Midwest regional bank Old Second Bancorp (NASDAQ: OSBC) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 27.7% year on year to $93.77 million. Its non-GAAP profit of $0.49 per share was 4.7% below analysts’ consensus estimates.
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Old Second Bancorp (OSBC) Q1 CY2026 Highlights:
- Net Interest Income: $81.14 million vs analyst estimates of $80.87 million (29% year-on-year growth, in line)
- Net Interest Margin: 5.1% vs analyst estimates of 5.1% (8.8 basis point beat)
- Revenue: $93.77 million vs analyst estimates of $93.42 million (27.7% year-on-year growth, in line)
- Efficiency Ratio: 52.4% vs analyst estimates of 55% (256.8 basis point beat)
- Adjusted EPS: $0.49 vs analyst expectations of $0.51 (4.7% miss)
- Tangible Book Value per Share: $14.35 vs analyst estimates of $14.53 (11.4% year-on-year growth, 1.2% miss)
- Market Capitalization: $1.11 billion
Company Overview
Dating back to 1871 as one of the Chicago area's longest-standing financial institutions, Old Second Bancorp (NASDAQ: OSBC) is an Illinois-based community bank offering deposit services, commercial and consumer loans, wealth management, and mortgage products through its 53 branch locations.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Thankfully, Old Second Bancorp’s 21.5% annualized revenue growth over the last five years was incredible. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Old Second Bancorp’s annualized revenue growth of 12.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Old Second Bancorp’s year-on-year revenue growth of 27.7% was excellent, and its $93.77 million of revenue was in line with Wall Street’s estimates.
Net interest income made up 83% of the company’s total revenue during the last five years, meaning Old Second Bancorp barely relies on non-interest income to drive its overall growth.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Old Second Bancorp’s TBVPS grew at an impressive 7.5% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 13.6% annually over the last two years from $11.13 to $14.35 per share.
Over the next 12 months, Consensus estimates call for Old Second Bancorp’s TBVPS to grow by 15.6% to $16.59, solid growth rate.
Key Takeaways from Old Second Bancorp’s Q1 Results
We struggled to find many positives in these results. Its EPS missed and its tangible book value per share fell slightly short of Wall Street’s estimates. Overall, this was a softer quarter. The stock remained flat at $21.24 immediately following the results.
Old Second Bancorp’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
