Form 8-K
8-K — OLD SECOND BANCORP INC
Accession: 0000357173-26-000057
Filed: 2026-10-21
Period: 2026-10-21
CIK: 0000357173
SIC: 6022 (STATE COMMERCIAL BANKS)
Item: Results of Operations and Financial Condition
Item: Financial Statements and Exhibits
Documents
8-K — osbc-20261021x8k.htm (Primary)
EX-99.1 (osbc-ex99d1.htm)
EX-99.2 (osbc-ex99d2.htm)
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8-K
8-K (Primary)
Filename: osbc-20261021x8k.htm · Sequence: 1
OLD SECOND BANCORP INC_October 21, 2026
OLD SECOND BANCORP INC0000357173false00003571732026-10-212026-10-21
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): October 21, 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 October 21, 2026, Old Second Bancorp, Inc. (the “Company’s”) issued a press release announcing its financial results for the third quarter ended September 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
Exhibit No.
Description
99.1
Press Release of Old Second Bancorp, Inc. dated October 21, 2026
99.2
Loan Portfolio Disclosures for Old Second Bancorp, Inc. dated September 30, 2026
104
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)
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: October 21, 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-ex99d1.htm · Sequence: 2
Old Second Bancorp, Inc
(NASDAQ:OSBC)
Exhibit 99.1
Contact:
Bradley S. Adams
For Immediate Release
Chief Financial Officer
October 21, 2026
(630) 906-5484
Old Second Bancorp, Inc. Reports Third Quarter 2026 Net Income of $28.9 Million,
or $0.56 per Diluted Share
AURORA, IL, October 21, 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 third quarter of 2026. Our net income was $28.9 million, or $0.56 per diluted share, for the third quarter of 2026, compared to net income of $28.2 million, or $0.54 per diluted share, for the second quarter of 2026. Adjusted net income1 was $28.5 million, or adjusted diluted earnings per share1 of $0.55, for the third quarter of 2026, compared to adjusted net income1 of $28.7 million, or adjusted diluted earnings per share1 of $0.55, for the second quarter of 2026.
Notable Items2
● Net interest and dividend income was $84.0 million, reflecting an increase of $720,000, or 0.86%.
● Net interest margin (NIM) on a fully tax-equivalent basis1 was 5.27%, an increase of four basis points.
● Provision for credit losses of $6.8 million compared to $7.5 million, a decrease of $750,000.
● Noninterest income was $13.1 million, a decrease of $191,000, or 1.44%, compared to $13.3 million.
● Noninterest expense was $51.6 million, an increase of $370,000, or 0.72%, compared to $51.3 million.
● Efficiency ratio increased 62 basis points to 52.34%; adjusted efficiency ratio was 52.06%1.
● Provision for income tax of $9.8 million, compared to $9.7 million, with an effective tax rate of 25.31% and 25.53%, respectively.
● Return on average assets of 1.69%, compared to 1.65%.
● Return on average tangible common equity (ROATCE)1 of 15.77%; adjusted ROATCE1 of 15.53%.
● On October 20, 2026, our Board of Directors declared a cash dividend of $0.08 per share of common stock, payable on November 9, 2026, to stockholders of record as of October 30, 2026.
Chairman, President and Chief Executive Officer Jim Eccher said, “Old Second reported strong results in the third quarter of 2026 led by robust margin performance and disciplined operating efficiency. Loan losses remained higher than we wanted this quarter due to one previously identified commercial relationship, but the trends are extremely encouraging with nonperforming and classified loans declining by 30% and 44%, respectively. Criticized loans, an early indicator of future credit trends, also improved significantly during the quarter and now stand at just 1.88% of total loans, compared to 3.05% last quarter. Criticized assets also declined significantly quarter over quarter, decreasing to 1.91% of total loans from 3.08% in the previous quarter. Profitability remains excellent with the tax-equivalent net interest margin increasing by four basis points this quarter to 5.27%, which demonstrates the benefits of a strong core deposit base and diversified loan portfolio. This level of performance and a strong capital position afforded Old Second the opportunity to repurchase 1.5 million common shares this quarter, or approximately 3% of all outstanding shares. Third quarter return on average assets and return on average tangible common equity were 1.69% and 15.77%, respectively, and the efficiency ratio was a very healthy 52.34%. Based on the strength of the balance sheet and income statement trends, Old Second elected in this fourth quarter to increase the common dividend by 14%, as we continue to regularly deliver dividend growth commensurate with the bank’s performance. We are proud of our performance for the quarter, believe we have turned the corner on credit and look forward to delivering solid results to our stockholders for the remainder 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 $28.9 million, or $0.56 per diluted share, for the third quarter of 2026, compared to net income of $28.2 million, or $0.54 per diluted share.
Net Interest Margin continued to be strong and nominal increases in the cost of funds were outweighed by stronger yields on loans during the quarter.
● Net interest margin on a fully tax-equivalent1 basis improved four basis points, to 5.27%.
● Loan yields increased three basis points on higher average loan balances during the quarter but investment yields decreased five basis points driven by maturities and paydowns of securities.
● Cost of funds increased two basis points to 1.23%, driven by higher costs on deposits, discussed below, as well as other short-term borrowings due to higher average FHLB overnight borrowings.
Noninterest Income decreased $191,000, or 1.44%, in the third quarter of 2026.
● Mortgage banking income increased in the period mainly due to $623,000 of mortgage servicing rights (“MSR”) mark to market gains compared to $152,000 of losses in the previous quarter, primarily the result of increased rates during the quarter.
● The cash surrender value of BOLI decreased $673,000 in the current quarter primarily due to market rate changes impacting company-owned life insurance, which is included within the same line item.
Noninterest Expense increased $370,000, or 0.72%.
● Salaries and employee benefits increased $743,000, driven by higher salaries, officer incentive accruals, and employee insurance premiums, partially offset by decreases in payroll taxes and deferred compensation expense due to market interest rate changes.
● Occupancy, furniture and equipment increased $166,000 due to an increase in real estate taxes and office equipment maintenance.
● Advertising and marketing expense increased $120,000 due to a 2026 brand awareness campaign.
● Professional fees increased $257,000 due to consulting and management fees related to the 2026 brand awareness campaign as well as an increase in loan-related legal fees.
● Other expenses decreased $868,000 primarily due to decreases in director deferred compensation expense stemming from market interest rate changes, a decrease in litigation expense as two nonrecurring items with limited exposure were recorded in the prior quarter, and a decrease in miscellaneous expenses as the previous quarter included an accrual related to powersport loan gap insurance refunds due to customers related to loan prepayments.
● Efficiency ratio for the quarter was 52.34% compared to 51.72% and the adjusted efficiency ratio1 was 52.06% compared to 50.80%.
Loans decreased $7.8 million driven primarily by decreases in commercial and commercial real estate – investor.
● Total loans were $5.24 billion.
● Average loans (including loans held-for-sale) for the third quarter of 2026 totaled $5.23 billion, reflecting an increase of $4.0 million.
Credit Quality key performance metrics improved significantly during the quarter, although charge-offs were higher than expected and were concentrated in a single commercial relationship.
● Nonperforming loans totaled $39.6 million compared to $56.5 million. The $16.8 million decrease reflects a $17.2 million decline in nonaccrual loans partially offset by a slight increase to loans past due 90 days or more accruing. Nonaccrual changes include $9.1 million of net principal paydowns, $6.2 million of full charge-offs, and $3.3 million of partial charge-offs, partially offset by $1.4 million of additions to nonaccrual.
● Nonperforming loans to total loans was 0.76% compared to 1.08%.
● Classified loans totaled $74.2 million compared to $132.1 million.
● Criticized loans (special mention, substandard and doubtful) to total loans was 1.88% compared to 3.05%. The quarter-over-quarter decrease is driven by a decrease of $3.4 million in special mention loans, a decrease of $17.2 million of nonaccrual loans, and a decrease of $40.7 million in substandard accruing.
● Provision for credit losses of $6.8 million was driven by $3.1 million of net charge-offs related to powersport loans, and non-powersport charge-offs were primarily isolated to two commercial loans on a single relationship.
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
Deposits experienced declines in noninterest bearing 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 $5.33 billion, a decrease of $117.1 million, or 2.15%.
● Cost of deposits increased two basis points to 1.02% as the cost of NOW, money market, and savings accounts all reflected increases, which were partially offset by a five basis point decline in the cost of time deposits.
● Average interest-bearing deposits decreased $55.5 million and average noninterest bearing deposits decreased $22.6 million.
Capital decreased due to share repurchases and an increase in accumulated other comprehensive unrealized loss on available-for-sale securities, partially offset by strong net income.
● Stockholders’ equity decreased $24.3 million primarily due to $3.6 million of dividends declared, an $11.5 million increase in the unrealized losses on securities and swaps due to market interest rate increases, and a $39.2 million increase in treasury stock from share repurchases, net of stock award vestings, partially offset by net income of $28.9 million.
● Share repurchases of 1,533,104 shares at an average price paid per share of $25.76 during the third quarter, for a total reduction to capital of $39.5 million, including excise taxes.
● ROATCE1 was 15.77% compared to 15.58%.
● Tangible common equity to tangible assets1 was 11.00% compared to 11.19%.
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.
3
Cautionary Note Regarding Forward-Looking Statements
This earnings release and statements by our management may contain forward-looking statements within the meaning of 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, building capital, credit quality trends, the adequacy of our allowance for credit losses, and future share repurchases. 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 the allowance for credit losses, 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 disclosures 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, October 22, 2026, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss our third 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/2239/54568
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.
4
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 13 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, adjusted diluted earnings per share, adjusted return on average assets, net interest income and net interest margin on a fully tax-equivalent basis, our adjusted efficiency ratio, tangible common equity to tangible assets, and return on average tangible common equity, including on an adjusted 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. The tangible measures exclude goodwill and other intangible assets, and management believes they are useful in evaluating our capital adequacy and the return generated on our tangible capital base. 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 14.
5
Financial Highlights
Quarters Ended
(Dollars in thousands - unaudited)
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Balance sheet summary
Total assets
$
6,778,591
$
6,870,305
$
6,849,221
$
6,902,675
$
6,991,754
Total securities available-for-sale
978,576
1,040,760
1,115,443
1,090,523
1,157,480
Total loans
5,238,057
5,245,870
5,185,237
5,252,131
5,264,505
Total deposits
5,327,564
5,444,688
5,564,999
5,596,069
5,760,250
Total liabilities
5,900,039
5,967,494
5,955,924
6,005,907
6,125,069
Total equity
878,552
902,811
893,297
896,768
866,685
Total tangible assets
$
6,629,195
$
6,719,760
$
6,697,509
$
6,749,787
$
6,836,565
Total tangible equity
729,156
752,266
741,585
743,880
711,496
Income statement summary
Net interest income
$
84,049
$
83,329
$
81,144
$
83,051
$
82,775
Provision for credit losses
6,750
7,500
9,500
3,000
19,653
Noninterest income
13,070
13,261
12,630
12,154
13,109
Noninterest expense
51,622
51,252
50,210
52,935
63,163
Net income
28,940
28,179
25,585
28,787
9,871
Effective tax rate
25.31
%
25.53
%
24.89
%
26.69
%
24.46
%
Profitability ratios
Return on average assets (ROAA)
1.69
%
1.65
%
1.51
%
1.64
%
0.56
%
Return on average equity (ROAE)
12.76
12.57
11.43
12.92
4.61
Net interest margin (tax-equivalent) 1
5.27
5.23
5.14
5.09
5.05
Efficiency ratio
52.34
51.72
52.40
53.98
64.46
Return on average tangible common equity (ROATCE) 1
15.77
15.58
14.20
16.15
6.16
Tangible common equity to tangible assets (TCE/TA) 1
11.00
11.19
11.07
11.02
10.41
Per share data
Diluted earnings per share
$
0.56
$
0.54
$
0.48
$
0.54
$
0.18
Tangible book value per share
14.75
14.77
14.35
14.12
13.51
Company capital ratios 2
Common equity tier 1 capital ratio
13.13
%
13.28
%
13.13
%
12.99
%
12.44
%
Tier 1 risk-based capital ratio
13.56
13.70
13.55
13.41
12.85
Total risk-based capital ratio
15.05
15.26
15.64
15.46
15.10
Tier 1 leverage ratio
11.99
12.05
11.88
11.70
11.21
Bank capital ratios 2, 3
Common equity tier 1 capital ratio
13.65
%
13.72
%
13.80
%
13.17
%
13.14
%
Tier 1 risk-based capital ratio
13.65
13.72
13.80
13.17
13.14
Total risk-based capital ratio
14.63
14.77
14.88
14.22
14.39
Tier 1 leverage ratio
12.05
12.05
12.09
11.49
11.45
1 See the discussion entitled “Non-GAAP Presentations” above and the tables on pages 13 and 15 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.
6
Old Second Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands - unaudited)
Quarters Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Assets
Cash and due from banks
$
42,155
$
47,964
$
48,100
$
51,665
$
53,099
Interest earning deposits with financial institutions
65,948
95,369
67,627
72,360
63,426
Cash and cash equivalents
108,103
143,333
115,727
124,025
116,525
Securities available-for-sale, at fair value
978,576
1,040,760
1,115,443
1,090,523
1,157,480
Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock
40,811
40,125
31,350
32,025
28,282
Loans held-for-sale
1,407
2,349
4,344
3,645
1,463
Loans
5,238,057
5,245,870
5,185,237
5,252,131
5,264,505
Less: allowance for credit losses on loans
64,189
70,380
72,126
72,301
75,037
Net loans
5,173,868
5,175,490
5,113,111
5,179,830
5,189,468
Premises and equipment, net
83,364
84,505
85,634
86,645
87,714
Other real estate owned, net
-
622
632
1,427
6,416
Mortgage servicing rights, at fair value
10,690
9,825
9,579
9,459
9,549
Goodwill
129,196
129,196
129,196
129,196
130,262
Core deposit intangible ("CDI")
20,200
21,349
22,516
23,692
24,927
Bank-owned life insurance (“BOLI”)
134,288
133,493
131,563
130,481
129,057
Deferred tax assets, net
33,260
28,689
31,321
31,276
33,374
Other assets
64,828
60,569
58,805
60,451
77,237
Total assets
$
6,778,591
$
6,870,305
$
6,849,221
$
6,902,675
$
6,991,754
Liabilities
Deposits:
Noninterest bearing demand
$
1,671,745
$
1,746,755
$
1,755,548
$
1,739,117
$
1,738,028
Interest bearing:
Savings, NOW, and money market
2,772,737
2,771,532
2,795,038
2,745,540
2,763,990
Time
883,082
926,401
1,014,413
1,111,412
1,258,232
Total deposits
5,327,564
5,444,688
5,564,999
5,596,069
5,760,250
Securities sold under repurchase agreements
29,908
23,241
23,130
23,769
24,290
Other short-term borrowings
395,000
375,000
200,000
215,000
165,000
Junior subordinated debentures
25,774
25,774
25,774
25,774
25,774
Subordinated debentures
29,808
29,798
59,574
59,552
59,531
Notes payable and other borrowings
9,893
14,850
14,837
14,825
14,812
Other liabilities
82,092
54,143
67,610
70,918
75,412
Total liabilities
5,900,039
5,967,494
5,955,924
6,005,907
6,125,069
Stockholders’ Equity
Common stock
53,015
53,015
53,015
53,015
53,015
Additional paid-in capital
340,751
339,616
338,418
341,451
340,108
Retained earnings
609,074
583,701
559,129
537,231
512,131
Accumulated other comprehensive loss, net
(43,395)
(31,861)
(31,095)
(28,738)
(32,294)
Treasury stock
(80,893)
(41,660)
(26,170)
(6,191)
(6,275)
Total stockholders’ equity
878,552
902,811
893,297
896,768
866,685
Total liabilities and stockholders’ equity
$
6,778,591
$
6,870,305
$
6,849,221
$
6,902,675
$
6,991,754
7
Old Second Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except share data - unaudited)
Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Interest and dividend income
Loans, including fees
$
91,356
$
89,845
$
87,138
$
90,925
$
91,301
Loans held-for-sale
31
62
43
35
31
Securities:
Taxable
8,416
9,088
8,949
9,136
9,872
Tax exempt
1,079
1,132
1,155
1,219
1,235
Dividends from FHLBC and FRBC stock
672
535
512
390
381
Interest earning deposits with financial institutions
537
527
549
598
1,255
Total interest and dividend income
102,091
101,189
98,346
102,303
104,075
Interest expense
Savings, NOW, and money market deposits
8,105
7,512
7,147
7,906
9,043
Time deposits
5,757
6,199
7,217
8,665
10,896
Securities sold under repurchase agreements
44
40
50
45
60
Other short-term borrowings
3,145
2,989
1,791
1,644
308
Junior subordinated debentures
269
289
296
288
288
Subordinated debentures
542
675
546
546
547
Notes payable and other borrowings
180
156
155
158
158
Total interest expense
18,042
17,860
17,202
19,252
21,300
Net interest and dividend income
84,049
83,329
81,144
83,051
82,775
Provision for credit losses
6,750
7,500
9,500
3,000
19,653
Net interest and dividend income after provision for credit losses
77,299
75,829
71,644
80,051
63,122
Noninterest income 1
Wealth management
3,682
3,628
3,383
3,537
3,515
Service charges on deposits
3,134
3,075
3,130
3,125
3,202
Secondary mortgage fees
101
166
121
123
92
Mortgage servicing rights mark to market gain (loss)
623
(152)
(152)
(428)
(389)
Mortgage servicing income
467
464
497
444
469
Net gain on sales of mortgage loans
363
640
555
657
620
Securities gains (losses), net
(1)
-
-
8
(1)
Change in cash surrender value of BOLI
796
1,469
1,082
834
1,175
Death benefit realized on BOLI
-
-
-
-
430
Card related income
2,479
2,483
2,350
2,548
2,581
Other income
1,426
1,488
1,664
1,306
1,415
Total noninterest income
13,070
13,261
12,630
12,154
13,109
Noninterest expense 1
Salaries and employee benefits
30,846
30,103
29,673
30,996
39,723
Occupancy, furniture and equipment
5,284
5,118
5,371
5,092
4,937
Computer and data processing
3,258
3,217
3,375
4,798
4,002
FDIC insurance
746
759
759
720
854
Net teller & bill paying
754
724
716
701
691
General bank insurance
355
351
353
354
437
Amortization of core deposit intangible
1,149
1,167
1,176
1,235
1,251
Advertising and marketing expense
603
483
551
437
650
Card related expense
1,589
1,604
1,519
1,652
1,708
Professional fees
1,417
1,160
1,299
1,265
3,145
Consumer credit expense
1,725
1,720
1,522
1,451
1,368
Other real estate expense, net
(30)
52
(186)
81
128
Other expense
3,926
4,794
4,082
4,153
4,269
Total noninterest expense
51,622
51,252
50,210
52,935
63,163
Income before income taxes
38,747
37,838
34,064
39,270
13,068
Provision for income taxes
9,807
9,659
8,479
10,483
3,197
Net income
$
28,940
$
28,179
$
25,585
$
28,787
$
9,871
Basic earnings per share
$
0.57
$
0.55
$
0.49
$
0.55
$
0.19
Diluted earnings per share
0.56
0.54
0.48
0.54
0.18
Dividends declared per share
0.07
0.07
0.07
0.07
0.06
Ending common shares outstanding
49,417,867
50,938,962
51,665,660
52,669,224
52,664,535
Weighted-average basic shares outstanding
50,302,629
51,250,245
52,450,306
52,667,899
52,686,391
Weighted-average diluted shares outstanding
51,145,790
52,120,337
53,303,072
53,480,431
53,509,690
1 Certain items in prior periods have been reclassified to conform to the current presentation.
8
Analysis of Average Balances,
Tax Equivalent Income / Expense and Rates
(Dollars in thousands - unaudited)
Quarters Ended
September 30, 2026
June 30, 2026
September 30, 2025
Average
Income /
Rate
Average
Income /
Rate
Average
Income /
Rate
Balance
Expense
%
Balance
Expense
%
Balance
Expense
%
Assets
Interest earning deposits with financial institutions
$
65,381
$
537
3.26
$
64,839
$
527
3.26
$
119,619
$
1,255
4.16
Securities:
Taxable
891,503
8,416
3.75
955,176
9,088
3.82
1,016,279
9,872
3.85
Non-taxable (TE)1
129,636
1,366
4.18
140,876
1,433
4.08
149,621
1,563
4.14
Total securities (TE)1
1,021,139
9,782
3.80
1,096,052
10,521
3.85
1,165,900
11,435
3.89
FHLBC and FRBC Stock
38,576
672
6.91
36,676
535
5.85
25,961
381
5.82
Loans and loans held-for-sale1, 2
5,227,120
91,400
6.94
5,223,093
89,921
6.91
5,217,349
91,342
6.95
Total interest earning assets
6,352,216
102,391
6.40
6,420,660
101,504
6.34
6,528,829
104,413
6.34
Cash and due from banks
45,146
-
-
46,700
-
-
51,357
-
-
Allowance for credit losses on loans
(70,983)
-
-
(72,418)
-
-
(72,354)
-
-
Other noninterest earning assets
460,566
-
-
457,995
-
-
491,421
-
-
Total assets
$
6,786,945
$
6,852,937
$
6,999,253
Liabilities and Stockholders' Equity
NOW accounts
$
721,922
$
1,102
0.61
$
717,468
$
897
0.50
$
668,439
$
825
0.49
Money market accounts
961,994
4,704
1.94
948,319
4,400
1.86
954,964
4,979
2.07
Savings accounts
1,098,934
2,299
0.83
1,109,381
2,215
0.80
1,175,011
3,239
1.09
Time deposits
905,298
5,757
2.52
968,464
6,199
2.57
1,347,455
10,896
3.21
Interest bearing deposits
3,688,148
13,862
1.49
3,743,632
13,711
1.47
4,145,869
19,939
1.91
Securities sold under repurchase agreements
24,059
44
0.73
21,337
40
0.75
33,382
60
0.71
Other short-term borrowings
321,413
3,145
3.88
312,803
2,989
3.83
25,978
308
4.70
Junior subordinated debentures
25,774
269
4.14
25,774
289
4.50
25,774
288
4.43
Subordinated debentures
29,803
542
7.22
34,373
675
7.88
59,521
547
3.65
Notes payable and other borrowings
13,938
180
5.12
14,844
156
4.22
14,806
158
4.23
Total interest bearing liabilities
4,103,135
18,042
1.74
4,152,763
17,860
1.73
4,305,330
21,300
1.96
Noninterest bearing deposits
1,722,851
-
-
1,745,475
-
-
1,782,193
-
-
Other liabilities
61,430
-
-
55,582
-
-
61,732
-
-
Stockholders' equity
899,529
-
-
899,117
-
-
849,998
-
-
Total liabilities and stockholders' equity
$
6,786,945
$
6,852,937
$
6,999,253
Net interest income (GAAP)
$
84,049
$
83,329
$
82,775
Net interest margin (GAAP)
5.25
5.21
5.03
Net interest income (TE)1
$
84,349
$
83,644
$
83,113
Net interest margin (TE)1
5.27
5.23
5.05
Interest bearing liabilities to earning assets
64.59
%
64.68
%
65.94
%
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 13 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 13, and includes loan fee income of $1.8 million for the third quarter of 2026, loan fee income of $2.0 million for the second quarter of 2026, and loan fee income of $1.2 million for the third quarter of 2025. Nonaccrual loans are included in the above stated average balances.
9
Loans and Credit Quality
Loans
Quarters Ended
(Dollars in thousands)
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Commercial
$
867,362
$
913,527
$
845,278
$
842,130
$
786,095
Leases
554,370
537,197
539,116
548,256
550,201
Commercial real estate – investor
1,131,857
1,159,168
1,169,318
1,212,384
1,257,328
Commercial real estate – owner occupied
684,169
667,645
702,986
706,567
680,412
Construction
153,491
153,553
143,563
173,630
176,387
Residential real estate – investor
65,679
65,133
69,763
70,225
69,362
Residential real estate – owner occupied
247,515
242,768
239,711
230,432
231,547
Multifamily
370,431
363,352
357,131
339,131
378,213
HELOC
245,938
239,307
235,637
235,293
234,885
Powersport
689,229
683,939
674,116
696,959
715,498
Other1
228,016
220,281
208,618
197,124
184,577
Total loans
$
5,238,057
$
5,245,870
$
5,185,237
$
5,252,131
$
5,264,505
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)
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Nonaccrual loans
$
36,579
$
53,747
$
62,636
$
47,952
$
34,126
Loans past due 90 days or more and still accruing interest
3,057
2,736
12,868
4,879
13,859
Total nonperforming loans
39,636
56,483
75,504
52,831
47,985
Other real estate owned
-
622
632
1,427
6,416
Repossessed assets 1
1,279
819
858
1,363
2,088
Total nonperforming assets
$
40,915
$
57,924
$
76,994
$
55,621
$
56,489
30-89 days past due loans and still accruing interest
$
43,553
$
22,499
$
50,036
$
52,169
$
22,415
Nonaccrual loans to total loans
0.70
%
1.02
%
1.21
%
0.91
%
0.65
%
Nonperforming loans to total loans
0.76
%
1.08
%
1.46
%
1.01
%
0.91
%
Nonperforming assets to total loans plus OREO and repossessed assets
0.78
%
1.10
%
1.48
%
1.06
%
1.07
%
Purchased credit-deteriorated loans to total loans
1.00
%
1.19
%
1.35
%
1.50
%
1.61
%
Allowance for credit losses
$
64,189
$
70,380
$
72,126
$
72,301
$
75,037
Allowance for credit losses to total loans
1.23
%
1.34
%
1.39
%
1.38
%
1.43
%
Allowance for credit losses to nonaccrual loans
175.48
%
130.95
%
115.15
%
150.78
%
219.88
%
1 Repossessed assets are reported in other assets.
10
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)
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Commercial
$
13,190
$
39,646
$
50,640
$
51,587
$
50,680
Leases
1,729
2,930
2,604
2,428
1,277
Commercial real estate – investor
12,730
11,262
14,959
14,245
2,853
Commercial real estate – owner occupied
26,546
58,582
60,594
64,081
72,020
Construction
12,866
12,976
12,983
11,421
1,612
Residential real estate – investor
1,030
662
1,012
1,142
1,228
Residential real estate – owner occupied
2,249
2,076
1,886
1,897
1,839
Multifamily
1,254
1,197
1,489
1,494
1,183
HELOC
2,355
2,250
1,832
1,466
1,538
Powersport
145
198
204
68
-
Other1
154
318
369
270
30
Total classified loans
$
74,248
$
132,097
$
148,572
$
150,099
$
134,260
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)
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Commercial
$
9,171
$
2,983
$
1,298
$
(44)
$
385
Leases
172
344
197
15
848
Commercial real estate – investor
(14)
2,804
3,919
(14)
(15)
Commercial real estate – owner occupied
(1)
(1)
(5)
1,125
(2)
Construction
-
-
-
-
(46)
Residential real estate – investor
(3)
(1)
(2)
(1)
(2)
Residential real estate – owner occupied
(10)
(21)
(7)
(11)
(7)
Multifamily
-
-
-
-
181
HELOC
(10)
(14)
(6)
(49)
(19)
Powersport
3,133
2,826
3,894
4,466
2,980
Other 1
288
328
488
494
805
Net charge-offs (recoveries)
$
12,726
$
9,248
$
9,776
$
5,981
$
5,108
1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts.
11
Old Second Bancorp, Inc. and Subsidiaries
Quarterly Consolidated Average Balance
(In thousands - unaudited)
Quarters Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Assets
Cash and due from banks
$
45,146
$
46,700
$
48,252
$
52,040
$
51,357
Interest earning deposits with financial institutions
65,381
64,839
67,571
66,430
119,619
Cash and cash equivalents
110,527
111,539
115,823
118,470
170,976
Securities available-for-sale, at fair value
1,021,139
1,096,052
1,115,493
1,129,633
1,165,900
Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock
38,576
36,676
31,540
30,085
25,961
Loans held-for-sale
1,815
3,280
2,023
3,254
1,975
Loans
5,225,305
5,219,813
5,205,721
5,275,389
5,215,374
Less: allowance for credit losses on loans
70,983
72,418
71,869
73,718
72,354
Net loans
5,154,322
5,147,395
5,133,852
5,201,671
5,143,020
Premises and equipment, net
84,252
85,395
86,260
87,449
88,304
Other real estate owned, net
616
626
853
4,410
6,464
Mortgage servicing rights, at fair value
9,899
9,693
9,383
9,490
9,632
Goodwill
129,196
129,196
129,196
130,135
127,873
Core deposit intangible ("CDI")
20,758
21,916
23,073
24,281
25,539
Bank-owned life insurance (“BOLI”)
133,768
132,046
130,930
130,151
128,870
Deferred tax assets, net
29,477
31,296
30,342
32,705
30,375
Other assets
52,600
47,827
50,396
58,443
74,364
Total assets
$
6,786,945
$
6,852,937
$
6,859,164
$
6,960,177
$
6,999,253
Liabilities
Deposits:
Noninterest bearing demand
$
1,722,851
$
1,745,475
$
1,738,504
$
1,781,374
$
1,782,193
Interest bearing:
Savings, NOW, and money market
2,782,850
2,775,168
2,762,746
2,764,609
2,798,414
Time
905,298
968,464
1,062,623
1,179,966
1,347,455
Total deposits
5,410,999
5,489,107
5,563,873
5,725,949
5,928,062
Securities sold under repurchase agreements
24,059
21,337
24,795
23,464
33,382
Other short-term borrowings
321,413
312,803
189,056
159,565
25,978
Junior subordinated debentures
25,774
25,774
25,774
25,774
25,774
Subordinated debentures
29,803
34,373
59,564
59,542
59,521
Notes payable and other borrowings
13,938
14,844
14,831
14,819
14,806
Other liabilities
61,430
55,582
73,284
67,078
61,732
Total liabilities
5,887,416
5,953,820
5,951,177
6,076,191
6,149,255
Stockholders’ Equity
Common stock
53,015
53,015
53,015
53,015
53,015
Additional paid-in capital
340,227
339,145
340,459
340,870
339,612
Retained earnings
598,284
573,158
551,491
526,910
500,075
Accumulated other comprehensive loss, net
(33,884)
(31,113)
(26,361)
(30,594)
(36,823)
Treasury stock
(58,113)
(35,088)
(10,617)
(6,215)
(5,881)
Total stockholders’ equity
899,529
899,117
907,987
883,986
849,998
Total liabilities and stockholders’ equity
$
6,786,945
$
6,852,937
$
6,859,164
$
6,960,177
$
6,999,253
Total Earning Assets
$
6,352,216
$
6,420,660
$
6,422,348
$
6,504,791
$
6,528,829
Total Interest Bearing Liabilities
4,103,135
4,152,763
4,139,389
4,227,739
4,305,330
12
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
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Income before income taxes (GAAP)
$
38,747
$
37,838
$
34,064
$
39,270
$
13,068
Pre-tax income adjustments:
Provision for credit losses - Day Two
-
-
-
-
13,153
Securities losses (gains), net
1
-
-
(8)
1
Death benefit related to BOLI
-
-
-
-
(430)
MSR (gains) losses
(623)
152
152
428
389
Acquisition related costs, net of gains on branch sales
-
526
349
2,296
11,508
Adjusted net income before taxes
38,125
38,516
34,565
41,986
37,689
Taxes on adjusted net income
9,649
9,832
8,604
11,208
9,326
Adjusted net income (non-GAAP)
$
28,476
$
28,684
$
25,961
$
30,778
$
28,363
Basic earnings per share (GAAP)
$
0.57
$
0.55
$
0.49
$
0.55
$
0.19
Diluted earnings per share (GAAP)
0.56
0.54
0.48
0.54
0.18
Adjusted basic earnings per share (non-GAAP)
0.57
0.56
0.49
0.59
0.54
Adjusted diluted earnings per share (non-GAAP)
0.55
0.55
0.49
0.58
0.53
Total average assets
6,786,945
6,852,937
6,859,164
6,960,177
6,999,253
Return on average assets (GAAP)
1.69
%
1.65
%
1.51
%
1.64
%
0.56
%
Adjusted return on average assets (non-GAAP)
1.66
%
1.68
%
1.53
%
1.75
%
1.61
%
Quarters Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Net Interest Margin
Interest income (GAAP)
$
102,091
$
101,189
$
98,346
$
102,303
$
104,075
Taxable-equivalent adjustment:
Loans
13
14
13
9
10
Securities
287
301
307
324
328
Interest income (TE)
102,391
101,504
98,666
102,636
104,413
Interest expense (GAAP)
18,042
17,860
17,202
19,252
21,300
Net interest income (TE)
$
84,349
$
83,644
$
81,464
$
83,384
$
83,113
Net interest income (GAAP)
$
84,049
$
83,329
$
81,144
$
83,051
$
82,775
Average interest earning assets
$
6,352,216
$
6,420,660
$
6,422,348
$
6,504,791
$
6,528,829
Net interest margin (GAAP)
5.25
%
5.21
%
5.12
%
5.07
%
5.03
%
Net interest margin (TE)
5.27
%
5.23
%
5.14
%
5.09
%
5.05
%
13
GAAP
Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Efficiency Ratio (GAAP)
Noninterest expense
$
51,622
$
51,252
$
50,210
$
52,935
$
63,163
Less amortization of core deposit intangibles
1,149
1,167
1,176
1,235
1,251
Less other real estate expense, net
(30)
52
(186)
81
128
Less acquisition related costs, net of gains on branch sales
N/A
N/A
N/A
N/A
N/A
Noninterest expense less adjustments
$
50,503
$
50,033
$
49,220
$
51,619
$
61,784
Net interest income
$
84,049
$
83,329
$
81,144
$
83,051
$
82,775
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
84,049
83,329
81,144
83,051
82,775
Noninterest income
13,070
13,261
12,630
12,154
13,109
Less death benefit related to BOLI
-
-
-
-
430
Less securities (losses) gains
(1)
-
-
8
(1)
Less MSRs mark to market gains (losses)
623
(152)
(152)
(428)
(389)
Taxable-equivalent adjustment:
Change in cash surrender value of BOLI
N/A
N/A
N/A
N/A
N/A
Noninterest income including adjustments
12,448
13,413
12,782
12,574
13,069
Net interest income including adjustments plus noninterest income including adjustments
$
96,497
$
96,742
$
93,926
$
95,625
$
95,844
Efficiency ratio (GAAP)
52.34
%
51.72
%
52.40
%
53.98
%
64.46
%
N/A - Not applicable.
Non-GAAP
Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Adjusted Efficiency Ratio (non-GAAP)
Noninterest expense
$
51,622
$
51,252
$
50,210
$
52,935
$
63,163
Less amortization of core deposit intangibles
1,149
1,167
1,176
1,235
1,251
Less other real estate expense, net
(30)
52
(186)
81
128
Less acquisition related costs, net of gains on branch sales
-
526
349
2,296
11,508
Noninterest expense less adjustments
$
50,503
$
49,507
$
48,871
$
49,323
$
50,276
Net interest income
$
84,049
$
83,329
$
81,144
$
83,051
$
82,775
Taxable-equivalent adjustment:
Loans
13
14
13
9
10
Securities
287
301
307
324
328
Net interest income including adjustments
84,349
83,644
81,464
83,384
83,113
Noninterest income
13,070
13,261
12,630
12,154
13,109
Less death benefit related to BOLI
-
-
-
-
430
Less securities (losses) gains
(1)
-
-
8
(1)
Less MSRs mark to market gains (losses)
623
(152)
(152)
(428)
(389)
Taxable-equivalent adjustment:
Change in cash surrender value of BOLI
212
390
288
222
312
Noninterest income including adjustments
12,660
13,803
13,070
12,796
13,381
Net interest income including adjustments plus noninterest income including adjustments
$
97,009
$
97,447
$
94,534
$
96,180
$
96,494
Adjusted efficiency ratio (non-GAAP)
52.06
%
50.80
%
51.70
%
51.28
%
52.10
%
14
Quarters Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Adjusted Return on Average Tangible Common Equity Ratio
Net income (GAAP)
$
28,940
$
28,179
$
25,585
$
28,787
$
9,871
Income before income taxes (GAAP)
$
38,747
$
37,838
$
34,064
$
39,270
$
13,068
Pre-tax income adjustments:
Provision for credit losses - Day Two
-
-
-
-
13,153
Securities losses (gains), net
1
-
-
(8)
1
MSR (gains) losses
(623)
152
152
428
389
Acquisition related costs, net of gains on branch sales
-
526
349
2,296
11,508
Death benefit realized on BOLI
-
-
-
-
(430)
Amortization of core deposit intangibles
1,149
1,167
1,176
1,235
1,251
Adjusted net income, excluding intangibles amortization, before taxes
39,274
39,683
35,741
43,221
38,940
Taxes on adjusted net income
9,940
10,130
8,896
11,538
9,632
Adjusted net income (non-GAAP)
$
29,334
$
29,553
$
26,845
$
31,683
$
29,308
Total Average Common Equity
$
899,529
$
899,117
$
907,987
$
883,986
$
849,998
Less average goodwill and intangible assets
149,954
151,112
152,269
154,416
153,412
Average tangible common equity (non-GAAP)
$
749,575
$
748,005
$
755,718
$
729,570
$
696,586
Total Common Equity
$
878,552
$
902,811
$
893,297
$
896,768
$
866,685
Less goodwill and intangible assets
149,396
150,545
151,712
152,888
155,189
Tangible common equity
$
729,156
$
752,266
$
741,585
$
743,880
$
711,496
Total Assets
$
6,778,591
$
6,870,305
$
6,849,221
$
6,902,675
$
6,991,754
Less goodwill and intangible assets
149,396
150,545
151,712
152,888
155,189
Tangible assets
$
6,629,195
$
6,719,760
$
6,697,509
$
6,749,787
$
6,836,565
Return on average common equity (GAAP)
12.76
%
12.57
%
11.43
%
12.92
%
4.61
%
Return on average tangible common equity (non-GAAP)
15.77
%
15.58
%
14.20
%
16.15
%
6.16
%
Adjusted return on average tangible common equity (non-GAAP)
15.53
%
15.85
%
14.41
%
17.23
%
16.69
%
Tangible common equity to tangible assets
11.00
%
11.19
%
11.07
%
11.02
%
10.41
%
15
EX-99.2
EX-99.2
Filename: osbc-ex99d2.htm · Sequence: 3
1
Loan Portfolio Disclosures
AS OF SEPTEMBER 30, 2026
Exhibit 99.2
2
Portfolio Segment Outstanding Classified Allowance
Commercial (incl. Leases) $1,422 $15 1.05%
Commercial Real Estate Investor $1,132 $13 1.64%
Commercial Real Estate Owner Occ. $684 $27 0.40%
Construction $154 $13 0.73%
Residential Real Estate $313 $3 0.81%
Multifamily $370 $1 0.41%
HELOC $246 $2 1.37%
Powersport $689 - 2.70%
Other (less than $100 million) $228 - 2.01%
Total $5,238 $74 1.23%
Construction
3%
Commercial RE
Investor
22%
Commercial RE
Owner Occ.
13%
Commercial
(inc. Leases)
27%
Multifamily
7%
Residential
Real Estate
6%
HELOC
5%
Other (less than
$100 million)
4%
Powersport
13%
Loan Portfolio Composition (in millions)
Q3 2026 Loan Portfolio Disclosures
Total Loans and Allowance for Credit Losses Trend (in millions)
$3,940 $3,999 $5,265 $5,252 $5,185 $5,246 $5,238
$42 $43
$75 $72 $72 $70
$64
$-
$10
$20
$30
$40
$50
$60
$70
$80
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 9/30/2026
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
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 6/30/26 9/30/26
Office CRE Healthcare Other Criticized Loans/ Total Loans
Q3 2026 Loan Portfolio Disclosures
$4,988
$632 $622
$1,498
$6,416
$1,427
$234 $2,088
$1,363
$858 $819 $1,279
$-
$2,000
$4,000
$6,000
$8,000
$10,000
6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26
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 $39 - -
Multifamily $36 - -
Retail CRE $26 - -
Healthcare $24 - -
Office CRE $17 - -
Hotel CRE $15 - -
Administration C&I $15 - -
Construction C&I $15 - -
Other (under $10 million) $26 $7 -
Total Purchased $213 $7 -
Manufacturing
C&I
Multifamily 18%
17%
Retail CRE
12%
Healthcare
11%
Office CRE
8% Other
34%
$543 $463 $362 $285 $213
14.2%
11.1%
8.9%
4.5% 4.1%
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 9/30/2026
Outstanding % of Total Commitments
Q3 2026 Loan Portfolio Disclosures
5
Property Type Outstanding LTV Classified Allowance
Retail $341 54% $2 1.01%
Industrial $243 49% - 1.06%
Office $152 68% - 2.22%
Senior Living $109 58% - 1.11%
Parking Garage $76 49% - 0.85%
Hotel $67 61% - 1.52%
Other (under $50 million) $144 68% $11 4.51%
Total $1,132 57% $13 1.64%
Commercial Real Estate Investor Portfolio Composition (in millions)
Retail
30%
Office
13%
Industrial
21%
Parking Garage
7%
Hotel
6%
Senior Living
10%
Other (under
$50 million)
13%
Illinois
55%
Wisconsin
6%
Texas
7%
North Carolina
4%
Georgia
3%
Tennessee
3%
Oklahoma
3% Other (under
$30 million)
19%
State Outstanding LTV Classified
Illinois $622 60% $11
Texas $82 55% -
Wisconsin $66 61% -
North Carolina $49 49% -
Oklahoma $34 61% -
Georgia $32 57% -
Tennessee $31 51% $2
Other (under $30 million) $216 49% -
Total $1,132 57% $13
Q3 2026 Loan Portfolio Disclosures
6
Location Outstanding LTV Classified Allowance
Illinois $124 70% - 2.49%
Chicago $22 74% - 2.42%
Suburban $102 69% - 2.40%
Oklahoma $15 64% - 0.84%
Colorado $6 51% - 0.84%
Oregon $4 73% - 0.84%
Georgia $2 59% - 0.84%
Wisconsin $1 63% - 0.84%
Total $152 68% - 2.22%
Office Commercial Real Estate Investor Portfolio Composition (in millions)
Illinois - Chicago
14%
Illinois - Suburban
67%
Oklahoma
10%
Other (less than
$5 million)
5%
Colorado
4%
Office Commercial Real Estate Investor Risk Profile (in millions)
Q3 2026 Loan Portfolio Disclosures
$36
$66
$18
$32
$-
$20
$40
$60
$80
< 1 year 1-3 years 3-5 years > 5 years
Maturity Outstanding LTV DSCR
< 1 year $32 81% 1.33x
1-3 years $58 80% 1.41x
3-5 years $14 57% 1.56x
> 5 years $30 54% 1.54x
Total $134 71% 1.44x
Office Commercial Real Estate by Loan Maturity Office Commercial Real Estate > $1 million
7
Industry Outstanding Classified Allowance
Health Care, Social Services $275 $2 0.22%
Other Services $75 $4 0.44%
Retail Trade $62 - 0.34%
Manufacturing $57 - 0.30%
Real Estate, Leasing $33 - 0.23%
Wholesale Trade $34 - 0.13%
Accommodation, Food Service $31 $7 1.64%
Arts, Entertainment $26 $2 0.37%
Other (under $20 million) $91 $12 0.76%
Total $684 $27 0.40%
Manufacturing
8%
Accommodation,
Food Service
5%
Retail Trade
9%
Real Estate,
Leasing
5%
Healthcare
40%
Other Services
11%
Wholesale Trade
5%
Other (under $30
million)
17%
Commercial Real Estate Owner-Occupied Portfolio Composition (in millions)
Health Care, Social Outstanding Classified Allowance
Assisted Living $137 $2 0.22%
Memory Care $62 - 0.26%
Skilled Nursing $53 - 0.16%
Child Care $6 - 0.31%
Other (under $5 million) $17 - 0.19%
Total $275 $2 0.22%
Skilled
Nursing
19%
Assisted
Living
50%
Memory Care
23%
Child Care
2%
Other (under $5 million)
6%
Q3 2026 Loan Portfolio Disclosures
8
Commercial & Industrial Outstanding Classified
Manufacturing $411 -
Construction $229 $5
Administrative, Waste Service $180 -
Professional $126 -
Finance, Insurance $102 -
Transportation, Warehousing $93 -
Real Estate, Leasing $76 -
Health Care, Social Services $56 $1
Wholesale Trade $44 $3
Other (under $20 million) $105 $6
Total $1,422 $15
Commercial (including Leases) Portfolio Composition (in millions)
Construction
16%
Manufacturing
29%
Transportation,
Warehousing
7%
Finance, Insurance
7%
Professional
9%
Administration,
Waste Service
13%
Real Estate,
Leasing
5% Other (under
$60 million)
14%
Commercial Revolving Line Utilization (outstanding in millions)
$653 $587 $574 $658 $717 $718 $756 $737
55%
52% 53%
55% 57% 57%
60% 58%
30%
35%
40%
45%
50%
55%
60%
65%
70%
$400
$450
$500
$550
$600
$650
$700
$750
$800
12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26
Q3 2026 Loan Portfolio Disclosures
9
Origination Tier Outstanding Weighted FICO Portfolio APR %
Tier 1 $366 777 7.99%
Tier 2 $130 711 10.24%
Tier 3 $80 684 12.77%
Tier 4 $39 660 14.73%
Tier 5 $74 606 17.01%
Total $689 730 10.24%
Powersport Portfolio Composition (in millions)
Tier 1
53%
Tier 2
19%
Tier 3
11%
Tier 4
6%
Tier 5
11%
Historical Contribution Margin
Q3 2026 Loan Portfolio Disclosures
Contribution Margin (1) 2023 (EBG) 2024 (EBG) 12/31/2025 3/31/2026 6/30/2026 9/30/2026
Portfolio APR 8.13% 9.02% 9.82% 10.14% 10.20% 10.24%
Net Promo Accretion 0.41% 0.74% 1.03% 1.30% 1.33% 1.17%
Participation -0.87% -0.87% -0.91% -1.08% -1.12% -1.00%
Net Loss -1.11% -1.39% -1.76% -2.06% -1.80% -1.80%
Net Contribution Margin 6.56% 7.52% 8.19% 8.30% 8.62% 8.60%
(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 $521 76% 9.57%
Used $168 24% 12.46%
Total $689 10.24%
10
Net Charge-offs (Recoveries) (in thousands)
Portfolio 12/31/2025 (Q) 3/31/2026 (Q) 6/30/2026 (Q) 9/30/2026 (Q) 9/30/2026 (TTM) NCO(R) %
Commercial (incl. Leases) ($29) $1,495 $3,327 $9,343 $14,136 0.99%
Commercial Real Estate Investor ($14) $3,919 $2,804 ($14) $6,695 0.59%
Commercial Real Estate Owner Occupied $1,125 ($5) ($1) ($1) $1,118 0.16%
Construction - - - - - 0.00%
Residential Real Estate ($12) ($9) ($22) ($13) ($56) (0.02%)
Multifamily - - - - - 0.00%
HELOC ($49) ($6) ($14) ($10) ($79) (0.03%)
Powersport $4,466 $3,894 $2,826 $3,133 $14,319 2.08%
Other $494 $488 $328 $288 $1,598 0.70%
Total $5,981 $9,776 $9,248 $12,726 $37,731 0.72%
9/30/2025 12/31/2025 3/31/2026 6/30/2026 9/30/2026
Beginning ACL Balance $42,990 $75,037 $72,301 $72,126 $70,380
Day 1 Credit Mark (PCD) $17,540 - - - -
Day 2 Credit Mark (Non-PCD) $13,153 - - - -
Plus: Provision $6,462 $3,245 $9,602 $7,502 $6,535
Less: Net Charge-off (Recovery) $5,108 $5,981 $9,776 $9,248 $12,726
Ending ACL Balance $75,037 $72,301 $72,126 $70,380 $64,189
Allowance for Credit Losses Quarterly Rollforward(2) (in thousands)
Q3 2026 Loan Portfolio Disclosures
(2) The Allowance for Credit Losses presented excludes the Allowance for Unfunded Commitments, which totaled $2.2 million as of September 30, 2026 and is reported within
other liabilities on the Statements of Condition.
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v3.26.3
Document and Entity Information
Oct. 21, 2026
Document and Entity Information [Abstract]
Document Type
8-K
Document Period End Date
Oct. 21, 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
Entity Address, City or Town
Aurora
Entity Address, State or Province
IL
Entity Address, Postal Zip Code
60507
City Area Code
630
Local Phone Number
892-0202
Written Communications
false
Soliciting Material
false
Pre-commencement Tender Offer
false
Pre-commencement Issuer Tender Offer
false
Title of 12(b) Security
Common Stock
Trading Symbol
OSBC
Security Exchange Name
NASDAQ
Entity Emerging Growth Company
false
Entity Central Index Key
0000357173
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Address Line 1 such as Attn, Building Name, Street Name
+ References
No definition available.
+ Details
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dei_EntityAddressAddressLine1
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X
- Definition
Name of the City or Town
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No definition available.
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dei_EntityAddressCityOrTown
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xbrli:normalizedStringItemType
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X
- Definition
Code for the postal or zip code
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No definition available.
+ Details
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xbrli:normalizedStringItemType
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X
- Definition
Name of the state or province.
+ References
No definition available.
+ Details
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dei_EntityAddressStateOrProvince
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X
- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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X
- Definition
Indicate if registrant meets the emerging growth company criteria.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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Name:
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X
- Definition
Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
No definition available.
+ Details
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dei_EntityFileNumber
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Balance Type:
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Period Type:
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X
- Definition
Two-character EDGAR code representing the state or country of incorporation.
+ References
No definition available.
+ Details
Name:
dei_EntityIncorporationStateCountryCode
Namespace Prefix:
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Data Type:
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X
- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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- Definition
The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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X
- Definition
Local phone number for entity.
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No definition available.
+ Details
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X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
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- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
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X
- Definition
Title of a 12(b) registered security.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
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Period Type:
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X
- Definition
Name of the Exchange on which a security is registered.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
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dei_SecurityExchangeName
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Data Type:
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X
- Definition
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.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
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Balance Type:
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X
- Definition
Trading symbol of an instrument as listed on an exchange.
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No definition available.
+ Details
Name:
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Namespace Prefix:
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Data Type:
dei:tradingSymbolItemType
Balance Type:
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Period Type:
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X
- Definition
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.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
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- References
No definition available.
+ Details
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