OSBC Old Second Bancorp (OSBC) Q2 FY26 earnings call
Old Second Bancorp delivered a strong second quarter, marked by significant net interest margin expansion and notable improvements in credit quality, particularly a 30% reduction in special mention loans. Despite elevated charge-offs from previously identified credits, management expressed optimism for future credit trends and continued strong operating leverage. The bank remains active in share repurchases, with a new authorization for 2.5 million shares, while also seeking strategic M&A opportunities.
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OSBC operating KPIs by quarter
| KPI | This call Jun 2026 Q2 FY26 | Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|
| Return on tangible common equity (ROTCE) | 15.58%Second quarter 2026 return on average tangible common equity was 15.58%, and the tax equivalent efficiency ratio was 51.72%.Source: earnings call transcript | 15.77%Return on assets was 1.69% Third quarter 2026 return on average tangible common equity was 15.77% and the efficiency ratio was 52.34%.Source: earnings call transcript | +0.2 pt |
| Net interest margin | 5.23%Our financials reflect an exceptionally strong net interest margin of 5.23% for the second quarter.Source: earnings call transcript | 5.27%Our financials reflect an exceptionally strong net interest margin at 5.27% for the third quarter of 2026.Source: earnings call transcript | 0 pt |
| Loan-to-deposit ratio | 96.4%The loan-to-deposit ratio stands at 96.4% as of June 30 compared to 93.2% last quarter and 83.3% as of June 30, 2025.Source: earnings call transcript | 98.3%Loan-to-deposit ratio is now 98.3% at the end of the third quarter compared to 96.4% last quarter and 91.4% as of September 30, 2025.Source: earnings call transcript | +1.9 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.