# Old Second Bancorp Reports $28.9 Million Q3 Profit, Raises Dividend 14%

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/37741
Published: 2026-10-22T10:45:50.000Z
Updated: 2026-10-22T10:45:50.000Z
Section: Business

> The $0.08 quarterly dividend is payable Nov. 9 to stockholders of record Oct. 30. Nonperforming and classified loans both declined from the prior quarter.

Old Second Bancorp posted $28.94 million in third-quarter net income and raised its quarterly dividend 14%, pairing higher sequential earnings with a larger cash payment to shareholders.

For the quarter ended Sept. 30, diluted earnings were $0.56 per share and net income reached $28.940 million. The comparable second-quarter figures were $0.54 a share and $28.179 million. Adjusted net income was $28.5 million, with adjusted diluted earnings of $0.55 per share.

Net interest income totaled $84.049 million and noninterest income was $13.070 million, for a combined $97.119 million. Fully tax-equivalent net interest margin climbed four basis points from the prior quarter to 5.27%. The provision for credit losses fell to $6.750 million from $7.500 million.

Nonperforming loans declined to $39.6 million from $56.5 million, while classified loans were $74.2 million, compared with $132.1 million in the second quarter. Charge-offs exceeded expectations, with one commercial relationship accounting for the concentration. Old Second Chairman, President and CEO Jim Eccher said, “Loan losses remained higher than we wanted this quarter due to one previously identified commercial relationship.”

Old Second Bancorp declared a quarterly dividend of $0.08 per share, up from the $0.07 dividend declared in July. The payment is due Nov. 9 to stockholders of record Oct. 30. The company also repurchased 1,533,104 shares during the quarter at an average price of $25.76 each, reducing capital by $39.5 million, including excise taxes.

An earnings call is scheduled for 10 a.m. ET (14:00 UTC) Thursday, Oct. 22.