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Old Second Bancorp Inc. (OSBC) Stock Fundamental Analysis & AI Rating 2026

OSBC Nasdaq State Commercial Banks DE CIK: 0000357173
Recently Updated • Analysis: Apr 13, 2026 • SEC Data: 2025-12-31
HOLD
70% Conf
Pending
Analysis scheduled

📊 OSBC Key Takeaways

Revenue: $355.2M
Net Margin: 22.6%
Free Cash Flow: $117.8M
Current Ratio: N/A
Debt/Equity: 0.07x
EPS: $1.62
AI Rating: HOLD with 70% confidence
Old Second Bancorp Inc. (OSBC) receives a HOLD rating with 70% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $355.2M, net profit margin of 22.6%, and return on equity (ROE) of 9.0%, Old Second Bancorp Inc. demonstrates mixed fundamentals in the Finance sector. Below is our complete OSBC stock analysis for 2026.

Is Old Second Bancorp Inc. (OSBC) a Good Investment?

Claude

Old Second Bancorp demonstrates strong revenue growth of 21.2% YoY with exceptional free cash flow generation ($117.8M, 33.2% margin) and conservative leverage (0.07x D/E ratio). However, margin compression is concerning—net income declined 5.8% YoY and EPS fell 13.4% despite strong revenue growth, indicating rising costs or credit quality pressures that require clarification before upgrading conviction.

Why Buy Old Second Bancorp Inc. Stock? OSBC Key Strengths

Claude
  • + Strong revenue growth of 21.2% YoY indicating solid market positioning and benefit from rate environment
  • + Exceptional free cash flow conversion with $117.8M FCF and 33.2% FCF margin demonstrating high-quality earnings
  • + Conservative capital structure with Debt/Equity of only 0.07x and strong interest coverage of 10.1x
  • + Solid profitability with 30.3% operating margin and 22.6% net margin

OSBC Stock Risks: Old Second Bancorp Inc. Investment Risks

Claude
  • ! Material margin compression: net income down 5.8% YoY despite 21.2% revenue growth indicates rising costs or potential credit deterioration
  • ! EPS declined 13.4% YoY representing significant shareholder value erosion and earnings sustainability concerns
  • ! Moderate ROE at 9.0% suggests capital efficiency below typical expectations for well-capitalized banks
  • ! Community bank sector vulnerability to economic cycles, interest rate changes, and loan loss provisions

Key Metrics to Watch

Claude
  • * Net interest margin (NIM) trends and compression sources
  • * Non-performing loan ratio and loan loss provision adequacy
  • * Operating expense growth rate relative to revenue growth
  • * ROE pathway to 10-12% range
  • * Deposit stability and cost of deposits

Old Second Bancorp Inc. (OSBC) Financial Metrics & Key Ratios

Revenue
$355.2M
Net Income
$80.3M
EPS (Diluted)
$1.62
Free Cash Flow
$117.8M
Total Assets
$6.9B
Cash Position
$124.0M

💡 AI Analyst Insight

The 33.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

OSBC Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 30.3%
Net Margin 22.6%
ROE 9.0%
ROA 1.2%
FCF Margin 33.2%

OSBC vs Finance Sector: How Old Second Bancorp Inc. Compares

How Old Second Bancorp Inc. compares to Finance sector averages

Net Margin
OSBC 22.6%
vs
Sector Avg 25.0%
OSBC Sector
ROE
OSBC 9.0%
vs
Sector Avg 12.0%
OSBC Sector
Current Ratio
OSBC 0.0x
vs
Sector Avg 1.2x
OSBC Sector
Debt/Equity
OSBC 0.1x
vs
Sector Avg 2.0x
OSBC Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Old Second Bancorp Inc. Stock Overvalued? OSBC Valuation Analysis 2026

Based on fundamental analysis, Old Second Bancorp Inc. has mixed fundamental signals relative to the Finance sector in 2026.

Return on Equity
9.0%
Sector avg: 12%
Net Profit Margin
22.6%
Sector avg: 25%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.07x
Sector avg: 2x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Old Second Bancorp Inc. Balance Sheet: OSBC Debt, Cash & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.07x
Debt/Assets
87.0%
Interest Coverage
10.11x
Long-term Debt
$59.6M

OSBC Revenue & Earnings Growth: 5-Year Financial Trend

OSBC 5-year financial data:
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Old Second Bancorp Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.02 reflects profitable operations.

OSBC Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
33.2%
Free cash flow / Revenue

Old Second Bancorp Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$122.3M
Cash generated from operations
Stock Buybacks
$7.4M
Shares repurchased (TTM)
Capital Expenditures
$4.5M
Investment in assets
Dividends Paid
$12.2M
Returned to shareholders

OSBC SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Old Second Bancorp Inc. (CIK: 0000357173)

📋 Recent SEC Filings

Date Form Document Action
Apr 6, 2026 DEF 14A osbc-20260519xdef14a.htm View →
Apr 2, 2026 4 xslF345X06/form4-04022026_010405.xml View →
Apr 2, 2026 4 xslF345X06/form4-04022026_010433.xml View →
Apr 2, 2026 4 xslF345X06/form4-04022026_010455.xml View →
Apr 2, 2026 4 xslF345X06/form4-04022026_010449.xml View →

Frequently Asked Questions about OSBC

What is the AI rating for OSBC?

Old Second Bancorp Inc. (OSBC) has an AI rating of HOLD with 70% confidence, based on fundamental analysis of SEC EDGAR filings.

What are OSBC's key strengths?

Claude: Strong revenue growth of 21.2% YoY indicating solid market positioning and benefit from rate environment. Exceptional free cash flow conversion with $117.8M FCF and 33.2% FCF margin demonstrating high-quality earnings.

What are the risks of investing in OSBC?

Claude: Material margin compression: net income down 5.8% YoY despite 21.2% revenue growth indicates rising costs or potential credit deterioration. EPS declined 13.4% YoY representing significant shareholder value erosion and earnings sustainability concerns.

What is OSBC's revenue and growth?

Old Second Bancorp Inc. reported revenue of $355.2M.

Does OSBC pay dividends?

Old Second Bancorp Inc. pays dividends, with $12.2M distributed to shareholders in the trailing twelve months.

Where can I find OSBC SEC filings?

Official SEC filings for Old Second Bancorp Inc. (CIK: 0000357173) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is OSBC's EPS?

Old Second Bancorp Inc. has a diluted EPS of $1.62.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is OSBC a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Old Second Bancorp Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is OSBC stock overvalued or undervalued?

Valuation metrics for OSBC: ROE of 9.0% (sector avg: 12%), net margin of 22.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.

Should I buy OSBC stock in 2026?

Our dual AI analysis gives Old Second Bancorp Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is OSBC's free cash flow?

Old Second Bancorp Inc.'s operating cash flow is $122.3M, with capital expenditures of $4.5M. FCF margin is 33.2%.

How does OSBC compare to other Finance stocks?

Vs Finance sector averages: Net margin 22.6% (avg: 25%), ROE 9.0% (avg: 12%), current ratio N/A (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 13, 2026 | Data as of: 2025-12-31 | Powered by Claude AI