Form 8-K

8-K — OLD SECOND BANCORP INC

Accession: 0000357173-26-000020

Filed: 2026-04-22

Period: 2026-04-22

CIK: 0000357173

SIC: 6022 (STATE COMMERCIAL BANKS)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — osbc-20260422x8k.htm (Primary)

EX-99.1 (osbc-20260422xex99d1.htm)

EX-99.2 (osbc-20260422xex99d2.htm)

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8-K

8-K (Primary)

Filename: osbc-20260422x8k.htm · Sequence: 1

OLD SECOND BANCORP INC_April 22, 2026

OLD SECOND BANCORP INC0000357173false00003571732026-04-222026-04-22

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): April 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 April 22, 2026, Old Second Bancorp, Inc. (the “Company’s”) issued a press release announcing its financial results for the first quarter ended March 31, 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 April 22, 2026

99.2

Loan Portfolio Disclosures for Old Second Bancorp, Inc. dated March 31, 2026

104

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

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: April 22, 2026

By:

/s/ Bradley S. Adams

Bradley S. Adams

Executive Vice President,

Chief Operating Officer and

Chief Financial Officer

EX-99.1

Filename: osbc-20260422xex99d1.htm · Sequence: 2

Old Second Bancorp, Inc

(NASDAQ:OSBC)

Exhibit 99.1

Contact:

Bradley S. Adams

For Immediate Release

Chief Financial Officer

April 22, 2026

(630) 906-5484

Old Second Bancorp, Inc. Reports First Quarter 2026 Net Income of $25.6 Million,

or $0.48 per Diluted Share

AURORA, IL, April 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 first quarter of 2026. Our net income was $25.6 million, or $0.48 per diluted share, for the first quarter of 2026, compared to net income of $28.8 million, or $0.54 per diluted share, for the fourth quarter of 2025. Adjusted net income1 was $26.0 million, or adjusted diluted earnings per share1 of $0.49, for the first quarter of 2026, compared to adjusted net income1 of $30.8 million, or adjusted diluted earnings per share1 of $0.58, for the fourth quarter of 2025.

Notable Items2

● Net interest and dividend income was $81.1 million, reflecting a decrease of $1.9 million, or 2.30%.

● Net interest margin (NIM) on a fully tax-equivalent basis1 was 5.14%, an increase of 5 basis points.

● Provision for credit losses of $9.5 million compared to $3.0 million.

● Noninterest income was $12.6 million, an increase of $476,000, or 3.92%, compared to $12.2 million.

● Noninterest expense was $50.2 million, a decrease of $2.7 million, or 5.15%, compared to $52.9 million.

● Efficiency ratio improved 158 basis points to 52.40%; adjusted efficiency ratio was 51.70%1.

● Provision for income tax of $8.5 million, compared to $10.5 million with an effective tax rate of 24.89% and 26.69%, respectively.

● Return on average assets of 1.51%, compared to 1.64%.

● Return on tangible common equity (ROATCE)1 of 14.20%; adjusted ROATCE1 of 14.41%.

● On April 15, 2026, we paid down $30 million of the total $60 million subordinated debt outstanding and due in 2031.

● On April 21, 2026, our Board of Directors declared a cash dividend of $0.07 per share of common stock, payable on May 11, 2026, to stockholders of record as of May 1, 2026.

Chairman, President and Chief Executive Officer Jim Eccher said “Old Second reported strong results in the first quarter of 2026 led by exceptional margin performance and disciplined operating efficiency. Tangible book value per share increased by 1.63% on a linked quarter basis despite the reduction to equity from our stock repurchases of $23.1 million, or 1.2 million shares, during the quarter. Nonperforming assets increased due to a few larger relationships, but we believe we are adequately reserved for any future losses with an Allowance for Credit Losses on loans (“ACL”) to total loans of 1.39% and ACL to nonperforming loans of 95.53%. Credit deterioration in the first quarter largely resulted from one downtown Chicago office credit and one cash-flow-dependent commercial relationship. Otherwise results remain solid with first quarter return on average assets and return on average common equity of 1.51% and 11.43%, respectively. The tax equivalent net interest margin expanded to 5.14% and the efficiency ratio was a very healthy 52.40%. This strong bottom-line performance and a well-positioned balance sheet drove an increase in the tangible common equity capital ratio to 11.07% from 11.02% for the prior linked period. We are proud of our performance from both a bottom-line perspective and in positioning ourselves to deliver better results to our stockholders over 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 $25.6 million, or $0.48 per diluted share, for the first quarter of 2026, compared to net income of $28.8 million, or $0.54 per diluted share.

Loans declined $66.9 million driven by decreases in commercial real estate, construction, and powersport.

● Total loans were $5.19 billion.

● Average loans (including loans held-for-sale) for the first quarter of 2026 totaled $5.21 billion, reflecting a decrease of $70.9 million.

● Yield on loans, including loans held for sale, declined 5 basis points.

Credit Quality key performance metrics were impacted by a few larger credits.

● Nonperforming loans totaled $75.5 million compared to $52.8 million. The increase of $22.7 million was partially driven by $9.8 million of loans past due greater than 90 days, still accruing, which are in the process of renewal.

● Nonperforming loans to total loans was 1.46% compared to 1.01%.

● Classified loans totaled $148.6 million compared to $150.1 million.

● Criticized loans (special mention, substandard and doubtful) to total loans was 3.64% compared to 3.12%. The quarter-over-quarter increase is driven by an increase of $26.4 million in special mention loans, an increase of $14.7 million of nonaccrual loans driven by one large commercial relationship, partially offset by a decrease of $16.2 million in substandard accruing.

● Provision for credit losses of $9.5 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 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 $5.56 billion, a decrease of $31.1 million, or 0.56%.

● Cost of deposits decreased 10 basis points to 1.05%.

● Average interest-bearing deposits and non-interest bearing deposits decreased $119.2 million and $42.9 million, respectively.

Net Interest Margin continued to be strong, and declines in the cost of funds outweighed softer yields during the quarter.

● Net interest margin on a fully tax-equivalent basis improved 5 basis points.

● Loan yields declined 5 basis points on lower average balances while investment yields increased 4 basis points driven on higher yield outpacing the decline in balance.

● Cost of funds declined 8 basis points driven by lower cost of deposits, specifically a 10-basis point decline on the cost of savings accounts, an 11-basis point decline in the cost of money markets, and a 16-basis point decline in the cost of time deposits.

Noninterest Income increased $476,000, or 3.92%, in the first quarter of 2026, excluding mark to market losses on MSR and changes in BOLI cash surrender values, the change was nominal.

● Card related income declined in the period due to a reduction in debit card related fees based on seasonally lower transaction volume.

● Other income growth in the period was driven by an increase in powersport related loan servicing fees and dealer charge-back income.

Noninterest Expense decreased $2.7 million or 5.15%.

● $1.3 million decrease in salaries and employee benefits, driven by declines to salaries, officer incentive accruals, and insurance premiums, partially offset by increases in payroll taxes and 401K company match on 2025 incentive payments paid in 2026.

● $1.4 million decrease in computer and data processing due to prior quarter acquisition-related core conversion expenses.

● Efficiency ratio for the quarter was 52.40% compared to 53.98% and the adjusted efficiency ratio1 was 51.70% compared to 51.28%.

Capital continued to grow due to strong net income.

● Stockholders’ equity decreased $3.5 million partially comprised of $3.7 million of dividends declared, a $20.0 million increase in treasury stock from share repurchases, and an increase of $2.4 million in AOCI unrealized losses on securities, partially offset by net income of $25.6 million.

● Share repurchases of 1,175,859 shares at an average price paid per share of $19.63, for a total reduction to capital of $23.1 million.

● ROATCE1 was 14.20% compared to 16.15%.

● Tangible common equity to tangible assets1 was 11.07% compared to 11.02%.

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;

● 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 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 disruption 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, April 23, 2026, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss our first 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/2239/53807

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.

Non-GAAP Presentations

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.

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.

Financial Highlights

Quarters Ended

(Dollars in thousands - unaudited)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Balance sheet summary

Total assets

6,849,221

6,902,675

6,991,754

5,701,294

5,727,686

Total securities available-for-sale

1,115,443

1,090,523

1,157,480

1,177,688

1,146,721

Total loans

5,185,237

5,252,131

5,264,505

3,998,667

3,940,232

Total deposits

5,564,999

5,596,069

5,760,250

4,798,439

4,852,791

Total liabilities

5,955,924

6,005,907

6,125,069

4,982,645

5,033,195

Total equity

893,297

896,768

866,685

718,649

694,491

Total tangible assets

6,697,509

6,749,787

6,836,565

5,588,090

5,613,460

Total tangible equity

741,585

743,880

711,496

605,445

580,265

Income statement summary

Net interest income

81,144

83,051

82,775

64,234

62,904

Provision for credit losses

9,500

3,000

19,653

2,500

2,400

Noninterest income

12,630

12,154

13,109

10,898

10,201

Noninterest expense

50,210

52,935

63,163

43,419

44,505

Net income

25,585

28,787

9,871

21,822

19,830

Effective tax rate

24.89

26.69

24.46

25.30

24.31

Profitability ratios

Return on average assets (ROAA)

1.51

1.64

0.56

1.53

1.42

Return on average equity (ROAE)

11.43

12.92

4.61

12.39

11.76

Net interest margin (tax-equivalent) 1

5.14

5.09

5.05

4.85

4.88

Efficiency ratio

52.40

53.98

64.46

55.99

56.46

Return on average tangible common equity (ROATCE) 1

14.20

16.15

6.16

15.29

14.70

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

11.07

11.02

10.41

10.83

10.34

Per share data

Diluted earnings per share

0.48

0.54

0.18

0.48

0.43

Tangible book value per share

14.35

14.12

13.51

13.44

12.88

Company capital ratios 2

Common equity tier 1 capital ratio

13.13

12.99

12.44

13.77

13.47

Tier 1 risk-based capital ratio

13.55

13.41

12.85

14.31

14.01

Total risk-based capital ratio

15.64

15.46

15.10

16.55

16.24

Tier 1 leverage ratio

11.88

11.70

11.21

11.83

11.58

Bank capital ratios 2, 3

Common equity tier 1 capital ratio

13.80

13.17

13.14

14.02

13.64

Tier 1 risk-based capital ratio

13.80

13.17

13.14

14.02

13.64

Total risk-based capital ratio

14.88

14.22

14.39

14.99

14.58

Tier 1 leverage ratio

12.09

11.49

11.45

11.59

11.27

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.

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands - unaudited)

Quarters Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Assets

Cash and due from banks

48,100

51,665

53,099

63,484

52,703

Interest earning deposits with financial institutions

67,627

72,360

63,426

78,283

203,418

Cash and cash equivalents

115,727

124,025

116,525

141,767

256,121

Securities available-for-sale, at fair value

1,115,443

1,090,523

1,157,480

1,177,688

1,146,721

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

31,350

32,025

28,282

19,087

19,441

Loans held-for-sale

4,344

3,645

1,463

3,235

4,202

Loans

5,185,237

5,252,131

5,264,505

3,998,667

3,940,232

Less: allowance for credit losses on loans

72,126

72,301

75,037

42,990

41,551

Net loans

5,113,111

5,179,830

5,189,468

3,955,677

3,898,681

Premises and equipment, net

85,634

86,645

87,714

85,702

87,466

Other real estate owned, net

632

1,427

6,416

6,486

2,878

Mortgage servicing rights, at fair value

9,579

9,459

9,549

9,680

9,938

Goodwill

129,196

130,262

93,232

Core deposit intangible ("CDI")

22,516

23,692

24,927

19,972

20,994

Bank-owned life insurance (“BOLI”)

131,563

130,481

129,057

114,399

113,249

Deferred tax assets, net

31,321

31,276

33,374

20,395

23,684

Other assets

58,805

60,451

77,237

53,974

51,079

Total assets

6,849,221

6,902,675

6,991,754

5,701,294

5,727,686

Liabilities

Deposits:

Noninterest bearing demand

1,755,548

1,739,117

1,738,028

1,704,083

1,713,711

Interest bearing:

Savings, NOW, and money market

2,795,038

2,745,540

2,763,990

2,400,235

2,434,579

Time

1,014,413

1,111,412

1,258,232

694,121

704,501

Total deposits

5,564,999

5,596,069

5,760,250

4,798,439

4,852,791

Securities sold under repurchase agreements

23,130

23,769

24,290

47,252

38,664

Other short-term borrowings

200,000

215,000

165,000

Junior subordinated debentures

25,774

25,773

Subordinated debentures

59,574

59,552

59,531

59,510

59,489

Notes payable and other borrowings

14,837

14,825

14,812

Other liabilities

67,610

70,918

75,412

51,670

56,478

Total liabilities

5,955,924

6,005,907

6,125,069

4,982,645

5,033,195

Stockholders’ Equity

Common stock

53,015

45,094

Additional paid-in capital

338,418

341,451

340,108

206,207

205,282

Retained earnings

559,129

537,231

512,131

505,419

486,300

Accumulated other comprehensive loss, net

(31,095)

(28,738)

(32,294)

(37,426)

(41,379)

Treasury stock

(26,170)

(6,191)

(6,275)

(645)

(806)

Total stockholders’ equity

893,297

896,768

866,685

718,649

694,491

Total liabilities and stockholders’ equity

6,849,221

6,902,675

6,991,754

5,701,294

5,727,686

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(In thousands, except share data - unaudited)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Interest and dividend income

Loans, including fees

87,138

90,925

91,301

61,954

61,595

Loans held-for-sale

Securities:

Taxable

8,949

9,136

9,872

9,959

9,227

Tax exempt

1,155

1,219

1,235

1,229

1,260

Dividends from FHLBC and FRBC stock

512

390

381

273

473

Interest bearing deposits with financial institutions

549

598

1,255

1,784

988

Total interest and dividend income

98,346

102,303

104,075

75,238

73,565

Interest expense

Savings, NOW, and money market deposits

7,147

7,906

9,043

5,606

4,913

Time deposits

7,217

8,665

10,896

4,508

4,829

Securities sold under repurchase agreements

Other short-term borrowings

1,791

1,644

308

Junior subordinated debentures

296

288

Subordinated debentures

546

547

546

Notes payable and other borrowings

155

158

Total interest expense

17,202

19,252

21,300

11,004

10,661

Net interest and dividend income

81,144

83,051

82,775

64,234

62,904

Provision for credit losses

9,500

3,000

19,653

2,500

2,400

Net interest and dividend income after provision for credit losses

71,644

80,051

63,122

61,734

60,504

Noninterest income 1

Wealth management

3,383

3,537

3,515

3,103

3,089

Service charges on deposits

3,126

3,125

3,202

3,060

2,976

Secondary mortgage fees

121

123

Mortgage servicing rights mark to market loss

(152)

(428)

(389)

(531)

(570)

Mortgage servicing income

497

444

469

472

480

Net gain on sales of mortgage loans

555

657

620

550

464

Securities gains (losses), net

(1)

Change in cash surrender value of BOLI

1,082

834

1,175

690

498

Death benefit realized on BOLI

430

Card related income

2,354

2,548

2,581

2,533

2,241

Other income

1,664

1,306

1,415

937

950

Total noninterest income

12,630

12,154

13,109

10,898

10,201

Noninterest expense 1

Salaries and employee benefits

29,673

30,996

39,723

26,950

26,993

Occupancy, furniture and equipment

5,371

5,092

4,937

4,477

4,548

Computer and data processing

3,375

4,798

4,002

2,692

2,348

FDIC insurance

759

720

854

642

628

Net teller & bill paying

716

701

691

670

658

General bank insurance

353

354

437

328

330

Amortization of core deposit intangible

1,176

1,235

1,251

1,022

1,037

Advertising and marketing expense

551

437

650

454

229

Card related expense

1,519

1,652

1,708

1,489

1,380

Professional fees

1,299

1,265

3,145

1,158

1,095

Consumer credit expense

1,522

1,451

1,368

Other real estate expense, net

(186)

128

1,873

Other expense

4,082

4,153

4,269

3,487

3,361

Total noninterest expense

50,210

52,935

63,163

43,419

44,505

Income before income taxes

34,064

39,270

13,068

29,213

26,200

Provision for income taxes

8,479

10,483

3,197

7,391

6,370

Net income

25,585

28,787

9,871

21,822

19,830

Basic earnings per share

0.49

0.55

0.19

0.49

0.44

Diluted earnings per share

0.48

0.54

0.18

0.48

0.43

Dividends declared per share

0.07

0.06

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

Analysis of Average Balances,

Tax Equivalent Income / Expense and Rates

(Dollars in thousands - unaudited)

Quarters Ended

March 31, 2026

December 31, 2025

March 31, 2025

Average

Income /

Rate

Average

Income /

Rate

Average

Income /

Rate

Balance

Expense

Balance

Expense

Balance

Expense

Assets

Interest earning deposits with financial institutions

67,571

549

3.30

66,430

598

3.57

97,645

988

4.10

Securities:

Taxable

969,194

8,949

3.74

979,060

9,136

3.70

1,026,233

9,227

3.65

Non-taxable (TE)1

146,299

1,462

4.05

150,573

1,543

4.07

155,024

1,595

4.17

Total securities (TE)1

1,115,493

10,411

3.79

1,129,633

10,679

3.75

1,181,257

10,822

3.72

FHLBC and FRBC Stock

31,540

512

6.58

30,085

390

5.14

19,441

473

9.87

Loans and loans held-for-sale1, 2

5,207,744

87,194

6.79

5,278,643

90,969

6.84

3,959,073

61,626

6.31

Total interest earning assets

6,422,348

98,666

6.23

6,504,791

102,636

6.26

5,257,416

73,909

5.70

Cash and due from banks

48,252

52,040

52,550

Allowance for credit losses on loans

(71,869)

(73,718)

(43,543)

Other noninterest earning assets

460,433

477,064

406,669

Total assets

6,859,164

6,960,177

5,673,092

Liabilities and Stockholders' Equity

NOW accounts

697,692

823

0.48

682,729

816

0.47

628,336

629

0.41

Money market accounts

946,075

4,148

1.78

958,672

4,561

1.89

801,178

3,393

1.72

Savings accounts

1,118,979

2,176

0.79

1,123,208

2,529

0.89

940,894

891

0.38

Time deposits

1,062,623

7,217

2.75

1,179,966

8,665

2.91

725,314

4,829

2.70

Interest bearing deposits

3,825,369

14,364

1.52

3,944,575

16,571

1.67

3,095,722

9,742

1.28

Securities sold under repurchase agreements

24,795

0.82

23,464

0.76

34,529

0.80

Other short-term borrowings

189,056

1,791

3.84

159,565

1,644

4.09

1,444

4.77

Junior subordinated debentures

25,774

296

4.66

25,774

288

4.43

25,773

288

4.53

Subordinated debentures

59,564

546

3.72

59,542

546

3.64

59,478

546

3.72

Notes payable and other borrowings

14,831

155

4.24

14,819

158

4.23

Total interest bearing liabilities

4,139,389

17,202

1.69

4,227,739

19,252

1.81

3,216,946

10,661

1.34

Noninterest bearing deposits

1,738,504

1,781,374

1,703,382

Other liabilities

73,284

67,078

69,186

Stockholders' equity

907,987

883,986

683,578

Total liabilities and stockholders' equity

6,859,164

6,960,177

5,673,092

Net interest income (GAAP)

81,144

83,051

62,904

Net interest margin (GAAP)

5.12

5.07

4.85

Net interest income (TE)1

81,464

83,384

63,248

Net interest margin (TE)1

5.14

5.09

4.88

Interest bearing liabilities to earning assets

64.45

64.99

61.19

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 $1.9 million for the first quarter of 2026, loan fee income of $1.9 million for the fourth quarter of 2025, and loan fee income of $545,000 for the first quarter of 2025. Nonaccrual loans are included in the above stated average balances.

Loans and Credit Quality

Loans

Quarters Ended

(Dollars in thousands)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Commercial

845,278

842,130

786,095

718,927

732,874

Leases

539,116

548,256

550,201

524,513

505,455

Commercial real estate – investor

1,169,318

1,212,384

1,257,328

1,118,782

1,105,440

Commercial real estate – owner occupied

702,986

706,567

680,412

652,449

669,964

Construction

143,563

173,630

176,387

251,692

205,839

Residential real estate – investor

69,763

70,225

69,362

50,976

50,103

Residential real estate – owner occupied

239,711

230,432

231,547

220,672

210,239

Multifamily

357,131

339,131

378,213

333,787

341,253

HELOC

235,637

235,293

234,885

111,265

104,575

Powersport

674,116

696,959

715,498

Other1

208,618

197,124

184,577

15,604

14,490

Total loans

5,185,237

5,252,131

5,264,505

3,998,667

3,940,232

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)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Nonaccrual loans

62,636

47,952

34,126

31,902

33,394

Loans past due 90 days or more and still accruing interest

12,868

4,879

13,859

345

1,397

Total nonperforming loans

75,504

52,831

47,985

32,247

34,791

Other real estate owned

632

1,427

6,416

6,486

2,878

Repossessed assets 1

858

1,363

2,088

234

484

Total nonperforming assets

76,994

55,621

56,489

38,967

38,153

30-89 days past due loans and still accruing interest

50,036

52,169

22,415

14,652

21,951

Nonaccrual loans to total loans

1.21

0.91

0.65

0.80

0.85

Nonperforming loans to total loans

1.46

1.01

0.91

0.81

0.88

Nonperforming assets to total loans plus OREO and repossessed assets

1.48

1.06

1.07

0.97

Purchased credit-deteriorated loans to total loans

1.35

1.50

1.61

0.23

0.27

Allowance for credit losses

72,126

72,301

75,037

42,990

41,551

Allowance for credit losses to total loans

1.39

1.38

1.43

1.08

1.05

Allowance for credit losses to nonaccrual loans

115.15

150.78

219.88

134.76

124.43

1 Repossessed assets are reported in other assets.

The following table shows classified loans by segment, which include nonaccrual loans, 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)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Commercial

50,640

51,587

50,680

23,354

20,807

Leases

2,604

2,428

1,277

1,346

848

Commercial real estate – investor

14,959

14,245

2,853

14,752

14,299

Commercial real estate – owner occupied

60,594

64,081

72,020

51,335

26,818

Construction

12,983

11,421

1,612

1,624

18,201

Residential real estate – investor

1,012

1,142

1,228

1,201

1,283

Residential real estate – owner occupied

1,886

1,897

1,839

1,707

1,759

Multifamily

1,489

1,494

1,183

1,099

332

HELOC

1,832

1,466

1,538

1,180

686

Powersport

204

Other1

369

270

Total classified loans

148,572

150,099

134,260

97,620

85,043

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)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Commercial

1,298

(44)

385

1,093

3,414

Leases

197

848

(3)

Commercial real estate – Investor

3,919

(14)

(15)

(14)

Commercial real estate – Owner occupied

(5)

1,125

(2)

(1)

Construction

(46)

(337)

821

Residential real estate – Investor

(2)

(1)

(2)

Residential real estate – Owner occupied

(7)

(11)

(7)

(8)

(30)

Multifamily

181

HELOC

(6)

(49)

(19)

(10)

(12)

Powersport

3,894

4,466

2,980

Other 1

488

494

805

Net charge–offs / (recoveries)

9,776

5,981

5,108

785

4,353

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

Old Second Bancorp, Inc. and Subsidiaries

Quarterly Consolidated Average Balance

(In thousands - unaudited)

Quarters Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Assets

Cash and due from banks

48,252

52,040

51,357

47,875

52,550

Interest earning deposits with financial institutions

67,571

66,430

119,619

166,366

97,645

Cash and cash equivalents

115,823

118,470

170,976

214,241

150,195

Securities available-for-sale, at fair value

1,115,493

1,129,633

1,165,900

1,190,123

1,181,257

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

31,540

30,085

25,961

19,200

19,441

Loans held-for-sale

2,023

3,254

1,975

2,375

1,343

Loans

5,205,721

5,275,389

5,215,374

3,958,275

3,957,730

Less: allowance for credit losses on loans

71,869

73,718

72,354

41,544

43,543

Net loans

5,133,852

5,201,671

5,143,020

3,916,731

3,914,187

Premises and equipment, net

86,260

87,449

88,304

87,081

87,709

Other real estate owned, net

853

4,410

6,464

2,099

13,388

Mortgage servicing rights, at fair value

9,383

9,490

9,632

9,856

10,211

Goodwill

129,196

130,135

127,873

93,232

93,253

Core deposit intangible ("CDI")

23,073

24,281

25,539

20,462

21,490

Bank-owned life insurance (“BOLI”)

130,930

130,151

128,870

113,326

112,848

Deferred tax assets, net

30,342

32,705

30,375

23,549

25,489

Other assets

50,396

58,443

74,364

44,431

42,281

Total assets

6,859,164

6,960,177

6,999,253

5,736,706

5,673,092

Liabilities

Deposits:

Noninterest bearing demand

1,738,504

1,781,374

1,782,193

1,729,287

1,703,382

Interest bearing:

Savings, NOW, and money market

2,762,746

2,764,609

2,798,414

2,424,947

2,370,408

Time

1,062,623

1,179,966

1,347,455

695,946

725,314

Total deposits

5,563,873

5,725,949

5,928,062

4,850,180

4,799,104

Securities sold under repurchase agreements

24,795

23,464

33,382

35,419

34,529

Other short-term borrowings

189,056

159,565

25,978

1,444

Junior subordinated debentures

25,774

25,773

Subordinated debentures

59,564

59,542

59,521

59,500

59,478

Notes payable and other borrowings

14,831

14,819

14,806

Other liabilities

73,284

67,078

61,732

59,580

69,186

Total liabilities

5,951,177

6,076,191

6,149,255

5,030,452

4,989,514

Stockholders’ Equity

Common stock

53,015

45,094

45,028

Additional paid-in capital

340,459

340,870

339,612

205,706

205,433

Retained earnings

551,491

526,910

500,075

497,224

479,011

Accumulated other comprehensive loss, net

(26,361)

(30,594)

(36,823)

(41,080)

(44,853)

Treasury stock

(10,617)

(6,215)

(5,881)

(690)

(1,041)

Total stockholders’ equity

907,987

883,986

849,998

706,254

683,578

Total liabilities and stockholders’ equity

6,859,164

6,960,177

6,999,253

5,736,706

5,673,092

Total Earning Assets

6,422,348

6,504,791

6,528,829

5,336,339

5,257,416

Total Interest Bearing Liabilities

4,139,389

4,227,739

4,305,330

3,241,585

3,216,946

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

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Income before income taxes (GAAP)

34,064

39,270

13,068

29,213

26,200

Pre-tax income adjustments:

Provision for credit losses - Day Two

13,153

Securities (gains) losses, net

(8)

Death benefit related to BOLI

(430)

MSR losses

152

428

389

531

570

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

349

2,296

11,508

810

454

Adjusted net income before taxes

34,565

41,986

37,689

30,554

27,224

Taxes on adjusted net income

8,604

11,208

9,326

7,730

6,619

Adjusted net income (non-GAAP)

25,961

30,778

28,363

22,824

20,605

Basic earnings per share (GAAP)

0.49

0.55

0.19

0.49

0.44

Diluted earnings per share (GAAP)

0.48

0.54

0.18

0.48

0.43

Adjusted basic earnings per share (non-GAAP)

0.49

0.59

0.54

0.50

0.46

Adjusted diluted earnings per share (non-GAAP)

0.49

0.58

0.53

0.50

0.45

Total average assets

6,859,164

6,960,177

6,999,253

5,736,706

5,673,092

Return on average assets (GAAP)

1.51

1.64

0.56

1.53

1.42

Adjusted return on average assets (non-GAAP)

1.53

1.75

1.61

1.60

1.47

Quarters Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Net Interest Margin

Interest income (GAAP)

98,346

102,303

104,075

75,238

73,565

Taxable-equivalent adjustment:

Loans

Securities

307

324

328

327

335

Interest income (TE)

98,666

102,636

104,413

75,574

73,909

Interest expense (GAAP)

17,202

19,252

21,300

11,004

10,661

Net interest income (TE)

81,464

83,384

83,113

64,570

63,248

Net interest income (GAAP)

81,144

83,051

82,775

64,234

62,904

Average interest earning assets

6,422,348

6,504,791

6,528,829

5,336,339

5,257,416

Net interest margin (GAAP)

5.12

5.07

5.03

4.83

4.85

Net interest margin (TE)

5.14

5.09

5.05

4.85

4.88

GAAP

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Efficiency Ratio (GAAP)

Noninterest expense

50,210

52,935

63,163

43,419

44,505

Less amortization of core deposit

1,176

1,235

1,251

1,022

1,037

Less other real estate expense, net

(186)

128

1,873

Less acquisition related costs, net of losses on branch sales

N/A

Noninterest expense less adjustments

49,220

51,619

61,784

42,362

41,595

Net interest income

81,144

83,051

82,775

64,234

62,904

Taxable-equivalent adjustment:

Loans

N/A

Securities

N/A

Net interest income including adjustments

81,144

83,051

82,775

64,234

62,904

Noninterest income

12,630

12,154

13,109

10,898

10,201

Less death benefit related to BOLI

430

Less securities gains (losses)

(1)

Less MSRs mark to market (losses) gains

(152)

(428)

(389)

(531)

(570)

Taxable-equivalent adjustment:

Change in cash surrender value of BOLI

N/A

Noninterest income including adjustments

12,782

12,574

13,069

11,429

10,771

Net interest income including adjustments plus noninterest income including adjustments

93,926

95,625

95,844

75,663

73,675

Efficiency ratio (GAAP)

52.40

53.98

64.46

55.99

56.46

N/A - Not applicable.

Non-GAAP

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Adjusted Efficiency Ratio (non-GAAP)

Noninterest expense

50,210

52,935

63,163

43,419

44,505

Less amortization of core deposit

1,176

1,235

1,251

1,022

1,037

Less other real estate expense, net

(186)

128

1,873

Less acquisition related costs, net of losses on branch sales

349

2,296

11,508

810

454

Noninterest expense less adjustments

48,871

49,323

50,276

41,552

41,141

Net interest income

81,144

83,051

82,775

64,234

62,904

Taxable-equivalent adjustment:

Loans

Securities

307

324

328

327

335

Net interest income including adjustments

81,464

83,384

83,113

64,570

63,248

Noninterest income

12,630

12,154

13,109

10,898

10,201

Less death benefit related to BOLI

430

Less securities gains (losses)

(1)

Less MSRs mark to market (losses) gains

(152)

(428)

(389)

(531)

(570)

Taxable-equivalent adjustment:

Change in cash surrender value of BOLI

288

222

312

184

132

Noninterest income including adjustments

13,070

12,796

13,381

11,613

10,903

Net interest income including adjustments plus noninterest income including adjustments

94,534

96,180

96,494

76,183

74,151

Adjusted efficiency ratio (non-GAAP)

51.70

51.28

52.10

54.54

55.48

Quarters Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Adjusted Return on Average Tangible Common Equity Ratio

Net income (GAAP)

25,585

28,787

9,871

21,822

19,830

Income before income taxes (GAAP)

34,064

39,270

13,068

29,213

26,200

Pre-tax income adjustments:

Provision for credit losses - Day Two

13,153

Securities (gains) losses, net

(8)

MSR losses

152

428

389

531

570

Merger-related costs, net of gains on branch sales

349

2,296

11,508

810

454

Death benefit realized on BOLI

(430)

Amortization of core deposit intangibles

1,176

1,235

1,251

1,022

1,037

Adjusted net income, excluding intangibles amortization, before taxes

35,741

43,221

38,940

31,576

28,261

Taxes on adjusted net income

8,896

11,538

9,632

7,989

6,871

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

26,845

31,683

29,308

23,587

21,390

Total Average Common Equity

907,987

883,986

849,998

706,254

683,578

Less average goodwill and intangible assets

152,269

154,416

153,412

113,694

114,743

Average tangible common equity (non-GAAP)

755,718

729,570

696,586

592,560

568,835

Return on average common equity (GAAP)

11.43

12.92

4.61

12.39

11.76

Return on average tangible common equity (non-GAAP)

14.20

16.15

6.16

15.29

14.70

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

14.41

17.23

16.69

15.97

15.25

EX-99.2

Filename: osbc-20260422xex99d2.htm · Sequence: 3

Loan Portfolio Disclosures

AS OF MARCH 31, 2026

Exhibit 99.2

Portfolio Segment Outstanding Classified Allowance

Commercial (incl. Leases) $1,384 $53 1.07%

Commercial Real Estate Investor $1,169 $15 1.77%

Commercial Real Estate Owner Occ. $703 $61 0.69%

Construction $144 $13 0.83%

Residential Real Estate $309 $3 0.87%

Multifamily $357 $2 0.45%

HELOC $236 $2 1.51%

Powersport $674 - 2.52%

Other $209 - 2.27%

Total $5,185 $149 1.39%

Construction

Commercial RE

Investor

22%

Commercial RE

Owner Occ.

14%

Commercial

(inc. Leases)

27%

Multifamily

Residential

Real Estate

HELOC

Other (less than

$100 million)

Powersport

13%

Loan Portfolio Composition (in millions)

Q1 2026 Loan Portfolio Disclosures

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

$3,991 $3,981 $3,940 $3,999 $5,265 $5,252 $5,185

$44 $44 $42 $43

$75 $72

$72

$10

$20

$30

$40

$50

$60

$70

$80

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

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

Total Loans ACL

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

6/30/22 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

Office CRE Healthcare Other Criticized Loans/ Total Loans

Q1 2026 Loan Portfolio Disclosures

$2,256 $1,802 $4,988 $632

$19,361

$1,076

$1,498

$6,416

$1,427

$484

$234 $2,088

$1,363

$858

$(3,000)

$2,000

$7,000

$12,000

$17,000

$22,000

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

OREO OREO Under Contract Repossessed Assets

OREO and Repossessed Assets (in thousands)

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 $37 - $3

Construction $27 - -

Multifamily $26 - -

Hotel CRE $17 - -

Other (under $15 million) $65 $7 -

Total Purchased $244 $7 $11

Manufacturing

C&I

29%

Office CRE

15%

Construction

11%

Multifamily

11%

Hotel CRE

Other (under

$15 million)

27%

$495 $552 $429 $331 $244

15.4%

13.8%

10.5%

8.0%

4.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

$100

$200

$300

$400

$500

$600

3/31/2022 3/31/2023 3/31/2024 3/31/2025 3/31/2026

Outstanding % of Total Loans

Q1 2026 Loan Portfolio Disclosures

Property Type Outstanding LTV Classified Allowance

Retail $334 54% $2 1.08%

Industrial $262 46% $1 1.24%

Office $197 68% $3 3.29%

Hotel $78 46% - 1.68%

Parking Garage $64 49% - 0.95%

Senior Living $63 56% - 1.17%

Mixed Use $54 58% $8 6.12%

Gas Station/ Convenience $44 50% - 0.93%

Other (under $30 million) $73 55% $1 1.42%

Total $1,169 54% $15 1.77%

Commercial Real Estate Investor Portfolio Composition (in millions)

Retail

29%

Office

17%

Industrial

22%

Parking Garage

Hotel

Senior Living

Mixed Use

Other (under

$50 million)

10%

Illinois

56%

Wisconsin

Texas

North Carolina

Pennsylvania

Oklahoma

Other (under $30

million)

21%

State Outstanding LTV Classified

Illinois $641 57% $15

Wisconsin $95 58% -

Texas $72 48% -

North Carolina $37 49% -

Oklahoma $35 62% -

Pennsylvania $33 50% -

Florida $29 40% -

Other (under $25 million) $227 48% -

Total $1,169 54% $15

Q1 2026 Loan Portfolio Disclosures

Location Outstanding LTV Classified Allowance

Illinois $162 72% $3 3.78%

Chicago $32 69% - 2.68%

Suburban $130 72% $3 4.04%

Oklahoma $15 64% - 1.28%

Texas $9 24% - 1.28%

Colorado $6 52% - 1.28%

Oregon $4 74% - 1.28%

Wisconsin $1 63% - 1.28%

Total $197 68% $3 3.29%

Office Commercial Real Estate Investor Portfolio Composition (in millions)

Illinois - Chicago

16%

Illinois - Suburban

66%

Oklahoma

Other (less than

$5 million)

Texas

Colorado

Office Commercial Real Estate Investor Risk Profile (in millions)

Q1 2026 Loan Portfolio Disclosures

$75

$58

$25

$39

$20

$40

$60

$80

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

Maturity Outstanding LTV DSCR

< 1 year $66 86% 1.44x

1-3 years $57 57% 1.40x

3-5 years $19 66% 1.39x

> 5 years $38 54% 1.60x

Total $180 68% 1.46x

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

Industry Outstanding Classified Allowance

Health Care, Social Services $293 $28 0.88%

Other Services $82 $5 0.46%

Retail Trade $67 - 0.21%

Manufacturing $57 $2 0.23%

Real Estate, Leasing $49 - 0.26%

Accommodation, Food Service $31 $7 1.70%

Wholesale Trade $27 $1 0.49%

Arts, Entertainment $23 $2 0.89%

Other (under $20 million) $74 $16 0.90%

Total $703 $61 0.69%

Manufacturing

Accommodation,

Food Service

Retail Trade

Real Estate,

Leasing

Healthcare

42%

Other Services

12%

Other (under $30

million)

18%

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

Health Care, Social Outstanding Classified Allowance

Assisted Living $142 $26 1.31%

Skilled Nursing $68 - 0.21%

Memory Care $49 - 0.31%

Independent Living $17 - 0.44%

Child Care $6 - 2.07%

Other (under $5 million) $11 $2 1.26%

Total $293 $28 0.88%

Skilled

Nursing

23%

Assisted

Living

48%

Memory Care

17%

Independent

Child Care

Other (under $5 million)

Q1 2026 Loan Portfolio Disclosures

Commercial & Industrial Outstanding Classified

Manufacturing $412 $14

Construction $203 $9

Administrative, Waste Service $158 $3

Professional $131 -

Transportation, Warehousing $111 $17

Real Estate, Leasing $72 -

Finance, Insurance $71 $1

Health Care, Social Services $64 -

Wholesale Trade $48 $3

Other (under $20 million) $114 $6

Total $1,384 $53

Commercial (including Leases) Portfolio Composition (in millions)

Construction

15%

Manufacturing

30%

Transportation,

Warehousing

Finance, Insurance

Professional

Administration,

Waste Service

11%

Health Care,

Social Services

Real Estate,

Leasing

Other (under

$50 million)

12%

Commercial Revolving Line Utilization (outstanding in millions)

$654 $677 $653 $587 $574 $658 $717 $718

55% 56% 55%

52% 53%

55%

57% 57%

30%

35%

40%

45%

50%

55%

60%

$400

$450

$500

$550

$600

$650

$700

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

Q1 2026 Loan Portfolio Disclosures

Origination Tier Outstanding Weighted FICO Portfolio APR %

Tier 1 $351 776 7.92%

Tier 2 $132 710 10.15%

Tier 3 $81 683 12.67%

Tier 4 $40 657 14.67%

Tier 5 $70 606 17.00%

Total $674 729 10.14%

Powersport Portfolio Composition (in millions)

Tier 1

54%

Tier 2

20%

Tier 3

11%

Tier 4

Tier 5

Historical Contribution Margin

Q1 2026 Loan Portfolio Disclosures

Contribution Margin (1) 2021 (EBG) 2022 (EBG) 2023 (EBG) 2024 (EBG) 12/31/2025 3/31/2026

Portfolio APR 7.22% 7.42% 8.13% 9.02% 9.82% 10.14%

Net Promo Accretion 1.18% 0.69% 0.41% 0.74% 1.03% 1.30%

Participation -0.76% -0.84% -0.87% -0.87% -0.91% -1.08%

Net Loss -0.39% -0.62% -1.11% -1.39% -1.76% -2.06%

Net Contribution Margin 7.26% 6.65% 6.56% 7.52% 8.19% 8.30%

(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 $518 77% 9.48%

Used $156 23% 12.37%

Total $674 10.14%

Net Charge-offs (Recoveries) (in thousands)

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

Commercial (incl. Leases) $1,090 $1,233 ($29) $1,495 $3,789 0.29%

Commercial Real Estate Investor ($14) ($15) ($14) $3,928 $3,885 0.32%

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

Construction ($337) ($46) - - ($383) (0.20%)

Residential Real Estate ($10) ($9) ($11) ($9) ($39) (0.01%)

Multifamily - $181 - - $181 0.05%

HELOC ($10) ($19) ($49) ($6) ($84) (0.04%)

Powersport $2,980 $4,466 $3,894 $11,340 1.65%

Other $67 $805 (1) $493 (1) $488 (1) $1,853 1.28%

Total $785 $5,108 $5,981 $9,776 $21,650 0.47%

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

Beginning ACL Balance $43,619 $41,551 $42,990 $75,037 $72,301

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

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

Plus: Provision $2,285 $2,224 $6,462 $3,245 $9,602

Less: Net Charge-off (Recovery) $4,353 $785 $5,108 $5,981 $9,776

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

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

Q1 2026 Loan Portfolio Disclosures

(2) The Allowance for Credit Losses presented excludes the Allowance for Unfunded Commitments, which totaled $2.0 million as of March 31, 2026 and is reported within other

liabilities on the Statements of Condition.

(1) $481, $332 and $420 in net charge-offs were associated with the Solar consumer portfolio acquired in Evergreen Bank Group acquisition for 9/30/2025, 12/31/2025 and

3/31/2026 respectively.

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Document and Entity Information

Apr. 22, 2026

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