Old Second Bancorp (OSBC) 10-K 11 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Mar. 08, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	OLD SECOND BANCORP INC
Entity Central Index Key	357,173
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 187.2
Entity Common Stock, Shares Outstanding		29,483,429
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 26,975	$ 30,101
Interest bearing deposits with financial institutions	13,363	14,096
Cash and cash equivalents	40,338	44,197
Securities available-for-sale, at fair value	456,066	385,486
Securities held-to-maturity, at amortized cost	247,746	259,670
Federal Home Loan Bank and Federal Reserve Bank stock	8,518	9,058
Loans held-for-sale	2,849	5,072
Loans	1,133,715	1,159,332
Less: allowance for loan losses	16,223	21,637
Net loans	1,117,492	1,137,695
Premises and equipment, net	39,612	42,335
Other real estate owned	19,141	31,982
Mortgage servicing rights, net	5,847	5,462
Bank-owned life insurance (BOLI)	58,028	56,807
Deferred tax assets, net	64,552	70,141
Other assets	17,674	13,882
Total assets	2,077,863	2,061,787
Deposits:
Noninterest bearing demand	442,639	400,447
Interest bearing:
Savings, NOW, and money market	908,598	865,103
Time	407,849	419,505
Total deposits	1,759,086	1,685,055
Securities sold under repurchase agreements	34,070	21,036
Other short-term borrowings	15,000	45,000
Junior subordinated debentures	58,378	58,378
Subordinated debt	45,000	45,000
Notes payable and other borrowings	500	500
Other liabilities	9,900	12,655
Total liabilities	1,921,934	1,867,624
Stockholders' Equity
Preferred stock		47,331
Common stock	34,427	34,365
Additional paid-in capital	115,918	115,332
Retained earnings	114,209	100,697
Accumulated other comprehensive loss	(12,659)	(7,713)
Treasury stock	(95,966)	(95,849)
Total stockholders' equity	155,929	194,163
Total liabilities and stockholders' equity	$ 2,077,863	$ 2,061,787

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Consolidated Balance Sheets
Preferred stock, Par value (in dollars per share)	$ 1	$ 1
Preferred stock, Liquidation value (in dollars per share)		$ 1,000
Preferred stock, Shares authorized	300,000	300,000
Preferred stock, Shares issued		47,331
Preferred stock, Shares outstanding		47,331
Common stock, Par value (in dollars per share)	$ 1	$ 1
Common Stock, Shares authorized	60,000,000	60,000,000
Common stock, Shares issued	34,427,234	34,364,734
Common stock, Shares outstanding	29,483,429	29,442,508
Treasury stock, Shares	4,943,805	4,922,226

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest and Dividend Income
Loans, including fees	$ 53,035	$ 52,926	$ 56,193
Loans held-for-sale	189	133	156
Securities:
Taxable	14,037	14,131	11,692
Tax exempt	542	472	587
Dividends from Federal Reserve Bank and Federal Home Loan Bank stock	306	309	304
Interest bearing deposits with financial institutions	55	73	108
Total interest and dividend income	68,164	68,044	69,040
Interest Expense
Savings, NOW, and money market deposits	734	738	859
Time deposits	3,201	4,500	6,774
Other short-term borrowings	33	19	28
Junior subordinated debentures	4,287	4,919	5,298
Subordinated debt	814	792	811
Notes payable and other borrowings	7	16	16
Total interest expense	9,076	10,984	13,786
Net interest and dividend income	59,088	57,060	55,254
Loan loss reserve release	(4,400)	(3,300)	(8,550)
Net interest and dividend income after provision for loan losses	63,488	60,360	63,804
Noninterest Income
Trust income	5,953	6,198	6,339
Service charges on deposits	6,820	7,079	7,256
Secondary mortgage fees	907	621	821
Mortgage servicing loss, net of changes in fair value	487	209	1,913
Net gain on sales of mortgage loans	5,775	3,594	5,627
Securities (loss) gain, net	(178)	1,719	(1,912)
Increase in cash surrender value of bank-owned life insurance	1,221	1,397	1,603
Death benefit realized on bank-owned life insurance			381
Debit card interchange income	4,028	3,806	3,458
(Loss) gain on disposal and transfer of fixed assets	(1,119)	(121)	9
Other income	5,400	4,714	5,688
Total noninterest income	29,294	29,216	31,183
Noninterest Expense
Salaries and employee benefits	35,061	36,167	36,688
Occupancy expense, net	4,749	4,963	5,032
Furniture and equipment expense	4,430	3,972	4,264
FDIC insurance	1,334	2,170	4,027
General bank insurance	1,273	1,561	2,318
Amortization of core deposit		1,177	2,099
Advertising expense	1,340	1,278	1,225
Debit card interchange expense	1,514	1,631	1,433
Legal fees	1,175	1,333	2,066
Other real estate expense, net	5,191	6,917	10,747
Other expense	12,354	12,510	13,245
Total noninterest expense	68,421	73,679	83,144
Income before income taxes	24,361	15,897	11,843
Provision for income taxes	8,976	5,761	(70,242)
Net income	15,385	10,136	82,085
Preferred stock dividends and accretion of discount	1,873	5,062	5,258
Dividends waived upon preferred stock redemption		(5,433)
Gain on preferred stock redemption		(1,348)
Net income available to common stockholders	$ 13,512	$ 11,855	$ 76,827
Basic earnings per share (in dollars per share)	$ 0.46	$ 0.46	$ 5.45
Diluted earnings per share (in dollars per share)	$ 0.46	$ 0.46	$ 5.45

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements of Comprehensive Income
Net income	$ 15,385	$ 10,136	$ 82,085
Unrealized holding (losses) gains on available-for-sale securities arising during the period	(8,624)	(394)	(11,965)
Related tax benefit (expense)	3,382	165	4,924
Holding (losses) gains after tax on available-for-sale securities	(5,242)	(229)	(7,041)
Less: Reclassification adjustment for the net (losses) gains realized during the period
Net realized (losses) gains	(178)	1,719	(1,912)
Income tax benefit (expense) on net realized gains	71	(704)	784
Net realized (losses) gains after tax	(107)	1,015	(1,128)
Other comprehensive (loss) income on available-for-sale securities	(5,135)	(1,244)	(5,913)
Accretion of net unrealized holding gains on held-to-maturity transferred from available-for-sale securities	964	968	343
Related tax expense	(396)	(399)	(141)
Other comprehensive income on held-to-maturity securities	568	569	202
Changes in fair value of derivatives used for cashflow hedges	(631)
Related tax benefit	252
Other comprehensive loss on cashflow hedges	(379)
Total other comprehensive income (loss) income	(4,946)	(675)	(5,711)
Total comprehensive income	$ 10,439	$ 9,461	$ 76,374

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities
Net income	$ 15,385	$ 10,136	$ 82,085
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization of leasehold improvement	2,386	2,485	2,794
Change in fair value of mortgage servicing rights	1,141	1,214	(260)
Loan loss reserve release	4,400	3,300	8,550
Gain on recapture of restricted stock			(612)
Provision for deferred tax expense	8,756	5,563	(70,376)
Originations of loans held-for-sale	(190,041)	(122,996)	(181,497)
Proceeds from sales of loans held-for-sale	196,431	124,458	191,019
Net gain on sales of mortgage loans	(5,775)	(3,594)	(5,627)
Change in current income taxes receivable (payable)	100	86	(132)
Increase in cash surrender value of bank-owned life insurance	(1,221)	(1,397)	(1,603)
Death claim on bank owned life insurance			396
Change in accrued interest receivable and other assets	(3,949)	(581)	8,764
Change in accrued interest payable and other liabilities	(2,668)	(20,001)	8,877
Net premium amortization/discount (accretion) on securities	79	(1,824)	(528)
Securities losses (gain), net	178	(1,719)	1,912
Amortization of core deposit		1,177	2,099
Stock based compensation	613	295	167
Net gain on sale of other real estate owned	(1,073)	(989)	(1,956)
Provision for other real estate owned losses	4,076	4,559	8,293
Net gain on disposal of fixed assets	(20)		(9)
Loss on transfer of premises to other real estate owned	1,139	121
Net cash provided by (used in) operating activities	21,137	(6,307)	35,256
Cash flows from investing activities
Proceeds from maturities and calls including pay down of securities available-for-sale	46,230	16,520	40,028
Proceeds from sales of securities available-for-sale	70,176	296,013	533,302
Purchases of securities available-for-sale	(196,082)	(325,020)	(609,033)
Proceeds from maturities and calls including pay down of securities held-to-maturity	13,281	9,703	2,444
Purchases of securities held-to-maturity		(11,212)	(21,382)
Proceeds from sales of Federal Home Loan Bank stock	540	1,234	910
Net change in loans	16,073	(74,338)	21,505
Improvements in other real estate owned		(794)	(73)
Proceeds from sales of other real estate owned	18,836	22,857	43,668
Proceeds from disposition of premises and equiment	30	1	10
Net purchases of premises and equipment	(1,280)	(1,097)	(1,798)
Net cash (used in) provided by investing activities	(32,196)	(66,133)	9,581
Cash flows from financing activities
Net change in deposits	74,031	2,927	(35,091)
Net change in securities sold under repurchase agreements	13,034	(1,524)	4,685
Net change in other short-term borrowings	(30,000)	40,000	(95,000)
Redemption of preferred stock	(47,331)	(24,321)
Proceeds from issuance of common stock		64,331
Dividends paid on preferred stock	(2,417)	(12,390)
Purchase of treasury stock	(117)	(46)	(278)
Net cash (used in) provided by financing activities	7,200	68,977	(125,684)
Net change in cash and cash equivalents	(3,859)	(3,463)	(80,847)
Cash and cash equivalents at beginning of period	44,197	47,660	128,507
Cash and cash equivalents at end of period	40,338	44,197	47,660
Supplemental cash flow information
Income taxes paid	118	40	266
Interest paid for deposits	3,958	5,533	7,868
Interest paid for borrowings	5,142	22,708	864
Non-cash transfer of loans to other real estate owned	8,530	13,918	19,194
Non-cash transfer of premises to other real estate owned	468	2,160
Non-cash transfer of loans to securities available-for-sale			5,329
Non-cash transfer of securities available-for-sale to securities held-to-maturity			237,154
Change in dividends accrued	$ (544)	(9,112)	511
Accretion on preferred stock discount		$ 58	1,073
Fair value difference on recapture of restricted stock			$ 43

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Preferred Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total
Balance at Dec. 31, 2012	$ 18,729	$ 71,869	$ 66,189	$ 12,048	$ (1,327)	$ (94,956)	$ 72,552
Increase (Decrease) in Stockholders' Equity
Net income				82,085			82,085
Other comprehensive gain, net of tax					(5,711)		(5,711)
Change in restricted stock	101		(101)
Recapture of restricted stock			(43)			(569)	(612)
Stock based compensation			167				167
Purchase of treasury stock						(278)	(278)
Preferred stock accretion and declared dividends		1,073		(1,584)			(511)
Balance at Dec. 31, 2013	18,830	72,942	66,212	92,549	(7,038)	(95,803)	147,692
Increase (Decrease) in Stockholders' Equity
Net income				10,136			10,136
Other comprehensive gain, net of tax					(675)		(675)
Change in restricted stock	10		(10)
Recapture of restricted stock			29				29
Stock based compensation			295				295
Purchase of treasury stock						(46)	(46)
Redemption of preferred stock		(25,669)		1,348			(24,321)
Common stock offering	15,525		48,806				64,331
Preferred stock accretion and declared dividends		58		(3,336)			(3,278)
Balance at Dec. 31, 2014	34,365	47,331	115,332	100,697	(7,713)	(95,849)	194,163
Increase (Decrease) in Stockholders' Equity
Net income				15,385			15,385
Other comprehensive gain, net of tax					(4,946)		(4,946)
Change in restricted stock	62		(62)
Tax effect from vesting of restricted stock			35				35
Stock based compensation			613				613
Purchase of treasury stock						(117)	(117)
Redemption of preferred stock		$ (47,331)					(47,331)
Preferred stock accretion and declared dividends				(1,873)			(1,873)
Balance at Dec. 31, 2015	$ 34,427		$ 115,918	$ 114,209	$ (12,659)	$ (95,966)	$ 155,929

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 1: Summary of Significant Accounting Policies The Company uses the accrual basis of accounting for financial reporting purposes . Use of Estimates – The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) and following general practices within the banking industry requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates. Principles of Consolidation – The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements. Cash and Cash Equivalents – For purposes of the Consolidated Statements of Cash Flows, management has defined cash and cash equivalents to include cash and due from banks, interest-bearing deposits in other banks, and other short-term investments, such as federal funds sold and securities purchased under agreements to resell. Securities – Securities are classified as available-for-sale or held-to-maturity at the time of purchase or transfer. Securities that are classified as available-for-sale are carried at fair value. Unrealized gains and losses, net of related deferred income taxes, are recorded in stockholders’ equity as a separate component of accumulated other comprehensive income or loss. Securities held-to-maturity are carried at amortized cost and the discount or premium created at acquisition or in the transfer from available-for-sale is accreted or amortized to the maturity or expected payoff date but not an earlier call. The historical cost of debt securities is adjusted for amortization of premiums and accretion of discounts over the estimated life of the security, using the level yield method. Amortization of premium and accretion of discount are included in interest income from the related security. Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in securities gains, net in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. On a quarterly basis, the Company makes an assessment (at the individual security level) to determine whether there have been any events or circumstances indicating that a security with an unrealized loss is other-than-temporarily impaired (“OTTI”). In evaluating OTTI, the Company considers many factors, including the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; its ability and intent to hold the security for a period of time sufficient for a recovery in value; and the likelihood that it will be required to sell the security before a recovery in value, which may be at maturity. The amount of the impairment related to other factors is recognized in other comprehensive income (loss) unless management intends to sell the security or believes it is more likely than not that it will be required to sell the security prior to full recovery. Federal Home Loan Bank and Federal Reserve Bank Stock – The Company owns the stock of the Federal Home Loan Bank of Chicago (“FHLBC”) and the Federal Reserve Bank of Chicago (“Reserve Bank”). Both of these entities require the Bank to invest in their nonmarketable stock as a condition of membership. The FHLBC is a governmental sponsored entity. The Bank continues to utilize the various products and services of the FHLBC and management considers this stock to be a long-term investment. FHLBC members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLBC stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. The Company’s ability to redeem the shares owned is dependent on the redemption practices of the FHLBC. The Company records dividends in income on the ex-dividend date. Reserve Bank stock is redeemable at par, and therefore market value equals cost. Loans Held-for-Sale – The Bank originates residential mortgage loans, which consist of loan products eligible for sale to the secondary market. Residential mortgage loans eligible for sale in the secondary market are carried at fair market value. The fair value of loans held-for-sale is determined using quoted secondary market prices on similar loans. Loans – Loans held-for-investment are carried at the principal amount outstanding, including certain net deferred loan origination fees and costs. Interest income on loans is accrued based on principal amounts outstanding. Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized over the life of the related loans or commitments as a yield adjustment. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment. Other credit-related fees are recognized as fee income when earned. Concentration of Credit Risk – Most of the Company’s business activity is with customers located within Kane, Kendall, DeKalb, DuPage, LaSalle, Will and Cook counties in Illinois. These banking centers surround the Chicago metropolitan area. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in that market area since the Bank generally makes loans within its market. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector. Commercial and Industrial Loans – Such credits typically comprise working capital loans, loans for physical asset expansion, asset acquisition loans and other business loans. Loans to closely held businesses will generally be guaranteed in full or for a meaningful amount by the businesses’ major owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types. Commercial Real Estate Loans – Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans. These are loans secured by mortgages on real estate collateral. Commercial real estate loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. Residential Real Estate Loans – These are loans that are extended to purchase or refinance 1 – 4 family residential dwellings, or to purchase or refinance vacant lots intended for the construction of a 1 – 4 family home. Residential real estate loans are considered homogenous in nature. Homes may be the primary or secondary residence of the borrower or may be investment properties of the borrower. Real Estate Construction & Development Loans – The Company defines construction loans as loans where the loan proceeds are controlled by the Company and used exclusively for the improvement of real estate in which the Company holds a mortgage. Due to the inherent risk in this type of loan, they are subject to other industry specific policy guidelines outlined in the Company’s Credit Risk Policy and are monitored closely. Consumer Loans – Consumer loans include loans extended primarily for consumer and household purposes although they may include very small business loans for the purchase of vehicles and equipment to a single-owner enterprise and could include business purpose lines of credit if made under the terms of a small business product whose features and underwriting criteria are specified in advance by the Loan Committee. These also include overdrafts and other items not captured by the definitions above. Nonaccrual loans – Generally, commercial loans and loans secured by real estate are placed on nonaccrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower’s creditworthiness indicates a credit should be placed on nonaccrual status whether or not the loan is 90 days or more past due. When a loan is placed on nonaccrual status, unpaid interest credited to income is reversed. Generally, after the loan is placed on nonaccrual, all debt service payments are applied to the principal on the loan. Nonaccrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due. Commercial loans and loans secured by real estate are generally charged-off when deemed uncollectible. A loss is recorded at that time if the net realizable value can be quantified and it is less than the associated principal outstanding. Troubled Debt Restructurings (“TDRs”) – A restructuring of debt is considered a TDR when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity, that it would not otherwise consider. Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received. The Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. For TDRs to accrue interest, the borrower must demonstrate both some level of past performance and the capacity to perform under the modified terms. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before TDRs are returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower’s current creditworthiness is used to assess whether the borrower has the capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. Impa ired Loans – Impaired loans consist of nonaccrual loans and TDRs (both accruing and on nonaccrual). A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement based on current information and events. With the exception of TDRs still accruing interest, loans deemed to be impaired are classified as nonaccrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and consumer loans. 90 -Days or Greater Past Due Loans – 90-days or more past due loans are loans with principal or interest payments three months or more past due, but that still accrue interest. The Company continues to accrue interest if it determines these loans are sufficiently collateralized and the process of collection will conclude within a reasonable time period. Allowance for Loan Losses – The allowance for l oan losses is calculated according to GAAP standards and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for l oan losses is inherently subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on a migration analysis that uses historical loss experience, consideration of current economic trends, and other credit market factors. Loans deemed to be uncollectible are charged-off against the allowance for loan losses while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Approved releases from previously established loan loss reserves authorized under our allowance methodology also reduce the allowance for loan losses. Additions to the allowance for loan losses are established through the provision for loan losses charged to expense. The amount charged to operating expense depends on a number of factors, including historic loan growth, changes in the composition of the loan portfolio, net charge-off levels, and the Company’s assessment of the allowance for loan losses based on the methodology discussed below. The Company had no major methodology changes in 2014 . One methodology change, implemented in 2015, reflects the use of average balances in historical required reserve calculations to avoid loss rate impact if loan balances increase or decrease significantly. Previously, period end balances were used in the required reserve calculation. A second methodology change negates quarterly net recovery data in the historical loss rate experience calculations. The previous treatment of net recoveries was seen as a less meaningful treatment of current historical loss experience. The last methodology change replaces the commercial real estate pool management factor with a collateral calculation on balances for special mention and problem accruing loans in the period. This methodology change more accurately reflects all portfolio risk. The result of these methodology changes increased the allowance for loan losses by approximately $1.3 million. All calculations conform to U. S. generally accepted accounting principles. The allowance for loan losses methodology consists of (i) specific reserves established for probable losses on individual loans for which the recorded investment in the loan exceeds the present value of expected future cash flows or the net realizable value of the underlying collateral, if collateral dependent, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) the impact as assessed by management in detailed loan review sessions of other internal and external qualitative and credit market factors. The establishment of the allowance for loan losses involves a high degree of judgment and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance for loan losses is dependent upon a variety of factors beyond the Company’s direct control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. While each component of the allowance for loan losses is determined separately, the entire balance is available for the entire loan portfolio. Mortgage Servicing Rights – The Bank is also involved in the business of servicing mortgage loans. Servicing activities include collecting principal, interest, and escrow payments from borrowers, making tax and insurance payments on behalf of the borrowers, monitoring delinquencies, executing foreclosure proceedings, and accounting for and remitting principal and interest payments to the investors. Mortgage servicing rights represent the right to a stream of cash flows and an obligation to perform specified residential mortgage servicing activities. Mortgage loans that the Company is servicing for others aggregated to $638.2 million and $604.2 million at December 31, 2015 , and 2014 , respectively. Mortgage loans that the Company is servicing for others are not included in the consolidated balance sheets. Fees received in connection with servicing loans for others are recognized as earned. Loan servicing costs are charged to expense as incurred. Servicing rights are recognized separately as assets when they are acquired through sales of loans and servicing rights are retained. Servicing rights are initially recorded at fair value with the effect recorded in gains on sales of loans on the Consolidated Statements of Income. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Servicing fee income, which is included on the Consolidated Statements of Income as mortgage servicing income, net of fair value changes, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Under the fair value measurement method, the Company measures mortgage servicing rights at fair value at each reporting date, reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and includes these changes in mortgage servicing gain, net of fair value changes, on the Consolidated Statements of Income. The fair values of mortgage servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Other Real Estate Owned (“OREO”) – Real estate assets acquired in settlement of loans are recorded at fair value when acquired, less estimated costs to sell, establishing a new cost basis. Any deficiency between the net book value and fair value at the foreclosure or deed in lieu date is charged to the allowance for loan losses. If fair value declines after acquisition, a valuation allowance is established for the decrease between the recorded value and the updated fair value less costs to sell. Such declines are included in other noninterest expense. A subsequent reversal of an OREO valuation adjustment can occur, but the resultant carrying value cannot exceed the cost basis established at transfer to OREO. OREO properties are valued at the lower of cost or fair value less estimated costs to sell . Operating costs after acquisition are also expensed. Premises and Equipment – Premises, furniture, equipment, and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation expense is determined by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term including anticipated renewals. Rates of depreciation are generally based on the following useful lives: buildings, 25 to 40 years; building improvements, 3 to 15 years or longer under limited circumstances; and furniture and equipment, 3 to 10 years. Gains and losses on dispositions are included in other noninterest income in the Consolidated Statements of Income. Maintenance and repairs are charged to operating expenses as incurred, while improvements that conform to definitions of tangible property improvements are capitalized and depreciated over the estimated remaining life. Bank-Owned Life Insurance (“BOLI”) – BOLI represents life insurance policies on the lives of certain Company employees (both current and former) for which the Company is the sole owner and beneficiary. These policies are recorded as an asset on the Consolidated Statements of Financial Condition at their cash surrender value (“CSV”) or the amount that could be realized. The change in CSV and insurance proceeds received are recorded as BOLI income in the Consolidated Statements of Income in noninterest income. Core Deposit Intangible – The core deposit intangible (“CDI”) was amortized on an accelerated method over its useful life and was fully amortized in 2014. Loss Contingencies – Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. Wealth Management – Assets held in a fiduciary or agency capacity for customers are not included in the consolidated financial statements as they are not assets of the Company or its subsidiaries. Fee income is included as a component of noninterest income in the Consolidated Statements of Income. Advertising Costs – All advertising costs incurred by the Company are expensed in the period in which they are incurred. Long-term Incentive Plan – Compensation cost is recognized for stock options and restricted stock awards issued to employees based upon the fair value of the awards at the date of grant. A binomial model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Once the award is settled, the Company would determine whether the cumulative tax deduction exceeded the cumulative compensation cost recognized in the Consolidated Statement of Income. The cumulative tax deduction would include both the deductions from the dividends and the deduction from the exercise or vesting of the award. If the tax benefit received from the cumulative deductions exceeds the tax effect of the recognized cumulative compensation cost, the excess would be recognized as an increase to additional paid-in capital. Income Taxes – The Company files income tax returns in the U.S. federal jurisdiction and in Illinois. The provision for income taxes is based on income in the consolidated financial statements, rather than amounts reported on the Company’s income tax return. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. A full valuation allowance was previously established for the deferred tax assets excluding the amount associated with a net unrealized gain or loss on available-for-sale investment securities. Due to the implicit recovery of the book basis of the underlying securities along with management’s intent and ability to hold the securities to recovery or maturity, no valuation allowance on this specific deferred tax asset was established. At September 30, 2013, the Company reversed a significant portion of the valuation allowance after an analysis of both positive and negative evidence concerning the likelihood of deferred tax asset recognition under GAAP. The remaining portion of the valuation allowance against the deferred tax assets was reversed in 2014. See Note 11 – Income Taxes for further discussion. As of December 31, 2015 and 2014 , the Company evaluated tax positions taken for filing with the Internal Revenue Service and all state jurisdictions in which it operates. The Company believes that income tax filing positions will be sustained under examination and does not anticipate any adjustments that would result in a material adverse effect on the Company’s financial condition, results of operations, or cash flows. Accordingly, the Company has not recorded any reserves or related accruals for interest and penalties for uncertain tax positions at December 31, 2015 and 2014 . The Company is currently open to audit under the statute of limitations by the Internal Revenue Service from 2012 to 2014 and the appropriate state income taxing authorities from 2011 to 2014. Earnings Per Common Share (“EPS”) – Basic EPS is computed by dividing net income applicable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income applicable to common shareholders by the weighted-average number of common shares outstanding plus the number of additional common shares that would have been outstanding if the dilutive potential shares had been issued. The Company’s potential common shares represent shares issuable under its long-term incentive compensation plans and under the common stock warrant issued to preferred stockholders. Such common stock equivalents are computed based on the treasury stock method using the average market price for the period. Treasury Stock – Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Balance Sheet . Treasury stock issued is valued based on the “last in, first out” inventory method. The difference between the consideration received upon issuance and the carrying value is charged or credited to additional paid-in capital. Mortgage Banking Derivatives – As part of ongoing residential mortgage business, the Company enters into mortgage banking derivatives such as forward contracts and interest rate lock commitments. The derivatives and loans held-for-sale are carried at fair value with the changes in fair value recorded in current earnings. The net gain or loss on mortgage banking derivatives is included in gain on sale of loans . Derivative Financial Instruments – The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies. These derivative financial instruments consist primarily of interest rate swaps. T he Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and whether the Company has elected to designate a derivative as a hedging relationship and apply hedge accounting. A further consideration involves a determination on whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain risk s , even though hedge accounting does not apply or the Company elects not to apply hedge accounting. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued, and the adjustment to fair value of the derivative instrument is recorded in earnings. For a derivative used to hedge changes in cash flows associated with forecasted transactions, the gain or loss on the effective portion of the derivative are deferred and reported as a component of accumulated other comprehensive income, which is a component of shareholders’ equity, until such time the hedged transaction affects earnings. For derivative instruments not accounted for as hedges, changes in fair value are recognized in noninterest income/expense. Counterparty risk with correspondent banks is considered through loan covenant agreements and, as such, does not have a significant impact on the fair value of the swaps. Deferred gains and losses from derivatives not accounted for as hedges and that are terminated are amortized over the shorter of the original remaining term of the derivative or the remaining life of the underlying asset or liability. Comprehensive Income – Comprehensive income is the total of reported earnings for all other revenues, expenses, gains, and losses that are not reported in earnings under GAAP. The Company includes the following items, net of tax, in other comprehensive income in the Consolidated Statements of Comprehensive Income: (i) changes in unrealized gains or losses on securities available-for-sale, (ii) changes in unrealized gains or losses on securities held-to-maturity established upon transfer from securities available-for-sale and (iii) the effective portion of a derivative used to hedge cash flows. New Accounting Pronouncements: In May 2014, the FASB issued ASU No. 2014-09 "Revenue from Contracts with Customers (Topic 606)." The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU 2014-09 was to be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is assessing the impact of ASU 2014-09 on its accounting and disclosures. In August 2015, the FASB issued ASU 2015-14 “ Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date .” This accounting standards update defers the effective date for an additional year to be effective for annual reporting periods beginning after December 15, 2017.

Cash and Due from Banks

Cash and Due from Banks	12 Months Ended
	Dec. 31, 2015
Cash and Due from Banks.
Cash and Due from Banks	Note 2: Cash and Due from Banks The Bank is required to maintain reserve balances with the Reserve Bank. In accordance with the Reserve Bank requirements, the average reserve balances were $10.7 million and $16.0 million , for the years ended December 31, 2015 , and 2014 , respectively. The nature of the Company’s business requires that it maintain amounts with other banks and federal funds which, at times, may exceed federally insured limits. Management monitors these correspondent relationships, and the Company has not experienced any losses in such accounts. In 2014, the Bank also had a $4.4 million pledge requirement, met with cash, to a correspondent bank as it relates to credit card processing services and there was no such requirement in 2015 .

Securities

Securities	12 Months Ended
	Dec. 31, 2015
Securities
Securities	Note 3: Securities Investment Portfolio Management Our investment portfolio serves the liquidity and income needs of the Company. While the portfolio serves as an important component of the overall liquidity management at the Bank, portions of the portfolio will also serve as income producing assets. The size and composition of the portfolio reflects liquidity needs, loan demand and interest income objectives. Portfolio size and composition will be adjusted from time to time. While a significant portion of the portfolio consists of readily marketable securities to address liquidity, other parts of the portfolio may reflect funds invested pending future loan demand or to maximize interest income without undue interest rate risk. Investments are comprised of debt securities and non-marketable equity investments. Until the third quarter of 2013, all debt securities had been classified as available-for-sale . Securities available-for-sale are carried at fair value. Unrealized gains and losses, net of tax, on securities available-for-sale are reported as a separate component of equity. This balance sheet component changes as interest rates and market conditions change. Unrealized gains and losses are not included in the calculation of regulatory capital. Securities held-to-maturity are carried at amortized cost and the discount or premium created in the 2013 transfer from available-for-sale securities or at the time of purchase thereafter is accreted or amortized to the maturity or expected payoff date but not an earlier call. In accordance with GAAP, the Company has the positive intent and ability to hold the securities to maturity. Nonmarketable equity investments include FHLBC stock and Reserve Bank stock. FHLBC stock was $3.7 million and $4.3 million at December 31, 2015 , and December 31, 2014 . Reserve Bank stock was $4.8 million at December 31, 2015 , and December 31, 2014 . Our FHLBC stock is necessary to maintain access to FHLBC advances. The following table summarizes the amortized cost and fair value of the securities portfolio at December 31, 2015 and December 31, 2014 and the corresponding amounts of gross unrealized gains and losses (in thousands): Gross Gross Amortized Unrealized Unrealized Fair December 31, 2015: Cost Gains Losses Value Securities Available-for-Sale U.S. Treasury $ $ - $ - $ U.S. government agencies - U.S. government agencies mortgage-backed - States and political subdivisions Corporate bonds - Collateralized mortgage obligations Asset-backed securities Collateralized loan obligations - Total Securities Available-for-Sale $ $ $ $ Securities Held-to-Maturity U.S. government agency mortgage-backed $ $ $ - $ Collateralized mortgage obligations Total Securities Held-to-Maturity $ $ $ $ Gross Gross Amortized Unrealized Unrealized Fair December 31, 2014: Cost Gains Losses Value Securities Available-for-Sale U.S. Treasury $ $ - $ $ U.S. government agencies - States and political subdivisions Corporate bonds Collateralized mortgage obligations Asset-backed securities Collateralized loan obligations Total Securities Available-for-Sale $ $ $ $ Securities Held-to-Maturity U.S. government agency mortgage-backed $ $ $ - $ Collateralized mortgage obligations Total Securities Held-to-Maturity $ $ $ $ During the twelve months ended December 31, 2015 , we added $58.7 million to the total securities portfolio (net of payoffs, maturities, sales, calls, amortization and accretion). This change is largely found in asset-backed securities and, to a lesser amount , states and political subdivisions. Holdings of asset backed securities, primarily securities backed by student loan obligations, were reduced in 2014. Securities valued at $340.2 million as of December 31, 2015 , (up from $267.8 million at year-end 2014 ) were pledged to secure deposits and for other purposes. The fair value, amortized cost and weighted average yield of debt securities at December 31, 2015 , by contractual maturity, were as follows in the table below. Securities not due at a single maturity date are shown separately . Weighted Amortized Average Fair Securities Available-for-Sale Cost Yield Value Due in one year or less $ % $ Due after one year through five years % Due after five years through ten years % Due after ten years % % Mortgage-backed and collateralized mortgage obligations % Asset-backed securities % Collateralized loan obligations % $ % $ Securities Held-to-Maturity Mortgage-backed and collateralized mortgage obligations $ % $ At December 31, 2015 , the Company’s investments include asset-backed securities that are backed by student loans originated under the Federal Family Education Loan program (“FFEL”). Under the FFEL, private lenders made federally guaranteed student loans to parents and students. While the program was modified several times before elimination in 2010, not less than 97% of the outstanding principal amount of the loans made under FFEL are guaranteed by the U.S. Department of Education. A number of major student loan originators packaged loans and sold them as asset-backed securities. The Company has accumulated the securities of the following three different originators that individually amount to over 10% of the Company’s stockholders equity. Information regarding these three issuers and the value of the securities issued follows: December 31, 2015 Amortized Fair Issuer Cost Value College Loan Corporation $ $ Nelnet Student Loan GCO Education Loan Funding Corp Securities with unrealized losses at December 31, 2015 , and December 31, 2014 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities): Less than 12 months Greater than 12 months December 31, 2015 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities Available-for-Sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. government agencies - $ - $ - $ $ $ $ U.S. government agencies mortgage-backed - - - States and political subdivisions Corporate bonds Collateralized mortgage obligations Asset-backed securities Collateralized loan obligations $ $ $ $ $ $ Securities Held-to-Maturity Collateralized mortgage obligations $ $ $ $ $ $ $ $ $ $ $ $ Less than 12 months Greater than 12 months December 31, 2014 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities Available-for-Sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasury $ $ - $ - $ - $ $ U.S. government agencies - - - States and political subdivisions - - - Corporate bonds Collateralized mortgage obligations Asset-backed securities Collateralized loan obligations - - - $ $ $ $ $ $ Securities Held-to-Maturity Collateralized mortgage obligations $ $ $ $ $ $ $ $ $ $ $ $ Recognition of other-than-temporary impairment was not necessary in the year ended December 31, 2015 , or the year ended December 31, 2014 . The changes in fair value related primarily to interest rate fluctuations. Our review of other-than-temporary impairment confirmed no credit quality deterioration. Years ended December 31, 2015 2014 2013 Proceeds from sales of securities $ $ $ Gross realized gains on securities Gross realized losses on securities Securities gains (losses), net $ $ $ Income tax expense (benefit) on net realized gains (losses) $ $ $

Loans

Loans	12 Months Ended
	Dec. 31, 2015
Loans
Loans	Note 4: Loans Major classifications of loans were as follows: December 31, 2015 December 31, 2014 Commercial $ $ Real estate - commercial Real estate - construction Real estate - residential Consumer Overdraft Lease financing receivables Other Net deferred loan costs $ $ It is the policy of the Company to review each prospective credit in order to determine if an adequate level of security or collateral was obtained prior to making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company’s access to collateral, in the event of borrower default, is assured through adherence to lending law, the Company’s lending standards and credit monitoring procedures. The Bank generally makes loans solely within its market area. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector although the real estate related categories listed above represent 86.1% and 87.6% of the portfolio at December 31, 2015 , and December 31, 2014 , respectively. Aged analysis of past due loans by class of loans as of December 31, 2015 , and December 31, 2014 , were as follows: . Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2015 Past Due Past Due Due Due Current Nonaccrual Total Loans Accruing Commercial $ $ - $ - $ $ $ $ $ - Real estate - commercial Owner occupied general purpose - - Owner occupied special purpose - - - Non-owner occupied general purpose - - - - - Non-owner occupied special purpose - - - - - - Retail properties - - - - - - Farm - - - - - Real estate - construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - All other - Real estate - residential Investor - - - Owner occupied - - Revolving and junior liens - - Consumer - - - - All other 1 - - - - - - $ $ $ $ $ $ $ $ Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2014 Past Due Past Due Due Due Current Nonaccrual Total Loans Accruing Commercial $ $ - $ - $ $ $ $ $ - Real estate - commercial Owner occupied general purpose - - - Owner occupied special purpose - - - - - Non-owner occupied general purpose - - - - - Non-owner occupied special purpose - - - - - Retail properties - - - - - - Farm - - - - - - Real estate - construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - - All other - - Real estate - residential Investor - - - - - Owner occupied - - Revolving and junior liens - - Consumer - - - - - - All other 1 - - - - - - $ $ $ - $ $ $ $ $ - 1. The “All other” class includes overdrafts and net deferred loan fees and costs. Credit Quality Indicators: The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison against industry averages, historical payment experience, and current economic trends. This analysis includes loans with outstanding balances or commitments greater than $50,000 and excludes homogeneous loans such as home equity lines of credit and residential mortgages. Loans with a classified risk rating are reviewed quarterly regardless of size or loan type. The Company uses the following definitions for classified risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Credits that are not covered by the definitions above are pass credits, which are not considered to be adversely rated. Loans listed as not rated have outstanding loans or commitments less than $50,000 or are included in groups of homogeneous loans. Credit Quality Indicators by class of loans as of December 31, 2015 , and December 31, 2014 , were as follows: December 31, 2015 Special Pass Mention Substandard 1 Doubtful Total Commercial $ $ $ $ - $ Real estate - commercial Owner occupied general purpose - - Owner occupied special purpose - - Non-owner occupied general purpose - Non-owner occupied special purpose - - Retail Properties - Farm - - Real estate - construction Homebuilder - - - Land - - - Commercial speculative - - All other - - - Real estate - residential Investor - - Owner occupied - - Revolving and junior liens - - Consumer - - All other - - - Total $ $ $ $ - $ December 31, 2014 Special Pass Mention Substandard 1 Doubtful Total Commercial $ $ $ $ - $ Real estate - commercial Owner occupied general purpose - Owner occupied special purpose - Non-owner occupied general purpose - Non-owner occupied special purpose - Retail Properties - - Farm - - - Real estate - construction Homebuilder - - - Land - - - Commercial speculative - - All other - - Real estate - residential Investor - - Owner occupied - - Revolving and junior liens - Consumer - - All other - - - Total $ $ $ $ - $ 1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans Impaired loans by class of loan as of December 31 were as follows: December 31, 2015 December 31, 2014 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial $ $ $ - $ $ $ - Commercial real estate Owner occupied general purpose - - Owner occupied special purpose - - Non-owner occupied general purpose - - Non-owner occupied special purpose - - - - Retail properties - - - - - - Farm - - - - Construction Homebuilder - - - - Land - - - - - - Commercial speculative - - - - All other - - - - Residential Investor - - Owner occupied - - Revolving and junior liens - - Consumer - - - - - - Total impaired loans with no recorded allowance - - With an allowance recorded Commercial - - - Commercial real estate Owner occupied general purpose - - - - - - Owner occupied special purpose - - - - - - Non-owner occupied general purpose - - - Non-owner occupied special purpose - - - - - - Retail properties - - - - - - Farm - - - - - - Construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - - All other - - - Residential Investor - - - Owner occupied Revolving and junior liens - Consumer - - - - - - Total impaired loans with a recorded allowance Total impaired loans $ $ $ $ $ $ Average recorded investment and interest income recognized on impaired loans by class of loan for the years ending December 31 were as follows: Year to date Year to date Year to date December 31, 2015 December 31, 2014 December 31, 2013 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded Commercial $ $ - $ $ - $ $ - Commercial real estate Owner occupied general purpose Owner occupied special purpose - - Non-owner occupied general purpose - Non-owner occupied special purpose - - - Retail properties - - - - Farm - - - - Construction Homebuilder - Land - - - - Commercial speculative - - - All other - - - Residential Investor - Owner occupied Revolving and junior liens Consumer - - - - - Total impaired loans with no recorded allowance With an allowance recorded Commercial - - - - Commercial real estate Owner occupied general purpose - - - - Owner occupied special purpose - - - - Non-owner occupied general purpose - - - Non-owner occupied special purpose - - - - - - Retail properties - - - - - Farm - - - - - - Construction Homebuilder - - - - Land - - - - - - Commercial speculative - - - - All other - - - Residential Investor - - - Owner occupied - - Revolving and junior liens - - Consumer - - - - - - Total impaired loans with a recorded allowance - Total impaired loans $ $ $ $ $ $ Troubled debt restructurings (“TDRs”) are loans for which the contractual terms have been modified and both of these conditions exist: (1) there is a concession to the borrower and (2) the borrower is experiencing financial difficulties. Loans are restructured on a case-by-case basis during the loan collection process with modifications generally initiated at the request of the borrower. These modifications may include reduction in interest rates, extension of term, deferrals of principal, and other modifications. The Bank participates in the U.S. Department of the Treasury’s (the “Treasury”) Home Affordable Modification Program (“HAMP”) which gives qualifying homeowners an opportunity to refinance into more affordable monthly payments. The specific allocation of the allowance for loan losses on a TDR is determined by either discounting the modified cash flows at the original effective rate of the loan before modification or is based on the underlying collateral value less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Bank either establishes a valuation allowance (i.e. specific reserve) as a component of the allowance for loan losses or charges off the impaired balance if it determines that such amount is a confirmed loss. This method is used consistently for all segments of the portfolio. Loans that were modified during the period are summarized as follows: TDR Modifications Twelve months ended December 31, 2015 # of Pre-modification Post-modification contracts recorded investment recorded investment Troubled debt restructurings Real estate - residential Owner occupied Other 1 $ $ Revolving and junior liens HAMP 3 Other 1 $ $ TDR Modifications Twelve months ended December 31, 2014 # of Pre-modification Post-modification contracts recorded investment recorded investment Troubled debt restructurings Real estate - commercial Other 1 $ $ Bifurcate 2 Real estate - residential Investor Other 1 Owner occupied Other 1 HAMP 3 Deferral 4 Revolving and junior liens Other 1 $ $ 1 Other: Change of terms from bankruptcy court 2 Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note. 3 HAMP: Home Affordable Modification Program 4 Deferral: Refers to the deferral of principal TDRs are classified as being in default on a case-by-case basis when they fail to be in compliance with the modified terms. The following table presents TDRs that defaulted during the periods shown and were restructured within the 12 month period prior to default . TDR Default Activity TDR Default Activity Twelve months ended December 31, 2015 Twelve months ended December 31, 2014 Troubled debt restructurings that # of Pre-modification outstanding # of Pre-modification outstanding Subsequently Defaulted contracts recorded investment contracts recorded investment Real estate - commercial Owner occupied special purpose - $ - - $ - Real estate - residential Investor - - - - Owner occupied - - Revolving and junior liens - - - $ - $ The Bank had no commitments to borrowers whose loans were classified as impaired at December 31, 2015 . Loans to principal officers, directors, and their affiliates, which are made in the ordinary course of business, were as follows at December 31: 2015 2014 Beginning balance $ $ New loans Repayments and other reductions Change in related party status Ending balance $ $ No loans to principal officers, directors, and their affiliates were past due greater than 90 days at either December 31, 2015 , or December 31, 2014 .

Allowance for Loan Losses

Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2015
Allowance for Loan Losses
Allowance for Loan Losses	Note 5: Allowance for Loan Losses Changes in the allowance for loan losses by segment of loans based on method of impairment for the year ended December 31, 2015 , were as follows: Allowance for loan losses: Real Estate Real Estate Real Estate Commercial Commercial Construction Residential Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ Charge-offs - Recoveries - Provision (Release) Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ $ - $ - $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ Loans: Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ $ $ $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ Changes in the allowance for loan losses by segment of loans based on method of impairment for the year ended December 31, 2014 , were as follows: Allowance for loan losses: Real Estate Real Estate Real Estate Commercial Commercial Construction Residential Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ Charge-offs - Recoveries - (Release) provision Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ - $ $ $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ Loans: Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ $ $ $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ Changes in the allowance for loan losses by segment of loans based on method of impairment for the year ended December 31, 2013 , were as follows: Allowance for loan losses: Real Estate Real Estate Real Estate Commercial Commercial Construction Residential Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ Charge-offs - Recoveries - (Release) provision Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ - $ $ $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ Loans: Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ $ $ $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ The Company’s allowance for loan loss is calculated in accordance with GAAP and relevant supervisory guidance. All management estimates were made in light of observable trends within loan portfolio segments, market conditions and established credit review administration practices.

Other Real Estate Owned

Other Real Estate Owned	12 Months Ended
	Dec. 31, 2015
Other Real Estate Owned
Other Real Estate Owned	Note 6: Other Real Estate Owned Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table . Twelve Months Ended December 31, Other real estate owned 2015 2014 2013 Balance at beginning of period $ $ $ Property additions Property improvements - Less: Property disposals, net of gains/losses Period valuation adjustments Balance at end of period $ $ $ Activity in the valuation allowance was as follows: 2015 2014 2013 Balance at beginning of period $ $ $ Provision for unrealized losses Reductions taken on sales Other adjustments Balance at end of period $ $ $ Expenses related to OREO, net of lease revenue includes: 2015 2014 2013 Gain on sales, net $ $ $ Provision for unrealized losses Operating expenses Less: Lease revenue $ $ $

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2015
Premises and Equipment
Premises and Equipment	Note 7: Premises and Equipment Premises and equipment at December 31 were as follows: 2015 2014 Accumulated Accumulated Depreciation/ Net Book Depreciation/ Net Book Cost Amortization Value Cost Amortization Value Land $ $ - $ $ $ - $ Buildings Leasehold improvements Furniture and equipment $ $ $ $ $ $

Deposits

Deposits	12 Months Ended
	Dec. 31, 2015
Deposits
Deposits	Note 8: Deposits Major classifications of deposits were as follows: 2015 2014 Noninterest bearing demand $ $ Savings NOW accounts Money market accounts Certificates of deposit of less than $100,000 Certificates of deposit of $100,000 through $250,000 Certificates of deposit of more than $250,000 $ $ The Company had $3.9 million in brokered certificates of deposit as of December 31, 2015 . The Company had $255,000 in brokered certificates of deposit as of December 31, 2014 . Deposits held by senior officers and directors, including their related interests , totaled $1.6 million and $15.1 million, respectively, as of December 31, 2015 and 2014 . At December 31, 2015 , scheduled maturities of time deposits were as follows: 2016 $ 2017 2018 2019 2020 Total $

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2015
Borrowings
Borrowings	Note 9: Borrowings The following table is a summary of borrowings as of December 31, 2015 , and December 31, 2014 . J unior subordinated debentures are discussed in detail in Note 10: 2015 2014 Securities sold under repurchase agreements $ $ FHLBC advances 1 Junior subordinated debentures Subordinated debt Notes payable and other borrowings $ $ 1 Included in other short-term borrowing on the balance sheet. T he Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature within 1 to 90 days from the transaction date and are governed by sweep repurchase agreements. All sweep repurchase agreements are treated as financings secured by U.S. government agencies and collateralized mortgage-backed securities and had a carrying amount of $34.1 million at December 31, 2015 , and $21.0 million at December 31, 2014 . The fair value of the pledged collateral was $45.4 million and $43.4 million at December 31, 2015 and December 31, 2014 , respectively. At December 31, 2015 , there were no customers with secured balances exceeding 10% of stockholders’ equity. The following table is a summary of additional information related to repurchase agreements: 2015 2014 2013 Average daily balance during the year $ $ $ Average interest rate during the year % % % Maximum month-end balance during the year $ $ $ Weighted average interest rate at year-end % % % The Company’s borrowings at the FHLBC require the Bank to be a member and invest in the stock of the FHLBC. Total borrowings are generally limited to the lower of 35% of total assets or 60% of the book value of certain mortgage loans. As of December 31, 2015 , the Bank had taken an advance of $15.0 million at 0.1 6 % interest on the FHLBC stock valued at $3.7 million, collateralized securities with a fair value of $98.8 million and loans with a principal balance of $169.7 million, which carry a combined collateral value of $190.7 million. The Company has excess collateral of $174.4 million available to secure borrowings . One of the Company’s most significant borrowing relationships continued to be the $45.5 million credit facility with a correspondent bank. That credit is composed of $500,000 in senior term debt, and $45.0 million of subordinated debt. The subordinated debt and the senior term debt mature on March 31, 2018. The interest rate on the senior debt resets quarterly and at the Company’s option, is based on, the lender’s prime rate or three -month LIBOR plus 90 basis points. The interest rate on the subordinated debt resets quarterly, and is equal to three -month LIBOR plus 150 basis points. The Company had $500,000 in principal outstanding in senior term debt and $45.0 million in principal outstanding in subordinated debt at the end of both December 31, 2015 , and December 31, 2014 . The term debt is secured by all of the outstanding capital stock of the Bank. The Company has made all required interest payments on the outstanding principal balance on a timely basis. The credit facility agreement contains usual and customary provisions regarding acceleration of the senior debt upon the occurrence of an event of default by the Company under the senior debt agreement. The senior debt agreement also contains certain customary representations and warranties, and financial covenants. At December 31, 2015 , the Company was in compliance with all covenants contained within the credit agreement supporting the $45.5 million credit facility with a correspondent bank . The agreement provides that noncompliance is an event of default and as the result of the Company’s failure to comply with a financial covenant, the lender may (i) terminate all commitments to extend further credit, (ii) increase the interest rate on the revolving line of the term debt by 200 basis points, (iii) declare the senior debt immediately due and payable and (iv) exercise all of its rights and remedies at law, in equity and/or pursuant to any or all collateral documents, including foreclosing on the collateral. The total outstanding principal in senior debt is the $500,000 in term debt. Because the subordinated debt is treated as Tier 2 capital for regulatory capital purposes, the senior debt agreement does not provide the lender with any rights of acceleration or other remedies with regard to the subordinated debt upon an event of default caused by the Company’s failure to comply with a financial covenant. Scheduled maturities and weighted average rates of borrowings for the years ended December 31 were as follows: 2015 2014 Weighted Weighted Average Average Balance Rate Balance Rate 2015 N/A N/A $ % 2016 $ % - - 2017 - - - - 2018 % % 2019 - - - - 2020 - - - - Thereafter % % Total $ % $ %

Junior Subordinated Debentures

Junior Subordinated Debentures	12 Months Ended
	Dec. 31, 2015
Junior Subordinated Debentures.
Junior Subordinated Debentures	Note 10: Junior Subordinated Debentures The Company completed the sale of $27.5 million of cumulative trust preferred securities by its unconsolidated subsidiary, Old Second Capital Trust I in June 2003. An additional $4.1 million of cumulative trust preferred securities were sold in July 2003. The costs associated with the issuance of the cumulative trust preferred securities are being amortized over 30 years. The trust preferred securities may remain outstanding for a 30 ‑year term but, subject to regulatory approval, can be called in whole or in part by the Company after June 30, 2008 and can be exercised by the Company from time to time thereafter. When not in deferral, distributions on the securities are payable quarterly at an annual rate of 7.80% . The Company issued a new $32.6 million subordinated debenture to Old Second Capital Trust I in return for the aggregate net proceeds of this trust preferred offering. The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities. The Company sold an additional $25.0 million of cumulative trust preferred securities through a private placement completed by an additional, unconsolidated subsidiary, Old Second Capital Trust II, in April 2007. These trust preferred securities also mature in 30 years, but subject to the aforementioned regulatory approval, can be called in whole or in part on a quarterly basis commencing June 15, 2017. The quarterly cash distributions on the securities are fixed at 6.77% through June 15, 2017 and float at 150 basis points over three -month LIBOR thereafter. The Company issued a new $25.8 million subordinated debenture to the Old Second Capital Trust II in return for the aggregate net proceeds of this trust preferred offering. The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities. Under the terms of the subordinated debentures issued to each of Old Second Capital Trust I and II, the Company is allowed to defer payments of interest for 20 quarterly periods without default or penalty, but such amounts continue to accrue. Also during a deferral period, the Company generally may not pay cash dividends on or repurchase its common stock or preferred stock, including the Series B Fixed Rate Cumulative Perpetual Preferred Stock (the “Series B Stock”), as discussed in Note 20 . In August of 2010, the Company elected to defer regularly scheduled interest payments on the $58.4 million of junior subordinated debentures. Because of the deferral on the subordinated debentures, the trusts deferred regularly scheduled dividends on the trust preferred securities. On April 21, 2014, the Company paid all outstanding interest, which totaled $19.7 million, on the trust preferred securities to the trustees for payment to holders as of the next record date set forth in the indentures and terminated the deferral period. As of December 31, 2015 the Company is current on the payments due on these securities. Both of the debentures issued by the Company are disclosed on the Consolidated Balance Sheet as junior subordinated debentures and the related interest expense for each issuance is included in the Consolidated Statements of Income .

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Taxes
Income Taxes	Note 11: Income Taxes Income tax expense (benefit) for year s ending December 31, 2015, 2014 and 2013 were as follows: 2015 2014 2013 Current federal $ $ $ Current state - Deferred federal Deferred state Change in valuation allowance - $ $ $ The following were the components of the deferred tax assets and liabilities as of December 31, 2015 and December 31, 2014 : 2015 2014 Allowance for loan losses $ $ Deferred compensation Amortization of core deposit Goodwill amortization/impairment Stock based compensation OREO write-downs Federal net operating loss (“NOL”) carryforward State net operating loss (“NOL”) carryforward Deferred tax credit Other assets Total deferred tax assets Accumulated depreciation on premises and equipment Mortgage servicing rights State tax benefits Other liabilities Total deferred tax liabilities Net deferred tax asset before adjustments related to other comprehensive loss Tax effect of adjustments related to other comprehensive loss Net deferred tax asset $ $ At December 31, 2015 , the Company had a $68.9 million federal net operating loss carryforward of which, $13.6 million expires in 2030, $31.4 million expires in 2031 , $8.6 million expires in 2032, and $15.3 million expires in 2033. The Company had a $112.9 million state net operating loss carryforward of which, $17.2 million expires in 2021 , and $95.7 million expires in 2025. In addition, the Company had a $1.7 million alternative minimum tax credit subject to indefinite carryforward. Included in the tax effect of adjustments related to other comprehensive loss above are net unrealized losses on held-to-maturity securities that were transferred from available-for-sale securities of $2.4 million and $2.8 million as of December 31, 2015 and December 31, 2014 , respectively. The components of the provision for deferred income tax expense (benefit) for the years ending December 31 were as follows: 2015 2014 2013 Provision for loan losses $ $ $ Deferred Compensation Amortization of core deposit Stock based compensation OREO write-downs Federal net operating loss carryforward State net operating loss carryforward Deferred tax credit - Depreciation Net premiums and discounts on securities - Mortgage servicing rights Goodwill amortization/impairment State tax benefits Change in valuation allowance - Other, net Total deferred tax expense $ $ $ Effective tax rates differ from federal statutory rates applied to financial statement income (loss) for the years ended December 31 due to the following: 2015 2014 2013 Tax at statutory federal income tax rate $ $ $ Nontaxable interest income, net of disallowed interest deduction BOLI income State income taxes, net of federal benefit Change in valuation allowance - Deficiency from restricted stock - - Impact of Illinois tax rate change - - Other, net Tax at effective tax rate $ $ $ The Company evaluated positive and negative evidence in order to determine if it was more likely than not that the deferred tax asset would be recovered through future income. Significant positive evidence evaluated included recent and projected earnings, significantly improved asset quality and an improved capital position. Negative evidence identified included a reduction in net interest margin as a result of the current rate environment, and historic runoff of loans.

Equity Compensation Plans

Equity Compensation Plans	12 Months Ended
	Dec. 31, 2015
Equity Compensation Plans
Equity Compensation Plans	Note 12: Equity Compensation Plans There are stock-based awards outstanding under the Company’s 2008 Equity Incentive Plan (the “2008 Plan”) and the Company’s 2014 Equity Incentive Plan (the “2014 Plan,” and together with the 2008 Plan, the “Plans”). The 2014 Plan was approved at the 2014 annual meeting of stockholders. Following approval of the 2014 Plan, no further awards will be granted under the 2008 Plan or any other Company equity compensation plan. A maximum of 375,000 shares may be issued under the 2014 Plan. The Plan authorizes the granting of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights. Awards may be granted to selected directors and officers or employees under the 2014 Plan at the discretion of the Compensation Committee of the Company’s Board of Directors. As of December 31, 2015 , 125,000 shares remained available for issuance under the 2014 Plan. Total compensation cost that has been charged for the Plans was $613,000 , $295,000 and $167,000 for the years ending December 31, 2015, 2014 and 2013 . There were no stock options granted for the years ending December 31, 2015 , 2014 or 2013. All stock options are granted for a term of ten years. There were no stock options exercised during the years ending December 31, 2015 or 2014 . There is no unrecognized compensation cost related to unvested stock options as all stock options of the Company’s common stock have vested. A summary of stock option activity in the Plans for the year ending December 31, 2015 , is as follows: Weighted- Weighted Average Average Remaining Exercise Contractual Aggregate Shares Price Term (years) Intrinsic Value Beginning outstanding $ Canceled Expired Ending outstanding $ $ - Exercisable at end of period $ $ - Generally, restricted stock and restricted stock units granted under the Plans vest three years from the grant date, but the Compensation Committee of the Company’s Board of Directors has discretionary authority to change some terms including the amount of time until the vest date. Awards under the 2008 Plan will become fully vested upon a merger or change in control of the Company . Under the 2014 Plan, upon a change in control of the Company, if (i) the 2014 Plan is not an obligation of the successor entity following the change in control, or (ii) the 2014 Plan is an obligation of the successor entity following the change in control and the participant incurs an involuntary termination, then the stock options, stock appreciation rights, stock awards and cash incentive awards under the 2014 Plan will become fully exercisable and vested. Performance-based awards generally will vest based upon the level of achievement of the applicable performance measures through the change in control. The Company granted restricted stock under its equity compensation plans beginning in 2005 and it began granting restricted stock units in February 2009. Restricted stock awards under the Plans generally entitle holders to voting and dividend rights upon grant and are subject to forfeiture until certain restrictions have lapsed including employment for a specific period. Restricted stock units under the Plans are also subject to forfeiture until certain restrictions have lapsed including employment for a specific period, and generally entitle holders to receive dividend equivalents during the restricted period but do not entitle holders to voting rights until the restricted period ends and shares are transferred in connection with the units. There were 101,500 restricted awards issued during the year ending December 31, 2015 . There were 184,500 restricted awards issued for the year ending December 31, 2014 . Compensation expense is recognized over the vesting period of the restricted award based on the market value of the award on the issue date. A summary of changes in the Company’s unvested restricted awards for the year ending December 31, 2015 , is as follows: December 31, 2015 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Nonvested at January 1 $ Granted Vested Forfeited Nonvested at December 31 $ Total unrecognized compensation cost of restricted awards was $733,000 as of December 31, 2015 , which is expected to be recognized over a weighted-average period of 1.92 years.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2015
Earnings Per Share
Earnings Per Share	Note 13: Earnings Per Share The earnings per share – both basic and diluted – are included below as of December 31 (in thousands except for share data): 2015 2014 2013 Basic earnings per share: Weighted-average common shares outstanding Weighted-average common shares less stock based awards Weighted-average common shares stock based awards - Net income $ $ $ Gain on preferred stock redemption - - Preferred stock dividends and accretion, net of dividends waived Net earnings available to common stockholders Basic earnings per share common undistributed earnings N/A Basic earnings per share Diluted earnings per share: Weighted-average common shares outstanding Dilutive effect of nonvested restricted awards 1 Diluted average common shares outstanding Net earnings available to common stockholders $ $ $ Diluted earnings per share $ $ $ Number of antidilutive options and warrants excluded from the diluted earnings per share calculation 1 Includes the common stock equivalents for restricted share rights that are dilutive. The above earnings per share calculation did not include a warrant for 815,339 shares of common stock that was outstanding as of December 31, 2015, 2014 and 2013 , because the warrant was anti-dilutive at an exercise price of $13.43 . Of note, the warrant was sold at auction by the Treasury in June 2013 to a third party investor.

Commitments

Commitments	12 Months Ended
	Dec. 31, 2015
Commitments
Commitments	Note 14: Commitments In the normal course of business, there are outstanding commitments that are not reflected in the Consolidated Financial Statements. Commitments include financial instruments that involve, to varying degrees, elements of credit, interest rate, and liquidity risk. In management’s opinion, these do not represent unusual risks and management does not anticipate significant losses as a result of these transactions. The Company uses the same credit policies in making commitments and conditional obligations for borrowers as it does for on-balance sheet instruments. The following table is a summary of financial instrument commitments (in thousands): December 31, 2015 December 31, 2014 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ $ $ $ $ $ Commercial standby - - Performance standby Non-borrower: Performance standby - - - - Total letters of credit $ $ $ $ $ $ Unused loan commitments: $ $ $ $ $ $ The Bank occupies facilities under long-term operating leases, some of which include provisions for future rent increases. In addition, the Company leases space at sites that house automatic teller machines ( ATMs ) . As of December 31, 2015 , the estimated aggregate minimum annual rental commitments under these leases totaled $50,000 in 2016, $33,000 in 2017, $24,000 in 2018, and $15,000 thereafter. The Company also receives rental income on certain leased properties. As of December 31, 2015 , aggregate future minimum rental income to be received under noncancelable leases totaled $113,000 . Total facility net operating lease expense or revenue recorded under all operating leases was a net expense of $11,000 in 2015 net revenue of $67,000 in 2014 and $64,000 in 2013. Total ATM lease expense, including the costs related to servicing those ATM’s, was $826,000 , $829,000 and $830,000 in 2015, 2014 and 2013, respectively. Legal proceedings The Company and its subsidiaries, from time to time, pursue collection suits and other actions that arise in the ordinary course of business against their borrowers and are defendants in legal actions arising from normal business activities. Management, after consultation with legal counsel, believes that the ultimate liabilities, if any, resulting from these actions will not have a material adverse effect on the financial position of the Bank or on the consolidated financial position of the Company based on all known information at this time.

Regulatory & Capital Matters

Regulatory & Capital Matters	12 Months Ended
	Dec. 31, 2015
Regulatory & Capital Matters
Regulatory & Capital Matters	Note 15: Regulatory & Capital Matters The Bank is subject to the risk-based capital regulatory guidelines, which include the methodology for calculating the risk-weighted Bank assets, developed by the Office of the Comptroller of the Currency (the “OCC”) and the other bank regulatory agencies. In connection with the current economic environment, the Bank’s current level of nonperforming assets and the risk-based capital guidelines, the Bank’s board of directors has determined that the Bank should maintain a Tier 1 leverage capital ratio at or above eight percent (8%) and a total risk-based capital ratio at or above twelve percent (12%) . The Bank currently exceeds those thresholds. Bank holding companies are required to maintain minimum levels of capital in accordance with capital guidelines implemented by the Board of Governors of the Federal Reserve System. The general bank and holding company capital adequacy guidelines in force as of the periods reported are shown in the accompanying table, as are the capital ratios of the Company and the Bank, as of December 31, 2015 , and December 31, 2014 . In July 2013, the U.S. federal banking authorities issued final rules (the “Basel III Rules”) establishing more stringent regulatory capital requirements for U.S. banking institutions, which went into effect on January 1, 2015. A detailed discussion of the Basel III Rules is included in Part I, Item 1 of the under the heading “Supervision and Regulation.” At December 31, 2015, the Company, on a consolidated basis, exceeded the minimum thresholds to be considered “adequately capitalized” under current regulatory defined capital ratios. For all periods prior to 2015, all capital ratios displayed were calculated without giving effect to the final Basel III capital rules. The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. The capital ratios below are calculated pursuant to the capital requirements in effect for the periods reported below. Capital levels and industry defined regulatory minimum required levels: Minimum Required Minimum Required for Capital to be Well Actual Adequacy Purposes Capitalized 1 Amount Ratio Amount Ratio Amount Ratio 2015 Common equity tier 1 capital to risk weighted assets Consolidated $ % $ % N/A N/A Old Second Bank $ % Total capital to risk weighted assets Consolidated N/A N/A Old Second Bank Tier 1 capital to risk weighted assets Consolidated N/A N/A Old Second Bank Tier 1 capital to average assets Consolidated N/A N/A Old Second Bank 2014 Total capital to risk weighted assets Consolidated $ % $ % N/A N/A Old Second Bank $ % Tier 1 capital to risk weighted assets Consolidated N/A N/A Old Second Bank Tier 1 capital to average assets Consolidated N/A N/A Old Second Bank 1 The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized”. Dividend Restrictions and Deferrals In addition to the above requirements, banking regulations and capital guidelines generally limit the amount of dividends that may be paid by a Bank without prior regulatory approval. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s profits, combined with the retained profit of the previous two years, subject to the capital requirements described above. Pursuant to the Basel III rules that came into effect January 1, 2015, the Bank must keep a buffer of 0.625% in 2016, 1.25% in 2017, 1.875% in 2018, and 2.5% in 2019 and thereafter of minimum capital requirements in order to avoid additional limitations on capital distributions. The Bank has the ability and the authority to pay dividends to the Company.

Mortgage Banking Derivatives

Mortgage Banking Derivatives	12 Months Ended
	Dec. 31, 2015
Mortgage Banking Derivatives
Mortgage Banking Derivatives
Mortgage Banking Derivatives	Note 16: Mortgage Banking Derivatives Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company’s practice to sell mortgage-backed securities (“MBS”) contracts for the future delivery to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These contracts are also derivatives and collectively with the forward commitments for the future delivery of mortgage loans are considered forward contracts. These mortgage banking derivatives are not designated in hedge relationships using the accepted accounting for derivative instruments and hedging activities at December 31 (dollars in thousands): 2015 2014 Forward contracts: Notional amount $ $ Fair value Change in fair value Rate lock commitments: Notional amount $ $ Fair value Change in fair value Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. Changes in the fair values of these mortgage banking derivatives are included in net gains on sales of loans. The Company sold $190.6 million in loans to investors receiving proceeds of $196.4 million and resulting in a gain on sale of $5.8 million for the year ended December 31, 2015 . Sales to investors included $132.7 million or 69.8% to Federal National Mortgage Association and $33.6 million, or 17.7% to Wells Fargo for the year ended December 31, 2015 . No other individual investor was sold more than 10% of the total loans sold. Periodic changes in value of both forward MBS contracts and rate lock commitments are reported in current period earnings as net gain on sale of mortgage loans. Net gain recognized in earnings for the years ended December 31, 2015, 2014 and 2013 were $188,000 , $143,000 and $315,000 , respectively.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements
Fair Value Measurements	Note 17: Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy established by the Company also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own view about the assumptions that market participants would use in pricing an asset or liability. Transfers between levels are deemed to have occurred at the end of the reporting period. For the year ended December 31, 2015 , the Company transferred auction rate asset-backed securities from Level 3 to Level 2. For the year ended December 31, 2014 there were no significant transfers between levels. T he majority of securities (available-for-sale and held-to-maturity) are valued by external pricing services or dealer market participants and are classified in Level 2 of the fair value hierarchy. Both market and income valuation approaches are utilized. Quarterly, the Company evaluates the methodologies used by the external pricing services or dealer market participants to develop the fair values to determine whether the results of the valuations are representative of an exit price in the Company’s principal markets and an appropriate representation of fair value. The Company uses the following methods and significant assumptions to estimate fair value: · Government-sponsored agency debt securities are primarily priced using available market information through processes such as benchmark spreads, market valuations of like securities, like securities groupings and matrix pricing. · Other government-sponsored agency securities, MBS and some of the actively traded real estate mortgage investment conduits and collateralized mortgage obligations are priced using available market information including benchmark yields, prepayment speeds, spreads, volatility of similar securities and trade date. · State and political subdivisions are largely grouped by characteristics (e.g.., geographical data and source of revenue in trade dissemination systems). Because some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. · From December 31, 2013, to December 31, 2014, the Company utilized pricing data from a nationally recognized valuation firm providing specialized securities valuation services for auction rate asset-backed securities. Beginning March 31, 2015, these securities are priced using market spreads, cash flows, prepayment speeds, and loss analytics. Therefore, the valuations of auction rate asset-backed securities were transferred to Level 2 valuations. · During the third quarter of 2014, asset-backed collateralized loan obligations were acquired and priced using data from a pricing matrix supported by our bond accounting service provider and are therefore considered Level 2 valuations. · Once each quarter every security holding is priced by a pricing service independent of the regular and recurring pricing services used. The independent service provides a measurement to indicate if the price assigned by the regular service is within or outside of a reasonable range. Management reviews this report and applies judgment in adjusting calculations at quarter end related to securities pricing. · Residential mortgage loans eligible for sale in the secondary market are carried at fair market value. The fair value of loans held-for-sale is determined using quoted secondary market prices. · Lending related commitments to fund certain residential mortgage loans, e.g. residential mortgage loans with locked interest rates to be sold in the secondary market and forward commitments for the future delivery of mortgage loans to third party investors as well as forward commitments for future delivery of MBS are considered derivatives. Fair values are estimated based on observable changes in mortgage interest rates including prices for MBS from the date of the commitment and do not typically involve significant judgments by management. · The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income to derive the resultant value. The Company is able to compare the valuation model inputs, such as the discount rate, prepayment speeds, weighted average delinquency and foreclosure/bankruptcy rates to widely available published industry data for reasonableness. · Interest rate swap positions, both assets and liabilities, are based on valuation pricing models using an income approach reflecting readily observable market parameters such as interest rate yield curves. · The fair value of impaired loans with specific allocations of the allowance for loan losses is essentially based on recent real estate appraisals or the fair value of the collateralized asset . These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are made in the appraisal process by the appraisers to reflect differences between the available comparable sales and income data. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. · Nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Assets and Liabilities Measured at Fair Value on a Recurring Basis : The tables below present the balance of assets and liabilities (dollars in thousands) at December 31, 2015 , and December 31, 2014 , respectively, measured by the Company at fair value on a recurring basis: December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale U.S. Treasury $ $ - $ - $ U.S. government agencies - - U.S. government agencies mortgage-backed - - States and political subdivisions - Corporate Bonds - - Collateralized mortgage obligations - - Asset-backed securities - - Collateralized loan obligations - - Loans held-for-sale - - Mortgage servicing rights - - Other assets (Interest rate swap agreements) - - Other assets (Mortgage banking derivatives) - - Total $ $ $ $ Liabilities: Other liabilities (Interest rate swap agreements) $ - $ $ - $ Total $ - $ $ - $ December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale U.S. Treasury $ $ - $ - $ U.S. government agencies - - States and political subdivisions - Corporate bonds - - Collateralized mortgage obligations - - Asset-backed securities - Collateralized loan obligations - - Loans held-for-sale - - Mortgage servicing rights - - Other assets (Interest rate swap agreements net of swap credit valuation) - - Other assets (Mortgage banking derivatives) - - Total $ $ $ $ Liabilities: Other liabilities (Interest rate swap agreements) $ - $ $ - $ Total $ - $ $ - $ The changes in Level 3 assets and liabilities (dollars in thousands) measured at fair value on a recurring basis are as follows: Year ended December 31, 2015 Investment securities available-for-sale States and Mortgage Asset- Political Servicing backed Subdivisions Rights Beginning balance January 1, 2015 $ $ $ Transfers out of Level 3 - - Total gains or losses Included in earnings (or changes in net assets) - Included in other comprehensive income - - Purchases, issuances, sales, and settlements Issuances - - Settlements - Sales - - Ending balance December 31, 2015 $ - $ $ Year ended December 31, 2014 Investment securities available-for-sale States and Mortgage Interest Rate Asset- Political Servicing Swap backed Subdivisions Rights Valuation Beginning balance January 1, 2014 $ $ $ $ Total gains or losses Included in earnings (or changes in net assets) - Included in other comprehensive income - - - Purchases, issuances, sales, and settlements Purchases - - - Issuances - - - Settlements - - - Sales - - - Ending balance December 31, 2014 $ $ $ $ - The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of December 31, 2015 : Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage Servicing rights $ Discounted Cash Flow Discount Rate 10.0-15.5% % Prepayment Speed 6.0-35.2% % The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of December 31, 2014 : Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage Servicing rights $ Discounted Cash Flow Discount Rate 9.7-108.2% % Prepayment Speed 5.0-78.4% % Asset-backed securities Discounted Cash Flow Credit Risk Premium 0.9-0.9% % with comparable transaction yields Liquidity Discount 3.5-3.7% % The $111,000 on the state and political subdivisions line at December 31, 2015 , under Level 3 represents a security from a small, local municipality. Given the small dollar amount and size of the municipality involved, this is categorized as Level 3 based on the payment stream received by the Company from the municipality. That payment stream is otherwise an unobservable input. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis: The Company may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis in accordance with GAAP. These assets consist of impaired loans and OREO. For assets measured at fair value on a nonrecurring basis at December 31, 2015 , and December 31, 2014 , respectively, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: December 31, 2015 Level 1 Level 2 Level 3 Total Impaired loans 1 $ - $ - $ $ Other real estate owned, net 2 - - Total $ - $ - $ $ 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $115,000 , with a valuation allowance of $34,000 , resulting in a decrease of specific allocations within the allowance for loan losses of $243,000 for the year ending December 31, 2015 . 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $19.1 million, which is made up of the outstanding balance of $34.9 million, net of a valuation allowance of $14.1 million and participations of $1.7 million, at December 31, 2015 . December 31, 2014 Level 1 Level 2 Level 3 Total Impaired loans 1 $ - $ - $ $ Other real estate owned, net 2 - - Total $ - $ - $ $ 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $842,000 , with a valuation allowance of $278,000 , resulting in a decrease of specific allocations within the provision for loan losses of $2.1 million for the year ending December 31, 2014 . 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $32.0 million, which is made up of the outstanding balance of $53.0 million, net of a valuation allowance of $19.2 million and participations of $1.8 million, at December 31, 2014 . The Company also has assets that under certain conditions are subject to measurement at fair value on a nonrecurring basis. These assets include OREO and impaired loans. The Company has estimated the fair values of these assets based primarily on Level 3 inputs. OREO and impaired loans are generally valued using the fair value of collateral provided by third party appraisals. These valuations include assumptions related to cash flow projections, discount rates, and recent comparable sales. The numerical range of unobservable inputs for these valuation assumptions are not meaningful.

Fair Values of Financial Instru

Fair Values of Financial Instruments	12 Months Ended
	Dec. 31, 2015
Fair Values of Financial Instruments
Fair Values of Financial Instruments	Note 18: Fair Values of Financial Instruments The estimated fair values approximate carrying amount for all items except those described in the following table. Investment security fair values are based upon market prices or dealer quotes, and if no such information is available, on the rate and term of the security. The carrying value of FHLBC stock approximates fair value as the stock is nonmarketable and can only be sold to the FHLBC or another member institution at par. During the years ended December 31, 2015 , and 2014 , the Company participated in redemptions and a purchase with the FHLBC and, using these transactions values as the carrying value, FHLBC stock is carried at a Level 2 fair value. Fair values of loans were estimated for portfolios of loans with similar financial characteristics, such as type and fixed or variable interest rate terms. Cash flows were discounted using current rates at which similar loans would be made to borrowers with similar ratings and for similar maturities. The fair value of time deposits is estimated using discounted future cash flows at current rates offered for deposits of similar remaining maturities. The fair values of borrowings were estimated based on interest rates available to the Company for debt with similar terms and remaining maturities. The fair value of off balance sheet volume is not considered material. The fair value of mortgage banking derivatives is discussed above in Note 16. The carrying amount and estimated fair values of financial instruments were as follows: December 31, 2015 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ $ $ $ - $ - Interest bearing deposits with financial institutions - - Securities available-for-sale Securities held-to-maturity - - FHLBC and Reserve Bank Stock - - Bank-owned life insurance - - Loans held-for-sale - - Loans, net - - Accrued interest receivable - - Financial liabilities: Noninterest bearing deposits $ $ $ $ - $ - Interest bearing deposits - - Securities sold under repurchase agreements - - Other short-term borrowings - - Junior subordinated debentures - Subordinated debenture - - Note payable and other borrowings - - Interest rate swap agreements Borrowing interest payable - - Deposit interest payable - - December 31, 2014 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ $ $ $ - $ - Interest bearing deposits with financial institutions - - Securities available-for-sale Securities held-to-maturity - - FHLBC and Reserve Bank Stock - - Bank-owned life insurance - - Loans held-for-sale - - Loans, net - - Accrued interest receivable - - Financial liabilities: Noninterest bearing deposits $ $ $ $ - $ - Interest bearing deposits - - Securities sold under repurchase agreements - - Other short-term borrowings - - Junior subordinated debentures - Subordinated debenture - - Note payable and other borrowings - - Borrowing interest payable - - Deposit interest payable - -

Financial Instruments with Off-

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	12 Months Ended
	Dec. 31, 2015
Derivative Excluding Mortgage Banking Derivatives
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	Note 19: Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions To meet the financing needs of its customers, the Bank, as a subsidiary of the Company, is a party to various financial instruments with off-balance-sheet risk in the normal course of business. These off-balance-sheet financial instruments include commitments to originate and sell loans as well as financial standby, performance standby and commercial letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The Bank’s exposure to credit loss for loan commitments and letters of credit is represented by the dollar amount of those instruments. Management generally uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance-sheet instruments. Interest Rate Swap Designated as a Cash Flow Hedge The Company entered into a forward starting interest rate swap on August 18, 2015, with an effective date of June 15, 2017. This transaction had a notional amount totaling $25.8 million as of December 31, 2015 , was designated as a cash flow hedge of certain junior subordinated debentures and was determined to be fully effective during the period presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swap is recorded in other liabilities with changes in fair value recorded in other comprehensive income, net of tax. The amount included in other comprehensive income would be reclassified to current earnings should all or a portion of the hedge no longer be considered effective. The Company expects the hedge to remain fully effective during the remaining term of the swap. The Bank will pay the counterparty a fixed rate and receive a floating rate based on three month LIBOR. Management concluded that it would be advantageous to enter into this transaction given that the Company has trust preferred securities that will change from fixed rate to floating rate on June 15, 2017. The cash flow hedge has a maturity date of June 15, 2037. Summary information about the interest rate swap designated as a cash flow hedge is as follows: As of December 31, 2015 December 31, 2014 Notional amount $ $ - Unrealized loss - Interest Rate Swaps The Bank also has interest rate derivative positions to assist with risk management that are not designated as hedging instruments. These derivative positions relate to transactions in which the Bank enters an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. Due to financial covenant violations relating to nonperforming loans, the Bank had $2.4 million in investment securities pledged to support interest rate swap activity with two correspondent financial institutions at December 31, 2015 . The Bank had $3.0 million in investment securities pledged to support interest rate swap activity with three correspondent financial institutions at December 31, 2014 . In connection with each transaction, the Bank agreed to pay interest to the client on a notional amount at a variable interest rate and receive interest from the client on the same notional amount at a fixed interest rate. At the same time, the Bank agreed to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the client to convert a variable rate loan to a fixed rate loan and is part of the Company’s interest rate risk management strategy. Because the Bank acts as an intermediary for the client, changes in the fair value of the underlying derivative contracts offset each other and do not generally affect the results of operations. At December 31, 2015 , the notional amount of non-hedging interest rate swaps was $20.7 million with a weighted average maturity of 5.1 years. At December 31, 2014 , the notional amount of non-hedging interest rate swaps was $16.3 million with a weighted average maturity of 2.7 years. The Bank offsets derivative assets and liabilities that are subject to a master netting arrangement. The Bank also grants mortgage loan interest rate lock commitments to borrowers, subject to normal loan underwriting standards. The interest rate risk associated with these loan interest rate lock commitments is managed with contracts for future deliveries of loans as well as selling forward mortgage-backed securities contracts. Loan interest rate lock commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments to originate residential mortgage loans held-for-sale and forward commitments to sell residential mortgage loans or forward MBS contracts are considered derivative instruments and changes in the fair value are recorded to mortgage banking revenue. Fair values are estimated based on observable changes in mortgage interest rates including mortgage-backed securities prices from the date of the commitment. The following table presents derivatives not designated as hedging instruments as of December 31, 2015 , and periodic changes in the values of the interest rate swaps are reported in other noninterest income. Periodic changes in the value of the forward contracts related to mortgage loan origination are reported in the net gain on sales of mortgage loans. Asset Derivatives Liability Derivatives Notional or Contractual Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Interest rate swap contracts $ Other Assets $ Other Liabilities $ Commitments 1 Other Assets N/A - Forward contracts 2 N/A - Other Liabilities - Total $ $ 1 Includes unused loan commitments and interest rate lock commitments. 2 Includes forward MBS contracts and forward loan contracts. The following table presents derivatives not designated as hedging instruments as of December 31, 2014 . Asset Derivatives Liability Derivatives Notional or Contractual Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Interest rate swap contracts net of credit valuation $ Other Assets $ Other Liabilities $ Commitments 1 Other Assets N/A - Forward contracts 2 N/A - Other Liabilities - Total $ $ 1 Includes unused loan commitments and interest rate lock commitments. 2 Includes forward MBS contracts.

Preferred Stock

Preferred Stock	12 Months Ended
	Dec. 31, 2015
Preferred Stock Abstract
Preferred Stock	Note 20: Preferred Stock The Series B Stock was issued as part of the Treasury’s Troubled Asset Relief Program and Capital Purchase Program ( the “CPP”). The Series B Stock qualifies as Tier 1 capital and pays cumulative dividends on the liquidation preference amount on a quarterly basis at a rate of 5% per annum for the first five years, and 9% per annum thereafter effective in February 2014. Concurrent with issuing the Series B Stock, the Company issued to the Treasury a ten year warrant to purchase 815,339 shares of the Company’s common stock at an exercise price of $13.43 per share. Subsequent to the Company’s receipt of the $73.0 million in proceeds from the Treasury in the first quarter of 2009, the Company allocated the proceeds between the Series B Stock and the warrant that was issued. The Company recorded the warrant as equity, and the allocation was based on their relative fair values in accordance with accounting guidance. The fair value was determined for both the Series B Stock and the warrant as part of the allocation process in the amounts of $68.2 million and $4.8 million, respectively. In the second quarter of 2014, the Company completed redemption of 25,669 shares of its Series B Stock at a price equal to 94.75% of liquidation value or $24.3 million (including $1.4 million to Company Directors) provided that the holders of shares entered into agreements to forebear payment of dividends due and to waive any rights to such dividends upon redemption. The Company redeemed 15,778 shares of its Series B Stock in the first quarter of 2015 and the remaining 31,553 shares of its Series B Stock in the third quarter of 2015. During the year ending December 31, 2015 and 2014, the Company paid $2.4 million and $12.4 million in dividends on the Series B Stock, respectively. At December 31, 2015, the Company has fully redeemed the Series B Stock. At December 31, 2014, the Company carried $47.3 million of Series B Stock in total stockholders’ equity.

Parent Company Condensed Financ

Parent Company Condensed Financial Information	12 Months Ended
	Dec. 31, 2015
Parent Company Condensed Financial Information
Parent Company Condensed Financial Information	Note 21: Parent Company Condensed Financial Information Condensed Balance Sheets as of December 31 were as follows: 2015 2014 Assets Noninterest bearing deposit with bank subsidiary $ $ Investment in subsidiaries Other assets $ $ Liabilities and Stockholders’ Equity Junior subordinated debentures $ $ Subordinated debt Other liabilities Stockholders’ equity $ $ Condensed Statements of Income for the years ended December 31 were as follows: 2015 2014 2013 Operating Income Cash dividends received from subsidiaries $ $ - $ - Other income Operating Expenses Junior subordinated debentures interest expense Subordinated debt interest expense Other interest expense Other expenses Loss before income taxes and equity in undistributed net income of subsidiaries Income tax benefit (Loss) income before equity in undistributed net income of subsidiaries Equity in (over distributed) undistributed net income of subsidiaries Net income Preferred stock dividends and accretion of discount Dividends waived upon preferred stock redemption - - Gain on redemption of preferred stock - - Net income available to common stockholders $ $ $ Condensed Statements of Cash Flows for the years ended December 31 were as follows: 2015 2014 2013 Cash Flows from Operating Activities Net Income $ $ $ Adjustments to reconcile net income (loss) to net cash from operating activities: Equity in over distributed (undistributed) net income of subsidiaries Deferred income taxes Change in taxes payable Change in other assets Gain on recapture of restricted stock - - Stock-based compensation Other, net Net cash used in operating activities Cash Flows from Investing Activities Net cash provided by investing activities - - - Cash Flows from Financing Activities Divided paid - Purchases of treasury stock Proceeds from the issuance of common stock - - Redemption of preferred stock - Net cash provided by (used in) financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year $ $ $

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2015
Employee Benefit Plans
Employee Benefit Plans	Note 2 2 : Employee Benefit Plans Old Second Bancorp, Inc. Employees 401(k) Savings Plan and Trust The Company sponsors a qualified, tax-exempt defined contribution plan (the “Plan”) qualifying under section 401(k) of the Internal Revenue Code. Virtually all employees are eligible to participate after meeting certain age and service requirements. Eligible employees are permitted to contribute up to a dollar limit set by law of their compensation to the Plan. For the years ended December 31, 2015, 2014 and 2013 , a discretionary match equal to 100% of the first 2% of the participant’s compensation was contributed to participants of the Plan. Participants are 100% vested in the discretionary matching contributions. The profit sharing portion of the Plan arrangement provides an annual discretionary contribution to the retirement account of each employee based in part on the Company’s profitability in a given year, and on each participant’s annual compensation. Participants can choose between several different investment options under the Plan, including shares of the Company’s common stock. The total expense relating to the Plan was approximately $464,000 , $477,000 and $468,000 in 2015 , 2014 and 2013 , respectively. Old Second Bancorp, Inc. Voluntary Deferred Compensation Plan for Executives The Company sponsors an executive deferred compensation plan, which is a means by which certain executives may voluntarily defer a portion of their salary or bonus. This plan is an unfunded, nonqualified deferred compensation arrangement. Company obligations under this arrangement as of December 31, 2015, 2014 and 2013 were $1.6 million, $1.9 million and $1.8 million, respectively, and are included in other liabilities.

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies
Basis of Accounting and Reclassifications of Prior Year Amounts	The Company uses the accrual basis of accounting for financial reporting purposes .
Use of Estimates	Use of Estimates – The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) and following general practices within the banking industry requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates.
Principles of Consolidation	Principles of Consolidation – The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements.
Cash and Cash Equivalents	Cash and Cash Equivalents – For purposes of the Consolidated Statements of Cash Flows, management has defined cash and cash equivalents to include cash and due from banks, interest-bearing deposits in other banks, and other short-term investments, such as federal funds sold and securities purchased under agreements to resell.
Securities	Securities – Securities are classified as available-for-sale or held-to-maturity at the time of purchase or transfer. Securities that are classified as available-for-sale are carried at fair value. Unrealized gains and losses, net of related deferred income taxes, are recorded in stockholders’ equity as a separate component of accumulated other comprehensive income or loss. Securities held-to-maturity are carried at amortized cost and the discount or premium created at acquisition or in the transfer from available-for-sale is accreted or amortized to the maturity or expected payoff date but not an earlier call. The historical cost of debt securities is adjusted for amortization of premiums and accretion of discounts over the estimated life of the security, using the level yield method. Amortization of premium and accretion of discount are included in interest income from the related security. Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in securities gains, net in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. On a quarterly basis, the Company makes an assessment (at the individual security level) to determine whether there have been any events or circumstances indicating that a security with an unrealized loss is other-than-temporarily impaired (“OTTI”). In evaluating OTTI, the Company considers many factors, including the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; its ability and intent to hold the security for a period of time sufficient for a recovery in value; and the likelihood that it will be required to sell the security before a recovery in value, which may be at maturity. The amount of the impairment related to other factors is recognized in other comprehensive income (loss) unless management intends to sell the security or believes it is more likely than not that it will be required to sell the security prior to full recovery.
Federal Home Loan Bank and Federal Reserve Bank Stock	Federal Home Loan Bank and Federal Reserve Bank Stock – The Company owns the stock of the Federal Home Loan Bank of Chicago (“FHLBC”) and the Federal Reserve Bank of Chicago (“Reserve Bank”). Both of these entities require the Bank to invest in their nonmarketable stock as a condition of membership. The FHLBC is a governmental sponsored entity. The Bank continues to utilize the various products and services of the FHLBC and management considers this stock to be a long-term investment. FHLBC members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLBC stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. The Company’s ability to redeem the shares owned is dependent on the redemption practices of the FHLBC. The Company records dividends in income on the ex-dividend date. Reserve Bank stock is redeemable at par, and therefore market value equals cost.
Loans Held-for-Sale	Loans Held-for-Sale – The Bank originates residential mortgage loans, which consist of loan products eligible for sale to the secondary market. Residential mortgage loans eligible for sale in the secondary market are carried at fair market value. The fair value of loans held-for-sale is determined using quoted secondary market prices on similar loans.
Loans	Loans – Loans held-for-investment are carried at the principal amount outstanding, including certain net deferred loan origination fees and costs. Interest income on loans is accrued based on principal amounts outstanding. Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized over the life of the related loans or commitments as a yield adjustment. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment. Other credit-related fees are recognized as fee income when earned.
Concentration of Credit Risk	Concentration of Credit Risk – Most of the Company’s business activity is with customers located within Kane, Kendall, DeKalb, DuPage, LaSalle, Will and Cook counties in Illinois. These banking centers surround the Chicago metropolitan area. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in that market area since the Bank generally makes loans within its market. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector.
Nonaccrual loans	Nonaccrual loans – Generally, commercial loans and loans secured by real estate are placed on nonaccrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower’s creditworthiness indicates a credit should be placed on nonaccrual status whether or not the loan is 90 days or more past due. When a loan is placed on nonaccrual status, unpaid interest credited to income is reversed. Generally, after the loan is placed on nonaccrual, all debt service payments are applied to the principal on the loan. Nonaccrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due. Commercial loans and loans secured by real estate are generally charged-off when deemed uncollectible. A loss is recorded at that time if the net realizable value can be quantified and it is less than the associated principal outstanding.
Troubled Debt Restructurings (TDRs)	Troubled Debt Restructurings (“TDRs”) – A restructuring of debt is considered a TDR when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity, that it would not otherwise consider. Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received. The Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. For TDRs to accrue interest, the borrower must demonstrate both some level of past performance and the capacity to perform under the modified terms. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before TDRs are returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower’s current creditworthiness is used to assess whether the borrower has the capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable.
Impaired Loans	Impa ired Loans – Impaired loans consist of nonaccrual loans and TDRs (both accruing and on nonaccrual). A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement based on current information and events. With the exception of TDRs still accruing interest, loans deemed to be impaired are classified as nonaccrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and consumer loans.
90-Days or Greater Past Due Loans	90 -Days or Greater Past Due Loans – 90-days or more past due loans are loans with principal or interest payments three months or more past due, but that still accrue interest. The Company continues to accrue interest if it determines these loans are sufficiently collateralized and the process of collection will conclude within a reasonable time period.
Allowance for Loan Losses	Allowance for Loan Losses – The allowance for l oan losses is calculated according to GAAP standards and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for l oan losses is inherently subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on a migration analysis that uses historical loss experience, consideration of current economic trends, and other credit market factors. Loans deemed to be uncollectible are charged-off against the allowance for loan losses while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Approved releases from previously established loan loss reserves authorized under our allowance methodology also reduce the allowance for loan losses. Additions to the allowance for loan losses are established through the provision for loan losses charged to expense. The amount charged to operating expense depends on a number of factors, including historic loan growth, changes in the composition of the loan portfolio, net charge-off levels, and the Company’s assessment of the allowance for loan losses based on the methodology discussed below. The Company had no major methodology changes in 2014 . One methodology change, implemented in 2015, reflects the use of average balances in historical required reserve calculations to avoid loss rate impact if loan balances increase or decrease significantly. Previously, period end balances were used in the required reserve calculation. A second methodology change negates quarterly net recovery data in the historical loss rate experience calculations. The previous treatment of net recoveries was seen as a less meaningful treatment of current historical loss experience. The last methodology change replaces the commercial real estate pool management factor with a collateral calculation on balances for special mention and problem accruing loans in the period. This methodology change more accurately reflects all portfolio risk. The result of these methodology changes increased the allowance for loan losses by approximately $1.3 million. All calculations conform to U. S. generally accepted accounting principles. The allowance for loan losses methodology consists of (i) specific reserves established for probable losses on individual loans for which the recorded investment in the loan exceeds the present value of expected future cash flows or the net realizable value of the underlying collateral, if collateral dependent, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) the impact as assessed by management in detailed loan review sessions of other internal and external qualitative and credit market factors. The establishment of the allowance for loan losses involves a high degree of judgment and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance for loan losses is dependent upon a variety of factors beyond the Company’s direct control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. While each component of the allowance for loan losses is determined separately, the entire balance is available for the entire loan portfolio.
Mortgage Servicing Rights	Mortgage Servicing Rights – The Bank is also involved in the business of servicing mortgage loans. Servicing activities include collecting principal, interest, and escrow payments from borrowers, making tax and insurance payments on behalf of the borrowers, monitoring delinquencies, executing foreclosure proceedings, and accounting for and remitting principal and interest payments to the investors. Mortgage servicing rights represent the right to a stream of cash flows and an obligation to perform specified residential mortgage servicing activities. Mortgage loans that the Company is servicing for others aggregated to $638.2 million and $604.2 million at December 31, 2015 , and 2014 , respectively. Mortgage loans that the Company is servicing for others are not included in the consolidated balance sheets. Fees received in connection with servicing loans for others are recognized as earned. Loan servicing costs are charged to expense as incurred. Servicing rights are recognized separately as assets when they are acquired through sales of loans and servicing rights are retained. Servicing rights are initially recorded at fair value with the effect recorded in gains on sales of loans on the Consolidated Statements of Income. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Servicing fee income, which is included on the Consolidated Statements of Income as mortgage servicing income, net of fair value changes, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Under the fair value measurement method, the Company measures mortgage servicing rights at fair value at each reporting date, reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and includes these changes in mortgage servicing gain, net of fair value changes, on the Consolidated Statements of Income. The fair values of mortgage servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.
Other Real Estate Owned ("OREO")	Other Real Estate Owned (“OREO”) – Real estate assets acquired in settlement of loans are recorded at fair value when acquired, less estimated costs to sell, establishing a new cost basis. Any deficiency between the net book value and fair value at the foreclosure or deed in lieu date is charged to the allowance for loan losses. If fair value declines after acquisition, a valuation allowance is established for the decrease between the recorded value and the updated fair value less costs to sell. Such declines are included in other noninterest expense. A subsequent reversal of an OREO valuation adjustment can occur, but the resultant carrying value cannot exceed the cost basis established at transfer to OREO. OREO properties are valued at the lower of cost or fair value less estimated costs to sell . Operating costs after acquisition are also expensed.
Premises and Equipment	Premises and Equipment – Premises, furniture, equipment, and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation expense is determined by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term including anticipated renewals. Rates of depreciation are generally based on the following useful lives: buildings, 25 to 40 years; building improvements, 3 to 15 years or longer under limited circumstances; and furniture and equipment, 3 to 10 years. Gains and losses on dispositions are included in other noninterest income in the Consolidated Statements of Income. Maintenance and repairs are charged to operating expenses as incurred, while improvements that conform to definitions of tangible property improvements are capitalized and depreciated over the estimated remaining life.
Bank-Owned Life Insurance ("BOLI")	Bank-Owned Life Insurance (“BOLI”) – BOLI represents life insurance policies on the lives of certain Company employees (both current and former) for which the Company is the sole owner and beneficiary. These policies are recorded as an asset on the Consolidated Statements of Financial Condition at their cash surrender value (“CSV”) or the amount that could be realized. The change in CSV and insurance proceeds received are recorded as BOLI income in the Consolidated Statements of Income in noninterest income.
Core Deposit Intangible Assets	Core Deposit Intangible – The core deposit intangible (“CDI”) was amortized on an accelerated method over its useful life and was fully amortized in 2014.
Loss Contingencies	Loss Contingencies – Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements.
Wealth Management	Wealth Management – Assets held in a fiduciary or agency capacity for customers are not included in the consolidated financial statements as they are not assets of the Company or its subsidiaries. Fee income is included as a component of noninterest income in the Consolidated Statements of Income.
Advertising Costs	Advertising Costs – All advertising costs incurred by the Company are expensed in the period in which they are incurred.
Long-term Incentive Plan	Long-term Incentive Plan – Compensation cost is recognized for stock options and restricted stock awards issued to employees based upon the fair value of the awards at the date of grant. A binomial model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Once the award is settled, the Company would determine whether the cumulative tax deduction exceeded the cumulative compensation cost recognized in the Consolidated Statement of Income. The cumulative tax deduction would include both the deductions from the dividends and the deduction from the exercise or vesting of the award. If the tax benefit received from the cumulative deductions exceeds the tax effect of the recognized cumulative compensation cost, the excess would be recognized as an increase to additional paid-in capital.
Income Taxes	Income Taxes – The Company files income tax returns in the U.S. federal jurisdiction and in Illinois. The provision for income taxes is based on income in the consolidated financial statements, rather than amounts reported on the Company’s income tax return. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. A full valuation allowance was previously established for the deferred tax assets excluding the amount associated with a net unrealized gain or loss on available-for-sale investment securities. Due to the implicit recovery of the book basis of the underlying securities along with management’s intent and ability to hold the securities to recovery or maturity, no valuation allowance on this specific deferred tax asset was established. At September 30, 2013, the Company reversed a significant portion of the valuation allowance after an analysis of both positive and negative evidence concerning the likelihood of deferred tax asset recognition under GAAP. The remaining portion of the valuation allowance against the deferred tax assets was reversed in 2014. See Note 11 – Income Taxes for further discussion. As of December 31, 2015 and 2014 , the Company evaluated tax positions taken for filing with the Internal Revenue Service and all state jurisdictions in which it operates. The Company believes that income tax filing positions will be sustained under examination and does not anticipate any adjustments that would result in a material adverse effect on the Company’s financial condition, results of operations, or cash flows. Accordingly, the Company has not recorded any reserves or related accruals for interest and penalties for uncertain tax positions at December 31, 2015 and 2014 . The Company is currently open to audit under the statute of limitations by the Internal Revenue Service from 2012 to 2014 and the appropriate state income taxing authorities from 2011 to 2014.
Earnings Per Common Share ("EPS")	Earnings Per Common Share (“EPS”) – Basic EPS is computed by dividing net income applicable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income applicable to common shareholders by the weighted-average number of common shares outstanding plus the number of additional common shares that would have been outstanding if the dilutive potential shares had been issued. The Company’s potential common shares represent shares issuable under its long-term incentive compensation plans and under the common stock warrant issued to preferred stockholders. Such common stock equivalents are computed based on the treasury stock method using the average market price for the period.
Treasury Stock	Treasury Stock – Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Balance Sheet . Treasury stock issued is valued based on the “last in, first out” inventory method. The difference between the consideration received upon issuance and the carrying value is charged or credited to additional paid-in capital.
Derivative Financial Instruments	Derivative Financial Instruments – The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies. These derivative financial instruments consist primarily of interest rate swaps. T he Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and whether the Company has elected to designate a derivative as a hedging relationship and apply hedge accounting. A further consideration involves a determination on whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain risk s , even though hedge accounting does not apply or the Company elects not to apply hedge accounting. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued, and the adjustment to fair value of the derivative instrument is recorded in earnings. For a derivative used to hedge changes in cash flows associated with forecasted transactions, the gain or loss on the effective portion of the derivative are deferred and reported as a component of accumulated other comprehensive income, which is a component of shareholders’ equity, until such time the hedged transaction affects earnings. For derivative instruments not accounted for as hedges, changes in fair value are recognized in noninterest income/expense. Counterparty risk with correspondent banks is considered through loan covenant agreements and, as such, does not have a significant impact on the fair value of the swaps. Deferred gains and losses from derivatives not accounted for as hedges and that are terminated are amortized over the shorter of the original remaining term of the derivative or the remaining life of the underlying asset or liability.
Comprehensive Income (Loss)	Comprehensive Income – Comprehensive income is the total of reported earnings for all other revenues, expenses, gains, and losses that are not reported in earnings under GAAP. The Company includes the following items, net of tax, in other comprehensive income in the Consolidated Statements of Comprehensive Income: (i) changes in unrealized gains or losses on securities available-for-sale, (ii) changes in unrealized gains or losses on securities held-to-maturity established upon transfer from securities available-for-sale and (iii) the effective portion of a derivative used to hedge cash flows.
New Accounting Pronouncements	New Accounting Pronouncements: In May 2014, the FASB issued ASU No. 2014-09 "Revenue from Contracts with Customers (Topic 606)." The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU 2014-09 was to be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is assessing the impact of ASU 2014-09 on its accounting and disclosures. In August 2015, the FASB issued ASU 2015-14 “ Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date .” This accounting standards update defers the effective date for an additional year to be effective for annual reporting periods beginning after December 15, 2017.
Mortgage Banking Derivatives
Summary of Significant Accounting Policies
Derivative Financial Instruments	Mortgage Banking Derivatives – As part of ongoing residential mortgage business, the Company enters into mortgage banking derivatives such as forward contracts and interest rate lock commitments. The derivatives and loans held-for-sale are carried at fair value with the changes in fair value recorded in current earnings. The net gain or loss on mortgage banking derivatives is included in gain on sale of loans .
Commercial
Summary of Significant Accounting Policies
Loans	Commercial and Industrial Loans – Such credits typically comprise working capital loans, loans for physical asset expansion, asset acquisition loans and other business loans. Loans to closely held businesses will generally be guaranteed in full or for a meaningful amount by the businesses’ major owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types.
Real estate - commercial
Summary of Significant Accounting Policies
Loans	Commercial Real Estate Loans – Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans. These are loans secured by mortgages on real estate collateral. Commercial real estate loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type.
Real estate - residential
Summary of Significant Accounting Policies
Loans	Residential Real Estate Loans – These are loans that are extended to purchase or refinance 1 – 4 family residential dwellings, or to purchase or refinance vacant lots intended for the construction of a 1 – 4 family home. Residential real estate loans are considered homogenous in nature. Homes may be the primary or secondary residence of the borrower or may be investment properties of the borrower.
Real estate - construction
Summary of Significant Accounting Policies
Loans	Real Estate Construction & Development Loans – The Company defines construction loans as loans where the loan proceeds are controlled by the Company and used exclusively for the improvement of real estate in which the Company holds a mortgage. Due to the inherent risk in this type of loan, they are subject to other industry specific policy guidelines outlined in the Company’s Credit Risk Policy and are monitored closely.
Consumer
Summary of Significant Accounting Policies
Loans	Consumer Loans – Consumer loans include loans extended primarily for consumer and household purposes although they may include very small business loans for the purchase of vehicles and equipment to a single-owner enterprise and could include business purpose lines of credit if made under the terms of a small business product whose features and underwriting criteria are specified in advance by the Loan Committee. These also include overdrafts and other items not captured by the definitions above.

Securities (Tables)

Securities (Tables)	12 Months Ended
	Dec. 31, 2015
Securities
Schedule of amortized cost and fair value of the securities portfolio and corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss	Gross Gross Amortized Unrealized Unrealized Fair December 31, 2015: Cost Gains Losses Value Securities Available-for-Sale U.S. Treasury $ $ - $ - $ U.S. government agencies - U.S. government agencies mortgage-backed - States and political subdivisions Corporate bonds - Collateralized mortgage obligations Asset-backed securities Collateralized loan obligations - Total Securities Available-for-Sale $ $ $ $ Securities Held-to-Maturity U.S. government agency mortgage-backed $ $ $ - $ Collateralized mortgage obligations Total Securities Held-to-Maturity $ $ $ $ Gross Gross Amortized Unrealized Unrealized Fair December 31, 2014: Cost Gains Losses Value Securities Available-for-Sale U.S. Treasury $ $ - $ $ U.S. government agencies - States and political subdivisions Corporate bonds Collateralized mortgage obligations Asset-backed securities Collateralized loan obligations Total Securities Available-for-Sale $ $ $ $ Securities Held-to-Maturity U.S. government agency mortgage-backed $ $ $ - $ Collateralized mortgage obligations Total Securities Held-to-Maturity $ $ $ $
Schedule of fair value, amortized cost and weighted average yield of debt securities by contractual maturity along with securities not due at a single maturity date, primarily mortgage-backed securities (MBS), asset-backed securities, and collateralized loan obligations	Weighted Amortized Average Fair Securities Available-for-Sale Cost Yield Value Due in one year or less $ % $ Due after one year through five years % Due after five years through ten years % Due after ten years % % Mortgage-backed and collateralized mortgage obligations % Asset-backed securities % Collateralized loan obligations % $ % $ Securities Held-to-Maturity Mortgage-backed and collateralized mortgage obligations $ % $
Schedule of amortized cost and fair value of securities that exceed 10% of stockholders equity	Information regarding these three issuers and the value of the securities issued follows: December 31, 2015 Amortized Fair Issuer Cost Value College Loan Corporation $ $ Nelnet Student Loan GCO Education Loan Funding Corp
Schedule of securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position	Less than 12 months Greater than 12 months December 31, 2015 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities Available-for-Sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. government agencies - $ - $ - $ $ $ $ U.S. government agencies mortgage-backed - - - States and political subdivisions Corporate bonds Collateralized mortgage obligations Asset-backed securities Collateralized loan obligations $ $ $ $ $ $ Securities Held-to-Maturity Collateralized mortgage obligations $ $ $ $ $ $ $ $ $ $ $ $ Less than 12 months Greater than 12 months December 31, 2014 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities Available-for-Sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasury $ $ - $ - $ - $ $ U.S. government agencies - - - States and political subdivisions - - - Corporate bonds Collateralized mortgage obligations Asset-backed securities Collateralized loan obligations - - - $ $ $ $ $ $ Securities Held-to-Maturity Collateralized mortgage obligations $ $ $ $ $ $ $ $ $ $ $ $
Schedule of proceeds from sale and gross realized gains and losses on sale of securities	Years ended December 31, 2015 2014 2013 Proceeds from sales of securities $ $ $ Gross realized gains on securities Gross realized losses on securities Securities gains (losses), net $ $ $ Income tax expense (benefit) on net realized gains (losses) $ $ $

Loans (Tables)

Loans (Tables)	12 Months Ended
	Dec. 31, 2015
Loans
Schedule of major classifications of loans	December 31, 2015 December 31, 2014 Commercial $ $ Real estate - commercial Real estate - construction Real estate - residential Consumer Overdraft Lease financing receivables Other Net deferred loan costs $ $
Schedule of aged analysis of past due loans by class of loans	. Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2015 Past Due Past Due Due Due Current Nonaccrual Total Loans Accruing Commercial $ $ - $ - $ $ $ $ $ - Real estate - commercial Owner occupied general purpose - - Owner occupied special purpose - - - Non-owner occupied general purpose - - - - - Non-owner occupied special purpose - - - - - - Retail properties - - - - - - Farm - - - - - Real estate - construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - All other - Real estate - residential Investor - - - Owner occupied - - Revolving and junior liens - - Consumer - - - - All other 1 - - - - - - $ $ $ $ $ $ $ $ Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2014 Past Due Past Due Due Due Current Nonaccrual Total Loans Accruing Commercial $ $ - $ - $ $ $ $ $ - Real estate - commercial Owner occupied general purpose - - - Owner occupied special purpose - - - - - Non-owner occupied general purpose - - - - - Non-owner occupied special purpose - - - - - Retail properties - - - - - - Farm - - - - - - Real estate - construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - - All other - - Real estate - residential Investor - - - - - Owner occupied - - Revolving and junior liens - - Consumer - - - - - - All other 1 - - - - - - $ $ $ - $ $ $ $ $ - 1. The “All other” class includes overdrafts and net deferred loan fees and costs.
Schedule of credit quality indicators by class of loans	December 31, 2015 Special Pass Mention Substandard 1 Doubtful Total Commercial $ $ $ $ - $ Real estate - commercial Owner occupied general purpose - - Owner occupied special purpose - - Non-owner occupied general purpose - Non-owner occupied special purpose - - Retail Properties - Farm - - Real estate - construction Homebuilder - - - Land - - - Commercial speculative - - All other - - - Real estate - residential Investor - - Owner occupied - - Revolving and junior liens - - Consumer - - All other - - - Total $ $ $ $ - $ December 31, 2014 Special Pass Mention Substandard 1 Doubtful Total Commercial $ $ $ $ - $ Real estate - commercial Owner occupied general purpose - Owner occupied special purpose - Non-owner occupied general purpose - Non-owner occupied special purpose - Retail Properties - - Farm - - - Real estate - construction Homebuilder - - - Land - - - Commercial speculative - - All other - - Real estate - residential Investor - - Owner occupied - - Revolving and junior liens - Consumer - - All other - - - Total $ $ $ $ - $ 1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans
Schedule of impaired loans by class of loan	December 31, 2015 December 31, 2014 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial $ $ $ - $ $ $ - Commercial real estate Owner occupied general purpose - - Owner occupied special purpose - - Non-owner occupied general purpose - - Non-owner occupied special purpose - - - - Retail properties - - - - - - Farm - - - - Construction Homebuilder - - - - Land - - - - - - Commercial speculative - - - - All other - - - - Residential Investor - - Owner occupied - - Revolving and junior liens - - Consumer - - - - - - Total impaired loans with no recorded allowance - - With an allowance recorded Commercial - - - Commercial real estate Owner occupied general purpose - - - - - - Owner occupied special purpose - - - - - - Non-owner occupied general purpose - - - Non-owner occupied special purpose - - - - - - Retail properties - - - - - - Farm - - - - - - Construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - - All other - - - Residential Investor - - - Owner occupied Revolving and junior liens - Consumer - - - - - - Total impaired loans with a recorded allowance Total impaired loans $ $ $ $ $ $ Average recorded investment and interest income recognized on impaired loans by class of loan for the years ending December 31 were as follows: Year to date Year to date Year to date December 31, 2015 December 31, 2014 December 31, 2013 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded Commercial $ $ - $ $ - $ $ - Commercial real estate Owner occupied general purpose Owner occupied special purpose - - Non-owner occupied general purpose - Non-owner occupied special purpose - - - Retail properties - - - - Farm - - - - Construction Homebuilder - Land - - - - Commercial speculative - - - All other - - - Residential Investor - Owner occupied Revolving and junior liens Consumer - - - - - Total impaired loans with no recorded allowance With an allowance recorded Commercial - - - - Commercial real estate Owner occupied general purpose - - - - Owner occupied special purpose - - - - Non-owner occupied general purpose - - - Non-owner occupied special purpose - - - - - - Retail properties - - - - - Farm - - - - - - Construction Homebuilder - - - - Land - - - - - - Commercial speculative - - - - All other - - - Residential Investor - - - Owner occupied - - Revolving and junior liens - - Consumer - - - - - - Total impaired loans with a recorded allowance - Total impaired loans $ $ $ $ $ $
Schedule of TDRs modified during the period by type of modification	TDR Modifications Twelve months ended December 31, 2015 # of Pre-modification Post-modification contracts recorded investment recorded investment Troubled debt restructurings Real estate - residential Owner occupied Other 1 $ $ Revolving and junior liens HAMP 3 Other 1 $ $ TDR Modifications Twelve months ended December 31, 2014 # of Pre-modification Post-modification contracts recorded investment recorded investment Troubled debt restructurings Real estate - commercial Other 1 $ $ Bifurcate 2 Real estate - residential Investor Other 1 Owner occupied Other 1 HAMP 3 Deferral 4 Revolving and junior liens Other 1 $ $ 1 Other: Change of terms from bankruptcy court 2 Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note. 3 HAMP: Home Affordable Modification Program 4 Deferral: Refers to the deferral of principal
Schedule of TDRs that subsequently defaulted	TDR Default Activity TDR Default Activity Twelve months ended December 31, 2015 Twelve months ended December 31, 2014 Troubled debt restructurings that # of Pre-modification outstanding # of Pre-modification outstanding Subsequently Defaulted contracts recorded investment contracts recorded investment Real estate - commercial Owner occupied special purpose - $ - - $ - Real estate - residential Investor - - - - Owner occupied - - Revolving and junior liens - - - $ - $
Schedule of loans to principal officers, directors, and their affiliates, made in the ordinary course of business	2015 2014 Beginning balance $ $ New loans Repayments and other reductions Change in related party status Ending balance $ $

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2015
Allowance for Loan Losses
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment	Changes in the allowance for loan losses by segment of loans based on method of impairment for the year ended December 31, 2015 , were as follows: Allowance for loan losses: Real Estate Real Estate Real Estate Commercial Commercial Construction Residential Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ Charge-offs - Recoveries - Provision (Release) Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ $ - $ - $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ Loans: Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ $ $ $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ Changes in the allowance for loan losses by segment of loans based on method of impairment for the year ended December 31, 2014 , were as follows: Allowance for loan losses: Real Estate Real Estate Real Estate Commercial Commercial Construction Residential Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ Charge-offs - Recoveries - (Release) provision Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ - $ $ $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ Loans: Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ $ $ $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ Changes in the allowance for loan losses by segment of loans based on method of impairment for the year ended December 31, 2013 , were as follows: Allowance for loan losses: Real Estate Real Estate Real Estate Commercial Commercial Construction Residential Consumer Unallocated Total Beginning balance $ $ $ $ $ $ $ Charge-offs - Recoveries - (Release) provision Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ - $ $ $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $ Loans: Ending balance $ $ $ $ $ $ $ Ending balance: Individually evaluated for impairment $ $ $ $ $ - $ - $ Ending balance: Collectively evaluated for impairment $ $ $ $ $ $ $

Other Real Estate Owned (Tables

Other Real Estate Owned (Tables)	12 Months Ended
	Dec. 31, 2015
Other Real Estate Owned
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve	Twelve Months Ended December 31, Other real estate owned 2015 2014 2013 Balance at beginning of period $ $ $ Property additions Property improvements - Less: Property disposals, net of gains/losses Period valuation adjustments Balance at end of period $ $ $
Schedule of activity in valuation allowance	2015 2014 2013 Balance at beginning of period $ $ $ Provision for unrealized losses Reductions taken on sales Other adjustments Balance at end of period $ $ $
Schedule of expenses related to foreclosed assets, net of lease revenue	2015 2014 2013 Gain on sales, net $ $ $ Provision for unrealized losses Operating expenses Less: Lease revenue $ $ $

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Premises and Equipment
Schedule of components of premises and equipment	2015 2014 Accumulated Accumulated Depreciation/ Net Book Depreciation/ Net Book Cost Amortization Value Cost Amortization Value Land $ $ - $ $ $ - $ Buildings Leasehold improvements Furniture and equipment $ $ $ $ $ $

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2015
Deposits
Schedule of major classifications of deposits	2015 2014 Noninterest bearing demand $ $ Savings NOW accounts Money market accounts Certificates of deposit of less than $100,000 Certificates of deposit of $100,000 through $250,000 Certificates of deposit of more than $250,000 $ $
Summary of scheduled maturities of time deposits	2016 $ 2017 2018 2019 2020 Total $

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2015
Borrowings
Summary of borrowings and junior subordinated debentures	2015 2014 Securities sold under repurchase agreements $ $ FHLBC advances 1 Junior subordinated debentures Subordinated debt Notes payable and other borrowings $ $
Summary of additional information related to repurchase agreements	2015 2014 2013 Average daily balance during the year $ $ $ Average interest rate during the year % % % Maximum month-end balance during the year $ $ $ Weighted average interest rate at year-end % % %
Summary of scheduled maturities and weighted average rates of borrowings	2015 2014 Weighted Weighted Average Average Balance Rate Balance Rate 2015 N/A N/A $ % 2016 $ % - - 2017 - - - - 2018 % % 2019 - - - - 2020 - - - - Thereafter % % Total $ % $ %

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Schedule of components of income tax expense (benefit)	2015 2014 2013 Current federal $ $ $ Current state - Deferred federal Deferred state Change in valuation allowance - $ $ $
Schedule of components of deferred tax assets and liabilities	2015 2014 Allowance for loan losses $ $ Deferred compensation Amortization of core deposit Goodwill amortization/impairment Stock based compensation OREO write-downs Federal net operating loss (“NOL”) carryforward State net operating loss (“NOL”) carryforward Deferred tax credit Other assets Total deferred tax assets Accumulated depreciation on premises and equipment Mortgage servicing rights State tax benefits Other liabilities Total deferred tax liabilities Net deferred tax asset before adjustments related to other comprehensive loss Tax effect of adjustments related to other comprehensive loss Net deferred tax asset $ $
Schedule of components of provision for deferred income taxes	2015 2014 2013 Provision for loan losses $ $ $ Deferred Compensation Amortization of core deposit Stock based compensation OREO write-downs Federal net operating loss carryforward State net operating loss carryforward Deferred tax credit - Depreciation Net premiums and discounts on securities - Mortgage servicing rights Goodwill amortization/impairment State tax benefits Change in valuation allowance - Other, net Total deferred tax expense $ $ $
Schedule of difference between effective tax rates from federal statutory rates	Effective tax rates differ from federal statutory rates applied to financial statement income (loss) for the years ended December 31 due to the following: 2015 2014 2013 Tax at statutory federal income tax rate $ $ $ Nontaxable interest income, net of disallowed interest deduction BOLI income State income taxes, net of federal benefit Change in valuation allowance - Deficiency from restricted stock - - Impact of Illinois tax rate change - - Other, net Tax at effective tax rate $ $ $

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	12 Months Ended
	Dec. 31, 2015
Equity Compensation Plans
Summary of stock option activity in Incentive Plan	A summary of stock option activity in the Plans for the year ending December 31, 2015 , is as follows: Weighted- Weighted Average Average Remaining Exercise Contractual Aggregate Shares Price Term (years) Intrinsic Value Beginning outstanding $ Canceled Expired Ending outstanding $ $ - Exercisable at end of period $ $ -
Summary of changes in nonvested shares of restricted share rights	December 31, 2015 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Nonvested at January 1 $ Granted Vested Forfeited Nonvested at December 31 $

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Earnings Per Share
Schedule of Earnings Per Share	2015 2014 2013 Basic earnings per share: Weighted-average common shares outstanding Weighted-average common shares less stock based awards Weighted-average common shares stock based awards - Net income $ $ $ Gain on preferred stock redemption - - Preferred stock dividends and accretion, net of dividends waived Net earnings available to common stockholders Basic earnings per share common undistributed earnings N/A Basic earnings per share Diluted earnings per share: Weighted-average common shares outstanding Dilutive effect of nonvested restricted awards 1 Diluted average common shares outstanding Net earnings available to common stockholders $ $ $ Diluted earnings per share $ $ $ Number of antidilutive options and warrants excluded from the diluted earnings per share calculation 1 Includes the common stock equivalents for restricted share rights that are dilutive.

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments
Schedule of contractual commitments due to letters of credit	The following table is a summary of financial instrument commitments (in thousands): December 31, 2015 December 31, 2014 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ $ $ $ $ $ Commercial standby - - Performance standby Non-borrower: Performance standby - - - - Total letters of credit $ $ $ $ $ $ Unused loan commitments: $ $ $ $ $ $

Regulatory & Capital Matters (T

Regulatory & Capital Matters (Tables)	12 Months Ended
	Dec. 31, 2015
Regulatory & Capital Matters
Schedule of capital levels and industry defined regulatory minimum required levels	Minimum Required Minimum Required for Capital to be Well Actual Adequacy Purposes Capitalized 1 Amount Ratio Amount Ratio Amount Ratio 2015 Common equity tier 1 capital to risk weighted assets Consolidated $ % $ % N/A N/A Old Second Bank $ % Total capital to risk weighted assets Consolidated N/A N/A Old Second Bank Tier 1 capital to risk weighted assets Consolidated N/A N/A Old Second Bank Tier 1 capital to average assets Consolidated N/A N/A Old Second Bank 2014 Total capital to risk weighted assets Consolidated $ % $ % N/A N/A Old Second Bank $ % Tier 1 capital to risk weighted assets Consolidated N/A N/A Old Second Bank Tier 1 capital to average assets Consolidated N/A N/A Old Second Bank 1 The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized”.

Mortgage Banking Derivatives (T

Mortgage Banking Derivatives (Tables)	12 Months Ended
	Dec. 31, 2015
Not designated | Mortgage Banking Derivatives
Mortgage Banking Derivatives
Schedule of net gain or loss recorded on derivative activity	These mortgage banking derivatives are not designated in hedge relationships using the accepted accounting for derivative instruments and hedging activities at December 31 (dollars in thousands): 2015 2014 Forward contracts: Notional amount $ $ Fair value Change in fair value Rate lock commitments: Notional amount $ $ Fair value Change in fair value

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis	December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale U.S. Treasury $ $ - $ - $ U.S. government agencies - - U.S. government agencies mortgage-backed - - States and political subdivisions - Corporate Bonds - - Collateralized mortgage obligations - - Asset-backed securities - - Collateralized loan obligations - - Loans held-for-sale - - Mortgage servicing rights - - Other assets (Interest rate swap agreements) - - Other assets (Mortgage banking derivatives) - - Total $ $ $ $ Liabilities: Other liabilities (Interest rate swap agreements) $ - $ $ - $ Total $ - $ $ - $ December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale U.S. Treasury $ $ - $ - $ U.S. government agencies - - States and political subdivisions - Corporate bonds - - Collateralized mortgage obligations - - Asset-backed securities - Collateralized loan obligations - - Loans held-for-sale - - Mortgage servicing rights - - Other assets (Interest rate swap agreements net of swap credit valuation) - - Other assets (Mortgage banking derivatives) - - Total $ $ $ $ Liabilities: Other liabilities (Interest rate swap agreements) $ - $ $ - $ Total $ - $ $ - $
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis	Year ended December 31, 2015 Investment securities available-for-sale States and Mortgage Asset- Political Servicing backed Subdivisions Rights Beginning balance January 1, 2015 $ $ $ Transfers out of Level 3 - - Total gains or losses Included in earnings (or changes in net assets) - Included in other comprehensive income - - Purchases, issuances, sales, and settlements Issuances - - Settlements - Sales - - Ending balance December 31, 2015 $ - $ $ Year ended December 31, 2014 Investment securities available-for-sale States and Mortgage Interest Rate Asset- Political Servicing Swap backed Subdivisions Rights Valuation Beginning balance January 1, 2014 $ $ $ $ Total gains or losses Included in earnings (or changes in net assets) - Included in other comprehensive income - - - Purchases, issuances, sales, and settlements Purchases - - - Issuances - - - Settlements - - - Sales - - - Ending balance December 31, 2014 $ $ $ $ -
Schedule of quantitative information about level 3 fair value measurements	The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of December 31, 2015 : Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage Servicing rights $ Discounted Cash Flow Discount Rate 10.0-15.5% % Prepayment Speed 6.0-35.2% % The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of December 31, 2014 : Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage Servicing rights $ Discounted Cash Flow Discount Rate 9.7-108.2% % Prepayment Speed 5.0-78.4% % Asset-backed securities Discounted Cash Flow Credit Risk Premium 0.9-0.9% % with comparable transaction yields Liquidity Discount 3.5-3.7% %
Schedule of assets and liabilities measured at fair value on a nonrecurring basis	December 31, 2015 Level 1 Level 2 Level 3 Total Impaired loans 1 $ - $ - $ $ Other real estate owned, net 2 - - Total $ - $ - $ $ 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $115,000 , with a valuation allowance of $34,000 , resulting in a decrease of specific allocations within the allowance for loan losses of $243,000 for the year ending December 31, 2015 . 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $19.1 million, which is made up of the outstanding balance of $34.9 million, net of a valuation allowance of $14.1 million and participations of $1.7 million, at December 31, 2015 . December 31, 2014 Level 1 Level 2 Level 3 Total Impaired loans 1 $ - $ - $ $ Other real estate owned, net 2 - - Total $ - $ - $ $ 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $842,000 , with a valuation allowance of $278,000 , resulting in a decrease of specific allocations within the provision for loan losses of $2.1 million for the year ending December 31, 2014 . 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $32.0 million, which is made up of the outstanding balance of $53.0 million, net of a valuation allowance of $19.2 million and participations of $1.8 million, at December 31, 2014 .

Fair Values of Financial Inst45

Fair Values of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Values of Financial Instruments
Schedule of carrying amount and estimated fair values of financial instruments	December 31, 2015 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ $ $ $ - $ - Interest bearing deposits with financial institutions - - Securities available-for-sale Securities held-to-maturity - - FHLBC and Reserve Bank Stock - - Bank-owned life insurance - - Loans held-for-sale - - Loans, net - - Accrued interest receivable - - Financial liabilities: Noninterest bearing deposits $ $ $ $ - $ - Interest bearing deposits - - Securities sold under repurchase agreements - - Other short-term borrowings - - Junior subordinated debentures - Subordinated debenture - - Note payable and other borrowings - - Interest rate swap agreements Borrowing interest payable - - Deposit interest payable - - December 31, 2014 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ $ $ $ - $ - Interest bearing deposits with financial institutions - - Securities available-for-sale Securities held-to-maturity - - FHLBC and Reserve Bank Stock - - Bank-owned life insurance - - Loans held-for-sale - - Loans, net - - Accrued interest receivable - - Financial liabilities: Noninterest bearing deposits $ $ $ $ - $ - Interest bearing deposits - - Securities sold under repurchase agreements - - Other short-term borrowings - - Junior subordinated debentures - Subordinated debenture - - Note payable and other borrowings - - Borrowing interest payable - - Deposit interest payable - -

Financial Instruments with Of46

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Tables)	12 Months Ended
	Dec. 31, 2015
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Summary information about the interest rate swap designated as a cash flow hedge	Summary information about the interest rate swap designated as a cash flow hedge is as follows: As of December 31, 2015 December 31, 2014 Notional amount $ $ - Unrealized loss -
Schedule of derivatives not designated as hedging instruments	Asset Derivatives Liability Derivatives Notional or Contractual Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Interest rate swap contracts $ Other Assets $ Other Liabilities $ Commitments 1 Other Assets N/A - Forward contracts 2 N/A - Other Liabilities - Total $ $ 1 Includes unused loan commitments and interest rate lock commitments. 2 Includes forward MBS contracts and forward loan contracts. The following table presents derivatives not designated as hedging instruments as of December 31, 2014 . Asset Derivatives Liability Derivatives Notional or Contractual Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Interest rate swap contracts net of credit valuation $ Other Assets $ Other Liabilities $ Commitments 1 Other Assets N/A - Forward contracts 2 N/A - Other Liabilities - Total $ $ 1 Includes unused loan commitments and interest rate lock commitments. Includes forward MBS contracts.

Parent Company Condensed Fina47

Parent Company Condensed Financial Information (Tables)	12 Months Ended
	Dec. 31, 2015
Parent Company Condensed Financial Information
Schedule of condensed balance sheets	2015 2014 Assets Noninterest bearing deposit with bank subsidiary $ $ Investment in subsidiaries Other assets $ $ Liabilities and Stockholders’ Equity Junior subordinated debentures $ $ Subordinated debt Other liabilities Stockholders’ equity $ $
Schedule of condensed statements of operations	2015 2014 2013 Operating Income Cash dividends received from subsidiaries $ $ - $ - Other income Operating Expenses Junior subordinated debentures interest expense Subordinated debt interest expense Other interest expense Other expenses Loss before income taxes and equity in undistributed net income of subsidiaries Income tax benefit (Loss) income before equity in undistributed net income of subsidiaries Equity in (over distributed) undistributed net income of subsidiaries Net income Preferred stock dividends and accretion of discount Dividends waived upon preferred stock redemption - - Gain on redemption of preferred stock - - Net income available to common stockholders $ $ $
Schedule of condensed statements of cash Flows	2015 2014 2013 Cash Flows from Operating Activities Net Income $ $ $ Adjustments to reconcile net income (loss) to net cash from operating activities: Equity in over distributed (undistributed) net income of subsidiaries Deferred income taxes Change in taxes payable Change in other assets Gain on recapture of restricted stock - - Stock-based compensation Other, net Net cash used in operating activities Cash Flows from Investing Activities Net cash provided by investing activities - - - Cash Flows from Financing Activities Divided paid - Purchases of treasury stock Proceeds from the issuance of common stock - - Redemption of preferred stock - Net cash provided by (used in) financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year $ $ $

Summary of Significant Accoun48

Summary of Significant Accounting Policies - Securities, Receivables, and Servicing Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
90-Days or Greater Past Due Loans
Period from due date after which accrual of interest income is discontinued	90 days
Allowance for Loan Losses
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	$ 1.3
Transfers and Servicing of Financial Assets
Mortgage loans serviced for others	$ 638.2	$ 604.2

Summary of Significant Accoun49

Summary of Significant Accounting Policies - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2015
Buildings | Minimum
Premises and equipment
Useful lives	25 years
Buildings | Maximum
Premises and equipment
Useful lives	40 years
Building improvements | Minimum
Premises and equipment
Useful lives	3 years
Building improvements | Maximum
Premises and equipment
Useful lives	15 years
Furniture and equipment | Minimum
Premises and equipment
Useful lives	3 years
Furniture and equipment | Maximum
Premises and equipment
Useful lives	10 years

Cash and Due from Banks (Detail

Cash and Due from Banks (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Federal Reserve Bank average regulatory reserve
Other disclosures
Balances	$ 10.7	$ 16
Credit card processing services
Other disclosures
Balances	$ 0	$ 4.4

Securities - Investment Portfol

Securities - Investment Portfolio (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
FHLB and FRB Stock
FHLBC stock	$ 3.7	$ 4.3
FRB stock	$ 4.8	$ 4.8

Securities - Amortized Cost and

Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Securities Available-for-Sale
Amortized Cost	$ 470,719	$ 391,694
Gross Unrealized Gains	383	1,147
Gross Unrealized Losses	(15,036)	(7,355)
Fair Value	456,066	385,486
Securities Held-to-Maturity
Amortized Cost	247,746	259,670
Gross Unrealized Gains	4,894	5,035
Gross Unrealized Losses	(965)	(1,439)
Fair Value	251,675	263,266
Other disclosures
Additions to total securities portfolio	58,700
Securities pledged to secure deposits and for other purposes	340,200	267,800
U.S. Treasury
Securities Available-for-Sale
Amortized Cost	1,509	1,529
Gross Unrealized Losses		(2)
Fair Value	1,509	1,527
U.S. government agencies
Securities Available-for-Sale
Amortized Cost	1,683	1,711
Gross Unrealized Losses	(127)	(87)
Fair Value	1,556	1,624
States and political subdivisions
Securities Available-for-Sale
Amortized Cost	30,341	21,682
Gross Unrealized Gains	285	432
Gross Unrealized Losses	(100)	(96)
Fair Value	30,526	22,018
Corporate bonds
Securities Available-for-Sale
Amortized Cost	30,157	31,243
Gross Unrealized Gains		309
Gross Unrealized Losses	(757)	(567)
Fair Value	29,400	30,985
Collateralized mortgage obligations
Securities Available-for-Sale
Amortized Cost	68,743	65,728
Gross Unrealized Gains	24	31
Gross Unrealized Losses	(1,847)	(2,132)
Fair Value	66,920	63,627
Securities Held-to-Maturity
Amortized Cost	211,241	222,545
Gross Unrealized Gains	3,302	3,005
Gross Unrealized Losses	(965)	(1,439)
Fair Value	213,578	224,111
Asset-backed securities
Securities Available-for-Sale
Amortized Cost	241,872	175,565
Gross Unrealized Gains	74	199
Gross Unrealized Losses	(10,038)	(2,268)
Fair Value	231,908	173,496
Collateralized loan obligations
Securities Available-for-Sale
Amortized Cost	94,374	94,236
Gross Unrealized Gains		176
Gross Unrealized Losses	(2,123)	(2,203)
Fair Value	92,251	92,209
U.S. government agency mortgage-backed
Securities Available-for-Sale
Amortized Cost	2,040
Gross Unrealized Losses	(44)
Fair Value	1,996
Securities Held-to-Maturity
Amortized Cost	36,505	37,125
Gross Unrealized Gains	1,592	2,030
Fair Value	$ 38,097	$ 39,155

Securities - Contractural Matur

Securities - Contractural Maturities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Securities Available-for-Sale, Amortized Cost
Due in one year or less	$ 17,130
Due after one year through five years	6,897
Due after five years through ten years	34,843
Due after ten years	4,820
Debt securities excluding securities not due at a single maturity date	63,690
Total	$ 470,719	$ 391,694
Securities Available-for-Sale, Weighted Average Yield
Due in one year or less (as a percent)	1.74%
Due after one year through five years (as a percent)	2.92%
Due after five years through ten years (as a percent)	2.39%
Due after ten years (as a percent)	3.21%
Debt securities (as a percent)	2.33%
Total (as a percent)	2.03%
Securities Available-for-Sale, Fair Value
Due in one year or less	$ 17,138
Due after one year through five years	6,959
Due after five years through ten years	34,171
Due after ten years	4,723
Debt securities	62,991
Fair Value	456,066	385,486
Securities Held-to-Maturity, Amortized Cost
Amortized Cost	247,746	259,670
Securities Held-to-Maturity, Fair Value
Fair Value	251,675	263,266
Collateralized mortgage obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	70,783
Total	$ 68,743	65,728
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	2.29%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 68,916
Fair Value	66,920	63,627
Securities Held-to-Maturity, Amortized Cost
Amortized Cost	211,241	222,545
Securities Held-to-Maturity, Fair Value
Fair Value	213,578	224,111
Asset-backed securities
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	241,872
Total	$ 241,872	175,565
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	1.47%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 231,908
Fair Value	231,908	173,496
Collateralized loan obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	94,374
Total	$ 94,374	94,236
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	3.06%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 92,251
Fair Value	$ 92,251	$ 92,209
Mortgage-backed and collateralized mortgage obligations
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	2.78%
Securities Held-to-Maturity, Amortized Cost
Amortized Cost	$ 247,746
Securities Held-to-Maturity, Fair Value
Fair Value	$ 251,675

Securities - Asset-backed Secur

Securities - Asset-backed Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Asset-backed securities
Amortized Cost	$ 470,719	$ 391,694
Fair Value	$ 456,066	385,486
Asset-backed securities
Asset-backed securities
Percentage of original principal amount of the loans made under FFEL which is guaranteed by the U.S. Department of Education	97.00%
Amortized Cost	$ 241,872	175,565
Fair Value	231,908	$ 173,496
Credit Concentration Risk | Stockholders' Equity | Access Group | Asset-backed securities
Asset-backed securities
Amortized Cost	73,293
Fair Value	70,254
Credit Concentration Risk | Stockholders' Equity | Northstar Education Finance | Asset-backed securities
Asset-backed securities
Amortized Cost	23,359
Fair Value	23,291
Credit Concentration Risk | Stockholders' Equity | GCO Education Loan Funding Corp | Asset-backed securities
Asset-backed securities
Amortized Cost	37,508
Fair Value	$ 35,263
Minimum | Credit Concentration Risk | Stockholders' Equity | Access Group | Asset-backed securities
Asset-backed securities
Credit risk as a percentage of benchmark	10.00%
Minimum | Credit Concentration Risk | Stockholders' Equity | Northstar Education Finance | Asset-backed securities
Asset-backed securities
Credit risk as a percentage of benchmark	10.00%
Minimum | Credit Concentration Risk | Stockholders' Equity | GCO Education Loan Funding Corp | Asset-backed securities
Asset-backed securities
Credit risk as a percentage of benchmark	10.00%

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)security	Dec. 31, 2014USD ($)security
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	26	35
Greater than 12 months in an unrealized loss position | security	29	8
Total | security	55	43
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 3,215	$ 4,764
Greater than 12 months in an unrealized loss position	11,821	2,591
Total	15,036	7,355
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	142,402	241,626
Greater than 12 months in an unrealized loss position	245,409	68,811
Total	$ 387,811	$ 310,437
Securities Held-to-Maturity, Number of Securities
Less than 12 months in an unrealized loss position | security	8	7
Greater than 12 months in an unrealized loss position | security	2	4
Total | security	10	11
Securities Held-to-Maturity, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 505	$ 457
Greater than 12 months in an unrealized loss position	460	982
Total	965	1,439
Securities Held-to-Maturity, Fair Value
Less than 12 months in an unrealized loss position	40,307	49,302
Greater than 12 months in an unrealized loss position	33,842	46,283
Total	$ 74,149	$ 95,585
U.S. Treasury
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security		1
Total | security		1
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position		$ 2
Total		2
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position		1,527
Total		$ 1,527
U.S. government agencies
Securities Available-for-Sale, Number of Securities
Greater than 12 months in an unrealized loss position | security	1	1
Total | security	1	1
Securities Available-for-Sale, Unrealized Losses
Greater than 12 months in an unrealized loss position	$ 127	$ 87
Total	127	87
Securities Available-for-Sale, Fair Value
Greater than 12 months in an unrealized loss position	1,556	1,624
Total	$ 1,556	$ 1,624
U.S. government agency mortgage-backed
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	1
Total | security	1
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 44
Total	44
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	1,996
Total	$ 1,996
States and political subdivisions
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	2	4
Greater than 12 months in an unrealized loss position | security	1
Total | security	3	4
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 19	$ 96
Greater than 12 months in an unrealized loss position	81
Total	100	96
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	1,541	4,896
Greater than 12 months in an unrealized loss position	1,713
Total	$ 3,254	$ 4,896
Corporate bonds
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	5	4
Greater than 12 months in an unrealized loss position | security	3	1
Total | security	8	5
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 292	$ 486
Greater than 12 months in an unrealized loss position	465	81
Total	757	567
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	14,866	15,246
Greater than 12 months in an unrealized loss position	14,534	1,921
Total	$ 29,400	$ 17,167
Collateralized mortgage obligations
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	4	5
Greater than 12 months in an unrealized loss position | security	7	3
Total | security	11	8
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 334	$ 900
Greater than 12 months in an unrealized loss position	1,513	1,232
Total	1,847	2,132
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	16,218	38,284
Greater than 12 months in an unrealized loss position	43,618	21,604
Total	$ 59,836	$ 59,888
Securities Held-to-Maturity, Number of Securities
Less than 12 months in an unrealized loss position | security	8	7
Greater than 12 months in an unrealized loss position | security	2	4
Total | security	10	11
Securities Held-to-Maturity, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 505	$ 457
Greater than 12 months in an unrealized loss position	460	982
Total	965	1,439
Securities Held-to-Maturity, Fair Value
Less than 12 months in an unrealized loss position	40,307	49,302
Greater than 12 months in an unrealized loss position	33,842	46,283
Total	$ 74,149	$ 95,585
Asset-backed securities
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	9	9
Greater than 12 months in an unrealized loss position | security	8	3
Total | security	17	12
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 2,080	$ 1,077
Greater than 12 months in an unrealized loss position	7,958	1,191
Total	10,038	2,268
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	78,301	99,286
Greater than 12 months in an unrealized loss position	121,217	43,662
Total	$ 199,518	$ 142,948
Collateralized loan obligations
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	5	12
Greater than 12 months in an unrealized loss position | security	9
Total | security	14	12
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 446	$ 2,203
Greater than 12 months in an unrealized loss position	1,677
Total	2,123	2,203
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	29,480	82,387
Greater than 12 months in an unrealized loss position	62,771
Total	$ 92,251	$ 82,387

Securities - Realized Gain (Los

Securities - Realized Gain (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Securities
Proceeds from sales of securities	$ 70,176	$ 296,013	$ 533,302
Gross realized gains on securities	106	3,231	5,376
Gross realized losses on securities	(284)	(1,512)	(7,288)
Securities (losses) gains, net	(178)	1,719	(1,912)
Income tax (expense) benefit on net realized gains (losses)	$ (71)	$ 704	$ (784)

Loans - Major Classifications (

Loans - Major Classifications (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loans
Total loans, gross	$ 1,132,678	$ 1,158,594
Net deferred loan fees	1,037	738
Total Loans	1,133,715	1,159,332	$ 1,101,256
Overdraft
Loans
Total loans, gross	483	649
Lease financing receivables
Loans
Total loans, gross	10,953	8,038
Other
Loans
Total loans, gross	10,130	11,630
Commercial
Loans
Total loans, gross	130,362	119,158
Total Loans	141,315	127,196	104,805
Real estate - commercial
Loans
Total loans, gross	605,721	600,629
Total Loans	605,721	600,629	560,233
Real estate - construction
Loans
Total loans, gross	19,806	44,795
Total Loans	19,806	44,795	29,351
Real estate - residential
Loans
Total loans, gross	351,007	370,191
Total Loans	351,007	370,191	390,201
Consumer
Loans
Total loans, gross	4,216	3,504
Total Loans	$ 4,216	$ 3,504	$ 2,760

Loans - Major Classifications -

Loans - Major Classifications - Loan Concentrations (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Total real estate
Loans
Loans receivable as a percentage of total portfolio	86.10%	87.60%

Loans - Aging Analysis (Details

Loans - Aging Analysis (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Aged analysis of past due loans
30-59 Days Past Due	$ 2,942	$ 1,978
60-89 Days Past Due	710	987
90 Days or Greater Past Due	65
Total Past Due	3,717	2,965
Current	1,115,609	1,129,441
Nonaccrual	14,389	26,926
Total Loans	1,133,715	1,159,332	$ 1,101,256
Recorded Investment 90 days or Greater Past Due and Accruing	65
Commercial
Aged analysis of past due loans
30-59 Days Past Due	394	38
Total Past Due	394	38
Current	140,848	125,658
Nonaccrual	73	1,500
Total Loans	141,315	127,196	104,805
Real estate - commercial
Aged analysis of past due loans
Total Loans	605,721	600,629	560,233
Real estate - commercial | Owner occupied general purpose
Aged analysis of past due loans
30-59 Days Past Due	652	699
60-89 Days Past Due	119
Total Past Due	771	699
Current	123,479	126,029
Nonaccrual	1,254	5,937
Total Loans	125,504	132,665
Real estate - commercial | Owner occupied special purpose
Aged analysis of past due loans
30-59 Days Past Due	358
Total Past Due	358
Current	170,827	167,874
Nonaccrual	763	1,441
Total Loans	171,948	169,315
Real estate - commercial | Non-owner occupied general purpose
Aged analysis of past due loans
Current	166,668	153,328
Nonaccrual	975	4,907
Total Loans	167,643	158,235
Real estate - commercial | Non-owner occupied special purpose
Aged analysis of past due loans
Current	92,387	87,054
Nonaccrual		1,423
Total Loans	92,387	88,477
Real estate - commercial | Retail properties
Aged analysis of past due loans
Current	34,352	37,780
Total Loans	34,352	37,780
Real estate - commercial | Farm
Aged analysis of past due loans
Current	12,615	14,157
Nonaccrual	1,272
Total Loans	13,887	14,157
Real estate - construction
Aged analysis of past due loans
Total Loans	19,806	44,795	29,351
Real estate - construction | Homebuilder
Aged analysis of past due loans
Current	2,604	3,204
Total Loans	2,604	3,204
Real estate - construction | Land
Aged analysis of past due loans
Current	1,137	1,658
Total Loans	1,137	1,658
Real estate - construction | Commercial speculative
Aged analysis of past due loans
Current	2,117	13,431
Nonaccrual	83
Total Loans	2,200	13,431
Real estate - construction | All other
Aged analysis of past due loans
30-59 Days Past Due	6	71
60-89 Days Past Due	77	29
90 Days or Greater Past Due	65
Total Past Due	148	100
Current	13,717	25,841
Nonaccrual		561
Total Loans	13,865	26,502
Recorded Investment 90 days or Greater Past Due and Accruing	65
Real estate - residential
Aged analysis of past due loans
Total Loans	351,007	370,191	390,201
Real estate - residential | Investor
Aged analysis of past due loans
30-59 Days Past Due	101
Total Past Due	101
Current	125,611	135,273
Nonaccrual	972	1,942
Total Loans	126,684	137,215
Real estate - residential | Owner occupied
Aged analysis of past due loans
30-59 Days Past Due	1,083	1,076
60-89 Days Past Due	446	914
Total Past Due	1,529	1,990
Current	110,885	107,727
Nonaccrual	6,378	6,711
Total Loans	118,792	116,428
Real estate - residential | Revolving and junior liens
Aged analysis of past due loans
30-59 Days Past Due	344	94
60-89 Days Past Due	68	44
Total Past Due	412	138
Current	102,500	113,906
Nonaccrual	2,619	2,504
Total Loans	105,531	116,548
Consumer
Aged analysis of past due loans
30-59 Days Past Due	4
Total Past Due	4
Current	4,212	3,504
Total Loans	4,216	3,504	2,760
All other
Aged analysis of past due loans
Current	11,650	13,017
Total Loans	$ 11,650	$ 13,017	$ 13,906

Loans - Inclusion (Details)

Loans - Inclusion (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Minimum
Loans by risk rating
Loan commitment for inclusion in credit quality analysis	$ 50,000

Loans - Credit Quality (Details

Loans - Credit Quality (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loans by risk rating
Total Loans	$ 1,133,715	$ 1,159,332	$ 1,101,256
Commercial
Loans by risk rating
Total Loans	141,315	127,196	104,805
Real estate - commercial
Loans by risk rating
Total Loans	605,721	600,629	560,233
Real estate - commercial | Owner occupied general purpose
Loans by risk rating
Total Loans	125,504	132,665
Real estate - commercial | Owner occupied special purpose
Loans by risk rating
Total Loans	171,948	169,315
Real estate - commercial | Non-owner occupied general purpose
Loans by risk rating
Total Loans	167,643	158,235
Real estate - commercial | Non-owner occupied special purpose
Loans by risk rating
Total Loans	92,387	88,477
Real estate - commercial | Retail properties
Loans by risk rating
Total Loans	34,352	37,780
Real estate - commercial | Farm
Loans by risk rating
Total Loans	13,887	14,157
Real estate - construction
Loans by risk rating
Total Loans	19,806	44,795	29,351
Real estate - construction | Homebuilder
Loans by risk rating
Total Loans	2,604	3,204
Real estate - construction | Land
Loans by risk rating
Total Loans	1,137	1,658
Real estate - construction | Commercial speculative
Loans by risk rating
Total Loans	2,200	13,431
Real estate - construction | All other
Loans by risk rating
Total Loans	13,865	26,502
Real estate - residential
Loans by risk rating
Total Loans	351,007	370,191	390,201
Real estate - residential | Investor
Loans by risk rating
Total Loans	126,684	137,215
Real estate - residential | Owner occupied
Loans by risk rating
Total Loans	118,792	116,428
Real estate - residential | Revolving and junior liens
Loans by risk rating
Total Loans	105,531	116,548
Consumer
Loans by risk rating
Total Loans	4,216	3,504	2,760
All other
Loans by risk rating
Total Loans	11,650	13,017	$ 13,906
Pass
Loans by risk rating
Total Loans	1,101,886	1,090,065
Pass | Commercial
Loans by risk rating
Total Loans	136,078	118,845
Pass | Real estate - commercial | Owner occupied general purpose
Loans by risk rating
Total Loans	123,827	124,936
Pass | Real estate - commercial | Owner occupied special purpose
Loans by risk rating
Total Loans	171,185	154,225
Pass | Real estate - commercial | Non-owner occupied general purpose
Loans by risk rating
Total Loans	163,956	148,212
Pass | Real estate - commercial | Non-owner occupied special purpose
Loans by risk rating
Total Loans	88,468	78,957
Pass | Real estate - commercial | Retail properties
Loans by risk rating
Total Loans	30,432	36,779
Pass | Real estate - commercial | Farm
Loans by risk rating
Total Loans	12,615	14,157
Pass | Real estate - construction | Homebuilder
Loans by risk rating
Total Loans	2,604	3,204
Pass | Real estate - construction | Land
Loans by risk rating
Total Loans	1,137	1,658
Pass | Real estate - construction | Commercial speculative
Loans by risk rating
Total Loans	2,117	9,947
Pass | Real estate - construction | All other
Loans by risk rating
Total Loans	13,865	25,941
Pass | Real estate - residential | Investor
Loans by risk rating
Total Loans	125,548	134,952
Pass | Real estate - residential | Owner occupied
Loans by risk rating
Total Loans	111,713	109,085
Pass | Real estate - residential | Revolving and junior liens
Loans by risk rating
Total Loans	102,476	112,647
Pass | Consumer
Loans by risk rating
Total Loans	4,215	3,503
Pass | All other
Loans by risk rating
Total Loans	11,650	13,017
Special Mention
Loans by risk rating
Total Loans	6,606	28,329
Special Mention | Commercial
Loans by risk rating
Total Loans	3,208	3,948
Special Mention | Real estate - commercial | Owner occupied general purpose
Loans by risk rating
Total Loans		253
Special Mention | Real estate - commercial | Owner occupied special purpose
Loans by risk rating
Total Loans		11,607
Special Mention | Real estate - commercial | Non-owner occupied general purpose
Loans by risk rating
Total Loans	1,908	3,235
Special Mention | Real estate - commercial | Non-owner occupied special purpose
Loans by risk rating
Total Loans		8,097
Special Mention | Real estate - commercial | Retail properties
Loans by risk rating
Total Loans	1,490	1,001
Special Mention | Real estate - residential | Revolving and junior liens
Loans by risk rating
Total Loans		188
Substandard
Loans by risk rating
Total Loans	25,223	40,938
Substandard | Commercial
Loans by risk rating
Total Loans	2,029	4,403
Substandard | Real estate - commercial | Owner occupied general purpose
Loans by risk rating
Total Loans	1,677	7,476
Substandard | Real estate - commercial | Owner occupied special purpose
Loans by risk rating
Total Loans	763	3,483
Substandard | Real estate - commercial | Non-owner occupied general purpose
Loans by risk rating
Total Loans	1,779	6,788
Substandard | Real estate - commercial | Non-owner occupied special purpose
Loans by risk rating
Total Loans	3,919	1,423
Substandard | Real estate - commercial | Retail properties
Loans by risk rating
Total Loans	2,430
Substandard | Real estate - commercial | Farm
Loans by risk rating
Total Loans	1,272
Substandard | Real estate - construction | Commercial speculative
Loans by risk rating
Total Loans	83	3,484
Substandard | Real estate - construction | All other
Loans by risk rating
Total Loans		561
Substandard | Real estate - residential | Investor
Loans by risk rating
Total Loans	1,136	2,263
Substandard | Real estate - residential | Owner occupied
Loans by risk rating
Total Loans	7,079	7,343
Substandard | Real estate - residential | Revolving and junior liens
Loans by risk rating
Total Loans	3,055	3,713
Substandard | Consumer
Loans by risk rating
Total Loans	$ 1	$ 1

Loans - Impaired Loans - Record

Loans - Impaired Loans - Recorded Investment, Unpaid Principal Balance and Related Allowance (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Recorded Investment
With no related allowance recorded	$ 20,725	$ 35,011
With an allowance recorded	161	875
Total impaired loans	20,886	35,886
Unpaid Principal Balance
With no related allowance recorded	24,718	41,003
With an allowance recorded	166	997
Total impaired loans	24,884	42,000
Related Allowance
With an allowance recorded	34	278
Commercial
Recorded Investment
With no related allowance recorded	70	1,500
With an allowance recorded	3
Unpaid Principal Balance
With no related allowance recorded	149	2,114
With an allowance recorded	8
Related Allowance
With an allowance recorded	3
Real estate - commercial | Owner occupied general purpose
Recorded Investment
With no related allowance recorded	2,314	7,125
Unpaid Principal Balance
With no related allowance recorded	3,004	7,870
Real estate - commercial | Owner occupied special purpose
Recorded Investment
With no related allowance recorded	763	1,798
Unpaid Principal Balance
With no related allowance recorded	871	1,941
Real estate - commercial | Non-owner occupied general purpose
Recorded Investment
With no related allowance recorded	1,047	4,831
With an allowance recorded		76
Unpaid Principal Balance
With no related allowance recorded	1,065	5,653
With an allowance recorded		76
Related Allowance
With an allowance recorded		21
Real estate - commercial | Non-owner occupied special purpose
Recorded Investment
With no related allowance recorded		1,423
Unpaid Principal Balance
With no related allowance recorded		1,930
Real estate - commercial | Farm
Recorded Investment
With no related allowance recorded	1,272
Unpaid Principal Balance
With no related allowance recorded	1,338
Real estate - construction | Homebuilder
Recorded Investment
With no related allowance recorded		1,791
Unpaid Principal Balance
With no related allowance recorded		1,791
Real estate - construction | Commercial speculative
Recorded Investment
With no related allowance recorded	83
Unpaid Principal Balance
With no related allowance recorded	86
Real estate - construction | All other
Recorded Investment
With no related allowance recorded		291
With an allowance recorded		270
Unpaid Principal Balance
With no related allowance recorded		323
With an allowance recorded		306
Related Allowance
With an allowance recorded		98
Real estate - residential | Investor
Recorded Investment
With no related allowance recorded	1,906	2,595
With an allowance recorded		135
Unpaid Principal Balance
With no related allowance recorded	2,259	3,024
With an allowance recorded		145
Related Allowance
With an allowance recorded		24
Real estate - residential | Owner occupied
Recorded Investment
With no related allowance recorded	10,539	11,419
With an allowance recorded	112	23
Unpaid Principal Balance
With no related allowance recorded	11,999	12,816
With an allowance recorded	112	65
Related Allowance
With an allowance recorded	31	38
Real estate - residential | Revolving and junior liens
Recorded Investment
With no related allowance recorded	2,731	2,238
With an allowance recorded	46	371
Unpaid Principal Balance
With no related allowance recorded	3,947	3,541
With an allowance recorded	$ 46	405
Related Allowance
With an allowance recorded		$ 97

Loans - Impaired Loans - Averag

Loans - Impaired Loans - Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Average Recorded Investment
With no related allowance recorded	$ 27,868	$ 35,043	$ 47,877
With an allowance recorded	518	6,185	19,901
Total impaired loans	28,386	41,228	67,778
Interest Income Recognized
With no related allowance recorded	303	467	390
With an allowance recorded	3	1
Total impaired loans	306	468	390
Commercial
Average Recorded Investment
With no related allowance recorded	785	764	112
With an allowance recorded	2		283
Real estate - commercial | Owner occupied general purpose
Average Recorded Investment
With no related allowance recorded	4,720	4,834	3,508
With an allowance recorded		365	872
Interest Income Recognized
With no related allowance recorded	82	104	3
Real estate - commercial | Owner occupied special purpose
Average Recorded Investment
With no related allowance recorded	1,280	2,584	5,275
With an allowance recorded		2,150	4,277
Interest Income Recognized
With no related allowance recorded		45
Real estate - commercial | Non-owner occupied general purpose
Average Recorded Investment
With no related allowance recorded	2,939	5,130	9,892
With an allowance recorded	38	508	1,859
Interest Income Recognized
With no related allowance recorded	3		75
Real estate - commercial | Non-owner occupied special purpose
Average Recorded Investment
With no related allowance recorded	712	1,042	569
Real estate - commercial | Retail properties
Average Recorded Investment
With no related allowance recorded		1,572	5,962
With an allowance recorded			876
Real estate - commercial | Farm
Average Recorded Investment
With no related allowance recorded	636		1,259
Real estate - construction | Homebuilder
Average Recorded Investment
With no related allowance recorded	895	1,903	3,085
With an allowance recorded		84	97
Interest Income Recognized
With no related allowance recorded		82	97
Real estate - construction | Land
Average Recorded Investment
With no related allowance recorded		105	232
Real estate - construction | Commercial speculative
Average Recorded Investment
With no related allowance recorded	42	369	1,501
With an allowance recorded		587	2,748
Real estate - construction | All other
Average Recorded Investment
With no related allowance recorded	145	147	41
With an allowance recorded	135	353	458
Real estate - residential | Investor
Average Recorded Investment
With no related allowance recorded	2,251	4,290	5,576
With an allowance recorded	67	410	2,713
Interest Income Recognized
With no related allowance recorded	51	43
Real estate - residential | Owner occupied
Average Recorded Investment
With no related allowance recorded	10,979	10,299	9,284
With an allowance recorded	68	794	3,737
Interest Income Recognized
With no related allowance recorded	160	187	209
With an allowance recorded		1
Real estate - residential | Revolving and junior liens
Average Recorded Investment
With no related allowance recorded	2,484	2,004	1,570
With an allowance recorded	208	934	1,981
Interest Income Recognized
With no related allowance recorded	7	$ 6	6
With an allowance recorded	$ 3
Consumer
Average Recorded Investment
With no related allowance recorded			$ 11

Loans - TDR (Details)

Loans - TDR (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)contract	Dec. 31, 2014USD ($)contract
Troubled debt restructurings - modified during the period
# of contracts | contract	10	15
Pre-modification recorded investment	$ 827	$ 3,305
Post-modification recorded investment	755	$ 2,593
TDR's defaulted
# of contracts | contract		3
Pre-modification outstanding recorded investment during the period		$ 347
Other information
Commitments to lend to borrowers whose loans were classified as impaired	$ 0
Real estate - commercial | Other
Troubled debt restructurings - modified during the period
# of contracts | contract		2
Pre-modification recorded investment		$ 1,320
Post-modification recorded investment		$ 1,106
Real estate - commercial | Bifurcate
Troubled debt restructurings - modified during the period
# of contracts | contract		1
Pre-modification recorded investment		$ 675
Post-modification recorded investment		$ 357
Real estate - residential | Investor | Other
Troubled debt restructurings - modified during the period
# of contracts | contract		2
Pre-modification recorded investment		$ 237
Post-modification recorded investment		$ 221
Real estate - residential | Owner occupied
TDR's defaulted
# of contracts | contract		1
Pre-modification outstanding recorded investment during the period		$ 137
Real estate - residential | Owner occupied | Other
Troubled debt restructurings - modified during the period
# of contracts | contract	2	1
Pre-modification recorded investment	$ 256	$ 136
Post-modification recorded investment	$ 255	$ 133
Real estate - residential | Owner occupied | HAMP
Troubled debt restructurings - modified during the period
# of contracts | contract		2
Pre-modification recorded investment		$ 250
Post-modification recorded investment		$ 218
Real estate - residential | Owner occupied | Deferral
Troubled debt restructurings - modified during the period
# of contracts | contract		2
Pre-modification recorded investment		$ 344
Post-modification recorded investment		$ 224
Real estate - residential | Revolving and junior liens
TDR's defaulted
# of contracts | contract		2
Pre-modification outstanding recorded investment during the period		$ 210
Real estate - residential | Revolving and junior liens | Other
Troubled debt restructurings - modified during the period
# of contracts | contract	3	5
Pre-modification recorded investment	$ 378	$ 343
Post-modification recorded investment	$ 347	$ 334
Real estate - residential | Revolving and junior liens | HAMP
Troubled debt restructurings - modified during the period
# of contracts | contract	5
Pre-modification recorded investment	$ 193
Post-modification recorded investment	$ 153

Loans - Related Parties (Detail

Loans - Related Parties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Loans to principal officers, directors, and their affiliates
Beginning balance	$ 7,793	$ 6,414
New loans	864	41,810
Repayments and other reductions	(635)	(38,295)
Change in related party status	(6,235)	(2,136)
Ending balance	1,787	7,793
Loans greater than 90 days past due	65
Principal Officers, Directors, and Affiliates
Loans to principal officers, directors, and their affiliates
Loans greater than 90 days past due	$ 0	$ 0

Allowance for Loan Losses (Deta

Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Changes in the allowance for loan losses by segment of loans based on method of impairment
Estimated impact of this methodology change in the required reserve	$ 1,300
Allowance for loan losses:
Beginning Balance	21,637	$ 27,281	$ 38,597
Charge-offs	4,770	6,643	11,205
Recoveries	3,756	4,299	8,439
(Release) provision	(4,400)	(3,300)	(8,550)
Ending Balance	16,223	21,637	27,281
Ending balance: Individually evaluated for impairment	34	278	2,395
Ending balance: Collectively evaluated for impairment	16,189	21,359	24,886
Loans:
Ending balance	1,133,715	1,159,332	1,101,256
Ending balance: Individually evaluated for impairment	20,886	35,886	46,570
Ending balance: Collectively evaluated for impairment	1,112,829	1,123,446	1,054,686
Commercial
Allowance for loan losses:
Beginning Balance	1,644	2,250	4,517
Charge-offs	993	578	316
Recoveries	451	58	119
(Release) provision	994	(86)	(2,070)
Ending Balance	2,096	1,644	2,250
Ending balance: Individually evaluated for impairment	3
Ending balance: Collectively evaluated for impairment	2,093	1,644	2,250
Loans:
Ending balance	141,315	127,196	104,805
Ending balance: Individually evaluated for impairment	73	1,500	27
Ending balance: Collectively evaluated for impairment	141,242	125,696	104,778
Real estate - commercial
Allowance for loan losses:
Beginning Balance	12,577	16,763	20,100
Charge-offs	1,653	1,972	2,985
Recoveries	1,595	1,346	5,325
(Release) provision	(3,506)	(3,560)	(5,677)
Ending Balance	9,013	12,577	16,763
Ending balance: Individually evaluated for impairment		21	1,152
Ending balance: Collectively evaluated for impairment	9,013	12,556	15,611
Loans:
Ending balance	605,721	600,629	560,233
Ending balance: Individually evaluated for impairment	5,396	15,253	21,116
Ending balance: Collectively evaluated for impairment	600,325	585,376	539,117
Real estate - construction
Allowance for loan losses:
Beginning Balance	1,475	1,980	3,837
Charge-offs	2	174	1,014
Recoveries	276	633	1,266
(Release) provision	(1,484)	(964)	(2,109)
Ending Balance	265	1,475	1,980
Ending balance: Individually evaluated for impairment		98	355
Ending balance: Collectively evaluated for impairment	265	1,377	1,625
Loans:
Ending balance	19,806	44,795	29,351
Ending balance: Individually evaluated for impairment	83	2,352	4,746
Ending balance: Collectively evaluated for impairment	19,723	42,443	24,605
Real estate - residential
Allowance for loan losses:
Beginning Balance	1,981	2,837	4,535
Charge-offs	1,639	3,393	6,293
Recoveries	1,075	1,842	1,221
(Release) provision	277	695	3,374
Ending Balance	1,694	1,981	2,837
Ending balance: Individually evaluated for impairment	31	159	888
Ending balance: Collectively evaluated for impairment	1,663	1,822	1,949
Loans:
Ending balance	351,007	370,191	390,201
Ending balance: Individually evaluated for impairment	15,334	16,781	20,681
Ending balance: Collectively evaluated for impairment	335,673	353,410	369,520
Consumer
Allowance for loan losses:
Beginning Balance	1,454	1,439	1,178
Charge-offs	483	526	597
Recoveries	359	420	508
(Release) provision	(140)	121	350
Ending Balance	1,190	1,454	1,439
Ending balance: Collectively evaluated for impairment	1,190	1,454	1,439
Loans:
Ending balance	4,216	3,504	2,760
Ending balance: Collectively evaluated for impairment	4,216	3,504	2,760
All other
Allowance for loan losses:
Beginning Balance	2,506	2,012	4,430
(Release) provision	(541)	494	(2,418)
Ending Balance	1,965	2,506	2,012
Ending balance: Collectively evaluated for impairment	1,965	2,506	2,012
Loans:
Ending balance	11,650	13,017	13,906
Ending balance: Collectively evaluated for impairment	$ 11,650	$ 13,017	$ 13,906

Other Real Estate Owned (Detail

Other Real Estate Owned (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve
Balance at beginning of period	$ 31,982	$ 41,537	$ 72,423
Property additions	8,998	16,078	19,194
Property improvements		794	73
Less: Property disposals, net of gains/losses	17,763	21,868	41,712
Less: Period valuation adjustments	4,076	4,559	8,441
Balance at end of period	19,141	31,982	41,537
Activity in the valuation allowance
Balance at beginning of period	19,229	22,284	31,454
Provision for unrealized losses	4,076	4,559	8,293
Reductions taken on sales	(9,271)	(7,025)	(17,389)
Other adjustments	93	(589)	(74)
Balance at end of period	14,127	19,229	22,284
Expenses related to foreclosed assets, net of lease revenue
Gain on sales, net	(1,073)	(989)	(1,956)
Provision for unrealized losses	4,076	4,559	8,293
Operating expenses	2,888	4,173	5,705
Less: Lease revenue	700	826	1,295
Expenses related to OREO, net of lease revenue	$ 5,191	$ 6,917	$ 10,747

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Premises and equipment
Cost	$ 100,430	$ 101,607
Accumulated Depreciation/Amortization	60,818	59,272
Net Book Value	39,612	42,335
Land
Premises and equipment
Cost	16,318	16,693
Net Book Value	16,318	16,693
Buildings
Premises and equipment
Cost	42,627	44,246
Accumulated Depreciation/Amortization	22,240	21,540
Net Book Value	20,387	22,706
Leasehold improvements
Premises and equipment
Cost	74	74
Accumulated Depreciation/Amortization	73	73
Net Book Value	1	1
Furniture and equipment
Premises and equipment
Cost	41,411	40,594
Accumulated Depreciation/Amortization	38,505	37,659
Net Book Value	$ 2,906	$ 2,935

Deposits - Components and Matur

Deposits - Components and Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deposits
Noninterest bearing demand	$ 442,639	$ 400,447
Savings	252,169	239,845
NOW accounts	376,720	328,641
Money market accounts	279,709	296,617
Certificates of deposit of less than $100,000	235,336	251,108
Certificates of deposit of $100,000 up to $250,000	109,855	112,515
Certificates of deposit of $250,000 or more	62,658	55,882
Total deposits	$ 1,759,086	$ 1,685,055

Deposits - Scheduled maturities

Deposits - Scheduled maturities (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Brokered certificates
Brokered certificates of deposit	$ 3,900,000	$ 255,000
Deposits held by senior officers and directors, including their related interests	1,600,000	15,100,000
Time Deposit Maturities
2,016	155,633,000
2,017	116,127,000
2,018	62,131,000
2,019	24,603,000
2,020	49,355,000
Total	$ 407,849,000	$ 419,505,000

Borrowings - Summary (Details)

Borrowings - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Borrowings
Total borrowings	$ 152,948	$ 169,914
Securities sold under repurchase agreements
Borrowings
Total borrowings	34,070	21,036
FHLBC advances
Borrowings
Total borrowings	15,000	45,000
Junior subordinated debentures
Borrowings
Total borrowings	58,378	58,378
Subordinated debt
Borrowings
Total borrowings	45,000	45,000
Notes payable and other borrowings
Borrowings
Total borrowings	$ 500	$ 500

Borrowings - Additional informa

Borrowings - Additional information (Details)	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Borrowings
Bank owned FHLBC stock	$ 3,700,000	$ 4,300,000
Total borrowings	152,948,000	169,914,000
Securities sold under repurchase agreements
Borrowings
Carrying amount of securities secured	34,100,000	21,000,000
Fair value of the pledged collateral	$ 45,400,000	43,400,000
Number of customers having secured balances exceeding specified percentage of stockholders equity | item	0
Total borrowings	$ 34,070,000	21,036,000
Additional information related to repurchase agreements
Average daily balance during the year	$ 28,194,000	$ 26,093,000	$ 23,313,000
Average interest rate during the year (as a percent)	0.01%	0.01%	0.01%
Maximum month-end balance during the year	$ 34,785,000	$ 38,133,000	$ 30,510,000
Weighted average interest rate at year-end (as a percent)	0.01%	0.01%	0.01%
Securities sold under repurchase agreements | Minimum
Borrowings
Maturity	1 day
Securities sold under repurchase agreements | Maximum
Borrowings
Maturity	90 days
FHLBC advances
Borrowings
Borrowings at FHLBC as percentage of total assets	35.00%
Borrowings at FHLBC as percentage of book value of certain mortgage loans	60.00%
Debt Instrument, Interest Rate, Stated Percentage	0.16%
Bank owned FHLBC stock	$ 3,700,000
Fair value of securities collateralized	98,800,000
Principal balance of loans collateralized	169,700,000
Combined collateral value	190,700,000
Amount available for additional borrowings	174,400,000
Total borrowings	15,000,000	$ 45,000,000
Subordinated debt
Borrowings
Face amount	45,000,000
Total borrowings	$ 45,000,000	45,000,000
Subordinated debt | LIBOR
Borrowings
Variable interest rate base	three-month LIBOR
Basis points added to reference rate (as a percent)	1.50%
Notes payable and other borrowings
Borrowings
Total borrowings	$ 500,000	500,000
Correspondent Bank
Borrowings
Maximum borrowing capacity	$ 45,500,000
Senior debt facility | LIBOR
Borrowings
Basis points added to reference rate (as a percent)	0.90%
Senior debt facility | Prime rate
Borrowings
Variable interest rate base	prime
Term debt
Borrowings
Maximum borrowing capacity	$ 500,000
Basis points added to reference rate (as a percent)	2.00%
Total borrowings	$ 500,000
Junior subordinated debentures
Borrowings
Total borrowings	$ 58,378,000	$ 58,378,000

Borrowings - Maturities and Wei

Borrowings - Maturities and Weighted Average Rates (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Scheduled maturities and weighted average rates of borrowings
Year one	$ 49,070	$ 66,036
Year three	45,500	45,500
Thereafter	58,378	58,378
Total	$ 152,948	$ 169,914
Weighted Average Rate
Year one (as a percent)	0.06%	0.09%
Year three (as a percent)	1.82%	1.75%
Thereafter (as a percent)	7.35%	7.35%
Total (as a percent)	3.37%	3.03%

Junior Subordinated Debentures

Junior Subordinated Debentures - Issuance (Details) - USD ($) $ in Thousands	1 Months Ended			12 Months Ended
	Apr. 30, 2007	Jul. 31, 2003	Jun. 30, 2003	Dec. 31, 2015	Dec. 31, 2014
Junior subordinated debentures
Junior subordinated debentures				$ 58,378	$ 58,378
Old Second Capital Trust I
Junior subordinated debentures
Proceeds from sale of cumulative trust preferred securities		$ 4,100	$ 27,500
Maturity Period				30 years
Cash distribution rate of trust preferred securities (as a percent)				7.80%
Amortization period				30 years
Old Second Capital Trust II
Junior subordinated debentures
Proceeds from sale of cumulative trust preferred securities	$ 25,000
Maturity Period				30 years
Cash distribution fixed rate of trust preferred securities (as a percent)				6.77%
Basis points added to cash distribution floating rate base (as a percent)				1.50%
Cash distribution, floating rate base				three-month LIBOR
Junior subordinated debentures | Old Second Capital Trust I
Junior subordinated debentures
Junior subordinated debentures				$ 32,600
Junior subordinated debentures | Old Second Capital Trust II
Junior subordinated debentures
Junior subordinated debentures				$ 25,800

Junior Subordinated Debenture75

Junior Subordinated Debentures - Payments and other disclosures (Details) $ in Millions	Apr. 21, 2014USD ($)	Dec. 31, 2015item
Junior subordinated debentures
Payments to indentured trustees | $	$ 19.7
Junior subordinated debentures
Junior subordinated debentures
Period of interest payments that may be deferred (in quarters) | item		20

Income Taxes - Components (Deta

Income Taxes - Components (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components of income tax expense (benefit)
Current federal	$ 220	$ 122	$ 105
Current state		6	29
Deferred federal	7,023	3,120	2,780
Deferred state	1,733	4,876	989
Change in valuation allowance		(2,363)	(74,145)
Provision for income taxes	8,976	5,761	$ (70,242)
Deferred tax assets
Allowance for loan losses	7,099	9,579
Deferred compensation	690	787
Amortization of core deposit	1,629	1,859
Goodwill amortization/impairment	11,623	13,129
Stock option expense	814	663
OREO write downs	6,917	8,639
Federal net operating loss ("NOL") carryforward	24,105	27,001
State net operating loss ("NOL") carryforward	8,746	9,405
Deferred tax credit	1,749	1,551
Other assets	792	1,006
Total deferred tax assets	64,164	73,619
Deferred tax liabilities
Accumulated depreciation on premises and equipment	(601)	(802)
Mortgage servicing rights	(2,484)	(2,320)
State tax benefits	(4,686)	(5,290)
Other liabilities	(336)	(394)
Total deferred tax liabilities	(8,107)	(8,806)
Net deferred tax asset before valuation allowance	56,057	64,813
Tax effect of adjustments related to other comprehensive loss	8,495	5,328
Net deferred tax asset	$ 64,552	$ 70,141

Income Taxes - Carryforwards (D

Income Taxes - Carryforwards (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Components of deferred tax assets and liabilities
Deferred Tax assets related to net unrealized losses on held-to-maturity securities transferred from available-for-sale securities	$ 2.4	$ 2.8
Alternative minimum tax credit
Net operating loss carryforward
Alternative minimum tax credit that can be carried forward	1.7
Federal
Net operating loss carryforward
Net operating loss carryforward	68.9
Federal | 2030
Net operating loss carryforward
Net operating loss carryforward	13.6
Federal | 2031
Net operating loss carryforward
Net operating loss carryforward	31.4
Federal | 2032
Net operating loss carryforward
Net operating loss carryforward	8.6
Federal | 2033
Net operating loss carryforward
Net operating loss carryforward	15.3
State
Net operating loss carryforward
Net operating loss carryforward	112.9
State | 2021
Net operating loss carryforward
Net operating loss carryforward	17.2
State | 2025
Net operating loss carryforward
Net operating loss carryforward	$ 95.7

Income Taxes - Components of De

Income Taxes - Components of Deferred Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components of the provision for deferred income taxes
Provision for loan losses	$ 2,480	$ 3,146	$ 5,511
Deferred compensation	97	1	(109)
Amortization of core deposit intangible assets	230	(203)	(691)
Stock option expense	(151)	(80)	202
OREO write downs	1,722	1,402	6,591
Federal net operating loss carryforward	2,896	1,022	(7,287)
State net operating loss carryforward	659	2,442	(1,661)
Deferred tax credit	(198)	(107)
Depreciation	(201)	(233)	(28)
Net premiums and discounts on securities		(8)	(114)
Mortgage servicing rights	164	(251)	752
Goodwill amortization/impairment	1,506	2,123	1,544
State tax benefits	(604)	(1,704)	(321)
Change in valuation allowance		(2,363)	(74,145)
Other, net	156	446	(620)
Total deferred tax benefit	8,756	5,633	(70,376)
Difference between effective tax rates and federal statutory rates applied to financial statement income
Tax at statutory federal income tax rate	8,526	5,564	4,145
Nontaxable interest income, net of disallowed interest deduction	(253)	(233)	(245)
BOLI income	(487)	(508)	(694)
State income taxes, net of federal benefit	1,126	872	662
Change in valuation allowance		(2,363)	(74,145)
Deficiency from restricted stock			10
Impact of Illinois tax rate change		2,363
Other, net	64	66	25
Provision for income taxes	8,976	5,761	(70,242)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest	$ 24,361	$ 15,897	$ 11,843

Equity Compensation Plans - Opt

Equity Compensation Plans - Options (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Equity Compensation Plans
Total compensation cost	$ 613,000	$ 295,000	$ 167,000
2014 Plan
Equity Compensation Plans
Number of shares authorized	375,000
Number of shares issuable	125,000
Stock options
Equity Compensation Plans
Granted (in shares)	0	0	0
Term of stock options granted	10 years
Exercised (in shares)	0	0
Total unrecognized compensation cost	$ 0
Shares
Beginning outstanding (in shares)	229,000
Canceled (in shares)	(36,500)
Expired (in shares)	(30,000)
Ending outstanding (in shares)	162,500	229,000
Exercisable at end of period (in shares)	162,500
Weighted Average Exercise Price
Beginning outstanding (in dollars per share)	$ 28.28
Canceled (in dollars per share)	31.34
Expired (in dollars per share)	31.34
Ending outstanding (in dollars per share)	27.03	$ 28.28
Exercisable at end of period (in dollars per share)	$ 27.03
Weighted Average Remaining Contractual Term (years)
Ending outstanding (in years)	1 year 7 months 6 days
Exercisable at end of period	1 year 7 months 6 days

Equity Compensation Plans - Res

Equity Compensation Plans - Restricted Stock and RSUs (Details) - Restricted stock and restricted stock units - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Equity Compensation Plans
Vesting period	3 years
Changes in unvested awards
Nonvested at the beginning of the period (in shares)	325,000
Granted (in shares)	101,500	184,500
Vested (in shares)	(62,500)
Forfeited (in shares)	(16,000)
Nonvested at the end of the period (in shares)	348,000	325,000
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 4.15
Granted (in dollars per share)	5.38
Vested (in dollars per share)	4.13
Forfeited (in dollars per share)	4.43
Nonvested at the end of the period (in dollars per share)	$ 4.50	$ 4.15
Additional information
Total unrecognized compensation cost of restricted awards	$ 733
Expected weighted-average period for recognition of unrecognized compensation	1 year 11 months 1 day

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended			36 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015
Basic earnings per share:
Weighted-average common shares outstanding	29,476,821	25,300,909	13,939,919
Weighted-average common shares less stock based awards	29,476,821	25,298,813	13,896,893
Weighted-average common shares stock based awards		201,558	209,140
Net income	$ 15,385	$ 10,136	$ 82,085
Gain on preferred stock redemption		(1,348)
Preferred stock dividends and accretion	1,873	(371)	5,258
Net income available to common stockholders	$ 13,512	$ 11,855	$ 76,827
Basic earnings per share common undistributed earnings (loss) (in dollars per share)		$ 0.46	$ 5.45
Basic earnings per share (in dollars per share)	$ 0.46	$ 0.46	$ 5.45
Diluted earnings per share:
Weighted-average common shares outstanding	29,476,821	25,300,909	13,939,919
Diluted average common shares outstanding	29,730,074	25,549,193	14,106,033
Net earnings available to common stockholders	$ 13,512	$ 11,855	$ 76,827
Diluted earnings per share (in dollars per share)	$ 0.46	$ 0.46	$ 5.45
Antidilutive options and warrants
Diluted earnings per share:
Number of antidilutive options and warrants excluded from the diluted earnings per share calculation (in shares)	977,839	1,044,339	1,140,839
Warrants
Diluted earnings per share:
Number of antidilutive options and warrants excluded from the diluted earnings per share calculation (in shares)		815,339	815,339	815,339
Warrants, exercise price (in dollars per share)	$ 13.43	$ 13.43	$ 13.43	$ 13.43
Restricted stock and restricted stock units
Diluted earnings per share:
Dilutive effect of nonvested restricted awards (in shares)	253,253	248,284	166,114

Commitments - Summary of Financ

Commitments - Summary of Financial Instrument Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fixed
Financial instrument commitments
Financial instrument commitments	$ 126	$ 471
Loan commitments	71,016	62,391
Fixed | Borrower
Financial instrument commitments
Financial instrument commitments	126	471
Fixed | Borrower | Financial standby
Financial instrument commitments
Financial instrument commitments	60	55
Fixed | Borrower | Performance standby
Financial instrument commitments
Financial instrument commitments	66	416
Variable
Financial instrument commitments
Financial instrument commitments	11,544	11,056
Loan commitments	197,909	169,717
Variable | Borrower
Financial instrument commitments
Financial instrument commitments	10,969	10,484
Variable | Borrower | Financial standby
Financial instrument commitments
Financial instrument commitments	3,572	4,745
Variable | Borrower | Commercial standby
Financial instrument commitments
Financial instrument commitments	47	49
Variable | Borrower | Performance standby
Financial instrument commitments
Financial instrument commitments	7,350	5,690
Variable | Nonborrower
Financial instrument commitments
Financial instrument commitments	575	572
Variable | Nonborrower | Performance standby
Financial instrument commitments
Financial instrument commitments	575	572
Total.
Financial instrument commitments
Financial instrument commitments	11,670	11,527
Loan commitments	268,925	232,108
Total. | Borrower
Financial instrument commitments
Financial instrument commitments	11,095	10,955
Total. | Borrower | Financial standby
Financial instrument commitments
Financial instrument commitments	3,632	4,800
Total. | Borrower | Commercial standby
Financial instrument commitments
Financial instrument commitments	47	49
Total. | Borrower | Performance standby
Financial instrument commitments
Financial instrument commitments	7,416	6,106
Total. | Nonborrower
Financial instrument commitments
Financial instrument commitments	575	572
Total. | Nonborrower | Performance standby
Financial instrument commitments
Financial instrument commitments	$ 575	$ 572

Commitments - Lease Commitments

Commitments - Lease Commitments and Legal Proceedings (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Estimated aggregate minimum annual rental commitments
2,016	$ 50,000
2,017	33,000
2,018	24,000
2019 and beyond	15,000
Aggregate future minimum rental income receivable under noncancelable leases	113,000
Total facility net operating lease revenue/expense	11,000	$ 67,000	$ 64,000
Total ATM lease expense	$ 826,000	$ 829,000	$ 830,000

Regulatory & Capital Matters (D

Regulatory & Capital Matters (Details)	Dec. 31, 2015	Dec. 31, 2014
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	8.69%	9.93%
Total capital ratio (as a percent)	15.56%	17.68%
Old Second National Bank
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	9.94%	12.02%
Total capital ratio (as a percent)	15.23%	18.73%

Regulatory & Capital Matters -

Regulatory & Capital Matters - Capital Levels and Industry Defined Regulatory Minimums (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Common equity tier 1 capital to risk weighted assets
Actual	$ 151,410
Minimum Required for Capital Adequacy Purposes	$ 64,582
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	10.55%
Minimum Required for Capital Adequacy Purposes (as a percent)	4.50%
Total capital to risk weighted assets, Amount
Actual at period end	$ 223,311	$ 240,566
Minimum Required for Capital Adequacy Purposes	$ 114,813	$ 108,853
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	15.56%	17.68%
Minimum Required for Capital Adequacy Purposes (as a percent)	8.00%	8.00%
Tier 1 capital to risk weighted assets, Amount
Actual	$ 176,625	$ 196,499
Minimum Required for Capital Adequacy Purposes	$ 86,159	$ 54,432
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	12.30%	14.44%
Minimum Required for Capital Adequacy Purposes (as a percent)	6.00%	4.00%
Tier 1 capital to average assets, Amount
Actual	$ 176,625	$ 196,499
Minimum Required for Capital Adequacy Purposes	$ 81,300	$ 79,154
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	8.69%	9.93%
Minimum Required for Capital Adequacy Purposes (as a percent)	4.00%	4.00%
Old Second National Bank
Common equity tier 1 capital to risk weighted assets
Actual	$ 202,158
Minimum Required for Capital Adequacy Purposes	64,519
Minimum Required to Be Well Capitalized	$ 93,193
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	14.10%
Minimum Required for Capital Adequacy Purposes (as a percent)	4.50%
Minimum Required to Be Well Capitalized (as a percent)	6.50%
Total capital to risk weighted assets, Amount
Actual at period end	$ 218,375	$ 254,897
Minimum Required for Capital Adequacy Purposes	114,708	108,872
Minimum Required to Be Well Capitalized	$ 143,385	$ 136,090
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	15.23%	18.73%
Minimum Required for Capital Adequacy Purposes (as a percent)	8.00%	8.00%
Minimum Required to Be Well Capitalized (as a percent)	10.00%	10.00%
Tier 1 capital to risk weighted assets, Amount
Actual	$ 202,158	$ 237,828
Minimum Required for Capital Adequacy Purposes	86,025	54,454
Minimum Required to Be Well Capitalized	$ 114,700	$ 81,681
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	14.10%	17.47%
Minimum Required for Capital Adequacy Purposes (as a percent)	6.00%	4.00%
Minimum Required to Be Well Capitalized (as a percent)	8.00%	6.00%
Tier 1 capital to average assets, Amount
Actual	$ 202,158	$ 237,828
Minimum Required for Capital Adequacy Purposes	81,351	79,144
Minimum Required to Be Well Capitalized	$ 101,689	$ 98,930
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	9.94%	12.02%
Minimum Required for Capital Adequacy Purposes (as a percent)	4.00%	4.00%
Minimum Required to Be Well Capitalized (as a percent)	5.00%	5.00%

Regulatory & Capital Matters 86

Regulatory & Capital Matters - Dividend Restrictions and Deferrals (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Dividend Restrictions and Deferrals
Number of previous years retained profit considered for dividend payment					2 years
Minimum capital requirements, minimum percentage required, 2016				0.625%
Mimimum capital requirements, minimum percentage required, 2017			1.25%
Mimimum capital requirements, minimum percentage required, 2018		1.875%
Mimimum capital requirements, minimum percentage required, 2019 and thereafter	2.50%

Mortgage Banking Derivatives (D

Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Mortgage Banking Derivatives
Amount of loans sold to investors	$ 190,600
Proceeds from sale of loan to investors	196,431	$ 124,458	$ 191,019
Gain on sale of loan	5,775	3,594	5,627
Federal National Mortgage Association
Mortgage Banking Derivatives
Amount of loans sold to investors	$ 132,700
Federal National Mortgage Association | Customer concentration risk
Mortgage Banking Derivatives
Percentage of concentration risk	69.80%
Wells Fargo
Mortgage Banking Derivatives
Amount of loans sold to investors	$ 33,600
Wells Fargo | Customer concentration risk
Mortgage Banking Derivatives
Percentage of concentration risk	17.70%
Collateralized mortgage obligation ("MBS")
Mortgage Banking Derivatives
Gain on sale of loan	$ 188	143	$ 315
Not designated | Forward MBS contracts and forward loan contracts
Mortgage Banking Derivatives
Notional or Contractual Amount	15,500	14,000
Fair value	484	615
Change in fair value	21	(79)
Not designated | Rate Lock Commitments
Mortgage Banking Derivatives
Notional or Contractual Amount	10,973	10,876
Fair value	502	509
Change in fair value	$ 167	$ 222

Fair Value Measurements - Recur

Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets:
Securities available-for-sale	$ 456,066	$ 385,486
Mortgage servicing rights	5,847	5,462
U.S. Treasury
Assets:
Securities available-for-sale	1,509	1,527
U.S. government agencies
Assets:
Securities available-for-sale	1,556	1,624
U.S. government agency mortgage-backed
Assets:
Securities available-for-sale	1,996
States and political subdivisions
Assets:
Securities available-for-sale	30,526	22,018
Corporate bonds
Assets:
Securities available-for-sale	29,400	30,985
Collateralized mortgage obligations
Assets:
Securities available-for-sale	66,920	63,627
Asset-backed securities
Assets:
Securities available-for-sale	231,908	173,496
Collateralized loan obligations
Assets:
Securities available-for-sale	92,251	92,209
Level 1
Assets:
Securities available-for-sale	1,509	1,527
Level 2
Assets:
Securities available-for-sale	454,446	330,900
Loans held-for-sale	2,849	5,072
Liabilities:
Other liabilities	631
Level 2 | U.S. government agency mortgage-backed
Assets:
Securities available-for-sale	1,996
Level 3
Assets:
Securities available-for-sale	111	53,059
Recurring
Assets:
Loans held-for-sale	2,849	5,072
Mortgage servicing rights	5,847	5,462
Total financial assets	465,064	396,193
Liabilities:
Total	745	30
Recurring | Interest rate swap agreements net of swap credit valuation
Assets:
Other assets	114	30
Liabilities:
Other liabilities	745	30
Recurring | Forward MBS contracts and forward loan contracts
Assets:
Other assets	188	143
Recurring | U.S. Treasury
Assets:
Securities available-for-sale	1,509	1,527
Recurring | U.S. government agencies
Assets:
Securities available-for-sale	1,556	1,624
Recurring | States and political subdivisions
Assets:
Securities available-for-sale	30,526	22,018
Recurring | Corporate bonds
Assets:
Securities available-for-sale	29,400	30,985
Recurring | Collateralized mortgage obligations
Assets:
Securities available-for-sale	66,920	63,627
Recurring | Asset-backed securities
Assets:
Securities available-for-sale	231,908	173,496
Recurring | Collateralized loan obligations
Assets:
Securities available-for-sale	92,251	92,209
Recurring | Level 1
Assets:
Total financial assets	1,509	1,527
Recurring | Level 1 | U.S. Treasury
Assets:
Securities available-for-sale	1,509	1,527
Recurring | Level 2
Assets:
Loans held-for-sale	2,849	5,072
Total financial assets	457,597	336,145
Liabilities:
Total	745	30
Recurring | Level 2 | Interest rate swap agreements net of swap credit valuation
Assets:
Other assets	114	30
Liabilities:
Other liabilities	745	30
Recurring | Level 2 | Forward MBS contracts and forward loan contracts
Assets:
Other assets	188	143
Recurring | Level 2 | U.S. government agencies
Assets:
Securities available-for-sale	1,556	1,624
Recurring | Level 2 | States and political subdivisions
Assets:
Securities available-for-sale	30,415	21,900
Recurring | Level 2 | Corporate bonds
Assets:
Securities available-for-sale	29,400	30,985
Recurring | Level 2 | Collateralized mortgage obligations
Assets:
Securities available-for-sale	66,920	63,627
Recurring | Level 2 | Asset-backed securities
Assets:
Securities available-for-sale	231,908	120,555
Recurring | Level 2 | Collateralized loan obligations
Assets:
Securities available-for-sale	92,251	92,209
Recurring | Level 3
Assets:
Mortgage servicing rights	5,847	5,462
Total financial assets	5,958	58,521
Recurring | Level 3 | States and political subdivisions
Assets:
Securities available-for-sale	$ 111	118
Recurring | Level 3 | Asset-backed securities
Assets:
Securities available-for-sale		$ 52,941

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Interest rate swap agreements net of swap credit valuation
Changes in Level 3 (liabilities)
Beginning balance		$ (6)
Included in earnings (or changes in net assets)		6
Asset-backed securities
Changes in Level 3
Beginning balance	$ 52,941	154,137
Total gains or losses
Included in earnings (or changes in net assets)	(28)	3,556
Included in other comprehensive income	(541)	(1,454)
Purchases, issuances, sales, and settlements
Purchases		63,704
Sales	(27,455)	(167,002)
Ending balance		52,941
Transfers out of Level 3	(24,917)
States and political subdivisions
Changes in Level 3
Beginning balance	118	125
Purchases, issuances, sales, and settlements
Settlements	(7)	(7)
Ending balance	111	118
Mortgage servicing rights
Changes in Level 3
Beginning balance	5,462	5,807
Total gains or losses
Included in earnings (or changes in net assets)	(466)	(1,214)
Purchases, issuances, sales, and settlements
Issuances	1,526	869
Settlements	(675)
Ending balance	$ 5,847	$ 5,462

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative and Qualitative Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	$ 5,847	$ 5,462
Recurring
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	5,847	5,462
Recurring | Level 3
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	5,847	5,462
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	$ 5,847	$ 5,462
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3 | Minimum
Quantitative information about Level 3 fair value measurements
Discount rate (as a percent)	10.00%	9.70%
Prepayment speed (as a percent)	6.00%	5.00%
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3 | Maximum
Quantitative information about Level 3 fair value measurements
Discount rate (as a percent)	15.50%	108.20%
Prepayment speed (as a percent)	35.20%	78.40%
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3 | Weighted Average
Quantitative information about Level 3 fair value measurements
Discount rate (as a percent)	10.20%	10.20%
Prepayment speed (as a percent)	10.10%	10.90%
Recurring | Asset-backed securities | Discounted Cash Flow | Level 3
Quantitative information about Level 3 fair value measurements
Asset-backed securities		$ 52,941
Recurring | Asset-backed securities | Discounted Cash Flow | Level 3 | Minimum
Quantitative information about Level 3 fair value measurements
Credit risk premium (as a percent)		0.90%
Liquidity Discount (as a percent)		3.50%
Recurring | Asset-backed securities | Discounted Cash Flow | Level 3 | Maximum
Quantitative information about Level 3 fair value measurements
Credit risk premium (as a percent)		0.90%
Liquidity Discount (as a percent)		3.70%
Recurring | Asset-backed securities | Discounted Cash Flow | Level 3 | Weighted Average
Quantitative information about Level 3 fair value measurements
Credit risk premium (as a percent)		0.90%
Liquidity Discount (as a percent)		3.60%

Fair Value Measurements - Nonre

Fair Value Measurements - Nonrecurring (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets and liabilities measured at fair value
Valuation allowance	$ 34	$ 278
Carrying value of other real estate owned	19,141	31,982	$ 41,537	$ 72,423
OREO Valuation allowance	14,127	19,229	$ 22,284	$ 31,454
Other real estate owned
Assets and liabilities measured at fair value
Outstanding balance		53,000
OREO Valuation allowance		19,200
OREO participations		1,800
Nonrecurring
Assets and liabilities measured at fair value
Total	19,222	32,546
Nonrecurring | Impaired loans
Assets and liabilities measured at fair value
Total	81	564
Valuation allowance	34	278
Decrease of specific allocations within the provision for loan losses	243	2,100
Nonrecurring | Impaired loans | Carrying Amount
Assets and liabilities measured at fair value
Total	115	842
Nonrecurring | Other real estate owned
Assets and liabilities measured at fair value
Total	19,141	31,982
Outstanding balance	34,900
OREO Valuation allowance	14,100
OREO participations	1,700
Nonrecurring | Level 3
Assets and liabilities measured at fair value
Total	19,222	32,546
Nonrecurring | Level 3 | Impaired loans
Assets and liabilities measured at fair value
Total	81	564
Nonrecurring | Level 3 | Other real estate owned
Assets and liabilities measured at fair value
Total	$ 19,141	$ 31,982

Fair Values of Financial Inst92

Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financial assets:
Cash and due from banks	$ 26,975	$ 30,101
Interest bearing deposits with financial institutions	13,363	14,096
Securities available-for-sale	456,066	385,486
Securities held-to-maturity	247,746	259,670
FHLBC and Reserve Bank Stock	8,518	9,058
Bank-owned life insurance	58,028	56,807
Financial liabilities:
Noninterest bearing deposits	442,639	400,447
Other short-term borrowings	15,000	45,000
Junior subordinated debentures	58,378	58,378
Level 1
Financial assets:
Cash and due from banks	26,975	30,101
Interest bearing deposits with financial institutions	13,363	14,096
Securities available-for-sale	1,509	1,527
Financial liabilities:
Noninterest bearing deposits	442,639	400,447
Junior subordinated debentures	32,441	32,441
Level 2
Financial assets:
Securities available-for-sale	454,446	330,900
Securities held-to-maturity	251,675	263,266
FHLBC and Reserve Bank Stock	8,518	9,058
Bank-owned life insurance	58,028	56,807
Loans held for sale	2,849	5,072
Accrued interest receivable	4,464	4,888
Financial liabilities:
Interest bearing deposits	1,316,550	1,284,887
Securities sold under repurchase agreements	34,070	21,036
Other short-term borrowings	15,000	45,000
Junior subordinated debentures	22,245	22,245
Subordinated debenture	41,101	39,366
Note payable and other borrowings	445	422
Derivative Liability	631
Borrowing interest payable	75	75
Deposit interest payable	445	467
Level 3
Financial assets:
Securities available-for-sale	111	53,059
Loans, net	1,126,959	1,151,223
Carrying Amount
Financial assets:
Cash and due from banks	26,975	30,101
Interest bearing deposits with financial institutions	13,363	14,096
Securities available-for-sale	456,066	385,486
Securities held-to-maturity	247,746	259,670
FHLBC and Reserve Bank Stock	8,518	9,058
Bank-owned life insurance	58,028	56,807
Loans held for sale	2,849	5,072
Loans, net	1,117,492	1,137,695
Accrued interest receivable	4,464	4,888
Financial liabilities:
Noninterest bearing deposits	442,639	400,447
Interest bearing deposits	1,316,447	1,284,608
Securities sold under repurchase agreements	34,070	21,036
Other short-term borrowings	15,000	45,000
Junior subordinated debentures	58,378	58,378
Subordinated debenture	45,000	45,000
Note payable and other borrowings	500	500
Derivative Liability	631
Borrowing interest payable	75	75
Deposit interest payable	445	467
Total Fair Value
Financial assets:
Cash and due from banks	26,975	30,101
Interest bearing deposits with financial institutions	13,363	14,096
Securities available-for-sale	456,066	385,486
Securities held-to-maturity	251,675	263,266
FHLBC and Reserve Bank Stock	8,518	9,058
Bank-owned life insurance	58,028	56,807
Loans held for sale	2,849	5,072
Loans, net	1,126,959	1,151,223
Accrued interest receivable	4,464	4,888
Financial liabilities:
Noninterest bearing deposits	442,639	400,447
Interest bearing deposits	1,316,550	1,284,887
Securities sold under repurchase agreements	34,070	21,036
Other short-term borrowings	15,000	45,000
Junior subordinated debentures	54,686	54,686
Subordinated debenture	41,101	39,366
Note payable and other borrowings	445	422
Derivative Liability	631
Borrowing interest payable	75	75
Deposit interest payable	$ 445	$ 467

Financial Instruments with Of93

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions - Interest Rate Derivatives (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)item
Cash Flow Hedging [Member]
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Unrealized loss	$ (631)
Notional or Contractual Amount	25,774
Not designated
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Asset Derivatives, Fair Value	302	$ 173
Liability Derivatives, Fair Value	114	30
Interest rate swap agreements net of swap credit valuation | Not designated
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Investment securities pledged with financial institutions, dollars	$ 2,400	$ 3,000
Number of correspondent financial institutions where investment securities are pledged | item	2	3
Weighted average maturity	5 years 1 month 6 days	2 years 8 months 12 days
Notional or Contractual Amount	$ 20,708	$ 16,334
Asset Derivatives, Fair Value	114	30
Liability Derivatives, Fair Value	114	30
Commitments | Not designated
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Notional or Contractual Amount	226,346	201,946
Asset Derivatives, Fair Value	188	143
Forward MBS contracts and forward loan contracts | Not designated
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Notional or Contractual Amount	$ 15,500	$ 14,000

Preferred Stock (Details)

Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2009	Dec. 31, 2015
Preferred Stock
Proceeds from the Treasury	$ 73
Series B Stock
Preferred Stock
Period for payment of cumulative dividends using the initial cumulative dividend rate		5 years
Cumulative dividends, initial rate for the first five years (as a percent)		5.00%
Cumulative dividends rate (as a percent)		9.00%
Fair value	68.2
Warrants
Preferred Stock
Warrants, term		10 years
Warrants to purchase the Company's common stock, initially authorized (in shares)		815,339
Warrants, exercise price (in dollars per share)		$ 13.43
Fair value	$ 4.8

Preferred Stock - Dividends and

Preferred Stock - Dividends and Redemptions (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Dec. 31, 2014
Preferred Stock
Payments for repurchase of preferred stock			$ 24,300
Shares redeemed (in shares)	31,553	15,778
Preferred stock				$ 47,331
Preferred Stock, Shares Outstanding				47,331
Series B Stock
Preferred Stock
Repurchase price percentage of liquidation value (as a percent)			94.75%
Shares redeemed (in shares)			25,669

Parent Company Condensed Fina96

Parent Company Condensed Financial Information - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets
Other assets	$ 17,674	$ 13,882
Total assets	2,077,863	2,061,787
Liabilities and Stockholders' Equity
Junior subordinated debentures	58,378	58,378
Subordinated debt	45,000	45,000
Other liabilities	9,900	12,655
Stockholders' equity	155,929	194,163	$ 147,692	$ 72,552
Total liabilities and stockholders' equity	2,077,863	2,061,787
Old Second Bancorp, Inc.
Assets
Noninterest bearing deposit with bank subsidiary	33,500	7,059
Investment in subsidiaries	204,509	272,285
Other assets	22,951	19,940
Total assets	260,960	299,284
Liabilities and Stockholders' Equity
Junior subordinated debentures	58,378	58,378
Subordinated debt	45,000	45,000
Other liabilities	1,653	1,743
Stockholders' equity	155,929	194,163
Total liabilities and stockholders' equity	$ 260,960	$ 299,284

Parent Company Condensed Fina97

Parent Company Condensed Financial Information - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Expenses
Junior subordinated debentures interest expense	$ 4,287	$ 4,919	$ 5,298
Subordinated debt interest expense	814	792	811
Income before income taxes	24,361	15,897	11,843
Income tax benefit	8,976	5,761	(70,242)
Net income	15,385	10,136	82,085
Dividends waived upon preferred stock redemption		(5,433)
Gain on preferred stock redemption		(1,348)
Net income available to common stockholders	13,512	11,855	76,827
Old Second Bancorp, Inc.
Operating Income
Cash dividends received from subsidiaries	82,777
Other income	131	231	772
Total operating income	82,908	231	772
Operating Expenses
Junior subordinated debentures interest expense	4,287	4,919	5,298
Subordinated debt interest expense	814	792	811
Other interest expense	7	16	16
Other expenses	1,978	1,045	1,006
Total operating expense	7,086	6,772	7,131
Income before income taxes	75,822	(6,541)	(6,359)
Income tax benefit	(2,771)	(2,305)	(17,133)
Income (loss) before equity in undistributed net income of subsidiaries	78,593	(4,236)	10,774
Equity in undistributed net income of subsidiaries	(63,208)	14,372	71,311
Net income	15,385	10,136	82,085
Preferred stock dividends and accretion of discount	1,873	5,062	5,258
Dividends waived upon preferred stock redemption		(5,433)
Gain on preferred stock redemption		(1,348)
Net income available to common stockholders	$ 13,512	$ 11,855	$ 76,827

Parent Company Condensed Fina98

Parent Company Condensed Financial Information -Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash Flows from Operating Activities
Net income	$ 15,385	$ 10,136	$ 82,085
Adjustments to reconcile net income (loss) to net cash from operating activities:
Deferred income taxes	8,756	5,563	(70,376)
Change in taxes payable	100	86	(132)
Gain on recapture of restricted stock			(612)
Stock-based compensation	613	295	167
Net cash provided by (used in) operating activities	21,137	(6,307)	35,256
Cash Flows from Financing Activities
Dividends paid on preferred stock	(2,417)	(12,390)
Purchases of treasury stock	(117)	(46)	(278)
Proceeds from issuance of common stock		64,331
Redemption of preferred stock	(47,331)	(24,321)
Net cash (used in) provided by financing activities	7,200	68,977	(125,684)
Net change in cash and cash equivalents	(3,859)	(3,463)	(80,847)
Cash and cash equivalents at beginning of period	44,197	47,660	128,507
Cash and cash equivalents at end of period	40,338	44,197	47,660
Old Second Bancorp, Inc.
Cash Flows from Operating Activities
Net income	15,385	10,136	82,085
Adjustments to reconcile net income (loss) to net cash from operating activities:
Equity in undistributed net income of subsidiaries	63,208	(14,372)	(71,311)
Deferred income taxes	(2,806)	(2,256)	(16,786)
Change in taxes payable	(199)	22	14
Change in other assets	83	740	(264)
Gain on recapture of restricted stock			(612)
Stock-based compensation	613	295	167
Other, net	22	(17,151)	5,502
Net cash provided by (used in) operating activities	76,306	(22,586)	(1,205)
Cash Flows from Financing Activities
Dividends paid	2,417	12,390
Purchases of treasury stock	(117)	(46)	(278)
Proceeds from issuance of common stock		64,331
Redemption of preferred stock	(47,331)	(24,321)
Net cash (used in) provided by financing activities	(49,865)	27,574	(278)
Net change in cash and cash equivalents	26,441	4,988	(1,483)
Cash and cash equivalents at beginning of period	7,059	2,071	3,554
Cash and cash equivalents at end of period	$ 33,500	$ 7,059	$ 2,071

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Old Second Bancorp, Inc. Voluntary Deferred Compensation Plan for Executives
Employee Benefit Plans
Company obligations under Voluntary Deferred Compensation Plan for Executives	$ 1,600	$ 1,900	$ 1,800
Old Second Bancorp Inc Employees 401(k) Savings Plan and Trust
Employee Benefit Plans
Company's discretionary matching contributions to the Plan (as a percent)	100.00%	100.00%	100.00%
Percentage of compensation contributed to the Plan matched by employer	2.00%	2.00%	2.00%
Participants vesting as percentage of discretionary matching contributions	100.00%	100.00%	100.00%
Expense relating to the 401(k) plan	$ 464	$ 477	$ 468