# Old Second Bancorp, Inc > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/Old Second Bancorp, Inc). ## Overview 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. ## Products & services • Consumer and business checking, savings, money market, and CDs • Commercial mortgages, commercial loans, and construction lending • Residential mortgages and consumer lending • Treasury management and deposit services • Wealth management, trust, fiduciary, and custodial services • Investment advisory and estate administration - **Deposit products** (35%) — Checking, savings, money market, time deposit, and retirement accounts. - **Commercial lending** (30%) — Commercial mortgages, business loans, leases, and construction lending. - **Consumer and residential lending** (15%) — Residential mortgages, consumer loans, and related loan sales activity. - **Wealth management and trust** (15%) — Trust administration, fiduciary services, and investment management. - **Other noninterest services** (5%) — Treasury management, card income, service charges, and other fees. - Consumer and business checking, savings, money market, and CDs - Commercial mortgages, commercial loans, and construction lending - Residential mortgages and consumer lending - Treasury management and deposit services - Wealth management, trust, fiduciary, and custodial services - Investment advisory and estate administration ## 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** (primary) — Individuals and households buying checking, savings, CDs, mortgages, and consumer loans through the branch network. - **Small and medium-sized businesses** (primary) — Local businesses using commercial loans, deposits, and treasury management for working capital and operations. - **Wealth management and trust clients** (secondary) — Individuals, estates, corporations, and nonprofits buying fiduciary, advisory, and custodial services. - **Public sector and associations** (secondary) — Governmental authorities, associations, and organizations placing deposits and using banking services. - Individuals using branch-based deposit and mortgage products - Small and medium-sized businesses needing credit and treasury services - Local organizations and governmental entities placing operating deposits - Trust, estate, and fiduciary clients seeking administration services - Employee benefit plans and charitable foundations using investment services ## 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. - **Northern Illinois / Greater Chicago area** (100%) — Operations and branches are concentrated in Illinois counties around Chicago and Aurora. - Headquartered in Aurora, Illinois - Branch network spans seven counties in northern Illinois - Core market is the greater Chicago metropolitan area - Local geography supports relationship banking and deposit gathering - Concentrated market exposure ties results to Illinois economic conditions ## 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 lending** (medium-term) — Stable local deposits and client relationships support funding and loan growth. - **Expand wealth management and trust income** (medium-term) — Fee-based services diversify revenue beyond net interest income. - **Preserve credit quality and underwriting discipline** (short-term) — Loan losses and collateral weakness can quickly affect a community bank. - Grow relationship-based lending and core deposits in northern Illinois - Expand fee income through wealth management and trust services - Maintain disciplined underwriting and credit quality - Use branch network and acquisitions to deepen local market share - Balance spread income with noninterest income diversification ## 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. - **Credit deterioration in the loan portfolio** [high] — The company lends against commercial, real estate, and consumer collateral, so borrower stress can increase charge-offs and provisions. - **Interest rate risk** [high] — Net interest income depends on the timing and speed of repricing between assets and liabilities. - **Local market concentration** [medium] — Operations are concentrated in a limited set of Illinois counties, making results sensitive to regional economic weakness. - **Competitive pressure** [medium] — Large banks, credit unions, mortgage firms, and fintechs can compete on rates, convenience, and product breadth. - Credit losses can rise if borrowers weaken or collateral values fall - Interest rate changes affect funding costs, loan yields, and mortgage activity - Geographic concentration ties performance to northern Illinois conditions - Competition from larger banks and fintechs can pressure pricing and deposits - Liquidity concerns in the banking sector can influence depositor confidence ## Accounting The most important accounting judgments are the allowance for credit losses and fair value measurements, both of which depend on estimates about borrower performance, collateral, and market conditions. Banking results also reflect quarter-to-quarter swings in net interest income, provisions, and mortgage-related income, so timing and valuation assumptions can materially affect reported earnings. Wealth management fees, mortgage servicing rights, and BOLI-related items add further estimate sensitivity. - **Allowance for credit losses** — Can materially affect earnings and reserve levels - **Fair value measurements** — Can create volatility in noninterest income and equity - **Mortgage servicing rights** — Can cause gains or losses in noninterest income - **BOLI accounting** — Affects noninterest income - Allowance for credit losses depends on borrower and collateral assumptions - Fair value estimates affect securities, MSRs, and other marked assets - Mortgage servicing rights can create valuation gains or losses - BOLI cash value and death benefits can move with market conditions - Quarterly earnings can vary with provision timing and interest rate changes --- *Last updated: 2026-04-29T04:42:40.487633+00:00*