Old Second Bancorp (OSBC) 10-Q 8 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 04, 2016
Document and Entity Information
Entity Registrant Name	OLD SECOND BANCORP INC
Entity Central Index Key	357,173
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		29,554,716
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 29,203	$ 26,975
Interest bearing deposits with financial institutions	160,744	13,363
Cash and cash equivalents	189,947	40,338
Securities available-for-sale, at fair value	531,057	456,066
Securities held-to-maturity, at amortized cost		247,746
Federal Home Loan Bank and Federal Reserve Bank stock	7,918	8,518
Loans held-for-sale	3,750	2,849
Loans	1,202,852	1,133,715
Less: allowance for loan losses	14,983	16,223
Net loans	1,187,869	1,117,492
Premises and equipment, net	39,092	39,612
Other real estate owned	14,144	19,141
Mortgage servicing rights, net	5,075	5,847
Bank-owned life insurance (BOLI)	60,036	59,049
Deferred tax assets, net	55,536	64,552
Other assets	18,327	15,818
Total assets	2,112,751	2,077,028
Deposits:
Noninterest bearing demand	473,477	442,639
Interest bearing:
Savings, NOW, and money market	904,137	908,598
Time	399,768	407,849
Total deposits	1,777,382	1,759,086
Securities sold under repurchase agreements	46,606	34,070
Other short-term borrowings		15,000
Junior subordinated debentures	57,579	57,543
Subordinated debt	45,000	45,000
Notes payable and other borrowings	500	500
Other liabilities	14,057	9,900
Total liabilities	1,941,124	1,921,099
Stockholders' Equity
Common stock	34,533	34,427
Additional paid-in capital	116,468	115,918
Retained earnings	124,283	114,209
Accumulated other comprehensive loss	(7,437)	(12,659)
Treasury stock	(96,220)	(95,966)
Total stockholders' equity	171,627	155,929
Total liabilities and stockholders' equity	$ 2,112,751	$ 2,077,028

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Consolidated Balance Sheets
Preferred stock, Par value (in dollars per share)	$ 1	$ 1
Preferred stock, Shares authorized	300,000	300,000
Common stock, Par value (in dollars per share)	$ 1	$ 1
Common Stock, Shares authorized	60,000,000	60,000,000
Common stock, Shares issued	34,532,734	34,427,234
Common stock, Shares outstanding	29,554,716	29,483,429
Treasury stock, Shares	4,978,018	4,943,805

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest and Dividend Income
Loans, including fees	$ 13,496	$ 13,353	$ 39,593	$ 40,038
Loans held-for-sale	48	38	115	153
Securities:
Taxable	3,954	3,471	12,547	10,218
Tax exempt	180	122	579	426
Dividends from Federal Reserve Bank and Federal Home Loan Bank stock	83	76	251	230
Interest bearing deposits with financial institutions	64	12	98	43
Total interest and dividend income	17,825	17,072	53,183	51,108
Interest Expense
Savings, NOW, and money market deposits	193	185	577	547
Time deposits	931	799	2,622	2,377
Other short-term borrowings	23	6	69	22
Junior subordinated debentures	1,084	1,072	3,251	3,215
Subordinated debt	245	205	727	604
Notes payable and other borrowings	2	1	6	5
Total interest expense	2,478	2,268	7,252	6,770
Net interest and dividend income	15,347	14,804	45,931	44,338
Loan loss reserve release		(2,100)		(4,400)
Net interest and dividend income after release for loan losses	15,347	16,904	45,931	48,738
Noninterest Income
Trust income	1,403	1,444	4,274	4,526
Service charges on deposits	1,756	1,766	4,961	5,086
Secondary mortgage fees	322	190	795	715
Mortgage servicing gain / (loss), net of changes in fair value	290	(274)	(641)	18
Net gain on sales of mortgage loans	2,177	1,359	5,031	4,677
Securities loss, net	(1,959)	(57)	(2,020)	(178)
Increase in cash surrender value of bank-owned life insurance	383	236	987	1,015
Debit card interchange income	1,013	1,004	3,009	3,013
(Loss) gain on disposal and transfer of fixed assets		(1,143)	(1)	(1,143)
Other income	1,209	1,123	3,751	4,156
Total noninterest income	6,594	5,648	20,146	21,885
Noninterest Expense
Salaries and employee benefits	9,014	8,260	26,854	26,664
Occupancy expense, net	1,120	1,156	3,358	3,521
Furniture and equipment expense	1,144	1,110	3,180	3,176
FDIC insurance	228	373	793	1,023
General bank insurance	269	308	839	975
Advertising expense	430	434	1,212	992
Debit card interchange expense	363	379	1,186	1,131
Legal fees	242	279	594	922
Other real estate expense, net	426	977	2,043	4,717
Other expense	3,346	2,968	9,487	9,203
Total noninterest expense	16,582	16,244	49,546	52,324
Income before income taxes	5,359	6,308	16,531	18,299
Provision for income taxes	1,860	2,384	5,865	6,747
Net income	3,499	3,924	10,666	11,552
Preferred stock dividends and accretion of discount		339		1,873
Net income available to common stockholders	$ 3,499	$ 3,585	$ 10,666	$ 9,679
Basic earnings per share (in dollars per share)	$ 0.12	$ 0.12	$ 0.36	$ 0.33
Diluted earnings per share (in dollars per share)	$ 0.12	$ 0.12	$ 0.36	$ 0.33

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Consolidated Statements of Comprehensive Income
Net income	$ 3,499	$ 3,924	$ 10,666	$ 11,552
Unrealized holding (losses) gains on available-for-sale securities arising during the period	(616)	(5,191)	5,151	(4,845)
Related tax benefit (expense)	237	2,079	(2,071)	1,869
Holding (losses) gains after tax on available-for-sale securities	(379)	(3,112)	3,080	(2,976)
Less: Reclassification adjustment for the net (losses) gains realized during the period
Net realized (losses) gains	(1,959)	(57)	(2,020)	(178)
Income tax benefit (expense) on net realized gains	782	23	807	71
Net realized (losses) gains after tax	(1,177)	(34)	(1,213)	(107)
Other comprehensive (loss) income on available-for-sale securities	798	(3,078)	4,293	(2,869)
Accretion of net unrealized holding gains on held-to-maturity transferred from available-for-sale securities		242	5,939	739
Related tax expense		(100)	(2,446)	(304)
Other comprehensive income on held-to-maturity securities		142	3,493	435
Changes in fair value of derivatives used for cashflow hedges	(254)	(816)	(4,278)	(816)
Related tax benefit	102		1,714
Other comprehensive loss on cashflow hedges	(152)	(816)	(2,564)	(816)
Total other comprehensive income (loss) income	646	(3,752)	5,222	(3,250)
Total comprehensive income	$ 4,145	$ 172	$ 15,888	$ 8,302

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net income	$ 10,666	$ 11,552
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization of leasehold improvement	1,682	1,816
Change in fair value of mortgage servicing rights	1,920	1,201
Loan loss reserve release		(4,400)
Provision for deferred tax expense	5,476	6,485
Originations of loans held-for-sale	(147,186)	(153,990)
Proceeds from sales of loans held-for-sale	150,247	158,621
Net gain on sales of mortgage loans	(5,031)	(4,677)
Change in current income taxes receivable (payable)	300	11
Increase in cash surrender value of bank-owned life insurance	(987)	(624)
Change in accrued interest receivable and other assets	(2,659)	(2,413)
Change in accrued interest payable and other liabilities	(246)	(3,385)
Net discount (accretion)/premium amortization on securities	(517)	226
Securities losses, net	2,020	178
Amortization of junior subordinated debentures issuance costs	36	35
Stock based compensation	482	466
Net gain on sale of other real estate owned	(316)	(769)
Provision for other real estate owned losses	1,305	3,825
Net loss on disposal of fixed assets	1	4
Loss on transfer of premises to other real estate owned		1,139
Net cash provided by (used in) operating activities	17,193	15,301
Cash flows from investing activities
Proceeds from maturities and calls including pay down of securities available-for-sale	62,868	33,035
Proceeds from sales of securities available-for-sale	271,374	70,176
Purchases of securities available-for-sale	(153,252)	(131,956)
Proceeds from maturities and calls including pay down of securities held-to-maturity	3,372	10,689
Proceeds from sales of Federal Home Loan Bank stock	600	787
Net change in loans	(71,600)	18,403
Improvements in other real estate owned	(16)
Proceeds from sales of other real estate owned	5,247	12,336
Net purchases of premises and equipment	(1,163)	(793)
Net cash (used in) provided by investing activities	117,430	12,677
Cash flows from financing activities
Net change in deposits	18,296	35,424
Net change in securities sold under repurchase agreements	12,536	6,038
Net change in other short-term borrowings	(15,000)	(10,000)
Redemption of preferred stock		(47,331)
Dividends paid on preferred stock		(2,417)
Dividends paid common stock	(592)
Purchase of treasury stock	(254)	(117)
Net cash (used in) provided by financing activities	14,986	(18,403)
Net change in cash and cash equivalents	149,609	9,575
Cash and cash equivalents at beginning of period	40,338	44,197
Cash and cash equivalents at end of period	189,947	53,772
Supplemental cash flow information
Income taxes paid	160	250
Interest paid for deposits	3,142	2,964
Interest paid for borrowings	4,021	3,848
Non-cash transfer of loans to other real estate owned	1,223	7,393
Non-cash transfer of loans to securities available-for-sale		468
Non-cash transfer of securities held-to-maturity to securities available-for-sale	$ 244,823
Change in dividends accrued		$ (544)

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, 2014	$ 34,365	$ 47,331	$ 115,332	$ 100,697	$ (7,713)	$ (95,849)	$ 194,163
Increase (Decrease) in Stockholders' Equity
Net income				11,552			11,552
Other comprehensive gain, net of tax					(3,250)		(3,250)
Change in restricted stock	58		(58)
Tax effect from vesting of restricted stock			(33)				(33)
Stock based compensation			466				466
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 Sep. 30, 2015	34,423		115,773	110,376	(10,963)	(95,966)	153,643
Balance at Dec. 31, 2015	34,427		115,918	114,209	(12,659)	(95,966)	155,929
Increase (Decrease) in Stockholders' Equity
Net income				10,666			10,666
Other comprehensive gain, net of tax					5,222		5,222
Dividends declared and paid				(592)			(592)
Change in restricted stock	106		(106)
Tax effect from vesting of restricted stock			174				174
Stock based compensation			482				482
Purchase of treasury stock						(254)	(254)
Balance at Sep. 30, 2016	$ 34,533		$ 116,468	$ 124,283	$ (7,437)	$ (96,220)	$ 171,627

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies The accounting policies followed in the preparation of the interim consolidated financial statements are consistent with those used in the preparation of the annual financial information. The interim consolidated financial statements reflect all normal and recurring adjustments that are necessary, in the opinion of management, for a fair statement of results for the interim period presented. Results for the period ended September 30, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These interim consolidated financial statements are unaudited and should be read in conjunction with the audited financial statements and notes included in Old Second Bancorp, Inc.’s (the “Company”) annual report on Form 10-K for the year ended December 31, 2015. Unless otherwise indicated, amounts in the tables contained in the notes to the consolidated financial statements are in thousands. Certain items in prior periods have been reclassified to conform to the current presentation. The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”) and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the consolidated financial statements. Future changes in information may affect these estimates, assumptions, and judgments, which, in turn, may affect amounts reported in the consolidated financial statements. All significant accounting policies are presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the consolidated financial statements and how those values are determined. Recent 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. 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 of ASU 2014-09 for an additional year. ASU 2015-14 will be effective for annual reporting periods beginning after December 15, 2017. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. Early application is not permitted. In March 2016, the FASB issued ASU 2016-08 “ Revenue from Contracts with Customers (TOPIC 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ” and in April 2016, the FASB issued ASU 2016-10 “ Revenue from Contracts with Customers (TOPIC 606): Identifying Performance Obligations and Licensing.” ASU 2016-08 requires the entity to determine if it is acting as a principal with control over the goods or services it is contractually obligated to provide, or an agent with no control over specified goods or services provided by another party to a customer. ASU 2016-10 was issued to further clarify ASU 2014-09 implementation regarding identifying performance obligation materiality, identification of key contract components, and scope. The Company is assessing the impact of ASU 2014-09 and other related ASUs as noted above on its accounting and disclosures. In April 2015, the FASB issued ASU No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 amended prior guidance to simplify the presentation of debt issuance costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of this standard did not have a material effect to the Company’s operating results or financial condition. This standard was adopted by the Company effective January 2016. In March 2016, the FASB issued ASU No. 2016-09 “ Improvements to Employee Share-Based Payment Accounting. ” FASB issued this ASU as part of the Simplification Initiative. This ASU involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liability, and classification on the statement of cash flows. ASU 2016-09 is effective for financial statements issued for fiscal years beginning after December 15, 2016. The Company is assessing the impact of ASU 2016-09 on its accounting and disclosures. In June 2016, the FASB issued ASU No. 2016-13 “ Measurement of Credit Losses on Financial Instruments. ” ASU 2016-13 was issued to provide financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date to enhance the decision making process. ASU 2016-13 is effective for financial statements issued for fiscal years beginning after December 15, 2019. The Company is assessing the impact of ASU 2016-13 on its accounting and disclosures. Subsequent Events On October 18, 2016, the Company’s Board of Directors declared a cash dividend of 1 cent per share payable on November 7, 2016, to stockholders of record as of October 28, 2016. On October 28, 2016, the bank completed its previously announced acquisition of the Chicago branch of Talmer Bank and Trust, the banking subsidiary of Talmer Bancorp, Inc. (“Talmer”). As a result of the transaction, the Bank acquired approximately $48.9 million of deposits and $223.4 million of loans.

Securities

Securities	9 Months Ended
	Sep. 30, 2016
Securities
Securities	Note 2 – Securities Investment Portfolio Management Our investment portfolio serves the liquidity needs and income objectives of the Company. While the portfolio serves as an important component of the overall liquidity management at the Bank, portions of the portfolio 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. 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. In the second quarter of 2016, the securities held-to-maturity portfolio was reclassified to available-for-sale to allow for portfolio restructuring and to fund loan growth. This transfer of $244.8 million at net book value was approved by the Board of Directors, and will preclude any holdings of securities held-to-maturity for a two year period. In the third quarter of 2016, approximately $233.5 million of securities available-for-sale were sold to satisfy anticipated funding requirements for the acquisition of the Talmer branch. Securities losses of $2.0 million pretax were realized upon these sales. Nonmarketable equity investments include Federal Home Loan Bank of Chicago (“FHLBC”) stock and Federal Reserve Bank of Chicago (“Reserve Bank”) stock. FHLBC stock was recorded at $3.2 million at September 30, 2016, and $3.7 million at December 31, 2015. Reserve Bank stock was recorded at $4.8 million at September 30, 2016, and December 31, 2015. 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 September 30, 2016, and December 31, 2015, and the corresponding amounts of gross unrealized gains and losses (in thousands): Gross Gross Amortized Unrealized Unrealized Fair September 30, 2016 Cost Gains Losses Value Securities available-for-sale 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 $ $ $ $ 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 $ $ $ $ The fair value, amortized cost and weighted average yield of debt securities at September 30, 2016, 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 Total securities available-for-sale $ % $ At September 30, 2016, the Company’s investments include $118.9 million of 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 and packaged and sold them as asset-backed securities. 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. In addition to the U.S. Department of Education guarantee, total added credit enhancement in the form of overcollateralization and/or subordination amounted to $12.8 million, or 9.62%, of outstanding principal. Securities with unrealized losses at September 30, 2016, and December 31, 2015, 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 12 months or more September 30, 2016 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 - $ - $ - $ $ $ $ Corporate bonds Collateralized mortgage obligations Asset-backed securities Collateralized loan obligations Total securities available-for-sale $ $ $ $ $ $ Less than 12 months 12 months or more 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 Total securities available-for-sale $ $ $ $ $ $ Securities held-to-maturity Collateralized mortgage obligations $ $ $ $ $ $ Total securities held-to-maturity $ $ $ $ $ $ Recognition of other-than-temporary impairment was not necessary in the three and nine months ending September 30, 2016, or the year ended December 31, 2015. The changes in fair value related primarily to interest rate fluctuations. Our review of other-than-temporary impairment determined that there was no credit quality deterioration.

Loans

Loans	9 Months Ended
	Sep. 30, 2016
Loans
Loans	Note 3 – Loans Major classifications of loans were as follows: September 30, 2016 December 31, 2015 Commercial $ $ Real estate - commercial Real estate - construction Real estate - residential Consumer Overdraft Lease financing receivables Other Net deferred loan costs Total loans $ $ It is the policy of the Company to review each prospective credit prior to making a loan in order to determine if an adequate level of security or collateral has been obtained. 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 laws, the Company’s lending standards and credit monitoring procedures. With selected exceptions, the Bank 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 83.5% and 86.1% of the portfolio at September 30, 2016, and December 31, 2015, respectively. Aged analysis of past due loans by class of loans was as follows: Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and September 30, 2016 Past Due Past Due Due Due Current Nonaccrual Total Loans Accruing Commercial 1 $ $ - $ - $ $ $ $ $ - 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 - - - - Other 2 - - - - - - Total $ $ $ $ $ $ $ $ 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 1 $ $ - $ - $ $ $ $ $ - 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 - - - - Other 2 - - - - - - Total $ $ $ $ $ $ $ $ 1 The “Commercial” class includes lease financing receivables. 2 The “Other” class includes overdrafts and net deferred 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. Credit Quality Indicators by class of loans were as follows: September 30, 2016 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 - - Other - - Total $ $ $ $ - $ 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 - - Other - - - Total $ $ $ $ - $ 1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans. The Company had $2.2 million and $3.9 million residential assets in the process of foreclosure as of September 30, 2016, and December 31, 2015, respectively. Impaired loans, which include nonaccrual loans and troubled debt restructurings, by class of loans for the September 2016 periods listed were as follows: Nine Months Ended As of September 30, 2016 September 30, 2016 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance 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 $ $ $ $ $ Impaired loans by class of loans as of December 31, 2015 and for the nine months ended September 30, 2015 were as follows: Nine Months Ended As of December 31, 2015 September 30, 2015 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance 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 for all loans, including TDRs, 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. The allowance for loan losses also includes an allowance based on a loss migration analysis for each loan category on loans that are not individually evaluated for specific impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment. TDRs that were modified during the period are as follows: TDR Modifications TDR Modifications Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 # of Pre-modification Post-modification # of Pre-modification Post-modification contracts recorded investment recorded investment contracts recorded investment recorded investment Troubled debt restructurings Real estate - commercial Other 1 - $ - $ - $ $ Real estate - residential Owner occupied HAMP 2 - - - Revolving and junior liens HAMP 2 - - - Other 1 Total $ $ $ $ TDR Modifications TDR Modifications Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 # of Pre-modification Post-modification # of Pre-modification Post-modification contracts recorded investment recorded investment contracts recorded investment recorded investment Troubled debt restructurings Real estate - residential Owner occupied Other 1 - $ - $ - $ $ Revolving and junior liens HAMP 2 Other 1 Total $ $ $ $ 1 Other: Change of terms from bankruptcy court 2 HAMP: Home Affordable Modification Program TDRs are classified as being in default on a case-by-case basis when they fail to be in compliance with the modified terms. There was no TDR default activity for three and nine months ending September 30, 2016, and September 30, 2015, for loans that were restructured within the 12 month period prior to default.

Allowance for Loan Losses

Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2016
Allowance for Loan Losses
Allowance for Loan Losses	Note 4 – Allowance for Loan Losses Changes in the allowance for loan losses by segment of loans based on method of impairment for three and nine months ending September 30, 2016, were as follows: Allowance for loan losses: Real Estate Real Estate Real Estate Commercial Commercial Construction Residential Consumer Other Total Three months ended September 30, 2016 Beginning balance $ $ $ $ $ $ $ Charge-offs - Recoveries - Provision (Release) - Ending balance $ $ $ $ $ $ $ Nine months ended September 30, 2016 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 September 30, 2015, were as follows: Allowance for loan losses: Real Estate Real Estate Real Estate Commercial Commercial Construction Residential Consumer Other Total Three months ended September 30, 2015 Beginning balance $ $ $ $ $ $ $ Charge-offs - - Recoveries - Provision (Release) Ending balance $ $ $ $ $ $ $ Nine months ended September 30, 2015 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 $ $ $ $ $ $ $

Other Real Estate Owned

Other Real Estate Owned	9 Months Ended
	Sep. 30, 2016
Other Real Estate Owned
Other Real Estate Owned	Note 5 – 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: Three Months Ended Nine Months Ended September 30, September 30, Other real estate owned 2016 2015 2016 2015 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: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 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: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Gain on sales, net $ $ $ $ Provision for unrealized losses Operating expenses Less: Lease revenue Net OREO expense $ $ $ $

Deposits

Deposits	9 Months Ended
	Sep. 30, 2016
Deposits
Deposits	Note 6 – Deposits Major classifications of deposits were as follows: September 30, 2016 December 31, 2015 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 Total deposits $ $

Borrowings

Borrowings	9 Months Ended
	Sep. 30, 2016
Borrowings
Borrowings	Note 7 – Borrowings The following table is a summary of borrowings as of September 30, 2016, and December 31, 2015. Junior subordinated debentures are discussed in detail in Note 8: September 30, 2016 December 31, 2015 Securities sold under repurchase agreements $ $ FHLBC advances 1 - Junior subordinated debentures Subordinated debt Notes payable and other borrowings Total borrowings $ $ 1 Included in other short-term borrowings on the balance sheet. The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature overnight 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 $46.6 million at September 30, 2016, and $34.1 million at December 31, 2015. The fair value of the pledged collateral was $47.6 million at September 30, 2016 and $45.4 million at December 31, 2015. At September 30, 2016, there was one customer with secured balances exceeding 10% of stockholders’ equity. 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 September 30, 2016, the Bank had no advances outstanding under the FHLBC as compared to $15 million outstanding as of December 31, 2015. As of September 30, 2016, FHLBC stock held was valued at $3.2 million, and any potential FHLBC advances were collateralized by securities with a fair value of $65.4 million and loans with a principal balance of $176.4 million, which carried a FHLBC calculated combined collateral value of $178.6 million. The Company had excess collateral of $142.3 million available to secure borrowings at September 30, 2016. One of the Company’s most significant borrowing relationships continued to be the $45.5 million credit facility with a correspondent bank. That credit began in January 2008 and was originally composed of a $30.5 million senior debt facility, which included $500,000 in term debt, and $45.0 million of subordinated debt. The subordinated debt and the term debt portion of the senior debt facility mature on March 31, 2018. The interest rate on the senior debt facility resets quarterly and at the Company’s option, is based on either 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 no principal outstanding balance on the senior line of credit portion of the senior debt facility when it matured and was terminated. The Company had $500,000 in principal outstanding in term debt and $45.0 million in principal outstanding in subordinated debt at both September 30, 2016, and December 31, 2015. 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 September 30, 2016, and December 31, 2015, the Company was in compliance with all covenants contained within the credit agreement.

Junior Subordinated Debentures

Junior Subordinated Debentures	9 Months Ended
	Sep. 30, 2016
Junior Subordinated Debentures
Junior Subordinated Debentures	Note 8 – 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 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. 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 issued 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 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. 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. As of September 30, 2016, the Company is current on the payments due on these securities.

Equity Compensation Plans

Equity Compensation Plans	9 Months Ended
	Sep. 30, 2016
Equity Compensation Plans
Equity Compensation Plans	Note 9 – Equity Compensation Plans Stock-based awards are 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; a maximum of 375,000 shares were authorized to be issued under this plan. Following approval of the 2014 Plan, no further awards will be granted under the 2008 Plan or any other Company equity compensation plan. At the May 2016 annual stockholders meeting, an amendment to the 2014 Plan authorized an additional 600,000 shares to be issued, which resulted in a total of 975,000 shares authorized for issuance under this plan. The 2014 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 September 30, 2016, 596,007 shares remained available for issuance under the 2014 Plan. Total compensation cost that has been charged for the Plans was $482,000 in the first nine months of 2016. There were no stock options granted in the third quarter of 2016 and 2015. All stock options are granted for a term of ten years. There were no stock options exercised during the third quarter of 2016 and 2015 or for the first nine months of 2016 and 2015. There is no unrecognized compensation cost related to unvested stock options as all stock options of the Company’s common stock have fully vested. A summary of stock option activity in the Plans for the nine months ending September 30, 2016, 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, but do not entitle holders to voting rights until the restricted period ends and shares are transferred in connection with the units. There were 130,000 restricted awards issued under the Plans during the nine months ending September 30, 2016. There were 101,500 restricted awards issued during the nine months ending September 30, 2015 . 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 nine months ending September 30, 2016, is as follows: September 30, 2016 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Nonvested at January 1 $ Granted Vested Forfeited Nonvested at September 30 $ Total unrecognized compensation cost of restricted awards was $1.1 million as of September 30, 2016, which is expected to be recognized over a weighted-average period of 1.99 years. Total unrecognized compensation cost of restricted awards was $869,000 as of September 30, 2015, which was expected to be recognized over a weighted-average period of 2.12 years.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share
Earnings Per Share	Note 10 – Earnings Per Share The earnings per share – both basic and diluted – are included below as of September 30 (in thousands except for share data): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Basic earnings per share: Weighted-average common shares outstanding Net income $ $ $ $ Preferred stock dividends and accretion - - Net earnings available to common stockholders $ $ $ $ Basic earnings per share $ $ $ $ Diluted earnings per share: Weighted-average common shares outstanding Dilutive effect of nonvested restricted awards 1 Dilutive effect of stock options - - 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, at an exercise price of $13.43 per share, that was outstanding as of September 30, 2016, and September 30, 2015, because the warrant was anti-dilutive. Of note, the ten year warrant was issued in 2009, and was sold at auction by the Treasury in June 2013 to a third party investor.

Regulatory & Capital Matters

Regulatory & Capital Matters	9 Months Ended
	Sep. 30, 2016
Regulatory & Capital Matters
Regulatory & Capital Matters	Note 11 – 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%). At September 30, 2016, the Bank exceeded those thresholds. At September 30, 2016, the Bank’s Tier 1 capital leverage ratio was 10.65%, an increase of 71 basis points from December 31, 2015, and well above the 8.00% objective. The Bank’s total capital ratio was 16.24%, an increase of 101 basis points from December 31, 2015, and also well above the objective of 12.00%. 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 are shown in the accompanying table, as are the capital ratios of the Company and the Bank, as of September 30, 2016, and December 31, 2015. 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 Company’s Form 10-K for the year ended December 31, 2015, under the heading “Supervision and Regulation.” At September 30, 2016, the Company, on a consolidated basis, exceeded the minimum thresholds to be considered “adequately capitalized” under current regulatory defined capital ratios. Capital levels and industry defined regulatory minimum required levels are as follows: Minimum Capital To Be Well Capitalized Under Adequacy with Capital Prompt Corrective Actual Conservation Buffer if applicable 1 Action Provisions 2 Amount Ratio Amount Ratio Amount Ratio September 30, 2016 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 December 31, 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 1 As of September 30, 2016, amounts are shown inclusive of a capital conservation buffer of 0.625% 2 The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.” Dividend Restrictions 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% for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter of minimum capital requirements in order to avoid additional limitations on capital distributions.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Fair Value Measurements	Note 12 – 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 nine months ended September 30, 2016, there were no significant transfers between levels. For the nine months ended September 30, 2015, there was a transfer of $24.9 million from Level 3 to Level 2 in asset-backed securities. The 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. · Auction rate securities are priced using market spreads, cash flows, prepayment speeds, and loss analytics. Therefore, the valuations of auction rate asset-backed securities are considered Level 2 valuations. · Asset-backed collateralized loan obligations were priced using data from a pricing matrix supported by our bond accounting service provider and are therefore considered Level 2 valuations. · Annually 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, usually in the last quarter of the year, 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 at September 30, 2016, and December 31, 2015, respectively, measured by the Company at fair value on a recurring basis: September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale 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, 2015 Level 1 Level 2 Level 3 Total Assets: 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 net of swap credit valuation) - - Other assets (Mortgage banking derivatives) - - Total $ $ $ $ Liabilities: Other liabilities (Interest rate swap agreements) $ - $ $ - $ Total $ - $ $ - $ The significant increase in the total assets measured at fair value on a recurring basis is primarily due to the $244.8 million transfer of securities held-to-maturity to securities available-for-sale in the second quarter of 2016, partially offset by the sale of securities in the third quarter of 2016 to satisfy funding needs for the Talmer branch acquisition. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: Nine Months Ended September 30, 2016 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2016 $ $ 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 September 30, 2016 $ - $ Nine Months Ended September 30, 2015 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 September 30, 2015 $ - $ $ The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of September 30, 2016: 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 10.0-17.0% % Prepayment Speed 6.0-40.2% % The following table and commentary presents quantitative 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% % 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 September 30, 2016, and December 31, 2015, respectively, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: September 30, 2016 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 $864,000 with a valuation allowance of $514,000 resulting in an increase of specific allocations within the allowance for loan losses of $480,000 for the nine months ending September 30, 2016. 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $14.1 million, which is made up of the outstanding balance of $29.1 million, net of a valuation allowance of $13.3 million and participations of $1.7 million, at September 30, 2016. 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 provision 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. 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	9 Months Ended
	Sep. 30, 2016
Fair Values of Financial Instruments
Fair Values of Financial Instruments	Note 13 – Fair Values of Financial Instruments The estimated fair values approximate carrying amount for all items except those described in the following table. Securities available-for-sale 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. FHLBC stock is carried at cost and considered 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 carrying amount and estimated fair values of financial instruments were as follows: September 30, 2016 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 - - FHLBC and Reserve Bank Stock - - Loans held-for-sale - - Loans - - 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, 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 - - Loans held-for-sale - - Loans - - 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 - -

Financial Instruments with Off-

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	9 Months Ended
	Sep. 30, 2016
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	Note 14 – 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 September 30, 2016, 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 assets with changes in fair value recorded in other comprehensive income. 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 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 September 30, 2016 December 31, 2015 Notional amount $ $ Unrealized loss Other 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. Per contractual requirements with the correspondent financial institution, the Bank had $7.5 million in securities available-for-sale pledged to support interest rate swap activity with two correspondent financial institutions at September 30, 2016. The Bank had $2.4 million in securities pledged to support interest rate swap activity with two correspondent financial institutions at December 31, 2015. 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. Fair value measurements include an assessment of credit risk related to the client’s ability to perform on their contract position, however, and valuation estimates related to that exposure are discussed in Note 12 above. At September 30, 2016, the notional amount of non-hedging interest rate swaps was $66.9 million with a weighted average maturity of 7 years. 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. 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 September 30, 2016, 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, 2015. 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 and forward loan contracts. The Bank also issues letters of credit, which are conditional commitments that guarantee the performance of a customer to a third party. The credit risk involved and collateral obtained in issuing letters of credit are essentially the same as that involved in extending loan commitments to our customers. In addition to customer related commitments, the Company is responsible for letters of credit commitments that relate to properties held in OREO. The following table represents the Company’s contractual commitments due to letters of credit as of September 30, 2016, and December 31, 2015. The following table is a summary of letter of credit commitments (in thousands): September 30, 2016 December 31, 2015 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ $ $ $ $ $ Commercial standby - - Performance standby Non-borrower: Performance standby - - Total letters of credit $ $ $ $ $ $

Series B Preferred Stock

Series B Preferred Stock	9 Months Ended
	Sep. 30, 2016
Preferred Stock
Series B Preferred Stock	Note 15 – Series B Preferred Stock (“Series B Stock”) The Series B Stock was issued as part of the Treasury’s Troubled Asset Relief Program and Capital Repurchase Program during the first quarter of 2009. In the second quarter of 2014, the Company completed redemption of 25,669 shares of the Series B Stock. The Company redeemed 15,778 shares of its Series B Stock in the first quarter of 2015 and the remaining 13,553 shares of its Series B Stock in the third quarter of 2015. During the years 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 had fully redeemed the Series B Stock.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Summary of Significant Accounting Policies
Recent Accounting Pronouncements	Recent 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. 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 of ASU 2014-09 for an additional year. ASU 2015-14 will be effective for annual reporting periods beginning after December 15, 2017. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. Early application is not permitted. In March 2016, the FASB issued ASU 2016-08 “ Revenue from Contracts with Customers (TOPIC 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ” and in April 2016, the FASB issued ASU 2016-10 “ Revenue from Contracts with Customers (TOPIC 606): Identifying Performance Obligations and Licensing.” ASU 2016-08 requires the entity to determine if it is acting as a principal with control over the goods or services it is contractually obligated to provide, or an agent with no control over specified goods or services provided by another party to a customer. ASU 2016-10 was issued to further clarify ASU 2014-09 implementation regarding identifying performance obligation materiality, identification of key contract components, and scope. The Company is assessing the impact of ASU 2014-09 and other related ASUs as noted above on its accounting and disclosures. In April 2015, the FASB issued ASU No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 amended prior guidance to simplify the presentation of debt issuance costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of this standard did not have a material effect to the Company’s operating results or financial condition. This standard was adopted by the Company effective January 2016. In March 2016, the FASB issued ASU No. 2016-09 “ Improvements to Employee Share-Based Payment Accounting. ” FASB issued this ASU as part of the Simplification Initiative. This ASU involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liability, and classification on the statement of cash flows. ASU 2016-09 is effective for financial statements issued for fiscal years beginning after December 15, 2016. The Company is assessing the impact of ASU 2016-09 on its accounting and disclosures. In June 2016, the FASB issued ASU No. 2016-13 “ Measurement of Credit Losses on Financial Instruments. ” ASU 2016-13 was issued to provide financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date to enhance the decision making process. ASU 2016-13 is effective for financial statements issued for fiscal years beginning after December 15, 2019. The Company is assessing the impact of ASU 2016-13 on its accounting and disclosures.

Securities (Tables)

Securities (Tables)	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 Cost Gains Losses Value Securities available-for-sale 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 $ $ $ $ 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 $ $ $ $
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 Total securities available-for-sale $ % $
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 12 months or more September 30, 2016 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 - $ - $ - $ $ $ $ Corporate bonds Collateralized mortgage obligations Asset-backed securities Collateralized loan obligations Total securities available-for-sale $ $ $ $ $ $ Less than 12 months 12 months or more 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 Total securities available-for-sale $ $ $ $ $ $ Securities held-to-maturity Collateralized mortgage obligations $ $ $ $ $ $ Total securities held-to-maturity $ $ $ $ $ $

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2016
Loans
Schedule of major classifications of loans	September 30, 2016 December 31, 2015 Commercial $ $ Real estate - commercial Real estate - construction Real estate - residential Consumer Overdraft Lease financing receivables Other Net deferred loan costs Total loans $ $
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 September 30, 2016 Past Due Past Due Due Due Current Nonaccrual Total Loans Accruing Commercial 1 $ $ - $ - $ $ $ $ $ - 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 - - - - Other 2 - - - - - - Total $ $ $ $ $ $ $ $ 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 1 $ $ - $ - $ $ $ $ $ - 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 - - - - Other 2 - - - - - - Total $ $ $ $ $ $ $ $ 1 The “Commercial” class includes lease financing receivables. 2 The “Other” class includes overdrafts and net deferred costs.
Schedule of credit quality indicators by class of loans	September 30, 2016 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 - - Other - - Total $ $ $ $ - $ 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 - - 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	Nine Months Ended As of September 30, 2016 September 30, 2016 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance 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 $ $ $ $ $ Impaired loans by class of loans as of December 31, 2015 and for the nine months ended September 30, 2015 were as follows: Nine Months Ended As of December 31, 2015 September 30, 2015 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance 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 $ $ $ $ $

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2016
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 three and nine months ending September 30, 2016, were as follows: Allowance for loan losses: Real Estate Real Estate Real Estate Commercial Commercial Construction Residential Consumer Other Total Three months ended September 30, 2016 Beginning balance $ $ $ $ $ $ $ Charge-offs - Recoveries - Provision (Release) - Ending balance $ $ $ $ $ $ $ Nine months ended September 30, 2016 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 September 30, 2015, were as follows: Allowance for loan losses: Real Estate Real Estate Real Estate Commercial Commercial Construction Residential Consumer Other Total Three months ended September 30, 2015 Beginning balance $ $ $ $ $ $ $ Charge-offs - - Recoveries - Provision (Release) Ending balance $ $ $ $ $ $ $ Nine months ended September 30, 2015 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 $ $ $ $ $ $ $

Other Real Estate Owned (Tables

Other Real Estate Owned (Tables)	9 Months Ended
	Sep. 30, 2016
Other Real Estate Owned
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve	Three Months Ended Nine Months Ended September 30, September 30, Other real estate owned 2016 2015 2016 2015 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	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 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	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Gain on sales, net $ $ $ $ Provision for unrealized losses Operating expenses Less: Lease revenue Net OREO expense $ $ $ $

Deposits (Tables)

Deposits (Tables)	9 Months Ended
	Sep. 30, 2016
Deposits
Schedule of major classifications of deposits	September 30, 2016 December 31, 2015 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 Total deposits $ $

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
	Sep. 30, 2016
Borrowings
Summary of borrowings and junior subordinated debentures	September 30, 2016 December 31, 2015 Securities sold under repurchase agreements $ $ FHLBC advances 1 - Junior subordinated debentures Subordinated debt Notes payable and other borrowings Total borrowings $ $

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	9 Months Ended
	Sep. 30, 2016
Equity Compensation Plans
Summary of stock option activity in Incentive Plan	A summary of stock option activity in the Plans for the nine months ending September 30, 2016, 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	September 30, 2016 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Nonvested at January 1 $ Granted Vested Forfeited Nonvested at September 30 $

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share
Schedule of Earnings Per Share	Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Basic earnings per share: Weighted-average common shares outstanding Net income $ $ $ $ Preferred stock dividends and accretion - - Net earnings available to common stockholders $ $ $ $ Basic earnings per share $ $ $ $ Diluted earnings per share: Weighted-average common shares outstanding Dilutive effect of nonvested restricted awards 1 Dilutive effect of stock options - - 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.

Regulatory & Capital Matters (T

Regulatory & Capital Matters (Tables)	9 Months Ended
	Sep. 30, 2016
Regulatory & Capital Matters
Schedule of capital levels and industry defined regulatory minimum required levels	Minimum Capital To Be Well Capitalized Under Adequacy with Capital Prompt Corrective Actual Conservation Buffer if applicable 1 Action Provisions 2 Amount Ratio Amount Ratio Amount Ratio September 30, 2016 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 December 31, 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 1 As of September 30, 2016, amounts are shown inclusive of a capital conservation buffer of 0.625% 2 The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.”

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis	September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale 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, 2015 Level 1 Level 2 Level 3 Total Assets: 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 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	Nine Months Ended September 30, 2016 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2016 $ $ 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 September 30, 2016 $ - $ Nine Months Ended September 30, 2015 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 September 30, 2015 $ - $ $
Schedule of quantitative information about level 3 fair value measurements	The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of September 30, 2016: 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 10.0-17.0% % Prepayment Speed 6.0-40.2% % The following table and commentary presents quantitative 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% %
Schedule of assets and liabilities measured at fair value on a nonrecurring basis	September 30, 2016 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 $864,000 with a valuation allowance of $514,000 resulting in an increase of specific allocations within the allowance for loan losses of $480,000 for the nine months ending September 30, 2016. 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $14.1 million, which is made up of the outstanding balance of $29.1 million, net of a valuation allowance of $13.3 million and participations of $1.7 million, at September 30, 2016. 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 provision 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.

Fair Values of Financial Inst34

Fair Values of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Values of Financial Instruments
Schedule of carrying amount and estimated fair values of financial instruments	September 30, 2016 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 - - FHLBC and Reserve Bank Stock - - Loans held-for-sale - - Loans - - 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, 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 - - Loans held-for-sale - - Loans - - 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 - -

Financial Instruments with Of35

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Tables)	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 December 31, 2015 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, 2015. 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 and forward loan contracts.
Schedule of financial instrument commitments	September 30, 2016 December 31, 2015 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ $ $ $ $ $ Commercial standby - - Performance standby Non-borrower: Performance standby - - Total letters of credit $ $ $ $ $ $

Summary of Significant Accoun36

Summary of Significant Accounting Policies - Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 28, 2016	Oct. 18, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Cash dividend declared (per share)		$ 0.01
Deposits.			$ 1,777,382	$ 1,759,086
Loans			$ 1,202,852	$ 1,133,715	$ 1,132,912
Subsequent Event | Talmer
Deposits.	$ 48,900
Loans	$ 223,400

Securities - Investment Portfol

Securities - Investment Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Available-for-sale securities
Held-to-maturity reclassified to available-for-sale		$ 244,800
Available-for-sale Securities	$ 531,057		$ 456,066
Pretax realized losses on sale of available-for-sale securities	2,000
FHLB and FRB Stock
FHLBC stock	3,200		3,700
FRB stock	4,800		$ 4,800
Talmer
Available-for-sale securities
Available-for-sale Securities	$ 233,500

Securities - Amortized Cost and

Securities - Amortized Cost and Fair Value (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Securities Available-for-Sale
Amortized Cost	$ 538,539	$ 470,719
Gross Unrealized Gains	4,498	383
Gross Unrealized Losses	(11,980)	(15,036)
Fair Value	531,057	456,066
Securities Held-to-Maturity
Amortized Cost		247,746
Gross Unrealized Gains		4,894
Gross Unrealized Losses		(965)
Fair Value		251,675
U.S. Treasury
Securities Available-for-Sale
Amortized Cost		1,509
Fair Value		1,509
U.S. government agencies
Securities Available-for-Sale
Amortized Cost	1,661	1,683
Gross Unrealized Losses	(158)	(127)
Fair Value	1,503	1,556
States and political subdivisions
Securities Available-for-Sale
Amortized Cost	21,489	30,341
Gross Unrealized Gains	765	285
Gross Unrealized Losses		(100)
Fair Value	22,254	30,526
Corporate bonds
Securities Available-for-Sale
Amortized Cost	10,958	30,157
Gross Unrealized Losses	(228)	(757)
Fair Value	10,730	29,400
Collateralized mortgage obligations
Securities Available-for-Sale
Amortized Cost	202,670	68,743
Gross Unrealized Gains	2,478	24
Gross Unrealized Losses	(758)	(1,847)
Fair Value	204,390	66,920
Securities Held-to-Maturity
Amortized Cost		211,241
Gross Unrealized Gains		3,302
Gross Unrealized Losses		(965)
Fair Value		213,578
Asset-backed securities
Securities Available-for-Sale
Amortized Cost	149,394	241,872
Gross Unrealized Gains	431	74
Gross Unrealized Losses	(9,652)	(10,038)
Fair Value	140,173	231,908
FFEL
Other disclosures
Asset-backed securities	$ 118,900
Percentage of outstanding principal amount of loans guaranteed by US Department of Education	97
Total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal	$ 12,800
Percentage of total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal	9.62
Collateralized loan obligations
Securities Available-for-Sale
Amortized Cost	$ 109,468	94,374
Gross Unrealized Losses	(1,184)	(2,123)
Fair Value	108,284	92,251
U.S. government agency mortgage-backed
Securities Available-for-Sale
Amortized Cost	42,899	2,040
Gross Unrealized Gains	824
Gross Unrealized Losses		(44)
Fair Value	$ 43,723	1,996
Securities Held-to-Maturity
Amortized Cost		36,505
Gross Unrealized Gains		1,592
Fair Value		$ 38,097

Securities - Contractural Matur

Securities - Contractural Maturities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Securities Available-for-Sale, Amortized Cost
Due in one year or less	$ 410
Due after one year through five years	11,575
Due after five years through ten years	18,573
Due after ten years	3,550
Debt securities excluding securities not due at a single maturity date	34,108
Total	$ 538,539	$ 470,719
Securities Available-for-Sale, Weighted Average Yield
Due in one year or less (as a percent)	4.60%
Due after one year through five years (as a percent)	2.31%
Due after five years through ten years (as a percent)	2.43%
Due after ten years (as a percent)	2.77%
Debt securities (as a percent)	2.45%
Total (as a percent)	2.55%
Securities Available-for-Sale, Fair Value
Due in one year or less	$ 420
Due after one year through five years	11,734
Due after five years through ten years	18,538
Due after ten years	3,795
Debt securities	34,487
Fair Value	531,057	456,066
Securities Held-to-Maturity, Amortized Cost
Amortized Cost		247,746
Securities Held-to-Maturity, Fair Value
Fair Value		251,675
Collateralized mortgage obligations
Securities Available-for-Sale, Amortized Cost
Total	202,670	68,743
Securities Available-for-Sale, Fair Value
Fair Value	204,390	66,920
Securities Held-to-Maturity, Amortized Cost
Amortized Cost		211,241
Securities Held-to-Maturity, Fair Value
Fair Value		213,578
Asset-backed securities
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	149,394
Total	$ 149,394	241,872
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	1.95%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 140,173
Fair Value	140,173	231,908
Collateralized loan obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	109,468
Total	$ 109,468	94,374
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	3.66%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 108,284
Fair Value	108,284	$ 92,251
Mortgage-backed and collateralized mortgage obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	$ 245,569
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	2.43%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 248,113

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)security	Sep. 30, 2016USD ($)security
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	26	20
Greater than 12 months in an unrealized loss position | security	29	31
Total | security	55	51
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 3,215	$ 1,209
Greater than 12 months in an unrealized loss position	11,821	10,771
Total	15,036	11,980
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	142,402	92,145
Greater than 12 months in an unrealized loss position	245,409	204,599
Total	$ 387,811	$ 296,744
Securities Held-to-Maturity, Number of Securities
Less than 12 months in an unrealized loss position | security	8
Greater than 12 months in an unrealized loss position | security	2
Total | security	10
Securities Held-to-Maturity, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 505
Greater than 12 months in an unrealized loss position	460
Total	965
Securities Held-to-Maturity, Fair Value
Less than 12 months in an unrealized loss position	40,307
Greater than 12 months in an unrealized loss position	33,842
Total	$ 74,149
U.S. Treasury
Securities Available-for-Sale, Number of Securities
Greater than 12 months in an unrealized loss position | security	1
Total | security	1
Securities Available-for-Sale, Unrealized Losses
Greater than 12 months in an unrealized loss position	$ 127
Total	127
Securities Available-for-Sale, Fair Value
Greater than 12 months in an unrealized loss position	1,556
Total	$ 1,556
U.S. government agencies
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	1
Greater than 12 months in an unrealized loss position | security		1
Total | security	1	1
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 44
Greater than 12 months in an unrealized loss position		$ 158
Total	44	158
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	1,996
Greater than 12 months in an unrealized loss position		1,503
Total	$ 1,996	$ 1,503
States and political subdivisions
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	2
Greater than 12 months in an unrealized loss position | security	1
Total | security	3
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 19
Greater than 12 months in an unrealized loss position	81
Total	100
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	1,541
Greater than 12 months in an unrealized loss position	1,713
Total	$ 3,254
Corporate bonds
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	5	2
Greater than 12 months in an unrealized loss position | security	3	2
Total | security	8	4
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 292	$ 52
Greater than 12 months in an unrealized loss position	465	176
Total	757	228
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	14,866	5,423
Greater than 12 months in an unrealized loss position	14,534	5,307
Total	$ 29,400	$ 10,730
Collateralized mortgage obligations
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	4	10
Greater than 12 months in an unrealized loss position | security	7	6
Total | security	11	16
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 334	$ 415
Greater than 12 months in an unrealized loss position	1,513	343
Total	1,847	758
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	16,218	50,958
Greater than 12 months in an unrealized loss position	43,618	17,020
Total	$ 59,836	$ 67,978
Securities Held-to-Maturity, Number of Securities
Less than 12 months in an unrealized loss position | security	8
Greater than 12 months in an unrealized loss position | security	2
Total | security	10
Securities Held-to-Maturity, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 505
Greater than 12 months in an unrealized loss position	460
Total	965
Securities Held-to-Maturity, Fair Value
Less than 12 months in an unrealized loss position	40,307
Greater than 12 months in an unrealized loss position	33,842
Total	$ 74,149
Asset-backed securities
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	9	6
Greater than 12 months in an unrealized loss position | security	8	10
Total | security	17	16
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 2,080	$ 694
Greater than 12 months in an unrealized loss position	7,958	8,958
Total	10,038	9,652
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	78,301	23,817
Greater than 12 months in an unrealized loss position	121,217	99,432
Total	$ 199,518	$ 123,249
Collateralized loan obligations
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	5	2
Greater than 12 months in an unrealized loss position | security	9	12
Total | security	14	14
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 446	$ 48
Greater than 12 months in an unrealized loss position	1,677	1,136
Total	2,123	1,184
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	29,480	11,947
Greater than 12 months in an unrealized loss position	62,771	81,337
Total	$ 92,251	$ 93,284

Loans - Major Classifications (

Loans - Major Classifications (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Loans
Total loans, gross	$ 1,201,788	$ 1,132,678
Net deferred loan fees	1,064	1,037
Total Loans	1,202,852	1,133,715	$ 1,132,912
Overdraft
Loans
Total loans, gross	403	483
Other
Loans
Total loans, gross	10,114	10,130
Commercial
Loans
Total loans, gross	169,824	130,362
Total Loans	184,034	141,315	129,733
Real estate - commercial
Loans
Total loans, gross	617,280	605,721
Total Loans	617,280		609,937
Real estate - commercial | Construction Loans
Loans
Total loans, gross	28,786	19,806
Total Loans	28,786		23,461
Real estate - residential
Loans
Total loans, gross	357,846	351,007
Total Loans	357,846		354,106
Consumer
Loans
Total loans, gross	3,325	4,216
Total Loans	3,325	4,216	$ 4,005
Lease financing receivables
Loans
Total loans, gross	$ 14,210	$ 10,953

Loans - Major Classifications -

Loans - Major Classifications - Loan Concentrations (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Total real estate | Loan receivables | Customer concentration risk
Loans
Loans receivable as a percentage of total portfolio	83.50%	86.10%

Loans - Aging Analysis (Details

Loans - Aging Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Aged analysis of past due loans
Total Past Due	$ 3,869	$ 3,717
Current	1,182,247	1,115,609
Nonaccrual	16,736	14,389
Total Loans	1,202,852	1,133,715	$ 1,132,912
Recorded Investment 90 days or Greater Past Due and Accruing	483	65
30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	1,732	2,942
60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	1,654	710
90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	483	65
Commercial
Aged analysis of past due loans
Total Past Due	182	394
Current	183,269	140,848
Nonaccrual	583	73
Total Loans	184,034	141,315	129,733
Commercial | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	182	394
Real estate - commercial
Aged analysis of past due loans
Total Loans	617,280		609,937
Real estate - commercial | Owner occupied general purpose
Aged analysis of past due loans
Total Past Due	96	771
Current	125,733	123,479
Nonaccrual	1,492	1,254
Total Loans	127,321	125,504
Real estate - commercial | Owner occupied general purpose | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	96	652
Real estate - commercial | Owner occupied general purpose | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		119
Real estate - commercial | Owner occupied special purpose
Aged analysis of past due loans
Total Past Due		358
Current	167,664	170,827
Nonaccrual	397	763
Total Loans	168,061	171,948
Real estate - commercial | Owner occupied special purpose | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		358
Real estate - commercial | Non-owner occupied general purpose
Aged analysis of past due loans
Total Past Due	789
Current	159,923	166,668
Nonaccrual	2,463	975
Total Loans	163,175	167,643
Real estate - commercial | Non-owner occupied general purpose | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	789
Real estate - commercial | Non-owner occupied special purpose
Aged analysis of past due loans
Current	103,990	92,387
Nonaccrual	1,013
Total Loans	105,003	92,387
Real estate - commercial | Retail properties
Aged analysis of past due loans
Current	37,685	34,352
Nonaccrual	1,980
Total Loans	39,665	34,352
Real estate - commercial | Farm
Aged analysis of past due loans
Total Past Due	1,372
Current	12,683	12,615
Nonaccrual		1,272
Total Loans	14,055	13,887
Real estate - commercial | Farm | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	22
Real estate - commercial | Farm | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	1,350
Real estate - residential
Aged analysis of past due loans
Total Loans	357,846		354,106
Real estate - residential | Investor
Aged analysis of past due loans
Total Past Due	1,005	101
Current	129,302	125,611
Nonaccrual	910	972
Total Loans	131,217	126,684
Recorded Investment 90 days or Greater Past Due and Accruing	454
Real estate - residential | Investor | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	419	101
Real estate - residential | Investor | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	132
Real estate - residential | Investor | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	454
Real estate - residential | Owner occupied
Aged analysis of past due loans
Total Past Due	70	1,529
Current	119,854	110,885
Nonaccrual	5,654	6,378
Total Loans	125,578	118,792
Real estate - residential | Owner occupied | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		1,083
Real estate - residential | Owner occupied | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	70	446
Real estate - residential | Revolving and junior liens
Aged analysis of past due loans
Total Past Due	243	412
Current	98,640	102,500
Nonaccrual	2,168	2,619
Total Loans	101,051	105,531
Recorded Investment 90 days or Greater Past Due and Accruing	29
Real estate - residential | Revolving and junior liens | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	112	344
Real estate - residential | Revolving and junior liens | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	102	68
Real estate - residential | Revolving and junior liens | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	29
Consumer
Aged analysis of past due loans
Total Past Due	10	4
Current	3,315	4,212
Total Loans	3,325	4,216	4,005
Consumer | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	10	4
All other
Aged analysis of past due loans
Current	11,581	11,650
Total Loans	11,581	11,650	11,670
Construction Loans | Real estate - commercial
Aged analysis of past due loans
Total Loans	28,786		$ 23,461
Construction Loans | Real estate - commercial | Homebuilder
Aged analysis of past due loans
Current	612	2,604
Total Loans	612	2,604
Construction Loans | Real estate - commercial | Land
Aged analysis of past due loans
Current	1,237	1,137
Total Loans	1,237	1,137
Construction Loans | Real estate - commercial | Commercial speculative
Aged analysis of past due loans
Current	8,901	2,117
Nonaccrual	76	83
Total Loans	8,977	2,200
Construction Loans | Real estate - commercial | All other
Aged analysis of past due loans
Total Past Due	102	148
Current	17,858	13,717
Total Loans	17,960	13,865
Recorded Investment 90 days or Greater Past Due and Accruing		65
Construction Loans | Real estate - commercial | All other | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	$ 102	6
Construction Loans | Real estate - commercial | All other | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		77
Construction Loans | Real estate - commercial | All other | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due		$ 65

Loans - Inclusion (Details)

Loans - Inclusion (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
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	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Loans by risk rating
Total Loans	$ 1,202,852	$ 1,133,715	$ 1,132,912
Commercial
Loans by risk rating
Total Loans	184,034	141,315	129,733
Real estate - commercial
Loans by risk rating
Total Loans	617,280		609,937
Real estate - commercial | Owner occupied general purpose
Loans by risk rating
Total Loans	127,321	125,504
Real estate - commercial | Owner occupied special purpose
Loans by risk rating
Total Loans	168,061	171,948
Real estate - commercial | Non-owner occupied general purpose
Loans by risk rating
Total Loans	163,175	167,643
Real estate - commercial | Non-owner occupied special purpose
Loans by risk rating
Total Loans	105,003	92,387
Real estate - commercial | Retail properties
Loans by risk rating
Total Loans	39,665	34,352
Real estate - commercial | Farm
Loans by risk rating
Total Loans	14,055	13,887
Real estate - residential
Loans by risk rating
Total Loans	357,846		354,106
Real estate - residential | Investor
Loans by risk rating
Total Loans	131,217	126,684
Real estate - residential | Owner occupied
Loans by risk rating
Total Loans	125,578	118,792
Real estate - residential | Revolving and junior liens
Loans by risk rating
Total Loans	101,051	105,531
Consumer
Loans by risk rating
Total Loans	3,325	4,216	4,005
All other
Loans by risk rating
Total Loans	11,581	11,650	11,670
Pass
Loans by risk rating
Total Loans	1,165,452	1,101,886
Pass | Commercial
Loans by risk rating
Total Loans	177,082	136,078
Pass | Real estate - commercial | Owner occupied general purpose
Loans by risk rating
Total Loans	124,359	123,827
Pass | Real estate - commercial | Owner occupied special purpose
Loans by risk rating
Total Loans	165,333	171,185
Pass | Real estate - commercial | Non-owner occupied general purpose
Loans by risk rating
Total Loans	160,463	163,956
Pass | Real estate - commercial | Non-owner occupied special purpose
Loans by risk rating
Total Loans	100,191	88,468
Pass | Real estate - commercial | Retail properties
Loans by risk rating
Total Loans	36,435	30,432
Pass | Real estate - commercial | Farm
Loans by risk rating
Total Loans	11,014	12,615
Pass | Real estate - residential | Investor
Loans by risk rating
Total Loans	130,046	125,548
Pass | Real estate - residential | Owner occupied
Loans by risk rating
Total Loans	119,146	111,713
Pass | Real estate - residential | Revolving and junior liens
Loans by risk rating
Total Loans	97,973	102,476
Pass | Consumer
Loans by risk rating
Total Loans	3,324	4,215
Pass | All other
Loans by risk rating
Total Loans	11,554	11,650
Special Mention
Loans by risk rating
Total Loans	9,141	6,606
Special Mention | Commercial
Loans by risk rating
Total Loans	4,650	3,208
Special Mention | Real estate - commercial | Owner occupied general purpose
Loans by risk rating
Total Loans	645
Special Mention | Real estate - commercial | Owner occupied special purpose
Loans by risk rating
Total Loans	2,330
Special Mention | Real estate - commercial | Non-owner occupied general purpose
Loans by risk rating
Total Loans	249	1,908
Special Mention | Real estate - commercial | Retail properties
Loans by risk rating
Total Loans		1,490
Special Mention | Real estate - commercial | Farm
Loans by risk rating
Total Loans	1,240
Special Mention | All other
Loans by risk rating
Total Loans	27
Substandard
Loans by risk rating
Total Loans	28,259	25,223
Substandard | Commercial
Loans by risk rating
Total Loans	2,302	2,029
Substandard | Real estate - commercial | Owner occupied general purpose
Loans by risk rating
Total Loans	2,317	1,677
Substandard | Real estate - commercial | Owner occupied special purpose
Loans by risk rating
Total Loans	398	763
Substandard | Real estate - commercial | Non-owner occupied general purpose
Loans by risk rating
Total Loans	2,463	1,779
Substandard | Real estate - commercial | Non-owner occupied special purpose
Loans by risk rating
Total Loans	4,812	3,919
Substandard | Real estate - commercial | Retail properties
Loans by risk rating
Total Loans	3,230	2,430
Substandard | Real estate - commercial | Farm
Loans by risk rating
Total Loans	1,801	1,272
Substandard | Real estate - residential | Investor
Loans by risk rating
Total Loans	1,171	1,136
Substandard | Real estate - residential | Owner occupied
Loans by risk rating
Total Loans	6,432	7,079
Substandard | Real estate - residential | Revolving and junior liens
Loans by risk rating
Total Loans	3,078	3,055
Substandard | Consumer
Loans by risk rating
Total Loans	1	1
Construction Loans | Real estate - commercial
Loans by risk rating
Total Loans	28,786		$ 23,461
Construction Loans | Real estate - commercial | Homebuilder
Loans by risk rating
Total Loans	612	2,604
Construction Loans | Real estate - commercial | Land
Loans by risk rating
Total Loans	1,237	1,137
Construction Loans | Real estate - commercial | Commercial speculative
Loans by risk rating
Total Loans	8,977	2,200
Construction Loans | Real estate - commercial | All other
Loans by risk rating
Total Loans	17,960	13,865
Construction Loans | Pass | Real estate - commercial | Homebuilder
Loans by risk rating
Total Loans	612	2,604
Construction Loans | Pass | Real estate - commercial | Land
Loans by risk rating
Total Loans	1,237	1,137
Construction Loans | Pass | Real estate - commercial | Commercial speculative
Loans by risk rating
Total Loans	8,901	2,117
Construction Loans | Pass | Real estate - commercial | All other
Loans by risk rating
Total Loans	17,782	13,865
Construction Loans | Substandard | Real estate - commercial | Commercial speculative
Loans by risk rating
Total Loans	76	$ 83
Construction Loans | Substandard | Real estate - commercial | All other
Loans by risk rating
Total Loans	$ 178

Loans - Repossessed Assets (Det

Loans - Repossessed Assets (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Real estate - residential
Repossessed and foreclosed assets
Real estate assets in process of foreclosure	$ 2.2	$ 3.9

Loans - Impaired Loans - Record

Loans - Impaired Loans - Recorded Investment, Unpaid Principal Balance and Related Allowance (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Recorded Investment
With no related allowance recorded	$ 22,259	$ 20,725
With an allowance recorded	864	161
Total impaired loans	23,123	20,886
Unpaid Principal Balance
With no related allowance recorded	26,830	24,718
With an allowance recorded	1,242	166
Total impaired loans	28,072	24,884
Related Allowance
With an allowance recorded	514	34
Commercial
Recorded Investment
With no related allowance recorded	382	70
With an allowance recorded		3
Unpaid Principal Balance
With no related allowance recorded	464	149
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	2,509	2,314
Unpaid Principal Balance
With no related allowance recorded	2,807	3,004
Real estate - commercial | Owner occupied special purpose
Recorded Investment
With no related allowance recorded	397	763
Unpaid Principal Balance
With no related allowance recorded	525	871
Real estate - commercial | Non-owner occupied general purpose
Recorded Investment
With no related allowance recorded	2,263	1,047
With an allowance recorded	264
Unpaid Principal Balance
With no related allowance recorded	2,458	1,065
With an allowance recorded	603
Related Allowance
With an allowance recorded	264
Real estate - commercial | Non-owner occupied special purpose
Recorded Investment
With no related allowance recorded	1,013
Unpaid Principal Balance
With no related allowance recorded	1,649
Real estate - commercial | Retail properties
Recorded Investment
With no related allowance recorded	1,980
Unpaid Principal Balance
With no related allowance recorded	2,364
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 - residential | Investor
Recorded Investment
With no related allowance recorded	1,822	1,906
Unpaid Principal Balance
With no related allowance recorded	2,156	2,259
Real estate - residential | Owner occupied
Recorded Investment
With no related allowance recorded	9,294	10,539
With an allowance recorded	600	112
Unpaid Principal Balance
With no related allowance recorded	10,720	11,999
With an allowance recorded	639	112
Related Allowance
With an allowance recorded	250	31
Real estate - residential | Revolving and junior liens
Recorded Investment
With no related allowance recorded	2,322	2,731
With an allowance recorded		46
Unpaid Principal Balance
With no related allowance recorded	3,336	3,947
With an allowance recorded		46
Consumer
Recorded Investment
With no related allowance recorded	201
Unpaid Principal Balance
With no related allowance recorded	268
Construction Loans | Real estate - commercial | Commercial speculative
Recorded Investment
With no related allowance recorded	76	83
Unpaid Principal Balance
With no related allowance recorded	$ 83	$ 86

Loans - Impaired Loans - Averag

Loans - Impaired Loans - Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Average Recorded Investment
With no related allowance recorded	$ 21,492	$ 29,891
With an allowance recorded	513	618
Total impaired loans	22,005	30,509
Interest Income Recognized
With no related allowance recorded	232	227
With an allowance recorded	31	2
Total impaired loans	263	229
Commercial
Average Recorded Investment
With no related allowance recorded	226	1,014
With an allowance recorded	2	2
Real estate - commercial | Owner occupied general purpose
Average Recorded Investment
With no related allowance recorded	2,412	4,857
Interest Income Recognized
With no related allowance recorded	66	62
Real estate - commercial | Owner occupied special purpose
Average Recorded Investment
With no related allowance recorded	580	1,288
Real estate - commercial | Non-owner occupied general purpose
Average Recorded Investment
With no related allowance recorded	1,655	2,583
With an allowance recorded	132	38
Interest Income Recognized
With no related allowance recorded	2
With an allowance recorded	31
Real estate - commercial | Non-owner occupied special purpose
Average Recorded Investment
With no related allowance recorded	506	712
Real estate - commercial | Retail properties
Average Recorded Investment
With no related allowance recorded	990
Real estate - commercial | Farm
Average Recorded Investment
With no related allowance recorded	636	636
Real estate - residential | Investor
Average Recorded Investment
With no related allowance recorded	1,864	2,050
With an allowance recorded		67
Interest Income Recognized
With no related allowance recorded	35	33
Real estate - residential | Owner occupied
Average Recorded Investment
With no related allowance recorded	9,916	11,309
With an allowance recorded	356	12
Interest Income Recognized
With no related allowance recorded	120	128
Real estate - residential | Revolving and junior liens
Average Recorded Investment
With no related allowance recorded	2,527	2,500
With an allowance recorded	23	364
Interest Income Recognized
With no related allowance recorded	9	4
With an allowance recorded		2
Consumer
Average Recorded Investment
With no related allowance recorded	100
Construction Loans | Real estate - commercial | Homebuilder
Average Recorded Investment
With no related allowance recorded		896
Construction Loans | Real estate - commercial | Commercial speculative
Average Recorded Investment
With no related allowance recorded	$ 80	1,780
Construction Loans | Real estate - commercial | All other
Average Recorded Investment
With no related allowance recorded		266
With an allowance recorded		$ 135

Loans - TDR (Details)

Loans - TDR (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)contract	Sep. 30, 2015USD ($)contract	Sep. 30, 2016USD ($)contract	Sep. 30, 2015USD ($)contract	Dec. 31, 2015USD ($)
Troubled debt restructurings - modified during the period
# of contracts | contract	1	4	8	10
Pre-modification recorded investment	$ 70	$ 423	$ 1,090	$ 960
Post-modification recorded investment	$ 70	$ 360	$ 949	$ 903
TDR's defaulted
# of contracts | contract	0	0	0	0
Other information
Total Past Due	$ 3,869		$ 3,869		$ 3,717
Other
Troubled debt restructurings - modified during the period
# of contracts | contract	1	3	1	3
Pre-modification recorded investment	$ 70	$ 378	$ 70	$ 378
Post-modification recorded investment	70	$ 349	$ 70	$ 349
HAMP
Troubled debt restructurings - modified during the period
# of contracts | contract		1		4
Pre-modification recorded investment		$ 45		$ 178
Post-modification recorded investment		$ 11		$ 142
Real estate - commercial | Other
Troubled debt restructurings - modified during the period
# of contracts | contract			2
Pre-modification recorded investment			$ 312
Post-modification recorded investment			211
Real estate - commercial | Owner occupied special purpose
Other information
Total Past Due					358
Real estate - commercial | Owner occupied general purpose
Other information
Total Past Due	96		96		771
Real estate - commercial | Non-owner occupied general purpose
Other information
Total Past Due	789		789
Real estate - residential | Investor
Other information
Total Past Due	1,005		1,005		101
Real estate - residential | Owner occupied
Other information
Total Past Due	70		$ 70		1,529
Real estate - residential | Owner occupied | Other
Troubled debt restructurings - modified during the period
# of contracts | contract				3
Pre-modification recorded investment				$ 404
Post-modification recorded investment				$ 412
Real estate - residential | Owner occupied | HAMP
Troubled debt restructurings - modified during the period
# of contracts | contract			1
Pre-modification recorded investment			$ 239
Post-modification recorded investment			235
Real estate - residential | Revolving and junior liens
Other information
Total Past Due	243		$ 243		412
Real estate - residential | Revolving and junior liens | HAMP
Troubled debt restructurings - modified during the period
# of contracts | contract			4
Pre-modification recorded investment			$ 469
Post-modification recorded investment			433
Commercial
Other information
Total Past Due	182		182		394
90 Days or Greater Past Due
Other information
Total Past Due	483		483		$ 65
90 Days or Greater Past Due | Real estate - residential | Investor
Other information
Total Past Due	454		454
90 Days or Greater Past Due | Real estate - residential | Revolving and junior liens
Other information
Total Past Due	$ 29		$ 29

Allowance for Loan Losses (Deta

Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Allowance for loan losses:
Beginning Balance	$ 15,822	$ 18,321	$ 16,223	$ 21,637
Charge-offs	1,197	576	2,508	3,982
Recoveries	358	968	1,268	3,358
(Release) provision		(2,100)		(4,400)
Ending Balance	14,983	16,613	14,983	16,613
Ending balance: Individually evaluated for impairment	514	25	514	25
Ending balance: Collectively evaluated for impairment	14,469	16,588	14,469	16,588
Loans:
Ending balance	1,202,852	1,132,912	1,202,852	1,132,912	$ 1,133,715
Ending balance: Individually evaluated for impairment	23,123	25,132	23,123	25,132
Ending balance: Collectively evaluated for impairment	1,179,729	1,107,780	1,179,729	1,107,780
Commercial
Allowance for loan losses:
Beginning Balance	1,695	1,632	2,096	1,644
Charge-offs	76	101	108	991
Recoveries	10	213	22	437
(Release) provision	212	340	(169)	994
Ending Balance	1,841	2,084	1,841	2,084
Ending balance: Individually evaluated for impairment		5		5
Ending balance: Collectively evaluated for impairment	1,841	2,079	1,841	2,079
Loans:
Ending balance	184,034	129,733	184,034	129,733	141,315
Ending balance: Individually evaluated for impairment	382	532	382	532
Ending balance: Collectively evaluated for impairment	183,652	129,201	183,652	129,201
Real estate - commercial
Allowance for loan losses:
Beginning Balance	8,954	10,201	9,013	12,577
Charge-offs	792	21	1,484	1,547
Recoveries	27	275	255	1,570
(Release) provision	753	(1,296)	1,158	(3,441)
Ending Balance	8,942	9,159	8,942	9,159
Ending balance: Individually evaluated for impairment	264		264
Ending balance: Collectively evaluated for impairment	8,678	9,159	8,678	9,159
Loans:
Ending balance	617,280	609,937	617,280	609,937
Ending balance: Individually evaluated for impairment	8,426	4,974	8,426	4,974
Ending balance: Collectively evaluated for impairment	608,854	604,963	608,854	604,963
Real estate - residential
Allowance for loan losses:
Beginning Balance	2,933	1,860	1,694	1,981
Charge-offs	220	342	657	1,119
Recoveries	199	192	718	819
(Release) provision	(577)	(42)	580	(13)
Ending Balance	2,335	1,668	2,335	1,668
Ending balance: Individually evaluated for impairment	250	20	250	20
Ending balance: Collectively evaluated for impairment	2,085	1,648	2,085	1,648
Loans:
Ending balance	357,846	354,106	357,846	354,106
Ending balance: Individually evaluated for impairment	14,038	15,823	14,038	15,823
Ending balance: Collectively evaluated for impairment	343,808	338,283	343,808	338,283
Consumer
Allowance for loan losses:
Beginning Balance	862	1,249	1,190	1,454
Charge-offs	100	112	250	323
Recoveries	62	84	202	262
(Release) provision	113	(68)	(205)	(240)
Ending Balance	937	1,153	937	1,153
Ending balance: Collectively evaluated for impairment	937	1,153	937	1,153
Loans:
Ending balance	3,325	4,005	3,325	4,005	4,216
Ending balance: Individually evaluated for impairment	201		201
Ending balance: Collectively evaluated for impairment	3,124	4,005	3,124	4,005
All other
Allowance for loan losses:
Beginning Balance	998	2,717	1,965	2,506
(Release) provision	(540)	(613)	(1,507)	(402)
Ending Balance	458	2,104	458	2,104
Ending balance: Collectively evaluated for impairment	458	2,104	458	2,104
Loans:
Ending balance	11,581	11,670	11,581	11,670	$ 11,650
Ending balance: Collectively evaluated for impairment	11,581	11,670	11,581	11,670
Construction Loans | Real estate - commercial
Allowance for loan losses:
Beginning Balance	380	662	265	1,475
Charge-offs	9		9	2
Recoveries	60	204	71	270
(Release) provision	39	(421)	143	(1,298)
Ending Balance	470	445	470	445
Ending balance: Collectively evaluated for impairment	470	445	470	445
Loans:
Ending balance	28,786	23,461	28,786	23,461
Ending balance: Individually evaluated for impairment	76	3,803	76	3,803
Ending balance: Collectively evaluated for impairment	$ 28,710	$ 19,658	$ 28,710	$ 19,658

Other Real Estate Owned (Detail

Other Real Estate Owned (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve
Balance at beginning of period	$ 16,252	$ 31,964	$ 19,141	$ 31,982
Property additions	255	846	1,223	7,861
Property improvements	4		16
Less: Property disposals, net of gains/losses	2,002	7,231	4,931	11,567
Less: Period valuation adjustments	365	1,128	1,305	3,825
Balance at end of period	14,144	24,451	14,144	24,451
Activity in the valuation allowance
Balance at beginning of period	13,377	20,069	14,127	19,229
Provision for unrealized losses	365	1,128	1,305	3,825
Reductions taken on sales	(488)	(1,325)	(2,178)	(3,275)
Balance at end of period	13,254	19,872	13,254	19,872
Expenses related to foreclosed assets, net of lease revenue
Gain on sales, net	(249)	(432)	(316)	(769)
Provision for unrealized losses	365	1,128	1,305	3,825
Operating expenses	361	518	1,217	2,268
Less: Lease revenue	51	237	163	607
Expenses related to OREO, net of lease revenue	$ 426	$ 977	$ 2,043	$ 4,717

Deposits - Components and Matur

Deposits - Components and Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Deposits
Noninterest bearing demand	$ 473,477	$ 442,639
Savings	253,454	252,169
NOW accounts	391,188	376,720
Money market accounts	259,495	279,709
Certificates of deposit of less than $100,000	230,748	235,336
Certificates of deposit of $100,000 up to $250,000	105,868	109,855
Certificates of deposit of $250,000 or more	63,152	62,658
Total deposits	$ 1,777,382	$ 1,759,086

Borrowings - Summary (Details)

Borrowings - Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Borrowings
Total borrowings	$ 149,685	$ 152,113
Securities sold under repurchase agreements
Borrowings
Total borrowings	46,606	34,070
FHLBC advances
Borrowings
Total borrowings		15,000
Junior subordinated debentures
Borrowings
Total borrowings	57,579	57,543
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)	9 Months Ended
	Sep. 30, 2016USD ($)item	Dec. 31, 2015USD ($)	Jan. 31, 2008USD ($)
Borrowings
Bank owned FHLBC stock	$ 3,200,000	$ 3,700,000
Total borrowings	149,685,000	152,113,000
Securities sold under repurchase agreements
Borrowings
Carrying amount of securities secured	46,600,000	34,100,000
Fair value of the pledged collateral	$ 47,600,000	45,400,000
Number of customers having secured balances exceeding specified percentage of stockholders equity | item	1
Total borrowings	$ 46,606,000	34,070,000
Securities sold under repurchase agreements | Minimum
Borrowings
Threshold percentage of stockholders' equity	10.00%
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%
FHLBC advance amount		15,000,000
Bank owned FHLBC stock	$ 3,200,000
Fair value of securities collateralized	65,400,000
Principal balance of loans collateralized	176,400,000
Combined collateral value	178,600,000
Amount available for additional borrowings	142,300,000
Total borrowings		15,000,000
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
Borrowings
Maximum borrowing capacity			$ 30,500,000
Senior debt facility | LIBOR
Borrowings
Variable interest rate base	three-month LIBOR
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
Total borrowings	500,000	500,000
Junior subordinated debentures
Borrowings
Total borrowings	$ 57,579,000	$ 57,543,000

Junior Subordinated Debentures

Junior Subordinated Debentures - Issuance (Details) - USD ($) $ in Thousands	1 Months Ended			9 Months Ended
	Apr. 30, 2007	Jul. 31, 2003	Jun. 30, 2003	Sep. 30, 2016	Dec. 31, 2015
Junior subordinated debentures
Junior subordinated debentures				$ 57,579	$ 57,543
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%
Old Second Capital Trust II
Junior subordinated debentures
Proceeds from sale of cumulative trust preferred securities	$ 25,000
Maturity Period				30 years
Old Second Capital Trust II | Debt Instrument, Redemption, Period One [Member]
Junior subordinated debentures
Cash distribution fixed rate of trust preferred securities (as a percent)				6.77%
Old Second Capital Trust II | Debt Instrument, Redemption, Period Two [Member]
Junior subordinated debentures
Basis points added to cash distribution floating rate base (as a percent)				1.50%
Old Second Capital Trust II | Debt Instrument, Redemption, Period Two [Member] | LIBOR
Junior subordinated debentures
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

Equity Compensation Plans - Opt

Equity Compensation Plans - Options (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Equity Compensation Plans
Total compensation cost			$ 482,000
2014 Plan
Equity Compensation Plans
Number of shares issuable	596,007		596,007
Stock options
Equity Compensation Plans
Granted (in shares)	0	0
Term of stock options granted			10 years
Exercised (in shares)	0	0	0	0
Total unrecognized compensation cost	$ 0		$ 0
Shares
Beginning outstanding (in shares)			162,500
Ending outstanding (in shares)	162,500		162,500
Exercisable at end of period (in shares)	162,500		162,500
Weighted Average Exercise Price
Beginning outstanding (in dollars per share)			$ 27.03
Ending outstanding (in dollars per share)	$ 27.03		27.03
Exercisable at end of period (in dollars per share)	$ 27.03		$ 27.03
Weighted Average Remaining Contractual Term (years)
Ending outstanding (in years)			10 months 24 days
Exercisable at end of period			10 months 24 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	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Equity Compensation Plans
Vesting period		3 years
Changes in unvested awards
Nonvested at the beginning of the period (in shares)		348,000
Granted (in shares)	101,500	130,000	101,500
Vested (in shares)		(105,500)
Forfeited (in shares)		(1,500)
Nonvested at the end of the period (in shares)		371,000
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)		$ 4.50
Granted (in dollars per share)		6.89
Vested (in dollars per share)		3.28
Forfeited (in dollars per share)		6.81
Nonvested at the end of the period (in dollars per share)		$ 5.68
Additional information
Total unrecognized compensation cost of restricted awards	$ 869	$ 1,100	$ 869
Expected weighted-average period for recognition of unrecognized compensation	2 years 1 month 13 days	1 year 11 months 27 days

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic earnings per share:
Weighted-average common shares outstanding	29,554,716	29,478,429	29,524,796	29,474,833
Net income	$ 3,499	$ 3,924	$ 10,666	$ 11,552
Preferred stock dividends and accretion		339		1,873
Preferred stock dividends and accretion of discount		339		1,873
Net income available to common stockholders	$ 3,499	$ 3,585	$ 10,666	$ 9,679
Basic earnings per share (in dollars per share)	$ 0.12	$ 0.12	$ 0.36	$ 0.33
Diluted earnings per share:
Weighted-average common shares outstanding	29,554,716	29,478,429	29,524,796	29,474,833
Diluted average common shares outstanding	29,838,182	29,746,429	29,828,430	29,724,234
Net earnings available to common stockholders	$ 3,499	$ 3,585	$ 10,666	$ 9,679
Diluted earnings per share (in dollars per share)	$ 0.12	$ 0.12	$ 0.36	$ 0.33
Number of antidilutive options and warrants excluded from the diluted earnings per share calculation (in shares)	1,238		413
Antidilutive options and warrants
Diluted earnings per share:
Number of antidilutive options and warrants excluded from the diluted earnings per share calculation (in shares)	967,339	1,044,339	977,426	1,044,339
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
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)	282,228	268,000	303,221	249,401

Regulatory & Capital Matters (D

Regulatory & Capital Matters (Details)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	9.32%	8.69%
Total capital ratio (as a percent)	15.42%	15.56%
Old Second National Bank
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	10.65%	9.94%
Tier One leverage ratio, basis point increase (as a percent)	0.71%
Total capital ratio (as a percent)	16.24%	15.23%
Risk-based capital ratio, basis point decrease (as a percent)	1.01%
Old Second National Bank | Minimum
Regulatory & Capital Matters
Tier 1 capital leverage ratio, board-designated threshold	8.00%
Total Capital Ratio, board-designated threshold (as a percent)	12.00%

Regulatory & Capital Matters -

Regulatory & Capital Matters - Capital Levels and Industry Defined Regulatory Minimums (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Common equity tier 1 capital to risk weighted assets
Actual	$ 157,172	$ 151,410
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 75,422	$ 64,582
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	10.68%	10.55%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	5.125%	4.50%
Total capital to risk weighted assets, Amount
Actual at period end	$ 226,785	$ 223,311
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 126,850	$ 114,813
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	15.42%	15.56%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	8.625%	8.00%
Tier 1 capital to risk weighted assets, Amount
Actual	$ 194,910	$ 176,625
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 97,455	$ 86,159
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	13.25%	12.30%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	6.625%	6.00%
Tier 1 capital to average assets, Amount
Actual	$ 194,910	$ 176,625
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 83,652	$ 81,300
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	9.32%	8.69%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	4.00%	4.00%
Old Second National Bank
Common equity tier 1 capital to risk weighted assets
Actual	$ 223,359	$ 202,158
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	75,211	64,519
Minimum Required to Be Well Capitalized	$ 95,390	$ 93,193
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	15.22%	14.10%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	5.125%	4.50%
Minimum Required to Be Well Capitalized (as a percent)	6.50%	6.50%
Total capital to risk weighted assets, Amount
Actual at period end	$ 238,337	$ 218,375
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	126,580	114,708
Minimum Required to Be Well Capitalized	$ 146,759	$ 143,385
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	16.24%	15.23%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	8.625%	8.00%
Minimum Required to Be Well Capitalized (as a percent)	10.00%	10.00%
Tier 1 capital to risk weighted assets, Amount
Actual	$ 223,359	$ 202,158
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	97,224	86,025
Minimum Required to Be Well Capitalized	$ 117,403	$ 114,700
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	15.22%	14.10%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	6.625%	6.00%
Minimum Required to Be Well Capitalized (as a percent)	8.00%	8.00%
Tier 1 capital to average assets, Amount
Actual	$ 223,359	$ 202,158
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	83,891	81,351
Minimum Required to Be Well Capitalized	$ 104,863	$ 101,689
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	10.65%	9.94%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	4.00%	4.00%
Minimum Required to Be Well Capitalized (as a percent)	5.00%	5.00%

Regulatory & Capital Matters 61

Regulatory & Capital Matters - Dividend Restrictions and Deferrals (Details)	9 Months Ended
	Sep. 30, 2016
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%
Minimum capital requirements, minimum percentage required, 2017	1.25%
Minimum capital requirements, minimum percentage required, 2018	1.875%
Minimum capital requirements, minimum percentage required, 2019 and thereafter	2.50%

Fair Value Measurements - Recur

Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets:
Securities available-for-sale	$ 531,057	$ 456,066
Mortgage servicing rights	5,075	5,847
U.S. Treasury
Assets:
Securities available-for-sale		1,509
U.S. government agencies
Assets:
Securities available-for-sale	1,503	1,556
U.S. government agency mortgage-backed
Assets:
Securities available-for-sale	43,723	1,996
States and political subdivisions
Assets:
Securities available-for-sale	22,254	30,526
Corporate bonds
Assets:
Securities available-for-sale	10,730	29,400
Collateralized mortgage obligations
Assets:
Securities available-for-sale	204,390	66,920
Asset-backed securities
Assets:
Securities available-for-sale	140,173	231,908
Collateralized loan obligations
Assets:
Securities available-for-sale	108,284	92,251
Level 1
Assets:
Securities available-for-sale		1,509
Level 2
Assets:
Securities available-for-sale	531,057	454,446
Loans held-for-sale	3,750	2,849
Liabilities:
Other liabilities	4,910	631
Level 3
Assets:
Securities available-for-sale		111
Recurring
Assets:
Total financial assets	540,963	465,064
Liabilities:
Total	5,698	745
Recurring | Finite-Lived Intangible Assets [Member]
Assets:
Loans held-for-sale	3,750	2,849
Mortgage servicing rights	5,075	5,847
Recurring | Interest rate swap agreements net of swap credit valuation
Liabilities:
Other liabilities	5,698	745
Recurring | Interest rate swap agreements net of swap credit valuation | Finite-Lived Intangible Assets [Member]
Assets:
Other assets	788	114
Recurring | Forward MBS contracts and forward loan contracts | Finite-Lived Intangible Assets [Member]
Assets:
Other assets	293	188
Recurring | U.S. Treasury | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale		1,509
Recurring | U.S. government agencies | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	1,503	1,556
Recurring | U.S. government agency mortgage-backed | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	43,723	1,996
Recurring | States and political subdivisions | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	22,254	30,526
Recurring | Corporate bonds | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	10,730	29,400
Recurring | Collateralized mortgage obligations | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	204,390	66,920
Recurring | Asset-backed securities | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	140,173	231,908
Recurring | Collateralized loan obligations | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	108,284	92,251
Recurring | Level 1
Assets:
Total financial assets		1,509
Recurring | Level 1 | U.S. Treasury | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale		1,509
Recurring | Level 2
Assets:
Total financial assets	535,888	457,597
Liabilities:
Total	5,698	745
Recurring | Level 2 | Finite-Lived Intangible Assets [Member]
Assets:
Loans held-for-sale	3,750	2,849
Recurring | Level 2 | Interest rate swap agreements net of swap credit valuation
Liabilities:
Other liabilities	5,698	745
Recurring | Level 2 | Interest rate swap agreements net of swap credit valuation | Finite-Lived Intangible Assets [Member]
Assets:
Other assets	788	114
Recurring | Level 2 | Forward MBS contracts and forward loan contracts | Finite-Lived Intangible Assets [Member]
Assets:
Other assets	293	188
Recurring | Level 2 | U.S. government agencies | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	1,503	1,556
Recurring | Level 2 | U.S. government agency mortgage-backed | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	43,723	1,996
Recurring | Level 2 | States and political subdivisions | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	22,254	30,415
Recurring | Level 2 | Corporate bonds | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	10,730	29,400
Recurring | Level 2 | Collateralized mortgage obligations | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	204,390	66,920
Recurring | Level 2 | Asset-backed securities | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	140,173	231,908
Recurring | Level 2 | Collateralized loan obligations | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	108,284	92,251
Recurring | Level 3
Assets:
Total financial assets	5,075	5,958
Recurring | Level 3 | Finite-Lived Intangible Assets [Member]
Assets:
Mortgage servicing rights	$ 5,075	5,847
Recurring | Level 3 | States and political subdivisions | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale		$ 111

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Level 3 (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Asset-backed securities
Changes in Level 3
Beginning balance			$ 52,941
Total gains or losses
Included in earnings (or changes in net assets)			(28)
Included in other comprehensive income			(541)
Purchases, issuances, sales, and settlements
Sales	$ (27,455)
Transfers out of Level 3			(24,917)
States and political subdivisions
Changes in Level 3
Beginning balance		$ 111	118
Total gains or losses
Included in other comprehensive income		9
Purchases, issuances, sales, and settlements
Settlements		(78)
Ending balance	118		118
Transfers out of Level 3		(42)
Mortgage servicing rights
Changes in Level 3
Beginning balance		5,847	5,462
Total gains or losses
Included in earnings (or changes in net assets)		(1,394)	(668)
Purchases, issuances, sales, and settlements
Issuances	1,209	1,148
Settlements	(533)	(526)
Ending balance	$ 5,470	$ 5,075	$ 5,470

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative and Qualitative Information (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	$ 5,075,000	$ 5,847,000
Minimum
Quantitative information about Level 3 fair value measurements
Prepayment speed (as a percent)		6.00%
Maximum
Quantitative information about Level 3 fair value measurements
Prepayment speed (as a percent)		35.20%
Weighted Average
Quantitative information about Level 3 fair value measurements
Prepayment speed (as a percent)		10.10%
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	$ 5,075,000	$ 5,847,000
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3 | Minimum
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value		10
Discount rate (as a percent)	10.00%
Prepayment speed (as a percent)	6.00%
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3 | Maximum
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value		15.5
Discount rate (as a percent)	17.00%
Prepayment speed (as a percent)	40.20%
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3 | Weighted Average
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value		$ 10.2
Discount rate (as a percent)	10.20%
Prepayment speed (as a percent)	14.10%

Fair Value Measurements - Nonre

Fair Value Measurements - Nonrecurring (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Assets and liabilities measured at fair value
Valuation allowance	$ 514,000	$ 34,000
Carrying value of other real estate owned	14,144,000	19,141,000	$ 16,252,000	$ 24,451,000	$ 31,964,000	$ 31,982,000
OREO Valuation allowance	13,254,000	14,127,000	$ 13,377,000	$ 19,872,000	$ 20,069,000	$ 19,229,000
Nonrecurring
Assets and liabilities measured at fair value
Total	14,494,000	19,222,000
Nonrecurring | Impaired loans
Assets and liabilities measured at fair value
Total	350,000	81,000
Valuation allowance	514,000	34,000
Decrease of specific allocations within the provision for loan losses	480,000	(243,000)
Nonrecurring | Impaired loans | Carrying Amount
Assets and liabilities measured at fair value
Total	864,000	115,000
Nonrecurring | Other real estate owned
Assets and liabilities measured at fair value
Total	14,144,000	19,141,000
Carrying value of other real estate owned	14,100,000	19,100,000
Outstanding balance	29,100,000	34,900,000
OREO Valuation allowance	13,300,000	14,100,000
OREO participations	1,700,000	1,700,000
Nonrecurring | Level 3
Assets and liabilities measured at fair value
Total	14,494,000	19,222,000
Nonrecurring | Level 3 | Impaired loans
Assets and liabilities measured at fair value
Total	350,000	81,000
Nonrecurring | Level 3 | Other real estate owned
Assets and liabilities measured at fair value
Total	$ 14,144,000	$ 19,141,000

Fair Values of Financial Inst66

Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financial assets:
Cash and due from banks	$ 29,203	$ 26,975
Interest bearing deposits with financial institutions	160,744	13,363
Securities available-for-sale	531,057	456,066
Securities held-to-maturity		247,746
FHLBC and Reserve Bank Stock	7,918	8,518
Bank-owned life insurance	60,036	59,049
Financial liabilities:
Noninterest bearing deposits	473,477	442,639
Other short-term borrowings		15,000
Junior subordinated debentures	57,579	57,543
Carrying Amount
Financial assets:
Cash and due from banks	29,203	26,975
Interest bearing deposits with financial institutions	160,744	13,363
Securities available-for-sale	531,057	456,066
Securities held-to-maturity		247,746
FHLBC and Reserve Bank Stock	7,918	8,518
Loans held for sale	3,750	2,849
Loans, net	1,202,852	1,117,492
Accrued interest receivable	4,402	4,464
Financial liabilities:
Noninterest bearing deposits	473,477	442,639
Interest bearing deposits	1,303,905	1,316,447
Securities sold under repurchase agreements	46,606	34,070
Other short-term borrowings		15,000
Junior subordinated debentures	57,579	57,543
Subordinated debenture	45,000	45,000
Note payable and other borrowings	500	500
Interest rate swap	4,910	631
Borrowing interest payable	73	75
Deposit interest payable	500	445
Total Fair Value
Financial assets:
Cash and due from banks	29,203	26,975
Interest bearing deposits with financial institutions	160,744	13,363
Securities available-for-sale	531,057	456,066
Securities held-to-maturity		251,675
FHLBC and Reserve Bank Stock	7,918	8,518
Loans held for sale	3,750	2,849
Loans, net	1,187,889	1,126,959
Accrued interest receivable	4,402	4,464
Financial liabilities:
Noninterest bearing deposits	473,477	442,639
Interest bearing deposits	1,304,543	1,316,550
Securities sold under repurchase agreements	46,606	34,070
Other short-term borrowings		15,000
Junior subordinated debentures	56,388	53,851
Subordinated debenture	42,626	41,101
Note payable and other borrowings	465	445
Interest rate swap	4,910	631
Borrowing interest payable	73	75
Deposit interest payable	500	445
Level 1
Financial assets:
Cash and due from banks	29,203	26,975
Interest bearing deposits with financial institutions	160,744	13,363
Securities available-for-sale		1,509
Financial liabilities:
Noninterest bearing deposits	473,477	442,639
Junior subordinated debentures	33,452	31,606
Level 2
Financial assets:
Securities available-for-sale	531,057	454,446
Securities held-to-maturity		251,675
FHLBC and Reserve Bank Stock	7,918	8,518
Loans held for sale	3,750	2,849
Accrued interest receivable	4,402	4,464
Financial liabilities:
Interest bearing deposits	1,304,543	1,316,550
Securities sold under repurchase agreements	46,606	34,070
Other short-term borrowings		15,000
Junior subordinated debentures	22,936	22,245
Subordinated debenture	42,626	41,101
Note payable and other borrowings	465	445
Interest rate swap	4,910	631
Borrowing interest payable	73	75
Deposit interest payable	500	445
Level 3
Financial assets:
Securities available-for-sale		111
Loans, net	$ 1,187,889	$ 1,126,959

Financial Instruments with Of67

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions - Interest Rate Derivatives (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016USD ($)item	Dec. 31, 2015USD ($)item
Not designated
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Asset Derivatives, Fair Value	$ 1,081	$ 302
Liability Derivatives, Fair Value	788	114
Interest rate swap agreements net of swap credit valuation | Cash Flow Hedging [Member]
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Unrealized loss	(4,909)	(631)
Notional or Contractual Amount	25,774	25,774
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	$ 7,500	$ 2,400
Number of correspondent financial institutions where investment securities are pledged | item	2	2
Weighted average maturity	7 years	5 years 1 month 6 days
Notional or Contractual Amount	$ 66,880	$ 20,708
Asset Derivatives, Fair Value	788	114
Liability Derivatives, Fair Value	788	114
Commitments | Not designated
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Notional or Contractual Amount	253,544	226,346
Asset Derivatives, Fair Value	293	188
Forward MBS contracts and forward loan contracts | Not designated
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Notional or Contractual Amount	$ 27,000	$ 15,500

Financial Instruments with Of68

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions - Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Company's contractual commitments due to letters of credit
Total letters of credit	$ 13,311	$ 11,670
Fixed
Company's contractual commitments due to letters of credit
Total letters of credit	305	126
Variable
Company's contractual commitments due to letters of credit
Total letters of credit	13,006	11,544
Borrower
Company's contractual commitments due to letters of credit
Total letters of credit	12,682	11,095
Borrower | Fixed
Company's contractual commitments due to letters of credit
Total letters of credit	210	126
Borrower | Variable
Company's contractual commitments due to letters of credit
Total letters of credit	12,472	10,969
Borrower | Financial standby
Company's contractual commitments due to letters of credit
Total letters of credit	3,794	3,632
Borrower | Financial standby | Fixed
Company's contractual commitments due to letters of credit
Total letters of credit	127	60
Borrower | Financial standby | Variable
Company's contractual commitments due to letters of credit
Total letters of credit	3,667	3,572
Borrower | Commercial standby
Company's contractual commitments due to letters of credit
Total letters of credit	126	47
Borrower | Commercial standby | Variable
Company's contractual commitments due to letters of credit
Total letters of credit	126	47
Borrower | Performance standby
Company's contractual commitments due to letters of credit
Total letters of credit	8,762	7,416
Borrower | Performance standby | Fixed
Company's contractual commitments due to letters of credit
Total letters of credit	83	66
Borrower | Performance standby | Variable
Company's contractual commitments due to letters of credit
Total letters of credit	8,679	7,350
Nonborrower
Company's contractual commitments due to letters of credit
Total letters of credit	629	575
Nonborrower | Fixed
Company's contractual commitments due to letters of credit
Total letters of credit	95
Nonborrower | Variable
Company's contractual commitments due to letters of credit
Total letters of credit	534	575
Nonborrower | Performance standby
Company's contractual commitments due to letters of credit
Total letters of credit	629	575
Nonborrower | Performance standby | Fixed
Company's contractual commitments due to letters of credit
Total letters of credit	95
Nonborrower | Performance standby | Variable
Company's contractual commitments due to letters of credit
Total letters of credit	$ 534	$ 575

Series B Preferred Stock - (Det

Series B Preferred Stock - (Details) - Series B Stock - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014
Preferred Stock
Shares redeemed (in shares)	13,553	15,778	25,669
Payments of Dividends				$ 2.4	$ 12.4