Old Second Bancorp (OSBC) AI Stock Analysis

• Market Cap: $739.37M
• Dividend Yield: 1.39%
• Average Volume (3M): 219.97K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.79
• Revenue Growth: 2.27%
• EPS Growth: -6.70%
• Country: US
• Employees: 877
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.43
• Shares Outstanding: 45,056,183
• 10 Day Avg. Volume: 209,642
• 30 Day Avg. Volume: 219,968
• PEG Ratio: -4.24
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.78
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 1.50
• 1Y Price Target: $20.40
• Price Target Upside: 23.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 80 Outperform
• Price Target: $19.00 ▲( 15.01% Upside)

Old Second Bancorp's strong financial performance, attractive valuation, and positive corporate event developments contribute significantly to the stock's potential. The technical indicators and earnings call insights, while slightly less impactful, support a positive overall outlook.

Positive Factors

Asset Quality

OSBC has successfully reduced non-performing assets by nearly 30% and narrowed net charge-offs since peak levels.

Net Interest Margin

OSBC's current NIM of 4.63% is over 100bp above small and mid cap peers, so despite greater than previously assumed NIM headwinds, margin at OSBC is still a relative strength.

Profitability Metrics

The bank's conservative credit approach, superior deposit franchise and above peer profitability metrics remain intact.

Negative Factors

Asset Sensitivity

Downgrading shares of OSBC to NEUTRAL, predominantly based on the bank's less favorable asset sensitive balance sheet position.

Credit Environment

Credit progress and deposit strength catalysts are likely to be overlooked or minimized should the market's attention turn to 'risk-on' credit names and/or banks with a greater ability to lower deposit costs.

Earnings Outlook

Lowering earnings outlook for OSBC to reflect added NIM pressure tied to the Fed's more aggressive rate cut path.

Old Second Bancorp Business Overview & Revenue Model

Company Description

Old Second Bancorp, Inc. (OSBC) is a bank holding company headquartered in Aurora, Illinois. It operates through its wholly-owned subsidiary, Old Second National Bank, providing a range of financial services. The company primarily serves customers in the Chicago metropolitan area, offering a comprehensive suite of retail and commercial banking products and services. These include traditional deposit accounts, consumer and commercial lending, mortgage banking, wealth management, and trust services. The bank's focus on personalized service and community involvement forms a key aspect of its operations.

How the Company Makes Money

Old Second Bancorp generates revenue primarily through the interest income earned from its lending activities. The bank provides various types of loans, including commercial and industrial loans, commercial real estate loans, construction loans, residential real estate loans, and consumer loans. Interest on these loans constitutes a significant portion of the company's income. In addition to interest income, Old Second Bancorp earns revenue from fees and service charges associated with its deposit accounts and other banking services. The bank also generates non-interest income from wealth management and trust services, which include investment advisory and estate planning services. Furthermore, Old Second Bancorp has partnerships and relationships with financial institutions and service providers that enhance its product offerings and contribute to its earnings.

Old Second Bancorp Financial Statement Overview

Summary

Old Second Bancorp demonstrates strong financial performance with consistent revenue and net income growth, a solid equity base, and effective cash flow management. Some concerns exist regarding the variability of balance sheet components and potential cash flow volatility, but overall financial health is robust.

Income Statement

Old Second Bancorp has shown consistent revenue growth over the years, with a substantial increase in total revenue from 2020 to 2024. The net profit margin has been robust, averaging above 20% in recent years. However, the EBIT and EBITDA margins are not available for the latest year, which slightly limits the analysis. Nevertheless, the strong net income growth trajectory suggests solid profitability.

Balance Sheet

The balance sheet of Old Second Bancorp is marked by a strong equity base, with the equity ratio consistently above 10% over the years. The debt-to-equity ratio is notably low for 2024, indicating a conservative leverage approach. The return on equity is commendable, reflecting effective utilization of equity capital. However, fluctuations in total assets and liabilities suggest some variability in balance sheet stability.

Cash Flow

Operating cash flow has shown a healthy increase in 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is above 1, highlighting efficient cash conversion. Despite positive free cash flow growth, the large swings in investing and financing cash flows could indicate potential volatility in cash management strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
279.90M	291.97M	244.92M	133.46M	127.04M
	Gross Profit
279.90M	291.97M	244.92M	133.46M	127.04M
	EBIT
112.96M	124.41M	105.95M	27.87M	37.41M
	EBITDA
0.00	131.35M	98.26M	31.66M	40.70M
	Net Income Common Stockholders
85.26M	91.73M	67.41M	20.04M	27.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.21B	1.29B	1.65B	2.44B	826.08M
	Total Assets
5.65B	5.72B	5.89B	6.21B	3.04B
	Total Debt
105.24M	490.15M	228.66M	148.54M	93.54M
	Net Debt
5.91M	390.01M	113.48M	-603.57M	-236.36M
	Total Liabilities
4.98B	5.15B	5.43B	148.54M	93.54M
	Stockholders Equity
671.03M	577.28M	461.14M	502.02M	307.09M
Cash Flow		Free Cash Flow
120.75M	104.03M	93.01M	29.01M	22.07M
	Operating Cash Flow
131.53M	116.40M	97.34M	31.05M	25.99M
	Investing Cash Flow
322.70M	161.56M	-432.78M	132.92M	-103.81M
	Financing Cash Flow
-455.05M	-292.99M	-301.50M	258.24M	357.09M

Old Second Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.52
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSBC, the sentiment is Negative. The current price of 16.52 is below the 20-day moving average (MA) of 16.60, above the 50-day MA of 16.09, and below the 200-day MA of 16.93, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 21.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OSBC.

Old Second Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSBC	80 Outperform	$739.37M	8.95	12.98%	1.39%	2.27%	-6.70%
HBT	78 Outperform	$745.50M	9.92	14.24%	3.27%	6.98%	5.97%
FCBC	75 Outperform	$689.31M	13.72	10.08%	3.23%	2.49%	4.48%
MCBS	74 Outperform	$700.57M	10.69	16.05%	3.19%	8.74%	30.39%
NBN	73 Outperform	$653.37M	9.11	17.91%	0.05%	26.40%	24.62%
CPF	69 Neutral	$720.53M	12.47	10.94%	3.93%	4.38%	4.94%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%

Old Second Bancorp Corporate Events

Old Second Bancorp Gains Approval for Merger

On May 22, 2025, Old Second Bancorp, Inc. announced it received regulatory approvals for its merger with Bancorp Financial, Inc., a significant step towards enhancing its financial strength and competitive position in the Chicago metropolitan market. The merger, expected to close in July 2025, aims to create a stronger institution that benefits stockholders and improves service capabilities, pending Bancorp Financial stockholder approval and other customary conditions.

The most recent analyst rating on (OSBC) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Old Second Bancorp stock, see the OSBC Stock Forecast page.

Old Second Bancorp Holds Annual Stockholders Meeting

On May 20, 2025, Old Second Bancorp, Inc. held its Annual Meeting of Stockholders, where approximately 83.83% of the outstanding shares were represented. During the meeting, stockholders elected Edward Bonifas, Gary Collins, Keith Kotche, and Jill York as Class III directors for a term expiring in 2028, and voted on five additional proposals, including a non-binding advisory vote on executive compensation.

The most recent analyst rating on (OSBC) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Old Second Bancorp stock, see the OSBC Stock Forecast page.

Old Second Bancorp Hosts Annual Stockholders Meeting

On May 20, 2025, Old Second Bancorp, Inc. held its Annual Stockholders Meeting, where a presentation was made available to shareholders and investors through the company’s website. This meeting is significant for stakeholders as it provides insights into the company’s operations and strategic direction.

The most recent analyst rating on (OSBC) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Old Second Bancorp stock, see the OSBC Stock Forecast page.