Old Second Bancorp, Inc

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(NASDAQ:OSBC)

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			2025			2025			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 ratios²
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

¹See 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.

²Both 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.

³The 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		2025		2025		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		129,196		130,262		93,232		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		25,774		25,774		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		53,015		53,015		45,094		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		2025		2025		2025
Interest and dividend income
Loans, including fees		$	87,138		$	90,925	$	91,301	$	61,954	$	61,595
Loans held-for-sale			43			35		31		39		22
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			50			45		60		56		68
Other short-term borrowings			1,791			1,644		308		-		17
Junior subordinated debentures			296			288		288		288		288
Subordinated debentures			546			546		547		546		546
Notes payable and other borrowings			155			158		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		92		84		73
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			-			8		(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		15		25
Other real estate expense, net			(186)			81		128		35		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			0.07		0.06		0.06		0.06

¹Certain 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-sale^{1, 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			50	0.82		23,464			45	0.76		34,529			68	0.80
Other short-term borrowings		189,056			1,791	3.84		159,565			1,644	4.09		1,444			17	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		2025		2025				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

¹The “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			2025			2025			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	%		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	%

¹Repossessed 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			2025		2025			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			68			-		-			-
Other¹			369			270			30		22			10
Total classified loans		$	148,572		$	150,099		$	134,260	$	97,620		$	85,043

¹The “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		2025		2025			2025
Commercial	$	1,298	$	(44)	$	385	$	1,093	$	3,414
Leases		197		15		848		(3)		93
Commercial real estate – Investor		3,919		(14)		(15)		(14)		(14)
Commercial real estate – Owner occupied		(5)		1,125		(2)		(1)		39
Construction		-		-		(46)		(337)		821
Residential real estate – Investor		(2)		(1)		(2)		(2)		(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		-		-
Other¹		488		494		805		67		44
Net charge–offs / (recoveries)	$	9,776	$	5,981	$	5,108	$	785	$	4,353

¹The “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		2025		2025		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		25,774		25,774		25,773		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		53,015		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			2025			2025			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)			1			-			-
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			2025			2025			2025
Net Interest Margin
Interest income (GAAP)	$	98,346		$	102,303		$	104,075			75,238			73,565
Taxable-equivalent adjustment:
Loans		13			9			10			9			9
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			2025			2025			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)			81			128			35			1,873
Less acquisition related costs, net of losses on branch sales		N/A			N/A			N/A			N/A			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			N/A			N/A			N/A			N/A
Securities		N/A			N/A			N/A			N/A			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)		-			8			(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			N/A			N/A			N/A			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			2025			2025			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)			81			128			35			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		13			9			10			9			9
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)		-			8			(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			2025			2025			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)			1			-			-
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	%