Old Second Bancorp Ill Stock Price, News & Analysis

Old Second Bancorp, Inc. (NASDAQ: OSBC) is a bank holding company headquartered in Aurora, Illinois. It is the parent of Old Second National Bank, a national banking association and Member FDIC. According to company disclosures, Old Second National Bank has operated for more than a century and celebrated 150 years of operation in 2021. Old Second Bancorp is classified in the finance and insurance sector, with a primary focus on commercial banking and community banking activities.

The company states that it has one operating segment, which is community banking. Through this community banking segment, Old Second Bancorp provides consumer and commercial banking products. Based on available information, these products include demand, money market, savings, time deposit and individual retirement accounts. On the lending side, the company offers commercial, industrial, consumer and real estate lending, including installment loans, student loans, agricultural loans, lines of credit and overdraft checking. Old Second also reports that it conducts safe deposit operations, trust services and wealth management services, along with additional services tailored to the needs of individual customers, corporates and small to medium-sized enterprises.

Old Second Bancorp’s common stock trades on The Nasdaq Stock Market under the ticker symbol OSBC. The company identifies itself as the bank holding company for Old Second National Bank, which operates a network of locations in the Chicagoland area. Following its acquisition of Bancorp Financial, Inc. and the merger of Evergreen Bank Group into Old Second National Bank, Old Second reported that it had, on a pro forma basis as of March 31, 2025, approximately $6.98 billion in assets, $5.95 billion in deposits and $5.09 billion in loans, with 56 locations in the downtown, west and south suburban Chicago market.

Business model and revenue sources

Old Second Bancorp describes its revenue as consisting of interest, commission, payments and other income. Interest income is generated primarily from its loan portfolio and securities, while interest expense is associated with deposits and borrowings. The company’s earnings releases detail net interest and dividend income, provision for credit losses, noninterest income and noninterest expense as key components of its income statement. Noninterest income includes items such as fees and other banking-related income, while noninterest expense includes personnel, occupancy and other operating costs.

The company’s community banking model is reflected in its mix of products and services. It offers deposit accounts for individuals and businesses, a range of lending products across commercial, industrial, consumer and real estate categories, and related services such as safe deposit operations, trust services and wealth management services. Old Second also notes that it provides additional services tailored to individual customers, corporates and small-medium enterprises, which indicates a focus on serving both retail and business clients within its markets.

Growth, acquisitions and specialty lending

Old Second Bancorp has used acquisitions to expand its scale and capabilities. On July 1, 2025, the company completed its merger with Bancorp Financial, Inc., a bank holding company headquartered in Oak Brook, Illinois. Under the terms of the merger agreement, Bancorp Financial shareholders received a combination of Old Second common stock and cash for each share of Bancorp Financial common stock. Immediately following the holding company merger, Evergreen Bank Group, Bancorp Financial’s subsidiary bank, merged into Old Second National Bank, with Old Second National Bank continuing as the surviving bank.

Company communications describe the Bancorp Financial and Evergreen Bank Group combination as adding meaningful consumer lending capabilities and enhancing the flexibility and profitability of Old Second’s balance sheet. Old Second also reported that the loans acquired in the Bancorp Financial acquisition provided a significant increase to its consumer lending portfolio, including a powersport loan segment. In addition, Old Second has referenced prior branch purchase activity from another institution, which has contributed to its balance sheet growth and branch footprint.

Old Second National Bank also operates O2 Sponsor Finance, which is described in company news as a division of Old Second National Bank and a national provider of cash flow-based loans to lower middle market businesses. According to multiple press releases, O2 Sponsor Finance focuses on supporting private equity sponsors, independent sponsors and family offices in their acquisition or recapitalization of lower middle market companies. It typically works with businesses that have specified ranges of revenue and EBITDA, and it has closed numerous commitments across multiple platforms since its inception. These activities illustrate Old Second’s participation in sponsor finance and specialty lending in addition to its community banking operations.

Geographic focus and branch network

Old Second Bancorp reports that it is headquartered in Aurora, Illinois, and that Old Second National Bank operates locations throughout the Chicagoland area. Following the completion of the Bancorp Financial merger, Old Second stated that, on a pro forma basis as of March 31, 2025, it had 56 locations in the downtown, west and south suburban Chicago market. Subsequent communications related to the integration of Evergreen Bank Group note that former Evergreen branches have been converted to the Old Second National Bank name and that customers of those branches can bank at any of Old Second’s locations throughout the Chicagoland area.

In addition to its Illinois footprint, Old Second’s O2 Sponsor Finance division is described as a national provider of cash flow-based loans. This indicates that, while the core community banking operations are concentrated in the Chicago area, the sponsor finance activities reach lower middle market businesses across the United States through financing relationships with private equity sponsors and other investors.

Capital, asset quality and financial reporting

Old Second Bancorp regularly reports its financial results through quarterly earnings releases and related SEC filings. These disclosures include information on total assets, loans, deposits, securities, capital ratios, net income, net interest and dividend income, provision for credit losses, noninterest income, noninterest expense and tax provision. The company also presents certain non-GAAP financial measures, such as adjusted net income, net interest margin on a fully taxable equivalent basis, efficiency ratio measures and return on average tangible common equity. Management explains that these non-GAAP measures are used to evaluate performance, assess balance sheet profitability and compare results over time.

Asset quality metrics disclosed by Old Second include nonperforming loans, nonaccrual loans and loans past due 90 days or more and still accruing, along with nonperforming loans as a percentage of total loans. The company also reports on its provision for credit losses and loan loss reserves. Capital disclosures include common equity tier 1, tier 1 risk-based, total risk-based and tier 1 leverage ratios at both the holding company and bank levels, with reference to applicable regulatory minimums and capital conservation buffers.

Dividends and shareholder returns

Old Second Bancorp’s board of directors periodically declares cash dividends on its common stock, as disclosed in its SEC filings and press releases. For example, the company has reported board actions declaring per-share cash dividends payable to stockholders of record on specified dates. Management commentary in earnings releases also references tangible book value per share and capital ratios as indicators of shareholder value and balance sheet strength. These disclosures provide investors with information on how the company balances capital retention, growth and cash returns to shareholders.

Corporate governance and board matters

Old Second Bancorp’s SEC filings provide insight into its corporate governance practices. For example, the company has disclosed director resignations in connection with its director resignation policy, which requires directors to submit their resignation upon attaining a specified age. The company has also reported changes in board composition related to acquisitions, including the appointment of former executives of acquired institutions to the boards of Old Second and Old Second National Bank, and the assignment of these directors to various board committees.

In connection with the Bancorp Financial merger, Old Second entered into an executive employment agreement and a compensation and benefits assurance agreement with a senior executive from the acquired institution. These agreements describe the executive’s roles and responsibilities within Old Second, compensation structure, participation in benefit programs, restrictive covenants and severance arrangements, including provisions that apply in the event of a change in control.

Summary

According to its public disclosures, Old Second Bancorp, Inc. is a community banking-focused financial institution headquartered in Aurora, Illinois, and the bank holding company for Old Second National Bank. It operates in the commercial banking industry, offering deposit products, a broad range of lending products, safe deposit operations, trust services and wealth management services, along with services tailored to individuals, corporates and small to medium-sized enterprises. Through O2 Sponsor Finance, a division of Old Second National Bank, it also participates in sponsor finance by providing cash flow-based loans to lower middle market businesses in connection with private equity and related transactions. The company’s common stock trades on Nasdaq under the symbol OSBC, and it reports its financial and regulatory information through regular earnings releases and SEC filings.