Old Second Bancorp, Inc. (OSBC)

It's astounding that Old Second Bancorp is in the underperforming position it is in today considering its potential. It can only go up from here. Old Second is locally an extremely well-respected bank of scrupulous integrity (think the conservative bank in Mary Poppins run by her employer, Mr. Banks). The "mother" bank, Old Second National Bank of Aurora is over 125 years old and a fixture in its community. It has a great history. I'm a former employee, and it breaks my heart to see it occupying its current place in the market. This operation is so conservative, it's unlikely to have big future writeoffs which could bring it down. This is management that dragged it's feet in offering home equity lines of credit when they were hot (too risky!). Now it seems they've gotten into trouble by putting too many eggs in one basket, in the form of some Chicago-area builders. This should correct as housing picks up. Physically, Old Second is in a boom area (except for housing, temporarily). And it's loaded with great people at the helm. In the late 1990s it underwent a major management succession, as top brass who had guided its acquisition phase for decades retired. People groomed to take their place should be fine-tuning their risk management skills by now, and be hitting their stride. I'd bet that Old Second Bancorp will outperform the market again. I think it could be a sleeper.