Mission Statement, Vision, & Core Values of Old Second Bancorp, Inc. (OSBC)

You're looking at Old Second Bancorp, Inc.'s (OSBC) foundation-its Mission Statement, Vision, and Core Values-which is smart, because those principles are defintely tested when the numbers shift. For instance, the third quarter of 2025 saw reported Net Income drop to $9.9 million from the previous quarter, largely due to the integration of the Bancorp Financial acquisition, even as Total Assets grew to nearly $7.0 billion. Does a core value like 'Community Focus' hold up when a major acquisition drives a big bump in noninterest expense to $63.2 million? Let's map out how these foundational statements guide a regional bank through real-world M&A and market volatility.

Old Second Bancorp, Inc. (OSBC) Overview

You need to understand the foundation of a company like Old Second Bancorp, Inc. before you can assess its forward-looking value. This is a regional bank holding company built on a long-standing community banking model, but it's defintely not stuck in the past. It offers a full suite of services across consumer, commercial, and wealth management lines.

The flagship, Old Second National Bank, first opened its doors in 1871, making it a fixture in Illinois for over a century and a half. The holding company, Old Second Bancorp, Inc., was formally established in 1982 and is headquartered in Aurora, Illinois. For the latest available annual data, the company recorded an annual revenue of $311.24 million.

Its product mix is comprehensive, covering everything from basic deposit accounts (checking, savings, money market) to complex commercial and wealth management solutions. This diversified approach helps stabilize revenue, even when one area of the economy slows down. They offer:

• Commercial, industrial, and real estate lending.
• Consumer lending, including a new powersport loan segment.
• Trust services and wealth management solutions.
• Electronic banking and corporate cash management.

Q3 2025 Financial Performance: Acquisition-Driven Growth

The third quarter of 2025, which ended September 30, was a pivotal period for Old Second Bancorp, Inc., primarily due to the strategic acquisition of Bancorp Financial, Inc. (Evergreen Bank Group) on July 1, 2025. This move dramatically reshaped the balance sheet and income statement, so you have to look at the adjusted numbers to see the true operational performance.

Reported net income for Q3 2025 was $9.9 million, or $0.18 per diluted share, which was lower than the prior quarter due to significant, one-time transaction-related expenses. However, the adjusted net income (a non-GAAP measure that strips out these one-time costs) tells a different story: it rose to $28.4 million, or $0.53 per diluted share. That's a clear signal of underlying strength.

Here's the quick math on revenue: Quarterly revenue reached approximately $95.88 million. More importantly, the acquisition fueled massive growth in their core business lines:

• Net Interest and Dividend Income hit $82.8 million, a 28.9% increase from the second quarter of 2025.
• Total Loans grew to $5.27 billion as of September 30, 2025, with the Bancorp Financial acquisition contributing $1.19 billion of that increase.

The jump in noninterest income to $13.1 million also shows the diversification strategy is working.

Old Second Bancorp, Inc.'s Position in the Regional Banking Sector

When you look at the regional banking sector, Old Second Bancorp, Inc. stands out for its focused growth strategy and strong financial health. It's a bank with a market capitalization of roughly $903 million, making it a significant player in the Illinois market.

The street is bullish, too. Wall Street analysts currently hold a consensus Buy rating on the stock, with an average 12-month price target of $21.63. That suggests a forecasted upside of nearly 22% from recent trading levels.

This confidence is grounded in its projected performance. Revenue is forecast to grow at an average of 7.8% per annum over the next two years, which is notably ahead of the 7.1% growth forecast for the US Banks industry as a whole. Simply put, they are expected to outpace the industry average. If you want to dig deeper into the metrics that drive this outperformance, you should check out Breaking Down Old Second Bancorp, Inc. (OSBC) Financial Health: Key Insights for Investors.

Old Second Bancorp, Inc. (OSBC) Mission Statement

When you look at a bank's mission statement, you're really checking its long-term strategy, the compass for every decision from a new loan product to a major acquisition. For Old Second Bancorp, Inc., their mission is clear: it's centered on providing exceptional customer service and delivering tailored financial solutions to individuals, families, and businesses, all while building lasting relationships and fostering community growth. That's a powerful statement, especially in a year like 2025 where market volatility is a defintely concern.

This mission isn't just marketing fluff; it's the framework that guided their strategic move to acquire Bancorp Financial, Inc. in July 2025. That deal, which added over $1.4 billion in assets, was a direct action to enhance their service and product offerings, particularly in consumer lending. This is how a mission translates into a balance sheet action.

Here's the quick math: A clear mission helps drive operational efficiency, which is why Old Second Bancorp was able to report a healthy efficiency ratio of 55.99% in the second quarter of 2025. You want to see that kind of disciplined execution backing up the talk.

Component 1: Exceptional Customer Service and Tailored Financial Solutions

The first core component of Old Second Bancorp's mission is a dual focus: delivering exceptional service and crafting financial solutions that fit the client. This means moving beyond standard products to offer things like specialized commercial, industrial, and real estate lending, plus comprehensive wealth management.

The best proof of an institution's service commitment is its financial performance, which shows an ability to execute and reinvest. In the second quarter of 2025, the company's Return on Average Tangible Common Equity (ROATCE) was a strong 15.29%, and their tax equivalent net interest margin was 4.85%. Those numbers reflect a business model that is both profitable and disciplined, allowing them to maintain the capital necessary to support high-quality, customized service.

The acquisition of Evergreen Bank Group, a subsidiary of Bancorp Financial, Inc., is a concrete example of this commitment in 2025. It immediately expanded their product suite, adding 'meaningful consumer lending capabilities' to their portfolio. This is how they tailor solutions: they buy new capabilities to meet evolving customer needs.

• Q3 2025 net interest and dividend income hit $82.8 million.
• Total loans stood at $5.27 billion as of September 30, 2025.
• New offerings enhance flexibility and profitability.

Component 2: Building Lasting Relationships

For a financial institution, building lasting relationships means being a reliable, consistent partner-for customers, employees, and stockholders. Old Second Bancorp has a history dating back to 1874, which shows a deep-seated commitment to longevity and stability.

For you, the investor, this commitment is visible in their capital management. The company has maintained its dividend for 10 consecutive years, a sign of financial prudence and a focus on long-term shareholder value. This consistency provides a tangible return even as the market shifts.

What this estimate hides is the human element: the focus on relationship banking helps stabilize the deposit base. A stable base is crucial for weathering economic cycles, and their loan-to-deposit ratio was a manageable 83% at the end of the second quarter of 2025, reflecting a strong, liquid balance sheet. A bank that prioritizes relationships is one that is less likely to see a sudden flight of capital.

Component 3: Fostering Community Growth

A community bank's mission is intrinsically tied to its local economy. Old Second Bancorp, headquartered in Aurora, Illinois, has a strong market presence across Northern Illinois, particularly in the Fox Valley and Western Chicago metropolitan areas. Their growth strategy isn't just about maximizing profit; it's about building up the individuals and businesses in their communities.

This community focus translates into strategic lending that fuels local economic activity. Their total loans reached $5.27 billion by September 30, 2025, driven in part by organic growth of $72.3 million in the third quarter alone, excluding the acquisition impact. That organic growth is money flowing directly to local businesses and families for construction, leases, and other needs.

To be fair, the Q3 2025 reported net income was $9.9 million, a decrease from the prior quarter, largely due to transaction-related expenses and provision for credit losses tied to the Bancorp Financial acquisition. But that short-term cost is a long-term investment in community growth, as the expanded services and scale will better serve a larger geographic footprint. You can read more about how this history and mission align with their business model here: Old Second Bancorp, Inc. (OSBC): History, Ownership, Mission, How It Works & Makes Money.

Old Second Bancorp, Inc. (OSBC) Vision Statement

You're looking for the bedrock of Old Second Bancorp, Inc.'s (OSBC) strategy, and while they don't publish a single, corporate-jargon-laden vision statement, their core philosophy is clear: a commitment to the customer and community, grounded in a 150-year history of financial discipline. This focus is what drives their near-term performance, even as they navigate the integration costs of a major acquisition.

The key takeaway is that their vision is operational, not aspirational-it maps directly to their local Chicago-area market and their strategic moves, like the recent acquisition of Bancorp Financial, Inc. and its subsidiary, Evergreen Bank Group, which closed on July 1, 2025. This deal significantly changed their balance sheet, but the underlying mission remains local and client-centric. You can see the impact of this growth strategy in the numbers, but you defintely need to understand the 'why' behind the moves.

Pillar 1: Putting the Customer First (The 'You're First' Vision)

Old Second Bancorp, Inc.'s vision starts with the client. Their motto, 'We're Old Second because you're first,' isn't just a marketing line; it's the operational filter for their product design and service delivery. They believe that their growth is a direct result of helping your business or family grow first, a philosophy that has held since they opened their doors in 1871. This is a crucial distinction from larger, money-center banks that often prioritize product sales over client needs.

For example, this customer-first approach is visible in their loan portfolio expansion. Total loans stood at $5.27 billion as of September 30, 2025, an increase of $1.27 billion from the end of the second quarter. Here's the quick math: the acquisition brought in about $1.19 billion in loans, but the remaining $72.3 million in organic loan growth shows that their core business is still actively serving its client base, adding new segments like powersport loans from the merger. That organic growth is a direct result of their relationship-driven model.

• Design products with your unique needs in mind.
• Build reputation by building up individuals and businesses.
• Work hard every day to earn and keep your trust.

Pillar 2: Deep Community Commitment and Local Investment

The company's vision is intrinsically tied to the Chicagoland and surrounding communities they serve. They are a local bank dedicated to fueling the growth of individuals, families, and businesses, which translates into a tangible commitment that goes beyond standard banking operations. Their team devotes hundreds of hours each year to local boards and community-betterment projects, seeing it as a responsibility, not just a charitable activity.

This deep local tie is what gives them a competitive edge in a fragmented regional banking market. It allows them to maintain a strong net interest margin (NIM), which was a healthy 4.85% in the second quarter of 2025, a sign of effective local deposit gathering and lending practices. This local focus also ensures that their employees, many of whom are hired locally, are personally invested in the success of the community, which helps to mitigate risk and drive long-term stability. If you want to dive deeper into the metrics that underpin this stability, you can check out Breaking Down Old Second Bancorp, Inc. (OSBC) Financial Health: Key Insights for Investors.

Pillar 3: Financial Responsibility and Enduring Trust (The 150-Year Foundation)

For a regional bank, longevity is the ultimate metric of success. Old Second Bancorp, Inc. has persevered through more than 150 years of challenging economic climates, backed by an unwavering sense of financial responsibility. This focus on fiscal prudence is what allows them to make strategic moves, like the Bancorp Financial acquisition, without jeopardizing their capital position.

To be fair, the third quarter of 2025 saw GAAP net income drop to $9.9 million, or $0.18 per diluted share, a significant decrease from $21.8 million in the prior quarter. But what this estimate hides is the one-time, non-recurring costs: the pre-tax adjusting items impacting the quarter included $13.2 million in day two provision for credit losses and $11.5 million in transaction-related expenses from the acquisition. Adjusted net income, which strips out these integration costs, was actually a robust $28.4 million, or $0.53 per diluted share. That adjusted number is the true reflection of their core profitability and financial health. Their Common Equity Tier 1 ratio also increased to 13.77% in Q2 2025, up from 13.47%, demonstrating their capital strength even before the full integration.

This enduring trust is built on:

• Fiscally responsible and humanly focused operations.
• Maintaining a strong capital base through strategic growth.
• Building strong, lasting relationships before establishing accounts.

The difference between the GAAP and adjusted net income is a classic example of a near-term risk-integration expense-mapped to a long-term opportunity: increased scale and profitability.

Old Second Bancorp, Inc. (OSBC) Core Values

You're looking past the headline numbers-the $9.9 million GAAP net income for Q3 2025-to understand the bedrock of Old Second Bancorp, Inc. (OSBC). That's smart. A bank's long-term value isn't just in its net interest margin (NIM); it's in the core values that guide its capital allocation and strategic moves. For OSBC, these values are clear, even if they aren't always listed in a neat bulleted list. They drive everything from loan growth to merger strategy.

Here's the quick math: values translate to tangible financial results when they guide major decisions, like the July 2025 acquisition of Bancorp Financial, Inc.

Community Focus & Relationship Building

This value is foundational, rooted in the bank's history of 'building up the individuals and businesses in our communities.' It means prioritizing strong, lasting relationships over transactional volume alone. For you, the investor, this translates to stable, high-quality loan portfolios and a sticky deposit base, which is defintely a competitive advantage in a volatile rate environment.

We see this in their strategic footprint. Old Second Bancorp focuses on the Illinois counties of Kane, Kendall, DuPage, and others, ensuring their lending decisions are grounded in local knowledge. The merger with Bancorp Financial, Inc. was partly justified by a desire to create a 'stronger banking institution for our customers and communities of nearly 18 years,' not just a bigger one. This focus is what helps maintain asset quality, even as total loans swelled to $5.27 billion as of September 30, 2025.

• Build strong, lasting relationships.
• Prioritize local community stability.
• Ensure lending decisions are locally grounded.

Fiscally Responsible Growth (Stockholder Value)

The bank explicitly states it is 'fiscally responsible,' and that's the lens through which you must view their recent M&A activity. The goal is simple: drive long-term stockholder value. The Bancorp Financial acquisition, completed in Q3 2025, was a massive step, adding $1.19 billion in loans and significantly diversifying their consumer lending portfolio, including a new powersport loan segment.

What this estimate hides is the initial cost. GAAP net income for Q3 2025 was $9.9 million, down from the prior year due to acquisition-related expenses and provision for credit losses. But, the adjusted net income, which strips out these nonrecurring items, was $28.4 million, or $0.53 per diluted share, beating expectations. That's the real measure of their core profitability post-merger. Plus, they continue to reward shareholders, declaring a cash dividend of $0.07 per share payable in November 2025. This commitment to a consistent dividend yield, maintained for ten consecutive years, shows a disciplined approach to capital returns.

Empowered Ownership & Innovation

Old Second Bancorp's internal values encourage employees to 'take empowered ownership, use their creativity to innovate, and to keep growing through continuous development'. In the financial world, this translates to developing new, non-traditional revenue streams that aren't purely reliant on interest rate cycles. Noninterest income is key here.

Their Q3 2025 noninterest income hit $13.1 million, a jump of 23.9% from the same quarter last year. This growth comes from their wealth management services and expanded product offerings, like the new powersport loan segment acquired in the merger, which is a clear example of using 'creativity to innovate' their loan mix. It's a smart move to diversify revenue, especially as net interest margins face pressure. For a deeper dive into the numbers behind these strategic shifts, you should read Breaking Down Old Second Bancorp, Inc. (OSBC) Financial Health: Key Insights for Investors.