Old Second Bancorp Q3 adjusted net income misses estimates

Old Second Bancorp

21/10/2026 22:48

Overview
US regional bank's Q3 adjusted net income missed analyst expectations
Company repurchased 1.5 mln shares, about 3% of outstanding stock and increased Q4 dividend by 14%
Credit quality improved as nonperforming and criticized loans declined sharply

Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers
NET INTEREST MARGIN - Co said net interest margin rose four basis points to 5.27% due to strong core deposit base and diversified loan portfolio
CREDIT QUALITY IMPROVEMENT - Co said nonperforming and classified loans declined, and criticized loans fell to 1.88% of total loans from 3.05% last quarter
MORTGAGE BANKING INCOME - Co said mortgage banking income increased due to mark-to-market gains on mortgage servicing rights

Company press release: ID:nACS6j621a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted Net Income
Miss
$28.50 mln
$29.92 mln (6 Analysts)
Q3 Net Income
 
$28.94 mln
 
Q3 Net Interest Income
 
$84.05 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Old Second Bancorp, Inc is $29.00, about 15.5% above its October 20 closing price of $25.10
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin 
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 21 - Pinnacle Financial Partners Q3 adjusted profit beats estimates on loan, fee income growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)