# Old Second Bancorp Q3 2026 Earnings Results

> Old Second Bancorp reports strong Q3 2026 earnings with improved credit metrics and strategic partnerships.
- Title: Old Second Bancorp Q3 2026 Earnings Results · The Motley Fool
- Summary: Old Second Bancorp reports strong Q3 2026 earnings with improved credit metrics and strategic partnerships. Old Second Bancorp achieved $28.9 million net…
- Keywords: old second bancorp, osbc, q3 2026, earnings call, net interest margin, classified loans, criticized loans, dividend increase, share repurchases, ducati usa, finance, money
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/22/old-second-bancorp-osbc-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-22T16:54:09+00:00
- Read time: 1 min
- Topics: old second bancorp, osbc, q3 2026, earnings call, net interest margin, classified loans, criticized loans, dividend increase, share repurchases, ducati usa, finance, money
## Q3 2026 Earnings
Old Second Bancorp reported net income of $28.9 million for Q3 2026, or $0.56 per diluted share.
## Net Interest Margin
Net interest margin improved to 5.27% on a tax-equivalent basis, a 4 basis point increase from Q2 2026.
## Loan Charge-offs
Net loan charge-offs totaled $12.7 million, primarily from a single commercial relationship and powersport loans.
## Classified Loans
Classified loans decreased by $57.8 million to $74.2 million, the lowest level since before the pandemic.
## Criticized Loans
Criticized loans declined by $61.3 million, or 38%, to 1.88% of total loans.
## Efficiency Ratio
Efficiency ratio stood at 52.34% on a GAAP basis, with an adjusted ratio of 52.06%.
## Return on Equity
Return on average tangible common equity reached 15.77% for Q3 2026.
## Share Repurchases
Company repurchased 1.5 million shares for $39.5 million, reducing outstanding shares by 3%.
## Dividend Increase
Common dividend increased by 14% to $0.08 per share, payable Nov. 9, 2026.
## Total Loans
Total loans declined slightly to $5.24 billion due to prepayment activity and portfolio reduction.
## Total Deposits
Total deposits decreased by $117.1 million, reflecting seasonal runoff and high-cost deposit attrition.
## Allowance for Credit Losses
Allowance for credit losses decreased to $64.2 million, or 1.23% of total loans.
## Mortgage Servicing Rights
Mortgage servicing rights increased by $623,000 due to higher market interest rates.
## Ducati Partnership
Signed multiyear agreement with Ducati USA to boost loan originations in late 2026 and 2027.
## Loan Growth Outlook
Targeted low single-digit growth for Q4 2026, supported by middle market and small business segments.
## Repricing Tailwinds
45% of loan book and 25% of securities portfolio expected to reprice within 3-4 quarters.
## Key takeaway

Old Second Bancorp achieved $28.9 million net income for Q3 2026 with a 5.27% net interest margin and reduced credit risk.