Old Second Bancorp, Inc. (NASDAQ: OSBC) serves as the bank holding company for Old Second National Bank, a community bank established in 1871 and headquartered in Aurora, Illinois. The company operates primarily in the Chicago metropolitan area and neighboring counties, providing a comprehensive suite of financial services to individuals, small-to-medium enterprises, and corporate clients.
Old Second Bancorp's business model centers on traditional community banking, operating through a single reportable segment. Its primary revenue sources are net interest income—generated by collecting local deposits and lending them out at higher rates—and noninterest income from service charges, wealth management, and trust services. The company's lending portfolio is diversified across commercial real estate, commercial and industrial (C&I) loans, residential mortgages, construction loans, and consumer loans (including a specialized powersports portfolio). On the deposit side, it offers checking, savings, money market, and time deposit accounts. Additionally, the bank provides treasury management, safe deposit operations, and trust and wealth management services.
Operating through a network of over 60 banking centers in northern Illinois, Old Second Bancorp leverages its deep local roots to compete against both large national banks and smaller community institutions. Its competitive position is strengthened by its relationship-driven approach, localized decision-making, and strategic acquisitions, such as the integrations of West Suburban Bancorp and Bancorp Financial, which have expanded its footprint and asset base in the Midwest.
