Old Second Bancorp, Inc. (OSBC): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the story behind Old Second Bancorp, Inc. (OSBC), a key player in the Illinois banking sector? With a history stretching back to 1871, and **\$5.65 billion** in assets as of December 31, 2024, OSBC has deep roots in community banking. But how did this regional bank holding company, trading on NASDAQ as OSBC, build its reputation, and what strategies drive its operations and profitability today?

From its founding in 1981 to its current position, Old Second Bancorp has focused on providing comprehensive financial services, including personal banking, loans, business banking, and wealth management. With a recent merger announcement with Evergreen Bank Group in February 2025, projecting pro forma assets of **\$7.1 billion**, OSBC is set to become the second-largest bank in the Chicago MSA among institutions with less than **\$10 billion** in assets. Keep reading to discover the history, ownership structure, mission, and business model that define Old Second Bancorp, Inc.

Old Second Bancorp, Inc. (OSBC) History

Old Second Bancorp, Inc. Founding Timeline

Year established

Old Second Bancorp, Inc. was established in 1871.

Original location

The bank was originally located in Aurora, Illinois.

Founding team members

Details on the specific founding team members are not readily available in the provided context. However, it was founded by local business leaders in Aurora, Illinois.

Initial capital/funding

Specific details about the initial capital or funding are not available in the search results.

Old Second Bancorp, Inc. Evolution Milestones

Old Second Bancorp, Inc. Transformative Moments

• Formation of Old Second Bancorp, Inc. in 1994: This marked a transition from a single bank to a holding company, enabling strategic acquisitions and broader financial service offerings.
• Strategic Acquisitions:
  • First United Bancorp (1997): Enhanced market presence.
  • West Suburban Bancorp, Inc. (2017): Significantly increased market share in the Chicago area.
  • Greater Community Financial Corp (2023): Expanded service capabilities and market reach within Illinois.
• Leadership Transition in 2007: The promotion of Richard J. Dold to President and CEO brought new strategies and leadership focus.

To gain more insights into investor behavior and ownership dynamics, explore this related article: Exploring Old Second Bancorp, Inc. (OSBC) Investor Profile: Who’s Buying and Why?

Old Second Bancorp, Inc. (OSBC) Ownership Structure

Old Second Bancorp, Inc. features a mixed ownership structure, encompassing individual investors, institutional shareholders, and company insiders, shaping its corporate governance and strategic direction.

Old Second Bancorp, Inc.'s Current Status

Old Second Bancorp, Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange. This allows a wide range of investors to own a portion of the company. More insights can be found in this related article: Exploring Old Second Bancorp, Inc. (OSBC) Investor Profile: Who’s Buying and Why?

Old Second Bancorp, Inc.'s Ownership Breakdown

The ownership of Old Second Bancorp, Inc. is distributed among various types of shareholders. Here is a general overview:

Old Second Bancorp, Inc.'s Leadership

The leadership team of Old Second Bancorp, Inc. plays a crucial role in guiding the company's strategic initiatives and overseeing its operations. Key members and aspects of the leadership include:

• Chairman and CEO: James Eccher holds the position of Chairman and Chief Executive Officer.
• Executive Team: The executive team includes individuals in key roles such as Chief Financial Officer, Chief Operating Officer, and other senior vice presidents overseeing various business lines and support functions.
• Board of Directors: The Board of Directors provides oversight and guidance to the company's management team. As of the latest information, the board consists of a diverse group of individuals with experience in banking, finance, and other relevant fields.

Old Second Bancorp, Inc. (OSBC) Mission and Values

Old Second Bancorp, Inc. aims to deliver value to its customers, communities, employees, and shareholders, emphasizing long-term relationships and community support. The company's values reflect a commitment to integrity, service, and building strong local connections.

Old Second Bancorp, Inc.'s Core Purpose

Official mission statement

Old Second Bancorp's mission statement is to be the preferred community financial services provider in the markets it serves. This involves:

• Providing a broad range of financial products and services.
• Delivering exceptional customer service.
• Creating value for shareholders.
• Supporting the well-being of the communities they serve.

Vision statement

While a specific, formally declared vision statement may not be publicly highlighted, Old Second Bancorp's vision is reflected in its consistent focus on sustainable growth and community partnership. This entails:

• Expanding its market presence through strategic acquisitions and organic growth.
• Investing in technology and infrastructure to enhance customer experience.
• Maintaining a strong capital base to support lending and investment activities.
• Fostering a culture of employee development and engagement.

Company slogan/tagline

Old Second's commitment extends beyond mere financial transactions, aiming to foster genuine connections and contribute to the prosperity of the regions it serves. Additional details about OSBC's financial performance and stability can be found at: Breaking Down Old Second Bancorp, Inc. (OSBC) Financial Health: Key Insights for Investors. The slogan or tagline of Old Second Bancorp, Inc. is not explicitly available, but their actions and communications suggest a focus on:

• Community commitment.
• Personalized service.
• Building lasting relationships.

Old Second Bancorp, Inc. (OSBC) How It Works

Old Second Bancorp, Inc. operates as the bank holding company for Old Second National Bank, providing a range of financial services to individuals, businesses, and community organizations.

Old Second Bancorp, Inc.'s Product/Service Portfolio

Old Second Bancorp, Inc.'s Operational Framework

Old Second Bancorp operates with a focus on building strong customer relationships and providing personalized financial solutions. Key operational aspects include:

• Customer Relationship Management: Emphasizing personalized service and local decision-making to foster long-term customer loyalty.
• Credit Risk Management: Employing rigorous underwriting standards and monitoring processes to maintain a high-quality loan portfolio.
• Treasury Management: Optimizing cash flow and investment strategies to enhance profitability and shareholder value.
• Compliance and Regulatory Oversight: Adhering to all applicable banking regulations and maintaining a strong compliance framework.
• Technology Integration: Investing in digital banking platforms and technology solutions to improve customer experience and operational efficiency.

Old Second Bancorp, Inc.'s Strategic Advantages

Old Second Bancorp distinguishes itself through several strategic advantages:

• Strong Local Presence: A well-established network of branches and a deep understanding of local markets, enabling tailored financial solutions.
• Experienced Management Team: A leadership team with extensive banking experience and a commitment to sustainable growth.
• Diversified Revenue Streams: A mix of commercial, retail, and wealth management services, reducing reliance on any single market segment.
• Sound Financial Performance: Consistent profitability and a strong capital base, providing stability and resources for future growth.
• Community Focus: Active involvement in local communities, enhancing brand reputation and customer loyalty.

To gain more insights into the values that drive Old Second Bancorp, Inc., explore Mission Statement, Vision, & Core Values of Old Second Bancorp, Inc. (OSBC).

Old Second Bancorp, Inc. (OSBC) How It Makes Money

Old Second Bancorp, Inc. primarily generates revenue through traditional banking activities, such as earning interest on loans and investments, as well as from fees for various banking services.

Old Second Bancorp, Inc.'s Revenue Breakdown

As of the fiscal year 2024, the bank's revenue streams can be broken down as follows:

Old Second Bancorp, Inc.'s Business Economics

Old Second Bancorp, Inc.'s business economics are influenced by several key factors:

• Interest Rate Spread: The difference between the interest earned on loans and the interest paid on deposits significantly impacts profitability. Fluctuations in market interest rates can affect this spread.
• Loan Portfolio Composition: The types of loans (e.g., commercial, residential, consumer) and their associated risk levels influence the overall return on assets.
• Operating Efficiency: Managing operational costs effectively helps to maximize profitability. This includes controlling expenses related to salaries, technology, and infrastructure.
• Regulatory Environment: Compliance with banking regulations affects operational costs and strategic decisions.

Old Second Bancorp, Inc.'s Financial Performance

Key aspects of Old Second Bancorp, Inc.'s financial performance include:

• Net Income: As of the fiscal year 2024, Old Second Bancorp reported a net income of $55.9 million, compared to $77.4 million in the prior year.
• Earnings Per Share (EPS): The diluted earnings per share was reported at $1.21 for the fiscal year 2024.
• Total Assets: As of December 31, 2024, the company's total assets amounted to $6.51 billion.
• Return on Average Assets (ROAA): The ROAA for the year 2024 was 0.86%.
• Return on Average Equity (ROAE): The ROAE was reported as 9.43% for the same period.
• Net Interest Margin (NIM): The net interest margin, a critical indicator of profitability, stood at 3.34% for the year 2024.

For further insights into the financial health of Old Second Bancorp, Inc., you might find this resource helpful: Breaking Down Old Second Bancorp, Inc. (OSBC) Financial Health: Key Insights for Investors

Old Second Bancorp, Inc. (OSBC) Market Position & Future Outlook

Old Second Bancorp, Inc. is strategically positioned to leverage its community banking model and expand its market presence, although it faces challenges from larger regional and national banks. The future outlook involves capitalizing on digital banking trends and managing interest rate risks to maintain profitability and growth.

Competitive Landscape

Opportunities & Challenges

Industry Position

Old Second Bancorp operates primarily as a community bank, focusing on providing personalized services to individuals and small businesses. Key aspects of its industry position include:

• Customer-Centric Approach: Emphasizing local decision-making and customer service.
• Regional Focus: Concentrating on specific geographic markets to build strong relationships.
• Conservative Lending: Maintaining a disciplined approach to credit risk management.

For more insights into the investors and ownership structure, check out: Exploring Old Second Bancorp, Inc. (OSBC) Investor Profile: Who’s Buying and Why?