Old Second Bancorp (OSBC) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: 1.24%
• Average Volume (3M): 338.24K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.71
• 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: 52,669,224
• 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: 0.80
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: 8.33
• 1Y Price Target: $21.63
• Price Target Upside: 3.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $24.00 ▲(14.34% Upside)

Old Second Bancorp's overall score is driven by strong financial performance and successful strategic acquisitions, which have improved net interest margins and expanded the loan portfolio. Technical indicators support a positive trend, while valuation remains reasonable. However, increased provisions for credit losses and higher noninterest expenses present challenges that need addressing.

Positive Factors

Successful Acquisition

The successful integration of Evergreen Bank enhances Old Second Bancorp's net interest income and expands its loan portfolio, strengthening its market position and providing a platform for future growth.

Net Interest Margin Improvement

An improved net interest margin indicates better profitability from lending activities, enhancing Old Second Bancorp's ability to generate income and sustain financial health over the long term.

Noninterest Income Growth

Growth in noninterest income, particularly from wealth management and service charges, diversifies revenue streams and reduces reliance on interest income, supporting long-term financial stability.

Negative Factors

Increased Provision for Credit Losses

Higher provisions for credit losses indicate potential risk in the loan portfolio, which could impact profitability and require careful management to maintain asset quality.

Higher Noninterest Expenses

Rising noninterest expenses, particularly from acquisition costs, can pressure profit margins and necessitate improved operational efficiency to maintain financial performance.

Asset Quality Concerns

Increased nonperforming loans and classified assets suggest challenges in maintaining asset quality, which could lead to higher credit costs and impact long-term financial stability.

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 investments, as well as non-interest income from service charges and fees. Key revenue streams include interest earned from personal loans, commercial loans, and mortgage loans, which are funded by customer deposits. The bank also earns fees from various services, such as ATM transactions, account maintenance, and wealth management services. Additionally, OSBC may generate income through investment activities and by managing assets for clients. The company's financial performance is influenced by factors such as interest rate changes, loan demand, and regulatory environment. Partnerships with local businesses and community organizations further enhance its service offerings and customer base.

Old Second Bancorp Financial Statement Overview

Summary

Old Second Bancorp exhibits strong revenue growth and a solid capital structure, with improvements in debt management. However, there are challenges in maintaining high profit margins and generating free cash flow. The company needs to focus on enhancing operational efficiency and cash flow generation to sustain its financial health.

Income Statement

Old Second Bancorp has shown consistent revenue growth with a TTM revenue growth rate of 5.59%. The gross profit margin has decreased significantly from 79.47% in 2024 to 19.13% in the TTM period, indicating increased costs or reduced pricing power. However, the net profit margin remains strong at 19.81% in the TTM period, reflecting effective cost management. The EBIT and EBITDA margins have also decreased, suggesting potential challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.33 in the TTM period from 0.89 in 2023, indicating a stronger equity position relative to debt. Return on equity has decreased to 9.57% in the TTM period, which is lower than previous years, suggesting a decline in profitability relative to shareholder equity. The equity ratio remains stable, reflecting a solid capital structure.

Cash Flow

Free cash flow has decreased by 9.28% in the TTM period, indicating potential challenges in generating cash. The operating cash flow to net income ratio is 0.57, showing moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 0.98, suggesting efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	367.90M	336.17M	321.03M	255.24M	141.89M	139.51M
Gross Profit	283.19M	267.15M	264.49M	238.37M	129.11M	116.63M
EBITDA	105.97M	122.12M	132.11M	98.43M	31.66M	40.70M
Net Income	70.63M	85.26M	91.73M	67.41M	20.04M	27.82M
Balance Sheet
Total Assets	6.99B	5.65B	5.72B	5.89B	6.21B	3.04B
Cash, Cash Equivalents and Short-Term Investments	938.59M	1.26B	1.29B	1.65B	2.45B	826.08M
Total Debt	289.41M	141.90M	516.63M	260.81M	198.88M	160.52M
Total Liabilities	6.13B	4.98B	5.15B	5.43B	5.71B	2.73B
Stockholders Equity	866.68M	671.03M	577.28M	461.14M	502.03M	307.09M
Cash Flow
Free Cash Flow	98.64M	120.75M	104.03M	93.01M	29.01M	22.07M
Operating Cash Flow	102.02M	131.53M	116.40M	97.34M	31.05M	25.99M
Investing Cash Flow	337.67M	322.70M	161.56M	-432.78M	132.92M	-103.81M
Financing Cash Flow	-438.93M	-455.05M	-292.99M	-301.50M	258.24M	357.09M

Old Second Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.99
• 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 20.99 is above the 20-day moving average (MA) of 20.09, above the 50-day MA of 19.43, and above the 200-day MA of 17.72, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 65.81 is Neutral, neither overbought nor oversold. The STOCH value of 79.01 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	79 Outperform	$923.79M	18.96	19.19%	0.66%	17.98%	14.35%
OSBC	77 Outperform	$1.11B	13.88	9.24%	1.24%	10.42%	-18.32%
UVSP	76 Outperform	$954.79M	11.22	9.61%	2.59%	4.49%	20.44%
FMBH	75 Outperform	$996.15M	11.40	9.74%	2.43%	3.54%	12.23%
SBSI	74 Outperform	$973.24M	14.06	8.53%	4.59%	-4.08%	-16.80%
TMP	70 Outperform	$1.11B	13.02	11.20%	3.39%	9.55%	27.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%