Old Second Bancorp, Inc. (OSBC) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and thank you for joining us today for Old Second Bancorp, Inc.'s second quarter 2026 earnings call. On the call today are Jim Eccher, the company's chairman, president, and CEO, Brad Adams, the company's COO and CFO, Darren Campbell, the company's head of national specialty lending, and Gary Collins, the vice chairman of our board. I will start with a reminder that Old Second's comments today will contain forward-looking statements about the company's business, strategies, and prospects which are based on management's existing expectations in the current economic environment. These statements are not a guarantee of future performance and results may differ materially from those projected. Management would ask you to refer to the company's SEC filings for a full discussion of the company's risk factors. Okay, good morning and thank you for joining us. As customary, I have several prepared opening remarks, give my overview of the quarter, then turn it over to Brad for additional details. I will then conclude with certain summary comments and thoughts about the future before we open it up to Q&A. From a GAAP perspective, net income was $28.2 million, or $0.54 per diluted share in the second quarter, and return on assets was 1.65%. Second quarter 2026 return on average tangible common equity was 15.58% and the tax equivalent efficiency ratio was 51.72%. Excluding all adjusting items which include MSR valuation adjustments and the costs related to the 2025 acquisition of Bancorp Financial and its wholly owned subsidiary Evergreen Bank Group, net income for the quarter was $28.7 million, or $0.55 per diluted share. Second quarter earnings were impacted by $9.2 million of net loan charge-offs, which primarily included two credits that we discussed a...