Old Second Bancorp Shows Steady Growth in Retained Earnings

TL;DR

**OSBC is a steady ship, retaining earnings and managing capital well – a safe bet in a choppy market.**

AI Summary

OLD SECOND BANCORP INC's 10-Q filing for the quarter ended June 30, 2025, indicates a stable financial position with key changes in equity components. The company reported a Common Stock value of $3.5 million as of June 30, 2025, consistent with previous quarters. Additional Paid-In Capital stood at $256.6 million, showing a slight increase from $256.5 million on March 31, 2025, and $256.4 million on December 31, 2024. Retained Earnings reached $309.8 million by June 30, 2025, up from $306.9 million on March 31, 2025, and $301.1 million on December 31, 2024, reflecting profit retention. Accumulated Other Comprehensive Income (Loss) improved to -$19.6 million from -$20.1 million in the prior quarter, driven by a reduction in Accumulated Net Unrealized Investment Gain (Loss) to -$20.0 million from -$20.5 million. The company's 2019 Equity Incentive Plan had 1,000,000 shares authorized as of May 31, 2019, with 1,000,000 shares approved by shareholders on May 31, 2021, and 1,000,000 shares available for grant as of May 31, 2025, indicating ongoing employee incentive programs. Treasury Stock Common remained at $100.9 million, consistent across the reported periods.

Why It Matters

This filing reveals Old Second Bancorp's consistent growth in retained earnings, which is a positive signal for investors as it indicates the company's ability to generate and hold onto profits. The stability in common stock and treasury stock, alongside a slight increase in additional paid-in capital, suggests a disciplined capital management strategy. For employees, the continued availability of shares under the 2019 Equity Incentive Plan offers ongoing motivation and alignment with shareholder interests. In a competitive banking landscape, this steady performance could enhance customer confidence and market positioning, especially compared to regional banks facing more volatile capital structures.

Risk Assessment

Risk Level: low — The risk level is low due to consistent financial figures across multiple quarters, particularly the stable Common Stock at $3.5 million and Treasury Stock Common at $100.9 million. The steady increase in Retained Earnings from $301.1 million on December 31, 2024, to $309.8 million on June 30, 2025, further demonstrates financial health and low immediate risk.

Analyst Insight

Investors should consider holding OSBC shares, given the consistent growth in retained earnings and stable capital structure. The company's prudent financial management suggests resilience in current market conditions, making it a potentially reliable long-term investment.

Key Numbers

• $3.5M — Common Stock (Consistent across reported periods, indicating stable base capital.)
• $256.6M — Additional Paid-In Capital (Slight increase from $256.4M on Dec 31, 2024, showing modest capital infusion.)
• $309.8M — Retained Earnings (Increased from $301.1M on Dec 31, 2024, reflecting strong profit retention.)
• -$19.6M — Accumulated Other Comprehensive Income (Loss) (Improved from -$20.1M in prior quarter, indicating reduced unrealized losses.)
• $100.9M — Treasury Stock Common (Remained stable, suggesting no significant share buybacks or issuances.)
• 1,000,000 — Shares available for grant (Under the 2019 Equity Incentive Plan as of May 31, 2025, supporting employee incentives.)

Key Players & Entities

• OLD SECOND BANCORP INC (company) — filer of the 10-Q
• 02 Finance (company) — organization name associated with the filer
• SEC (regulator) — regulator for 10-Q filings
• $3.5 million (dollar_amount) — Common Stock value as of June 30, 2025
• $256.6 million (dollar_amount) — Additional Paid-In Capital as of June 30, 2025
• $309.8 million (dollar_amount) — Retained Earnings as of June 30, 2025
• -$19.6 million (dollar_amount) — Accumulated Other Comprehensive Income (Loss) as of June 30, 2025
• -$20.0 million (dollar_amount) — Accumulated Net Unrealized Investment Gain (Loss) as of June 30, 2025
• $100.9 million (dollar_amount) — Treasury Stock Common as of June 30, 2025
• 1,000,000 shares (dollar_amount) — shares authorized and available for grant under the 2019 Equity Incentive Plan

FAQ

Industry Context

OLD SECOND BANCORP INC operates within the commercial banking sector, a highly competitive and regulated industry. The sector is influenced by interest rate environments, economic growth, and evolving customer preferences for digital banking services. Banks are continuously adapting to technological advancements and regulatory changes to maintain profitability and market share.

Regulatory Implications

As a commercial bank, OLD SECOND BANCORP INC is subject to stringent regulations from federal and state authorities, including capital requirements, lending standards, and consumer protection laws. Compliance with these regulations is critical to avoid penalties and maintain operational stability. Changes in monetary policy and banking regulations can significantly impact the bank's profitability and risk profile.

What Investors Should Do

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Key Dates

• 2025-06-30: Quarterly Report (10-Q) filed for period ending June 30, 2025 — Provides updated financial performance and position, including equity changes and incentive plan status.
• 2025-03-31: Previous quarter end — Baseline for comparison of equity components like Additional Paid-In Capital and Retained Earnings.
• 2024-12-31: Previous fiscal year end — Baseline for comparison of equity components and overall financial health.
• 2021-05-31: Shareholder approval for 1,000,000 shares under the 2019 Equity Incentive Plan — Confirms the authorization and shareholder backing for employee stock incentives.
• 2019-05-31: Authorization of 1,000,000 shares under the 2019 Equity Incentive Plan — Establishes the initial framework for the company's long-term employee incentive program.

Glossary

Additional Paid-In Capital

The amount of money a company receives from selling stock above its par value. (Shows capital contributed by investors beyond the nominal stock value, indicating investor confidence and capital raising activities.)

Retained Earnings

The cumulative net income of a company that has not been distributed to shareholders as dividends. (Reflects the company's profitability and its ability to reinvest earnings back into the business.)

Accumulated Other Comprehensive Income (Loss)

Includes unrealized gains and losses on investments, foreign currency translation adjustments, and other items not reflected in net income. (Provides a broader view of the company's financial performance by including changes in value that affect equity but not the income statement directly.)

Treasury Stock Common

Shares of the company's own stock that it has repurchased from the open market. (Indicates capital returned to shareholders or shares held for future use, impacting the number of outstanding shares and equity.)

Equity Incentive Plan

A plan that grants employees the right to purchase company stock or receive stock-based compensation. (Demonstrates the company's strategy for attracting, retaining, and motivating employees through equity ownership.)

Year-Over-Year Comparison

Compared to the prior year's filing (likely Q2 2024), OLD SECOND BANCORP INC shows stability in its core equity components. While specific revenue and net income figures for the year-over-year comparison are not detailed in the provided summary, the consistent Common Stock value and slight increase in Additional Paid-In Capital suggest a steady capital base. The growth in Retained Earnings indicates improved profitability over time, and the reduction in Accumulated Other Comprehensive Income (Loss) points to a healthier investment portfolio compared to the previous period.

From the Filing

0000357173-25-000076.txt : 20250807 0000357173-25-000076.hdr.sgml : 20250807 20250807155545 ACCESSION NUMBER: 0000357173-25-000076 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 92 CONFORMED PERIOD OF REPORT: 20250630 FILED AS OF DATE: 20250807 DATE AS OF CHANGE: 20250807 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OLD SECOND BANCORP INC CENTRAL INDEX KEY: 0000357173 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] ORGANIZATION NAME: 02 Finance EIN: 363143493 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-10537 FILM NUMBER: 251193693 BUSINESS ADDRESS: STREET 1: 37 S RIVER ST CITY: AURORA STATE: IL ZIP: 60507 BUSINESS PHONE: 6308920202 MAIL ADDRESS: STREET 1: 37 SOUTH RIVER STREET CITY: AURORA STATE: IL ZIP: 60507 10-Q 1 tmb-20250630x10q.htm 10-Q OLD SECOND BANCORP INC_June 30, 2025 0000357173 OLD SECOND BANCORP INC --12-31 2025 Q2 false P2M P0Y 0000357173 us-gaap:TreasuryStockCommonMember 2025-06-30 0000357173 us-gaap:RetainedEarningsMember 2025-06-30 0000357173 us-gaap:CommonStockMember 2025-06-30 0000357173 us-gaap:AdditionalPaidInCapitalMember 2025-06-30 0000357173 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-06-30 0000357173 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2025-06-30 0000357173 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2025-06-30 0000357173 us-gaap:TreasuryStockCommonMember 2025-03-31 0000357173 us-gaap:RetainedEarningsMember 2025-03-31 0000357173 us-gaap:CommonStockMember 2025-03-31 0000357173 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0000357173 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-31 0000357173 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2025-03-31 0000357173 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2025-03-31 0000357173 us-gaap:TreasuryStockCommonMember 2024-12-31 0000357173 us-gaap:RetainedEarningsMember 2024-12-31 0000357173 us-gaap:CommonStockMember 2024-12-31 0000357173 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0000357173 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-12-31 0000357173 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2024-12-31 0000357173 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2024-12-31 0000357173 us-gaap:TreasuryStockCommonMember 2024-06-30 0000357173 us-gaap:RetainedEarningsMember 2024-06-30 0000357173 us-gaap:CommonStockMember 2024-06-30 0000357173 us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0000357173 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-06-30 0000357173 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2024-06-30 0000357173 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2024-06-30 0000357173 us-gaap:TreasuryStockCommonMember 2024-03-31 0000357173 us-gaap:RetainedEarningsMember 2024-03-31 0000357173 us-gaap:CommonStockMember 2024-03-31 0000357173 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0000357173 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 0000357173 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2024-03-31 0000357173 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2024-03-31 0000357173 us-gaap:TreasuryStockCommonMember 2023-12-31 0000357173 us-gaap:RetainedEarningsMember 2023-12-31 0000357173 us-gaap:CommonStockMember 2023-12-31 0000357173 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0000357173 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 0000357173 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2023-12-31 0000357173 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2023-12-31 0000357173 osbc:EquityIncentivePlan2019Member 2025-06-30 0000357173 osbc:EquityIncentivePlan2019Member 2025-05-31 0000357173 osbc:EquityIncentivePlan2019Member 2021-05-31 0000357173 osbc:EquityIncentivePlan2019Member 2019-05-31 00003