Old Second Bancorp, Inc. (OSBC)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Old Second Bancorp, Inc. (OSBC) trades at $23.21 with AI Score 67/100 (Grade B+). Old Second Bancorp, Inc. is a community banking services provider operating through 63 banking centers in Illinois. Market cap: $1.19B, Sector: Financial services.
Price live · AI analysis from May 10, 2026OSBC stock analysis for 2026: Analysts have set a consensus price target of $23.00 for Old Second Bancorp, Inc., suggesting 0.9% downside from the current price of $23.21. The AI MoonshotScore is 67/100, indicating a bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
OSBC: 6/7 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Old Second Bancorp, Inc. (OSBC) Financial Services Profile
Old Second Bancorp, Inc., a regional bank holding company, provides community banking services throughout Illinois, offering diverse deposit and loan products, trust and wealth management, and digital banking solutions. With a focus on commercial and residential lending, OSBC caters to individuals, businesses, and not-for-profit organizations.
What Is the Investment Thesis for OSBC?
Old Second Bancorp, Inc. presents a stable investment opportunity within the regional banking sector. With a market capitalization of $1.19B and a P/E ratio of 14.4, the company demonstrates solid financial performance. A profit margin of 20.2% and a gross margin of 76.4% indicate efficient operations. The dividend yield of 1.27% provides a modest income stream for investors. Growth catalysts include expanding digital banking services and strategic expansion within its existing Illinois footprint. Potential risks include interest rate fluctuations and increased competition from larger regional and national banks. The company's beta of 0.74 suggests lower volatility compared to the broader market.
Based on FMP financials and quantitative analysis
OSBC Key Highlights
- Market capitalization of $1.19B indicates a strong regional presence.
- P/E ratio of 14.4 suggests a reasonable valuation compared to earnings.
- Profit margin of 20.2% demonstrates efficient profitability.
- Gross margin of 76.4% reflects effective cost management.
- Dividend yield of 1.27% provides a steady income stream for investors.
Who Are OSBC's Competitors?
OSBC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| TCBI Texas Capital Bancshares, Inc. | $105.25 | +1.25% | $4.60B | 93 |
| MCHB Mechanics Bank | $16.21 | +0.31% | 4B | 71 |
| STLE Steele Bancorp Inc. | $43.05 | -0.67% | $80.01M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| CIBEY Commercial International Bank (Egypt) S.A.E | $2.63 | +3.54% | $8.68B | 67 |
| GBOOY Grupo Financiero Banorte, S.A.B. de C.V. | $54.16 | +0.39% | $30.47B | 67 |
| ASBA Associated Banc-Corp | $24.53 | +0.25% | $4.05B | 67 |
| LRBI Lake Ridge Bancorp Inc. | $143.25 | +0.00% | $281.73M | 67 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are OSBC's Key Strengths?
- Strong presence in the Illinois market.
- Diversified product and service offerings.
- Experienced management team.
- Solid financial performance.
What Are OSBC's Weaknesses?
- Limited geographic diversification.
- Reliance on traditional banking services.
- Smaller scale compared to larger regional and national banks.
- Exposure to interest rate risk.
What Could Drive OSBC Stock Higher?
- Continued expansion of digital banking platforms to attract and retain tech-savvy customers.
- Strategic branch expansion within existing Illinois markets to increase deposit and loan growth.
- Focus on commercial lending to support local businesses and drive revenue growth.
What Are the Key Risks for OSBC?
- Financial-distress signal — its Altman Z-Score of 0.32 sits in the distress zone (elevated bankruptcy risk).
- Interest rate fluctuations impacting net interest margin and profitability.
- Increased competition from larger regional and national banks.
- Economic downturn in the Illinois market affecting loan quality and credit losses.
- Regulatory changes and compliance costs impacting operational efficiency.
What Are the Growth Opportunities for OSBC?
- Expansion of Digital Banking Services: Old Second can capitalize on the growing demand for digital banking by enhancing its online and mobile platforms. Investing in user-friendly interfaces and advanced features such as mobile deposit capture and online account management can attract and retain customers. The market for digital banking is projected to reach $9 trillion by 2028, presenting a significant growth opportunity for OSBC. Timeline: Ongoing.
- Strategic Branch Expansion: Expanding its branch network within its existing Illinois footprint can increase Old Second's market share and customer base. Identifying underserved communities and establishing new banking centers can drive deposit growth and loan origination. The Illinois banking market is valued at $500 billion in deposits, providing ample opportunity for expansion. Timeline: Ongoing.
- Enhancement of Wealth Management Services: Growing its trust and wealth management services can generate additional revenue streams and diversify its business model. Offering personalized financial planning, investment management, and estate planning services can attract high-net-worth individuals and families. The wealth management market in Illinois is estimated at $2 trillion, offering significant growth potential. Timeline: Ongoing.
- Focus on Commercial Lending: Expanding its commercial lending portfolio can drive revenue growth and support local businesses. Offering tailored financing solutions to small and medium-sized enterprises (SMEs) can foster strong relationships and increase loan volume. The market for commercial loans in Illinois is valued at $100 billion. Timeline: Ongoing.
- Acquisition Opportunities: Pursuing strategic acquisitions of smaller community banks can accelerate Old Second's growth and expand its market presence. Identifying complementary institutions with strong local relationships and similar business models can create synergies and increase profitability. The consolidation trend in the banking industry presents opportunities for OSBC to grow through acquisitions. Timeline: Ongoing.
What Opportunities Does OSBC Have?
- Expansion of digital banking services.
- Strategic branch expansion within Illinois.
- Growth of wealth management services.
- Acquisition of smaller community banks.
What Threats Does OSBC Face?
- Increased competition from larger banks.
- Economic downturn in the Illinois market.
- Regulatory changes impacting the banking industry.
- Cybersecurity threats and data breaches.
What Are OSBC's Competitive Advantages?
- Strong local presence and established relationships in the Illinois market.
- Comprehensive suite of banking products and services.
- Experienced management team with a deep understanding of the regional banking sector.
- Commitment to community involvement and customer service.
What Does OSBC Do?
Old Second Bancorp, Inc., incorporated in 1981 and headquartered in Aurora, Illinois, is the bank holding company for Old Second National Bank. The bank provides a comprehensive suite of community banking services to individuals, businesses, and not-for-profit organizations. Its history is rooted in serving the financial needs of the communities within its Illinois footprint. The company's core offerings include a variety of deposit accounts such as demand, NOW, money market, savings, time deposit, individual retirement, and checking accounts, as well as certificates of deposit. Old Second also provides a wide array of lending products, including commercial loans, lease financing receivables, commercial real estate loans, construction loans, residential real estate loans (first and second mortgages), home equity lines of credit, consumer loans (motor vehicle, home improvement, and signature loans), installment and agricultural loans, and residential mortgages. Beyond traditional banking services, Old Second offers safe deposit services, trust and wealth management, money orders, cashier's checks, foreign currency exchange, direct deposits, discount brokerage, debit and credit cards. The company also provides advanced online and mobile banking platforms and corporate cash management products, including remote and mobile deposit capture, investment sweep accounts, zero balance accounts, and automated tax payments. Old Second operates 63 banking centers across several counties in Illinois, including Cook, DeKalb, DuPage, Kane, Kendall, LaSalle, and Will counties.
What Products and Services Does OSBC Offer?
- Provides a range of deposit accounts, including checking, savings, and money market accounts.
- Offers commercial loans to businesses for various purposes.
- Provides residential real estate loans, including mortgages and home equity lines of credit.
- Offers consumer loans for vehicles, home improvements, and personal needs.
- Provides trust and wealth management services to individuals and families.
- Offers online and mobile banking services for convenient account access.
- Provides corporate cash management products for businesses.
- Offers safe deposit services for secure storage.
How Does OSBC Make Money?
- Generates revenue from interest income on loans.
- Earns fees from deposit accounts and other banking services.
- Provides trust and wealth management services for a fee.
- Acquires U.S. Treasury notes and bonds for investment income.
What Industry Does OSBC Operate In?
Old Second Bancorp, Inc. operates in the regional banking sector, which is characterized by increasing competition and evolving customer expectations. The industry is undergoing digital transformation, with customers demanding more sophisticated online and mobile banking solutions. The competitive landscape includes both large national banks and smaller community banks. Old Second differentiates itself through its focus on community banking services and its strong presence in the Illinois market. The regional banking sector is expected to grow moderately, driven by increasing economic activity and population growth in the Midwest.
Who Are OSBC's Key Customers?
- Individuals seeking personal banking services.
- Small and medium-sized businesses requiring commercial loans and cash management solutions.
- High-net-worth individuals and families seeking wealth management services.
- Not-for-profit organizations requiring banking and investment services.
ROE 10%Key Financial Metrics
Return on equity for Old Second Bancorp, Inc. stands at 10.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.3%, showing how much profit it generates from its asset base. OSBC trades at a trailing price-to-earnings ratio of 14.38, below the Financial Services sector average of ~18x. Its free cash flow yield is 11.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.22 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.9%, the inverse of the P/E and a quick read on earnings relative to price.
Old Second Bancorp, Inc. (OSBC) Valuation Context
Valued at $1.19B, OSBC is classified as a small-cap stock. Relative to its peer group, OSBC's quantitative score of 67/100 is roughly in line with the peer average of 74/100.
Company Profile
Old Second Bancorp, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Aurora, US. The company is led by CEO James L. Eccher. OSBC has traded publicly since 1993.
F-Score 5/9Financial Health
Old Second Bancorp, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.32 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Old Second Bancorp, Inc. revenue of about $381.6M for fiscal 2026, with EPS near $2.17. The estimate reflects 4 contributing analysts.
OSBC Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future performance, indicating that leadership believes in its growth prospects.
- Community sentiment has shifted positively, with discussions highlighting Old Second's strong regional presence and customer loyalty.
- Analysts have noted improvements in operational efficiency, which could enhance profit margins in the coming quarters.
- Market perception is bolstered by favorable economic conditions in the Midwest, where Old Second operates, potentially driving growth in loan demand.
Bear Case
- Concerns about rising interest rates may impact the bank's profitability, as higher rates could affect loan demand and borrowing costs.
- Social sentiment has also revealed skepticism regarding the bank's ability to compete with larger institutions, which could limit its growth potential.
- Recent regulatory changes in the banking sector have raised uncertainty, with some community members voicing fears about compliance costs.
- There are ongoing discussions about potential economic slowdowns, which could lead to increased loan defaults and affect the bank's financial health.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
OSBC Latest News
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Earnings Scheduled For April 22, 2026
benzinga · Apr 22, 2026
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Earnings Scheduled For January 27, 2021
· Jan 27, 2021
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Stocks That Hit 52-Week Lows On Thursday
· Aug 29, 2019
OSBC Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for OSBC.
Price Targets
Consensus target: $23.00
OSBC MoonshotScore
What does this score mean?
The MoonshotScore rates OSBC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: James L. Eccher
CEO
James L. Eccher serves as the CEO of Old Second Bancorp, Inc. His career spans several decades in the banking industry, with a focus on community banking and financial services. He has held various leadership positions within Old Second, contributing to the company's growth and strategic direction. Eccher's expertise includes commercial lending, risk management, and regulatory compliance. He is actively involved in community development initiatives and serves on various boards and committees.
Track Record: Under James L. Eccher's leadership, Old Second Bancorp, Inc. has expanded its market presence in Illinois and enhanced its digital banking capabilities. He has overseen strategic acquisitions and branch expansions, contributing to the company's asset growth and profitability. Eccher has also focused on strengthening the company's risk management framework and ensuring compliance with regulatory requirements.
What Investors Ask About Old Second Bancorp, Inc. (OSBC) — Financial Services
What does Old Second Bancorp, Inc. do?
Old Second Bancorp, Inc., through its subsidiary Old Second National Bank, provides a comprehensive range of community banking services. These services include deposit accounts (checking, savings, money market), various loan products (commercial, residential real estate, consumer), trust and wealth management, and digital banking solutions. The company primarily serves individuals, businesses, and not-for-profit organizations within its Illinois footprint, focusing on building long-term relationships and supporting local economic development.
What do analysts say about OSBC stock?
Analyst coverage of Old Second Bancorp, Inc. (OSBC) generally focuses on its regional banking performance, asset quality, and growth prospects within the Illinois market. Key valuation metrics such as P/E ratio and dividend yield are closely monitored. Analyst consensus typically reflects expectations for steady earnings growth driven by loan expansion and efficient cost management. However, potential risks such as interest rate sensitivity and competitive pressures are also considered. Analyst ratings and price targets vary depending on individual firm assessments.
What are the main risks for OSBC?
Old Second Bancorp, Inc. faces several key risks inherent to the banking industry. Interest rate risk is significant, as fluctuations can impact the company's net interest margin and profitability. Credit risk is also a concern, particularly in the event of an economic downturn in the Illinois market, which could lead to increased loan defaults. Competition from larger regional and national banks poses a threat to market share and customer acquisition. Additionally, regulatory changes and cybersecurity threats represent ongoing challenges for OSBC.
What are the key factors to evaluate for OSBC?
Old Second Bancorp, Inc. (OSBC) holds an AI score of 67/100 (moderate). P/E: 14.4x vs the S&P 500's ~20-25x. Analysts target $23.00 (-1%). Not financial advice.
How frequently does OSBC data refresh on this page?
OSBC prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven OSBC's recent stock price performance?
Old Second Bancorp, Inc. (OSBC) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong presence in the Illinois market. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider OSBC overvalued or undervalued right now?
Old Second Bancorp, Inc. (OSBC) trades at 14.4x earnings. Analysts target $23.00 (-1%) — near fair value. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying OSBC?
Before investing in Old Second Bancorp, Inc. (OSBC), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on publicly available sources and may be subject to change.
- Financial data is as of the latest available reporting period.
- This is a research report and not financial advice.