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what it is
Old Second is an Illinois regional bank that takes deposits, makes loans, and sells wealth services through 53 banking centers.
how it gets paid
Last year Old Second Bancorp made $355M in revenue. net interest income was the main engine at $248M, or 70% of sales.
why it's growing
Revenue grew 19.2% last year. SEC data shows revenue rose 143% vs. prior year to $253 million and EPS jumped 489% to $1.06.
what just happened
Latest quarterly EPS hit $1.06 on $253 million of revenue, far above the prior-year quarter.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
45/100 earnings predictability — expect surprises
13.0x trailing p/e — the market's not buying it — or you found a deal
1.4% dividend yield — cash in your pocket every quarter
$1.63 fy2025 eps est
xvary composite: 59/100 — below average
What they do
Old Second is an Illinois regional bank that takes deposits, makes loans, and sells wealth services through 53 banking centers.
This is a neighborhood bank with 53 banking centers across seven Illinois counties. If you run a local business, proximity still matters when you need a credit line fast. Old Second also has 877 employees serving deposits, loans, and wealth clients, which gives you a harder-to-copy local relationship machine than a pure online lender.
How they make money
$355M
annual revenue · their business grew +19.2% last year
net interest income
$248M
+19.2%
service charges and deposit fees
$46M
+6.0%
wealth management and trust
$28M
+4.0%
mortgage banking
$18M
0.0%
card, brokerage, and other fees
$15M
+3.0%
The products that matter
consumer and commercial lending
Community Banking
core bank franchise
this is the core business. it now includes a $1.27B acquired loan portfolio, and the 5.09% fourth-quarter net interest margin says the spread is still intact for now.
5.09% margin
investment and trust services
Wealth Management
part of $70M non-interest income
this sits inside the $70M non-interest income bucket. it matters because fee revenue is less tied to rate moves than the $285M net interest business, even if it is still the smaller piece.
fee buffer
nationwide specialty finance
Powersport Lending
$1.27B acquired portfolio
this came with the Bancorp Financial deal. it is the growth driver and the main risk in the same sentence, because acquired loans often look cleanest before they season inside the new owner.
integration watch
Key numbers
$85M
long-term debt
That is 8% of capital. Plain English: this bank is not leaning hard on borrowed money to make the math work.
13.0x
trailing p/e
You are paying 13 dollars for each dollar of trailing earnings, which is cheap next to the broader market but normal for a regional bank.
$1.63
fy2025 eps est
That estimate is below trailing EPS of $1.50 versus the latest quarter's $1.06 run rate, so the market is already bracing for earnings to cool.
1.4%
dividend yield
You get some cash back while you wait, but 1.4% is a side dish, not the reason to own the stock.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $85M (8% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for OSBC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarterly EPS hit $1.06 on $253 million of revenue, far above the prior-year quarter.
SEC data shows revenue rose 143% vs. prior year to $253 million and EPS jumped 489% to $1.06. The comparison got help from a much larger post-acquisition balance sheet.
$89M
revenue
$1.06
eps
143%
revenue growth
the number that mattered
$1.06 in quarterly EPS matters because it is more than half of the full-year $1.63 estimate, which tells you the earnings path is lumpy.
source: company earnings report, 2026
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What could go wrong
the top risk is credit performance inside the $1.27B Bancorp Financial loan book.
high
integration risk on the $1.27B acquired portfolio
Old Second added $1.27B of loans through the Bancorp Financial acquisition in 2025. That is a large underwriting and servicing test for a bank with a roughly $1B market cap.
if credit quality or collection performance slips, the acquisition story stops being about growth and starts being about repair work.
med
rate cuts or sticky deposits compress the spread
Net interest income was $285M, or 80% of revenue. If asset yields fall faster than funding costs, the 5.09% net interest margin moves the wrong way.
when 80% of revenue comes from spread income, even a modest margin squeeze hits the whole income statement.
med
low earnings predictability keeps the stock cheap
OSBC scores 45/100 on earnings predictability. In plain english: the path from quarter to quarter is less stable than investors usually want from a regional bank.
that makes multiple expansion harder, even if 13.0x earnings looks inexpensive on the surface.
a $1.27B acquired portfolio, $285M of revenue tied to net interest income, and a 45/100 predictability score leave you with concentrated risk, not mysterious risk.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
net interest margin staying above 5%
5.09% in q4 versus 5.05% in q3 is the cleanest proof the acquisition has not broken the earnings engine yet. if that starts rolling over, the thesis gets weaker fast.
calendar
q1 2026 earnings report
you want the first cleaner read on the larger loan book once the deal is no longer fresh enough to explain everything.
risk
credit quality in powersport lending
the nationwide specialty finance portfolio is the volatile part of the deal. if charge-offs rise, the growth narrative changes before the valuation does.
trend
$43.9M buyback follow-through
the late-january 2026 repurchase program matters because it tells you management sees value at these levels. buybacks do not fix credit, but they do reveal confidence.
Analyst rankings
earnings predictability
45 / 100
this bank's earnings path is less stable than you want from a sleepy regional lender. in human-speak, expect more quarterly noise than the low p/e might imply.
risk rank
3
risk rank 3 puts it around the middle of the pack on safety. you are not buying a bunker stock, but you are not staring at a distress case either.
source: institutional data
Institutional activity
institutional ownership data for OSBC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$21
current price
n/a
target midpoint · n/a from current
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