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.
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- JPMorgan Chase for the Chicago suburbs
- Bank of America for the greater Chicago area
- A smaller U.S. Bancorp, focused purely on Chicagoland
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Old Second Bancorp (OSBC) primarily offers a range of financial services through its banking subsidiary.
- Commercial Banking: Provides business loans, lines of credit, treasury management services, and other financial solutions to commercial clients.
- Retail Banking: Offers personal checking and savings accounts, certificates of deposit, consumer loans (such as mortgages and auto loans), and debit/credit card services to individual customers.
- Wealth Management: Delivers financial planning, investment management, trust services, and retirement planning to individuals and businesses.
- Mortgage Lending: Originates and services residential mortgage loans for home purchases and refinances.
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Old Second Bancorp (OSBC) is a bank holding company that provides a wide range of financial services primarily to individuals and businesses in the Chicago metropolitan area and parts of Illinois. As a financial institution, it does not have "major customers" in the traditional sense of a few large companies purchasing its products. Instead, its customer base is highly diversified across thousands of clients.
Therefore, OSBC serves the following categories of customers:
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Individuals/Retail Customers: This category includes individual consumers who utilize a variety of personal banking services such as checking and savings accounts, money market accounts, certificates of deposit (CDs), debit and credit cards, residential mortgages, home equity loans, auto loans, and other personal loans.
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Small to Medium-sized Businesses (SMBs): OSBC provides commercial banking services to a diverse range of local and regional businesses. These services include commercial loans, lines of credit, business checking and savings accounts, treasury management services, and merchant services.
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Wealth Management & Trust Clients: This segment includes individuals, families, and businesses seeking investment management, financial planning, trust and estate administration, and other advisory services to manage and grow their assets.
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James L. Eccher, Chairman, President & Chief Executive Officer
Mr. Eccher has served as Chairman, President & Chief Executive Officer of Old Second Bancorp, Inc. and Old Second National Bank since January 2015, and also as Chief Operating Officer of Old Second Bancorp, Inc.. He previously served as Senior Vice President and Branch Director from 1999 to 2003 and was President and Chief Executive Officer of Bank of Sugar Grove from 1996 to 1999.
Bradley S. Adams, EVP, Chief Operating Officer & Chief Financial Officer
Mr. Adams joined Old Second in 2017 as Chief Financial Officer and was appointed Chief Operating Officer as of August 15, 2023. He previously served as Executive Vice President and Director of Corporate Development & Strategy for TCF National Bank. From 2011 to 2016, he was Executive Managing Director, Corporate Development of Talmer Bancorp, Inc., where he was responsible for internal financial reporting, budgeting, mortgage bank accounting, investor relations, strategic planning, and corporate development activities. Prior to joining Talmer, Mr. Adams held positions as Managing Director of W2 Freedom, LLC, a private investment fund manager focused on investing in community banks, and as Director of Investor Relations for Fifth Third Bancorp. Talmer Bancorp, Inc. merged with Chemical Financial Corporation in August 2016.
Gary S. Collins, Vice Chairman
Mr. Collins has served as Vice Chairman of Old Second Bancorp, Inc. since October 2016. Before that, he was Vice Chairman and Director of Talmer Bancorp, Inc., a publicly traded bank holding company, from 2011 until 2016. He also served as Chairman and Co-Chief Executive Officer of Lake Shore Wisconsin Corporation, a bank holding company, from 2010 until 2011, and was a founding Managing Director and Vice Chairman of The PrivateBank - Chicago from 1991 until 2009. Talmer Bancorp, Inc. merged with Chemical Financial Corporation.
Donald J. Pilmer, Chief Lending Officer & Executive Vice President
Mr. Pilmer joined Old Second and Old Second National Bank in 1989. He has served as Executive Vice President since 2012 and as Chief Lending Officer since 2008. He manages the Commercial Banking unit and possesses over 25 years of experience in the commercial banking industry.
Richard A. Gartelmann Jr., Executive Vice President/Head of Wealth Management
Mr. Gartelmann currently manages the Bank's Wealth Management Division, bringing over 25 years of experience in the financial industry. His past roles include CEO of River Street Advisors LLC (a wholly owned subsidiary of Old Second National Bank) from 2011, Portfolio Manager at Feldman Securities Group LLC, Investment Advisor at Geneva Advisors LLC, and Vice President and Portfolio Manager at Park National Bank. He also organized and launched the investment services area of Manufacturers Bank from 1996 to 1997.
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Old Second Bancorp (OSBC) faces several key risks to its business operations, primarily stemming from economic conditions, market fluctuations, and operational challenges. Based on their 2024 annual report, the most significant risks include:
Key Risks to Old Second Bancorp (OSBC)
- Adverse Economic and Market Conditions: The company's financial health is highly susceptible to adverse economic conditions. A downturn could lead to decreased loan demand, a decline in the value of assets, and a deterioration in credit quality, increasing potential loan losses. Inflationary pressures are also a concern, as they can impact interest rates, raise operating costs, and negatively affect the financial well-being of their customers.
- Interest Rate Fluctuations: Changes in interest rates can significantly affect Old Second Bancorp's profitability. Rising rates can increase funding costs and potentially reduce demand for certain loan products, while falling rates might compress net interest margins. The market value of their investment securities is also sensitive to interest rate movements.
- Cybersecurity Threats and System Interruptions: Old Second Bancorp is vulnerable to cyber-attacks and other security breaches or interruptions to its information systems. Such incidents could lead to significant financial losses, damage to reputation, regulatory penalties, and a loss of customer trust, all of which could materially and adversely affect their business.
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The increasing market penetration and sophisticated offerings of digitally native financial technology (fintech) companies and neobanks. These players leverage advanced technology to offer highly convenient, often lower-cost, and user-friendly digital banking services (including deposits, payments, and lending products) that directly compete with traditional branch-based banks like OSBC. This trend poses a clear threat by eroding OSBC's traditional advantages in customer acquisition and retention, particularly among younger demographics and those who prioritize digital convenience over physical branch presence. The continuous innovation and expanding product suites of these digital competitors represent an ongoing challenge to OSBC's market share and profitability across various banking segments.
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Old Second Bancorp (OSBC) operates primarily in the community and commercial banking sectors within several counties in Illinois, including Cook, DeKalb, DuPage, Kane, Kendall, LaSalle, and Will, with a significant presence in the Chicago metropolitan area. The company offers a comprehensive suite of financial products and services, encompassing retail and corporate deposit services, various loan types (real estate, commercial, industrial, consumer, installment, agricultural, and residential mortgages), cash management, trust services, wealth management solutions (financial planning, administration of real estate and trusts, custodial, agency services, and investment accounts), and electronic banking services.
The addressable market for Old Second Bancorp can be assessed by considering the community and commercial banking markets in Illinois and the Chicago Metropolitan Statistical Area (MSA).
As of 2025, the Commercial Banking industry in Illinois is estimated to have a market size of $70.8 billion. This market has shown growth, with an average annual rate of 7.0% from 2020 to 2025.
In the broader U.S. context, the community banking market was valued at approximately $16.7 billion in 2024 and is projected to reach around $29.07 billion by 2034, growing at a Compound Annual Growth Rate (CAGR) of 5.7% during the forecast period from 2025 to 2034. Specifically within the U.S., the community banking market reached a valuation of $6.35 billion in 2024, with a projected CAGR of 3.8%. North America, as a whole, held a dominant position in the global community banking market in 2024, capturing over 40% of the market share, with $6.68 billion in revenue.
Focusing on Illinois, as of Q4 2024, there were 313 Illinois-based community banks holding $224.8 billion in total assets. This represents 8.1% of all community banks nationally, holding 6.4% of total community banking assets in the U.S. Illinois community bank assets grew by 3.9% in Q4 2024.
The total deposits in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area were $219.43 billion as of June 30, 2013, across 3,029 branches. More recently, after a merger completed in July 2025, Old Second Bancorp's combined entity boasts approximately $6.98 billion in assets, $5.95 billion in deposits, and $5.09 billion in loans across 56 locations in the downtown, west, and south suburban Chicago market, as of March 31, 2025.
Based on the available information, the addressable markets for Old Second Bancorp's main products and services, within their primary operating region of Illinois and the Chicago metropolitan area, are substantial.
The addressable market sizes are as follows:
- For the Commercial Banking industry in Illinois: $70.8 billion (in 2025, Region: Illinois, U.S.).
- For total assets held by Illinois-based community banks: $224.8 billion (as of Q4 2024, Region: Illinois, U.S.).
- For total deposits in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area: $219.43 billion (as of June 30, 2013, Region: Chicago MSA, U.S.).
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Old Second Bancorp (OSBC) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:
- Strategic Acquisitions: The recent acquisition of Bancorp Financial, including Evergreen Bank Group, is a significant driver of revenue growth. This acquisition has already led to increased net interest and dividend income, noninterest income, and overall asset growth. Management anticipates continued growth and operational efficiencies from the integration of these entities, with an expected shortened earn-back period.
- Loan Growth: Old Second Bancorp projects low to mid-single-digit organic loan growth in 2025. This growth is expected across various portfolios, including leases, commercial real estate-investor, and construction. The acquisition of Bancorp Financial also significantly bolstered total loans, notably expanding the consumer lending portfolio, including the new powersport loan segment.
- Net Interest Margin (NIM) Strength and Improvement: The company has demonstrated a strong and stable net interest margin, which has improved or remained consistent even with fluctuating market interest rates. Management has expressed confidence in maintaining a robust NIM, expecting it to remain above 4.50% even if the Federal Funds rate were around 3%. The Bancorp Financial acquisition further contributed to an improved net interest margin.
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Share Repurchases
- In December 2024, Old Second Bancorp, Inc. announced a share repurchase program authorizing the repurchase of up to 2,234,896 shares, for $39.1 million, valid until December 31, 2024, with a purchase price not exceeding $17.5 per share.
- During the third quarter of 2025, the company repurchased 326,854 shares at $18.00 per share, totaling $5.9 million, as part of a common stock repurchase program approved on December 17, 2024.
- A previous repurchase program authorized in September 2019 for up to 1,494,826 shares expired on September 19, 2020, but was extended through October 20, 2021, with 775,553 shares remaining available as of December 31, 2020.
Share Issuance
- In conjunction with the Bancorp Financial acquisition, newly issued shares provided $140.5 million of capital during the third quarter of 2025, involving approximately 7.9 million shares of common stock.
Outbound Investments
- On July 1, 2025, Old Second Bancorp completed its merger with Bancorp Financial, Inc., for a total consideration of approximately $189.4 million, consisting of 7.9 million shares of Old Second common stock and $48.9 million in cash. This merger integrated Bancorp Financial's subsidiary Evergreen Bank Group into Old Second National Bank.
- In December 2024, the company acquired five branches from First Merchants Bank, adding $268 million in deposits and $7.1 million in loans.
- Throughout 2025, O2 Sponsor Finance provided senior secured credit facilities to support various private equity acquisitions, including those by San Francisco Equity Partners, RF Investment Partners, Branford Castle Partners, Fort Point Capital, and Mangrove Equity Partners.
Capital Expenditures
- Old Second Bancorp's capital expenditures for the quarter ending June 2025 were $789,000.
