that it expected to resolve it during quarter 3 of fiscal year 2026, making completion of that resolution a test of credit improvement.
Automated analysis for informational purposes only — not investment advice.
The diluted share count was 52.1 million shares in quarter 2 of fiscal year 2026, ended 2026-06-30, compared with 45.8 million shares in quarter 2 of fiscal year 2025, ended 2025-06-30, an increase of 13.7%. In quarter 2 of fiscal year 2026, the bank repurchased 732 thousand shares, but the diluted share base remained above the comparison period. The board approved a new program to repurchase approximately 2.5 million shares through 2027-06-30, making the effect of actual execution on the share count and earnings per share an important item to monitor.
Net interest margin is a key test, as management estimated it at approximately 5.18% for quarter 3 of fiscal year 2026 compared with 5.23% in quarter 2 of fiscal year 2026, ended 2026-06-30. Credit quality is equally important following net loan charge-offs of 9.2 million dollars in quarter 2 of fiscal year 2026. Deposit trends will also clarify the bank's ability to fund loans after the loan-to-deposit ratio reached 96.4% in that quarter, amid the competition management described on the 2026-07-23 call.