Old Second Bancorp Inc (NASDAQ: OSBC)

Old Second Bancorp, Inc. is a bank holding company that provides full service community banking and trust operations through its subsidiary Old Second National Bank. The bank is headquartered in Aurora Illinois and operates 55 banking centers located in Cook DeKalb DuPage Kane Kendall LaSalle and Will counties in Illinois. In addition to the bank the company owns several subsidiaries including Old Second Affordable Housing Fund LLC which offers down payment assistance Station I LLC Station II LLC and Station III LLC which hold foreclosed property and River Street Advisors LLC which provides investment advisory services. The institution emphasizes relationship banking and seeks to meet the financial needs of individuals businesses and local governments within its footprint.

The company generates revenue primarily from interest income on its loan portfolio which includes commercial real estate residential mortgage consumer and specialty loans such as powersport and equipment financing. Interest income represents the largest portion of revenue driven by the yield on loans and the size of the earning asset base. Additional revenue comes from service charges on deposit accounts wealth management fees and other noninterest income such as trust administration and investment advisory fees. Fee based revenue includes wealth management asset under administration charges deposit service charges and loan related fees such as origination and late fees. The diversified mix of lending and fee based services supports stable earnings across changing interest rate environments.

The company operates through the following segments.

• Community banking: This segment encompasses all traditional banking activities including deposit taking commercial lending consumer lending wealth management trust services and related financial solutions delivered through the bank's branch network digital channels and subsidiary entities. It provides a full suite of deposit products such as checking savings money market and time deposits and offers lending options ranging from residential mortgages and home equity lines to commercial real estate construction equipment and specialty loans like powersport and manufacturer financing.

Old Second Bancorp competes in a highly competitive financial services market that includes large national banks regional banks credit unions and financial technology firms primarily in the Chicago metropolitan area. The company differentiates itself through its deep community relationships its long standing presence in the region its strong community reinvestment act rating and its ability to offer a broad range of products while maintaining personalized service. Following recent acquisitions the bank has increased its scale and diversified its loan base which enhances its competitive position. These factors help the bank attract and retain retail commercial and municipal customers despite intense competition.

The bank serves a diverse customer base that includes individual consumers small and mid sized businesses large corporations governmental entities and nonprofit organizations. Its retail customers reside in communities such as Aurora Batavia Bolingbrook Joliet Naperville and numerous other cities across the western and southern portions of the Chicago metro area. Commercial borrowers span industries such as manufacturing health care real estate and technology while municipal clients rely on the bank for public financing and treasury services. In addition the bank provides wealth management and trust services to individual investors employee benefit plans and charitable foundations further broadening its client relationships.