NasdaqGS:OSBC

Stock Analysis Report

Executive Summary

Old Second Bancorp, Inc. operates as the bank holding company for Old Second National Bank that provides a range of banking services.

Snowflake

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Old Second Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OSBC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.08%

OSBC

0.3%

US Banks

-0.2%

US Market


1 Year Return

-14.3%

OSBC

10.7%

US Banks

16.1%

US Market

Return vs Industry: OSBC underperformed the US Banks industry which returned 10.7% over the past year.

Return vs Market: OSBC underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

OSBCIndustryMarket
7 Day-0.08%0.3%-0.2%
30 Day-1.0%3.7%3.7%
90 Day7.5%18.8%8.5%
1 Year-14.0%-14.3%14.0%10.7%18.7%16.1%
3 Year34.6%33.4%37.2%27.6%46.9%37.4%
5 Year167.7%164.2%71.0%52.1%61.8%44.0%

Price Volatility Vs. Market

How volatile is Old Second Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Old Second Bancorp undervalued compared to its fair value and its price relative to the market?

31.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OSBC ($12.47) is trading below our estimate of fair value ($18.2)

Significantly Below Fair Value: OSBC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OSBC is good value based on its PE Ratio (9.7x) compared to the Banks industry average (12.6x).

PE vs Market: OSBC is good value based on its PE Ratio (9.7x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: OSBC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OSBC is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Old Second Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSBC's earnings are forecast to decline over the next 3 years (-4.7% per year).

Earnings vs Market: OSBC's earnings are forecast to decline over the next 3 years (-4.7% per year).

High Growth Earnings: OSBC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OSBC's revenue (-3.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: OSBC's revenue (-3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OSBC's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Old Second Bancorp performed over the past 5 years?

26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OSBC has high quality earnings.

Growing Profit Margin: OSBC's current net profit margins (29.9%) are higher than last year (19.6%).


Past Earnings Growth Analysis

Earnings Trend: OSBC's earnings have grown significantly by 26.5% per year over the past 5 years.

Accelerating Growth: OSBC's earnings growth over the past year (68.4%) exceeds its 5-year average (26.5% per year).

Earnings vs Industry: OSBC earnings growth over the past year (68.4%) exceeded the Banks industry 27.3%.


Return on Equity

High ROE: OSBC's Return on Equity (14.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Old Second Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: OSBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: OSBC's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: OSBC's level of assets compared to its equity is low.

Allowance for Bad Loans: OSBC has a sufficient allowance for bad loans.

Low Risk Liabilities: OSBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: OSBC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OSBC's loans are broadly funded by customer deposits.

Level of Bad Loans: OSBC has an appropriate level of bad loans (0.71%)


Next Steps

Dividend

What is Old Second Bancorp's current dividend yield, its reliability and sustainability?

0.32%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: OSBC's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: OSBC's dividend (0.32%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: OSBC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: OSBC is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: OSBC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OSBC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Old Second Bancorp's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Jim Eccher (54yo)

4.8yrs

Tenure

US$1,728,919

Compensation

Mr. James L. Eccher, also known as Jim, has been the Chief Executive Officer and President of Old Second Bancorp Inc. since January 1, 2015 and has been its Chief Operating Officer since 2007. Mr. Eccher h ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.73M) is about average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: OSBC's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

9.4yrs

Average Tenure

63yo

Average Age

Experienced Board: OSBC's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$5,31721 Aug 19
Gary Collins
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares426
Max PriceUS$12.48
SellUS$45,09130 Jul 19
William Skoglund
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares3,400
Max PriceUS$13.29
SellUS$6,34821 Jun 19
Keith Gottschalk
EntityIndividual
Role
Other Key Executive
Executive Vice President
Shares500
Max PriceUS$12.70
SellUS$26,14001 May 19
Keith Gottschalk
EntityIndividual
Role
Other Key Executive
Executive Vice President
Shares2,000
Max PriceUS$13.07
SellUS$21,22421 Mar 19
William Skoglund
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,600
Max PriceUS$13.37
SellUS$42,30013 Feb 19
Keith Gottschalk
EntityIndividual
Role
Other Key Executive
Executive Vice President
Shares3,000
Max PriceUS$14.10
BuyUS$12,89018 Dec 18
James Tapscott
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$12.89
SellUS$90,93713 Dec 18
John Ladowicz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,750
Max PriceUS$13.50
BuyUS$6,75113 Dec 18
Gary Collins
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares500
Max PriceUS$13.50
SellUS$40,00011 Dec 18
John Ladowicz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$13.40
BuyUS$13,48006 Dec 18
James Eccher
EntityIndividual
Role
Chief Executive Officer
CEO, President
Shares1,000
Max PriceUS$13.48

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Michael Kozak (67yo)

    Executive VP & Chief Credit Officer

    • Tenure: 4.6yrs
  • Jim Eccher (54yo)

    CEO, President

    • Tenure: 4.8yrs
    • Compensation: US$1.73m
  • Keith Gottschalk (57yo)

    Executive Vice President

    • Tenure: 7.8yrs
    • Compensation: US$407.65k
  • Jacqueline Runnberg

    Senior VP & Wealth Advisor

    • Tenure: 0.7yrs
  • Brad Adams (45yo)

    Executive VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$1.01m
  • Rich Gartelmann

    Head of Wealth Management of Old Second National Bank and Senior VP of Old Second National Bank

    • Tenure: 0yrs
  • Melissa Jordan (53yo)

    VP & Controller

    • Tenure: 3.8yrs
  • Bob DiCosola

    Executive Vice President of Human Resources

    • Tenure: 0yrs
  • Shirley Cantrell

    Shareholder Relations Manager

    • Tenure: 0yrs
  • Andrew Crouch

    Senior VP & Senior Trust Administrative Officer

    • Tenure: 0.8yrs

Board Members

  • Bill Skoglund (68yo)

    Chairman of the Board

    • Tenure: 15.8yrs
    • Compensation: US$147.00k
  • Gary Collins (60yo)

    Vice Chairman of the Board

    • Tenure: 3.1yrs
    • Compensation: US$999.23k
  • William Kane (68yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$125.38k
  • Edward Bonifas (59yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$120.88k
  • Barry Finn (59yo)

    Lead Director

    • Tenure: 4.8yrs
    • Compensation: US$133.38k
  • Jim Eccher (54yo)

    CEO, President

    • Tenure: 4.8yrs
    • Compensation: US$1.73m
  • John Ladowicz (66yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$131.38k
  • Patti Rocks (60yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$119.38k
  • Duane Suits (69yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$131.38k
  • James Tapscott (67yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$125.38k

Company Information

Old Second Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Old Second Bancorp, Inc.
  • Ticker: OSBC
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$371.696m
  • Shares outstanding: 29.90m
  • Website: https://www.oldsecond.com

Number of Employees


Location

  • Old Second Bancorp, Inc.
  • 37 South River Street
  • Aurora
  • Illinois
  • 60507
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OSBCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1990

Biography

Old Second Bancorp, Inc. operates as the bank holding company for Old Second National Bank that provides a range of banking services. The company accepts demand, NOW, money market, savings, time deposit, i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 23:41
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.