OLD SECOND BANCORP INC (OSBC) FY2025 10-K Annual Report
OLD SECOND BANCORP INC (OSBC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
OLD SECOND BANCORP INC FY2025 10-K Analysis
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
OLD SECOND BANCORP INC FY2025 Key Financial MetricsXBRL
Revenue
$355M
▲ +19.2% YoY
Net Income
$80M
▼ -5.8% YoY
Net Margin
22.6%
▼ -601bp YoY
ROE
9.0%
▼ -375bp YoY
Total Assets
$6.9B
▲ +22.2% YoY
EPS (Diluted)
$1.62
▼ -13.4% YoY
Operating Cash Flow
$122M
▼ -7.0% YoY
Source: XBRL data from OLD SECOND BANCORP INC FY2025 10-K filing on SEC EDGAR. All figures in USD.
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