Old Second Bancorp (NASDAQ:OSBC) Shares Gap Down on Disappointing Earnings

Key Points

• Earnings miss: Old Second reported EPS of $0.49 versus a $0.52 consensus and revenue of $93.77M vs. $94.8M, prompting shares to gap down (closed $21.21, opened $19.85) and trade roughly 3.2% lower.
• Quarterly dividend: The board declared $0.07 per share (annualized $0.28) with an ex‑dividend date of May 1 and a yield of about 1.4%, representing a payout ratio near 17%.
• Insider selling has been notable (37,091 shares sold in the past 90 days, including two large transactions), while analysts still show a consensus “Moderate Buy” with an average price target of $23.38.

Old Second Bancorp, Inc. (NASDAQ:OSBC - Get Free Report) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $21.21, but opened at $19.85. Old Second Bancorp shares last traded at $20.5190, with a volume of 125,911 shares trading hands.

The financial services provider reported $0.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.52 by ($0.03). The business had revenue of $93.77 million for the quarter, compared to analysts' expectations of $94.80 million. Old Second Bancorp had a return on equity of 12.79% and a net margin of 20.00%.

Old Second Bancorp Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, May 11th. Investors of record on Friday, May 1st will be given a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 1.4%. The ex-dividend date is Friday, May 1st. Old Second Bancorp's dividend payout ratio (DPR) is currently 17.18%.

Old Second Bancorp News Summary

Here are the key news stories impacting Old Second Bancorp this week:

• Positive Sentiment: Board declared a quarterly cash dividend of $0.07 per share (record May 1, payable May 11), supporting income investors and signaling capital return discipline. Dividend Announcement / MarketBeat
• Neutral Sentiment: Press release: company reported first‑quarter net income of $25.6M, or $0.48 per diluted share, down from $28.8M ($0.54) in Q4 2025 — confirms profitability but shows a sequential decline. Company Q1 Press Release
• Neutral Sentiment: Coverage notes revenue roughly in line with expectations (~$93.8M vs. ~$94.8M consensus), so topline wasn’t a major surprise but left little upside. MSN: Revenue In Line
• Neutral Sentiment: Pre‑earnings/preview coverage discussed key items to watch for Q1 (loan growth, margins, credit trends) but contained no new surprises that would materially change near‑term outlook. Yahoo: What To Expect From Q1
• Neutral Sentiment: Local earnings snapshot and transcripts add context on management commentary and quarter dynamics but do not contradict the published results. Stamford Advocate Q1 Snapshot
• Neutral Sentiment: Archive/transcript material from prior quarter available for those modeling trends in margins and loan performance. Q4 2025 Earnings Transcript
• Negative Sentiment: Earnings miss: reported EPS of $0.49 (or $0.48 diluted per press release) missed the consensus ~$0.52, which is the primary driver of the down‑day as analysts re‑price near‑term earnings. Company EPS Release / MarketBeat
• Negative Sentiment: Analyst coverage highlighting the miss: Zacks and others emphasize the $0.03 EPS shortfall versus the Zacks consensus and compare key metrics unfavorably to expectations — increasing the risk of short‑term analyst downgrades or lowered estimates. Zacks: Q1 Earnings Miss

Analyst Ratings Changes

A number of equities research analysts have recently commented on OSBC shares. Stephens began coverage on Old Second Bancorp in a research report on Friday, March 27th. They set an "overweight" rating and a $23.00 target price on the stock. DA Davidson upped their price target on Old Second Bancorp from $22.00 to $23.00 and gave the stock a "neutral" rating in a report on Friday, January 23rd. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Old Second Bancorp in a research report on Thursday, January 22nd. Four investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $23.38.

Insider Activity

In other news, EVP Richard A. Gartelmann, Jr. sold 2,000 shares of the business's stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $20.98, for a total transaction of $41,960.00. Following the transaction, the executive vice president directly owned 24,874 shares in the company, valued at $521,856.52. The trade was a 7.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Darin Patrick Campbell sold 35,000 shares of the company's stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $20.94, for a total value of $732,900.00. Following the completion of the sale, the insider owned 274,589 shares of the company's stock, valued at $5,749,893.66. This trade represents a 11.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 37,091 shares of company stock valued at $776,744. 3.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Old Second Bancorp

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Los Angeles Capital Management LLC increased its stake in shares of Old Second Bancorp by 1.8% in the 4th quarter. Los Angeles Capital Management LLC now owns 28,606 shares of the financial services provider's stock worth $519,000 after acquiring an additional 493 shares during the last quarter. Nisa Investment Advisors LLC boosted its position in shares of Old Second Bancorp by 12.7% during the 4th quarter. Nisa Investment Advisors LLC now owns 4,776 shares of the financial services provider's stock valued at $93,000 after acquiring an additional 540 shares during the last quarter. Quadrant Capital Group LLC grew its holdings in shares of Old Second Bancorp by 32.7% in the fourth quarter. Quadrant Capital Group LLC now owns 2,523 shares of the financial services provider's stock valued at $49,000 after purchasing an additional 622 shares during the period. Russell Investments Group Ltd. grew its holdings in shares of Old Second Bancorp by 0.8% in the fourth quarter. Russell Investments Group Ltd. now owns 112,121 shares of the financial services provider's stock valued at $2,186,000 after purchasing an additional 908 shares during the period. Finally, Hudson Edge Investment Partners Inc. increased its position in Old Second Bancorp by 1.6% during the third quarter. Hudson Edge Investment Partners Inc. now owns 61,653 shares of the financial services provider's stock worth $1,066,000 after purchasing an additional 979 shares during the last quarter. Institutional investors and hedge funds own 67.76% of the company's stock.

Old Second Bancorp Stock Down 3.2%

The company has a debt-to-equity ratio of 0.11, a current ratio of 0.91 and a quick ratio of 0.91. The company has a market capitalization of $1.06 billion, a PE ratio of 12.58 and a beta of 0.74. The business's 50 day simple moving average is $20.33 and its 200 day simple moving average is $19.64.

Old Second Bancorp Company Profile

Old Second Bancorp, Inc is a bank holding company based in Aurora, Illinois, serving businesses and consumers through its primary subsidiary, Old Second National Bank. The company provides a broad range of commercial and retail banking services across the suburban Chicago marketplace, supported by a branch network and online platforms designed to meet the financial needs of local communities.

In its commercial banking division, Old Second offers lending solutions that include lines of credit, term loans, equipment financing and commercial real estate financing.

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