OSBC Stock Forecast & Price Target

Old Second Bancorp is positioned for a positive growth trajectory, with expectations of stronger loan growth commencing in the second half of 2025, estimated at 4%-6% linked to enhanced production in the newly acquired powersport lending niche and increased commercial market share within the Chicago metropolitan area. The bank is also poised for potential upside from elevated growth in treasury management and card revenue as it expands its market presence while leveraging a broader array of products and services across its client base. The acquisition of EBG has further fortified Old Second Bancorp’s capabilities, particularly with its addition of national powersport lending divisions, indicating a strategic move to capitalize on emerging lending opportunities.

Old Second Bancorp has demonstrated a decline in non-performing assets (NPAs), down 27% quarter-over-quarter to $37.7 million, yet overall operating expenses remain a concern, with expectations of a slight decrease in Q2 2025 due to previous elevated costs associated with other real estate owned (OREO). The company faces multiple risks that may hinder its financial performance, including potential asset quality deterioration, insufficient growth in loans, deposits, and core fee income, and ongoing elevated operating expenses. These factors contribute to a challenging outlook for the bank, despite the recent improvement in asset quality metrics.