Old Second Bancorp (OSBC): Buy, Sell, or Hold Post Q3 Earnings?

Old Second Bancorp trades at $20.26 and has moved in lockstep with the market. Its shares have returned 7.5% over the last six months while the S&P 500 has gained 10.5%.

Is OSBC a buy right now? Find out in our full research report, it’s free.

Why Does Old Second Bancorp Spark Debate?

Dating back to 1871 as one of the Chicago area's longest-standing financial institutions, Old Second Bancorp (NASDAQ:OSBC) is an Illinois-based community bank offering deposit services, commercial and consumer loans, wealth management, and mortgage products through its 53 branch locations.

Two Things to Like:

1. Net Interest Income Skyrockets, Fueling Growth Opportunities

While bank generate revenue from multiple sources, investors view net interest income as a cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of one-time fees.

Old Second Bancorp’s net interest income has grown at a 24.4% annualized rate over the last five years, much better than the broader banking industry and faster than its total revenue. Its growth was driven by both an increase in its outstanding loans and net interest margin, which represents how much a bank earns in relation to its outstanding loan book.

2. Elite Net Interest Margin Powers Best-In-Class Loan Book

Net interest margin (NIM) represents the unit economics of a bank by measuring the profitability of its interest-bearing assets relative to its interest-bearing liabilities. It's a fundamental metric that investors use to assess lending premiums and returns.

Over the past two years, we can see that Old Second Bancorp’s net interest margin averaged an elite 4.8%, indicating the company has a high-yielding loan book and a low cost of funds.

One Reason to be Careful:

Lackluster Revenue Growth

Long-term growth is the most important, but within financials, a stretched historical view may miss recent interest rate changes and market returns. Old Second Bancorp’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 4.7% over the last two years was well below its five-year trend.

Final Judgment

Old Second Bancorp has huge potential even though it has some open questions, but at $20.26 per share (or 1.2× forward P/B), is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.