Midwest regional bank Old Second Bancorp (NASDAQ: OSBC) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 28% year on year to $96.59 million. Its non-GAAP profit of $0.55 per share was in line with analysts’ consensus estimates.
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Old Second Bancorp (OSBC) Q2 CY2026 Highlights:
- Net Interest Income: $83.33 million vs analyst estimates of $82 million (29.7% year-on-year growth, 1.6% beat)
- Net Interest Margin: 5.2% vs analyst estimates of 5.1% (11 basis point beat)
- Revenue: $96.59 million vs analyst estimates of $95.05 million (28% year-on-year growth, 1.6% beat)
- Efficiency Ratio: 51.7% vs analyst estimates of 52.6% (87.5 basis point beat)
- Adjusted EPS: $0.55 vs analyst estimates of $0.55 (in line)
- Tangible Book Value per Share: $14.77 vs analyst estimates of $14.70 (9.9% year-on-year growth, in line)
- Market Capitalization: $1.22 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. Over the last five years, Old Second Bancorp grew its revenue at an incredible 23.5% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Old Second Bancorp’s annualized revenue growth of 15.8% 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 because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Old Second Bancorp reported robust year-on-year revenue growth of 28%, and its $96.59 million of revenue topped Wall Street estimates by 1.6%.
Net interest income made up 83.6% 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.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
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 12.6% annually over the last two years from $11.66 to $14.77 per share.
Over the next 12 months, Consensus estimates call for Old Second Bancorp’s TBVPS to grow by 13% to $16.69, decent growth rate.
Key Takeaways from Old Second Bancorp’s Q2 Results
It was encouraging to see Old Second Bancorp beat analysts’ revenue expectations this quarter. We were also happy its net interest income outperformed Wall Street’s estimates. On the other hand, its EPS was in line. Zooming out, we think this was a mixed quarter. The stock remained flat at $23.40 immediately following the results.
Big picture, is Old Second Bancorp a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
