Nasdaq
华尔街日报Old Second Bancorp’s (NASDAQ:OSBC) Q3 CY2025: Strong Sales
Midwest regional bank Old Second Bancorp (NASDAQ:OSBC) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 34.6% year on year to $96.22 million. Its non-GAAP profit of $0.53 per share was 4.6% above analysts’ consensus estimates.
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Old Second Bancorp (OSBC) Q3 CY2025 Highlights:
- Net Interest Income: $82.78 million vs analyst estimates of $80.66 million (36.6% year-on-year growth, 2.6% beat)
- Net Interest Margin: 5.1% vs analyst estimates of 4.8% (22.5 basis point beat)
- Revenue: $96.22 million vs analyst estimates of $92.87 million (34.6% year-on-year growth, 3.6% beat)
- Efficiency Ratio: 52.1% vs analyst estimates of 57.2% (507.3 basis point beat)
- Adjusted EPS: $0.53 vs analyst estimates of $0.51 (4.6% beat)
- Tangible Book Value per Share: $13.51 vs analyst estimates of $12.96 (7.2% year-on-year growth, 4.2% beat)
- Market Capitalization: $1.03 billion
Company Overview
Dating back to 1871 as one of the Chicago area's longest-standing financial institutions, Old Second Bancorp (NASDAQ:OSBC) is an Illinois-based community bank offering deposit services, commercial and consumer loans, wealth management, and mortgage products through its 53 branch locations.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, Old Second Bancorp grew its revenue at an exceptional 19.5% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Old Second Bancorp’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 4.7% over the last two years was well below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Old Second Bancorp reported wonderful year-on-year revenue growth of 34.6%, and its $96.22 million of revenue exceeded Wall Street’s estimates by 3.6%.
Net interest income made up 81.3% of the company’s total revenue during the last five years, meaning Old Second Bancorp barely relies on non-interest income to drive its overall growth.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Old Second Bancorp’s TBVPS grew at an impressive 7.6% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 17.9% annually over the last two years from $9.72 to $13.51 per share.
Over the next 12 months, Consensus estimates call for Old Second Bancorp’s TBVPS to grow by 14.8% to $15.51, decent growth rate.
Key Takeaways from Old Second Bancorp’s Q3 Results
We enjoyed seeing Old Second Bancorp beat analysts’ tangible book value per share expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $19.47 immediately after reporting.
Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.