Old Second Bancorp, Inc. (OSBC) Stock

Old Second Bancorp, Inc. (OSBC) is a Financials stock trading at $25.34 (as of 2026-08-21), with a market capitalization of $1.29B and a trailing P/E of 13.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Old Second Bancorp, Inc. is a bank holding company for Old Second National Bank, providing community banking services. It offers deposit products, lending (including commercial, real estate, consumer, and installment/agricultural loans), trust and wealth management, and related payment and financial services such as online and mobile banking, safe deposit services, and treasury and bond holdings.

Understand Old Second Bancorp, Inc.: how it makes money

Old Second Bancorp, as a bank holding company, provides community banking services, including deposit accounts and commercial and consumer loans, and it makes money mainly from lending and related banking activities (interest and fees).

For community banks, operating results tend to hinge on how efficiently the bank turns its funding and lending into earnings, combining cost control (Efficiency Ratio) with the health of the loan book (Nonperforming Loans), while funding conditions show up in measures like the Loan-to-Deposit Ratio and Cost of Deposits.

Business quality (Solid): Key watch points are operating efficiency and credit quality. In the latest quarter, Efficiency Ratio is 52.4% and Nonperforming Loans are 0.08 USD_B, with Loan-to-Deposit Ratio at 93.2 and Cost of Deposits at 1.05%.

Valuation: At 14× earnings, OSBC trades 11% above the Banking average (13×). Note: one-time items can distort reported P/E.

Bull case

Operating cost discipline: Efficiency Ratio is 52.4%, and Tax Equivalent Efficiency Ratio is also 52.4%, pointing to consistent expense control relative to operating income.
Credit quality is measurable and currently low: Nonperforming Loans are 0.08 USD_B, and Return on Average Assets is 1.51% and Return on Average Tangible Common Equity is 14.2% in the latest period.
Funding supports lending activity: Loan-to-Deposit Ratio is 93.2 and Cost of Deposits is 1.05%, which frames how deposit funding relates to loan growth and profitability.

Bear case

Credit stress risk from the loan mix: The company offers commercial loans, construction loans, commercial real estate loans, and residential real estate loans, so deterioration in these categories could pressure earnings and increase problem loans.
Funding and liquidity sensitivity: A Loan-to-Deposit Ratio of 93.2 means profitability can be sensitive to deposit flows and funding costs if deposits become more expensive or tighten.
Efficiency can deteriorate in tougher markets: If operating expenses rise or income falls, the Efficiency Ratio (52.4% currently) could worsen, pressuring the operating margin.

Valuation — source: SEC EDGAR (first-party)
Price	$25.34
Market Cap	$1.29B
P/E Ratio	13.9
EV / EBITDA	8.7
Price / Book	1.43
Price / Sales	3.18
FCF Yield	11.0%
DCF Value (model)	$31.35
DCF Upside vs Price	23.7%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$355.18M
Net Margin	22.6%
Revenue Growth (YoY)	34.5%
EPS Growth (YoY)	12.2%
FCF Growth (YoY)	19.0%

Valuation vs Sector & Industry
Stock P/E	13.9
Sector P/E (Financials)	15.1
Industry P/E (Banking)	13.0
vs Sector	-7.6%
vs Industry	7.6%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($83.19M)
Institutional Holders Tracked	10

Company
Sector	Financials
Industry	Banking
CEO	James L. Eccher
Employees	877
Country	US
IPO Date	1993-11-16

Related Companies (Business model: Universal / Commercial Bank; 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.