Old Second Bancorp (OSBC) AI Stock Analysis

• Market Cap: $956.39M
• Dividend Yield: 1.39%
• Average Volume (3M): 338.24K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.80
• Revenue Growth: 10.42%
• EPS Growth: -18.32%
• Country: US
• Employees: 877
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.18
• Shares Outstanding: 52,664,536
• 10 Day Avg. Volume: 310,798
• 30 Day Avg. Volume: 338,243
• PEG Ratio: -1.28
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 6.60
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 2.61
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: 7.27
• 1Y Price Target: $21.63
• Price Target Upside: 20.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $20.50 ▲(14.21% Upside)

Old Second Bancorp's overall stock score reflects its strong financial performance and strategic acquisition benefits, which have improved profitability and growth prospects. The stock's valuation is attractive, and the recent dividend increase signals management's confidence. However, technical indicators suggest caution due to potential overbought conditions, and there are concerns about increased credit loss provisions and asset quality.

Positive Factors

Successful Acquisition

The successful integration of Evergreen Bank enhances OSBC's net interest income and expands its loan portfolio, strengthening market position.

Strong Financial Foundation

A strong financial foundation with high profitability and effective leverage management supports long-term stability and growth potential.

Net Interest Margin Improvement

Improved net interest margin indicates better profitability from lending activities, enhancing OSBC's earnings potential over time.

Negative Factors

Increased Provision for Credit Losses

Higher credit loss provisions suggest potential challenges in loan quality, which could impact future profitability if trends persist.

Higher Noninterest Expenses

Rising noninterest expenses, particularly from acquisition costs, could pressure margins and reduce net income if not managed effectively.

Asset Quality Concerns

Increasing nonperforming loans and classified assets highlight potential risks in asset quality, affecting long-term financial health.

Old Second Bancorp Business Overview & Revenue Model

Company Description

Old Second Bancorp, Inc. operates as the bank holding company for Old Second National Bank that provides community banking services. It provides demand, NOW, money market, savings, time deposit, individual retirement, and checking accounts, as well as certificate of deposit accounts. The company also offers commercial loans; lease financing receivables; commercial real estate loans; construction loans; residential real estate loans, such as residential first mortgage and second mortgage loans; home equity line of credit; consumer loans, including motor vehicle, home improvement, and signature loans; installment and agricultural loans; residential mortgages; and overdraft checking. Further, it provides safe deposit services; trust and wealth management services; and money orders, cashier's checks, foreign currency, direct deposits, discount brokerage, debit and credit cards, and other services, as well as acquires the U.S. treasury notes and bonds. In addition, the company offers online and mobile banking; corporate cash management products, including remote and mobile deposits capture, investment sweep accounts, zero balance accounts, automated tax payments, automatic teller machines access, telephone banking, lockbox accounts, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, foreign and domestic wire transfers, and vault services for currency and coin; and investment, agency, and custodial services for individual, corporate, and not-for-profit clients. It operates through 63 banking centers in Cook, DeKalb, DuPage, Kane, Kendall, LaSalle, and Will counties in Illinois. Old Second Bancorp, Inc. was incorporated in 1981 and is headquartered in Aurora, Illinois.

How the Company Makes Money

Old Second Bancorp generates revenue primarily through interest income from loans and investment securities. The company earns interest by lending to consumers and businesses, with various loan products including commercial loans, residential mortgages, and consumer loans. Additionally, OSBC earns non-interest income from fees associated with deposit accounts, wealth management services, and other financial products. Significant partnerships with local businesses and community organizations enhance its client base and drive customer loyalty, contributing to its overall earnings. Furthermore, the bank's focus on maintaining a strong loan-to-deposit ratio allows it to effectively manage its funding and capitalize on interest rate spreads.

Old Second Bancorp Financial Statement Overview

Summary

Old Second Bancorp maintains a strong financial foundation characterized by high profitability, effective leverage management, and consistent cash flow generation. Despite some fluctuations in revenue growth, the company's margins and returns remain robust, underpinned by strategic cost controls and efficient capital utilization. Potential risks include revenue volatility and decreasing cash reserves, which need careful oversight.

Income Statement

Old Second Bancorp demonstrates strong profitability with a consistent increase in net income over the years. The TTM data shows a healthy gross profit margin of approximately 89.8% and net profit margin of 27.0%, indicating efficient cost management. However, revenue growth has been somewhat volatile, with a recent dip compared to previous periods, which may be a concern if the trend continues.

Balance Sheet

The company's financial position is stable with a strong equity base as evidenced by a solid equity ratio of approximately 12.1% in TTM. The debt-to-equity ratio is low at 0.18, suggesting prudent leverage management. Return on equity is impressive at 12.1%, showcasing effective deployment of equity capital. However, the continual decrease in cash equivalents may require monitoring.

Cash Flow

Operating cash flow has remained robust, supporting a healthy operating cash flow to net income ratio of 1.21 in TTM. Although free cash flow has slightly declined, it remains positive, indicating good liquidity. The free cash flow to net income ratio of 1.11 in TTM implies strong cash generation relative to net profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	337.62M	336.17M	321.03M	255.24M	141.89M	139.51M
Gross Profit	276.37M	267.15M	264.49M	238.37M	129.11M	116.63M
EBITDA	121.35M	122.12M	131.35M	98.43M	31.66M	40.70M
Net Income	83.71M	85.26M	91.73M	67.41M	20.04M	27.82M
Balance Sheet
Total Assets	5.70B	5.65B	5.72B	5.89B	6.21B	3.04B
Cash, Cash Equivalents and Short-Term Investments	1.32B	1.26B	1.29B	1.65B	2.45B	826.08M
Total Debt	132.54M	141.90M	516.63M	260.81M	198.88M	160.52M
Total Liabilities	4.98B	4.98B	5.15B	5.43B	5.71B	2.73B
Stockholders Equity	718.65M	671.03M	577.28M	461.14M	502.03M	307.09M
Cash Flow
Free Cash Flow	110.08M	120.75M	104.03M	93.01M	29.01M	22.07M
Operating Cash Flow	114.58M	131.53M	116.40M	97.34M	31.05M	25.99M
Investing Cash Flow	238.46M	322.70M	161.56M	-432.78M	132.92M	-103.81M
Financing Cash Flow	-332.16M	-455.05M	-292.99M	-301.50M	258.24M	357.09M

Old Second Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSBC, the sentiment is Positive. The current price of 17.95 is above the 20-day moving average (MA) of 17.68, above the 50-day MA of 17.86, and above the 200-day MA of 17.29, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 61.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OSBC.

Old Second Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESQ	―	$800.92M	16.48	19.19%	0.72%	17.98%	14.35%
OSBC	―	$956.39M	12.15	9.24%	1.39%	10.42%	-18.32%
UVSP	―	$836.05M	9.83	9.61%	2.88%	4.49%	20.44%
TMP	―	$915.85M	10.76	11.20%	3.77%	9.55%	27.32%
FMBH	―	$844.71M	10.30	9.74%	2.76%	3.54%	12.23%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SBSI	―	$845.46M	12.21	8.53%	5.12%	-4.08%	-16.80%

Old Second Bancorp Corporate Events

Old Second Bancorp Reports Q3 2025 Earnings Amid Acquisition Impact

Old Second Bancorp, Inc., a financial institution primarily operating in the banking sector, has recently reported its third-quarter earnings for 2025. The company, which recently acquired Bancorp Financial, is known for its comprehensive banking services and strategic growth initiatives.

Old Second’s Earnings Call: Strong Growth Amid Challenges

Old Second’s recent earnings call painted a picture of robust financial performance, buoyed by the successful integration of the Evergreen acquisition. The company reported improved net interest margins and a rise in noninterest income, signaling effective strategic moves. However, challenges were noted, including increased provisions for credit losses and higher noninterest expenses due to acquisition costs. Asset quality showed some stress, with a rise in nonperforming loans and classified assets, indicating areas that require attention.

Old Second Bancorp Director John Ladowicz Resigns

On September 14, 2025, John Ladowicz resigned from the Board of Directors of Old Second Bancorp, Inc. in compliance with the company’s Director Resignation Policy, which mandates resignation upon reaching the age of 73. His departure was not due to any disagreement with the company. Ladowicz, who served on several key committees, was a valued member since 2008. The company will not immediately fill the vacancy and plans to reduce the board size by one member, realigning its directors to maintain equal numbers across classes.

The most recent analyst rating on (OSBC) stock is a Buy with a $20.50 price target. To see the full list of analyst forecasts on Old Second Bancorp stock, see the OSBC Stock Forecast page.

Old Second’s Earnings Call: Optimism Amid Challenges

The recent earnings call for Old Second Company was marked by a generally optimistic sentiment, driven by strong net income, improved net interest margins, and successful loan growth. The management expressed confidence in the company’s financial health and future prospects, particularly with the anticipated benefits of the Evergreen Bank acquisition. However, there was a note of caution due to certain challenges, including notable expenses and slight decreases in loan yields.