Midwest regional bank Old Second Bancorp (NASDAQ: OSBC) met Wall Streets revenue expectations in Q4 CY2025, with sales up 29.5% year on year to $95.21 million. Its non-GAAP profit of $0.58 per share was 8.1% above analysts’ consensus estimates.
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Old Second Bancorp (OSBC) Q4 CY2025 Highlights:
- Net Interest Income: $83.05 million vs analyst estimates of $82.45 million (34.9% year-on-year growth, 0.7% beat)
- Net Interest Margin: 5.1% vs analyst estimates of 5% (8.3 basis point beat)
- Revenue: $95.21 million vs analyst estimates of $95.29 million (29.5% year-on-year growth, in line)
- Efficiency Ratio: 54% vs analyst estimates of 54.3% (36.2 basis point beat)
- Adjusted EPS: $0.58 vs analyst estimates of $0.54 (8.1% beat)
- Tangible Book Value per Share: $14.12 vs analyst estimates of $13.99 (14% year-on-year growth, 0.9% beat)
- Market Capitalization: $1.07 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
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Thankfully, Old Second Bancorp’s 21.1% annualized revenue growth over the last five years was incredible. 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 8.8% 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’s year-on-year revenue growth of 29.5% was excellent, and its $95.21 million of revenue was in line with Wall Street’s estimates.
Net interest income made up 82% 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)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. 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 7.7% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 14.7% annually over the last two years from $10.73 to $14.12 per share.
Over the next 12 months, Consensus estimates call for Old Second Bancorp’s TBVPS to grow by 13.6% to $16.05, decent growth rate.
Key Takeaways from Old Second Bancorp’s Q4 Results
It was good to see Old Second Bancorp beat analysts’ EPS expectations this quarter. We were also happy its tangible book value per share narrowly outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $21.46 immediately following the results.
Should you buy the stock or not? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
