OSBCNasdaqState Commercial BanksUS GAAP · USD

Old Second Bancorp, Inc

Old Second Bancorp Inc. is a Delaware bank holding company headquartered in Aurora, Illinois, operating through its wholly owned subsidiary, Old Second National Bank. The group provides community banking, commercial lending, deposit services, and wealth management through a branch network across several counties in the Chicago metropolitan area and nearby northern Illinois markets.

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Net income80.3m USD
−5.8 %y/y
Free cash flow118m USD
−2.5 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01m USD202020212022202320242025
RevenueOperating profit (EBIT)
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Business

Share of revenue
Deposit products35 %

Checking, savings, money market, time deposit, and retirement accounts.

Commercial lending30 %

Commercial mortgages, business loans, leases, and construction lending.

Consumer and residential lending15 %

Residential mortgages, consumer loans, and related loan sales activity.

Wealth management and trust15 %

Trust administration, fiduciary services, and investment management.

Other noninterest services5 %

Treasury management, card income, service charges, and other fees.

Customers

Old Second serves individuals, small and medium-sized businesses, and local organizations across its Illinois branch footprint. It also provides fiduciary, trust, and investment services to corporate, not-for-profit, retirement, and estate clients. The business is built around relationship banking, so customers typically value local decision-making, branch access, and a broad set of deposit, lending, and wealth services.

Retail banking customers

Individuals and households buying checking, savings, CDs, mortgages, and consumer loans through the branch network.

Small and medium-sized businesses

Local businesses using commercial loans, deposits, and treasury management for working capital and operations.

Wealth management and trust clients

Individuals, estates, corporations, and nonprofits buying fiduciary, advisory, and custodial services.

Public sector and associations

Governmental authorities, associations, and organizations placing deposits and using banking services.

Strategy

The company’s strategy centers on relationship banking, local market presence, and a diversified mix of lending, deposits, and fee-based services. It also emphasizes credit discipline, capital and liquidity management, and growth in noninterest income from wealth management and other fee businesses. Branch expansion and acquisitions have been used to deepen its footprint in adjacent Illinois markets.

Grow core deposits and relationship lendingMedium term

Stable local deposits and client relationships support funding and loan growth.

Expand wealth management and trust incomeMedium term

Fee-based services diversify revenue beyond net interest income.

Preserve credit quality and underwriting disciplineShort term

Loan losses and collateral weakness can quickly affect a community bank.

Geography

Old Second’s business is concentrated in northern Illinois, with banking centers in Cook, DeKalb, DuPage, Kane, Kendall, LaSalle, and Will counties. Its core market is the greater Chicago area and surrounding communities, where local branch presence and community relationships are important to deposit gathering and lending. The company does not present a broad national footprint; its performance is tied to economic conditions, competition, and credit quality in this Illinois market.

Risks

Old Second is exposed to credit risk, interest rate risk, and local economic conditions because most of its business is lending and deposit gathering in a concentrated Illinois market. Competition from larger banks, credit unions, mortgage companies, and fintech firms can pressure pricing and customer retention, while bank-industry liquidity concerns can affect depositor behavior. Its wealth management and mortgage businesses also create sensitivity to market rates and capital markets activity.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Interest rate risk1Credit deterioration in the loan portfolio2Local market concentration3Competitive pressure4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Interest rate riskImpact: HighLikelihood: High

    Net interest income depends on the timing and speed of repricing between assets and liabilities.

    ExposureDeposit costsLoan yieldsMortgage bankingSecurities values
  2. Credit deterioration in the loan portfolioImpact: HighLikelihood: Medium

    The company lends against commercial, real estate, and consumer collateral, so borrower stress can increase charge-offs and provisions.

    ExposureCommercial real estateConsumerSmall business lending
  3. Local market concentrationImpact: MediumLikelihood: Medium

    Operations are concentrated in a limited set of Illinois counties, making results sensitive to regional economic weakness.

    Exposure: Northern Illinois and greater Chicago area

  4. Competitive pressureImpact: MediumLikelihood: Medium

    Large banks, credit unions, mortgage firms, and fintechs can compete on rates, convenience, and product breadth.

    ExposureDepositsLoansWealth management
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Accounting

Judgemental items
Allowance for credit losses

Requires judgment on borrower repayment, collateral values, and economic outlook; changes flow through provision expense.

Impact: Can materially affect earnings and reserve levels

Fair value measurements

Used for securities, mortgage servicing rights, and other assets where market inputs and models matter.

Impact: Can create volatility in noninterest income and equity

Mortgage servicing rights

MSR values change with interest rates and prepayment expectations, affecting mortgage banking revenue.

Impact: Can cause gains or losses in noninterest income

BOLI accounting

Cash surrender value changes and death benefits are sensitive to market and policy assumptions.

Impact: Affects noninterest income

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Last updated: 24/09/2026