Old Second Bancorp, Inc. (OSBC) AI Stock Analysis

Headquartered in Aurora, Illinois, Old Second Bancorp, Inc. serves as the bank holding company for Old Second National Bank, incorporated in 1981. The institution provides retail and commercial deposit accounts, including demand deposits, savings, money market accounts, and certificates of deposit. Its lending operations encompass commercial loans, lease financing receivables, and real estate loans such as commercial, construction, residential mortgages, and home equity lines of credit. Old Second Bancorp also delivers wealth management services, trust services, investment products, foreign currency exchange, and U.S. treasury securities acquisition, while exploring digital assets and cryptocurrencies.

Revenue expanded from $141.9M in FY2021 to $397.0M in FY2025, delivering a 5-year revenue CAGR of 23.3%. Net income rose from $20.0M in FY2021 to $91.7M in FY2023, before settling at $85.3M in FY2024 and $80.3M in FY2025. Operating margin was 19.6% in FY2021, reached 38.8% in FY2023, and finished at 27.9% in FY2025. Diluted EPS reached $2.06 in FY2025. For the trailing twelve months ended June 30, 2026, revenue stood at $341.4M with a net profit margin of 27.1%. In the latest quarter, quarterly revenue grew 22.7% year-over-year, and quarterly earnings grew 12.5%.

As of June 30, 2026, Old Second Bancorp held $46.7M in cash and short-term investments alongside total debt of $468.7M, resulting in net debt of $422.0M. Total assets reached $6.85B against shareholders' equity of $902.8M, representing a debt-to-equity ratio of 0.52 and a current ratio of 0.12. In FY2025, the bank generated $122.3M in operating cash flow and $117.8M in free cash flow. Capital deployment included $4.5M for capital expenditures, $7.4M in share buybacks, and $12.2M in dividends paid.

At a market capitalization of $1.27B and a share price of $24.88, Old Second Bancorp trades at a trailing P/E of 14.1x, above the 12.1x median of its US-listed Financial Services peers. However, its forward P/E of 8.6x is below the peer median of 10.8x. The stock trades at a price-to-sales ratio of 3.7x and a price-to-book ratio of 1.4x. Over the past year, OSBC returned 50.9%, outpacing the S&P 500 return of 16.8%. Over five years, the stock gained 101.1% compared to 83.0% for the S&P 500.

Old Second Bancorp pays a forward annual dividend of $0.28 per share, yielding 1.13% with a payout ratio of 13.0%. The company has distributed dividends for 11 consecutive years on a quarterly schedule. Its annualized 5-year dividend growth rate stands at 44.3%, with the most recent ex-dividend date recorded on July 31, 2026.

Wall Street analysts maintain 3 Strong Buy, 2 Buy, and 1 Hold ratings on OSBC, with no Sell recommendations. The mean price target is $28.33, implying 13.9% upside from the last close of $24.88. For the fiscal year ending December 31, 2026, analysts estimate EPS of $2.21, reflecting 7.4% growth, on revenue of $335.1M. The company beat EPS estimates in 3 of the last 4 quarters. The next earnings release is scheduled for October 21, 2026.

This page is an AI-written research summary of Old Second Bancorp, Inc. (OSBC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: OSBC income statement, OSBC balance sheet, OSBC key metrics, OSBC analyst forecast, OSBC chart. See the OSBC stock overview for the latest quote and news.