8-K - OSBC - Equibles

United States

Securities And Exchange Commission Washington, D.C. 20549

FORM 8-K

Current Report

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

Date of Report (Date of earliest event reported): July 23, 2025

(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:

<br><br>
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	OSBC	The Nasdaq Stock Market

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

Emerging growth company ☐

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

Item 2.02 Results of Operations and Financial Condition

On July 23, 2025, Old Second Bancorp, Inc. (the “Company’s”) issued a press release announcing its financial results for the second quarter ended June 30, 2025, 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 July 23, 2025

99.2		Loan Portfolio Disclosures for Old Second Bancorp, Inc. dated June 30, 2025

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: July 23, 2025	By:	/s/ Bradley S. Adams
		Bradley S. Adams
		Executive Vice President,
		Chief Operating Officer and
		Chief Financial Officer

Old Second Bancorp, Inc



(NASDAQ:OSBC)		Exhibit 99.1

Contact:	Bradley S. Adams	For Immediate Release
	Chief Financial Officer	July 23, 2025
	(630) 906-5484

Old Second Bancorp, Inc. Reports Second Quarter 2025 Net Income of $21.8 Million,

or $0.48 per Diluted Share

AURORA, IL, July 23, 2025 – Old Second Bancorp, Inc. (the “Company,” “Old Second,” “we,” “us,” and “our”) (NASDAQ: OSBC), the parent company of Old Second National Bank (the “Bank”), today announced financial results for the second quarter of 2025. Our net income was $21.8 million, or $0.48 per diluted share, for the second quarter of 2025, compared to net income of $19.8 million, or $0.43 per diluted share, for the first quarter of 2025, and net income of $21.9 million, or $0.48 per diluted share, for the second quarter of 2024. Adjusted net income, a non-GAAP financial measure that excludes certain nonrecurring items, as applicable, was $22.8 million, or $0.50 per diluted share, for the second quarter of 2025, compared to $20.6 million, or $0.45 per diluted share, for the first quarter of 2025, and $21.2 million, or $0.46 per diluted share, for the second quarter of 2024. The pre-tax adjusting items impacting the second quarter of 2025 included the exclusion of $531,000 of mortgage servicing rights (“MSRs”) mark to market losses, and $810,000 of transaction-related expenses primarily from our merger with Bancorp Financial, Inc. (“Bancorp Financial”) that closed on July 1, 2025. The adjusting items impacting the first quarter of 2025 included the exclusion of $570,000 of MSRs mark to market losses and $454,000 of transaction-related expenses due to the Bancorp Financial merger and the First Merchants (“FRME”) branch purchase, which occurred in December 2024. The adjusting item impacting the second quarter of 2024 included the exclusion of $238,000 of MSRs mark to market losses and an $893,000 death benefit related to BOLI. See the discussion entitled “Non-GAAP Presentations” below and the tables beginning on page 17 that provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Net income increased $2.0 million in the second quarter of 2025 compared to the first quarter of 2025. The increase was primarily due to a $1.7 million increase in interest and dividend income, a $697,000 increase in noninterest income, and a $1.1 million decrease in noninterest expense in the second quarter of 2025, compared to the prior linked quarter. The increases to the current quarter’s net income were partially offset by a $343,000 increase in interest expense and a $1.0 million increase in provision for income taxes. Net income decreased $69,000 in the second quarter of 2025 compared to the second quarter of 2024, primarily due to an increase of $5.5 million in noninterest expense and a $229,000 decrease in noninterest income, partially offset by a $4.5 million increase in net interest and dividend income and a $1.3 million decrease in provision for credit losses.

Operating Results

●	Second quarter 2025 net income was $21.8 million, reflecting a $2.0 million increase from the first quarter of 2025, but a decrease of $69,000 from the second quarter of 2024. Adjusted net income, as defined above, was $22.8 million for the second quarter of 2025, an increase of $2.2 million from adjusted net income for the first quarter of 2025, and an increase of $1.6 million from adjusted net income for the second quarter of 2024.
●	Net interest and dividend income was $64.2 million for the second quarter of 2025, reflecting an increase of $1.3 million, or 2.1%, from the first quarter of 2025, and an increase of $4.5 million, or 7.6%, from the second quarter of 2024.
---	---
●	We recorded a net provision for credit losses of $2.5 million in the second quarter of 2025 compared to a net provision for credit losses of $2.4 million in the first quarter of 2025 and net provision for credit losses of $3.8 million in the second quarter of 2024.
---	---
●	Noninterest income was $10.9 million for the second quarter of 2025, an increase of $697,000, or 6.8%, compared to $10.2 million for the first quarter of 2025, and a decrease of $229,000, or 2.1%, compared to $11.1 million for the second quarter of 2024.
---	---

●	Noninterest expense was $43.4 million for the second quarter of 2025, a decrease of $1.1 million, or 2.4%, compared to $44.5 million for the first quarter of 2025, and an increase of $5.5 million, or 14.6%, compared to $37.9 million for the second quarter of 2024.
●	We had a provision for income tax of $7.4 million for the second quarter of 2025, compared to a provision for income tax of $6.4 million for the first quarter of 2025 and a provision for income tax of $7.3 million for the second quarter of 2024. The effective tax rate for each of the periods presented was 25.3%, 24.3%, and 25.0%, respectively.
---	---
●	On July 15, 2025, our Board of Directors declared a cash dividend of $0.06 per share of common stock, payable on August 4, 2025, to stockholders of record as of July 25, 2025.
---	---

Financial Highlights


	Quarters Ended
(Dollars in thousands)	June 30,			March 31,			June 30,
	2025			2025			2024
Balance sheet summary
Total assets	$	5,701,294		$	5,727,686		$	5,662,700
Total securities available-for-sale		1,177,688			1,146,721			1,173,661
Total loans		3,998,667			3,940,232			3,976,595
Total deposits		4,798,439			4,852,791			4,521,728
Total liabilities		4,982,645			5,033,195			5,043,365
Total equity		718,649			694,491			619,335

Total tangible assets	$	5,588,090		$	5,613,460		$	5,566,159
Total tangible equity		605,445			580,265			522,794

Income statement summary
Net interest income	$	64,234		$	62,904		$	59,690
Provision for credit losses		2,500			2,400			3,750
Noninterest income		10,898			10,201			11,127
Noninterest expense		43,419			44,505			37,877
Net income		21,822			19,830			21,891
Effective tax rate		25.30	%		24.31	%		25.01	%

Profitability ratios
Return on average assets (ROAA)		1.53	%		1.42	%		1.57	%
Return on average equity (ROAE)		12.39			11.76			14.55
Net interest margin (tax-equivalent)		4.85			4.88			4.63
Efficiency ratio		55.99			56.46			53.29
Return on average tangible common equity (ROATCE) ^1^		15.29			14.70			17.66
Tangible common equity to tangible assets (TCE/TA)		10.83			10.34			9.39

Per share data
Diluted earnings per share	$	0.48		$	0.43		$	0.48
Tangible book value per share		13.44			12.88			11.66

Company capital ratios^2^
Common equity tier 1 capital ratio		13.77	%		13.47	%		12.41	%
Tier 1 risk-based capital ratio		14.31			14.01			12.94
Total risk-based capital ratio		16.55			16.24			15.12
Tier 1 leverage ratio		11.83			11.58			10.96

Bank capital ratios ^2, 3^
Common equity tier 1 capital ratio		14.02	%		13.64	%		13.50	%
Tier 1 risk-based capital ratio		14.02			13.64			13.50
Total risk-based capital ratio		14.99			14.58			14.42
Tier 1 leverage ratio		11.59			11.27			11.43

^1^^^See the discussion entitled “Non-GAAP Presentations” below and the table on page 18 that provides 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. 2

Chairman, President and Chief Executive Officer Jim Eccher said “Old Second reported another quarter of strong results in the second quarter of 2025, led by exceptional margin performance and disciplined operating efficiency. Second quarter return on average assets and return on average tangible common equity were 1.53% and 15.29%, respectively, the tax equivalent net interest margin was strong at 4.85% and the efficiency ratio was a very healthy 55.99%. Tangible book value per share continues to compound at a double-digit rate and the balance sheet remains strong and liquid with a common equity tier 1 ratio of 13.77%, a loan to deposit ratio of 83% and cash and marketable securities in excess of 23% of total assets. We are extremely proud of our financial performance so far this year, and believe we are both well positioned to capitalize upon future growth opportunities and weather any economic challenges that may present themselves.”

“On July 1, 2025, subsequent to the end of the quarter, we acquired Bancorp Financial, Inc., a $1.4 billion bank holding company headquartered in Oak Brook, Illinois and its subsidiary bank, Evergreen Bank Group. We believe the transaction will add meaningful consumer lending capabilities and enhance the flexibility and profitability of Old Second’s balance sheet. The additional scale created by the merger and the new product and service offerings offer a tremendous opportunity to deliver great outcomes for our stockholders, customers, employees and communities. We are extremely excited to welcome Evergreen Bank customers and employees to the Old Second team.”

Asset Quality & Earning Assets

●	Nonperforming loans, comprised of nonaccrual loans plus loans past due 90 days or more and still accruing, totaled $32.2 million at June 30, 2025, $34.8 million at March 31, 2025, and $46.9 million at June 30, 2024. Nonperforming loans, as a percent of total loans, was 0.8% at June 30, 2025, 0.9% at March 31, 2025, and 1.2% at June 30, 2024. The $2.5 million decrease in the second quarter of 2025 for nonperforming loans is driven by nonaccrual loans outflows of $6.6 million primarily due to one relationship that was transferred to OREO, partially offset by inflows of $5.1 million, primarily driven by one commercial real estate – owner occupied relationship. Nonaccrual loan outflows consist of $799,000 of loans paid off, a $5.0 million loan transferred to OREO, $665,000 of partial principal reductions from payments and partial charge-offs on loans, $70,000 of loans fully charged off, and $59,000 of loans upgraded. The net $1.5 million decrease to nonaccrual loans in the second quarter of 2025, compared to the prior linked quarter, was also accompanied by a $1.1 million decrease to loans past due 90 days or more and still accruing.
●	Total loans were $4.00 billion at June 30, 2025, reflecting an increase of $58.4 million compared to March 31, 2025, and an increase of $22.1 million compared to June 30, 2024. The increase from the prior quarter end as well as year over year was largely driven by the growth in leases, commercial real estate-investor and construction portfolios. Average loans (including loans held-for-sale) for the second quarter of 2025 totaled $3.96 billion, reflecting an increase of $1.6 million from the first quarter of 2025, and an increase of $2.1 million from the second quarter of 2024.
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●	Available-for-sale securities totaled $1.18 billion at June 30, 2025, compared to $1.15 billion at March 31, 2025 and $1.17 billion at June 30, 2024. The unrealized mark to market loss on securities totaled $54.7 million as of June 30, 2025, compared to $59.7 million as of March 31, 2025, and $82.6 million as of June 30, 2024, due to market interest rate fluctuations as well as changes year over year in the composition of the securities portfolio. During the quarter ended June 30, 2025, we had security purchases of $79.6 million, and security maturities, calls and paydowns of $53.2 million, compared to security purchases of $82.9 million and security maturities, calls and paydowns of $106.3 million during the quarter ended March 31, 2025. During the quarter ended June 30, 2024, we had security purchases of $142.2 million and $139.0 million of maturities, calls, and paydowns. We may continue to buy and sell strategically identified securities as opportunities arise.
---	---

Net Interest Income


Analysis of Average Balances,
Tax Equivalent Income / Expense and Rates
(Dollars in thousands - unaudited)

	Quarters Ended
	June 30, 2025						March 31, 2025						June 30, 2024
	Average			Income /		Rate	Average			Income /		Rate	Average			Income /		Rate
	Balance			Expense		%	Balance			Expense		%	Balance			Expense		%
Assets
Interest earning deposits with financial institutions	$	166,366		$	1,784	4.30	$	97,645		$	988	4.10	$	50,740		$	625	4.95
Securities:
Taxable		1,040,472			9,959	3.84		1,026,233			9,227	3.65		1,016,187			8,552	3.38
Non-taxable (TE)^1^		149,651			1,556	4.17		155,024			1,595	4.17		163,243			1,636	4.03
Total securities (TE)^1^		1,190,123			11,515	3.88		1,181,257			10,822	3.72		1,179,430			10,188	3.47
FHLBC and FRBC Stock		19,200			273	5.70		19,441			473	9.87		27,574			584	8.52
Loans and loans held-for-sale^1, 2^		3,960,650			62,002	6.28		3,959,073			61,626	6.31		3,958,504			62,180	6.32
Total interest earning assets		5,336,339			75,574	5.68		5,257,416			73,909	5.70		5,216,248			73,577	5.67
Cash and due from banks		47,875			-	-		52,550			-	-		54,286			-	-
Allowance for credit losses on loans		(41,544)			-	-		(43,543)			-	-		(43,468)			-	-
Other noninterest earning assets		394,036			-	-		407,894			-	-		388,392			-	-
Total assets	$	5,736,706					$	5,674,317					$	5,615,458

Liabilities and Stockholders' Equity
NOW accounts	$	653,334		$	681	0.42	$	628,336		$	629	0.41	$	570,523		$	639	0.45
Money market accounts		832,777			3,920	1.89		801,178			3,393	1.72		691,214			2,915	1.70
Savings accounts		938,836			1,005	0.43		940,894			891	0.38		934,161			763	0.33
Time deposits		695,946			4,508	2.60		725,314			4,829	2.70		610,705			4,961	3.27
Interest bearing deposits		3,120,893			10,114	1.30		3,095,722			9,742	1.28		2,806,603			9,278	1.33
Securities sold under repurchase agreements		35,419			56	0.63		34,529			68	0.80		37,430			83	0.89
Other short-term borrowings		-			-	-		1,444			17	4.77		242,912			3,338	5.53
Junior subordinated debentures		25,773			288	4.48		25,773			288	4.53		25,773			288	4.49
Subordinated debentures		59,500			546	3.68		59,478			546	3.72		59,414			546	3.70
Total interest bearing liabilities		3,241,585			11,004	1.36		3,216,946			10,661	1.34		3,172,132			13,533	1.72
Noninterest bearing deposits		1,729,287			-	-		1,703,382			-	-		1,769,543			-	-
Other liabilities		59,580			-	-		70,411			-	-		68,530			-	-
Stockholders' equity		706,254			-	-		683,578			-	-		605,253			-	-
Total liabilities and stockholders' equity	$	5,736,706					$	5,674,317					$	5,615,458
Net interest income (GAAP)				$	64,234					$	62,904					$	59,690
Net interest margin (GAAP)						4.83						4.85						4.60

Net interest income (TE)^1^				$	64,570					$	63,248					$	60,044
Net interest margin (TE)^1^						4.85						4.88						4.63
Interest bearing liabilities to earning assets		60.75	%					61.19	%					60.81	%

^1^ Tax equivalent (TE) basis is calculated using a marginal tax rate of 21% in 2025 and 2024. See the discussion entitled “Non-GAAP Presentations” below and the tables beginning on page 17 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 17, and includes loan fee income of $366,000 for the second quarter of 2025, loan fee income of $545,000 for the first quarter of 2025, and loan fee expense of $936,000 for the second quarter of 2024. Nonaccrual loans are included in the above stated average balances.

The decreased yield of two basis points on interest earning assets compared to the linked period was primarily driven by a lower yield on FHLBC and FRBC Stock due to less capital stock dividends received during the second quarter of 2025 and repricing within the loan portfolio. Changes in the market interest rate environment impact earning assets at varying intervals depending on the repricing timeline of loans, as well as the securities maturity, paydown and purchase activities.

The year over year increase of one basis point on interest earning assets was primarily driven by planned turnover in our securities portfolio with many older and lower yielding securities maturing and being replaced with higher yielding investments while maintaining the shorter duration portfolio composition. Average balances of securities available for sale increased $10.7 million in the second quarter of 2025 compared to the prior year like quarter, with a corresponding increase to the tax equivalent yield on the securities available for sale portfolio of 41 basis points year over year primarily due to variable security rate resets. Average balances of loans and loans held for sale increased $2.1 million in the second quarter of 2025 compared to the prior year like quarter, while the tax equivalent yield on loans and loans held for sale decreased four basis points.

Average balances of interest bearing deposit accounts have increased steadily since the first quarter of 2025 through the second quarter of 2025, from $3.10 billion to $3.12 billion, as NOW and money market account average balances increased, while savings and time deposit accounts decreased. We have continued to control the cost of funds over the periods reflected by monitoring market activity as well as allowing previous exception-priced deposits to runoff naturally, which resulted in only a two basis point increase in the cost of interest bearing deposits, from 128 basis points for the quarter ended March 31, 2025, to 130 basis points for the quarter ended June 30, 2025. A 17 basis point increase in money market accounts for the quarter ended June 30, 2025 drove a significant portion of the increase from the prior linked quarter, with a 10 basis point decrease in the cost of time deposits partially offsetting the overall change in the cost of deposits. The cost of interest bearing deposits decreased three basis points for the quarter ended June 30, 2025 from 133 basis points for the quarter ended June 30, 2024. A 67 basis point decrease in the cost of time deposit accounts drove a significant portion of the overall decrease from the prior year like quarter.

Borrowing costs decreased slightly in the second quarter of 2025, compared to the first quarter of 2025, primarily due to the $1.4 million decrease in average other short-term borrowings stemming from a decrease in average daily FHLB advances over the prior linked quarter as the remainder of this borrowing was already paid down in the first quarter of 2025. The decrease of $242.9 million year over year of average FHLB advances was based on daily liquidity needs and was the primary driver of the $3.3 million decrease to interest expense on other short-term borrowings. Subordinated and junior subordinated debt interest expense were essentially flat over each of the periods presented.

Our net interest margin, for both GAAP and TE presentations, showed nominal declines over the prior linked quarter periods, but steady growth over the prior year like quarter presented above. Our net interest margin (GAAP) decreased two basis points to 4.83% for the second quarter of 2025, compared to 4.85% for the first quarter of 2025, but increased 23 basis points compared to 4.60% for the second quarter of 2024. Our net interest margin (TE) decreased three basis points to 4.85% for the second quarter of 2025, compared to 4.88% for the first quarter of 2025, but increased 22 basis points compared to 4.63% for the second quarter of 2024. The decrease in net interest margin for the second quarter of 2025, compared to the prior linked quarter, was driven by market interest rates and one more day in the period with larger interest earning asset balances. The net interest margin increased in the second quarter of 2025, compared to the prior year like quarter, primarily due to higher security yields as well as the decrease in average other short-term borrowings and the corresponding reduction in interest expense. See the discussion entitled “Non-GAAP Presentations” and the tables beginning on page 17 that provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Noninterest Income


										June 30, 2025
Noninterest Income	Three Months Ended									Percent Change From
(Dollars in thousands)	June 30,			March 31,			June 30,			March 31,		June 30,
	2025		****	2025		****	2024		****	2025	****	2024
Wealth management	$	3,103		$	3,089		$	2,779		0.5		11.7
Service charges on deposits		2,788			2,719			2,508		2.5		11.2
Residential mortgage banking revenue
Secondary mortgage fees		84			73			65		15.1		29.2
MSRs mark to market loss		(531)			(570)			(238)		6.8		(123.1)
Mortgage servicing income		472			480			513		(1.7)		(8.0)
Net gain on sales of mortgage loans		550			464			468		18.5		17.5
Total residential mortgage banking revenue		575			447			808		28.6		(28.8)
Change in cash surrender value of BOLI		690			498			820		38.6		(15.9)
Death benefit realized on BOLI		-			-			893		-		(100.0)
Card related income		2,716			2,412			2,577		12.6		5.4
Other income		1,026			1,036			742		(1.0)		38.3
Total noninterest income	$	10,898		$	10,201		$	11,127		6.8		(2.1)

Noninterest income increased $697,000, or 6.8%, in the second quarter of 2025, compared to the first quarter of 2025, and decreased $229,000, or 2.1%, compared to the second quarter of 2024. The increase from the first quarter of 2025 was primarily driven by a $304,000 increase in card related income and a $192,000 increase in the cash surrender value of BOLI due to changes in market interest rates.

The decrease in noninterest income of $229,000 in the second quarter of 2025, compared to the second quarter of 2024, is primarily due to no death benefits realized on BOLI in 2025, compared to an $893,000 death benefit recorded in the second quarter of 2024. Also contributing to the reduction in noninterest income during the quarter was a $233,000 decrease in residential mortgage banking revenue mainly due to a $293,000 decrease in MSRs mark to market valuations. Partially offsetting the decrease in noninterest income from the prior year like quarter was a $324,000 increase in wealth management income primarily due to growth in advisory fees and estate fees, a $280,000 increase in service charges on deposits, and a $284,000 increase in other income due to growth in commercial swap fee income, as well as a real estate tax refund related to a prior year tax assessment received in the second quarter of 2025 from an OREO property.

Noninterest Expense


										June 30, 2025
Noninterest Expense	Three Months Ended									Percent Change From
(Dollars in thousands)	June 30,			March 31,			June 30,			March 31,		June 30,
	2025		****	2025		****	2024		****	2025	****	2024
Salaries	$	19,119		$	18,804		$	17,997		1.7		6.2
Officers' incentive		2,921			2,799			1,482		4.4		97.1
Benefits and other		4,910			5,390			3,945		(8.9)		24.5
Total salaries and employee benefits		26,950			26,993			23,424		(0.2)		15.1
Occupancy, furniture and equipment expense		4,477			4,548			3,899		(1.6)		14.8
Computer and data processing		2,692			2,348			2,184		14.7		23.3
FDIC insurance		642			628			616		2.2		4.2
Net teller & bill paying		670			658			578		1.8		15.9
General bank insurance		328			330			312		(0.6)		5.1
Amortization of core deposit intangible asset		1,022			1,037			574		(1.4)		78.0
Advertising expense		320			167			472		91.6		(32.2)
Card related expense		1,489			1,380			1,323		7.9		12.5
Legal fees		388			472			238		(17.8)		63.0
Consulting & management fees		527			426			797		23.7		(33.9)
Other real estate owned expense, net		35			1,873			(87)		(98.1)		N/M
Other expense		3,879			3,645			3,547		6.4		9.4
Total noninterest expense	$	43,419		$	44,505		$	37,877		(2.4)		14.6
Efficiency ratio (GAAP)^1^		55.99	%		56.46	%		53.29	%
Adjusted efficiency ratio (non-GAAP)^2^		54.54	%		55.48	%		52.68	%

N/M - Not meaningful.

^1^The efficiency ratio shown in the table above is a GAAP financial measure calculated as noninterest expense, excluding amortization of core deposits and OREO expenses, divided by the sum of net interest income and total noninterest income less net gains or losses on securities, death benefit realized on BOLI, as applicable, and mark to market gains or losses on MSRs.

^2^ The adjusted efficiency ratio shown in the table above is a non-GAAP financial measure calculated as noninterest expense, excluding amortization of core deposits, OREO expenses, and acquisition expenses, net of gain or loss on branch sales, divided by the sum of net interest income on a fully TE basis, total noninterest income less net gains or losses on securities, death benefit realized on BOLI, as applicable, mark to market gains or losses on MSRs, and includes a tax equivalent adjustment on the change in cash surrender value of BOLI. See the discussion entitled “Non-GAAP Presentations” below and the table on page 18 that provides a reconciliation of this non-GAAP financial measure to the most comparable GAAP equivalent.

Noninterest expense for the second quarter of 2025 decreased $1.1 million, or 2.4%, compared to the first quarter of 2025, and increased $5.5 million, or 14.6%, compared to the second quarter of 2024. The decrease in the second quarter of 2025, compared to the first quarter of 2025, was attributable to a $1.8 million decrease in other real estate owned (“OREO”) expense, net, as the second quarter of 2025 reflects a $76,000 gain on the sale of OREO compared to a $236,000 net loss on the sale of OREO properties in the first quarter of 2025, as well as a $297,000 decrease in OREO valuation expenses and a $1.2 million decrease in other OREO expenses due to lower operating costs driven by the sale of a large OREO property in the first quarter of 2025. Partially offsetting the decrease in noninterest expense over the prior linked quarter was a $344,000 increase in computer and data processing due to Bancorp Financial acquisition-related costs, a $153,000 increase in advertising expenses mainly due to advertising and art production costs for a brand awareness campaign, and a $234,000 increase in other expenses due to filing and printing fees for the annual proxy and for SEC filings related to the Bancorp Financial merger.

The year over year increase in noninterest expense is primarily attributable to a $3.5 million increase in salaries and employee benefits, primarily due to increases in annual base salary rates, officers’ incentives, and restricted stock expense in the second quarter of 2025. Also contributing to the increase was a $578,000 increase in occupancy, furniture and equipment, a $508,000 increase in computer and data processing expenses, a $448,000 increase in core deposit intangible, a $150,000 increase in legal fees, and a $332,000 increase in other expense primarily due to the effect of the FRME branches purchased in December 2024 as well as acquisition-related costs associated with our merger with Bancorp Financial. Partially offsetting the year over year increase was a $152,000 decrease in advertising expense and a $270,000 decrease in consulting & management fees, as the prior year included consulting costs for a compliance item. 7

Earning Assets


							June 30, 2025
Loans	As of						Percent Change From
(Dollars in thousands)	June 30,		March 31,		June 30,		March 31,		June 30,
	2025		2025		2024		2025	****	2024
Commercial	$	718,927	$	732,874	$	809,443	(1.9)		(11.2)
Leases		524,513		505,455		452,957	3.8		15.8
Commercial real estate – investor		1,118,782		1,105,440		1,014,345	1.2		10.3
Commercial real estate – owner occupied		652,449		669,964		745,938	(2.6)		(12.5)
Construction		251,692		205,839		185,634	22.3		35.6
Residential real estate – investor		50,976		50,103		50,371	1.7		1.2
Residential real estate – owner occupied		220,672		210,239		218,974	5.0		0.8
Multifamily		333,787		341,253		388,743	(2.2)		(14.1)
HELOC		111,265		104,575		99,037	6.4		12.3
Other^1^		15,604		14,490		11,153	7.7		39.9
Total loans	$	3,998,667	$	3,940,232	$	3,976,595	1.5		0.6

^1^Other class includes consumer loans and overdrafts.

Total loans increased by $58.4 million at June 30, 2025, compared to March 31, 2025, and increased $22.1 million for the year over year period. The increase in total loans in the second quarter of 2025 compared to the prior linked quarter was due to increased originations, net of paydowns, over the second quarter, primarily in leases for $19.1 million, commercial real estate – investor for $13.3 million, and construction loans for $45.9 million. The increases are partially offset by decreases in commercial for $13.9 million, commercial real estate – owner occupied for $17.5 million, and multifamily for $7.5 million. The year over year growth in loans is primarily due to originations, net of paydowns, in leases for $71.6 million, commercial real estate – investor of $104.4 million, and construction for $66.1 million, partially offset by decreases, net of originations, in commercial for $90.5 million, commercial real estate – owner occupied for $93.5 million, and multifamily for $55.0 million. Increases were noted in the leases segment in the second quarter of 2025 compared to the prior linked quarter and compared to the prior year like period primarily due to growth within the equipment finance product over the past year. Construction equipment continues to be the largest part of our lease portfolio, followed by vocational equipment (mounted equipment on a truck) such as: dump trucks, ready mix trucks, and bucket trucks. The largest increase in the last year is in our special vehicle vertical which includes tow trucks, school buses, motor coaches, and livery equipment.


										June 30, 2025
Securities		As of								Percent Change From
(Dollars in thousands)		June 30,			March 31,			June 30,		March 31,		June 30,
	****	2025		****	2025		****	2024		2025	****	2024
Securities available-for-sale, at fair value
U.S. Treasury		$	190,446		$	160,191		$	191,274	18.9		(0.4)
U.S. government agencies			38,141			38,047			37,298	0.2		2.3
U.S. government agency mortgage-backed			96,083			98,929			96,872	(2.9)		(0.8)
States and political subdivisions			208,814			209,117			220,265	(0.1)		(5.2)
Collateralized mortgage obligations			395,014			390,891			386,055	1.1		2.3
Asset-backed securities			48,119			49,701			64,877	(3.2)		(25.8)
Collateralized loan obligations			201,071			199,845			177,020	0.6		13.6
Total securities available-for-sale		$	1,177,688		$	1,146,721		$	1,173,661	2.7		0.3

Our securities available-for-sale portfolio totaled $1.18 billion as of June 30, 2025, reflecting an increase of $31.0 million from March 31, 2025, and an increase of $4.0 million since June 30, 2024. The portfolio’s increase in the second quarter of 2025, compared to the prior quarter-end, was due to $79.6 million in purchases and a $5.0 million reduction in unrealized losses, partially offset by $53.2 million in maturities, calls, and paydowns. Net unrealized losses at June 30, 2025 were $54.7 million, compared to $59.7 million at March 31, 2025 and $82.6 million at June 30, 2024. The year over year decrease in net unrealized losses is due to changes in the market interest rate environment as well as the impact of matured securities being replaced with higher yielding short duration investments. The portfolio continues to consist of high quality fixed-rate and floating-rate securities, with more than 99% of publicly issued securities rated AA or better. 8

Asset Quality


										June 30, 2025
Nonperforming assets	As of									Percent Change From
(Dollars in thousands)	June 30,			March 31,			June 30,			March 31,	June 30,
	2025		****	2025		****	2024		****	2025	2024
Nonaccrual loans	$	31,902		$	33,394		$	41,957		(4.5)	(24.0)
Loans past due 90 days or more and still accruing interest		345			1,397			4,909		(75.3)	(93.0)
Total nonperforming loans		32,247			34,791			46,866		(7.3)	(31.2)
Other real estate owned		6,486			2,878			6,920		125.4	(6.3)
Repossessed Assets ^(1)^		234			484			-		(51.7)	N/M
Total nonperforming assets	$	38,967		$	38,153		$	53,786		2.1	(27.6)

30-89 days past due loans and still accruing interest	$	14,652		$	21,951		$	16,728
Nonaccrual loans to total loans		0.8	%		0.8	%		1.1	%
Nonperforming loans to total loans		0.8	%		0.9	%		1.2	%
Nonperforming assets to total loans plus OREO and repossessed assets		1.0	%		1.0	%		1.4	%
Purchased credit-deteriorated loans to total loans		0.2	%		0.3	%		0.8	%

Allowance for credit losses	$	42,990		$	41,551		$	42,269
Allowance for credit losses to total loans		1.1	%		1.1	%		1.1	%
Allowance for credit losses to nonaccrual loans		134.8	%		124.4	%		100.7	%

N/M - Not meaningful.

^1^Repossessed assets are reported in other assets.

Nonperforming loans consist of nonaccrual loans and loans 90 days or more past due and still accruing interest. Purchased credit-deteriorated (“PCD”) loans acquired in our acquisitions of West Suburban and ABC Bank totaled $9.2 million, net of purchase accounting adjustments, at June 30, 2025. No PCD loans were acquired with our FRME branch acquisition. PCD loans that meet the definition of nonperforming loans are included in our nonperforming disclosures.

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.


										June 30, 2025
Classified loans		As of								Percent Change From
(Dollars in thousands)		June 30,			March 31,			June 30,		March 31,		June 30,
	****	2025		****	2025		****	2024		2025	****	2024
Commercial		$	23,354		$	20,807		$	19,142	12.2		22.0
Leases			1,346			848			284	58.7		373.9
Commercial real estate – investor			14,752			14,299			36,939	3.2		(60.1)
Commercial real estate – owner occupied			51,335			26,818			48,387	91.4		6.1
Construction			1,624			18,201			5,740	(91.1)		(71.7)
Residential real estate – investor			1,201			1,283			1,343	(6.4)		(10.6)
Residential real estate – owner occupied			1,707			1,759			2,734	(3.0)		(37.6)
Multifamily			1,099			332			6,810	231.0		(83.9)
HELOC			1,180			686			1,025	72.0		15.1
Other^1^			22			10			1	120.0		N/M
Total classified loans		$	97,620		$	85,043		$	122,405	14.8		(20.2)

N/M - Not meaningful.

^1^Other class includes consumer loans and overdrafts.

Classified loans as of June 30, 2025 increased by $12.6 million from March 31, 2025, and decreased by $24.8 million from June 30, 2024. The net increase from the first quarter of 2025 was primarily driven by inflows of $35.4 million, mostly driven by one large commercial real estate – owner occupied downgrade. The increase of classified loans in the second quarter of 2025 were offset by $22.8 million of outflows, which consist of $10.1 million of paid off loans, $6.2 million of loans upgraded, $5.0 million transferred into OREO, $1.5 million of principal reductions from payments and partial charge-offs, and $70,000 of full loan charge-offs. Remediation work continues on these credits, with the goal of cash flow improvements with increased tenancy.

Allowance for Credit Losses on Loans and Unfunded Commitments

At June 30, 2025, our allowance for credit losses (“ACL”) on loans totaled $43.0 million, and our ACL on unfunded commitments, included in other liabilities, totaled $2.3 million. In the second quarter of 2025, we recorded provision expense of $2.5 million based on historical loss rate updates, our assessment of nonperforming loan metrics and trends, as well as estimated future credit losses. The second quarter of 2025 provision expense consisted of a $2.2 million provision for credit losses on loans, and a $277,000 provision for credit losses on unfunded commitments. The increase in ACL on unfunded commitments was primarily due to an adjustment to historical benchmark assumptions, such as funding rates and the period used to forecast those rates, within the ACL calculation. We recorded net charge-offs of $785,000 in the second quarter of 2025, primarily within the commercial portfolio. The first quarter of 2025 provision expense of $2.4 million consisted of a $2.3 million provision for credit losses on loans, and $115,000 provision for credit losses on unfunded commitments. We recorded net charge-offs of $4.4 million in the first quarter of 2025. In the second quarter of 2024, we recorded a provision expense of $3.8 million, which consisted of a $3.9 million provision for credit losses on loans and a $199,000 reversal of provision for credit losses on unfunded commitments. We recorded net charge-offs of $5.8 million in the second quarter of 2024. Our ACL on loans to total loans was 1.1% as of June 30, 2025, March 31, 2025, and June 30, 2024.

The ACL on unfunded commitments totaled $2.3 million as of June 30, 2025, $2.0 million as of March 31, 2025, and $2.5 million as of June 30, 2024.

Net Charge-off Summary


Loan charge–offs, net of recoveries	Quarters Ended
(Dollars in thousands)	June 30,		% of	March 31,		% of	June 30,		% of
	2025		Total ^2^	2025		Total ^2^	2024		Total ^2^
Commercial	$	1,093	139.2	$	3,414	78.4	$	(19)	(0.3)
Leases		(3)	(0.4)		93	2.1		81	1.4
Commercial real estate – Investor		(14)	(1.8)		(14)	(0.3)		4,560	78.7
Commercial real estate – Owner occupied		(1)	(0.1)		39	0.9		1,162	20.1
Construction		(337)	(42.9)		821	18.9		-	-
Residential real estate – Investor		(2)	(0.3)		(2)	-		(3)	(0.1)
Residential real estate – Owner occupied		(8)	(1.0)		(30)	(0.7)		(9)	(0.2)
HELOC		(10)	(1.3)		(12)	(0.3)		(15)	(0.3)
Other^1^		67	8.6		44	1.0		37	0.7
Net charge–offs / (recoveries)	$	785	100.0	$	4,353	100.0	$	5,794	100.0

^1^Other class includes consumer loans and overdrafts.

^2^^^Represents the percentage of net charge-offs attributable to each category of loans.

Gross charge-offs for the second quarter of 2025 were $1.2 million, compared to $4.5 million for the first quarter of 2025 and $6.0 million for the second quarter of 2024. Gross recoveries were $447,000 for the second quarter of 2025, compared to $176,000 for the first quarter of 2025, and $217,000 for the second quarter of 2024. Continued recoveries are indicative of the ongoing aggressive efforts by management to effectively manage and resolve prior charge-offs, however, recoveries cannot be forecasted or expected at the same pace in the future.

Deposits

Total deposits were $4.80 billion at June 30, 2025, a decrease of $54.4 million, or 1.1%, compared to $4.85 billion at March 31, 2025, primarily due to decreases in savings accounts of $23.2 million, NOW accounts of $11.8 million, demand deposits of $9.6 million and time deposits of $10.4 million. The bulk of the linked quarter decline occurred in June.

Total quarterly average deposits for the year over year period increased $274.0 million, or 6.0%, driven by an increase in average time deposits of $85.2 million, NOW and money markets combined of $224.4 million, and savings accounts of $4.7 million, partially offset by decreases in our average demand deposits of $40.3 million. The overall increase in quarterly average deposits for the year over year period was due to the acquisition of FRME branches in December 2024. During the second quarter of 2025, newly assumed FRME time deposits experienced run-off, but at a slower rate than the prior quarter. Additionally, our legacy portfolio also experienced run-off from rate sensitive deposits and seasonality from tax payments.

Borrowings

As of June 30, 2025, and March 31, 2025, we had no other short-term borrowings, compared to $330.0 million as of June 30, 2024, all of which were short-term FHLB advances. The large decrease in short-term FHLB advances is due to an influx of cash resulting from the acquisition of the five FRME branches on December 6, 2024, which allowed us to utilize the purchased deposits for lower cost funding.

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 taxable equivalent basis, and our efficiency ratio calculations on a taxable equivalent basis. The net interest margin fully taxable equivalent 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 noninterest expense presentation on page 7.

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 that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable 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 17 provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP equivalent.

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 periods, such as “positioning” or “integration”. Examples of forward-looking statements include, but are not limited to, statements regarding the economic outlook, balance sheet growth, building capital, and statements regarding the anticipated strategic and financial benefits of the merger with Bancorp Financial, including integration progress and competitive positioning. 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, (1) 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; (2) 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; (3) changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action; (4) risks related to pending or future acquisitions, if any, including execution and integration risks; (5) 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; (6) changes in interest rates, which has 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; (7) elevated inflation which causes adverse risk to the overall economy, and could indirectly pose challenges to our clients and to our business; and (8) 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 from widespread cybersecurity incidents. Additional risks and uncertainties are contained in the “Risk Factors” and forward-looking statements disclosure in our most recent Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q. The inclusion of this forward-looking information should not be construed as a representation by us or any person that future events, plans, or expectations contemplated by us will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Conference Call

We will host a call on Thursday, July 24, 2025, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss our second quarter 2025 financial results. Investors may listen to our call via telephone by dialing 888-506-0062, using Entry Code: 566890. Investors should call into the dial-in number set forth above at least 10 minutes prior to the scheduled start of the call.

A replay of the call will be available until 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on July 31, 2025, by dialing 877-481-4010, using Conference ID: 52648. 12

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands)


		(unaudited)
		June 30,		December 31,
	****	2025		2024
Assets
Cash and due from banks		$	63,484	$	52,175
Interest earning deposits with financial institutions			78,283		47,154
Cash and cash equivalents			141,767		99,329
Securities available-for-sale, at fair value			1,177,688		1,161,701
Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock			19,087		19,441
Loans held-for-sale			3,235		1,556
Loans			3,998,667		3,981,336
Less: allowance for credit losses on loans			42,990		43,619
Net loans			3,955,677		3,937,717
Premises and equipment, net			85,702		87,311
Other real estate owned			6,486		21,617
Mortgage servicing rights, at fair value			9,680		10,374
Goodwill			93,232		93,260
Core deposit intangible			19,972		22,031
Bank-owned life insurance (“BOLI”)			114,399		112,751
Deferred tax assets, net			20,395		26,619
Other assets			53,974		55,670
Total assets		$	5,701,294	$	5,649,377

Liabilities
Deposits:
Noninterest bearing demand		$	1,704,083	$	1,704,920
Interest bearing:
Savings, NOW, and money market			2,400,235		2,315,134
Time			694,121		748,677
Total deposits			4,798,439		4,768,731
Securities sold under repurchase agreements			47,252		36,657
Other short-term borrowings			-		20,000
Junior subordinated debentures			25,774		25,773
Subordinated debentures			59,510		59,467
Other liabilities			51,670		67,715
Total liabilities			4,982,645		4,978,343

Stockholders’ Equity
Common stock			45,094		44,908
Additional paid-in capital			206,207		205,284
Retained earnings			505,419		469,165
Accumulated other comprehensive loss, net			(37,426)		(47,748)
Treasury stock			(645)		(575)
Total stockholders’ equity			718,649		671,034
Total liabilities and stockholders’ equity		$	5,701,294	$	5,649,377

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(In thousands, except share data)


		(unaudited)						(unaudited)
		Three Months Ended June 30,						Six Months Ended June 30,
	****	2025		****	2024		****	2025		****	2024
Interest and dividend income
Loans, including fees		$	61,954		$	62,151		$	123,549		$	124,824
Loans held-for-sale			39			19			61			33
Securities:
Taxable			9,959			8,552			19,186			16,644
Tax exempt			1,229			1,292			2,489			2,598
Dividends from FHLBC and FRBC stock			273			584			746			1,219
Interest bearing deposits with financial institutions			1,784			625			2,772			1,235
Total interest and dividend income			75,238			73,223			148,803			146,553
Interest expense
Savings, NOW, and money market deposits			5,606			4,317			10,519			8,354
Time deposits			4,508			4,961			9,337			9,002
Securities sold under repurchase agreements			56			83			124			169
Other short-term borrowings			-			3,338			17			7,895
Junior subordinated debentures			288			288			576			568
Subordinated debentures			546			546			1,092			1,092
Total interest expense			11,004			13,533			21,665			27,080
Net interest and dividend income			64,234			59,690			127,138			119,473
Provision for credit losses			2,500			3,750			4,900			7,250
Net interest and dividend income after provision for credit losses			61,734			55,940			122,238			112,223
Noninterest income
Wealth management			3,103			2,779			6,192			5,340
Service charges on deposits			2,788			2,508			5,507			4,923
Secondary mortgage fees			84			65			157			115
Mortgage servicing rights mark to market loss			(531)			(238)			(1,101)			(144)
Mortgage servicing income			472			513			952			1,001
Net gain on sales of mortgage loans			550			468			1,014			782
Securities gains, net			-			-			-			1
Change in cash surrender value of BOLI			690			820			1,188			1,992
Death benefit realized on BOLI			-			893			-			893
Card related income			2,716			2,577			5,128			4,953
Other income			1,026			742			2,062			1,772
Total noninterest income			10,898			11,127			21,099			21,628
Noninterest expense
Salaries and employee benefits			26,950			23,424			53,943			47,736
Occupancy, furniture and equipment			4,477			3,899			9,025			7,826
Computer and data processing			2,692			2,184			5,040			4,439
FDIC insurance			642			616			1,270			1,283
Net teller & bill paying			670			578			1,328			1,099
General bank insurance			328			312			658			621
Amortization of core deposit intangible			1,022			574			2,059			1,154
Advertising expense			320			472			487			664
Card related expense			1,489			1,323			2,869			2,600
Legal fees			388			238			860			464
Consulting & management fees			527			797			953			1,133
Other real estate expense, net			35			(87)			1,908			(41)
Other expense			3,879			3,547			7,524			7,140
Total noninterest expense			43,419			37,877			87,924			76,118
Income before income taxes			29,213			29,190			55,413			57,733
Provision for income taxes			7,391			7,299			13,761			14,530
Net income		$	21,822		$	21,891		$	41,652		$	43,203

Basic earnings per share		$	0.49		$	0.48		$	0.93		$	0.96
Diluted earnings per share			0.48			0.48			0.91			0.95
Dividends declared per share			0.06			0.05			0.12			0.10


Ending common shares outstanding	45,056,183	44,849,591	45,056,183	44,849,591
Weighted-average basic shares outstanding	45,053,650	44,846,848	45,010,925	44,802,704
Weighted-average diluted shares outstanding	45,839,465	45,682,239	45,780,612	45,603,062

Old Second Bancorp, Inc. and Subsidiaries

Quarterly Consolidated Average Balance

(In thousands, unaudited)


		2025							2024
Assets	****	2nd Qtr		****	1st Qtr		****	4th Qtr		3rd Qtr		****	2nd Qtr		1st Qtr
Cash and due from banks		$	47,875		$	52,550		$	54,340	$	54,279		$	54,286	$	54,533
Interest earning deposits with financial institutions			166,366			97,645			49,757		48,227			50,740		48,088
Cash and cash equivalents			214,241			150,195			104,097		102,506			105,026		102,621

Securities available-for-sale, at fair value			1,190,123			1,181,257			1,180,024		1,173,948			1,179,430		1,182,888
FHLBC and FRBC stock			19,200			19,441			27,493		30,268			27,574		31,800
Loans held-for-sale			2,375			1,343			2,027		1,557			1,050		746
Loans			3,958,275			3,957,730			4,001,014		3,965,160			3,957,454		4,018,631
Less: allowance for credit losses on loans			41,544			43,543			45,040		42,683			43,468		44,295
Net loans			3,916,731			3,914,187			3,955,974		3,922,477			3,913,986		3,974,336

Premises and equipment, net			87,081			87,709			84,364		82,977			82,332		80,493
Other real estate owned			2,099			13,388			20,136		7,471			4,657		5,123
Mortgage servicing rights, at fair value			9,856			10,211			10,060		10,137			10,754		10,455
Goodwill			93,232			93,253			88,320		86,477			86,477		86,477
Core deposit intangible			20,462			21,490			12,799		9,768			10,340		10,913
Bank-owned life insurance ("BOLI")			113,326			112,848			112,243		110,901			110,440		109,867
Deferred tax assets, net			23,549			25,489			23,549		25,666			32,969		31,323
Other assets			44,431			43,506			43,572		50,989			50,423		49,681
Total other assets			394,036			407,894			395,043		384,386			388,392		384,332
Total assets		$	5,736,706		$	5,674,317		$	5,664,658	$	5,615,142		$	5,615,458	$	5,676,723

Liabilities
Deposits:
Noninterest bearing demand		$	1,729,287		$	1,703,382		$	1,712,106	$	1,691,450		$	1,769,543	$	1,819,476
Interest bearing:
Savings, NOW, and money market			2,424,947			2,370,408			2,195,608		2,142,307			2,195,898		2,202,485
Time			695,946			725,314			692,001		651,663			610,705		558,463
Total deposits			4,850,180			4,799,104			4,599,715		4,485,420			4,576,146		4,580,424

Securities sold under repurchase agreements			35,419			34,529			39,982		45,420			37,430		30,061
Other short-term borrowings			-			1,444			204,783		305,489			242,912		332,198
Junior subordinated debentures			25,773			25,773			25,773		25,773			25,773		25,773
Subordinated debentures			59,500			59,478			59,457		59,436			59,414		59,393
Other liabilities			59,580			70,411			67,067		54,453			68,530		60,024
Total liabilities			5,030,452			4,990,739			4,996,777		4,975,991			5,010,205		5,087,873

Stockholders' equity
Common stock			45,094			45,028			44,908		44,908			44,908		44,787
Additional paid-in capital			205,706			205,433			205,356		204,558			203,654		202,688
Retained earnings			497,224			479,011			462,631		443,435			424,262		405,201
Accumulated other comprehensive loss			(41,080)			(44,853)			(44,251)		(52,907)			(66,682)		(63,365)
Treasury stock			(690)			(1,041)			(763)		(843)			(889)		(461)
Total stockholders' equity			706,254			683,578			667,881		639,151			605,253		588,850
Total liabilities and stockholders' equity		$	5,736,706		$	5,674,317		$	5,664,658	$	5,615,142		$	5,615,458	$	5,676,723

Total Earning Assets		$	5,336,339		$	5,257,416		$	5,260,315	$	5,219,160		$	5,216,248	$	5,282,153
Total Interest Bearing Liabilities			3,241,585			3,216,946			3,217,604		3,230,088			3,172,132		3,208,373

Old Second Bancorp, Inc. and Subsidiaries

Quarterly Consolidated Statements of Income

(In thousands, except per share data, unaudited)



	2025						2024
	2nd Qtr		****	1st Qtr		****	4th Qtr		3rd Qtr		****	2nd Qtr		1st Qtr
Interest and Dividend Income
Loans, including fees	$	61,954		$	61,595		$	63,967	$	64,528		$	62,151	$	62,673
Loans held-for-sale		39			22			34		27			19		14
Securities:
Taxable		9,959			9,227			8,899		9,113			8,552		8,092
Tax exempt		1,229			1,260			1,275		1,291			1,292		1,306
Dividends from FHLB and FRBC stock		273			473			562		497			584		635
Interest bearing deposits with financial institutions		1,784			988			542		616			625		610
Total interest and dividend income		75,238			73,565			75,279		76,072			73,223		73,330
Interest Expense
Savings, NOW, and money market deposits		5,606			4,913			4,652		4,860			4,317		4,037
Time deposits		4,508			4,829			5,606		5,539			4,961		4,041
Securities sold under repurchase agreements		56			68			75		93			83		86
Other short-term borrowings		-			17			2,527		4,185			3,338		4,557
Junior subordinated debentures		288			288			289		270			288		280
Subordinated debentures		546			546			546		547			546		546
Total interest expense		11,004			10,661			13,695		15,494			13,533		13,547
Net interest and dividend income		64,234			62,904			61,584		60,578			59,690		59,783
Provision for credit losses		2,500			2,400			3,500		2,000			3,750		3,500
Net interest and dividend income after provision for credit losses		61,734			60,504			58,084		58,578			55,940		56,283
Noninterest Income
Wealth management		3,103			3,089			3,299		2,787			2,779		2,561
Service charges on deposits		2,788			2,719			2,657		2,646			2,508		2,415
Secondary mortgage fees		84			73			88		84			65		50
Mortgage servicing rights mark to market (loss) gain		(531)			(570)			385		(964)			(238)		94
Mortgage servicing income		472			480			475		466			513		488
Net gain on sales of mortgage loans		550			464			516		507			468		314
Securities (losses) gains, net		-			-			-		(1)			-		1
Change in cash surrender value of BOLI		690			498			767		860			820		1,172
Death benefit realized on BOLI		-			-			-		12			893		-
Card related income		2,716			2,412			2,572		2,589			2,577		2,376
Other income		1,026			1,036			851		1,595			742		1,030
Total noninterest income		10,898			10,201			11,610		10,581			11,127		10,501
Noninterest Expense
Salaries and employee benefits		26,950			26,993			25,613		24,676			23,424		24,312
Occupancy, furniture and equipment		4,477			4,548			4,457		3,876			3,899		3,927
Computer and data processing		2,692			2,348			2,659		2,375			2,184		2,255
FDIC insurance		642			628			628		632			616		667
Net teller & bill paying		670			658			575		570			578		521
General bank insurance		328			330			327		320			312		309
Amortization of core deposit intangible		1,022			1,037			716		570			574		580
Advertising expense		320			167			280		299			472		192
Card related expense		1,489			1,380			1,497		1,458			1,323		1,277
Legal fees		388			472			660		202			238		226
Consulting & management fees		527			426			883		480			797		336
Other real estate expense, net		35			1,873			2,019		242			(87)		46
Other expense		3,879			3,645			4,008		3,608			3,547		3,593
Total noninterest expense		43,419			44,505			44,322		39,308			37,877		38,241
Income before income taxes		29,213			26,200			25,372		29,851			29,190		28,543
Provision for income taxes		7,391			6,370			6,262		6,900			7,299		7,231
Net income	$	21,822		$	19,830		$	19,110	$	22,951		$	21,891	$	21,312

Basic earnings per share (GAAP)	$	0.49		$	0.44		$	0.42	$	0.52		$	0.48	$	0.48
Diluted earnings per share (GAAP)		0.48			0.43			0.42		0.50			0.48		0.47
Dividends paid per share		0.06			0.06			0.06		0.05			0.05		0.05

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:


	Quarters Ended
	June 30,			March 31,		June 30,
	2025		****	2025		2024
Net Income
Income before income taxes (GAAP)	$	29,213		$	26,200	$	29,190
Pre-tax income adjustments:
Death benefit related to BOLI		-			-		(893)
MSR losses		531			570		238
Merger related costs, net of losses/(gains) on branch sales		810			454		-
Adjusted net income before taxes		30,554			27,224		28,535
Taxes on adjusted net income		7,730			6,619		7,359
Adjusted net income (non-GAAP)	$	22,824		$	20,605	$	21,176

Basic earnings per share (GAAP)	$	0.49		$	0.44	$	0.48
Diluted earnings per share (GAAP)		0.48			0.43		0.48
Adjusted basic earnings per share (non-GAAP)		0.50			0.46		0.46
Adjusted diluted earnings per share (non-GAAP)		0.50			0.45		0.46


	Quarters Ended
	June 30,			March 31,			June 30,
	2025		****	2025			2024
Net Interest Margin
Interest income (GAAP)	$	75,238		$	73,565		$	73,223
Taxable-equivalent adjustment:
Loans		9			9			10
Securities		327			335			344
Interest income (TE)		75,574			73,909			73,577
Interest expense (GAAP)		11,004			10,661			13,533
Net interest income (TE)	$	64,570		$	63,248		$	60,044
Net interest income (GAAP)	$	64,234		$	62,904		$	59,690
Average interest earning assets	$	5,336,339		$	5,257,416		$	5,216,248
Net interest margin (TE)		4.85	%		4.88	%		4.63	%
Net interest margin (GAAP)		4.83	%		4.85	%		4.60	%


	GAAP									Non-GAAP
		Three Months Ended									Three Months Ended
	June 30,			March 31,			June 30,			June 30,			March 31,			June 30,
	2025			2025			2024			2025			2025			2024
Efficiency Ratio / Adjusted Efficiency Ratio

Noninterest expense	$	43,419		$	44,505		$	37,877		$	43,419		$	44,505		$	37,877
Less amortization of core deposit		1,022			1,037			574			1,022			1,037			574
Less other real estate expense, net		35			1,873			(87)			35			1,873			(87)
Less merger related costs, net of losses on branch sales		N/A			N/A			N/A			810			454			-
Noninterest expense less adjustments	$	42,362		$	41,595		$	37,390		$	41,552		$	41,141		$	37,390

Net interest income	$	64,234		$	62,904		$	59,690		$	64,234		$	62,904		$	59,690
Taxable-equivalent adjustment:
Loans		N/A			N/A			N/A			9			9			10
Securities		N/A			N/A			N/A			327			335			344
Net interest income including adjustments		64,234			62,904			59,690			64,570			63,248			60,044
Noninterest income		10,898			10,201			11,127			10,898			10,201			11,127
Less death benefit related to BOLI		-			-			893			-			-			893
Less MSRs mark to market losses		(531)			(570)			(238)			(531)			(570)			(238)
Taxable-equivalent adjustment:
Change in cash surrender value of BOLI		N/A			N/A			N/A			184			132			456
Noninterest income including adjustments		11,429			10,771			10,472			11,613			10,903			10,928

Net interest income including adjustments plus noninterest income including adjustments	$	75,663		$	73,675		$	70,162		$	76,183		$	74,151		$	70,972
Efficiency ratio / Adjusted efficiency ratio		55.99	%		56.46	%		53.29	%		54.54	%		55.48	%		52.68	%

N/A - Not applicable.


	Quarters Ended
	June 30,			March 31,			June 30,
	2025			2025			2024
Return on Average Tangible Common Equity Ratio

Net income (GAAP)	$	21,822		$	19,830		$	21,891

Income before income taxes (GAAP)	$	29,213		$	26,200		$	29,190
Pre-tax income adjustments:
Amortization of core deposit intangibles		1,022			1,037			574
Net income, excluding intangibles amortization, before taxes		30,235			27,237			29,764
Taxes on net income, excluding intangible amortization, before taxes		7,650			6,622			7,443
Net income, excluding intangibles amortization (non-GAAP)	$	22,585		$	20,615		$	22,321


Total Average Common Equity	$	706,254			683,578		$	605,253
Less Average goodwill and intangible assets		113,694			114,743			96,817
Average tangible common equity (non-GAAP)	$	592,560		$	568,835		$	508,436


Return on average common equity (GAAP)		12.39	%		11.76	%		14.55	%
Return on average tangible common equity (non-GAAP)		15.29	%		14.70	%		17.66	%

1<br>Loan Portfolio Disclosures<br>AS OF JUNE 30, 2025<br>Exhibit 99.2
2<br>Portfolio Segment Outstanding Classified Allowance<br>Commercial (incl. Leases) $1,243 $25 0.76%<br>Commercial Real Estate Investor $1,119 $15 1.51%<br>Commercial Real Estate Owner Occ. $652 $51 1.19%<br>Construction $252 $2 1.14%<br>Residential Real Estate $272 $3 0.92%<br>Multifamily $334 $1 0.51%<br>HELOC $111 $1 1.59%<br>Other $16 - 0.33%<br>Total $3,999 $98 1.08%<br>Construction<br>7%<br>Commercial RE<br>Investor<br>28%<br>Commercial RE<br>Owner Occ.<br>16%<br>Commercial<br>(inc. Leases)<br>31%<br>Multifamily<br>8%<br>Residential Real<br>Estate<br>7%<br>HELOC<br>3%<br>Loan Portfolio Composition (in millions)<br>Q2 2025 Loan Portfolio Disclosures<br>Total Loans and Allowance for Credit Losses Trend (in millions)<br>$4,043 $3,969 $3,977 $3,991 $3,981 $3,940 $3,999<br>$44 $44 $42 $44 $44 $42 $43<br> $25<br> $30<br> $35<br> $40<br> $45<br> $3,500<br> $3,600<br> $3,700<br> $3,800<br> $3,900<br> $4,000<br> $4,100<br>12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025<br>Total Loans ACL
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3<br>Criticized Loans (in millions)<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>5.00%<br>6.00%<br>7.00%<br>8.00%<br> $-<br> $50<br> $100<br> $150<br> $200<br> $250<br> $300<br> $350<br>9/30/21 12/31/21 3/31/22 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<br>Office CRE Healthcare Other Criticized Loans/ Total Loans<br>Q2 2025 Loan Portfolio Disclosures<br>$3,603 $6,920 $8,202<br>$2,256 $1,802 $4,988<br>$1,519<br>$19,361<br>$1,076<br>$1,498<br> $-<br> $5,000<br> $10,000<br> $15,000<br> $20,000<br> $25,000<br>3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25<br>OREO OREO Under Contract<br>OREO (in thousands)
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4<br>Loan Portfolio Composition by Origination (in millions)<br>Maturity of Fixed-Rate CRE loans by quarter (in millions)<br>Purchased Portfolio Segment Outstanding SNC Classified<br>Multifamily $72 - -<br>Construction $68 - $7<br>Manufacturing C&I $66 - -<br>Industrial CRE $37 $28 -<br>Office CRE $29 - $2<br>Mixed Use CRE $12 - -<br>Arts, Entertainment C&I $10 $10 -<br>Other (under $10 million) $20 - -<br>Total Purchased $314 $38 $9<br>Organic<br>92% Purchased<br>8%<br>$30 $25 $36 $39 $42<br>$66 $21 $46 $35<br>$7<br>$23<br>$36<br>$13<br>$10 $4<br>$6<br>$26<br>$9<br> $-<br> $25<br> $50<br> $75<br> $100<br> $125<br> $150<br>Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026<br>Non-Owner CRE Owner CRE Multifamily<br>Q2 2025 Loan Portfolio Disclosures
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5<br>Property Type Outstanding LTV Classified Allowance<br>Retail $312 55% - 1.07%<br>Industrial $271 53% - 1.07%<br>Office (1) $202 61% $2 3.24%<br>Senior Living $68 54% $13 1.74%<br>Hotel $67 52% - 1.30%<br>Parking Garage $65 50% - 0.94%<br>Mixed-Use $48 61% - 1.00%<br>Gas Station/ Convenience $46 51% - 0.96%<br>Other (under $20 million) $40 50% - 1.08%<br>Total $1,119 55% $15 1.51%<br>Commercial Real Estate Investor Portfolio Composition (in millions)<br>Retail<br>28%<br>Office<br>18% Industrial<br>24%<br>Parking Garage<br>6%<br>Hotel<br>6%<br>Senior Living<br>6% Other (under<br>$50 million)<br>12%<br>Illinois<br>55%<br>Wisconsin<br>5%<br>Texas<br>7%<br>North Carolina<br>4%<br>Pennsylvania<br>3%<br>Oklahoma<br>3%<br>Other (under $30<br>million)<br>23%<br>State Outstanding LTV Classified<br>Illinois $612 56% $2<br>Texas $76 50% -<br>Wisconsin $60 62% -<br>North Carolina $40 50% -<br>Pennsylvania $35 50% -<br>Oklahoma $35 62% -<br>Florida $27 40% -<br>Other (under $25 million) $234 53% $13<br>Total $1,119 55% $15<br>Q2 2025 Loan Portfolio Disclosures<br>(1) Due to the insignificant classified loan balance in the office portfolio we have<br>excluded the detail slide from the presentation.
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6<br>Industry Outstanding Classified Allowance<br>Health Care, Social Services $248 $38 2.35%<br>Other Services $71 $5 0.49%<br>Retail Trade $60 - 0.24%<br>Manufacturing $56 $4 0.97%<br>Real Estate, Leasing $49 - 0.29%<br>Wholesale Trade $29 - 0.21%<br>Arts, Entertainment $25 - 0.71%<br>Accommodation, Food Service $21 $1 1.74%<br>Other (under $20 million) $93 $3 0.48%<br>Total $652 $51 1.19%<br>Manufacturing<br>9%<br>Retail Trade<br>9%<br>Real Estate,<br>Leasing<br>7%<br>Healthcare<br>38%<br>Other Services<br>11%<br>Other (under $30<br>million)<br>26%<br>Commercial Real Estate Owner-Occupied Portfolio Composition (in millions)<br>Health Care, Social Outstanding Classified Allowance<br>Assisted Living $134 $38 3.70%<br>Skilled Nursing $49 - 1.23%<br>Memory Care $43 - 0.92%<br>Child Care $6 - 0.21%<br>Independent Living $5 - 0.21%<br>Other (under $5 million) $11 - 0.26%<br>Total $248 $38 2.35%<br>Skilled<br>Nursing<br>20%<br>Assisted<br>Living<br>54%<br>Memory Care<br>17%<br>Independent<br>2%<br>Child Care<br>2% Other (under $5 million)<br>5%<br>Q2 2025 Loan Portfolio Disclosures
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7<br>Commercial & Industrial Outstanding Classified<br>Manufacturing $427 $16<br>Construction $154 $1<br>Professional $122 -<br>Transportation $113 $1<br>Administrative, Waste Service $80 $2<br>Wholesale Trade $56 $5<br>Health Care, Social Services $62 -<br>Real Estate, Leasing $48 -<br>Finance, Insurance $55 -<br>Agriculture, Forestry $25 -<br>Retail Trade $20 -<br>Other (under $20 million) $81 -<br>Total $1,243 $25<br>Commercial (including Leases) Portfolio Composition (in millions)<br>Construction<br>12%<br>Manufacturing<br>34%<br>Wholesale Trade<br>5%<br>Transportation<br>9%<br>Finance, Insurance<br>4%<br>Professional<br>10%<br>Administration,<br>Waste Service<br>6%<br>Health Care, Social<br>Services<br>5% Other (under $50<br>million)<br>15%<br>Commercial Revolving Line Utilization (outstanding in millions)<br>$683 $675 $641 $654 $677 $653 $587 $574<br>54% 53% 53%<br>55% 56% 55%<br>52% 53%<br>30%<br>35%<br>40%<br>45%<br>50%<br>55%<br>60%<br> $400<br> $450<br> $500<br> $550<br> $600<br> $650<br> $700<br>9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25<br>Q2 2025 Loan Portfolio Disclosures
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8<br>Net Charge-offs (Recoveries) (in thousands)<br>Portfolio 9/30/2024 (Q) 12/31/2024 (Q) 3/31/2025 (Q) 6/30/2025 (Q) 6/30/2025 (TTM) NCO(R) %<br>Commercial (incl. Leases) $36 $8,583 $3,507 $1,090 $13,216 1.06%<br>Commercial Real Estate Investor ($149) ($173) ($14) ($14) ($350) (0.03%)<br>Commercial Real Estate Owner Occupied ($44) ($3,739) $39 ($1) ($3,745) (0.57%)<br>Health Care - ($3,531) - - ($3,531) (1.81%)<br>Construction - - $821 ($338) $483 0.19%<br>Residential Real Estate ($29) $232 ($32) ($9) $162 0.32%<br>Multifamily - - - - - 0.00%<br>HELOC ($14) ($45) ($12) ($11) ($82) (0.02%)<br>Other $45 $37 $44 $68 $194 0.17%<br>Total ($155) $4,895 $4,353 $785 $9,878 0.25%<br>6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025<br>Beginning ACL Balance $44,113 $42,269 $44,422 $43,619 $41,551<br>Provision $3,950 $1,998 $4,092 $2,285 $2,224<br>Net Charge-off (Recovery) $5,794 ($155) $4,895 $4,353 $785<br>Ending ACL Balance $42,269 $44,422 $43,619 $41,551 $42,990<br>Allowance for Credit Losses (1) (in thousands)<br>Q2 2025 Loan Portfolio Disclosures<br>(1) The Allowance for Credit Losses presented excludes the Allowance for Unfunded Commitments, which totaled $2.3 million as of June 30, 2025 and is reported within other<br>liabilities on the Statements of Condition.
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