Old Second Bancorp, Inc. (OSBC): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico do setor bancário regional, a Old Second Bancorp, Inc. (OSBC) navega em uma complexa rede de desafios e oportunidades que se estendem muito além das métricas financeiras tradicionais. Essa análise abrangente de pilões revela os intrincados fatores externos que moldam a trajetória estratégica do banco, desde o ambiente regulatório diferenciado de Illinois até as interrupções tecnológicas emergentes e as expectativas sociais em evolução. Ao dissecar dimensões políticas, econômicas, sociológicas, tecnológicas, legais e ambientais, fornecemos uma visão holística de como o OSBC está se posicionando em um ecossistema bancário cada vez mais competitivo e transformador.

Old Second Bancorp, Inc. (OSBC) - Análise de Pestle: Fatores Políticos

Regulamentos bancários do estado de Illinois Impacto

O Departamento de Regulamento Financeiro e Profissional de Illinois aplica requisitos específicos de conformidade bancária para a OSBC. A partir de 2024, o estado exige:

Aspecto regulatório	Requisitos específicos
Adequação de capital	Taxa de capital mínimo de nível 1 de 8,5%
Requisitos de liquidez	Taxa de cobertura de liquidez mínima de 100%
Proteção ao consumidor	A adesão estrita às leis de prevenção de discriminação de empréstimos estaduais

Influência da política monetária do Federal Reserve

Os parâmetros de política monetária do Federal Reserve afetam diretamente o OSBC:

• Taxa atual de fundos federais: 5,33% (em janeiro de 2024)
• Taxa de juros de referência do Federal Reserve intervalo: 5,25% - 5,50%
• Impacto da margem de empréstimos bancários: aproximadamente 2,75-3,25%

Conformidade da Lei de Reinvestimento Comunitário

As práticas de empréstimos da OSBC são governadas pelos regulamentos da Lei de Reinvestimento da Comunidade (CRA), com métricas específicas de desempenho:

Categoria de desempenho do CRA	Métrica de conformidade
Empréstimos para pequenas empresas	37,6% dos empréstimos para áreas de renda baixa a moderada
Investimentos de desenvolvimento comunitário	US $ 12,4 milhões em projetos qualificados de desenvolvimento comunitário
Acessibilidade empréstimos	89,2% de pontuação de acessibilidade de empréstimo

Paisagem federal de supervisão bancária

Estrutura regulatória bancária da administração federal atual:

• Requisitos de teste de estresse aprimorado para bancos com ativos acima de US $ 250 milhões
• O aumento de exigências de conformidade de segurança cibernética
• Protocolos de relatório mais rigorosos anti-dinheiro (AML)

Old Second Bancorp, Inc. (OSBC) - Análise de Pestle: Fatores Econômicos

Condições econômicas regionais em Illinois, afetando o desempenho da carteira de empréstimos

A partir do quarto trimestre de 2023, o PIB de Illinois era de US $ 980,4 bilhões. A taxa de desemprego do estado foi de 4,3% em dezembro de 2023. A carteira de empréstimos do Segundo Bancorp na região reflete esses indicadores econômicos.

Indicador econômico	Valor (Q4 2023)	Impacto no OSBC
Illinois PIB	US $ 980,4 bilhões	Correlação direta com o desempenho do empréstimo
Taxa de desemprego	4.3%	Indica capacidade potencial de pagamento de empréstimo
Renda familiar média	$72,205	Influencia a avaliação de risco de crédito

As flutuações da taxa de juros impactam na margem de juros líquidos e na lucratividade

A taxa de fundos federais em janeiro de 2024 foi de 5,33%. A margem de juros líquidos da OSBC em 2023 foi de 3,42%, influenciada diretamente por essas alterações de taxa.

Métrica financeira	2023 valor	2022 Valor
Margem de juros líquidos	3.42%	3.15%
Receita de juros líquidos	US $ 156,7 milhões	US $ 142,3 milhões

Ambiente de empréstimo para pequenas empresas

Em Illinois, as origens de empréstimos para pequenas empresas totalizaram US $ 8,6 bilhões em 2023. O segundo portfólio de empréstimos para pequenas empresas do Bancorp cresceu 7,2% durante o mesmo período.

Métrica de empréstimo para pequenas empresas	2023 valor
Illinois Small Business Loan Origiações	US $ 8,6 bilhões
Crescimento da carteira de empréstimos para pequenas empresas do OSBC	7.2%
Tamanho médio de empréstimo para pequenas empresas	$187,500

Tendências de recuperação econômica local na área metropolitana de Chicago

A recuperação econômica da área metropolitana de Chicago mostrou indicadores robustos em 2023:

• Crescimento do PIB metropolitano: 3,1%
• Taxa de ocupação imobiliária comercial: 82,5%
• Novas formações comerciais: 14.200

Indicador de recuperação econômica	2023 valor
Crescimento metropolitano do PIB	3.1%
Ocupação imobiliária comercial	82.5%
Novas formações de negócios	14,200

Old Second Bancorp, Inc. (OSBC) - Análise de Pestle: Fatores sociais

Mudanças demográficas no subúrbio do mercado de Chicago Impacto Base de clientes

A partir de 2024, Kane County e DuPage County, onde o OSBC operam principalmente, demonstram características demográficas específicas:

Condado	População	Idade mediana	Renda familiar média
Condado de Kane	549,204	36,7 anos	$92,433
Condado de DuPage	932,877	40,2 anos	$106,229

Aumentando as preferências bancárias digitais entre clientes mais jovens

Taxas de adoção bancária digital para a demografia alvo da OSBC:

Faixa etária	Uso bancário digital	Frequência bancária móvel
18-34 anos	87%	12,4 vezes por mês
35-54 anos	72%	8,6 vezes por mês

Crescente demanda por serviços financeiros personalizados

Preferências do cliente por serviços bancários personalizados:

• 67% desejam conselhos financeiros personalizados
• 53% esperam insights financeiros em tempo real
• 42% desejam sistemas de recomendação acionados por IA

Abordagem bancária focada na comunidade

Métricas de engajamento da comunidade local para OSBC:

Categoria de investimento comunitário	2024 Alocação
Suporte comercial local	US $ 3,2 milhões
Subsídios de desenvolvimento comunitário	US $ 1,5 milhão
Programas de educação financeira	$750,000

Old Second Bancorp, Inc. (OSBC) - Análise de Pestle: Fatores tecnológicos

Investimentos da plataforma bancária digital para melhorar a experiência do cliente

O Antigo Segundo Bancorp investiu US $ 2,7 milhões em tecnologia bancária digital em 2023. A plataforma digital do banco atende 87.342 usuários bancários on -line ativos a partir do quarto trimestre 2023.

Métrica da plataforma digital	2023 dados
Investimento bancário digital total	US $ 2,7 milhões
Usuários bancários online ativos	87,342
Volume de transações online	1,2 milhão mensalmente

Infraestrutura de segurança cibernética crítica para proteger dados financeiros do cliente

Em 2023, o Antigo Segundo Bancorp alocou US $ 1,5 milhão especificamente para a infraestrutura de segurança cibernética. O banco mantém Certificação ISO 27001 para gerenciamento de segurança da informação.

Métrica de segurança cibernética	2023 dados
Investimento de segurança cibernética	US $ 1,5 milhão
Auditorias anuais de segurança cibernética	2
Incidentes de segurança detectados	12

Desenvolvimento de aplicativos bancários móveis para competir com alternativas de fintech

O aplicativo bancário móvel do banco atingiu 62.500 usuários mensais ativos em 2023, representando um crescimento de 22% ano a ano.

Métrica bancária móvel	2023 dados
Usuários móveis mensais ativos	62,500
Custo de desenvolvimento de aplicativos móveis	$850,000
Volume de transação móvel	743.000 mensais

Automação de processos bancários internos para melhorar a eficiência operacional

O Antigo Segundo Bancorp implementou a automação de processos robóticos (RPA) em 37 processos bancários internos, reduzindo os custos operacionais em 16% em 2023.

Métrica de automação de processos	2023 dados
Processos bancários automatizados	37
Redução de custos através da automação	16%
Aumentar a produtividade dos funcionários	22%

Old Second Bancorp, Inc. (OSBC) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos de reforma de Dodd-Frank Wall Street

A partir de 2024, a Old Second Bancorp, Inc. mantém a conformidade com os regulamentos de reforma de Dodd-Frank Wall Street, com despesas totais relacionadas à conformidade de US $ 1,3 milhão anualmente.

Métrica de conformidade regulatória	2024 dados
Gastos anuais de conformidade	$1,300,000
Funcionários da equipe de conformidade	12 funcionários em tempo integral
Frequência de auditoria regulatória	Trimestral

Requisitos de litígio e relatório regulatórios em andamento

Métricas de relatórios regulatórios:

• Relatórios regulatórios totais arquivados em 2024: 48
• Tempo médio de relatório por documento: 3,2 horas
• Taxa de conformidade de relatórios regulatórios: 99,7%

Categoria de litígio	Número de casos ativos	Responsabilidade potencial total
Disputas de consumidores	3	$450,000
Desacordos contratuais	2	$275,000

Riscos de gerenciamento de riscos e padrões de governança corporativa

Antigo segundo Bancorp implementos Protocolos abrangentes de gerenciamento de riscos Com as seguintes métricas principais:

• Orçamento de gerenciamento de riscos: US $ 2,1 milhões
• Equipe de gerenciamento de riscos corporativos: 9 profissionais
• Ciclos anuais de avaliação de risco: 4

Métrica de Governança	2024 Valor
Membros independentes do conselho	7 de 9
Reuniões do Comitê de Auditoria do Conselho	6 por ano
Pontuação de conformidade de governança corporativa	94%

Monitoramento de regulamentos de proteção financeira do consumidor

A equipe de conformidade de proteção ao consumidor dedicada monitora o cenário regulatório com:

• Time de resolução de reclamação do consumidor: 5,4 dias
• Horário de treinamento regulatório por funcionário: 22 horas/ano
• Orçamento de proteção ao consumidor: US $ 980.000

Métrica de proteção ao consumidor	2024 Estatística
Reclamações de consumidores recebidas	42
As reclamações foram resolvidas favoravelmente	38
Incidentes de violação regulatória	0

Old Second Bancorp, Inc. (OSBC) - Análise de Pestle: Fatores Ambientais

Práticas bancárias sustentáveis

Em 2024, a Old Second Bancorp, Inc. alocou US $ 12,5 milhões para iniciativas bancárias sustentáveis. O portfólio de investimentos verdes do banco atingiu US $ 87,3 milhões em ativos totais.

Iniciativas de empréstimos verdes

Categoria de empréstimo verde	Valor total do empréstimo	Número de projetos
Energia renovável	US $ 45,6 milhões	37 projetos
Eficiência energética	US $ 22,9 milhões	24 projetos
Agricultura sustentável	US $ 18,4 milhões	16 projetos

Redução da pegada de carbono

Metas de redução de emissões de carbono:

• 2024 Alvo: redução de 22% em relação à linha de base de 2020
• Redução atual alcançada: 17,3%
• Redução do consumo de energia: 15,6 mwh

ESG Estratégias de investimento

Esg Métrica de Investimento	2024 Valor	Mudança de ano a ano
Total de ativos ESG	US $ 213,7 milhões	+14.2%
ESG Fundos focados	7 fundos	+2 novos fundos
Esg clientes de investimento	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.