Old Second Bancorp, Inc. (OSBC): Análisis PESTLE [Actualizado en enero de 2025]

En el panorama dinámico de la banca regional, Old Second Bancorp, Inc. (OSBC) navega por una compleja red de desafíos y oportunidades que se extienden mucho más allá de las métricas financieras tradicionales. Este análisis integral de la mano presenta los intrincados factores externos que dan forma a la trayectoria estratégica del banco, desde el entorno regulatorio matizado de Illinois hasta las interrupciones tecnológicas emergentes y las expectativas sociales en evolución. Al diseccionar las dimensiones políticas, económicas, sociológicas, tecnológicas, legales y ambientales, proporcionamos una visión holística de cómo OSBC se está posicionando en un ecosistema bancario cada vez más competitivo y transformador.

Old Second Bancorp, Inc. (OSBC) - Análisis de mortero: factores políticos

Impacto en las regulaciones bancarias estatales de Illinois

El Departamento de Regulación Financiera y Profesional de Illinois aplica requisitos específicos de cumplimiento bancario para OSBC. A partir de 2024, el estado exige:

Aspecto regulatorio	Requisitos específicos
Adecuación de capital	Relación de capital de nivel 1 mínimo de 8.5%
Requisitos de liquidez	Relación mínima de cobertura de liquidez del 100%
Protección al consumidor	Señión estricta a las leyes de prevención de la discriminación de préstamos estatales

Influencia de la política monetaria de la Reserva Federal

Parámetros de política monetaria de la Reserva Federal que afectan directamente a OSBC:

• Tasa actual de fondos federales: 5.33% (a partir de enero de 2024)
• Rango de tasas de interés de referencia de la Reserva Federal: 5.25% - 5.50%
• Impacto del margen de préstamos bancarios: aproximadamente 2.75-3.25%

Cumplimiento de la Ley de Reinversión Comunitaria

Las prácticas de préstamo de OSBC se rigen por las regulaciones de la Ley de Reinversión Comunitaria (CRA), con métricas de desempeño específicas:

Categoría de rendimiento de CRA	Métrico de cumplimiento
Préstamos para pequeñas empresas	37.6% de los préstamos a áreas de ingresos bajos a moderados
Inversiones de desarrollo comunitario	$ 12.4 millones en proyectos calificados de desarrollo comunitario
Accesibilidad de préstamo	89.2% Puntuación de accesibilidad de préstamos

Panorama de supervisión bancaria federal

Marco regulatorio bancario de la administración federal actual:

• Requisitos de prueba de estrés mejorados para bancos con activos superiores a $ 250 millones
• Aumento de los mandatos de cumplimiento de ciberseguridad
• Protocolos de informes anti-lavado de dinero (AML) más estrictos

Old Second Bancorp, Inc. (OSBC) - Análisis de mortero: factores económicos

Condiciones económicas regionales en Illinois que afectan el rendimiento de la cartera de préstamos

A partir del cuarto trimestre de 2023, el PIB de Illinois se situó en $ 980.4 mil millones. La tasa de desempleo del estado fue de 4,3% en diciembre de 2023. La Old Second Bancorp, la cartera de préstamos en la región, refleja estos indicadores económicos.

Indicador económico	Valor (cuarto trimestre 2023)	Impacto en OSBC
PIB de Illinois	$ 980.4 mil millones	Correlación directa con el rendimiento del préstamo
Tasa de desempleo	4.3%	Indica la capacidad potencial de reembolso del préstamo
Ingresos familiares promedio	$72,205	Influencia de la evaluación del riesgo de crédito

Las fluctuaciones de la tasa de interés impactan en el margen de interés neto y la rentabilidad

La tasa de fondos federales a partir de enero de 2024 era de 5.33%. El margen de interés neto de OSBC en 2023 fue del 3.42%, directamente influenciado por estos cambios de tasa.

Métrica financiera	Valor 2023	Valor 2022
Margen de interés neto	3.42%	3.15%
Ingresos de intereses netos	$ 156.7 millones	$ 142.3 millones

Entorno de préstamos para pequeñas empresas

En Illinois, las originaciones de préstamos para pequeñas empresas totalizaron $ 8.6 mil millones en 2023. Old Second Bancorp's Small Business Lending Portafolio creció un 7.2% durante el mismo período.

Métrica de préstamos para pequeñas empresas	Valor 2023
Originaciones de préstamos para pequeñas empresas de Illinois	$ 8.6 mil millones
Crecimiento de la cartera de préstamos para pequeñas empresas de OSBC	7.2%
Tamaño promedio de préstamos para pequeñas empresas	$187,500

Tendencias locales de recuperación económica en el área metropolitana de Chicago

La recuperación económica del área metropolitana de Chicago mostró indicadores robustos en 2023:

• Crecimiento del PIB metropolitano: 3.1%
• Tasa de ocupación de bienes raíces comerciales: 82.5%
• Nuevas formaciones comerciales: 14,200

Indicador de recuperación económica	Valor 2023
Crecimiento del PIB metropolitano	3.1%
Ocupación de bienes raíces comerciales	82.5%
Nuevas formaciones comerciales	14,200

Old Second Bancorp, Inc. (OSBC) - Análisis de mortero: factores sociales

Cambios demográficos en la base de clientes de impacto del mercado suburbano de Chicago

A partir de 2024, el condado de Kane y el condado de DuPage, donde opera OSBC principalmente, demuestran características demográficas específicas:

Condado	Población	Edad media	Ingresos familiares promedio
Condado de Kane	549,204	36.7 años	$92,433
Condado de DuPage	932,877	40.2 años	$106,229

Aumento de las preferencias de banca digital entre los clientes más jóvenes

Tasas de adopción de banca digital para el objetivo demográfico de OSBC:

Grupo de edad	Uso de la banca digital	Frecuencia de banca móvil
18-34 años	87%	12.4 veces al mes
35-54 años	72%	8.6 veces al mes

Creciente demanda de servicios financieros personalizados

Preferencias del cliente para servicios bancarios personalizados:

• 67% de deseo de asesoramiento financiero personalizado
• El 53% espera ideas financieras en tiempo real
• 42% quiere sistemas de recomendación impulsados ​​por la IA

Enfoque bancario centrado en la comunidad

Métricas de participación de la comunidad local para OSBC:

Categoría de inversión comunitaria	Asignación 2024
Apoyo comercial local	$ 3.2 millones
Subvenciones de desarrollo comunitario	$ 1.5 millones
Programas de educación financiera	$750,000

Old Second Bancorp, Inc. (OSBC) - Análisis de mortero: factores tecnológicos

Inversiones de plataforma de banca digital para mejorar la experiencia del cliente

Old Second Bancorp invirtió $ 2.7 millones en tecnología de banca digital en 2023. La plataforma digital del banco atiende a 87,342 usuarios de banca en línea activa a partir del cuarto trimestre de 2023.

Métrica de plataforma digital	2023 datos
Inversión bancaria digital total	$ 2.7 millones
Usuarios bancarios en línea activos	87,342
Volumen de transacciones en línea	1.2 millones mensuales

Infraestructura de ciberseguridad crítica para proteger los datos financieros del cliente

En 2023, Old Second Bancorp asignó $ 1.5 millones específicamente para la infraestructura de ciberseguridad. El banco mantiene Certificación ISO 27001 para la gestión de seguridad de la información.

Métrica de ciberseguridad	2023 datos
Inversión de ciberseguridad	$ 1.5 millones
Auditorías anuales de ciberseguridad	2
Incidentes de seguridad detectados	12

Desarrollo de aplicaciones de banca móvil para competir con alternativas fintech

La aplicación de banca móvil del banco alcanzó 62,500 usuarios mensuales activos en 2023, lo que representa un crecimiento anual del 22%.

Métrica de banca móvil	2023 datos
Usuarios móviles mensuales activos	62,500
Costo de desarrollo de aplicaciones móviles	$850,000
Volumen de transacción móvil	743,000 mensuales

Automatización de procesos bancarios internos para mejorar la eficiencia operativa

Old Second Bancorp implementó la automatización de procesos robóticos (RPA) en 37 procesos bancarios internos, reduciendo los costos operativos en un 16% en 2023.

Métrica de automatización de procesos	2023 datos
Procesos bancarios automatizados	37
Reducción de costos a través de la automatización	16%
Aumento de la productividad de los empleados	22%

Old Second Bancorp, Inc. (OSBC) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de reforma de Dodd-Frank Wall Street

A partir de 2024, Old Second Bancorp, Inc. mantiene el cumplimiento de las regulaciones de reforma de Dodd-Frank Wall Street, con gastos totales relacionados con el cumplimiento de $ 1.3 millones anuales.

Métrico de cumplimiento regulatorio	2024 datos
Gasto anual de cumplimiento	$1,300,000
Personal de cumplimiento del personal de cumplimiento	12 empleados a tiempo completo
Frecuencia de auditoría regulatoria	Trimestral

Requisitos continuos de litigios e informes regulatorios

Métricas de informes regulatorios:

• Informes regulatorios totales presentados en 2024: 48
• Tiempo de informe promedio por documento: 3.2 horas
• Tasa de cumplimiento de informes regulatorios: 99.7%

Categoría de litigio	Número de casos activos	Responsabilidad potencial total
Disputas de consumo	3	$450,000
Desacuerdos contractuales	2	$275,000

Estándares de gestión de riesgos y gobierno corporativo

Implementos de bancorp antiguo segundo Protocolos integrales de gestión de riesgos Con las siguientes métricas clave:

• Presupuesto de gestión de riesgos: $ 2.1 millones
• Equipo de gestión de riesgos empresariales: 9 profesionales
• Ciclos de evaluación de riesgos anuales: 4

Métrico de gobierno	Valor 2024
Miembros de la junta independientes	7 de 9
Reuniones del comité de auditoría de la junta	6 por año
Puntuación de cumplimiento del gobierno corporativo	94%

Monitoreo de regulaciones de protección financiera del consumidor

Equipo de cumplimiento de protección del consumidor dedicado monitorea el panorama regulatorio con:

• Tiempo de resolución de la queja del consumidor: 5.4 días
• Horas de capacitación regulatoria por empleado: 22 horas/año
• Presupuesto de protección del consumidor: $ 980,000

Métrica de protección del consumidor	2024 estadística
Quejas de consumo recibidas	42
Quejas resueltas favorablemente	38
Incidentes de violación regulatoria	0

Old Second Bancorp, Inc. (OSBC) - Análisis de mortero: factores ambientales

Prácticas bancarias sostenibles

A partir de 2024, Old Second Bancorp, Inc. ha asignado $ 12.5 millones a iniciativas bancarias sostenibles. La cartera de inversiones verdes del banco alcanzó los $ 87.3 millones en activos totales.

Iniciativas de préstamos verdes

Categoría de préstamos verdes	Monto total del préstamo	Número de proyectos
Energía renovable	$ 45.6 millones	37 proyectos
Eficiencia energética	$ 22.9 millones	24 proyectos
Agricultura sostenible	$ 18.4 millones	16 proyectos

Reducción de la huella de carbono

Objetivos de reducción de emisiones de carbono:

• 2024 Objetivo: Reducción del 22% desde la línea de base 2020
• Reducción actual lograda: 17.3%
• Reducción del consumo de energía: 15.6 MWh

Estrategias de inversión de ESG

Métrica de inversión de ESG	Valor 2024	Cambio año tras año
Activos totales de ESG	$ 213.7 millones	+14.2%
Fondos centrados en ESG	7 fondos	+2 nuevos fondos
Clientes de inversión de ESG	1.247 clientes	+18.5%

Old Second Bancorp, Inc. (OSBC) - PESTLE Analysis: Social factors

You're looking at how people's habits and the makeup of your customer base are changing, and honestly, it's driving a lot of the hard decisions in banking right now. For Old Second Bancorp, Inc., this means balancing the need to be digitally slick with the reality of serving a geographically shifting, yet locally focused, customer base.

Growing customer demand for seamless digital banking experiences over traditional branch visits

The shift is undeniable; customers want banking in their pocket, not in a line. In the US as of 2025, a significant 77 percent of consumers prefer managing their accounts through a mobile app or a computer. This isn't just a preference for younger folks; even with that, the sheer volume of mobile transactions is projected to top $796.68 billion this year alone. If you're still pushing paper, you're fighting a losing battle on convenience, and you're missing out on the 20% to 40% cost savings that digital tools offer banks. We need to make sure our digital offering is top-tier, or we risk losing customers who see a better experience elsewhere.

Here's the quick math: if 80% of millennials demand digital, and they are a huge segment of future wealth builders, our app experience is now a core product feature, not just a nice-to-have.

Demographic shift in the Chicago collar counties requires tailored wealth management and mortgage products

The population map around Chicago is redrawing itself, and Old Second Bancorp, Inc. needs to follow. Historically, people moved out to the collar counties (like DuPage, Kane, and Will) from Cook County. While Cook County still holds about 61 percent of the metro population, around 5.2 million people as of 2022 estimates, the overall metro area is seeing growth driven by migration. This means the suburban customer base is maturing, likely requiring more sophisticated wealth management services and larger, perhaps more complex, mortgage products than a purely urban or rural focus would suggest. What this estimate hides is the age of those moving; we need data on the median age in Kendall County versus the city to truly tailor offerings.

Increased focus on local community reinvestment and Environmental, Social, and Governance (ESG) mandates

Community focus remains crucial, especially for a bank like Old Second Bancorp, Inc. that operates regionally. Your recent overall outstanding rating on the Community Reinvestment Act (CRA) evaluation is a huge asset, showing regulators you are meeting local credit needs. Plus, the recent integration of Bancorp Financial and welcoming Evergreen Bank customers in October 2025 means you've expanded your footprint and, therefore, your CRA obligations. Customers and stakeholders are watching ESG more closely now; they want to see tangible investment in the communities you serve, not just compliance checkboxes. We need to quantify our 2025 community investment dollars to back up that outstanding rating.

Talent wars for skilled technology and compliance professionals drive up wage costs

This is where the rubber meets the road on your digital strategy-you can't build great tech or navigate complex regulations without the right people, and they are expensive. While the general salary increase for the Financial Activities Industry cooled to a projected 3.8 percent merit budget for 2025, specialized roles are a different story. Mid-career compliance analysts could see raises between 8 percent and 12 percent, and senior tech roles demanding AI or cloud skills are commanding premiums of +10-15 percent on top of the average tech salary of $112,521 in 2025. If onboarding takes 14+ days, churn risk rises because those top performers have multiple offers waiting. We are defintely paying a premium to keep our tech and compliance teams fully staffed.

Here is a snapshot of the social pressures impacting Old Second Bancorp, Inc. staffing and customer expectations in 2025:

Social Factor Metric	2025 Data Point/Projection	Relevance to OSBC
US Digital Banking Preference	77% of consumers prefer mobile/online	Drives need for digital investment and branch optimization.
Projected Mobile Transaction Volume (US)	Over $796.68 billion	Indicates high customer comfort with digital channels.
Projected 2025 Bank Merit Budget Increase	Average 3.8% for banks	Baseline for general wage inflation pressure.
Mid-Career Compliance Salary Growth	Projected 8% - 12% increase	Directly impacts operating expense for regulatory functions.
CRA Rating (as of 2024 filing)	Overall Outstanding	Strong social license to operate, but requires continued investment.

Finance: draft 13-week cash view by Friday.

Old Second Bancorp, Inc. (OSBC) - PESTLE Analysis: Technological factors

You're looking at a technology landscape that is moving faster than ever, and for a bank like Old Second Bancorp, Inc., keeping pace isn't optional-it's survival. The core challenge is balancing the cost of catching up with the risk of falling behind the fintechs and larger players. We need to think about technology not as a cost center, but as the engine for future revenue and security.

Need for significant investment in Artificial Intelligence (AI) for fraud detection and process automation

The threat landscape is evolving, and frankly, old rules-based systems just can't cut it anymore. Fraudsters are using AI to create hyper-realistic scams, meaning your defenses must be smarter. Industry-wide, 90% of financial institutions are now using AI to speed up fraud investigations and spot new tactics in real-time. For Old Second Bancorp, Inc., this means moving beyond simple transaction monitoring to predictive analytics. Think about your Q1 2025 noninterest expense, which was $44.5 million; a significant portion of that needs to shift toward AI tools that can analyze behavior across all channels to reduce false positives, which can erode customer trust quickly. AI is the only way to keep up with AI-driven crime.

Accelerated adoption of mobile and online loan origination platforms to compete with fintechs

Customers expect the same speed from you that they get from a digital-only lender, and that means loan origination has to be seamless. We see this trend everywhere: about 46% of U.S. consumers used digital lending or finance apps in 2025. Plus, 72% of U.S. adults report using mobile banking apps as of 2025. If your mortgage or commercial loan application process still requires too much paper or too many in-person visits, you are losing business. The action here is clear: push hard on mobile-first platforms that automate underwriting and decisioning. Speed wins customers.

Cybersecurity spending is non-negotiable, projected to increase by 15% in 2025

This is the one area where you absolutely cannot pinch pennies. With threats escalating, especially those augmented by generative AI, a strong defense is the price of entry. While global security spending is projected to rise by about 12.2% in 2025, for a bank like Old Second Bancorp, Inc., given the required focus on resilience, a targeted increase of 15% in your cybersecurity budget for 2025 is the realistic floor. This money needs to go toward advanced tools like Security Web Gateways and better third-party risk management, not just patching old holes. It's about building digital resilience, not just checking a compliance box.

Here's a quick look at where that increased security spend should be focused, based on industry priorities:

Technology Focus Area	Rationale for Investment	Expected Industry Growth Driver
Security Software	Integrated threat detection and response	Fastest growing segment, driven by cloud security posture management.
Security Services	Managed security services for expertise gaps	Second fastest growing, offering flexible capability.
AI/GenAI Defense Tools	Countering AI-augmented attacks and deepfakes	Key growth driver across the entire security spend.

Core system modernization is essential to reduce legacy infrastructure costs and improve data analytics

You are likely running on some older core systems, and honestly, they are killing your agility and your bottom line. Research suggests that banks often spend around 78% of their total IT budget just maintaining legacy core systems. That is money that isn't going toward better data analytics or new customer features. Modernizing to a cloud-native core can slash operational costs by 30-40% in the first year for some institutions, and it unlocks the real-time data needed for those AI fraud tools we just talked about. If onboarding takes 14+ days because of batch processing, churn risk rises.

The key benefits you need to target from modernization include:

• Reduce legacy infrastructure overhead costs.
• Improve data quality for better analytics.
• Increase operational efficiency by up to 45%.
• Enable faster product time-to-market.

Finance: draft 13-week cash view by Friday, specifically modeling the capital outlay required for a phased core modernization assessment.

Old Second Bancorp, Inc. (OSBC) - PESTLE Analysis: Legal factors

The legal landscape for Old Second Bancorp, Inc. is getting denser, especially with the recent merger closing in 3Q25. You need to watch regulatory scrutiny closely, as even a mid-sized bank like you, with pro forma assets around $7.1 billion following the Bancorp Financial, Inc. acquisition, is subject to intense focus on compliance hygiene. Honestly, the biggest risk here isn't a single massive lawsuit, but the cumulative cost of keeping up with all these rules.

Stricter enforcement of Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) compliance rules

Regulators continue to hammer on BSA/AML compliance, and this isn't slowing down in 2025. Your filings already note that deficiencies in your policies, procedures, or systems-or those of acquired entities like Evergreen Bank-can trigger serious liability, including fines or restrictions on your acquisition plans. Remember the Corporate Transparency Act (CTA) rules that FinCEN started rolling out? Those beneficial ownership disclosures mean your due diligence process has a whole new layer of required scrutiny. If onboarding takes 14+ days, churn risk rises, but if your KYC (Know Your Customer) process misses a CTA filing, regulatory risk spikes.

Here are the key compliance areas demanding your attention right now:

• Maintain robust KYC/CIP processes.
• Ensure third-party vendor oversight is tight.
• Stay current on CTA reporting requirements.
• Review SAR (Suspicious Activity Report) sharing protocols.

Data privacy regulations, like state-level consumer protection acts, increase compliance complexity

You're definitely dealing with a compliance headache from the states. In 2024, nine new states passed comprehensive data privacy laws, bringing the total to 21 states with such regulations taking effect or being enforced in 2025. This patchwork means your customer data handling must conform to multiple, sometimes conflicting, state-level consumer protection acts. You must adhere to the federal Gramm-Leach-Bliley Act (GLBA) requirements for providing annual privacy notices and maintaining a comprehensive information security program, but state laws like the California Privacy Rights Act (CPRA) can impose stricter rules, like those concerning sensitive data use. It's a constant balancing act.

Ongoing litigation risk related to loan servicing and foreclosure practices remains constant

Litigation risk is a persistent cost of doing business, and for Old Second Bancorp, Inc., it's concrete right now. You are facing a class action settlement hearing on August 1, 2025, regarding those 'APPSN Fees' (overdraft fees charged when an available balance was sufficient at authorization but not at posting). That hearing will determine if the settlement is approved. Furthermore, while the pace of new overdraft/NSF fee class actions has reportedly slowed in 2025, the legal theories-like those based on 'Available vs. Ledger Balance'-are still being tested in the broader industry. The acquisition also shifts your loan mix, increasing consumer lending exposure to about 21% of total loans pro forma, which brings its own set of servicing scrutiny risks.

Potential changes to the Dodd-Frank Act's $50 billion asset threshold for enhanced supervision

You are currently operating well below the historical $50 billion threshold for enhanced prudential standards (EPS) under Dodd-Frank, as your pro forma assets are around $7.1 billion. However, there is significant legislative noise in 2025 about resetting these static thresholds due to inflation. Some proposals floated in Congress suggest raising the supervisory threshold from $10 billion to $25 billion or even $50 billion. Here's the quick math: a $100 billion institution in the past is functionally equivalent to about $124 billion in 2025 dollars, making current markers outdated. If the threshold for enhanced supervision moves up, it could reduce regulatory burden for banks that grow into that range, but for now, you operate under existing rules, which are being tailored based on risk profile categories (I through IV).

Here is a snapshot of where Old Second Bancorp, Inc. stands relative to some key legal/regulatory benchmarks as of early 2025:

Legal/Regulatory Factor	Relevant Metric/Status for OSBC Context	Source of Pressure/Action
Pro Forma Total Assets (Post-Merger)	$7.1 billion	Dodd-Frank Threshold Debate
Overdraft Fee Litigation Status	Fairness Hearing scheduled for August 1, 2025	Ongoing Class Action Settlement
State Data Privacy Laws in Effect	21 states with comprehensive laws (many effective in 2025)	Increased compliance complexity/cost
Consumer Lending Exposure (Pro Forma)	Projected to be 21% of total loans	Increased focus on consumer servicing risk

Finance: draft 13-week cash view by Friday.

Old Second Bancorp, Inc. (OSBC) - PESTLE Analysis: Environmental factors

You're looking at the environmental landscape for Old Second Bancorp, Inc. (OSBC) right now, and honestly, the regulatory picture just got a little less clear, even as physical risks in the Midwest are becoming more tangible.

Increasing pressure from investors and regulators to disclose climate-related financial risks (CRFR)

Regulators have recently shifted their stance, which is a big deal for how you think about compliance. On October 16, 2025, the Federal Reserve, FDIC, and OCC jointly withdrew the interagency guidance on Climate-Related Financial Risk Management that previously targeted large institutions with over $100 billion in assets. They are now saying existing safety and soundness rules cover these emerging risks.

Still, don't mistake this for the pressure going away. Investors are still demanding transparency, often aligning with frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD). What this estimate hides is that while federal mandates for the biggest players might be easing, investor scrutiny on mid-sized banks like OSBC for material risks is likely to continue, especially given the industry trend toward disclosure.

Physical risks from extreme weather events in the Midwest could impact collateral values and loan defaults

The Midwest, where Old Second Bancorp, Inc. operates across its 55 locations following the Evergreen integration, faces real, measurable physical risks. The Federal Reserve Bank of Chicago is actively researching how the geographic risk of flooding and other weather-related disasters impacts access to mortgage and business loans.

If severe weather events-like the increased frequency and severity seen nationally in 2024-damage properties securing your loans, the collateral value drops, which directly increases your potential credit loss. Here's the quick math: a sharp decline in commercial real estate prices, as seen in the Fed's severely adverse stress test scenario for 2025, is a direct analog to what a localized, severe weather event could cause to your portfolio's underlying security.

Opportunity to finance green infrastructure and energy-efficient commercial property loans

While the regulatory focus has wavered, the market opportunity for green finance is clearly growing globally. Peer banks are actively pursuing this; for example, some are holding green bonds and financing LEED certified commercial real estate projects.

For OSBC, this means looking at your existing commercial real estate lending book. You should be mapping out how much of that portfolio could be upgraded or newly financed with energy-efficient standards. This isn't just about public perception; it's about financing assets that are inherently more resilient to future physical risks and potentially qualify for favorable terms through emerging green finance structures.

Internal focus on reducing energy consumption in the branch network to meet sustainability goals

With 55 branches now operating under the Old Second National Bank name across the Chicagoland area, operational efficiency is a direct lever for environmental impact reduction. While I don't have OSBC's specific 2025 energy consumption numbers, industry leaders are setting aggressive targets, such as sourcing 100% renewable electricity for operations by 2025.

Your internal actions matter, especially since regulators still expect you to manage all material risks, including operational ones. Reducing energy use in your physical footprint cuts operating costs and builds a demonstrable track record of environmental stewardship for stakeholders. It's a tangible action you can control right now.

Here is a quick snapshot of the environmental factors impacting your bank:

Factor Area	2025 Status/Data Point	Action Implication
Regulatory Clarity	Federal guidance for large banks withdrawn Oct 2025	Focus on existing safety/soundness rules and investor expectations.
Physical Risk Exposure	Chicago Fed researching Midwest disaster impact on credit	Review collateral concentration in high-risk flood/weather zones.
Green Finance Opportunity	Global green finance structures evolving	Identify and prioritize energy-efficient commercial property lending.
Operational Footprint	55 branches in Chicagoland	Benchmark branch energy use against industry peers' sustainability goals.

Finance: draft 13-week cash view by Friday.