Old Second Bancorp, Inc. Reports Third Quarter 2026 Net Income of $28.9 Million, or $0.56 per Diluted Share

AURORA, IL / ACCESS Newswire / October 21, 2026 / Old Second Bancorp, Inc. (the "Company," "Old Second," "we," "us," and "our") (NASDAQ:OSBC), the parent company of Old Second National Bank (the "Bank"), today announced financial results for the third quarter of 2026. Our net income was $28.9 million, or $0.56 per diluted share, for the third quarter of 2026, compared to net income of $28.2 million, or $0.54 per diluted share, for the second quarter of 2026. Adjusted net income(1) was $28.5 million, or adjusted diluted earnings per share(1) of $0.55, for the third quarter of 2026, compared to adjusted net income(1) of $28.7 million, or adjusted diluted earnings per share(1) of $0.55, for the second quarter of 2026.

Notable Items(2) * Net interest and dividend income was $84.0 million, reflecting an increase of $720,000, or 0.86%. * Net interest margin (NIM) on a fully tax-equivalent basis(1) was 5.27%, an increase of four basis points. * Provision for credit losses of $6.8 million compared to $7.5 million, a decrease of $750,000. * Noninterest income was $13.1 million, a decrease of $191,000, or 1.44%, compared to $13.3 million. * Noninterest expense was $51.6 million, an increase of $370,000, or 0.72%, compared to $51.3 million. * Efficiency ratio increased 62 basis points to 52.34%; adjusted efficiency ratio was 52.06%(1). * Provision for income tax of $9.8 million, compared to $9.7 million, with an effective tax rate of 25.31% and 25.53%, respectively. * Return on average assets of 1.69%, compared to 1.65%. * Return on average tangible common equity (ROATCE)(1) of 15.77%; adjusted ROATCE(1) of 15.53%. * On October 20, 2026, our Board of Directors declared a cash dividend of $0.08 per share of common stock, payable on November 9, 2026, to stockholders of record as of October 30, 2026. Chairman, President and Chief Executive Officer Jim Eccher said, "Old Second reported strong results in the third quarter of 2026 led by robust margin performance and disciplined operating efficiency. Loan losses remained higher than we wanted this quarter due to one previously identified commercial relationship, but the trends are extremely encouraging with nonperforming and classified loans declining by 30% and 44%, respectively. Criticized loans, an early indicator of future credit trends, also improved significantly during the quarter and now stand at just 1.88% of total loans, compared to 3.05% last quarter. Criticized assets also declined significantly quarter over quarter, decreasing to 1.91% of total loans from 3.08% in the previous quarter. Profitability remains excellent with the tax-equivalent net interest margin increasing by four basis points this quarter to 5.27%, which demonstrates the benefits of a strong core deposit base and diversified loan portfolio. This level of performance and a strong capital position afforded Old Second the opportunity to repurchase 1.5 million common shares this quarter, or approximately 3% of all outstanding shares. Third quarter return on average assets and return on average tangible common equity were 1.69% and 15.77%, respectively, and the efficiency ratio was a very healthy 52.34%. Based on the strength of the balance sheet and income statement trends, Old Second elected in this fourth quarter to increase the common dividend by 14%, as we continue to regularly deliver dividend growth commensurate with the bank's performance. We are proud of our performance for the quarter, believe we have turned the corner on credit and look forward to delivering solid results to our stockholders for the remainder of the year."