Old Second Reports Q1 Net Income $25.6M, EPS 48¢ vs 52¢ Forecast
Old Second Bancorp reported Q1 net income of $25.6 million, or $0.48 per share ($0.49 adjusted), missing analyst forecasts of $0.52 on net revenue of $93.8 million. Net interest margin expanded 5 basis points to 5.14%, while provision for credit losses rose to $9.5 million driven by higher nonperforming loans.
1. First-Quarter Financial Results
Old Second Bancorp posted Q1 net income of $25.6 million, or $0.48 per share ($0.49 adjusted), down from $28.8 million, or $0.54, in Q4. Total revenue was $111 million with net revenue of $93.8 million, beating forecasts by $0.3 million.
2. Net Interest Income and Margin
Net interest and dividend income totaled $81.1 million, a 2.3% decrease sequentially, while fully tax-equivalent net interest margin improved by 5 basis points to 5.14%.
3. Credit Quality and Provisions
Provision for credit losses rose to $9.5 million from $3.0 million, driven by increased nonperforming loans of $75.5 million (1.46% of total loans) and higher past-due balances in a few commercial relationships.
4. Capital Management and Dividends
On April 15, the bank paid down $30 million of subordinated debt due 2031 and repurchased $23.1 million of common stock. On April 21, it declared a $0.07 per share cash dividend payable May 11, 2026.