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): January 21, 2026

(Exact name of registrant as specified in its charter)


Delaware	000-10537	36-3143493
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

37 South River Street Aurora , Illinois **** 60507 (Address of principal executive offices) (Zip code)

(630) 892-0202(Registrant’s telephone number, including area code)

N/A

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

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

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

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

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

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

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

<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 January 21, 2026, Old Second Bancorp, Inc. (the “Company’s”) issued a press release announcing its financial results for the fourth quarter ended December 31, 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 January 21, 2026

99.2		Loan Portfolio Disclosures for Old Second Bancorp, Inc. dated December 31, 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: January 21, 2026	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	January 21, 2026
	(630) 906-5484

Old Second Bancorp, Inc. Reports Fourth Quarter 2025 Net Income of $28.8 Million,

or $0.54 per Diluted Share

AURORA, IL, January 21, 2026 – Old Second Bancorp, Inc. (the “Company,” “Old Second,” “we,” “us,” and “our”) (NASDAQ: OSBC), the parent company of Old Second National Bank (the “Bank”), today announced financial results for the fourth quarter of 2025. Our net income was $28.8 million, or $0.54 per diluted share, for the fourth quarter of 2025, compared to net income of $9.9 million, or $0.18 per diluted share, for the third quarter of 2025, and net income of $19.1 million, or $0.42 per diluted share, for the fourth quarter of 2024.

Adjusted net income, a non-GAAP financial measure that excludes certain nonrecurring items, as applicable, was $30.8 million, or $0.58 per diluted share, for the fourth quarter of 2025, compared to $28.4 million, or $0.53 per diluted share, for the third quarter of 2025, and $20.0 million, or $0.44 per diluted share, for the fourth quarter of 2024. The pre-tax adjusting items impacting the fourth quarter of 2025 included the exclusion of $428,000 of mortgage servicing rights (“MSRs”) mark to market losses, and $2.3 million of transaction-related expenses, net of gains on branch sales, primarily from our acquisition of Bancorp Financial, Inc (“Bancorp Financial”). The adjusting items impacting the third quarter of 2025 included the exclusion of $13.2 million of day two provision for credit losses recorded with our acquisition of Bancorp Financial, $389,000 of MSRs mark to market losses, $430,000 of death benefits realized on BOLI, and $11.5 million of transaction-related expenses, net of gains on branch sales, primarily from our acquisition of Bancorp Financial. The adjusting items impacting the fourth quarter of 2024 included the exclusion of $385,000 of MSRs mark to market gains and $1.5 million of transaction-related expenses, net of losses on branch sales, primarily from our purchase of five branches from First Merchants Bank (“FRME”). See the discussion entitled “Non-GAAP Presentations” below and the tables beginning on page 18 that provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Net income increased $18.9 million in the fourth quarter of 2025 compared to the third quarter of 2025 driven by lower acquisition related costs. The increase was primarily due to a $16.7 million decrease in provision for credit losses, as $3.0 million of provision expense was recorded in the fourth quarter of 2025, compared to $13.2 million of a day two provision from our acquisition of Bancorp Financial and $6.5 million of provision expense in the prior linked quarter. In addition, there was a $2.0 million decrease in interest expense driven by the decrease in interest paid on deposits, and a $10.2 million decrease in noninterest expense in the fourth quarter of 2025, compared to the prior linked quarter, mainly due to the timing of costs incurred related to our acquisition of Bancorp Financial. The increases to the fourth quarter of 2025’s net income, as compared to the prior quarter, were partially offset by a $1.8 million decrease in interest and dividend income, primarily due to declines in rates and volume on securities coupled with a decline on yields, partially offset by an increase in volume in the loan portfolio, a $955,000 decrease in noninterest income, and a $7.3 million increase in provision for income taxes. Net income increased $9.7 million in the fourth quarter of 2025 compared to the fourth quarter of 2024, primarily due to an increase of $27.0 million in interest and dividend income stemming from our acquisition of Bancorp Financial. The increase in net income compared to the prior year like quarter was partially offset by a $5.6 million increase in interest expense and an $8.6 million increase in noninterest expense, both of which were driven by the Bancorp Financial acquisition, as well as a $4.2 million increase in provision for income taxes due to higher pretax income.

Operating Results

●	Fourth quarter 2025 net income was $28.8 million, reflecting an $18.9 million increase from the third quarter of 2025, and an increase of $9.7 million from the fourth quarter of 2024. Adjusted net income, as defined above, was $30.8 million for the fourth quarter of 2025, an increase of $2.4 million from adjusted net income for the third quarter of 2025, and an increase of $10.8 million from adjusted net income for the fourth quarter of 2024.
●	Net interest and dividend income was $83.1 million for the fourth quarter of 2025, reflecting an increase of $276,000, or 0.3%, from the third quarter of 2025, and an increase of $21.5 million, or 34.9%, from the fourth quarter of 2024.
---	---
●	We recorded a net provision for credit losses of $3.0 million in the fourth quarter of 2025 compared to a net provision for credit losses of $19.7 million in the third quarter of 2025 and net provision for credit losses of $3.5 million in the fourth quarter of 2024. Provision for credit loss expense in the third quarter of 2025 included the $13.2 million impact of the Bancorp Financial day two purchase accounting.
---	---
●	Noninterest income was $12.2 million for the fourth quarter of 2025, a decrease of $955,000, or 7.3%, compared to $13.1 million for the third quarter of 2025, and an increase of $544,000, or 4.7%, compared to $11.6 million for the fourth quarter of 2024.
---	---
●	Noninterest expense was $52.9 million for the fourth quarter of 2025, a decrease of $10.2 million, or 16.2%, compared to $63.2 million for the third quarter of 2025, and an increase of $8.6 million, or 19.4%, compared to $44.3 million for the fourth quarter of 2024.
---	---
●	We had a provision for income tax of $10.5 million for the fourth quarter of 2025, compared to a provision for income tax of $3.2 million for the third quarter of 2025 and a provision for income tax of $6.3 million for the fourth quarter of 2024. The effective tax rate for each of the periods presented was 26.7%, 24.5%, and 24.7%, respectively. The effective tax rate for the fourth quarter 2025 exceeded both prior periods presented as we determined certain acquisition costs related to the Bancorp Financial transaction were not fully deductible.
---	---
●	On January 20, 2026, our Board of Directors declared a cash dividend of $0.07 per share of common stock, payable on February 9, 2026, to stockholders of record as of January 30, 2026.
---	---

Financial Highlights


	Quarters Ended
(Dollars in thousands)	December 31,			September 30,			December 31,
	2025			2025			2024
Balance sheet summary
Total assets	$	6,902,675		$	6,991,754		$	5,649,377
Total securities available-for-sale		1,090,523			1,157,480			1,161,701
Total loans		5,252,131			5,264,505			3,981,336
Total deposits		5,596,069			5,760,250			4,768,731
Total liabilities		6,005,907			6,125,069			4,978,343
Total equity		896,768			866,685			671,034

Total tangible assets	$	6,749,787		$	6,836,565		$	5,534,086
Total tangible equity		743,880			711,496			555,743

Income statement summary
Net interest income	$	83,051		$	82,775		$	61,584
Provision for credit losses		3,000			19,653			3,500
Noninterest income		12,154			13,109			11,610
Noninterest expense		52,935			63,163			44,322
Net income		28,787			9,871			19,110
Effective tax rate		26.69	%		24.46	%		24.68	%

Profitability ratios
Return on average assets (ROAA)		1.64	%		0.56	%		1.34	%
Return on average equity (ROAE)		12.92			4.61			11.38
Net interest margin (tax-equivalent)		5.09			5.05			4.68
Efficiency ratio		53.98			64.46			57.12
Return on average tangible common equity (ROATCE) ^1^		16.15			6.16			13.79
Tangible common equity to tangible assets (TCE/TA)		11.02			10.41			10.04

Per share data
Diluted earnings per share	$	0.54		$	0.18		$	0.42
Tangible book value per share		14.12			13.51			12.38

Company capital ratios^2^
Common equity tier 1 capital ratio		12.99	%		12.44	%		12.82	%
Tier 1 risk-based capital ratio		13.41			12.85			13.34
Total risk-based capital ratio		15.66			15.10			15.54
Tier 1 leverage ratio		11.70			11.21			11.30

Bank capital ratios ^2, 3^
Common equity tier 1 capital ratio		13.17	%		13.14	%		12.89	%
Tier 1 risk-based capital ratio		13.17			13.14			12.89
Total risk-based capital ratio		14.42			14.39			13.82
Tier 1 leverage ratio		11.49			11.45			10.90

^1^^^See the discussion entitled “Non-GAAP Presentations” below and the table on page 19 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.

Chairman, President and Chief Executive Officer Jim Eccher said “Old Second concluded a great year with an extremely strong fourth quarter. Core earnings have exhibited very strong growth in recent periods and profitability remains among the best in the industry with return on average assets of 1.75% and return on average tangible equity of 17.23%, both excluding acquisition related purchase accounting and deal costs. The tax equivalent net interest margin has remained resilient and impressive at 5.09% and the adjusted efficiency ratio was a very healthy 51.28%. This strong bottom-line performance and a well-positioned balance sheet drove an increase in the tangible common equity capital ratio to 11.02% from 10.04% last year end and tangible book value per share increased by 14% in 2025 despite the dilution associated with a meaningful acquisition.”

“In summary, we are proud of the strength and sustainability of our performance, and with marginal spreads in loan and deposit markets improving, we are excited about the opportunities for additional growth in 2026. We believe we have exceptional balance sheet flexibility and the strategic positioning to capitalize on growth opportunities that may come our way in the near future. I would like to thank our team for their hard work and execution in 2025, including integrations and systems conversions and upgrades that have made us a much better Old Second. I could not be more excited about the things we can accomplish within the next year.” 3

Asset Quality & Earning Assets

●	Nonperforming loans, comprised of nonaccrual loans plus loans past due 90 days or more and still accruing, totaled $52.8 million at December 31, 2025, $48.0 million at September 30, 2025, and $30.3 million at December 31, 2024. Nonperforming loans, as a percent of total loans, was 1.0% at December 31, 2025, 0.9% at September 30, 2025, and 0.8% at December 31, 2024. The $4.8 million increase in the fourth quarter of 2025 for nonperforming loans is driven by a $13.8 million increase in nonaccrual loans due to inflows of $18.3 million, primarily related to two commercial real estate relationships totaling $14.9 million, partially offset by outflows of $4.5 million, which include $2.4 million of loans paid off and $2.1 million of partial principal reductions from payments and partial charge-offs on loans. The increase to nonaccrual loans was partially offset by a $9.0 million decrease to loans past due 90 days or more and still accruing, primarily comprised of two legacy relationships, one that was paid off in the fourth quarter of 2025 and another that was downgraded to nonaccrual.
●	Total loans were $5.25 billion at December 31, 2025, reflecting a decrease of $12.4 million compared to September 30, 2025 and an increase of $1.27 billion compared to December 31, 2024. The significant increase from December 31, 2024 is primarily driven by the $1.19 billion of loans acquired in our acquisition of Bancorp Financial. The decline in loans from September 30, 2025 is influenced by the seasonal reductions within the powersport portfolio. Based on historical data, the powersport portfolio shows much higher origination volume from March through September as compared to the remainder of the year. Excluding loans purchased from the Bancorp Financial acquisition, organic loan growth, net of paydowns, totaled $76.1 million, or 1.9%, compared to December 31, 2024 total loans. Average loans (including loans held-for-sale) for the fourth quarter of 2025 totaled $5.28 billion, reflecting an increase of $61.3 million from the third quarter of 2025, and an increase of $1.28 billion from the fourth quarter of 2024.
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●	Available-for-sale securities totaled $1.09 billion at December 31, 2025, compared to $1.16 billion at September 30, 2025 and $1.16 billion at December 31, 2024. The unrealized mark to market loss on securities totaled $43.1 million as of December 31, 2025, compared to $47.7 million as of September 30, 2025, and $68.6 million as of December 31, 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 December 31, 2025, we had security purchases of $7.8 million and security maturities, calls and paydowns of $78.9 million, compared to security purchases of $20.6 million, security sales of $7.5 million, excluding the sale of Bancorp Financial’s $117.6 million available-for-sale securities portfolio after the acquisition closed, and security maturities, calls and paydowns of $41.1 million during the quarter ended September 30, 2025. During the quarter ended December 31, 2024, we had security purchases of $84.9 million and $101.2 million of maturities, calls, and paydowns. We may continue to buy and sell strategically identified securities as opportunities arise.
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Net Interest Income


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

	Quarters Ended
	December 31, 2025						September 30, 2025						December 31, 2024
	Average			Income /		Rate	Average			Income /		Rate	Average			Income /		Rate
	Balance			Expense		%	Balance			Expense		%	Balance			Expense		%
Assets
Interest earning deposits with financial institutions	$	66,430		$	598	3.57	$	119,619		$	1,255	4.16	$	49,757		$	542	4.33
Securities:
Taxable		979,060			9,136	3.70		1,016,279			9,872	3.85		1,017,530			8,899	3.48
Non-taxable (TE)^1^		150,573			1,543	4.07		149,621			1,563	4.14		162,494			1,614	3.95
Total securities (TE)^1^		1,129,633			10,679	3.75		1,165,900			11,435	3.89		1,180,024			10,513	3.54
FHLBC and FRBC Stock		30,085			390	5.14		25,961			381	5.82		27,493			562	8.13
Loans and loans held-for-sale^1, 2^		5,278,643			90,969	6.84		5,217,349			91,342	6.95		4,003,041			64,012	6.36
Total interest earning assets		6,504,791			102,636	6.26		6,528,829			104,413	6.34		5,260,315			75,629	5.72
Cash and due from banks		52,040			-	-		51,357			-	-		54,340			-	-
Allowance for credit losses on loans		(73,718)			-	-		(72,354)			-	-		(45,040)			-	-
Other noninterest earning assets		477,064			-	-		491,421			-	-		394,928			-	-
Total assets	$	6,960,177					$	6,999,253					$	5,664,543

Liabilities and Stockholders' Equity
NOW accounts	$	682,729		$	816	0.47	$	668,439		$	825	0.49	$	573,271		$	644	0.45
Money market accounts		958,672			4,561	1.89		954,964			4,979	2.07		722,491			3,128	1.72
Savings accounts		1,123,208			2,529	0.89		1,175,011			3,239	1.09		899,846			880	0.39
Time deposits		1,179,966			8,665	2.91		1,347,455			10,896	3.21		692,001			5,606	3.22
Interest bearing deposits		3,944,575			16,571	1.67		4,145,869			19,939	1.91		2,887,609			10,258	1.41
Securities sold under repurchase agreements		23,464			45	0.76		33,382			60	0.71		39,982			75	0.75
Other short-term borrowings		159,565			1,644	4.09		25,978			308	4.70		204,783			2,527	4.91
Junior subordinated debentures		25,774			288	4.43		25,774			288	4.43		25,773			289	4.46
Subordinated debentures		59,542			546	3.64		59,521			547	3.65		59,457			546	3.65
Notes payable and other borrowings		14,819			158	4.23		14,806			158	4.23		-			-	-
Total interest bearing liabilities		4,227,739			19,252	1.81		4,305,330			21,300	1.96		3,217,604			13,695	1.69
Noninterest bearing deposits		1,781,374			-	-		1,782,193			-	-		1,712,106			-	-
Other liabilities		67,078			-	-		61,732			-	-		66,952			-	-
Stockholders' equity		883,986			-	-		849,998			-	-		667,881			-	-
Total liabilities and stockholders' equity	$	6,960,177					$	6,999,253					$	5,664,543
Net interest income (GAAP)				$	83,051					$	82,775					$	61,584
Net interest margin (GAAP)						5.07						5.03						4.66

Net interest income (TE)^1^				$	83,384					$	83,113					$	61,934
Net interest margin (TE)^1^						5.09						5.05						4.68
Interest bearing liabilities to earning assets		64.99	%					65.94	%					61.17	%

^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 18 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 18, and includes loan fee income of $1.9 million for the fourth quarter of 2025, loan fee income of $1.2 million for the third quarter of 2025, and loan fee income of $140,000 for the fourth quarter of 2024. Nonaccrual loans are included in the above stated average balances.

The decreased yield of eight basis points on interest earning assets compared to the linked period was primarily driven by the two 25 basis point rate cuts during the fourth quarter of 2025 and one 25 basis point rate cut in September 2025, reducing the income of our securities and loan portfolios in the fourth quarter of 2025. 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 54 basis points on interest earning assets was primarily driven by increased yield on loans due to the Bancorp Financial acquisition as well as 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 loans and loans held for sale increased $1.28 billion in the fourth quarter of 2025 compared to the prior year like quarter, with a corresponding increase to the tax equivalent yield on the loan portfolio of 48 basis points year over year due to the Bancorp Financial acquisition. Average balances of securities available for sale decreased $50.4 million in the fourth quarter of 2025 compared to the prior year like quarter, but showed an increase to the tax equivalent yield on the securities available for sale portfolio of 21 basis points year over year primarily due to variable security rate resets and higher yielding investments.

Average balances of interest bearing deposit accounts have decreased since the third quarter of 2025 through the fourth quarter of 2025, from $4.15 billion to $3.94 billion. The decrease in average deposits along with the Fed rate cuts during the last four months of 2025 drove the decrease in interest bearing deposit expenses of $3.4 million compared to the prior linked quarter, which decreased the cost of interest bearing deposits from 191 basis points for the quarter ended September 30, 2025, to 167 basis points for the quarter ended December 31, 2025. We will continue to control the cost of funds by monitoring market activity as well as allowing remaining exception-priced deposits to run off naturally. An 18 basis point decrease in money market accounts, a 20 basis point decrease in savings accounts, and a 30 basis point decrease in time deposits for the quarter ended December 31, 2025 drove a significant portion of the decrease from the prior linked quarter. The cost of interest bearing deposits increased 26 basis points for the quarter ended December 31, 2025 from 141 basis points for the quarter ended December 31, 2024. A 17 basis point increase in the cost of money market accounts and a 50 basis point increase in savings accounts drove a significant portion of the overall increase from the prior year like quarter. An increase in the volume of deposits related to the Bancorp Financial acquisition, as compared to rates, drove the $3.1 million of growth in interest expense related to time deposits, compared to the prior year like period.

Borrowing costs increased in the fourth quarter of 2025, compared to the third quarter of 2025, primarily due to the $133.6 million increase in average other short-term borrowings stemming from an increase in average daily FHLB advances over the prior linked quarter. The decrease of $45.2 million year over year of average FHLB advances was based on daily liquidity needs due to the changes in the funding mix as a result of recent acquisitions and was the primary driver of the $883,000 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. Notes payable of $14.8 million were assumed in the Bancorp Financial acquisition; these notes are FHLB long-term putable advances.

Our net interest margin, for both GAAP and TE presentations, showed growth over the prior linked quarter periods and over the prior year like quarter presented above. Our net interest margin (GAAP) increased four basis points to 5.07% for the fourth quarter of 2025, compared to 5.03% for the third quarter of 2025, and increased 41 basis points compared to 4.66% for the fourth quarter of 2024. Our net interest margin (TE) increased four basis points to 5.09% for the fourth quarter of 2025, compared to 5.05% for the third quarter of 2025, and increased 41 basis points compared to 4.68% for the fourth quarter of 2024. The increase in net interest margin for the fourth quarter of 2025, compared to the prior linked quarter, was driven by market interest rates and the effect on interest income and expense compared to interest earning asset and interest bearing liability balances. The net interest margin increased in the fourth quarter of 2025, compared to the prior year like quarter, primarily due to the higher yielding consumer loans, including powersport, in the Bancorp Financial acquisition, higher security yields, and 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 18 that provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Noninterest Income


										December 31, 2025
Noninterest Income	Three Months Ended									Percent Change From
(Dollars in thousands)	December 31,			September 30,			December 31,			September 30,		December 31,
	2025			2025			2024			2025		2024
Wealth management	$	3,537		$	3,515		$	3,299		0.6		7.2
Service charges on deposits		2,855			2,920			2,657		(2.2)		7.5
Residential mortgage banking revenue
Secondary mortgage fees		123			92			88		33.7		39.8
MSRs mark to market (loss) gain		(428)			(389)			385		(10.0)		(211.2)
Mortgage servicing income		444			469			475		(5.3)		(6.5)
Net gain on sales of mortgage loans		657			620			516		6.0		27.3
Total residential mortgage banking revenue		796			792			1,464		0.5		(45.6)
Securities gains (losses), net		8			(1)			-		N/M		100.0
Change in cash surrender value of BOLI		834			1,175			767		(29.0)		8.7
Death benefit realized on BOLI		-			430			-		(100.0)		-
Card related income		2,723			2,768			2,572		(1.6)		5.9
Other income		1,401			1,510			851		(7.2)		64.6
Total noninterest income	$	12,154		$	13,109		$	11,610		(7.3)		4.7

N/M - Not meaningful

Noninterest income decreased $955,000, or 7.3%, in the fourth quarter of 2025, compared to the third quarter of 2025, and increased $544,000, or 4.7%, compared to the fourth quarter of 2024. The decrease from the third quarter of 2025 was primarily driven by a $341,000 decrease in the cash surrender value of BOLI due to changes in market interest rates as well as the annual amortization of the cash value enhancement cost related to the BOLI portfolio restructuring a few years ago. In addition, no death benefit on BOLI was realized during the fourth quarter of 2025, compared to $430,000 in the prior quarter.

The increase in noninterest income of $544,000 in the fourth quarter of 2025, compared to the fourth quarter of 2024, is primarily due to a $238,000 increase in wealth management income from growth in advisory, personal trust, and estate fees, a $198,000 increase in service charges on deposits, a $151,000 increase in card related income, and a $550,000 increase in other income primarily driven by powersport servicing fees. Partially offsetting the increase in noninterest income during the quarter was a $668,000 decrease in residential mortgage banking revenue mainly due to a $813,000 decrease in MSRs mark to market valuations.

Noninterest Expense


										December 31, 2025
Noninterest Expense	Three Months Ended									Percent Change From
(Dollars in thousands)	December 31,			September 30,			December 31,			September 30,		December 31,
	2025			2025			2024			2025		2024
Salaries	$	22,426		$	31,360		$	18,130		(28.5)		23.7
Officers' incentive		3,035			3,279			3,089		(7.4)		(1.7)
Benefits and other		5,535			5,084			4,394		8.9		26.0
Total salaries and employee benefits		30,996			39,723			25,613		(22.0)		21.0
Occupancy, furniture and equipment expense		5,092			4,937			4,457		3.1		14.2
Computer and data processing		4,798			4,002			2,659		19.9		80.4
FDIC insurance		720			854			628		(15.7)		14.6
Net teller & bill paying		701			691			575		1.4		21.9
General bank insurance		354			437			327		(19.0)		8.3
Amortization of core deposit intangible asset		1,235			1,251			716		(1.3)		72.5
Advertising expense		299			545			280		(45.1)		6.8
Card related expense		1,652			1,708			1,497		(3.3)		10.4
Legal fees		432			432			660		-		(34.5)
Consulting & management fees		518			2,471			883		(79.0)		(41.3)
Other real estate owned expense, net		81			128			2,019		(36.7)		(96.0)
Other expense		6,057			5,984			4,008		1.2		51.1
Total noninterest expense	$	52,935		$	63,163		$	44,322		(16.2)		19.4
Efficiency ratio (GAAP)^1^		53.98	%		64.46	%		57.12	%
Adjusted efficiency ratio (non-GAAP)^2^		51.28	%		52.10	%		54.61	%

^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 19 that provides a reconciliation of this non-GAAP financial measure to the most comparable GAAP equivalent.

Noninterest expense for the fourth quarter of 2025 decreased $10.2 million, or 16.2%, compared to the third quarter of 2025, and increased $8.6 million, or 19.4%, compared to the fourth quarter of 2024. The decrease in the fourth quarter of 2025, compared to the linked quarter, was primarily attributable to an $8.7 million decrease in salaries and employee benefits, of which $8.4 million was due to change in control, retention, and severance payouts that were incurred in the third quarter related to the Bancorp Financial acquisition. The decrease in the fourth quarter of 2025 was also attributable to a $2.0 million decrease in consulting & management fees, which was primarily due to the timing of costs incurred as a result of our acquisition of Bancorp Financial.

The year over year increase in noninterest expense is primarily attributable to a $5.4 million increase in salaries and employee benefits, primarily due to the Bancorp Financial acquisition and the additional employees that were retained, along with increases in annual base salary rates, officers’ incentives, and restricted stock expense in the fourth quarter of 2025. Also contributing to the increase was a $635,000 increase in occupancy, furniture and equipment, a $2.1 million increase in computer and data processing expenses, a $519,000 increase in core deposit intangible amortization, and a $2.0 million increase in other expense primarily due to costs associated with our acquisition of Bancorp Financial. Partially offsetting the increase in noninterest expense in the fourth quarter of 2025, compared to the fourth quarter of 2024, was a $1.9 million decrease in other real estate owned expense, net, as a $1.7 million OREO valuation reserve expense was recorded in the fourth quarter of 2024 based on valuation write downs on two OREO properties; no OREO valuation reserves were recorded in the fourth quarter of 2025. 8

Earning Assets


							December 31, 2025
Loans	As of						Percent Change From
(Dollars in thousands)	December 31,		September 30,		December 31,		September 30,		December 31,
	2025		2025		2024		2025		2024
Commercial	$	842,130	$	786,095	$	800,476	7.1		5.2
Leases		548,256		550,201		491,748	(0.4)		11.5
Commercial real estate – investor		1,212,384		1,257,328		1,078,829	(3.6)		12.4
Commercial real estate – owner occupied		706,567		680,412		683,283	3.8		3.4
Construction		173,630		176,387		201,716	(1.6)		(13.9)
Residential real estate – investor		70,225		69,362		49,598	1.2		41.6
Residential real estate – owner occupied		230,432		231,547		206,949	(0.5)		11.3
Multifamily		339,131		378,213		351,325	(10.3)		(3.5)
HELOC		235,293		234,885		103,388	0.2		127.6
Powersport		696,959		715,498		-	(2.6)		N/M
Other^1^		197,124		184,577		14,024	6.8		N/M
Total loans	$	5,252,131	$	5,264,505	$	3,981,336	(0.2)		31.9

N/M - Not meaningful

^1^Other class includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts.

Total loans decreased by $12.4 million at December 31, 2025, compared to September 30, 2025, and increased by $1.27 billion compared to December 31, 2024. The decrease from the prior quarter is primarily due to reductions of $44.9 million to commercial real estate – investor and $39.1 million to multifamily, offset by increases of $56.0 million to commercial and $26.2 million to commercial real estate – owner occupied. The increase to total loans compared to the prior year is primarily due to the $1.19 billion portfolio acquired from Bancorp Financial, which expanded our consumer lending and added the powersport segment. Excluding the acquisition, we achieved organic loan growth, net of paydowns, of $76.1 million, or 1.9%, in the fourth quarter of 2025 compared to the prior year like quarter, primarily driven by commercial, leases, and commercial real estate.


										December 31, 2025
Securities		As of								Percent Change From
(Dollars in thousands)		December 31,			September 30,			December 31,		September 30,		December 31,
		2025			2025			2024		2025		2024
Securities available-for-sale, at fair value
U.S. Treasury		$	165,860		$	190,670		$	194,143	(13.0)		(14.6)
U.S. government agencies			29,176			38,264			37,814	(23.8)		(22.8)
U.S. government agency mortgage-backed			88,780			93,051			100,277	(4.6)		(11.5)
States and political subdivisions			206,375			210,675			215,456	(2.0)		(4.2)
Collateralized mortgage obligations			359,305			378,236			368,616	(5.0)		(2.5)
Asset-backed securities			45,816			47,802			62,303	(4.2)		(26.5)
Collateralized loan obligations			194,464			198,098			183,092	(1.8)		6.2
Equity securities			747			684			-	9.2		N/M
Total securities available-for-sale		$	1,090,523		$	1,157,480		$	1,161,701	(5.8)		(6.1)

N/M - Not meaningful

Our securities available-for-sale portfolio totaled $1.09 billion as of December 31, 2025, reflecting a decrease of $67.0 million from September 30, 2025, and a decrease of $71.2 million from December 31, 2024. 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.

Asset Quality


										December 31, 2025
Nonperforming assets	As of									Percent Change From
(Dollars in thousands)	December 31,			September 30,			December 31,			September 30,	December 31,
	2025			2025			2024			2025	2024
Nonaccrual loans	$	47,952		$	34,126		$	28,851		40.5	66.2
Loans past due 90 days or more and still accruing interest		4,879			13,859			1,436		(64.8)	239.8
Total nonperforming loans		52,831			47,985			30,287		10.1	74.4
Other real estate owned		1,427			6,416			21,617		(77.8)	(93.4)
Repossessed assets ^(1)^		1,363			2,088			484		(34.7)	181.6
Total nonperforming assets	$	55,621		$	56,489		$	52,388		(1.5)	6.2

30-89 days past due loans and still accruing interest	$	52,169		$	22,415		$	11,702
Nonaccrual loans to total loans		0.9	%		0.6	%		0.7	%
Nonperforming loans to total loans		1.0	%		0.9	%		0.8	%
Nonperforming assets to total loans plus OREO and repossessed assets		1.1	%		1.1	%		1.3	%
Purchased credit-deteriorated loans to total loans		1.5	%		1.6	%		0.4	%

Allowance for credit losses	$	72,301		$	75,037		$	43,619
Allowance for credit losses to total loans		1.4	%		1.4	%		1.1	%
Allowance for credit losses to nonaccrual loans		150.8	%		219.9	%		151.2	%

^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, primarily in our acquisitions of West Suburban and Bancorp Financial, totaled $78.6 million, net of purchase accounting adjustments, at December 31, 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.


										December 31, 2025
Classified loans		As of								Percent Change From
(Dollars in thousands)		December 31,			September 30,			December 31,		September 30,		December 31,
		2025			2025			2024		2025		2024
Commercial		$	51,587		$	50,680		$	24,748	1.8		108.4
Leases			2,428			1,277			523	90.1		364.2
Commercial real estate – investor			14,245			2,853			14,489	399.3		(1.7)
Commercial real estate – owner occupied			64,081			72,020			27,619	(11.0)		132.0
Construction			11,421			1,612			19,351	608.5		(41.0)
Residential real estate – investor			1,142			1,228			1,690	(7.0)		(32.4)
Residential real estate – owner occupied			1,897			1,839			1,851	3.2		2.5
Multifamily			1,494			1,183			1,165	26.3		28.2
HELOC			1,466			1,538			547	(4.7)		168.0
Powersport			68			-			-	N/M		N/M
Other^1^			270			30			10	800.0		N/M
Total classified loans		$	150,099		$	134,260		$	91,993	11.8		63.2

N/M - Not meaningful.

^1^Other class includes consumer loans such as collector cars, manufactured homes, solar loans, and overdrafts.

Classified loans as of December 31, 2025 increased $15.8 million from September 30, 2025, and increased $58.1 million from December 31, 2024. The net increase from the third quarter of 2025 included inflows of $42.4 million, mostly driven by downgrades of nine commercial relationships for $12.1 million, two commercial real estate – investor relationships for $11.4 million, and one construction relationship for $9.7 million. The increase of classified loans in the fourth quarter of 2025 were offset by $26.5 million of outflows, which primarily consist of $24.4 million of paid off loans, and $2.0 million of principal payment reductions. Remediation work continues on these credits, with the goal of cash flow improvements with increased tenancy within commercial real estate.

Allowance for Credit Losses on Loans and Unfunded Commitments

At December 31, 2025, our allowance for credit losses (“ACL”) on loans totaled $72.3 million, and our ACL on unfunded commitments, included in other liabilities, totaled $2.1 million. In relation to the acquisition, in the third quarter of 2025, we recorded a day one purchase accounting credit mark of $17.5 million and a day two non-PCD provision expense of $13.2 million based on our assessment of the acquired loans. The fourth quarter of 2025 standard provision expense consisted of a $3.2 million provision for credit losses on loans, and a $245,000 reversal of provision for credit losses on unfunded commitments. The increase to the provision for credit losses for the fourth quarter of 2025 is driven by current period charge-offs, primarily within the powersport and commercial real estate – owner occupied portfolios, as well as a downgrade to substandard on one large commercial real estate credit. The decrease 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 $6.0 million in the fourth quarter of 2025, primarily within the powersport portfolio. The third quarter of 2025 provision expense of $6.5 million consisted of a $6.5 million provision for credit losses on loans, and $38,000 provision for credit losses on unfunded commitments in addition to the Day 2 provision of $13.2 million. We recorded net charge-offs of $5.1 million in the third quarter of 2025. In the fourth quarter of 2024, we recorded a provision expense of $3.5 million, which consisted of a $4.1 million provision for credit losses on loans and a $600,000 reversal of provision for credit losses on unfunded commitments. We recorded net charge offs of $4.9 million in the fourth quarter of 2024. Our ACL on loans to total loans was 1.4% as of December 31, 2025 and September 30, 2025, and 1.1% December 31, 2024.

The ACL on unfunded commitments totaled $2.1 million as of December 31, 2025, $2.3 million as of September 30, 2025, and $1.9 million as of December 31, 2024.

Net Charge-off Summary


Loan charge–offs, net of recoveries	Quarters Ended
(Dollars in thousands)	December 31,		% of	September 30,		% of	December 31,		% of
	2025		Total ^2^	2025		Total ^2^	2024		Total ^2^
Commercial	$	(44)	(0.7)	$	385	7.5	$	8,621	176.1
Leases		15	0.2		848	16.6		(38)	(0.8)
Commercial real estate – Investor		(14)	(0.2)		(15)	(0.3)		(173)	(3.5)
Commercial real estate – Owner occupied		1,125	18.8		(2)	-		(3,739)	(76.4)
Construction		-	-		(46)	(0.9)		-	-
Residential real estate – Investor		(1)	-		(2)	-		(2)	-
Residential real estate – Owner occupied		(11)	(0.2)		(7)	(0.1)		234	4.8
Multifamily		-	-		181	3.5		-	-
HELOC		(49)	(0.8)		(19)	(0.4)		(45)	(0.9)
Powersport		4,466	74.7		2,980	58.3		-	-
Other^1^		494	8.2		805	15.8		37	0.7
Net charge–offs / (recoveries)	$	5,981	100.0	$	5,108	100.0	$	4,895	100.0

^1^Other class includes consumer loans, such as collector cars and solar loans, and overdrafts.

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

Gross charge-offs for the fourth quarter of 2025 were $6.9 million, compared to $6.0 million for the third quarter of 2025 and $8.9 million for the fourth quarter of 2024. Gross recoveries were $875,000 for the fourth quarter of 2025, mostly comprised from powersport for $670,000, compared to $938,000 for the third quarter of 2025, driven by $705,000 powersport recoveries, and $4.1 million for the fourth quarter of 2024, which was mostly driven by $3.5 million of recoveries in commercial real estate – owner occupied. 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 $5.60 billion at December 31, 2025, a decrease of $164.2 million, or 2.9%, compared to $5.76 billion at September 30, 2025. This decline was driven primarily due to decreases in savings accounts of $21.1 million, money market accounts of $29.3 million, and time deposits of $146.8 million due to the roll off of higher rate brokered deposits and other exception-priced time deposits acquired from the Bancorp Financial acquisition. These decreases were partially offset by increases in NOW accounts of $31.9 million. We continue to allow exception priced deposits, mainly time deposits, and brokered deposits run off over time.

Total quarterly average deposits for the year over year period increased $1.13 billion, or 24.5%, driven by an increase in average time deposits of $488.0 million, NOW and money markets combined of $345.6 million, savings accounts of $223.4 million, and demand deposits of $69.3 million. The overall increase in quarterly average deposits for the year over year period was primarily due to the acquisition of Bancorp Financial in July 2025. Our quarterly average time deposits as of December 31, 2025 include $68.6 million of brokered deposits, compared to none at December 31, 2024. These brokered deposits were assumed with the acquisition of Bancorp Financial and are running off over the next few years.

Borrowings

As of December 31, 2025, we had $215.0 million in other short-term borrowings, compared to $165.0 million in short-term borrowings as of September 30, 2025 and $20.0 million as of December 31, 2024, all of which were short-term FHLB advances. In addition, we had $14.8 million of long-term FHLB advances, net of purchase accounting adjustments, assumed with the Bancorp Financial acquisition, which are reported in notes payable and other borrowings on the balance sheet.

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 8.

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 18 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 our acquisition of 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 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 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; (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 government shutdowns, 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, January 22, 2026, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss our fourth quarter 2025 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/2239/53419

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.

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands)


		(unaudited)
		December 31,		December 31,
		2025		2024
Assets
Cash and due from banks		$	51,665	$	52,175
Interest earning deposits with financial institutions			72,360		47,154
Cash and cash equivalents			124,025		99,329
Securities available-for-sale, at fair value			1,090,523		1,161,701
Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock			32,025		19,441
Loans held-for-sale			3,645		1,556
Loans			5,252,131		3,981,336
Less: allowance for credit losses on loans			72,301		43,619
Net loans			5,179,830		3,937,717
Premises and equipment, net			86,645		87,311
Other real estate owned			1,427		21,617
Mortgage servicing rights, at fair value			9,459		10,374
Goodwill			129,196		93,260
Core deposit intangible ("CDI")			23,692		22,031
Bank-owned life insurance (“BOLI”)			130,481		112,751
Deferred tax assets, net			31,276		26,619
Other assets			60,451		55,670
Total assets		$	6,902,675	$	5,649,377

Liabilities
Deposits:
Noninterest bearing demand		$	1,739,117	$	1,704,920
Interest bearing:
Savings, NOW, and money market			2,745,540		2,315,134
Time			1,111,412		748,677
Total deposits			5,596,069		4,768,731
Securities sold under repurchase agreements			23,769		36,657
Other short-term borrowings			215,000		20,000
Junior subordinated debentures			25,774		25,773
Subordinated debentures			59,552		59,467
Notes payable and other borrowings			14,825		-
Other liabilities			70,918		67,715
Total liabilities			6,005,907		4,978,343

Stockholders’ Equity
Common stock			53,015		44,908
Additional paid-in capital			341,451		205,284
Retained earnings			537,231		469,165
Accumulated other comprehensive loss, net			(28,738)		(47,748)
Treasury stock			(6,191)		(575)
Total stockholders’ equity			896,768		671,034
Total liabilities and stockholders’ equity		$	6,902,675	$	5,649,377

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(In thousands, except share data)


		(unaudited)						(unaudited)
		Three Months Ended December 31,						Year Ended December 31,
		2025			2024			2025			2024
Interest and dividend income
Loans, including fees		$	90,925		$	63,967		$	305,775		$	253,319
Loans held-for-sale			35			34			127			94
Securities:
Taxable			9,136			8,899			38,194			34,656
Tax exempt			1,219			1,275			4,943			5,164
Dividends from FHLBC and FRBC stock			390			562			1,517			2,278
Interest bearing deposits with financial institutions			598			542			4,625			2,393
Total interest and dividend income			102,303			75,279			355,181			297,904
Interest expense
Savings, NOW, and money market deposits			7,906			4,652			27,468			17,866
Time deposits			8,665			5,606			28,898			20,147
Securities sold under repurchase agreements			45			75			229			337
Other short-term borrowings			1,644			2,527			1,969			14,607
Junior subordinated debentures			288			289			1,152			1,127
Subordinated debentures			546			546			2,185			2,185
Notes payable and other borrowings			158			-			316			-
Total interest expense			19,252			13,695			62,217			56,269
Net interest and dividend income			83,051			61,584			292,964			241,635
Provision for credit losses			3,000			3,500			27,553			12,750
Net interest and dividend income after provision for credit losses			80,051			58,084			265,411			228,885
Noninterest income
Wealth management			3,537			3,299			13,244			11,426
Service charges on deposits			2,855			2,657			11,282			10,226
Secondary mortgage fees			123			88			372			287
Mortgage servicing rights mark to market (loss) gain			(428)			385			(1,918)			(723)
Mortgage servicing income			444			475			1,865			1,942
Net gain on sales of mortgage loans			657			516			2,291			1,805
Securities gains, net			8			-			7			-
Change in cash surrender value of BOLI			834			767			3,197			3,619
Death benefit realized on BOLI			-			-			430			905
Card related income			2,723			2,572			10,619			10,114
Other income			1,401			851			4,973			4,218
Total noninterest income			12,154			11,610			46,362			43,819
Noninterest expense
Salaries and employee benefits			30,996			25,613			124,662			98,025
Occupancy, furniture and equipment			5,092			4,457			19,054			16,159
Computer and data processing			4,798			2,659			13,840			9,473
FDIC insurance			720			628			2,844			2,543
Net teller & bill paying			701			575			2,720			2,244
General bank insurance			354			327			1,449			1,268
Amortization of core deposit intangible			1,235			716			4,545			2,440
Advertising expense			299			280			1,331			1,243
Card related expense			1,652			1,497			6,229			5,555
Legal fees			432			660			1,724			1,326
Consulting & management fees			518			883			3,942			2,496
Other real estate expense, net			81			2,019			2,117			2,220
Other expense			6,057			4,008			19,565			14,756
Total noninterest expense			52,935			44,322			204,022			159,748
Income before income taxes			39,270			25,372			107,751			112,956
Provision for income taxes			10,483			6,262			27,441			27,692
Net income		$	28,787		$	19,110		$	80,310		$	85,264

Basic earnings per share		$	0.55		$	0.42		$	1.64		$	1.90
Diluted earnings per share			0.54			0.42			1.62			1.87
Dividends declared per share			0.07			0.06			0.25			0.21


Ending common shares outstanding	52,669,224	44,873,467	52,669,224	44,873,467
Weighted-average basic shares outstanding	52,667,899	44,856,870	48,875,540	44,828,290
Weighted-average diluted shares outstanding	53,480,431	45,671,352	49,669,539	45,639,351

Old Second Bancorp, Inc. and Subsidiaries

Quarterly Consolidated Average Balance

(In thousands, unaudited)


		2025												2024
Assets		4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr		3rd Qtr			2nd Qtr		1st Qtr
Cash and due from banks		$	52,040		$	51,357		$	47,875		$	52,550		$	54,340	$	54,279		$	54,286	$	54,533
Interest earning deposits with financial institutions			66,430			119,619			166,366			97,645			49,757		48,227			50,740		48,088
Cash and cash equivalents			118,470			170,976			214,241			150,195			104,097		102,506			105,026		102,621

Securities available-for-sale, at fair value			1,129,633			1,165,900			1,190,123			1,181,257			1,180,024		1,173,948			1,179,430		1,182,888
FHLBC and FRBC stock			30,085			25,961			19,200			19,441			27,493		30,268			27,574		31,800
Loans held-for-sale			3,254			1,975			2,375			1,343			2,027		1,557			1,050		746
Loans			5,275,389			5,215,374			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			73,718			72,354			41,544			43,543			45,040		42,683			43,468		44,295
Net loans			5,201,671			5,143,020			3,916,731			3,914,187			3,955,974		3,922,477			3,913,986		3,974,336

Premises and equipment, net			87,449			88,304			87,081			87,709			84,364		82,977			82,332		80,493
Other real estate owned			4,410			6,464			2,099			13,388			20,136		7,471			4,657		5,123
Mortgage servicing rights, at fair value			9,490			9,632			9,856			10,211			10,060		10,137			10,754		10,455
Goodwill			130,135			127,873			93,232			93,253			88,320		86,477			86,477		86,477
Core deposit intangible			24,281			25,539			20,462			21,490			12,799		9,768			10,340		10,913
Bank-owned life insurance ("BOLI")			130,151			128,870			113,326			112,848			112,243		110,901			110,440		109,867
Deferred tax assets, net			32,705			30,375			23,549			25,489			23,549		25,666			32,969		31,323
Other assets			58,443			74,364			44,431			43,506			43,457		50,989			50,423		49,681
Total other assets			477,064			491,421			394,036			407,894			394,928		384,386			388,392		384,332
Total assets		$	6,960,177		$	6,999,253		$	5,736,706		$	5,674,317		$	5,664,543	$	5,615,142		$	5,615,458	$	5,676,723

Liabilities
Deposits:
Noninterest bearing demand		$	1,781,374		$	1,782,193		$	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			2,764,609			2,798,414			2,424,947			2,370,408			2,195,608		2,142,307			2,195,898		2,202,485
Time			1,179,966			1,347,455			695,946			725,314			692,001		651,663			610,705		558,463
Total deposits			5,725,949			5,928,062			4,850,180			4,799,104			4,599,715		4,485,420			4,576,146		4,580,424

Securities sold under repurchase agreements			23,464			33,382			35,419			34,529			39,982		45,420			37,430		30,061
Other short-term borrowings			159,565			25,978			-			1,444			204,783		305,489			242,912		332,198
Junior subordinated debentures			25,774			25,774			25,773			25,773			25,773		25,773			25,773		25,773
Subordinated debentures			59,542			59,521			59,500			59,478			59,457		59,436			59,414		59,393
Notes payable and other borrowings			14,819			14,806			-			-			-		-			-		-
Other liabilities			67,078			61,732			59,580			70,411			66,952		54,453			68,530		60,024
Total liabilities			6,076,191			6,149,255			5,030,452			4,990,739			4,996,662		4,975,991			5,010,205		5,087,873

Stockholders' equity
Common stock			53,015			53,015			45,094			45,028			44,908		44,908			44,908		44,787
Additional paid-in capital			340,870			339,612			205,706			205,433			205,356		204,558			203,654		202,688
Retained earnings			526,910			500,075			497,224			479,011			462,631		443,435			424,262		405,201
Accumulated other comprehensive loss			(30,594)			(36,823)			(41,080)			(44,853)			(44,251)		(52,907)			(66,682)		(63,365)
Treasury stock			(6,215)			(5,881)			(690)			(1,041)			(763)		(843)			(889)		(461)
Total stockholders' equity			883,986			849,998			706,254			683,578			667,881		639,151			605,253		588,850
Total liabilities and stockholders' equity		$	6,960,177		$	6,999,253		$	5,736,706		$	5,674,317		$	5,664,543	$	5,615,142		$	5,615,458	$	5,676,723

Total Earning Assets		$	6,504,791		$	6,528,829		$	5,336,339		$	5,257,416		$	5,260,315	$	5,219,160		$	5,216,248	$	5,282,153
Total Interest Bearing Liabilities			4,227,739			4,305,330			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
	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr		3rd Qtr			2nd Qtr		1st Qtr
Interest and Dividend Income
Loans, including fees	$	90,925		$	91,301		$	61,954		$	61,595		$	63,967	$	64,528		$	62,151	$	62,673
Loans held-for-sale		35			31			39			22			34		27			19		14
Securities:
Taxable		9,136			9,872			9,959			9,227			8,899		9,113			8,552		8,092
Tax exempt		1,219			1,235			1,229			1,260			1,275		1,291			1,292		1,306
Dividends from FHLB and FRBC stock		390			381			273			473			562		497			584		635
Interest bearing deposits with financial institutions		598			1,255			1,784			988			542		616			625		610
Total interest and dividend income		102,303			104,075			75,238			73,565			75,279		76,072			73,223		73,330
Interest Expense
Savings, NOW, and money market deposits		7,906			9,043			5,606			4,913			4,652		4,860			4,317		4,037
Time deposits		8,665			10,896			4,508			4,829			5,606		5,539			4,961		4,041
Securities sold under repurchase agreements		45			60			56			68			75		93			83		86
Other short-term borrowings		1,644			308			-			17			2,527		4,185			3,338		4,557
Junior subordinated debentures		288			288			288			288			289		270			288		280
Subordinated debentures		546			547			546			546			546		547			546		546
Notes payable and other borrowings		158			158			-			-			-		-			-		-
Total interest expense		19,252			21,300			11,004			10,661			13,695		15,494			13,533		13,547
Net interest and dividend income		83,051			82,775			64,234			62,904			61,584		60,578			59,690		59,783
Provision for credit losses		3,000			19,653			2,500			2,400			3,500		2,000			3,750		3,500
Net interest and dividend income after provision for credit losses		80,051			63,122			61,734			60,504			58,084		58,578			55,940		56,283
Noninterest Income
Wealth management		3,537			3,515			3,103			3,089			3,299		2,787			2,779		2,561
Service charges on deposits		2,855			2,920			2,788			2,719			2,657		2,646			2,508		2,415
Secondary mortgage fees		123			92			84			73			88		84			65		50
Mortgage servicing rights mark to market (loss) gain		(428)			(389)			(531)			(570)			385		(964)			(238)		94
Mortgage servicing income		444			469			472			480			475		466			513		488
Net gain on sales of mortgage loans		657			620			550			464			516		507			468		314
Securities gains (losses), net		8			(1)			-			-			-		(1)			-		1
Change in cash surrender value of BOLI		834			1,175			690			498			767		860			820		1,172
Death benefit realized on BOLI		-			430			-			-			-		12			893		-
Card related income		2,723			2,768			2,716			2,412			2,572		2,589			2,577		2,376
Other income		1,401			1,510			1,026			1,036			851		1,595			742		1,030
Total noninterest income		12,154			13,109			10,898			10,201			11,610		10,581			11,127		10,501
Noninterest Expense
Salaries and employee benefits		30,996			39,723			26,950			26,993			25,613		24,676			23,424		24,312
Occupancy, furniture and equipment		5,092			4,937			4,477			4,548			4,457		3,876			3,899		3,927
Computer and data processing		4,798			4,002			2,692			2,348			2,659		2,375			2,184		2,255
FDIC insurance		720			854			642			628			628		632			616		667
Net teller & bill paying		701			691			670			658			575		570			578		521
General bank insurance		354			437			328			330			327		320			312		309
Amortization of core deposit intangible		1,235			1,251			1,022			1,037			716		570			574		580
Advertising expense		299			545			320			167			280		299			472		192
Card related expense		1,652			1,708			1,489			1,380			1,497		1,458			1,323		1,277
Legal fees		432			432			388			472			660		202			238		226
Consulting & management fees		518			2,471			527			426			883		480			797		336
Other real estate expense, net		81			128			35			1,873			2,019		242			(87)		46
Other expense		6,057			5,984			3,879			3,645			4,008		3,608			3,547		3,593
Total noninterest expense		52,935			63,163			43,419			44,505			44,322		39,308			37,877		38,241
Income before income taxes		39,270			13,068			29,213			26,200			25,372		29,851			29,190		28,543
Provision for income taxes		10,483			3,197			7,391			6,370			6,262		6,900			7,299		7,231
Net income	$	28,787		$	9,871		$	21,822		$	19,830		$	19,110	$	22,951		$	21,891	$	21,312

Basic earnings per share (GAAP)	$	0.55		$	0.19		$	0.49		$	0.44		$	0.42	$	0.52		$	0.48	$	0.48
Diluted earnings per share (GAAP)		0.54			0.18			0.48			0.43			0.42		0.50			0.48		0.47
Dividends paid per share		0.07			0.06			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
	December 31,			September 30,			December 31,
	2025			2025			2024
Net Income
Income before income taxes (GAAP)	$	39,270		$	13,068		$	25,372
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 (gains)		428			389			(385)
Acquisition related costs, net of losses on branch sales		2,296			11,508			1,521
Adjusted net income before taxes		41,986			37,689			26,508
Taxes on adjusted net income ^1^		11,208			9,326			6,542
Adjusted net income (non-GAAP)	$	30,778		$	28,363		$	19,966

Basic earnings per share (GAAP)	$	0.55		$	0.19		$	0.40
Diluted earnings per share (GAAP)		0.54			0.18			0.40
Adjusted basic earnings per share (non-GAAP)		0.59			0.54			0.45
Adjusted diluted earnings per share (non-GAAP)		0.58			0.53			0.44

Total average assets		6,960,177			6,999,253			5,664,543

Return on average assets (GAAP)		1.64	%		0.56	%		1.34	%
Adjusted return on average assets (non-GAAP)		1.75			1.61			1.40

^1^Adjusted net income for the quarter ended September 30, 2025 uses a blended income tax rate of 24.74%, which is slightly higher than the effective tax rate utilized for GAAP earnings due to the tax treatment of certain acquisition related costs.


	Quarters Ended
	December 31,			September 30,			December 31,
	2025			2025			2024
Net Interest Margin
Interest income (GAAP)	$	102,303		$	104,075		$	75,279
Taxable-equivalent adjustment:
Loans		9			10			11
Securities		324			328			339
Interest income (TE)		102,636			104,413			75,629
Interest expense (GAAP)		19,252			21,300			13,695
Net interest income (TE)	$	83,384		$	83,113		$	61,934
Net interest income (GAAP)	$	83,051		$	82,775		$	61,584
Average interest earning assets	$	6,504,791		$	6,528,829		$	5,260,315
Net interest margin (TE)		5.09	%		5.05	%		4.68	%
Net interest margin (GAAP)		5.07	%		5.03	%		4.66	%


	GAAP									Non-GAAP
		Three Months Ended									Three Months Ended
	December 31,			September 30,			December 31,			December 31,			September 30,			December 31,
	2025			2025			2024			2025			2025			2024
Efficiency Ratio / Adjusted Efficiency Ratio

Noninterest expense	$	52,935		$	63,163		$	44,322		$	52,935		$	63,163			$	44,322
Less amortization of core deposit		1,235			1,251			716			1,235			1,251				716
Less other real estate expense, net		81			128			2,019			81			128				2,019
Less acquisition related costs, net of losses on branch sales		N/A			N/A			N/A			2,296			11,508				1,521
Noninterest expense less adjustments	$	51,619		$	61,784		$	41,587		$	49,323		$	50,276			$	40,066

Net interest income	$	83,051		$	82,775		$	61,584		$	83,051		$	82,775			$	61,584
Taxable-equivalent adjustment:
Loans		N/A			N/A			N/A			9			10				11
Securities		N/A			N/A			N/A			324			328				339
Net interest income including adjustments		83,051			82,775			61,584			83,384			83,113				61,934
Noninterest income		12,154			13,109			11,610			12,154			13,109				11,610
Less death benefit related to BOLI		-			430			-			-			430				-
Less securities gains (losses)		8			(1)			-			8			(1)				-
Less MSRs mark to market (losses) gains		(428)			(389)			385			(428)			(389)				385
Taxable-equivalent adjustment:
Change in cash surrender value of BOLI		N/A			N/A			N/A			222			312				203
Noninterest income including adjustments		12,574			13,069			11,225			12,796			13,381				11,428

Net interest income including adjustments plus noninterest income including adjustments	$	95,625		$	95,844		$	72,809		$	96,180		$	96,494			$	73,362
Efficiency ratio / Adjusted efficiency ratio		53.98	%		64.46	%		57.12	%		51.28	%		52.10	%			54.61	%

N/A - Not applicable.


	Quarters Ended
	December 31,			September 30,			December 31,
	2025			2025			2024
Adjusted Return on Average Tangible Common Equity Ratio

Net income (GAAP)	$	28,787		$	9,871		$	19,110

Income before income taxes (GAAP)	$	39,270		$	13,068		$	25,372
Pre-tax income adjustments:
Provision for credit losses - Day Two		-			13,153			-
Securities (gains) losses, net		(8)			1
MSR losses (gains)		428			389			(385)
Merger-related costs, net of gains on branch sales		2,296			11,508			1,521
Death benefit related on BOLI		-			(430)			-
Amortization of core deposit intangibles		1,235			1,251			716
Adjusted net income, excluding intangibles amortization, before taxes		43,221			38,940			27,224
Taxes on adjusted net income ^1^		11,538			9,632			6,719
Adjusted net income, excluding intangibles amortization (non-GAAP)	$	31,683		$	29,308		$	20,505


Total Average Common Equity	$	883,986			849,998		$	667,881
Less Average goodwill and intangible assets		154,416			153,412			101,119
Average tangible common equity (non-GAAP)	$	729,570		$	696,586		$	566,762


Return on average common equity (GAAP)		12.92	%		4.61	%		11.38	%
Return on average tangible common equity (non-GAAP)		16.15	%		6.16	%		13.79	%
Adjusted return on average tangible common equity (non-GAAP)		17.23	%		16.69	%		14.39	%

1<br>Loan Portfolio Disclosures<br>AS OF DECEMBER 31, 2025<br>Exhibit 99.2
2<br>Portfolio Segment Outstanding Classified Allowance<br>Commercial (incl. Leases) $1,390 $54 0.97%<br>Commercial Real Estate Investor $1,212 $14 1.77%<br>Commercial Real Estate Owner Occ. $707 $64 0.66%<br>Construction $174 $11 0.87%<br>Residential Real Estate $301 $3 0.88%<br>Multifamily $339 $2 0.44%<br>HELOC $235 $2 1.52%<br>Powersport $697 - 2.52%<br>Other $197 - 3.00%<br>Total $5,252 $150 1.38%<br>Construction<br>3%<br>Commercial RE<br>Investor<br>23%<br>Commercial RE<br>Owner Occ.<br>13%<br>Commercial<br>(inc. Leases)<br>27%<br>Multifamily<br>6%<br>Residential<br>Real Estate<br>6%<br>HELOC<br>5%<br>Other (less than<br>$100 million)<br>4%<br>Powersport<br>13%<br>Loan Portfolio Composition (in millions)<br>Q4 2025 Loan Portfolio Disclosures<br>Total Loans and Allowance for Credit Losses Trend (in millions)<br>$3,977 $3,991 $3,981 $3,940 $3,999 $5,265 $5,252<br>$42 $44 $44 $42 $43<br>$75 $72<br> $-<br> $10<br> $20<br> $30<br> $40<br> $50<br> $60<br> $70<br> $80<br> $2,500<br> $3,000<br> $3,500<br> $4,000<br> $4,500<br> $5,000<br> $5,500<br>6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 12/31/2025<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>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 9/30/25 12/31/25<br>Office CRE Healthcare Other Criticized Loans/ Total Loans<br>Q4 2025 Loan Portfolio Disclosures<br>$8,202<br>$2,256 $1,802 $4,988<br>$19,361<br>$1,076<br>$1,498<br>$6,416 $1,427<br>$484<br>$484<br>$234 $2,088<br>$1,363<br> $-<br> $5,000<br> $10,000<br> $15,000<br> $20,000<br> $25,000<br>9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25<br>OREO OREO Under Contract Repossessed Assets<br>OREO and Repossessed Assets (in thousands)
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4<br>Property Type Outstanding LTV Classified Allowance<br>Retail $338 53% $2 1.10%<br>Industrial $294 50% - 1.21%<br>Office (1) $202 64% $3 3.37%<br>Hotel $79 52% - 1.43%<br>Mixed Use $67 49% $9 5.56%<br>Parking Garage $65 49% - 0.95%<br>Senior Living $62 55% - 1.18%<br>Gas Station/ Convenience $44 50% - 0.94%<br>Other (under $30 million) $61 58% - 1.34%<br>Total $1,212 54% $14 1.77%<br>Commercial Real Estate Investor Portfolio Composition (in millions)<br>Retail<br>28%<br>Office<br>17%<br>Industrial<br>24%<br>Parking Garage<br>5%<br>Hotel<br>6%<br>Senior Living<br>5%<br>Mixed Use<br>6%<br>Other (under<br>$50 million)<br>9%<br>Illinois<br>55%<br>Wisconsin<br>8%<br>Texas<br>6%<br>North Carolina<br>3%<br>Pennsylvania<br>3%<br>Oklahoma<br>3%<br>Other (under $30<br>million)<br>22%<br>State Outstanding LTV Classified<br>Illinois $671 55% $14<br>Wisconsin $98 62% -<br>Texas $75 49% -<br>North Carolina $39 50% -<br>Oklahoma $35 62% -<br>Pennsylvania $33 49% -<br>Florida $29 48% -<br>Other (under $25 million) $232 52% -<br>Total $1,212 54% $14<br>Q4 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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5<br>Industry Outstanding Classified Allowance<br>Health Care, Social Services $270 $28 0.92%<br>Other Services $82 $5 0.39%<br>Retail Trade $67 - 0.21%<br>Manufacturing $58 $2 0.24%<br>Real Estate, Leasing $53 $3 0.58%<br>Accommodation, Food Service $32 $7 1.41%<br>Wholesale Trade $29 $1 0.47%<br>Arts, Entertainment $23 $2 1.02%<br>Other (under $20 million) $93 $16 1.39%<br>Total $707 $64 0.66%<br>Manufacturing<br>8%<br>Accommodation,<br>Food Service<br>5%<br>Retail Trade<br>9%<br>Real Estate,<br>Leasing<br>7%<br>Healthcare<br>38%<br>Other Services<br>12%<br>Other (under $30<br>million)<br>21%<br>Commercial Real Estate Owner-Occupied Portfolio Composition (in millions)<br>Health Care, Social Outstanding Classified Allowance<br>Assisted Living $136 $27 1.08%<br>Skilled Nursing $62 - 1.04%<br>Memory Care $49 - 0.78%<br>Child Care $6 - 4.20%<br>Independent Living $5 - 0.18%<br>Other (under $5 million) $12 $1 0.75%<br>Total $270 $28 0.92%<br>Skilled<br>Nursing<br>23%<br>Assisted<br>Living<br>50%<br>Memory Care<br>18%<br>Independent<br>2%<br>Child Care<br>2% Other (under $5 million)<br>5%<br>Q4 2025 Loan Portfolio Disclosures
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6<br>Commercial & Industrial Outstanding Classified<br>Manufacturing $427 $14<br>Construction $196 $8<br>Administrative, Waste Service $137 $3<br>Professional $129 $1<br>Transportation, Warehousing $114 $17<br>Real Estate, Leasing $80 -<br>Health Care, Social Services $63 $1<br>Finance, Insurance $60 $1<br>Wholesale Trade $51 $4<br>Retail Trade $27 $2<br>Other (under $20 million) $106 $3<br>Total $1,390 $54<br>Commercial (including Leases) Portfolio Composition (in millions)<br>Construction<br>14%<br>Manufacturing<br>30%<br>Wholesale Trade<br>4%<br>Transportation,<br>Warehousing<br>8%<br>Finance, Insurance<br>4%<br>Professional<br>9%<br>Administration,<br>Waste Service<br>10%<br>Health Care,<br>Social Services<br>4%<br>Real Estate,<br>Leasing<br>6%<br>Other (under<br>$50 million)<br>11%<br>Commercial Revolving Line Utilization (outstanding in millions)<br>$641 $654 $677 $653 $587 $574 $658 $717<br>53%<br>55% 56% 55%<br>52% 53%<br>55%<br>57%<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>3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25<br>Q4 2025 Loan Portfolio Disclosures
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7<br>Origination Tier Outstanding Weighted FICO Portfolio APR %<br>Tier 1 $382 776 7.73%<br>Tier 2 $135 709 9.88%<br>Tier 3 $79 682 12.32%<br>Tier 4 $40 655 14.49%<br>Tier 5 $61 605 16.86%<br>Total $697 730 9.82%<br>Powersport Portfolio Composition (in millions)<br>Tier 1<br>54%<br>Tier 2<br>20%<br>Tier 3<br>11%<br>Tier 4<br>6%<br>Tier 5<br>9%<br>Historical Contribution Margin<br>Q4 2025 Loan Portfolio Disclosures<br>Contribution Margin (1) 2020 (EBG) 2021 (EBG) 2022 (EBG) 2023 (EBG) 2024 (EBG) 12/31/2025<br>Portfolio APR 7.25% 7.22% 7.42% 8.13% 9.02% 9.82%<br>Net Promo Accretion 1.61% 1.18% 0.69% 0.41% 0.74% 1.03%<br>Participation -1.02% -0.76% -0.84% -0.87% -0.87% -0.91%<br>Net Loss -0.63% -0.39% -0.62% -1.11% -1.39% -1.76%<br>Net Contribution Margin 7.21% 7.26% 6.65% 6.56% 7.52% 8.19%<br>(1) Historical contribution margin represents Evergreen Bank Group (EBG) performance through 6/30/2025, and 12/31/2025 contribution margin excludes purchase accounting<br>accretion.<br>Asset Type Outstanding % of Total Portfolio APR %<br>New $537 77% 8.45%<br>Used $160 23% 11.48%<br>Total $697 9.82%
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8<br>Net Charge-offs (Recoveries) (in thousands)<br>Portfolio 3/31/2025 (Q) 6/30/2025 (Q) 9/30/2025 (Q) 12/31/2025 (Q) 12/31/2025 (TTM) NCO(R) %<br>Commercial (incl. Leases) $3,507 $1,090 $1,233 ($29) $5,801 0.43%<br>Commercial Real Estate Investor ($14) ($14) ($15) ($14) ($57) 0.00%<br>Commercial Real Estate Owner Occupied $39 ($1) ($2) $1,125 $1,161 0.17%<br>Construction $821 ($337) ($46) - $438 0.26%<br>Residential Real Estate ($32) ($10) ($9) ($11) ($62) (0.02%)<br>Multifamily - - $181 - $181 0.05%<br>HELOC ($12) ($10) ($19) ($49) ($90) (0.05%)<br>Powersport $2,980 $4,466 $7,446 1.05%<br>Other $44 $67 $805 (1) $493 (1) $1,409 1.91%<br>Total $4,353 $785 $5,108 $5,981 $16,227 0.35%<br>12/31/2024 3/31/2025 6/30/2025 9/30/2025 12/31/2025<br>Beginning ACL Balance $44,422 $43,619 $41,551 $42,990 $75,037<br>Day 1 Credit Mark (PCD) - - - $17,540 -<br>Day 2 Credit Mark (Non-PCD) - - - $13,153 -<br>Provision $4,092 $2,285 $2,224 $6,462 $3,245<br>Net Charge-off (Recovery) $4,895 $4,353 $785 $5,108 $5,981<br>Ending ACL Balance $43,619 $41,551 $42,990 $75,037 $72,301<br>Allowance for Credit Losses Quarterly Rollforward(2) (in thousands)<br>Q4 2025 Loan Portfolio Disclosures<br>(2) The Allowance for Credit Losses presented excludes the Allowance for Unfunded Commitments, which totaled $2.1 million as of December 31, 2025 and is reported within<br>other liabilities on the Statements of Condition.<br>(1) $481 thousand and $332 thousand in net charge-offs were associated with the Solar consumer portfolio acquired in Evergreen Bank Group acquisition for 9/30/2025 and<br>12/31/2025 respectively.
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