Old Second National Bank

What Old Second National Bank does

Old Second National Bank is a nationally chartered community bank headquartered in Aurora, Illinois, founded in 1871 and operating as the primary banking subsidiary of publicly traded Old Second Bancorp, Inc. (NASDAQ: OSBC). The bank serves the Chicago metropolitan area through 55 branches and 70 ATMs, offering personal banking, residential mortgages, auto and consumer loans, commercial and middle-market lending, treasury management, equipment finance, sponsor finance, and wealth management services delivered through affiliated advisors including River Street Advisors LLC and Cetera. Specialty finance operations include FreedomRoad Financial (powersports lending) and Performance Finance, and the bank completed the integration of acquired Evergreen Bank Group in 2025.

The bank's technology stack centers on the O2 digital ecosystem — O2 Digital Banking for consumers, Corporate O2 for business clients, plus specialized portals for O2 Mortgage, O2 Sponsor Finance, O2 Remote Deposit, and O2 CPP (card processing) — all built on core infrastructure provided by Jack Henry & Associates. Zelle peer-to-peer payments are integrated through a partnership with Early Warning Services, and a digital origination channel for powersports credit operates via Finio, Inc. on Cycle Trader and ATV Trader marketplaces.

Revenue is generated primarily through net interest income on loans (commercial real estate, C&I, powersports, residential mortgages) funded by a low-cost deposit base, producing a 5.14% net interest margin in Q1 2026. Supplementary revenue streams include deposit account and card fees, wealth management fees, treasury management charges, and capital return to shareholders via a $43.9 million share repurchase program and a $0.07 quarterly dividend (1.3% yield, 10 consecutive years of payments, 40% LTM dividend growth). The bank ended Q1 2026 with approximately $6.8 billion in total assets, $25.6 million in quarterly net income, and a 14.2% return on tangible common equity.

Name

Old Second National Bank

Legal name

Old Second Bancorp, Inc.

Website

https://oldsecond.com

Company type

Public

Founded year

1871

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Old Second National Bank is an Aurora, Illinois-based community bank operating 55 branches in the Chicago metro area, providing personal, commercial, middle-market, sponsor finance, and wealth management services to consumers, SMBs, and middle-market companies under NASDAQ-listed Old Second Bancorp (OSBC).

Ownership category

akta.pro rank

Product category

Retail Banking

NAICS

Commercial Banking (52211), Depository Credit Intermediation (5221)

SIC

National Commercial Banks (6021)

akta.pro primary industry

Mass-Market Consumer Deposit Banking (Checking/Savings) (FSABAAAA)

akta.pro secondary industries

Digital Banking & Neobank Platforms (BPAMAFAD), Affluent / Mass-Affluent Private Banking (FSABADAC)

Keywords

• Retail banking services
• Commercial lending
• Community banking
• Wealth management services
• Treasury management solutions

Headquarters

HQ city

Aurora

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Supply Chain, Others

Revenue model

1. Net Interest Income: Primary revenue driver from spread between interest earned on loans (including commercial real estate, C&I, powersports, residential mortgages) and interest paid on deposits. Net interest margin of 5.14% in Q1 2026 demonstrates strong margin performance driven by low-cost deposits and high-yielding loans.
2. Noninterest Income: Fees from deposit accounts, card services (debit/credit cards), wealth management services, treasury management fees, and other banking service charges.
3. Dividend Income: The holding company Old Second Bancorp pays quarterly dividends of $0.07 per share, representing approximately 1.3% yield. Dividend payments maintained for 10 consecutive years with 40% dividend growth over the last twelve months.
4. Share Repurchases: $43.9 million share repurchase program approved by the board and Federal Reserve, enabling capital return to shareholders while reducing equity.

Pricing tiers

Go-to-market motion2 records

Distribution channels9 records

Marketing channels5 records

Core offering

Old Second National Bank is a community bank providing consumer and business banking products across the Chicago metropolitan area. Its core offerings include personal checking, savings, CDs, and card services; home loans, auto loans, and personal loans; commercial banking (C&I, commercial real estate, equipment finance, treasury management, and sponsor finance); and wealth management (investment advisory, retirement, and trust services). Distribution is via 55 branches, ~70 ATMs, the O2 Digital Banking and Corporate O2 online/mobile platforms, and specialty divisions FreedomRoad Financial (powersports) and Performance Finance.

Product overview

Old Second National Bank is a community bank offering a unified multi-channel banking platform centered on its O2 Digital Banking ecosystem. The core consumer digital banking platform (O2 Digital Banking) is complemented by a corporate variant (Corporate O2 Digital Banking) for business customers, and a suite of specialized lending and treasury portals including O2 Mortgage, O2 Sponsor Finance, O2 Remote Deposit, and O2 CPP. The bank's consumer-facing products span personal banking (checking, savings, cards, retirement), home and auto lending, and a full wealth management platform offered through internal teams and affiliates (Cetera, River Street Advisors LLC). Specialty lending divisions FreedomRoad Financial (powersports) and Performance Finance operate as branded sub-units. The bank also provides Zelle as a built-in peer-to-peer payment integration. Recent acquisitions include Evergreen Bank Group (now fully integrated), and the bank operates 54 branches with approximately $6.8 billion in assets as of March 2026.

Differentiator

Problem solved

Functional benefit

Brands

• FreedomRoad Financial: Division of Old Second National Bank focused on powersports lending, including partnership with Cycle Trader and Finio, Inc. for instant online credit approvals.
• Performance Finance

Products and services

• O2 Digital Banking Consumer online and mobile banking platform offering account inquiries, balances, transaction history, transfers, bill payment, account alerts, mobile deposit, digital wallet support (Apple Pay, Google Pay), and Zelle peer-to-peer payments for retail customers in the Chicago area.
• Corporate O2 Digital Banking Business online banking platform for commercial and small business customers, providing account access, bill payment, wire transfers, ACH origination, multiple-user sign-on, remote deposit capture, and Check/ACH Positive Pay services.
• Personal Banking Comprehensive consumer banking offering for individuals, including personal checking accounts, savings accounts, certificates of deposit (CDs), debit/credit/prepaid card services, retirement planning (IRAs, 401(k) rollovers), Prime Time Club for seniors, foreign currency exchange, and digital wallet enrollment. Served through 54 branches, ~70 ATMs, and O2 Digital Banking.
• Home Loans (O2 Mortgage) Residential mortgage origination and management for home purchase and refinance, offered through the O2 Mortgage online application and loan management portal for Chicagoland consumers.
• Auto & Personal Loans Auto loans, personal loans, and other consumer credit products for retail borrowers, providing vehicle financing, unsecured personal lines, and related consumer lending solutions.
• Commercial Banking Comprehensive commercial banking services for small, mid-market, and corporate customers, including business checking, commercial lending (C&I, commercial real estate, lines of credit), treasury management, equipment finance, community banking, and sponsor finance. Includes access to Corporate O2 Digital Banking for ACH/wires, Positive Pay, and remote deposit.
• Treasury Management Treasury and cash management services for commercial customers, encompassing wire transfers, ACH origination, check and ACH Positive Pay, lockbox, controlled disbursement, and related payment and liquidity management solutions accessed through Corporate O2 Digital Banking.
• Equipment Finance Equipment financing and leasing solutions provided to commercial customers for the acquisition of business equipment, supporting capital expenditure and operating needs.
• O2 Sponsor Finance Sponsor-backed finance lending platform providing larger middle-market borrowers with leveraged loan facilities, accessed through a dedicated O2 Sponsor Finance Borrower Portal for facility information and loan management.
• Wealth Management Wealth management offering spanning investment management, wealth transfer and estate planning, retirement planning, and business planning solutions for HNW clients, delivered through internal advisors, River Street Advisors LLC, and Cetera-affiliated advisors across the Chicago area.
• FreedomRoad Financial (Powersports Lending) Powersports and recreational vehicle financing division of Old Second National Bank, offering consumer and dealer financing for motorcycles, ATVs, and other powersports vehicles, including instant credit approvals on the Cycle Trader and ATV Trader online marketplaces through Finio, Inc.
• Performance Finance Specialty finance division of Old Second National Bank providing specialized finance services for niche consumer credit markets, distinct from the core commercial and retail banking lines.

Quantifiable outcome

• Net interest margin of 5.14% in Q1 2026, up 5 basis points sequentially
• +4 more outcomes

Named customers5 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature5 records

Partnerships

Three partnerships are on record, tiered core.

• Early Warning Services, LLC (Zelle)coreTechnology or Integration · 1 January 2026Old Second National Bank integrates Zelle peer-to-peer payment service, allowing customers to send and receive money using email addresses or mobile phone numbers. Zelle provides instant payment capabilities with typical delivery within minutes. The bank offers this service through O2 Digital Banking and mobile app platforms with consumer transfer limits of $600 per transaction, $900 daily, $1,800 weekly, and $7,200 monthly.
• Cycle Trader / Finio, Inc.coreTechnology or Integration · 23 July 2025Partnership enables instant online credit approvals for powersports vehicle purchases through Cycle Trader and ATV Trader online marketplaces. Powered by Old Second National Bank through Finio, Inc., the digital lending process allows customers to obtain credit offers within minutes via the marketplace platforms, streamlining financing for powersports vehicle purchases.
• Jack Henry & Associates, Inc.coreTechnology or IntegrationJack Henry & Associates provides the core online and mobile banking infrastructure for O2 Digital Banking and Corporate O2 platforms. The bank utilizes Jack Henry's technology to power digital banking services including account management, transfers, bill payment, and treasury management capabilities.

Scale indicators17 records

Recent moves7 records

Expansion highlights5 records

Market position

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/oldsecondbank
• Facebookfacebook.com/OldSecondBank
• LinkedInlinkedin.com/company/old-second-national-bank

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries4 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A3 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Old Second National Bank