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Form 8-K

sec.gov

8-K — OLD SECOND BANCORP INC

Accession: 0000357173-26-000042

Filed: 2026-07-22

Period: 2026-07-22

CIK: 0000357173

SIC: 6022 (STATE COMMERCIAL BANKS)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — osbc-20260722x8k.htm (Primary)

EX-99.1 (osbc-20260722xex99d1.htm)

EX-99.2 (osbc-20260722xex99d2.htm)

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XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: osbc-20260722x8k.htm · Sequence: 1

OLD SECOND BANCORP INC_July 22, 2026

OLD SECOND BANCORP INC0000357173false00003571732026-07-222026-07-22

​

I

​

United States

Securities And Exchange Commission

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 22, 2026

(Exact name of registrant as specified in its charter)

​

​

​

Delaware

000-10537

36-3143493

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

​

37 South River Street

Aurora, Illinois 60507

(Address of principal executive offices) (Zip code)

(630) 892-0202

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

​

​

​

​

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

OSBC

The Nasdaq Stock Market

​

​

​

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under the Exchange Act (17 CFR 240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

​

​

​

​

​

Item 2.02 Results of Operations and Financial Condition

​

On July 22, 2026, Old Second Bancorp, Inc. (the “Company’s”) issued a press release announcing its financial results for the second quarter ended June 30, 2026, along with certain other financial information. Copies of the Company’s press release and loan portfolio disclosures are attached as Exhibits 99.1 and 99.2, respectively.

​

​

Item 9.01 Financial Statements and Exhibits

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​

​

​

Exhibit No.

​

Description

99.1

​

Press Release of Old Second Bancorp, Inc. dated July 22, 2026

​

​

​

99.2

​

Loan Portfolio Disclosures for Old Second Bancorp, Inc. dated June 30, 2026

​

​

​

104

​

Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

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​

​

​

​

2

​

​

​

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

​

​

​

​

​

​

OLD SECOND BANCORP, INC.

​

​

​

​

​

​

Dated: July 22, 2026

By:

/s/ Bradley S. Adams

​

​

Bradley S. Adams

​

​

Executive Vice President,

​

​

Chief Operating Officer and

​

​

Chief Financial Officer

​

​

3

​

EX-99.1

EX-99.1

Filename: osbc-20260722xex99d1.htm · Sequence: 2

Old Second Bancorp, Inc

​

​

​

​

​

​

​

​

​

​

(NASDAQ:OSBC)

Exhibit 99.1

​

​

​

Contact:

Bradley S. Adams

For Immediate Release

​

Chief Financial Officer

July 22, 2026

​

(630) 906-5484

​

​

​

Old Second Bancorp, Inc. Reports Second Quarter 2026 Net Income of $28.2 Million,

or $0.54 per Diluted Share

​

AURORA, IL, July 22, 2026 – Old Second Bancorp, Inc. (the “Company,” “Old Second,” “we,” “us,” and “our”) (NASDAQ: OSBC), the parent company of Old Second National Bank (the “Bank”), today announced financial results for the second quarter of 2026. Our net income was $28.2 million, or $0.54 per diluted share, for the second quarter of 2026, compared to net income of $25.6 million, or $0.48 per diluted share, for the first quarter of 2026. Adjusted net income1 was $28.7 million, or adjusted diluted earnings per share1 of $0.55, for the second quarter of 2026, compared to adjusted net income1 of $26.0 million, or adjusted diluted earnings per share1 of $0.49, for the first quarter of 2026.

​

Notable Items2

​

● Net interest and dividend income was $83.3 million, reflecting an increase of $2.2 million, or 2.69%.

● Net interest margin (NIM) on a fully tax-equivalent basis1 was 5.23%, an increase of nine basis points.

● Provision for credit losses of $7.5 million compared to $9.5 million, a decrease of $2.0 million.

● Noninterest income was $13.3 million, an increase of $631,000, or 5.00%, compared to $12.6 million.

● Noninterest expense was $51.3 million, an increase of $1.0 million, or 2.08%, compared to $50.2 million.

● Efficiency ratio decreased 68 basis points to 51.72%; adjusted efficiency ratio was 50.80%1.

● Provision for income tax of $9.7 million, compared to $8.5 million, with an effective tax rate of 25.53% and 24.89%, respectively.

● Return on average assets of 1.65%, compared to 1.51%.

● Return on tangible common equity (ROATCE)1 of 15.58%; adjusted ROATCE1 of 15.85%.

● On July 21, 2026, our Board of Directors declared a cash dividend of $0.07 per share of common stock, payable on August 10, 2026, to stockholders of record as of July 31, 2026.

​

Chairman, President and Chief Executive Officer Jim Eccher said, “Old Second reported strong results in the second quarter of 2026 led by exceptional revenue and margin performance and disciplined operating efficiency. Tangible book value per share exhibited double-digit percentage growth on an annualized basis despite the repurchase of 732,000 shares during the quarter.  Nonperforming, classified and criticized assets all decreased meaningfully during the second quarter, and we believe we are adequately reserved for any future losses with an Allowance for Credit Losses on loans (“ACL”) to total loans of 1.34% and ACL to nonperforming loans of 124.60%. Charge-offs in the second quarter largely resulted from one downtown Chicago office credit and one cash-flow-dependent commercial relationship which had been downgraded in prior quarters. Overall results are exceptionally strong across the board, despite a relatively elevated level of net charge-offs, with second quarter return on average assets and return on average tangible common equity of 1.65% and 15.58%, respectively. The tax equivalent net interest margin expanded nine basis points quarter over linked quarter to 5.23% and the efficiency ratio was a very healthy 51.72%. This strong bottom-line performance and a well-positioned balance sheet drove an increase in the tangible common equity capital ratio to 11.19% from 11.07% for the prior linked period. We are proud of our performance both from a bottom-line perspective and in positioning ourselves to deliver even better results to our stockholders over the last half of the year.”

​

​

1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the non-GAAP reconciliation contained in this release.

2 All comparisons throughout this release are on a linked-quarter basis, unless otherwise noted.

​

Results of Operations:

​

Our net income was $28.2 million, or $0.54 per diluted share, for the second quarter of 2026, compared to net income of $25.6 million, or $0.48 per diluted share.

​

Loans increased $60.6 million driven primarily by increases in commercial, construction, multifamily, powersport, and other, including consumer.

● Total loans were $5.25 billion.

● Average loans (including loans held-for-sale) for the second quarter of 2026 totaled $5.22 billion, reflecting an increase of $15.3 million.

​

Credit Quality key performance metrics were impacted by two larger credits.

● Nonperforming loans totaled $56.5 million compared to $75.5 million. The $19.0 million decrease reflects paydowns, upgrades to performing status, loan payoffs, the renewal of $8.7 million of loans past due 90 days accruing that were in the process of renewal, and charge-offs of $5.8 million.

● Nonperforming loans to total loans was 1.08% compared to 1.46%.

● Classified loans totaled $132.1 million compared to $148.6 million.

● Criticized loans (special mention, substandard and doubtful) to total loans was 3.05% compared to 3.64%.  The quarter-over-quarter decrease is driven by a decrease of $12.4 million in special mention loans, a decrease of $8.9 million of nonaccrual loans, and a decrease of $7.6 million in substandard accruing.

● Provision for credit losses of $7.5 million was driven by powersport charge-offs, and larger than normal charge-offs in commercial and commercial real estate; the non-powersport charge-offs were primarily isolated to two loan relationships.

​

Deposits experienced seasonal declines in savings and money market accounts as well as declines in time deposits as higher rate brokered deposits and other exception-priced time deposits assumed from Bancorp Financial, Inc. rolled off.

● Total deposits were $5.44 billion, a decrease of $120.3 million, or 2.16%.

● Cost of deposits decreased five basis points to 1.00%.

● Average interest-bearing deposits decreased $81.7 million while non-interest bearing deposits increased $7.0 million.

​

Net Interest Margin continued to be strong and increases in the cost of funds were outweighed by stronger yields during the quarter.

● Net interest margin on a fully tax-equivalent basis improved nine basis points.

● Loan yields increased 12 basis points on higher average loan balances during the quarter, and investment yields increased six basis points driven by maturities and paydowns of lower yielding securities.

● Cost of funds increased two basis points driven by higher costs on the remaining subordinated debt, coupled with $213,000 of accelerated issuance costs related to our partial redemption of $30.0 million of the original $60.0 million of subordinated debt during the quarter. Cost of deposits decreased by five basis points, specifically due to an 18-basis point decline in the cost of time deposits.

​

Noninterest Income increased $631,000, or 5.00%, in the second quarter of 2026.

● Wealth management related income increased in the period due to growth in advisory, insurance – annuities, agent, estate, and personal trust fees.

● The cash surrender value of BOLI increased in the current quarter due to market rate changes.

● Card related income increased in the current quarter due to growth in debit card related fees from higher transaction volumes.

● Other income decreased in the period due to a decrease in powersport related dealer charge-back income.

​

Noninterest Expense increased $1.0 million or 2.08%.

● Salaries and employee benefits increased $430,000, driven by growth in salaries, officer incentive accruals, deferred compensation expense, and insurance premiums, partially offset by decreases in payroll taxes and 401K company match as 2025 incentive payments were paid in the prior quarter.

● Other expenses increased $712,000 primarily due to growth in director deferred compensation expense, a $172,000 increase in litigation expense primarily regarding two unrelated customer disputes with limited exposure that are both considered non-recurring in nature, and an accrual of $184,000 related to powersport loan gap insurance refunds due to customers related to loan prepayments.

● Efficiency ratio for the quarter was 51.72% compared to 52.40% and the adjusted efficiency ratio1 was 50.80% compared to 51.70%.

​

Capital continued to grow due to strong net income.

● Stockholders’ equity increased $9.5 million due to net income of $28.2 million, partially offset by $3.6 million of dividends declared and a $15.5 million increase in treasury stock from share repurchases and stock award vestings.

● Share repurchases of 732,183 shares at an average price paid per share of $21.08, for a total reduction to capital of $15.4 million, net of excise taxes.

● ROATCE1 was 15.58% compared to 14.20%.

● Tangible common equity to tangible assets1 was 11.19% compared to 11.07%.

​

2

1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the non-GAAP reconciliation contained in this release.

​

Cautionary Note Regarding Forward-Looking Statements

​

This earnings release and statements by our management may contain forward-looking statements within the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “should,” “anticipate,” “expect,” “estimate,” “intend,” “believe,” “may,” “likely,” “will,” “forecast,” “project,” “looking forward,” “optimistic,” “hopeful,” “potential,” “progress,” “prospect,” “remain,” “deliver,” “continue,” “trend,” “momentum,” “remainder,” “beyond,” “build,” and “near” or other statements that indicate future events or expectations. Examples of forward-looking statements include, but are not limited to, statements regarding the economic outlook, balance sheet growth, and building capital. Such forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

​

● the strength of the United States economy in general and the strength of the local economies in which we conduct our operations may be different than expected;

● the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses;

● adverse developments in the commercial real estate market, including increased vacancy rates, declining property values, or borrower distress, particularly in the office sector, which could result in increased credit losses or require additional provisions;

● changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action;

● risks related to pending or future acquisitions, if any, including execution and integration risks;

● adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on us;

● changes in interest rates, which have affected and may continue to affect our deposit and funding costs, net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of our assets, including our investment securities;

● elevated inflation which causes adverse risk to the overall economy, and could indirectly pose challenges to our clients and to our business; and

● the adverse effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as trade disputes, epidemics and pandemics, war or terrorist activities, essential utility outages, deterioration in the global economy, instability in the credit markets, disruptions in our customers’ supply chains or disruptions in transportation, and disruptions caused by widespread cybersecurity incidents.

​

Additional risks and uncertainties are contained in the “Risk Factors” and forward-looking statements disclosure in our most recent Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q. The inclusion of this forward-looking information should not be construed as a representation by us or any person that future events, plans, or expectations contemplated by us will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

​

Conference Call

​

We will host a call on Thursday, July 23, 2026, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss our second quarter 2026 financial results. Investors may listen to our earnings call via a live webcast by accessing the link provided below, or alternatively, on the Events section of the Old Second Investor Relations website (https://investors.oldsecond.com/events). Investors are encouraged to register at the webcast link at least 10 minutes prior to the scheduled start of the call.

​

Webcast URL: https://www.webcaster5.com/Webcast/Page/2239/54212

​

A replay of the webcast will be available under the Events section of the Old Second Investor Relations website (https://investors.oldsecond.com/events) for up to one year after the earnings call date.

​

​

3

​

Non-GAAP Presentations

​

We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision-making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets or by adjusting certain items that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully tax-equivalent basis. We believe these measures provide investors with information regarding balance sheet profitability, and we believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing, and comparing past, present and future periods.

These non-GAAP financial measures should not be considered as a substitute for GAAP financial measures, and we strongly encourage investors to review the GAAP financial measures included in this earnings release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this earnings release with other companies’ non-GAAP financial measures having the same or similar names. The tables beginning on page 12 provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP equivalent.

Management has disclosed in this earnings release certain non-GAAP financial measures to evaluate and measure our performance, including the presentation of adjusted net income, net interest income and net interest margin on a fully tax-equivalent basis, and our efficiency ratio calculations on a tax-equivalent basis. The net interest margin on a fully tax-equivalent basis is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Consistent with industry practice, management has disclosed the efficiency ratio including and excluding certain items, which is discussed in the efficiency ratio presentation on page 13.

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4

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Financial Highlights

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Quarters Ended

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(Dollars in thousands - unaudited)

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June 30,

​

March 31,

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December 31,

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September 30,

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June 30,

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​

​

2026

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2026

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2025

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2025

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2025

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Balance sheet summary

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Total assets

​

$

6,870,305

​

$

6,849,221

​

$

6,902,675

​

$

6,991,754

​

$

5,701,294

​

Total securities available-for-sale

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​

1,040,760

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​

1,115,443

​

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1,090,523

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​

1,157,480

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​

1,177,688

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Total loans

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​

5,245,870

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​

5,185,237

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5,252,131

​

​

5,264,505

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3,998,667

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Total deposits

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5,444,688

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​

5,564,999

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5,596,069

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​

5,760,250

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​

4,798,439

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Total liabilities

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​

5,967,494

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​

5,955,924

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​

6,005,907

​

​

6,125,069

​

​

4,982,645

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Total equity

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​

902,811

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​

893,297

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​

896,768

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866,685

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718,649

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​

​

​

​

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​

​

​

​

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​

​

​

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Total tangible assets

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$

6,719,760

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$

6,697,509

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$

6,749,787

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$

6,836,565

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$

5,588,090

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Total tangible equity

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752,266

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​

741,585

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​

743,880

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​

711,496

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​

605,445

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Income statement summary

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Net interest income

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$

83,329

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$

81,144

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$

83,051

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$

82,775

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$

64,234

​

Provision for credit losses

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​

7,500

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​

9,500

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3,000

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19,653

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​

2,500

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Noninterest income

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​

13,261

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​

12,630

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​

12,154

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​

13,109

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​

10,898

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Noninterest expense

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​

51,252

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​

50,210

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​

52,935

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​

63,163

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​

43,419

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Net income

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28,179

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​

25,585

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​

28,787

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​

9,871

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​

21,822

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Effective tax rate

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25.53

%

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24.89

%

​

26.69

%

​

24.46

%

​

25.30

%

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Profitability ratios

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Return on average assets (ROAA)

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​

1.65

%

​

1.51

%

​

1.64

%

​

0.56

%

​

1.53

%

Return on average equity (ROAE)

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​

12.57

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​

11.43

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​

12.92

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​

4.61

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​

12.39

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Net interest margin (tax-equivalent) 1

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5.23

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​

5.14

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​

5.09

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​

5.05

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​

4.85

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Efficiency ratio

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​

51.72

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​

52.40

​

​

53.98

​

​

64.46

​

​

55.99

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Return on average tangible common equity (ROATCE) 1

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​

15.58

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14.20

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16.15

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6.16

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15.29

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Tangible common equity to tangible assets (TCE/TA) 1

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​

11.19

​

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11.07

​

​

11.02

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​

10.41

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​

10.83

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​

​

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​

​

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​

​

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​

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Per share data

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

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Diluted earnings per share

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$

0.54

​

$

0.48

​

$

0.54

​

$

0.18

​

$

0.48

​

Tangible book value per share

​

​

14.77

​

​

14.35

​

​

14.12

​

​

13.51

​

​

13.44

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​

​

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​

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​

​

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​

​

​

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Company capital ratios 2

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Common equity tier 1 capital ratio

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​

13.28

%

​

13.13

%

​

12.99

%

​

12.44

%

​

13.77

%

Tier 1 risk-based capital ratio

​

​

13.70

​

​

13.55

​

​

13.41

​

​

12.85

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​

14.31

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Total risk-based capital ratio

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15.26

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​

15.64

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​

15.46

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​

15.10

​

​

16.55

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Tier 1 leverage ratio

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​

12.05

​

​

11.88

​

​

11.70

​

​

11.21

​

​

11.83

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Bank capital ratios 2, 3

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​

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Common equity tier 1 capital ratio

​

​

13.72

%

​

13.80

%

​

13.17

%

​

13.14

%

​

14.02

%

Tier 1 risk-based capital ratio

​

​

13.72

​

​

13.80

​

​

13.17

​

​

13.14

​

​

14.02

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Total risk-based capital ratio

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​

14.77

​

​

14.88

​

​

14.22

​

​

14.39

​

​

14.99

​

Tier 1 leverage ratio

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12.05

​

​

12.09

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​

11.49

​

​

11.45

​

​

11.59

​

​

1 See the discussion entitled “Non-GAAP Presentations” above and the table on pages 12 and 14 that provide a reconciliation of this non-GAAP financial measure to the most comparable GAAP equivalent.

​

2 Both the Company and the Bank ratios are inclusive of a capital conservation buffer of 2.50%, and both are subject to the minimum capital adequacy guidelines of 7.00%, 8.50%, 10.50%, and 4.00% for the Common equity tier 1, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios, respectively.

​

3 The prompt corrective action provisions are applicable only at the Bank level, and are 6.50%, 8.00%, 10.00%, and 5.00% for the Common equity tier 1, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios, respectively.

​

​

5

​

​

​

​

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands - unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarters Ended

​

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

June 30,

​

​ ​ ​

2026

​ ​ ​

2026

​

2025

​

2025

​

2025

Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and due from banks

​

$

47,964

​

$

48,100

​

$

51,665

​

$

53,099

​

$

63,484

Interest earning deposits with financial institutions

​

​

95,369

​

​

67,627

​

​

72,360

​

​

63,426

​

​

78,283

Cash and cash equivalents

​

​

143,333

​

​

115,727

​

​

124,025

​

​

116,525

​

​

141,767

Securities available-for-sale, at fair value

​

​

1,040,760

​

​

1,115,443

​

​

1,090,523

​

​

1,157,480

​

​

1,177,688

Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock

​

​

40,125

​

​

31,350

​

​

32,025

​

​

28,282

​

​

19,087

Loans held-for-sale

​

​

2,349

​

​

4,344

​

​

3,645

​

​

1,463

​

​

3,235

Loans

​

​

5,245,870

​

​

5,185,237

​

​

5,252,131

​

​

5,264,505

​

​

3,998,667

Less: allowance for credit losses on loans

​

​

70,380

​

​

72,126

​

​

72,301

​

​

75,037

​

​

42,990

Net loans

​

​

5,175,490

​

​

5,113,111

​

​

5,179,830

​

​

5,189,468

​

​

3,955,677

Premises and equipment, net

​

​

84,505

​

​

85,634

​

​

86,645

​

​

87,714

​

​

85,702

Other real estate owned, net

​

​

622

​

​

632

​

​

1,427

​

​

6,416

​

​

6,486

Mortgage servicing rights, at fair value

​

​

9,825

​

​

9,579

​

​

9,459

​

​

9,549

​

​

9,680

Goodwill

​

​

129,196

​

​

129,196

​

​

129,196

​

​

130,262

​

​

93,232

Core deposit intangible ("CDI")

​

​

21,349

​

​

22,516

​

​

23,692

​

​

24,927

​

​

19,972

Bank-owned life insurance (“BOLI”)

​

​

133,493

​

​

131,563

​

​

130,481

​

​

129,057

​

​

114,399

Deferred tax assets, net

​

​

28,689

​

​

31,321

​

​

31,276

​

​

33,374

​

​

20,395

Other assets

​

​

60,569

​

​

58,805

​

​

60,451

​

​

77,237

​

​

53,974

Total assets

​

$

6,870,305

​

$

6,849,221

​

$

6,902,675

​

$

6,991,754

​

$

5,701,294

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Deposits:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest bearing demand

​

$

1,746,755

​

$

1,755,548

​

$

1,739,117

​

$

1,738,028

​

$

1,704,083

Interest bearing:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Savings, NOW, and money market

​

​

2,771,532

​

​

2,795,038

​

​

2,745,540

​

​

2,763,990

​

​

2,400,235

Time

​

​

926,401

​

​

1,014,413

​

​

1,111,412

​

​

1,258,232

​

​

694,121

Total deposits

​

​

5,444,688

​

​

5,564,999

​

​

5,596,069

​

​

5,760,250

​

​

4,798,439

Securities sold under repurchase agreements

​

​

23,241

​

​

23,130

​

​

23,769

​

​

24,290

​

​

47,252

Other short-term borrowings

​

​

375,000

​

​

200,000

​

​

215,000

​

​

165,000

​

​

-

Junior subordinated debentures

​

​

25,774

​

​

25,774

​

​

25,774

​

​

25,774

​

​

25,774

Subordinated debentures

​

​

29,798

​

​

59,574

​

​

59,552

​

​

59,531

​

​

59,510

Notes payable and other borrowings

​

​

14,850

​

​

14,837

​

​

14,825

​

​

14,812

​

​

-

Other liabilities

​

​

54,143

​

​

67,610

​

​

70,918

​

​

75,412

​

​

51,670

Total liabilities

​

​

5,967,494

​

​

5,955,924

​

​

6,005,907

​

​

6,125,069

​

​

4,982,645

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Stockholders’ Equity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Common stock

​

​

53,015

​

​

53,015

​

​

53,015

​

​

53,015

​

​

45,094

Additional paid-in capital

​

​

339,616

​

​

338,418

​

​

341,451

​

​

340,108

​

​

206,207

Retained earnings

​

​

583,701

​

​

559,129

​

​

537,231

​

​

512,131

​

​

505,419

Accumulated other comprehensive loss, net

​

​

(31,861)

​

​

(31,095)

​

​

(28,738)

​

​

(32,294)

​

​

(37,426)

Treasury stock

​

​

(41,660)

​

​

(26,170)

​

​

(6,191)

​

​

(6,275)

​

​

(645)

Total stockholders’ equity

​

​

902,811

​

​

893,297

​

​

896,768

​

​

866,685

​

​

718,649

Total liabilities and stockholders’ equity

​

$

6,870,305

​

$

6,849,221

​

$

6,902,675

​

$

6,991,754

​

$

5,701,294

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

6

​

​

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(In thousands, except share data - unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

June 30,

​

​

​

​ ​ ​

2026

​ ​ ​

2026

​

2025

​

2025

​

2025

​ ​ ​

​

Interest and dividend income

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans, including fees

​

$

89,845

​

$

87,138

​

$

90,925

​

$

91,301

​

$

61,954

​

​

Loans held-for-sale

​

​

62

​

​

43

​

​

35

​

​

31

​

​

39

​

​

Securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Taxable

​

​

9,088

​

​

8,949

​

​

9,136

​

​

9,872

​

​

9,959

​

​

Tax exempt

​

​

1,132

​

​

1,155

​

​

1,219

​

​

1,235

​

​

1,229

​

​

Dividends from FHLBC and FRBC stock

​

​

535

​

​

512

​

​

390

​

​

381

​

​

273

​

​

Interest bearing deposits with financial institutions

​

​

527

​

​

549

​

​

598

​

​

1,255

​

​

1,784

​

​

Total interest and dividend income

​

​

101,189

​

​

98,346

​

​

102,303

​

​

104,075

​

​

75,238

​

​

Interest expense

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Savings, NOW, and money market deposits

​

​

7,512

​

​

7,147

​

​

7,906

​

​

9,043

​

​

5,606

​

​

Time deposits

​

​

6,199

​

​

7,217

​

​

8,665

​

​

10,896

​

​

4,508

​

​

Securities sold under repurchase agreements

​

​

40

​

​

50

​

​

45

​

​

60

​

​

56

​

​

Other short-term borrowings

​

​

2,989

​

​

1,791

​

​

1,644

​

​

308

​

​

-

​

​

Junior subordinated debentures

​

​

289

​

​

296

​

​

288

​

​

288

​

​

288

​

​

Subordinated debentures

​

​

675

​

​

546

​

​

546

​

​

547

​

​

546

​

​

Notes payable and other borrowings

​

​

156

​

​

155

​

​

158

​

​

158

​

​

-

​

​

Total interest expense

​

​

17,860

​

​

17,202

​

​

19,252

​

​

21,300

​

​

11,004

​

​

Net interest and dividend income

​

​

83,329

​

​

81,144

​

​

83,051

​

​

82,775

​

​

64,234

​

​

Provision for credit losses

​

​

7,500

​

​

9,500

​

​

3,000

​

​

19,653

​

​

2,500

​

​

Net interest and dividend income after provision for credit losses

​

​

75,829

​

​

71,644

​

​

80,051

​

​

63,122

​

​

61,734

​

​

Noninterest income 1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Wealth management

​

​

3,628

​

​

3,383

​

​

3,537

​

​

3,515

​

​

3,103

​

​

Service charges on deposits

​

​

3,075

​

​

3,130

​

​

3,125

​

​

3,202

​

​

3,060

​

​

Secondary mortgage fees

​

​

166

​

​

121

​

​

123

​

​

92

​

​

84

​

​

Mortgage servicing rights mark to market loss

​

​

(152)

​

​

(152)

​

​

(428)

​

​

(389)

​

​

(531)

​

​

Mortgage servicing income

​

​

464

​

​

497

​

​

444

​

​

469

​

​

472

​

​

Net gain on sales of mortgage loans

​

​

640

​

​

555

​

​

657

​

​

620

​

​

550

​

​

Securities gains (losses), net

​

​

-

​

​

-

​

​

8

​

​

(1)

​

​

-

​

​

Change in cash surrender value of BOLI

​

​

1,469

​

​

1,082

​

​

834

​

​

1,175

​

​

690

​

​

Death benefit realized on BOLI

​

​

-

​

​

-

​

​

-

​

​

430

​

​

-

​

​

Card related income

​

​

2,483

​

​

2,350

​

​

2,548

​

​

2,581

​

​

2,533

​

​

Other income

​

​

1,488

​

​

1,664

​

​

1,306

​

​

1,415

​

​

937

​

​

Total noninterest income

​

​

13,261

​

​

12,630

​

​

12,154

​

​

13,109

​

​

10,898

​

​

Noninterest expense 1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Salaries and employee benefits

​

​

30,103

​

​

29,673

​

​

30,996

​

​

39,723

​

​

26,950

​

​

Occupancy, furniture and equipment

​

​

5,118

​

​

5,371

​

​

5,092

​

​

4,937

​

​

4,477

​

​

Computer and data processing

​

​

3,217

​

​

3,375

​

​

4,798

​

​

4,002

​

​

2,692

​

​

FDIC insurance

​

​

759

​

​

759

​

​

720

​

​

854

​

​

642

​

​

Net teller & bill paying

​

​

724

​

​

716

​

​

701

​

​

691

​

​

670

​

​

General bank insurance

​

​

351

​

​

353

​

​

354

​

​

437

​

​

328

​

​

Amortization of core deposit intangible

​

​

1,167

​

​

1,176

​

​

1,235

​

​

1,251

​

​

1,022

​

​

Advertising and marketing expense

​

​

483

​

​

551

​

​

437

​

​

650

​

​

454

​

​

Card related expense

​

​

1,604

​

​

1,519

​

​

1,652

​

​

1,708

​

​

1,489

​

​

Professional fees

​

​

1,160

​

​

1,299

​

​

1,265

​

​

3,145

​

​

1,158

​

​

Consumer credit expense

​

​

1,720

​

​

1,522

​

​

1,451

​

​

1,368

​

​

15

​

​

Other real estate expense, net

​

​

52

​

​

(186)

​

​

81

​

​

128

​

​

35

​

​

Other expense

​

​

4,794

​

​

4,082

​

​

4,153

​

​

4,269

​

​

3,487

​

​

Total noninterest expense

​

​

51,252

​

​

50,210

​

​

52,935

​

​

63,163

​

​

43,419

​

​

Income before income taxes

​

​

37,838

​

​

34,064

​

​

39,270

​

​

13,068

​

​

29,213

​

​

Provision for income taxes

​

​

9,659

​

​

8,479

​

​

10,483

​

​

3,197

​

​

7,391

​

​

Net income

​

$

28,179

​

$

25,585

​

$

28,787

​

$

9,871

​

$

21,822

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Basic earnings per share

​

$

0.55

​

$

0.49

​

$

0.55

​

$

0.19

​

$

0.49

​

​

Diluted earnings per share

​

​

0.54

​

​

0.48

​

​

0.54

​

​

0.18

​

​

0.48

​

​

Dividends declared per share

​

​

0.07

​

​

0.07

​

​

0.07

​

​

0.06

​

​

0.06

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Ending common shares outstanding

​

​

50,938,962

​

​

51,665,660

​

​

52,669,224

​

​

52,664,535

​

​

45,056,183

​

​

Weighted-average basic shares outstanding

​

​

51,250,245

​

​

52,450,306

​

​

52,667,899

​

​

52,686,391

​

​

45,053,650

​

​

Weighted-average diluted shares outstanding

​

​

52,120,337

​

​

53,303,072

​

​

53,480,431

​

​

53,509,690

​

​

45,839,465

​

​

​

1 Certain items in prior periods have been reclassified to conform to the current presentation.

​

7

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Analysis of Average Balances,

Tax Equivalent Income / Expense and Rates

(Dollars in thousands - unaudited)

​

​

​

Quarters Ended

​

​

June 30, 2026

​

March 31, 2026

​

June 30, 2025

​

​

Average

​

Income /

​

Rate

​

Average

​

Income /

​

Rate

​

Average

​

Income /

​

Rate

​

​

Balance

​

Expense

​

%

​

Balance

​

Expense

​

%

​

Balance

​

Expense

​

%

Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest earning deposits with financial institutions

​

$

64,839

​

$

527

​

3.26

​

$

67,571

​

$

549

​

3.30

​

$

166,366

​

$

1,784

​

4.30

Securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Taxable

​

​

955,176

​

​

9,088

​

3.82

​

​

969,194

​

​

8,949

​

3.74

​

​

1,040,472

​

​

9,959

​

3.84

Non-taxable (TE)1

​

​

140,876

​

​

1,433

​

4.08

​

​

146,299

​

​

1,462

​

4.05

​

​

149,651

​

​

1,556

​

4.17

Total securities (TE)1

​

​

1,096,052

​

​

10,521

​

3.85

​

​

1,115,493

​

​

10,411

​

3.79

​

​

1,190,123

​

​

11,515

​

3.88

FHLBC and FRBC Stock

​

​

36,676

​

​

535

​

5.85

​

​

31,540

​

​

512

​

6.58

​

​

19,200

​

​

273

​

5.70

Loans and loans held-for-sale1, 2

​

​

5,223,093

​

​

89,921

​

6.91

​

​

5,207,744

​

​

87,194

​

6.79

​

​

3,960,650

​

​

62,002

​

6.28

Total interest earning assets

​

​

6,420,660

​

​

101,504

​

6.34

​

​

6,422,348

​

​

98,666

​

6.23

​

​

5,336,339

​

​

75,574

​

5.68

Cash and due from banks

​

​

46,700

​

​

-

​

-

​

​

48,252

​

​

-

​

-

​

​

47,875

​

​

-

​

-

Allowance for credit losses on loans

​

​

(72,418)

​

​

-

​

-

​

​

(71,869)

​

​

-

​

-

​

​

(41,544)

​

​

-

​

-

Other noninterest earning assets

​

​

457,995

​

​

-

​

-

​

​

460,433

​

​

-

​

-

​

​

394,034

​

​

-

​

-

Total assets

​

$

6,852,937

​

​

​

​

​

​

$

6,859,164

​

​

​

​

​

​

$

5,736,704

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities and Stockholders' Equity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

NOW accounts

​

$

717,468

​

$

897

​

0.50

​

$

697,692

​

$

823

​

0.48

​

$

653,334

​

$

681

​

0.42

Money market accounts

​

​

948,319

​

​

4,400

​

1.86

​

​

946,075

​

​

4,148

​

1.78

​

​

832,777

​

​

3,920

​

1.89

Savings accounts

​

​

1,109,381

​

​

2,215

​

0.80

​

​

1,118,979

​

​

2,176

​

0.79

​

​

938,836

​

​

1,005

​

0.43

Time deposits

​

​

968,464

​

​

6,199

​

2.57

​

​

1,062,623

​

​

7,217

​

2.75

​

​

695,946

​

​

4,508

​

2.60

Interest bearing deposits

​

​

3,743,632

​

​

13,711

​

1.47

​

​

3,825,369

​

​

14,364

​

1.52

​

​

3,120,893

​

​

10,114

​

1.30

Securities sold under repurchase agreements

​

​

21,337

​

​

40

​

0.75

​

​

24,795

​

​

50

​

0.82

​

​

35,419

​

​

56

​

0.63

Other short-term borrowings

​

​

312,803

​

​

2,989

​

3.83

​

​

189,056

​

​

1,791

​

3.84

​

​

-

​

​

-

​

-

Junior subordinated debentures

​

​

25,774

​

​

289

​

4.50

​

​

25,774

​

​

296

​

4.66

​

​

25,773

​

​

288

​

4.48

Subordinated debentures

​

​

34,373

​

​

675

​

7.88

​

​

59,564

​

​

546

​

3.72

​

​

59,500

​

​

546

​

3.68

Notes payable and other borrowings

​

​

14,844

​

​

156

​

4.22

​

​

14,831

​

​

155

​

4.24

​

​

-

​

​

-

​

-

Total interest bearing liabilities

​

​

4,152,763

​

​

17,860

​

1.73

​

​

4,139,389

​

​

17,202

​

1.69

​

​

3,241,585

​

​

11,004

​

1.36

Noninterest bearing deposits

​

​

1,745,475

​

​

-

​

-

​

​

1,738,504

​

​

-

​

-

​

​

1,729,287

​

​

-

​

-

Other liabilities

​

​

55,582

​

​

-

​

-

​

​

73,284

​

​

-

​

-

​

​

59,578

​

​

-

​

-

Stockholders' equity

​

​

899,117

​

​

-

​

-

​

​

907,987

​

​

-

​

-

​

​

706,254

​

​

-

​

-

Total liabilities and stockholders' equity

​

$

6,852,937

​

​

​

​

​

​

$

6,859,164

​

​

​

​

​

​

$

5,736,704

​

​

​

​

​

Net interest income (GAAP)

​

​

​

​

$

83,329

​

​

​

​

​

​

$

81,144

​

​

​

​

​

​

$

64,234

​

​

Net interest margin (GAAP)

​

​

​

​

​

​

​

5.21

​

​

​

​

​

​

​

5.12

​

​

​

​

​

​

​

4.83

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest income (TE)1

​

​

​

​

$

83,644

​

​

​

​

​

​

$

81,464

​

​

​

​

​

​

$

64,570

​

​

Net interest margin (TE)1

​

​

​

​

​

​

​

5.23

​

​

​

​

​

​

​

5.14

​

​

​

​

​

​

​

4.85

Interest bearing liabilities to earning assets

​

​

64.68

%

​

​

​

​

​

​

64.45

%

​

​

​

​

​

​

60.75

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1 Tax equivalent (TE) basis is calculated using a marginal tax rate of 21% in 2026 and 2025. See the discussion entitled “Non-GAAP Presentations” above and the tables beginning on page 12 that provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

​

2 Interest income from loans is shown on a TE basis, which is a non-GAAP financial measure as discussed in the table on page 12, and includes loan fee income of $2.0 million for the second quarter of 2026, loan fee income of $1.9 million for the first quarter of 2026, and loan fee income of $366,000 for the second quarter of 2025. Nonaccrual loans are included in the above stated average balances.

​

​

8

​

Loans and Credit Quality

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans

​

Quarters Ended

(Dollars in thousands)

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

​

June 30,

​

​ ​ ​

2026

​ ​ ​

2026

​ ​ ​

2025

​ ​ ​

2025

​ ​ ​

​

2025

Commercial

​

$

913,527

​

$

845,278

​

$

842,130

​

$

786,095

​

$

718,927

Leases

​

​

537,197

​

​

539,116

​

​

548,256

​

​

550,201

​

​

524,513

Commercial real estate – investor

​

​

1,159,168

​

​

1,169,318

​

​

1,212,384

​

​

1,257,328

​

​

1,118,782

Commercial real estate – owner occupied

​

​

667,645

​

​

702,986

​

​

706,567

​

​

680,412

​

​

652,449

Construction

​

​

153,553

​

​

143,563

​

​

173,630

​

​

176,387

​

​

251,692

Residential real estate – investor

​

​

65,133

​

​

69,763

​

​

70,225

​

​

69,362

​

​

50,976

Residential real estate – owner occupied

​

​

242,768

​

​

239,711

​

​

230,432

​

​

231,547

​

​

220,672

Multifamily

​

​

363,352

​

​

357,131

​

​

339,131

​

​

378,213

​

​

333,787

HELOC

​

​

239,307

​

​

235,637

​

​

235,293

​

​

234,885

​

​

111,265

Powersport

​

​

683,939

​

​

674,116

​

​

696,959

​

​

715,498

​

​

-

Other1

​

​

220,281

​

​

208,618

​

​

197,124

​

​

184,577

​

​

15,604

Total loans

​

$

5,245,870

​

$

5,185,237

​

$

5,252,131

​

$

5,264,505

​

$

3,998,667

​

1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nonperforming assets

​

Quarters Ended

​

(Dollars in thousands)

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

June 30,

​

​

​

2026

​

2026

​

2025

​

2025

​

2025

​

Nonaccrual loans

​

$

53,747

​

$

62,636

​

$

47,952

​

$

34,126

​

$

31,902

​

Loans past due 90 days or more and still accruing interest

​

2,736

​

12,868

​

4,879

​

13,859

​

​

345

​

Total nonperforming loans

​

56,483

​

75,504

​

52,831

​

​

47,985

​

​

32,247

​

Other real estate owned

​

622

​

632

​

1,427

​

6,416

​

​

6,486

​

Repossessed assets 1

​

819

​

858

​

1,363

​

2,088

​

​

234

​

Total nonperforming assets

​

$

57,924

​

$

76,994

​

$

55,621

​

$

56,489

​

$

38,967

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

30-89 days past due loans and still accruing interest

​

$

22,499

​

$

50,036

​

$

52,169

​

$

22,415

​

$

14,652

​

Nonaccrual loans to total loans

​

​

1.02

%

​

1.21

%

​

0.91

%

​

0.65

%

​

0.80

%

Nonperforming loans to total loans

​

​

1.08

%

​

1.46

%

​

1.01

%

​

0.91

%

​

0.81

%

Nonperforming assets to total loans plus OREO and repossessed assets

​

​

1.10

%

​

1.48

%

​

1.06

%

​

1.07

%

​

0.97

%

Purchased credit-deteriorated loans to total loans

​

​

1.19

%

​

1.35

%

​

1.50

%

​

1.61

%

​

0.23

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for credit losses

​

$

70,380

​

$

72,126

​

$

72,301

​

$

75,037

​

$

42,990

​

Allowance for credit losses to total loans

​

​

1.34

%

​

1.39

%

​

1.38

%

​

1.43

%

​

1.08

%

Allowance for credit losses to nonaccrual loans

​

​

130.95

%

​

115.15

%

​

150.78

%

​

219.88

%

​

134.76

%

​

1 Repossessed assets are reported in other assets.

​

9

​

The following table shows classified loans by segment, which include nonaccrual loans, purchased credit deteriorated (“PCD”) loans if the risk rating so indicates, and all other loans considered substandard, for the following periods.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Classified loans

​

Quarters Ended

(Dollars in thousands)

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

June 30,

​

​ ​ ​

2026

​ ​ ​

2026

​ ​ ​

2025

​ ​ ​

2025

​ ​ ​

2025

Commercial

​

$

39,646

​

$

50,640

​

$

51,587

​

$

50,680

​

$

23,354

Leases

​

​

2,930

​

​

2,604

​

​

2,428

​

​

1,277

​

​

1,346

Commercial real estate – investor

​

​

11,262

​

​

14,959

​

​

14,245

​

​

2,853

​

​

14,752

Commercial real estate – owner occupied

​

​

58,582

​

​

60,594

​

​

64,081

​

​

72,020

​

​

51,335

Construction

​

​

12,976

​

​

12,983

​

​

11,421

​

​

1,612

​

​

1,624

Residential real estate – investor

​

​

662

​

​

1,012

​

​

1,142

​

​

1,228

​

​

1,201

Residential real estate – owner occupied

​

​

2,076

​

​

1,886

​

​

1,897

​

​

1,839

​

​

1,707

Multifamily

​

​

1,197

​

​

1,489

​

​

1,494

​

​

1,183

​

​

1,099

HELOC

​

​

2,250

​

​

1,832

​

​

1,466

​

​

1,538

​

​

1,180

Powersport

​

​

198

​

​

204

​

​

68

​

​

-

​

​

-

Other1

​

​

318

​

​

369

​

​

270

​

​

30

​

​

22

Total classified loans

​

$

132,097

​

$

148,572

​

$

150,099

​

$

134,260

​

$

97,620

​

1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loan charge–offs, net of recoveries

Quarters Ended

(Dollars in thousands)

June 30,

​

March 31,

​

December 31,

​

September 30,

​

​

June 30,

​

2026

​

2026

​

2025

​

2025

​

​

2025

Commercial

$

2,983

​

$

1,298

​

$

(44)

​

$

385

​

$

1,093

Leases

​

344

​

​

197

​

​

15

​

​

848

​

​

(3)

Commercial real estate – Investor

​

2,804

​

​

3,919

​

​

(14)

​

​

(15)

​

​

(14)

Commercial real estate – Owner occupied

​

(1)

​

​

(5)

​

​

1,125

​

​

(2)

​

​

(1)

Construction

​

-

​

​

-

​

​

-

​

​

(46)

​

​

(337)

Residential real estate – Investor

​

(1)

​

​

(2)

​

​

(1)

​

​

(2)

​

​

(2)

Residential real estate – Owner occupied

​

(21)

​

​

(7)

​

​

(11)

​

​

(7)

​

​

(8)

Multifamily

​

-

​

​

-

​

​

-

​

​

181

​

​

-

HELOC

​

(14)

​

​

(6)

​

​

(49)

​

​

(19)

​

​

(10)

Powersport

​

2,826

​

​

3,894

​

​

4,466

​

​

2,980

​

​

-

Other 1

​

328

​

​

488

​

​

494

​

​

805

​

​

67

Net charge–offs / (recoveries)

$

9,248

​

$

9,776

​

$

5,981

​

$

5,108

​

$

785

​

1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts.

​

​

10

​

Old Second Bancorp, Inc. and Subsidiaries

Quarterly Consolidated Average Balance

(In thousands - unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarters Ended

​

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

June 30,

​

​ ​ ​

2026

​ ​ ​

2026

​

2025

​

2025

​

2025

Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and due from banks

​

$

46,700

​

$

48,252

​

$

52,040

​

$

51,357

​

$

47,875

Interest earning deposits with financial institutions

​

​

64,839

​

​

67,571

​

​

66,430

​

​

119,619

​

​

166,366

Cash and cash equivalents

​

​

111,539

​

​

115,823

​

​

118,470

​

​

170,976

​

​

214,241

Securities available-for-sale, at fair value

​

​

1,096,052

​

​

1,115,493

​

​

1,129,633

​

​

1,165,900

​

​

1,190,123

Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock

​

​

36,676

​

​

31,540

​

​

30,085

​

​

25,961

​

​

19,200

Loans held-for-sale

​

​

3,280

​

​

2,023

​

​

3,254

​

​

1,975

​

​

2,375

Loans

​

​

5,219,813

​

​

5,205,721

​

​

5,275,389

​

​

5,215,374

​

​

3,958,275

Less: allowance for credit losses on loans

​

​

72,418

​

​

71,869

​

​

73,718

​

​

72,354

​

​

41,544

Net loans

​

​

5,147,395

​

​

5,133,852

​

​

5,201,671

​

​

5,143,020

​

​

3,916,731

Premises and equipment, net

​

​

85,395

​

​

86,260

​

​

87,449

​

​

88,304

​

​

87,081

Other real estate owned, net

​

​

626

​

​

853

​

​

4,410

​

​

6,464

​

​

2,099

Mortgage servicing rights, at fair value

​

​

9,693

​

​

9,383

​

​

9,490

​

​

9,632

​

​

9,856

Goodwill

​

​

129,196

​

​

129,196

​

​

130,135

​

​

127,873

​

​

93,232

Core deposit intangible ("CDI")

​

​

21,916

​

​

23,073

​

​

24,281

​

​

25,539

​

​

20,462

Bank-owned life insurance (“BOLI”)

​

​

132,046

​

​

130,930

​

​

130,151

​

​

128,870

​

​

113,326

Deferred tax assets, net

​

​

31,296

​

​

30,342

​

​

32,705

​

​

30,375

​

​

23,549

Other assets

​

​

47,827

​

​

50,396

​

​

58,443

​

​

74,364

​

​

44,429

Total assets

​

$

6,852,937

​

$

6,859,164

​

$

6,960,177

​

$

6,999,253

​

$

5,736,704

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Deposits:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest bearing demand

​

$

1,745,475

​

$

1,738,504

​

$

1,781,374

​

$

1,782,193

​

$

1,729,287

Interest bearing:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Savings, NOW, and money market

​

​

2,775,168

​

​

2,762,746

​

​

2,764,609

​

​

2,798,414

​

​

2,424,947

Time

​

​

968,464

​

​

1,062,623

​

​

1,179,966

​

​

1,347,455

​

​

695,946

Total deposits

​

​

5,489,107

​

​

5,563,873

​

​

5,725,949

​

​

5,928,062

​

​

4,850,180

Securities sold under repurchase agreements

​

​

21,337

​

​

24,795

​

​

23,464

​

​

33,382

​

​

35,419

Other short-term borrowings

​

​

312,803

​

​

189,056

​

​

159,565

​

​

25,978

​

​

-

Junior subordinated debentures

​

​

25,774

​

​

25,774

​

​

25,774

​

​

25,774

​

​

25,773

Subordinated debentures

​

​

34,373

​

​

59,564

​

​

59,542

​

​

59,521

​

​

59,500

Notes payable and other borrowings

​

​

14,844

​

​

14,831

​

​

14,819

​

​

14,806

​

​

-

Other liabilities

​

​

55,582

​

​

73,284

​

​

67,078

​

​

61,732

​

​

59,578

Total liabilities

​

​

5,953,820

​

​

5,951,177

​

​

6,076,191

​

​

6,149,255

​

​

5,030,450

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Stockholders’ Equity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Common stock

​

​

53,015

​

​

53,015

​

​

53,015

​

​

53,015

​

​

45,094

Additional paid-in capital

​

​

339,145

​

​

340,459

​

​

340,870

​

​

339,612

​

​

205,706

Retained earnings

​

​

573,158

​

​

551,491

​

​

526,910

​

​

500,075

​

​

497,224

Accumulated other comprehensive loss, net

​

​

(31,113)

​

​

(26,361)

​

​

(30,594)

​

​

(36,823)

​

​

(41,080)

Treasury stock

​

​

(35,088)

​

​

(10,617)

​

​

(6,215)

​

​

(5,881)

​

​

(690)

Total stockholders’ equity

​

​

899,117

​

​

907,987

​

​

883,986

​

​

849,998

​

​

706,254

Total liabilities and stockholders’ equity

​

$

6,852,937

​

$

6,859,164

​

$

6,960,177

​

$

6,999,253

​

$

5,736,704

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Earning Assets

​

$

6,420,660

​

$

6,422,348

​

$

6,504,791

​

$

6,528,829

​

$

5,336,339

Total Interest Bearing Liabilities

​

​

4,152,763

​

​

4,139,389

​

​

4,227,739

​

​

4,305,330

​

​

3,241,585

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

11

​

Reconciliation of Non-GAAP Financial Measures

The tables below provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure for the periods indicated. Dollar amounts below in thousands:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net Income and Earnings Per Share - GAAP and Adjusted

​

Three Months Ended

​

​

​

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

June 30,

​

​

​

​ ​ ​

2026

​ ​ ​

2026

​

2025

​

2025

​

2025

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income before income taxes (GAAP)

​

$

37,838

​

$

34,064

​

$

39,270

​

$

13,068

​

$

29,213

​

​

Pre-tax income adjustments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Provision for credit losses - Day Two

​

​

-

​

​

-

​

​

-

​

​

13,153

​

​

-

​

​

Securities (gains) losses, net

​

​

-

​

​

-

​

​

(8)

​

​

1

​

​

-

​

​

Death benefit related to BOLI

​

​

-

​

​

-

​

​

-

​

​

(430)

​

​

-

​

​

MSR losses

​

​

152

​

​

152

​

​

428

​

​

389

​

​

531

​

​

Acquisition related costs, net of (gains) losses on branch sales

​

​

526

​

​

349

​

​

2,296

​

​

11,508

​

​

810

​

​

Adjusted net income before taxes

​

​

38,516

​

​

34,565

​

​

41,986

​

​

37,689

​

​

30,554

​

​

Taxes on adjusted net income

​

​

9,832

​

​

8,604

​

​

11,208

​

​

9,326

​

​

7,730

​

​

Adjusted net income (non-GAAP)

​

$

28,684

​

$

25,961

​

$

30,778

​

$

28,363

​

$

22,824

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Basic earnings per share (GAAP)

​

$

0.55

​

$

0.49

​

$

0.55

​

$

0.19

​

$

0.49

​

​

Diluted earnings per share (GAAP)

​

​

0.54

​

​

0.48

​

​

0.54

​

​

0.18

​

​

0.48

​

​

Adjusted basic earnings per share (non-GAAP)

​

​

0.56

​

​

0.49

​

​

0.59

​

​

0.54

​

​

0.50

​

​

Adjusted diluted earnings per share (non-GAAP)

​

​

0.55

​

​

0.49

​

​

0.58

​

​

0.53

​

​

0.50

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total average assets

​

​

6,852,937

​

​

6,859,164

​

​

6,960,177

​

​

6,999,253

​

​

5,736,704

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Return on average assets (GAAP)

​

​

1.65

%

​

1.51

%

​

1.64

%

​

0.56

%

​

1.53

%

​

Adjusted return on average assets (non-GAAP)

​

​

1.68

​

​

1.53

​

​

1.75

​

​

1.61

​

​

1.60

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarters Ended

​

​

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

June 30,

​

​

​ ​ ​

2026

​ ​ ​

2026

​

2025

​

2025

​

2025

​

Net Interest Margin

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income (GAAP)

​

$

101,189

​

$

98,346

​

$

102,303

​

$

104,075

​

$

75,238

​

Taxable-equivalent adjustment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans

​

​

14

​

​

13

​

​

9

​

​

10

​

​

9

​

Securities

​

​

301

​

​

307

​

​

324

​

​

328

​

​

327

​

Interest income (TE)

​

​

101,504

​

​

98,666

​

​

102,636

​

​

104,413

​

​

75,574

​

Interest expense (GAAP)

​

​

17,860

​

​

17,202

​

​

19,252

​

​

21,300

​

​

11,004

​

Net interest income (TE)

​

$

83,644

​

$

81,464

​

$

83,384

​

$

83,113

​

$

64,570

​

Net interest income (GAAP)

​

$

83,329

​

$

81,144

​

$

83,051

​

$

82,775

​

$

64,234

​

Average interest earning assets

​

$

6,420,660

​

$

6,422,348

​

$

6,504,791

​

$

6,528,829

​

$

5,336,339

​

Net interest margin (GAAP)

​

​

5.21

%

​

5.12

%

​

5.07

%

​

5.03

%

​

4.83

%

Net interest margin (TE)

​

​

5.23

%

​

5.14

%

​

5.09

%

​

5.05

%

​

4.85

%

​

​

​

​

​

12

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

GAAP

​

​

​

Three Months Ended

​

​

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

June 30,

​

​

​

2026

​

2026

​

2025

​

2025

​

2025

​

Efficiency Ratio (GAAP)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest expense

​

$

51,252

​

$

50,210

​

$

52,935

​

$

63,163

​

$

43,419

​

Less amortization of core deposit

​

​

1,167

​

​

1,176

​

​

1,235

​

​

1,251

​

​

1,022

​

Less other real estate expense, net

​

​

52

​

​

(186)

​

​

81

​

​

128

​

​

35

​

Less acquisition related costs, net of losses (gains) on branch sales

​

​

N/A

​

​

N/A

​

​

N/A

​

​

N/A

​

​

N/A

​

Noninterest expense less adjustments

​

$

50,033

​

$

49,220

​

$

51,619

​

$

61,784

​

$

42,362

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest income

​

$

83,329

​

$

81,144

​

$

83,051

​

$

82,775

​

$

64,234

​

Taxable-equivalent adjustment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans

​

​

N/A

​

​

N/A

​

​

N/A

​

​

N/A

​

​

N/A

​

Securities

​

​

N/A

​

​

N/A

​

​

N/A

​

​

N/A

​

​

N/A

​

Net interest income including adjustments

​

​

83,329

​

​

81,144

​

​

83,051

​

​

82,775

​

​

64,234

​

Noninterest income

​

​

13,261

​

​

12,630

​

​

12,154

​

​

13,109

​

​

10,898

​

Less death benefit related to BOLI

​

​

-

​

​

-

​

​

-

​

​

430

​

​

-

​

Less securities gains (losses)

​

​

-

​

​

-

​

​

8

​

​

(1)

​

​

-

​

Less MSRs mark to market (losses) gains

​

​

(152)

​

​

(152)

​

​

(428)

​

​

(389)

​

​

(531)

​

Taxable-equivalent adjustment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Change in cash surrender value of BOLI

​

​

N/A

​

​

N/A

​

​

N/A

​

​

N/A

​

​

N/A

​

Noninterest income including adjustments

​

​

13,413

​

​

12,782

​

​

12,574

​

​

13,069

​

​

11,429

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest income including adjustments plus noninterest income including adjustments

​

$

96,742

​

$

93,926

​

$

95,625

​

$

95,844

​

$

75,663

​

Efficiency ratio (GAAP)

​

​

51.72

%

​

52.40

%

​

53.98

%

​

64.46

%

​

55.99

%

​

N/A - Not applicable.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Non-GAAP

​

​

​

Three Months Ended

​

​

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

June 30,

​

​

​

2026

​

2026

​

2025

​

2025

​

2025

​

Adjusted Efficiency Ratio (non-GAAP)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest expense

​

$

51,252

​

$

50,210

​

$

52,935

​

$

63,163

​

$

43,419

​

Less amortization of core deposit

​

​

1,167

​

​

1,176

​

​

1,235

​

​

1,251

​

​

1,022

​

Less other real estate expense, net

​

​

52

​

​

(186)

​

​

81

​

​

128

​

​

35

​

Less acquisition related costs, net of losses (gains) on branch sales

​

​

526

​

​

349

​

​

2,296

​

​

11,508

​

​

810

​

Noninterest expense less adjustments

​

$

49,507

​

$

48,871

​

$

49,323

​

$

50,276

​

$

41,552

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest income

​

$

83,329

​

$

81,144

​

$

83,051

​

$

82,775

​

$

64,234

​

Taxable-equivalent adjustment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans

​

​

14

​

​

13

​

​

9

​

​

10

​

​

9

​

Securities

​

​

301

​

​

307

​

​

324

​

​

328

​

​

327

​

Net interest income including adjustments

​

​

83,644

​

​

81,464

​

​

83,384

​

​

83,113

​

​

64,570

​

Noninterest income

​

​

13,261

​

​

12,630

​

​

12,154

​

​

13,109

​

​

10,898

​

Less death benefit related to BOLI

​

​

-

​

​

-

​

​

-

​

​

430

​

​

-

​

Less securities gains (losses)

​

​

-

​

​

-

​

​

8

​

​

(1)

​

​

-

​

Less MSRs mark to market (losses) gains

​

​

(152)

​

​

(152)

​

​

(428)

​

​

(389)

​

​

(531)

​

Taxable-equivalent adjustment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Change in cash surrender value of BOLI

​

​

390

​

​

288

​

​

222

​

​

312

​

​

184

​

Noninterest income including adjustments

​

​

13,803

​

​

13,070

​

​

12,796

​

​

13,381

​

​

11,613

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest income including adjustments plus noninterest income including adjustments

​

$

97,447

​

$

94,534

​

$

96,180

​

$

96,494

​

$

76,183

​

Adjusted efficiency ratio (non-GAAP)

​

​

50.80

%

​

51.70

%

​

51.28

%

​

52.10

%

​

54.54

%

​

​

13

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarters Ended

​

​

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

June 30,

​

​

​

2026

​ ​ ​

2026

​

2025

​

2025

​

2025

​

Adjusted Return on Average Tangible Common Equity Ratio

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income (GAAP)

​

$

28,179

​

$

25,585

​

$

28,787

​

$

9,871

​

$

21,822

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income before income taxes (GAAP)

​

$

37,838

​

$

34,064

​

$

39,270

​

$

13,068

​

$

29,213

​

Pre-tax income adjustments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Provision for credit losses - Day Two

​

​

-

​

​

-

​

​

-

​

​

13,153

​

​

-

​

Securities (gains) losses, net

​

​

-

​

​

-

​

​

(8)

​

​

1

​

​

-

​

MSR losses

​

​

152

​

​

152

​

​

428

​

​

389

​

​

531

​

Merger-related costs, net of losses (gains) on branch sales

​

​

526

​

​

349

​

​

2,296

​

​

11,508

​

​

810

​

Death benefit realized on BOLI

​

​

-

​

​

-

​

​

-

​

​

(430)

​

​

-

​

Amortization of core deposit intangibles

​

​

1,167

​

​

1,176

​

​

1,235

​

​

1,251

​

​

1,022

​

Adjusted net income, excluding intangibles amortization, before taxes

​

​

39,683

​

​

35,741

​

​

43,221

​

​

38,940

​

​

31,576

​

Taxes on adjusted net income

​

​

10,130

​

​

8,896

​

​

11,538

​

​

9,632

​

​

7,989

​

Adjusted net income, excluding intangibles amortization (non-GAAP)

​

$

29,553

​

$

26,845

​

$

31,683

​

$

29,308

​

$

23,587

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Average Common Equity

​

$

899,117

​

​

907,987

​

$

883,986

​

$

849,998

​

$

706,254

​

Less average goodwill and intangible assets

​

​

151,112

​

​

152,269

​

​

154,416

​

​

153,412

​

​

113,694

​

Average tangible common equity (non-GAAP)

​

$

748,005

​

$

755,718

​

$

729,570

​

$

696,586

​

$

592,560

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Return on average common equity (GAAP)

​

​

12.57

%

​

11.43

%

​

12.92

%

​

4.61

%

​

12.39

%

Return on average tangible common equity (non-GAAP)

​

​

15.58

%

​

14.20

%

​

16.15

%

​

6.16

%

​

15.29

%

Adjusted return on average tangible common equity (non-GAAP)

​

​

15.85

%

​

14.41

%

​

17.23

%

​

16.69

%

​

15.97

%

​

14

EX-99.2

EX-99.2

Filename: osbc-20260722xex99d2.htm · Sequence: 3

1

Loan Portfolio Disclosures

AS OF JUNE 30, 2026

Exhibit 99.2

2

Portfolio Segment Outstanding Classified Allowance

Commercial (incl. Leases) $1,451 $43 1.14%

Commercial Real Estate Investor $1,159 $11 1.66%

Commercial Real Estate Owner Occ. $668 $59 0.68%

Construction $154 $13 0.73%

Residential Real Estate $308 $3 0.67%

Multifamily $363 $1 0.41%

HELOC $239 $2 1.38%

Powersport $684 - 2.47%

Other $220 - 1.96%

Total $5,246 $132 1.34%

Construction

3%

Commercial RE

Investor

22%

Commercial RE

Owner Occ.

13%

Commercial

(inc. Leases)

28%

Multifamily

7%

Residential

Real Estate

6%

HELOC

4%

Other (less than

$100 million)

4%

Powersport

13%

Loan Portfolio Composition (in millions)

Q2 2026 Loan Portfolio Disclosures

Total Loans and Allowance for Credit Losses Trend (in millions)

$3,981 $3,940 $3,999 $5,265 $5,252 $5,185 $5,246

$44 $42 $43

$75 $72 $72 $70

$-

$10

$20

$30

$40

$50

$60

$70

$80

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

12/31/2024 3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026

Total Loans ACL

3

Criticized Loans (in millions)

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

$-

$50

$100

$150

$200

$250

$300

$350

9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 3/31/26

Office CRE Healthcare Other Criticized Loans/ Total Loans

Q2 2026 Loan Portfolio Disclosures

$1,802

$4,988

$632 $622

$1,076

$1,498

$6,416

$1,427

$484

$234 $2,088

$1,363

$858 $819

$-

$2,000

$4,000

$6,000

$8,000

$10,000

3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26

OREO OREO Under Contract Repossessed Assets

OREO and Repossessed Assets (in thousands)

4

Participation / Syndication Portfolio Mix (in millions)

Participation / Syndication Portfolio Exposure (in millions)

Parti / Syndi Portfolio Outstanding SNC Classified

Manufacturing C&I $72 - $8

Office CRE $27 - -

Construction $33 - -

Multifamily $26 - -

Hotel CRE $23 - -

Healthcare $16 - -

Other (under $15 million) $68 $9 -

Total Purchased $265 $9 $8 Manufacturing

C&I

27%

Office CRE

10%

Construction

12%

Multifamily

10%

Hotel CRE

9%

Healthcare

6%

Other (under

$15 million)

26%

$543 $463 $362 $285 $265

14.2%

11.1%

8.9%

4.5% 4.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

$-

$100

$200

$300

$400

$500

$600

12/31/2022 12/31/2023 12/31/2024 12/31/2025 6/30/2026

Outstanding % of Total Commitments

Q2 2026 Loan Portfolio Disclosures

5

Property Type Outstanding LTV Classified Allowance

Retail $338 53% $2 0.93%

Industrial $273 48% - 1.14%

Office $174 68% - 2.14%

Hotel $88 51% - 1.67%

Senior Living $78 58% - 1.04%

Parking Garage $76 49% - 0.86%

Other (under $50 million) $132 70% $9 4.77%

Total $1,159 56% $11 1.66%

Commercial Real Estate Investor Portfolio Composition (in millions)

Retail

29%

Office

15%

Industrial

23%

Parking Garage

7%

Hotel

8%

Senior Living

7%

Other (under

$50 million)

11%

Illinois

55%

Wisconsin

7%

Texas

7%

North Carolina

4%

Pennsylvania

3%

Oklahoma

3%

Other (under $30

million)

21%

State Outstanding LTV Classified

Illinois $633 60% $11

Wisconsin $85 58% -

Texas $79 55% -

North Carolina $49 49% -

Oklahoma $34 62% -

Pennsylvania $32 51% -

Florida $29 40% -

Other (under $25 million) $218 49% -

Total $1,159 56% $11

Q2 2026 Loan Portfolio Disclosures

6

Location Outstanding LTV Classified Allowance

Illinois $148 69% - 2.39%

Chicago $32 69% - 2.46%

Suburban $116 69% - 2.37%

Oklahoma $15 64% - 0.84%

Colorado $6 52% - 0.84%

Oregon $4 73% - 0.84%

Wisconsin $1 63% - 0.84%

Total $174 68% - 2.14%

Office Commercial Real Estate Investor Portfolio Composition (in millions)

Illinois - Chicago

18%

Illinois - Suburban

67%

Oklahoma

9%

Other (less than

$5 million)

3%

Colorado

3%

Office Commercial Real Estate Investor Risk Profile (in millions)

Q2 2026 Loan Portfolio Disclosures

$50

$57

$30

$36

$-

$20

$40

$60

< 1 year 1-3 years 3-5 years > 5 years

Maturity Outstanding LTV DSCR

< 1 year $46 69% 1.28x

1-3 years $54 56% 1.38x

3-5 years $22 62% 1.42x

> 5 years $35 54% 1.53x

Total $157 60% 1.39x

Office Commercial Real Estate by Loan Maturity Office Commercial Real Estate > $1 million

7

Industry Outstanding Classified Allowance

Health Care, Social Services $261 $27 0.86%

Other Services $80 $6 0.59%

Retail Trade $63 - 0.18%

Manufacturing $57 - 0.20%

Real Estate, Leasing $43 - 0.26%

Accommodation, Food Service $30 $7 1.64%

Wholesale Trade $28 $1 0.49%

Arts, Entertainment $22 $2 0.75%

Other (under $20 million) $84 $16 1.04%

Total $668 $59 0.68%

Manufacturing

9%

Accommodation,

Food Service

5%

Retail Trade

9%

Real Estate,

Leasing

6%

Healthcare

39%

Other Services

12%

Other (under $30

million)

20%

Commercial Real Estate Owner-Occupied Portfolio Composition (in millions)

Health Care, Social Outstanding Classified Allowance

Assisted Living $139 $26 1.28%

Skilled Nursing $53 - 0.19%

Memory Care $49 - 0.33%

Child Care $6 - 1.99%

Other (under $5 million) $14 $1 0.68%

Total $261 $27 0.86%

Skilled

Nursing

20%

Assisted

Living

53%

Memory Care

19%

Child Care

2%

Other (under $5 million)

6%

Q2 2026 Loan Portfolio Disclosures

8

Commercial & Industrial Outstanding Classified

Manufacturing $437 $9

Construction $228 $6

Administrative, Waste Service $160 $4

Professional $133 -

Transportation, Warehousing $102 $14

Finance, Insurance $91 -

Real Estate, Leasing $74 -

Health Care, Social Services $61 $1

Wholesale Trade $53 $3

Other (under $20 million) $112 $6

Total $1,451 $43

Commercial (including Leases) Portfolio Composition (in millions)

Construction

16%

Manufacturing

30%

Transportation,

Warehousing

7%

Finance, Insurance

6%

Professional

9%

Administration,

Waste Service

11%

Health Care,

Social Services

4%

Real Estate,

Leasing

5%

Other (under

$60 million)

12%

Commercial Revolving Line Utilization (outstanding in millions)

$677 $653 $587 $574 $658 $717 $718 $756

56% 55%

52% 53%

55% 57% 57%

60%

30%

35%

40%

45%

50%

55%

60%

65%

70%

$400

$450

$500

$550

$600

$650

$700

$750

$800

9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26

Q2 2026 Loan Portfolio Disclosures

9

Origination Tier Outstanding Weighted FICO Portfolio APR %

Tier 1 $362 777 7.96%

Tier 2 $129 711 10.21%

Tier 3 $77 684 12.73%

Tier 4 $48 659 14.70%

Tier 5 $68 605 17.01%

Total $684 730 10.20%

Powersport Portfolio Composition (in millions)

Tier 1

54%

Tier 2

19%

Tier 3

11%

Tier 4

6%

Tier 5

10%

Historical Contribution Margin

Q2 2026 Loan Portfolio Disclosures

Contribution Margin (1) 2022 (EBG) 2023 (EBG) 2024 (EBG) 12/31/2025 3/31/2026 6/30/2026

Portfolio APR 7.42% 8.13% 9.02% 9.82% 10.14% 10.20%

Net Promo Accretion 0.69% 0.41% 0.74% 1.03% 1.30% 1.33%

Participation -0.84% -0.87% -0.87% -0.91% -1.08% -1.12%

Net Loss -0.62% -1.11% -1.39% -1.76% -2.06% -1.80%

Net Contribution Margin 6.65% 6.56% 7.52% 8.19% 8.30% 8.62%

(1) Historical contribution margin represents Evergreen Bank Group (EBG) performance through 6/30/2025. Contribution margin presented after 6/30/2025 excludes purchase

accounting adjustments.

Asset Type Outstanding % of Total Portfolio APR %

New $523 77% 9.54%

Used $161 23% 12.42%

Total $684 10.20%

10

Net Charge-offs (Recoveries) (in thousands)

Portfolio 9/30/2025 (Q) 12/31/2025 (Q) 3/31/2026 (Q) 6/30/2026 (Q) 6/30/2026 (TTM) NCO(R) %

Commercial (incl. Leases) $1,233 ($29) $1,495 $3,327 $6,026 0.42%

Commercial Real Estate Investor ($15) ($14) $3,928 $2,804 $6,703 0.58%

Commercial Real Estate Owner Occupied ($2) $1,125 ($14) ($1) $1,108 0.17%

Construction ($46) - - - ($46) (0.03%)

Residential Real Estate ($9) ($11) ($9) ($22) ($51) (0.02%)

Multifamily $181 - - - $181 0.05%

HELOC ($19) ($49) ($6) ($14) ($88) (0.04%)

Powersport $2,980 $4,466 $3,894 $2,826 $14,166 2.07%

Other $805 $493 $488 $328 $2,114 0.96%

Total $5,108 $5,981 $9,776 $9,248 $30,113 0.57%

6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026

Beginning ACL Balance $41,551 $42,990 $75,037 $72,301 $72,126

Day 1 Credit Mark (PCD) - $17,540 - - -

Day 2 Credit Mark (Non-PCD) - $13,153 - - -

Plus: Provision $2,224 $6,462 $3,245 $9,602 $7,502

Less: Net Charge-off (Recovery) $785 $5,108 $5,981 $9,776 $9,248

Ending ACL Balance $42,990 $75,037 $72,301 $72,126 $70,380

Allowance for Credit Losses Quarterly Rollforward(2) (in thousands)

Q2 2026 Loan Portfolio Disclosures

(2) The Allowance for Credit Losses presented excludes the Allowance for Unfunded Commitments, which totaled $2.0 million as of June 30, 2026 and is reported within other

liabilities on the Statements of Condition.

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v3.26.1

Document and Entity Information

Jul. 22, 2026

Document and Entity Information [Abstract]

Document Type

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Document Period End Date

Jul. 22, 2026

Entity Registrant Name

OLD SECOND BANCORP INC

Entity Incorporation, State or Country Code

DE

Securities Act File Number

000-10537

Entity Tax Identification Number

36-3143493

Entity Address, Address Line One

37 South River Street

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.

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