OSBC · Old Second Bancorp, Inc.

Old Second Bancorp, Inc. (OSBC) reported solid Q1 2026 financial results, with net income of $25.6 million, up 29.0% from $19.8 million in the prior year quarter. This improvement in profitability, alongside diluted EPS of $0.48 (up 11.6% from $0.43), underscores the positive momentum from the Bancorp Financial acquisition. The acquisition drove higher loan yields that outpaced the elevated cost of deposits, contributing to net interest margin expansion compared to Q1 2025. A 41-basis point rise in savings account costs, stemming from higher-rate deposit accounts assumed in the deal, represented a notable pressure point but was offset by yield improvements.

Management commentary highlights proactive risk management, including addressing interest rate risk, disciplined expense control, and daily liquidity oversight. The net interest margin also improved linked-quarter due to lower costs of interest-bearing liabilities. Looking forward, the company plans to control funding costs by monitoring market conditions and allowing exception-priced deposits and brokered CDs from Bancorp Financial to runoff naturally. The Bank remains well-positioned for macroeconomic uncertainty, supported by these operational strengths and cash flow resilience.