Short answer
OLD SECOND BANCORP INC (OSBC) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $355M (+19.2% year over year) and net income of $80M.
- Top risk flagged: Regulatory risk: OCC may impose restrictions on commercial real estate loans above 300% of capital, with loans at 220.3% of Tier 1 capital plus ACL as of Dec 31, 2025
FY2025 key financial metrics · XBRL
- Revenue
- $355M
- +19.2% YoY
- Net income
- $80M
- −5.8% YoY
- EPS (diluted)
- $1.62
- −13.4% YoY
- ROE
- 9.0%
- −3.8 pp YoY
- Operating cash flow
- $122M
- −7.0% YoY
Source: XBRL data from the OLD SECOND BANCORP INC (OSBC) FY2025 10-K on SEC EDGAR. USD.
OLD SECOND BANCORP INC FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Regional bank focused on loan origination, securities investments, and managing cash flows through interest margins
- New emphasis on post-acquisition integration: Bancorp Financial acquisition generated $10.5M net cash inflow in 2025, following $237.4M inflow from FRME branch purchase in 2024
- Strategic liquidity management shift: Increased use of FHLBC advances with $179.5M short-term borrowings in 2025 vs reduction of $385M in 2024, reflecting dynamic liquidity needs
- Notable metric: Deposit outflows increased substantially to $404.3M in 2025 from $69.8M in 2024, impacting financing cash flows
- Unusual fact: Large off-balance sheet credit commitments totaling $803.2M across varying maturities as of December 31, 2025
Management Discussion & Analysis
- Revenue $339.3M including adjustments, up $45.3M or 15.8% from $294.0M in 2024 driven by net interest and noninterest income growth
- Operating efficiency ratio 57.91% GAAP vs 54.36% in 2024, adjusted efficiency ratio stable at 53.15% vs 53.22% indicating margin pressure from higher expenses
- Best segment: Wealth management up 15.9% to $13.2M; Worst: residential mortgage banking revenue down 21.2% to $2.6M due to mark-to-market losses growing to $1.9M
- Loans grew $1.27B or 31.9% to $5.25B mainly from Bancorp Financial acquisition; Deposits up 17.3% to $5.60B; Stockholders’ equity increased to $896.8M from $671.0M
- Increased noninterest expense +27.7% to $204.0M driven by acquisition costs; Income tax expense $27.4M with effective rate 25.5%; Management notes credit quality challenges with nonperforming loans rising 74.4% to $52.8M
Risk Factors
- Regulatory risk: OCC may impose restrictions on commercial real estate loans above 300% of capital, with loans at 220.3% of Tier 1 capital plus ACL as of Dec 31, 2025
- Macroeconomic risk: Illinois state fiscal challenges may trigger tax hikes, reduce business vitality, or cause firms to leave, impacting bank's Chicago suburbs concentration
- Operational risk: Nonperforming loans rose 74.4% to $52.8 million as of Dec 31, 2025, increasing management burden and credit loss risk
- Competitive risk: Wealth management fees vulnerable to financial market declines and client asset withdrawals, exposing Old Second to market volatility
- Financial risk: Loan portfolio concentrated 56.5% in real estate ($2.97 billion), exposing bank to collateral value declines and regulatory scrutiny
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