Old Second Bancorp (NASDAQ:OSBC) Shares Gap Down Following Weak Earnings

Old Second Bancorp, Inc. (NASDAQ:OSBC) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. 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 analysts’ consensus estimates of $0.52 by ($0.03). The firm had revenue of $93.77 million for the quarter, compared to analyst estimates 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 Dividend Announcement

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

Trending Headlines about Old Second Bancorp

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

OSBC has been the subject of a number of research analyst reports. DA Davidson increased 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. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Old Second Bancorp in a research report on Thursday, January 22nd. Finally, Stephens began coverage on shares of Old Second Bancorp in a research note on Friday, March 27th. They set an “overweight” rating and a $23.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, Old Second Bancorp presently has a consensus rating of “Moderate Buy” and an average price target of $23.38.

Insiders Place Their Bets

In related news, insider Darin Patrick Campbell sold 35,000 shares of the business’s stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $20.94, for a total value of $732,900.00. Following the sale, the insider owned 274,589 shares in the company, valued at approximately $5,749,893.66. The trade was a 11.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Richard A. Gartelmann, Jr. sold 2,000 shares of the stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $20.98, for a total value of $41,960.00. Following the transaction, the executive vice president directly owned 24,874 shares in the company, valued at approximately $521,856.52. The trade was a 7.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 37,091 shares of company stock valued at $776,744 over the last ninety days. Insiders own 3.80% of the company’s stock.

Institutional Trading of Old Second Bancorp

Several hedge funds have recently made changes to their positions in the business. Harbour Investments Inc. purchased a new position in shares of Old Second Bancorp in the fourth quarter valued at approximately $26,000. EverSource Wealth Advisors LLC increased its stake in Old Second Bancorp by 458.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,480 shares of the financial services provider’s stock worth $26,000 after buying an additional 1,215 shares during the period. Rockefeller Capital Management L.P. acquired a new stake in Old Second Bancorp during the 4th quarter worth approximately $27,000. State of Alaska Department of Revenue acquired a new stake in Old Second Bancorp during the 3rd quarter worth approximately $30,000. Finally, Parkside Financial Bank & Trust purchased a new position in Old Second Bancorp in the 4th quarter valued at approximately $45,000. Institutional investors and hedge funds own 67.76% of the company’s stock.

Old Second Bancorp Price Performance

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

About Old Second Bancorp

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.