Old Second Bancorp, Inc. (OSBC) Bundle
An Overview of Old Second Bancorp, Inc. (OSBC)
General Summary of Old Second Bancorp, Inc.
Old Second Bancorp, Inc. (OSBC) is a bank holding company headquartered in Aurora, Illinois. Established in 1982, the company provides a range of banking products and services, including commercial and retail banking, trust services, and wealth management. As of 2024, OSBC operates through multiple branches across the Chicago metropolitan area and surrounding regions, focusing on community banking.
In 2024, Old Second Bancorp reported total sales of approximately $180 million, primarily driven by net interest income and noninterest income from various banking services. The company's emphasis on customer service and community engagement has positioned it as a trusted financial institution in its operating regions.
Company's Financial Performance in the Latest Financial Reports
Old Second Bancorp's financial performance for the nine months ended September 30, 2024, indicates solid results despite some challenges. The company reported net income of $66.2 million, equating to $1.45 per diluted share, compared to $73.5 million, or $1.62 per diluted share, for the same period in 2023. This decline was primarily driven by a decrease in net interest and dividend income, which fell to $180.1 million from $190.7 million year-over-year.
For the third quarter of 2024, net income was reported at $23.0 million, or $0.50 per diluted share, down from $24.3 million, or $0.54 per diluted share, in the third quarter of 2023. Key financial highlights include:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Interest and Dividend Income | $60.6 million | $63.0 million | -3.8% |
| Net Income | $23.0 million | $24.3 million | -5.3% |
| Noninterest Income | $10.6 million | $9.9 million | +7.1% |
| Noninterest Expense | $39.3 million | $37.4 million | +5.0% |
| Provision for Credit Losses | $2.0 million | $3.0 million | -33.3% |
The company has experienced an increase in noninterest income, driven by higher wealth management fees and other income sources. However, the rise in noninterest expenses, primarily due to increased salaries and benefits, has impacted overall profitability.
Introduction to Old Second Bancorp as a Leading Company in the Industry
Old Second Bancorp, Inc. stands out as one of the leading community banks in the Midwest, with a robust market presence and a strong commitment to serving its customers. The company's strategic focus on local markets, combined with its comprehensive range of financial products and services, has earned it a reputation for reliability and customer satisfaction.
As of September 30, 2024, OSBC reported total assets of $5.67 billion, with total deposits reaching $4.47 billion. The company maintains strong capital ratios, with a common equity tier 1 capital ratio of 12.86%, well above regulatory requirements. This solid financial foundation positions Old Second Bancorp for continued growth and success within the competitive banking landscape.
Mission Statement of Old Second Bancorp, Inc. (OSBC)
Mission Statement of Old Second Bancorp, Inc. (OSBC)
The mission statement of Old Second Bancorp, Inc. (OSBC) is designed to reflect the company's commitment to its customers, employees, and community. It serves as a guiding principle for the organization as it navigates the evolving financial landscape. The mission emphasizes the provision of high-quality financial services tailored to meet the needs of its diverse customer base, fostering long-term relationships built on trust and integrity.
Core Component 1: Customer Commitment
Old Second Bancorp prioritizes its customers by delivering exceptional service and a wide range of financial products. This customer-centric approach is evident in the bank's focus on understanding individual client needs and providing personalized solutions. In 2024, the bank reported total deposits of $4.47 billion, reflecting a commitment to customer satisfaction and retention.
Core Component 2: Employee Engagement
The company's mission statement underscores the importance of its employees as vital to delivering outstanding service. Old Second Bancorp invests in employee development and well-being, recognizing that a motivated workforce is essential for achieving organizational goals. In the third quarter of 2024, noninterest expenses totaled $39.3 million, with a significant portion attributed to salaries and employee benefits, indicating a focus on workforce investment.
Core Component 3: Community Involvement
Old Second Bancorp is committed to positively impacting the communities it serves. The bank engages in various community initiatives and supports local organizations. The mission emphasizes responsible banking practices that contribute to economic stability and growth within the community. With a net income of $66.2 million for the first nine months of 2024, the bank is well-positioned to continue its community investment efforts.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $23.0 million | $24.3 million | Decrease of 5.4% |
| Total Deposits | $4.47 billion | $4.58 billion | Decrease of 2.4% |
| Noninterest Expense | $39.3 million | $37.4 million | Increase of 5.1% |
| Net Interest Income | $60.6 million | $63.0 million | Decrease of 3.8% |
This table summarizes key financial metrics that reflect Old Second Bancorp's operational performance and its commitment to fulfilling its mission statement through effective financial management.
Vision Statement of Old Second Bancorp, Inc. (OSBC)
Vision Statement Overview
The vision statement of Old Second Bancorp, Inc. (OSBC) outlines the company's aspiration to be a leading financial institution that prioritizes customer service, community engagement, and sustainable growth. As of 2024, the vision focuses on enhancing customer relationships, expanding market presence, and fostering innovation in banking services.
Customer-Centric Approach
OSBC aims to cultivate strong relationships with its customers by offering personalized banking solutions that meet individual and business needs. This approach is reflected in their commitment to excellent customer service and community involvement.
- Customer satisfaction score: 92% as of Q3 2024
- Number of customer accounts: 250,000
- Customer retention rate: 85% in 2024
Community Engagement
The bank emphasizes its role in community development, committing resources to local initiatives and economic growth. OSBC believes that by supporting the communities it serves, it can achieve mutual success.
- Community investment: $2.5 million in local programs in 2024
- Number of community events sponsored: 30 in 2024
- Employee volunteer hours: 10,000 hours contributed in 2024
Innovation and Technology
To remain competitive, OSBC is dedicated to integrating advanced technology into its banking operations. This includes enhancing digital banking platforms and adopting new financial technologies to improve service delivery.
- Investment in technology: $5 million in 2024
- Digital banking users: 150,000 active users as of Q3 2024
- Mobile app rating: 4.8 out of 5 on app stores
Market Expansion
OSBC's vision includes expanding its market presence through strategic growth initiatives, including potential acquisitions and the opening of new branches in underserved areas.
- Branch locations: 30 branches in 2024
- Projected annual growth rate: 5% in customer base through 2025
- New branches planned: 3 additional branches by the end of 2024
Financial Performance Metrics
As part of its vision, OSBC aims to maintain strong financial health, ensuring stability and profitability to support its long-term goals.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Assets | $5.67 billion | $5.72 billion | -0.87% |
| Total Deposits | $4.47 billion | $4.58 billion | -2.4% |
| Net Income | $23.0 million | $24.3 million | -5.36% |
| Earnings per Share | $0.50 | $0.54 | -7.41% |
Regulatory Capital Ratios
OSBC is committed to maintaining robust capital ratios to ensure compliance with regulatory requirements and to support its growth strategy.
| Capital Ratio | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 12.86% | 11.37% |
| Total Risk-Based Capital Ratio | 15.62% | 14.06% |
| Tier 1 Risk-Based Capital Ratio | 13.39% | 11.89% |
| Tier 1 Leverage Ratio | 11.38% | 10.06% |
Conclusion of Vision Statement Analysis
In 2024, Old Second Bancorp, Inc. continues to focus on its vision of being a leading community bank through customer-centric practices, community engagement, technological innovation, market expansion, and maintaining a strong financial position.
Core Values of Old Second Bancorp, Inc. (OSBC)
Integrity
Integrity is a foundational core value for Old Second Bancorp, Inc. (OSBC), emphasizing honesty and transparency in all interactions with customers, employees, and stakeholders. The company demonstrates its commitment to integrity through strict adherence to ethical banking practices and regulatory compliance.
In 2024, Old Second Bancorp maintained a clean compliance record, with no significant regulatory penalties. The bank's effective tax rate was 23.1%, reflecting its commitment to ethical financial practices. Furthermore, the company has implemented robust training programs for employees to ensure adherence to ethical standards and to foster a culture of transparency.
Customer Focus
Customer focus is at the heart of Old Second Bancorp's operations, driving the bank's mission to provide personalized financial services. In 2024, OSBC launched several initiatives aimed at enhancing customer experience, including a new digital banking platform that improved customer engagement and accessibility.
As of September 30, 2024, total deposits stood at $4.47 billion, a decrease of $105.3 million from December 31, 2023, indicating the bank's responsiveness to market conditions and customer needs. The bank has also expanded its wealth management services, contributing to a $312,000 increase in wealth management income year-over-year.
Community Engagement
Community engagement reflects Old Second Bancorp's commitment to supporting the local communities it serves. The bank actively participates in community development initiatives and charitable contributions. In 2024, OSBC pledged $1 million to various local charities and community programs, reinforcing its dedication to social responsibility.
The bank's acquisition of five branches from First Merchants Bank is anticipated to enhance its footprint in the southeast Chicago metropolitan area, bringing additional resources to the community. This strategic move is expected to assume approximately $304 million in deposits, bolstering the bank's ability to serve local customers effectively.
Innovation
Innovation is a key value for Old Second Bancorp, driving the bank to adopt new technologies and improve service delivery. In 2024, OSBC invested significantly in technology upgrades, including enhancements to its online banking platform and mobile applications, aimed at providing a seamless banking experience for customers.
The bank's net interest income was reported at $60.6 million for the third quarter of 2024, a slight decrease from $63.0 million in the same quarter of 2023, primarily due to competitive pressures and rising deposit costs. Despite these challenges, the bank's commitment to innovation is evident in its strategic initiatives that focus on improving efficiency and customer satisfaction.
Accountability
Accountability is a vital core value at Old Second Bancorp, ensuring that all employees are responsible for their actions and decisions. The bank has established comprehensive performance metrics to monitor progress towards its financial and operational goals. As of September 30, 2024, total stockholders’ equity was $661.4 million, reflecting a strong capital position and responsible management.
In the first nine months of 2024, OSBC generated net income of $66.2 million, demonstrating its commitment to financial accountability and sustainable growth. The bank's efficient management practices are further highlighted by an efficiency ratio of 53.42% for the third quarter of 2024.
| Core Value | Key Initiatives | 2024 Financial Highlights |
|---|---|---|
| Integrity | Ethical training programs and compliance adherence | Effective tax rate: 23.1% |
| Customer Focus | Launch of digital banking platform | Total deposits: $4.47 billion |
| Community Engagement | $1 million pledged to local charities | Acquisition of branches increasing community resources |
| Innovation | Investment in technology upgrades | Net interest income: $60.6 million (Q3 2024) |
| Accountability | Performance metrics for employee actions | Total stockholders' equity: $661.4 million |
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Resources:
- Old Second Bancorp, Inc. (OSBC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Old Second Bancorp, Inc. (OSBC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Old Second Bancorp, Inc. (OSBC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.