Old Second (OSBC) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 23, 2026 astatine 10:10 AM CDT 23 min read

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Thursday, April 23, 2026 astatine 10 a.m. ET

• President and Chief Executive Officer — James L. Eccher

• Chief Financial Officer — Bradley S. Adams

• Executive Vice President, Powersports and Specialty Lending — Darin Campbell

James L. Eccher: Hey. Good morning, and convey you for joining us. I person respective prepared opening remarks. I volition springiness you my overview of the 4th and past crook it implicit to Brad for further color. We volition past reason with definite summary comments and thoughts astir the aboriginal earlier we unfastened it up to Q&A. From a GAAP perspective, nett income was 25.6 cardinal dollars, oregon $0.48 per diluted stock successful the archetypal quarter, and instrumentality connected assets was 1.51%. First 4th 2026 instrumentality connected mean tangible communal equity was 14.2%, and the tax-equivalent ratio ratio was 52.4%.

Excluding each adjustments, which see MSR valuation adjustments and costs related to the 2025 acquisition of Bancorp Financial and its wholly owned subsidiary Evergreen Bank Group, nett income for the archetypal 4th was 26 cardinal dollars, oregon $0.49 per diluted share. First 4th 2026 net were impacted by 9.8 cardinal dollars of nett indebtedness charge-offs, which chiefly included a commercialized existent property capitalist charge-off of 3.9 cardinal dollars for an bureau spot located successful Downtown Chicago. The spot experienced immoderate vacancy and an updated valuation that was astir 50% little than anterior estimates. The spot present currency flows adequately astatine the caller carrying worth aft a restructuring.

A commercialized and concern charge-off of 1.3 cardinal dollars successful the warehousing and organisation abstraction has seen its currency travel presumption deteriorate implicit the past year. And lastly, nett charge-offs related to the powersport concern totaled 3.9 cardinal dollars, a comparatively higher-than-normal level owed to immoderate seasonality and continuing user lending softness accordant with what is being seen successful the broader economy. Tangible publication worth per stock accrued to $14.35 arsenic of 03/31/2026 from $14.12 arsenic of 12/31/2025. The tangible equity ratio accrued 5 ground points from past quarter, from 11.02% to 11.07%, and is 73 ground points higher than the similar play 1 twelvemonth ago.

Common Equity Tier 1 was 13.13% successful the archetypal quarter, expanding from 12.99% past quarter, but decreasing 34 ground points from a twelvemonth ago. Our fiscal show continued to bespeak an exceptionally beardown nett involvement borderline astatine 5.14% for the archetypal quarter. That is simply a 5 ground constituent betterment from past 4th and a 26 ground constituent summation implicit the anterior similar 4th connected a tax-equivalent basis. Pre-provision nett revenues decreased successful the archetypal 4th from the anterior 4th chiefly owed to time count, little indebtedness balances, and a diminution successful rates overall. Cost of deposits was 105 ground points for the archetypal 4th compared to 115 ground points for the anterior linked 4th and 83 ground points for 2025.