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): October 22, 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 October 22, 2025, Old Second Bancorp, Inc. (the “Company’s”) issued a press release announcing its financial results for the third quarter ended September 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 October 22, 2025

99.2		Loan Portfolio Disclosures for Old Second Bancorp, Inc. dated September 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: October 22, 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	October 22, 2025
	(630) 906-5484

Old Second Bancorp, Inc. Reports Third Quarter 2025 Net Income of $9.9 Million,

or $0.18 per Diluted Share

AURORA, IL, October 22, 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 third quarter of 2025. Our net income was $9.9 million, or $0.18 per diluted share, for the third quarter of 2025, compared to net income of $21.8 million, or $0.48 per diluted share, for the second quarter of 2025, and net income of $23.0 million, or $0.50 per diluted share, for the third quarter of 2024. Results as of and for the period ending September 30, 2025 were significantly impacted by the acquisition of Bancorp Financial, Inc (“Bancorp Financial”) and its wholly owned subsidiary, Evergreen Bank Group, which closed effective July 1, 2025.

Adjusted net income, a non-GAAP financial measure that excludes certain nonrecurring items, as applicable, was $28.4 million, or $0.53 per diluted share, for the third quarter of 2025, compared to $22.8 million, or $0.50 per diluted share, for the second quarter of 2025, and $24.0 million, or $0.52 per diluted share, for the third quarter of 2024. The pre-tax 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 mortgage servicing rights (“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 second quarter of 2025 included the exclusion of $531,000 of MSRs mark to market losses and $810,000 of transaction-related expenses due to our acquisition of Bancorp Financial. The adjusting item impacting the third quarter of 2024 included the exclusion of $964,000 of MSRs mark to market losses and a $12,000 death benefit related adjustment to BOLI. 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 decreased $12.0 million in the third quarter of 2025 compared to the second quarter of 2025. The decrease was primarily due to a $10.3 million increase in interest expense due to a rise in deposit and borrowing balances from our acquisition of Bancorp Financial, a $17.2 million increase in provision for credit losses related to $13.2 million of day two valuations from our acquisition of Bancorp Financial and $6.5 million of provision expense, compared to $2.5 million in the prior linked quarter, related to loan growth as well as the impact of current period charge offs primarily in powersports and lease segments as well as a downgrade of one large commercial credit. In addition, a $19.7 million increase in noninterest expense was recorded in the third quarter of 2025, compared to the prior linked quarter, mainly due to costs incurred related to our acquisition of Bancorp Financial. The decreases to the current quarter’s net income were partially offset by a $28.8 million increase in interest and dividend income, primarily due to an increase in loan income from the loan portfolio acquired from Bancorp Financial, a $2.2 million increase in noninterest income, and a $4.2 million decrease in provision for income taxes. Net income decreased $13.1 million in the third quarter of 2025 compared to the third quarter of 2024, primarily due to an increase of $5.8 million in interest expense, a $17.7 million increase in provision for credit losses, and a $23.9 million increase in noninterest expense, all stemming from our acquisition of Bancorp Financial. The decreases in net income compared to the prior year like quarter were partially offset by a $28.0 million increase in interest and dividend income, a $2.5 million increase in noninterest income, and a $3.7 million decrease in provision for income taxes.

Operating Results

●	Third quarter 2025 net income was $9.9 million, reflecting a $12.0 million decrease from the second quarter of 2025, and a decrease of $13.1 million from the third quarter of 2024. Adjusted net income, as defined above, was $28.4 million for the third quarter of 2025, an increase of $5.5 million from adjusted net income for the second quarter of 2025, and an increase of $4.3 million from adjusted net income for the third quarter of 2024.
●	Net interest and dividend income was $82.8 million for the third quarter of 2025, reflecting an increase of $18.5 million, or 28.9%, from the second quarter of 2025, and an increase of $22.2 million, or 36.6%, from the third quarter of 2024.
---	---
●	We recorded a net provision for credit losses of $19.7 million in the third quarter of 2025 compared to a net provision for credit losses of $2.5 million in the second quarter of 2025 and net provision for credit losses of $2.0 million in the third quarter of 2024. Provision for credit loss expense in the third quarter of 2025 included the impact of the Bancorp Financial day two purchase accounting.
---	---
●	Noninterest income was $13.1 million for the third quarter of 2025, an increase of $2.2 million, or 20.3%, compared to $10.9 million for the second quarter of 2025, and an increase of $2.5 million, or 23.9%, compared to $10.6 million for the third quarter of 2024.
---	---
●	Noninterest expense was $63.2 million for the third quarter of 2025, an increase of $19.7 million, or 45.5%, compared to $43.4 million for the second quarter of 2025, and an increase of $23.9 million, or 60.7%, compared to $39.3 million for the third quarter of 2024.
---	---
●	We had a provision for income tax of $3.2 million for the third quarter of 2025, compared to a provision for income tax of $7.4 million for the second quarter of 2025 and a provision for income tax of $6.9 million for the third quarter of 2024. The effective tax rate for each of the periods presented was 24.5%, 25.3%, and 23.1%, respectively.
---	---
●	On October 21, 2025, our Board of Directors declared a cash dividend of $0.07 per share of common stock, payable on November 10, 2025, to stockholders of record as of October 31, 2025.
---	---

Financial Highlights


	Quarters Ended
(Dollars in thousands)	September 30,			June 30,			September 30,
	2025			2025			2024
Balance sheet summary
Total assets	$	6,991,754		$	5,701,294		$	5,671,760
Total securities available-for-sale		1,157,480			1,177,688			1,190,854
Total loans		5,265,014			3,998,667			3,991,078
Total deposits		5,760,250			4,798,439			4,465,424
Total liabilities		6,125,069			4,982,645			5,010,370
Total equity		866,685			718,649			661,390

Total tangible assets	$	6,836,565		$	5,588,090		$	5,575,789
Total tangible equity		711,496			605,445			565,419

Income statement summary
Net interest income	$	82,775		$	64,234		$	60,578
Provision for credit losses		19,653			2,500			2,000
Noninterest income		13,109			10,898			10,581
Noninterest expense		63,163			43,419			39,308
Net income		9,871			21,822			22,951
Effective tax rate		24.46	%		25.30	%		23.11	%

Profitability ratios
Return on average assets (ROAA)		0.56	%		1.53	%		1.63	%
Return on average equity (ROAE)		4.61			12.39			14.29
Net interest margin (tax-equivalent)		5.05			4.85			4.64
Efficiency ratio		64.46			55.99			53.38
Return on average tangible common equity (ROATCE) ^1^		6.16			15.29			17.14
Tangible common equity to tangible assets (TCE/TA)		10.41			10.83			10.14

Per share data
Diluted earnings per share	$	0.18		$	0.48		$	0.50
Tangible book value per share		13.51			13.44			12.61

Company capital ratios^2^
Common equity tier 1 capital ratio		12.44	%		13.77	%		12.86	%
Tier 1 risk-based capital ratio		12.85			14.31			13.39
Total risk-based capital ratio		15.10			16.55			15.62
Tier 1 leverage ratio		11.21			11.83			11.38

Bank capital ratios ^2, 3^
Common equity tier 1 capital ratio		13.14	%		14.02	%		13.49	%
Tier 1 risk-based capital ratio		13.14			14.02			13.49
Total risk-based capital ratio		14.39			14.99			14.45
Tier 1 leverage ratio		11.45			11.59			11.46

^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 “On July 1, 2025, 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 are extremely excited to welcome Evergreen Bank customers and employees to the Old Second team and pleased to deliver solid core business results in the first quarter inclusive of the acquisition. We are very encouraged about the trends and momentum in both our new and existing businesses including strong loan growth, encouraging pipelines and excellent core profitability. The systems integration of the two companies was completed without significant disruption and we continue to believe the combination will deliver exceptional value in the years ahead. Our initial estimates on earnings accretion at the announcement of the transaction appear conservative as asset yields are exceeding our expectations and our teams are continuing to make progress on operational efficiencies. We believe that the combination is exceptionally rare, for its size, in that book value dilution was relatively minimal and the deal itself substantially improves both our interest rate sensitivity position and already strong profitability. Third quarter return on average assets and return on average tangible common equity, adjusted to exclude acquisition related purchase accounting and deal costs, were 1.61% and 16.69%, respectively, the tax equivalent net interest margin was impressive at 5.05% and the efficiency ratio was a very healthy 52.10%.”

“The balance sheet as of September 30, 2025 is strong, liquid and well reserved with a common equity tier 1 ratio of 12.44%, a loan to deposit ratio of 91% and loan loss reserves to total loans of 1.43%. Based on the strength of the balance sheet and resilient income statement trends, Old Second elected in this fourth quarter to increase the common dividend by 17%, as we continue to regularly deliver dividend growth commensurate with the bank’s performance. We believe Old Second is well prepared for any economic environment and has the resources and momentum to focus on growth and additional strategic opportunities as they present themselves. We are excited for the future and proud of our progress in building a better Old Second for our customers, communities and stockholders.”

Asset Quality & Earning Assets

●	Nonperforming loans, comprised of nonaccrual loans plus loans past due 90 days or more and still accruing, totaled $48.0 million at September 30, 2025, $32.2 million at June 30, 2025, and $52.3 million at September 30, 2024. Nonperforming loans, as a percent of total loans, was 0.9% at September 30, 2025, 0.8% at June 30, 2025, and 1.3% at September 30, 2024. The $15.7 million increase in the third quarter of 2025 for nonperforming loans is driven by a $13.5 million increase to loans past due 90 days or more and still accruing, primarily comprised of two legacy relationships, the largest of which is in the process of renewal, as well as $2.3 million of powersport loans. Nonaccrual loans increased $2.2 million, due to inflows of $5.3 million, primarily related to one commercial real estate – investor relationship of $1.2 million, partially offset by outflows of $3.1 million. Nonaccrual loan outflows include an $859,000 loan processed for repossession, $764,000 of partial principal reductions from payments and partial charge-offs on loans, and $853,000 of loans charged off.
●	Total loans were $5.27 billion at September 30, 2025, reflecting an increase of $1.27 billion compared to both June 30, 2025 and September 30, 2024. The increase from both prior periods is primarily driven by the $1.19 billion of loans acquired in our acquisition of Bancorp Financial. The loans acquired provided a significant increase to our consumer lending portfolio including the new powersport loan segment. Excluding loans purchased from the Bancorp Financial acquisition, organic loan growth, net of paydowns, totaled $72.3 million, or 1.8%, compared to June 30, 2025 total loans. Average loans (including loans held-for-sale) for the third quarter of 2025 totaled $5.22 billion, reflecting an increase of $1.26 billion from the second quarter of 2025, and an increase of $1.25 billion from the third quarter of 2024.
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●	Available-for-sale securities totaled $1.16 billion at September 30, 2025, compared to $1.18 billion at June 30, 2025 and $1.19 billion at September 30, 2024. The unrealized mark to market loss on securities totaled $47.7 million as of September 30, 2025, compared to $54.7 million as of June 30, 2025, and $56.2 million as of September 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 September 30, 2025, we had security purchases of $21.2 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, compared to security purchases of $79.6 million and security maturities, calls and paydowns of $53.2 million during the quarter ended June 30, 2025. During the quarter ended September 30, 2024, we had security purchases of $22.7 million and $31.3 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
	September 30, 2025						June 30, 2025						September 30, 2024
	Average			Income /		Rate	Average			Income /		Rate	Average			Income /		Rate
	Balance			Expense		%	Balance			Expense		%	Balance			Expense		%
Assets
Interest earning deposits with financial institutions	$	119,619		$	1,255	4.16	$	166,366		$	1,784	4.30	$	48,227		$	616	5.08
Securities:
Taxable		1,016,279			9,872	3.85		1,040,472			9,959	3.84		1,010,379			9,113	3.59
Non-taxable (TE)^1^		149,621			1,563	4.14		149,651			1,556	4.17		163,569			1,634	3.97
Total securities (TE)^1^		1,165,900			11,435	3.89		1,190,123			11,515	3.88		1,173,948			10,747	3.64
FHLBC and FRBC Stock		25,961			381	5.82		19,200			273	5.70		30,268			497	6.53
Loans and loans held-for-sale^1, 2^		5,217,526			91,342	6.95		3,960,650			62,002	6.28		3,966,717			64,566	6.48
Total interest earning assets		6,529,006			104,413	6.34		5,336,339			75,574	5.68		5,219,160			76,426	5.83
Cash and due from banks		51,357			-	-		47,875			-	-		54,279			-	-
Allowance for credit losses on loans		(72,354)			-	-		(41,544)			-	-		(42,683)			-	-
Other noninterest earning assets		491,244			-	-		394,036			-	-		384,386			-	-
Total assets	$	6,999,253					$	5,736,706					$	5,615,142

Liabilities and Stockholders' Equity
NOW accounts	$	668,439		$	825	0.49	$	653,334		$	681	0.42	$	553,906		$	714	0.51
Money market accounts		954,964			4,979	2.07		832,777			3,920	1.89		693,315			3,260	1.87
Savings accounts		1,175,011			3,239	1.09		938,836			1,005	0.43		895,086			886	0.39
Time deposits		1,347,455			10,896	3.21		695,946			4,508	2.60		651,663			5,539	3.38
Interest bearing deposits		4,145,869			19,939	1.91		3,120,893			10,114	1.30		2,793,970			10,399	1.48
Securities sold under repurchase agreements		33,382			60	0.71		35,419			56	0.63		45,420			93	0.81
Other short-term borrowings		25,978			308	4.70		-			-	-		305,489			4,185	5.45
Junior subordinated debentures		25,774			288	4.43		25,773			288	4.48		25,773			270	4.17
Subordinated debentures		59,521			547	3.65		59,500			546	3.68		59,436			547	3.66
Notes payable and other borrowings		14,806			158	4.23		-			-	-		-			-	-
Total interest bearing liabilities		4,305,330			21,300	1.96		3,241,585			11,004	1.36		3,230,088			15,494	1.91
Noninterest bearing deposits		1,782,193			-	-		1,729,287			-	-		1,691,450			-	-
Other liabilities		61,732			-	-		59,580			-	-		54,453			-	-
Stockholders' equity		849,998			-	-		706,254			-	-		639,151			-	-
Total liabilities and stockholders' equity	$	6,999,253					$	5,736,706					$	5,615,142
Net interest income (GAAP)				$	82,775					$	64,234					$	60,578
Net interest margin (GAAP)						5.03						4.83						4.62

Net interest income (TE)^1^				$	83,113					$	64,570					$	60,932
Net interest margin (TE)^1^						5.05						4.85						4.64
Interest bearing liabilities to earning assets		65.94	%					60.75	%					61.89	%

^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 $1.2 million for the third quarter of 2025, loan fee income of $365,000 for the second quarter of 2025, and loan fee expense of $155,000 for the third quarter of 2024. Nonaccrual loans are included in the above stated average balances.

The increased yield of 66 basis points on interest earning assets compared to the linked period was primarily driven by higher interest rate consumer credits and related accretion on the loan portfolio acquired from Bancorp Financial, as the average yield on the acquired portfolio prior to accretion was 8.65%. 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 51 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 $1.25 billion in the third quarter of 2025 compared to the prior year like quarter, with a corresponding increase to the tax equivalent yield on the loan portfolio of 47 basis points year over year due to the Bancorp Financial acquisition. Average balances of securities available for sale decreased $8.0 million in the third 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 25 basis points year over year primarily due to variable security rate resets and higher yielding investments.

Average balances of interest bearing deposit accounts have increased significantly since the second quarter of 2025 through the third quarter of 2025, from $3.12 billion to $4.15 billion, as all average interest bearing deposit account categories increased as a result of the Bancorp Financial acquisition. The Bancorp Financial acquisition drove the increase in interest bearing deposit expenses of $9.8 million compared to the prior linked quarter, which increased the cost of interest bearing deposits from 130 basis points for the quarter ended June 30, 2025, to 191 basis points for the quarter ended September 30, 2025. We will continue to control the cost of funds by monitoring market activity as well as allowing previous exception-priced deposits to runoff naturally. A 66 basis point increase in savings accounts and a 61 basis point increase in time deposits for the quarter ended September 30, 2025 drove a significant portion of the increase from the prior linked quarter, as a majority of the accounts assumed from Bancorp Financial were within these deposit categories. The cost of interest bearing deposits increased 43 basis points for the quarter ended September 30, 2025 from 148 basis points for the quarter ended September 30, 2024. A 20 basis point increase in the cost of money market accounts and a 70 basis point increase in savings accounts drove a significant portion of the overall increase from the prior year like quarter.

Borrowing costs increased in the third quarter of 2025, compared to the second quarter of 2025, primarily due to the $26.0 million increase in average other short-term borrowings stemming from an increase in average daily FHLB advances over the prior linked quarter as well as $14.8 million in notes payable and other borrowings due to long term FHLB advances assumed from Bancorp Financial. The decrease of $279.5 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 $3.9 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 noticeable growth over the prior linked quarter periods and over the prior year like quarter presented above. Our net interest margin (GAAP) increased 20 basis points to 5.03% for the third quarter of 2025, compared to 4.83% for the second quarter of 2025, and increased 41 basis points compared to 4.62% for the third quarter of 2024. Our net interest margin (TE) increased 20 basis points to 5.05% for the third quarter of 2025, compared to 4.85% for the second quarter of 2025, and increased 41 basis points compared to 4.64% for the third quarter of 2024. The increase in net interest margin for the third quarter of 2025, compared to the prior linked quarter, was driven by the Bancorp Financial acquisition, market interest rates, and one more day in the period with larger interest earning asset balances. The net interest margin increased in the third quarter of 2025, compared to the prior year like quarter, primarily due to 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


											September 30, 2025
Noninterest Income	Three Months Ended									Percent Change From
(Dollars in thousands)	September 30,			June 30,			September 30,				June 30,		September 30,
	2025		****	2025		****	2024		****		2025	****	2024
Wealth management	$	3,515		$	3,103		$	2,787			13.3		26.1
Service charges on deposits		2,920			2,788			2,646			4.7		10.4
Residential mortgage banking revenue
Secondary mortgage fees		92			84			84			9.5		9.5
MSRs mark to market loss		(389)			(531)			(964)			26.7		59.6
Mortgage servicing income		469			472			466			(0.6)		0.6
Net gain on sales of mortgage loans		620			550			507			12.7		22.3
Total residential mortgage banking revenue		792			575			93			37.7		751.6
Securities gains, net		(1)			-			(1)			(100.0)		-
Change in cash surrender value of BOLI		1,175			690			860			70.3		36.6
Death benefit realized on BOLI		430			-			12			100.0		N/M
Card related income		2,739			2,716			2,589			0.8		5.8
Other income		1,539			1,026			1,595			50.0		(3.5)
Total noninterest income	$	13,109		$	10,898		$	10,581			20.3		23.9

N/M - Not meaningful

Noninterest income increased $2.2 million, or 20.3%, in the third quarter of 2025, compared to the second quarter of 2025, and increased $2.5 million, or 23.9%, compared to the third quarter of 2024. The increase from the second quarter of 2025 was primarily driven by a $412,000 increase in wealth management income based on continued growth in the advisory and estate planning, a $485,000 increase in the cash surrender value of BOLI due to changes in market interest rates, a $430,000 death benefit realized on BOLI recorded during the quarter, and a $513,000 increase in other income driven by powersport fees provided by the legacy Bancorp Financial loan portfolio acquired.

The increase in noninterest income of $2.5 million in the third quarter of 2025, compared to the third quarter of 2024, is primarily due to a $728,000 increase in wealth management income from growth in advisory and estate fees, a $315,000 increase in the cash surrender value of BOLI due to changes in market interest rates, and a $430,000 death benefit realized on BOLI recorded in the third quarter of 2025, compared to a $12,000 death benefit adjustment recorded in the third quarter of 2024. Also contributing to the increase in noninterest income during the quarter was a $699,000 increase in residential mortgage banking revenue mainly due to a $575,000 increase in MSRs mark to market valuations.

Noninterest Expense


										September 30, 2025
Noninterest Expense	Three Months Ended									Percent Change From
(Dollars in thousands)	September 30,			June 30,			September 30,			June 30,		September 30,
	2025		****	2025		****	2024		****	2025	****	2024
Salaries	$	31,360		$	19,119		$	17,665		64.0		77.5
Officers' incentive		3,279			2,921			2,993		12.3		9.6
Benefits and other		5,084			4,910			4,018		3.5		26.5
Total salaries and employee benefits		39,723			26,950			24,676		47.4		61.0
Occupancy, furniture and equipment expense		4,937			4,477			3,876		10.3		27.4
Computer and data processing		4,002			2,692			2,375		48.7		68.5
FDIC insurance		854			642			632		33.0		35.1
Net teller & bill paying		691			670			570		3.1		21.2
General bank insurance		437			328			320		33.2		36.6
Amortization of core deposit intangible asset		1,251			1,022			570		22.4		119.5
Advertising expense		545			320			299		70.3		82.3
Card related expense		1,708			1,489			1,458		14.7		17.1
Legal fees		432			388			202		11.3		113.9
Consulting & management fees		2,471			527			480		368.9		414.8
Other real estate owned expense, net		128			35			242		265.7		(47.1)
Other expense		5,984			3,879			3,608		54.3		65.9
Total noninterest expense	$	63,163		$	43,419		$	39,308		45.5		60.7
Efficiency ratio (GAAP)^1^		64.46	%		55.99	%		53.38	%
Adjusted efficiency ratio (non-GAAP)^2^		52.10	%		54.54	%		52.31	%

^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 third quarter of 2025 increased $19.7 million, or 45.5%, compared to the second quarter of 2025, and increased $23.9 million, or 60.7%, compared to the third quarter of 2024. The increase in the third quarter of 2025, compared to the second quarter of 2025, was primarily attributable to a $12.8 million increase in salaries and employee benefits, of which $8.4 million was due to change in control, retention, and severance payouts related to the Bancorp Financial acquisition. The increase in the third quarter of 2025 was also attributable to a $1.3 million increase in computer and data processing expenses, a $1.9 million increase in consulting & management fees, and a $2.1 million increase in other expenses, which were primarily due to costs incurred as a result of our acquisition of Bancorp Financial.

The year over year increase in noninterest expense is primarily attributable to a $15.0 million increase in salaries and employee benefits, primarily due to $8.4 million of change in control, retention, and severance payouts related to the Bancorp Financial acquisition as well as increases in annual base salary rates, officers’ incentives, and restricted stock expense in the third quarter of 2025. Also contributing to the increase was a $1.1 million increase in occupancy, furniture and equipment, a $1.6 million increase in computer and data processing expenses, a $681,000 increase in core deposit intangible, a $2.0 million increase in consulting & management fees, and a $2.4 million increase in other expense primarily due to the effect of the First Merchants (“FRME”) branches purchased in December 2024 as well as costs associated with our acquisition of Bancorp Financial. 8

Earning Assets


							September 30, 2025
Loans	As of						Percent Change From
(Dollars in thousands)	September 30,		June 30,		September 30,		June 30,		September 30,
	2025		2025		2024		2025	****	2024
Commercial	$	786,095	$	718,927	$	814,668	9.3		(3.5)
Leases		550,201		524,513		458,317	4.9		20.0
Commercial real estate – investor		1,257,328		1,118,782		1,045,060	12.4		20.3
Commercial real estate – owner occupied		680,412		652,449		718,265	4.3		(5.3)
Construction		176,387		251,692		206,458	(29.9)		(14.6)
Residential real estate – investor		69,362		50,976		50,332	36.1		37.8
Residential real estate – owner occupied		231,547		220,672		208,227	4.9		11.2
Multifamily		378,213		333,787		375,394	13.3		0.8
HELOC		234,885		111,265		102,611	111.1		128.9
Powersport		715,498		-		-	N/M		N/M
Other^1^		185,086		15,604		11,746	N/M		N/M
Total loans	$	5,265,014	$	3,998,667	$	3,991,078	31.7		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 increased by $1.27 billion at September 30, 2025, compared to both June 30, 2025, and September 30, 2024. The increase to total loans compared to both periods presented 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, the Bank achieved organic loan growth, net of paydowns, of $72.3 million in the third quarter of 2025 compared to the linked quarter, primarily driven by commercial, leases, and commercial real estate.


										September 30, 2025
Securities		As of								Percent Change From
(Dollars in thousands)		September 30,			June 30,			September 30,		June 30,		September 30,
	****	2025		****	2025		****	2024		2025	****	2024
Securities available-for-sale, at fair value
U.S. Treasury		$	190,670		$	190,446		$	194,188	0.1		(1.8)
U.S. government agencies			38,264			38,141			37,976	0.3		0.8
U.S. government agency mortgage-backed			93,051			96,083			96,413	(3.2)		(3.5)
States and political subdivisions			210,675			208,814			224,795	0.9		(6.3)
Collateralized mortgage obligations			378,236			395,014			384,271	(4.2)		(1.6)
Asset-backed securities			47,802			48,119			63,947	(0.7)		(25.2)
Collateralized loan obligations			198,098			201,071			189,264	(1.5)		4.7
Equity securities			684			-			-	100.0		100.0
Total securities available-for-sale		$	1,157,480		$	1,177,688		$	1,190,854	(1.7)		(2.8)

Our securities available-for-sale portfolio totaled $1.16 billion as of September 30, 2025, reflecting a decrease of $20.2 million from June 30, 2025, and a decrease of $33.4 million from September 30, 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


										September 30, 2025
Nonperforming assets	As of									Percent Change From
(Dollars in thousands)	September 30,			June 30,			September 30,			June 30,	September 30,
	2025		****	2025		****	2024		****	2025	2024
Nonaccrual loans	$	34,126		$	31,902		$	52,171		7.0	(34.6)
Loans past due 90 days or more and still accruing interest		13,859			345			109		N/M	N/M
Total nonperforming loans		47,985			32,247			52,280		48.8	(8.2)
Other real estate owned		6,416			6,486			8,202		(1.1)	(21.8)
Repossessed Assets ^(1)^		2,088			234			-		792.3	N/M
Total nonperforming assets	$	56,489		$	38,967		$	60,482		45.0	(6.6)

30-89 days past due loans and still accruing interest	$	22,415		$	14,652		$	28,480
Nonaccrual loans to total loans		0.6	%		0.8	%		1.3	%
Nonperforming loans to total loans		0.9	%		0.8	%		1.3	%
Nonperforming assets to total loans plus OREO and repossessed assets		1.1	%		1.0	%		1.5	%
Purchased credit-deteriorated loans to total loans		1.6	%		0.2	%		0.4	%

Allowance for credit losses	$	75,037		$	42,990		$	44,422
Allowance for credit losses to total loans		1.4	%		1.1	%		1.1	%
Allowance for credit losses to nonaccrual loans		219.9	%		134.8	%		85.1	%

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, ABC Bank, and Bancorp Financial totaled $84.7 million, net of purchase accounting adjustments, at September 30, 2025. No PCD loans were acquired with our First Merchants 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.


										September 30, 2025
Classified loans		As of								Percent Change From
(Dollars in thousands)		September 30,			June 30,			September 30,		June 30,		September 30,
	****	2025		****	2025		****	2024		2025	****	2024
Commercial		$	50,680		$	23,354		$	35,043	117.0		44.6
Leases			1,277			1,346			746	(5.1)		71.2
Commercial real estate – investor			2,853			14,752			21,652	(80.7)		(86.8)
Commercial real estate – owner occupied			72,020			51,335			41,820	40.3		72.2
Construction			1,612			1,624			5,765	(0.7)		(72.0)
Residential real estate – investor			1,228			1,201			1,180	2.2		4.1
Residential real estate – owner occupied			1,839			1,707			2,612	7.7		(29.6)
Multifamily			1,183			1,099			3,269	7.6		(63.8)
HELOC			1,538			1,180			736	30.3		109.0
Powersport			-			-			-	-		-
Other^1^			30			22			-	36.4		N/M
Total classified loans		$	134,260		$	97,620		$	112,823	37.5		19.0

N/M - Not meaningful.

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

Classified loans as of September 30, 2025 increased by $36.6 million from June 30, 2025, and increased by $21.4 million from September 30, 2024. The net increase from the second quarter of 2025 included inflows of $62.9 million, driven by downgrades of two commercial relationships for $19.9 million, five commercial real estate – owner occupied relationships for $17.6 million, and 14 loans acquired from Bancorp Financial for $10.7 million. The increase of classified loans in the third quarter of 2025 were offset by $26.2 million of outflows, which primarily consist of $14.2 million of paid off loans, $8.9 million of loans upgraded, and $948,000 of 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 September 30, 2025, our allowance for credit losses (“ACL”) on loans totaled $75.0 million, and our ACL on unfunded commitments, included in other liabilities, totaled $2.3 million. In relation to the acquisition, 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 third quarter of 2025 standard provision expense consisted of a $6.5 million provision for credit losses on loans, and a $38,000 provision for credit losses on unfunded commitments. The increased provision for credit losses for the third quarter of 2025 is driven by current period charge-offs within the powersports and lease portfolios as well as a downgrade to substandard on one large commercial credit. 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 $5.1 million in the third quarter of 2025, primarily within the powersport portfolio. The second quarter of 2025 provision expense of $2.5 million consisted of a $2.2 million provision for credit losses on loans, and $277,000 provision for credit losses on unfunded commitments. We recorded net charge-offs of $785,000 in the second quarter of 2025. In the third quarter of 2024, we recorded a provision expense of $2.0 million, which consisted of a $2.0 million provision for credit losses on loans and a $2,000 provision for credit losses on unfunded commitments. We recorded net recoveries of $155,000 in the third quarter of 2024. Our ACL on loans to total loans was 1.4% as of September 30, 2025, and 1.1% as of both June 30, 2025, and September 30, 2024.

The ACL on unfunded commitments totaled $2.3 million as of both September 30, 2025 and June 30, 2025, and $2.5 million as of September 30, 2024.

Net Charge-off Summary


Loan charge–offs, net of recoveries	Quarters Ended
(Dollars in thousands)	September 30,		% of	June 30,		% of	September 30,		% of
	2025		Total ^2^	2025		Total ^2^	2024		Total ^2^
Commercial	$	385	7.5	$	1,093	139.2	$	(7)	4.5
Leases		848	16.6		(3)	(0.4)		43	(27.7)
Commercial real estate – Investor		(15)	(0.3)		(14)	(1.8)		(149)	96.1
Commercial real estate – Owner occupied		(2)	-		(1)	(0.1)		(44)	28.4
Construction		(46)	(0.9)		(337)	(42.9)		-	-
Residential real estate – Investor		(2)	-		(2)	(0.3)		(18)	11.6
Residential real estate – Owner occupied		(7)	(0.1)		(8)	(1.0)		(11)	7.1
Multifamily		181	3.5		-	-		-	-
HELOC		(19)	(0.4)		(10)	(1.3)		(14)	9.0
Powersport		2,980	58.3		-	-		-	-
Other^1^		805	15.8		67	8.6		45	(29.0)
Net charge–offs / (recoveries)	$	5,108	100.0	$	785	100.0	$	(155)	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 third quarter of 2025 were $6.0 million, compared to $1.2 million for the second quarter of 2025 and $165,000 for the third quarter of 2024. Gross recoveries were $938,000 for the third quarter of 2025, compared to $447,000 for the second quarter of 2025, and $320,000 for the third 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 $5.76 billion at September 30, 2025, an increase of $961.8 million, or 20.0%, compared to $4.80 billion at June 30, 2025, as a result of deposits assumed from Bancorp Financial. All deposit categories increased due to the assumed deposits, the largest being time deposits which increased $564.1 million followed by savings with an increase of $213.5 million.

Total quarterly average deposits for the year over year period increased $1.44 billion, or 32.2%, driven by an increase in average time deposits of $695.8 million, NOW and money markets combined of $376.2 million, savings accounts of $279.9 million, and demand deposits of $90.7 million. The overall increase in quarterly average deposits for the year over year period was primarily due to the acquisition of First Merchants branches in December 2024 and Bancorp Financial in July 2025. Our quarterly average time deposits as of September 30, 2025 include $96.9 million of brokered deposits, compared to none at September 30, 2024. These brokered deposits were assumed with the acquisition of Bancorp Financial and are running off over the next few years.

Borrowings

As of September 30, 2025, significant changes included $165.0 million in other short-term borrowings, compared to no short-term borrowings as of June 30, 2025 and $335.0 million as of September 30, 2024, all of which were short-term FHLB advances. In addition, we had $15.0 million of long-term FHLB advances assumed with the Bancorp Financial acquisition, which are reported in notes payable and other borrowings on the balance sheet.

Capital

During the third quarter of 2025, the Company issued 7.9 million common shares with a par value of $1.00 per share to existing shareholders of Bancorp Financial as part of the acquisition. The newly issued shares provided $140.5 million of capital. In addition, as part of the Company’s common stock Repurchase Program, as approved by the board of directors on December 17, 2024, the Company repurchased 326,854 shares at $18.00 per share for a total reduction to capital of $5.9 million during the third quarter of 2025, as these shares are held in treasury stock.

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 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 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, October 23, 2025, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss our third quarter 2025 financial results. Investors may listen to our call via telephone by dialing 888-506-0062, using Entry Code: 740004. 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 October 30, 2025, by dialing 877-481-4010, using Conference ID: 53047. 13

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands)


		(unaudited)
		September 30,		December 31,
	****	2025		2024
Assets
Cash and due from banks		$	53,099	$	52,175
Interest earning deposits with financial institutions			63,426		47,154
Cash and cash equivalents			116,525		99,329
Securities available-for-sale, at fair value			1,157,480		1,161,701
Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock			28,282		19,441
Loans held-for-sale			1,463		1,556
Loans			5,265,014		3,981,336
Less: allowance for credit losses on loans			75,037		43,619
Net loans			5,189,977		3,937,717
Premises and equipment, net			87,714		87,311
Other real estate owned			6,416		21,617
Mortgage servicing rights, at fair value			9,549		10,374
Goodwill			130,262		93,260
Core deposit intangible			24,927		22,031
Bank-owned life insurance (“BOLI”)			129,057		112,751
Deferred tax assets, net			33,374		26,619
Other assets			76,728		55,670
Total assets		$	6,991,754	$	5,649,377

Liabilities
Deposits:
Noninterest bearing demand		$	1,738,028	$	1,704,920
Interest bearing:
Savings, NOW, and money market			2,763,990		2,315,134
Time			1,258,232		748,677
Total deposits			5,760,250		4,768,731
Securities sold under repurchase agreements			24,290		36,657
Other short-term borrowings			165,000		20,000
Junior subordinated debentures			25,774		25,773
Subordinated debentures			59,531		59,467
Notes payable and other borrowings			14,812		-
Other liabilities			75,412		67,715
Total liabilities			6,125,069		4,978,343

Stockholders’ Equity
Common stock			53,015		44,908
Additional paid-in capital			340,108		205,284
Retained earnings			512,131		469,165
Accumulated other comprehensive loss, net			(32,294)		(47,748)
Treasury stock			(6,275)		(575)
Total stockholders’ equity			866,685		671,034
Total liabilities and stockholders’ equity		$	6,991,754	$	5,649,377

Old Second Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income

(In thousands, except share data)


		(unaudited)						(unaudited)
		Three Months Ended September 30,						Nine Months Ended September 30,
	****	2025		****	2024		****	2025		****	2024
Interest and dividend income
Loans, including fees		$	91,301		$	64,528		$	214,850		$	189,352
Loans held-for-sale			31			27			92			60
Securities:
Taxable			9,872			9,113			29,058			25,757
Tax exempt			1,235			1,291			3,724			3,889
Dividends from FHLBC and FRBC stock			381			497			1,127			1,716
Interest bearing deposits with financial institutions			1,255			616			4,027			1,851
Total interest and dividend income			104,075			76,072			252,878			222,625
Interest expense
Savings, NOW, and money market deposits			9,043			4,860			19,562			13,214
Time deposits			10,896			5,539			20,233			14,541
Securities sold under repurchase agreements			60			93			184			262
Other short-term borrowings			308			4,185			325			12,080
Junior subordinated debentures			288			270			864			838
Subordinated debentures			547			547			1,639			1,639
Notes payable and other borrowings			158			-			158			-
Total interest expense			21,300			15,494			42,965			42,574
Net interest and dividend income			82,775			60,578			209,913			180,051
Provision for credit losses			19,653			2,000			24,553			9,250
Net interest and dividend income after provision for credit losses			63,122			58,578			185,360			170,801
Noninterest income
Wealth management			3,515			2,787			9,707			8,127
Service charges on deposits			2,920			2,646			8,427			7,569
Secondary mortgage fees			92			84			249			199
Mortgage servicing rights mark to market loss			(389)			(964)			(1,490)			(1,108)
Mortgage servicing income			469			466			1,421			1,467
Net gain on sales of mortgage loans			620			507			1,634			1,289
Securities gains, net			(1)			(1)			(1)			-
Change in cash surrender value of BOLI			1,175			860			2,363			2,852
Death benefit realized on BOLI			430			12			430			905
Card related income			2,739			2,589			7,867			7,542
Other income			1,539			1,595			3,601			3,367
Total noninterest income			13,109			10,581			34,208			32,209
Noninterest expense
Salaries and employee benefits			39,723			24,676			93,666			72,412
Occupancy, furniture and equipment			4,937			3,876			13,962			11,702
Computer and data processing			4,002			2,375			9,042			6,814
FDIC insurance			854			632			2,124			1,915
Net teller & bill paying			691			570			2,019			1,669
General bank insurance			437			320			1,095			941
Amortization of core deposit intangible			1,251			570			3,310			1,724
Advertising expense			545			299			1,032			963
Card related expense			1,708			1,458			4,577			4,058
Legal fees			432			202			1,292			666
Consulting & management fees			2,471			480			3,424			1,613
Other real estate expense, net			128			242			2,036			201
Other expense			5,984			3,608			13,508			10,748
Total noninterest expense			63,163			39,308			151,087			115,426
Income before income taxes			13,068			29,851			68,481			87,584
Provision for income taxes			3,197			6,900			16,958			21,430
Net income		$	9,871		$	22,951		$	51,523		$	66,154

Basic earnings per share		$	0.19		$	0.52		$	1.08		$	1.48
Diluted earnings per share			0.18			0.50			1.06			1.45
Dividends declared per share			0.06			0.05			0.18			0.15


Ending common shares outstanding	52,664,535	44,851,091	52,664,535	44,851,091
Weighted-average basic shares outstanding	52,686,391	44,850,325	47,597,529	44,818,693
Weighted-average diluted shares outstanding	53,509,690	45,679,140	48,385,283	45,628,606

Old Second Bancorp, Inc. and Subsidiaries

Quarterly Consolidated Average Balance

(In thousands, unaudited)


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

Securities available-for-sale, at fair value			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			25,961			19,200			19,441			27,493		30,268			27,574		31,800
Loans held-for-sale			1,975			2,375			1,343			2,027		1,557			1,050		746
Loans			5,215,551			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			72,354			41,544			43,543			45,040		42,683			43,468		44,295
Net loans			5,143,197			3,916,731			3,914,187			3,955,974		3,922,477			3,913,986		3,974,336

Premises and equipment, net			88,304			87,081			87,709			84,364		82,977			82,332		80,493
Other real estate owned			6,464			2,099			13,388			20,136		7,471			4,657		5,123
Mortgage servicing rights, at fair value			9,632			9,856			10,211			10,060		10,137			10,754		10,455
Goodwill			127,873			93,232			93,253			88,320		86,477			86,477		86,477
Core deposit intangible			25,539			20,462			21,490			12,799		9,768			10,340		10,913
Bank-owned life insurance ("BOLI")			128,870			113,326			112,848			112,243		110,901			110,440		109,867
Deferred tax assets, net			30,375			23,549			25,489			23,549		25,666			32,969		31,323
Other assets			74,187			44,431			43,506			43,572		50,989			50,423		49,681
Total other assets			491,244			394,036			407,894			395,043		384,386			388,392		384,332
Total assets		$	6,999,253		$	5,736,706		$	5,674,317		$	5,664,658	$	5,615,142		$	5,615,458	$	5,676,723

Liabilities
Deposits:
Noninterest bearing demand		$	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			2,798,414			2,424,947			2,370,408			2,195,608		2,142,307			2,195,898		2,202,485
Time			1,347,455			695,946			725,314			692,001		651,663			610,705		558,463
Total deposits			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			33,382			35,419			34,529			39,982		45,420			37,430		30,061
Other short-term borrowings			25,978			-			1,444			204,783		305,489			242,912		332,198
Junior subordinated debentures			25,774			25,773			25,773			25,773		25,773			25,773		25,773
Subordinated debentures			59,521			59,500			59,478			59,457		59,436			59,414		59,393
Notes payable and other borrowings			14,806						-			-		-			-		-
Other liabilities			61,732			59,580			70,411			67,067		54,453			68,530		60,024
Total liabilities			6,149,255			5,030,452			4,990,739			4,996,777		4,975,991			5,010,205		5,087,873

Stockholders' equity
Common stock			53,015			45,094			45,028			44,908		44,908			44,908		44,787
Additional paid-in capital			339,612			205,706			205,433			205,356		204,558			203,654		202,688
Retained earnings			500,075			497,224			479,011			462,631		443,435			424,262		405,201
Accumulated other comprehensive loss			(36,823)			(41,080)			(44,853)			(44,251)		(52,907)			(66,682)		(63,365)
Treasury stock			(5,881)			(690)			(1,041)			(763)		(843)			(889)		(461)
Total stockholders' equity			849,998			706,254			683,578			667,881		639,151			605,253		588,850
Total liabilities and stockholders' equity		$	6,999,253		$	5,736,706		$	5,674,317		$	5,664,658	$	5,615,142		$	5,615,458	$	5,676,723

Total Earning Assets		$	6,529,006		$	5,336,339		$	5,257,416		$	5,260,315	$	5,219,160		$	5,216,248	$	5,282,153
Total Interest Bearing Liabilities			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
	3rd Qtr		****	2nd Qtr		****	1st Qtr		****	4th Qtr		3rd Qtr		****	2nd Qtr		1st Qtr
Interest and Dividend Income
Loans, including fees	$	91,301		$	61,954		$	61,595		$	63,967	$	64,528		$	62,151	$	62,673
Loans held-for-sale		31			39			22			34		27			19		14
Securities:
Taxable		9,872			9,959			9,227			8,899		9,113			8,552		8,092
Tax exempt		1,235			1,229			1,260			1,275		1,291			1,292		1,306
Dividends from FHLB and FRBC stock		381			273			473			562		497			584		635
Interest bearing deposits with financial institutions		1,255			1,784			988			542		616			625		610
Total interest and dividend income		104,075			75,238			73,565			75,279		76,072			73,223		73,330
Interest Expense
Savings, NOW, and money market deposits		9,043			5,606			4,913			4,652		4,860			4,317		4,037
Time deposits		10,896			4,508			4,829			5,606		5,539			4,961		4,041
Securities sold under repurchase agreements		60			56			68			75		93			83		86
Other short-term borrowings		308			-			17			2,527		4,185			3,338		4,557
Junior subordinated debentures		288			288			288			289		270			288		280
Subordinated debentures		547			546			546			546		547			546		546
Notes payable and other borrowings		158			-			-			-		-			-		-
Total interest expense		21,300			11,004			10,661			13,695		15,494			13,533		13,547
Net interest and dividend income		82,775			64,234			62,904			61,584		60,578			59,690		59,783
Provision for credit losses		19,653			2,500			2,400			3,500		2,000			3,750		3,500
Net interest and dividend income after provision for credit losses		63,122			61,734			60,504			58,084		58,578			55,940		56,283
Noninterest Income
Wealth management		3,515			3,103			3,089			3,299		2,787			2,779		2,561
Service charges on deposits		2,920			2,788			2,719			2,657		2,646			2,508		2,415
Secondary mortgage fees		92			84			73			88		84			65		50
Mortgage servicing rights mark to market (loss) gain		(389)			(531)			(570)			385		(964)			(238)		94
Mortgage servicing income		469			472			480			475		466			513		488
Net gain on sales of mortgage loans		620			550			464			516		507			468		314
Securities (losses) gains, net		(1)			-			-			-		(1)			-		1
Change in cash surrender value of BOLI		1,175			690			498			767		860			820		1,172
Death benefit realized on BOLI		430			-			-			-		12			893		-
Card related income		2,739			2,716			2,412			2,572		2,589			2,577		2,376
Other income		1,539			1,026			1,036			851		1,595			742		1,030
Total noninterest income		13,109			10,898			10,201			11,610		10,581			11,127		10,501
Noninterest Expense
Salaries and employee benefits		39,723			26,950			26,993			25,613		24,676			23,424		24,312
Occupancy, furniture and equipment		4,937			4,477			4,548			4,457		3,876			3,899		3,927
Computer and data processing		4,002			2,692			2,348			2,659		2,375			2,184		2,255
FDIC insurance		854			642			628			628		632			616		667
Net teller & bill paying		691			670			658			575		570			578		521
General bank insurance		437			328			330			327		320			312		309
Amortization of core deposit intangible		1,251			1,022			1,037			716		570			574		580
Advertising expense		545			320			167			280		299			472		192
Card related expense		1,708			1,489			1,380			1,497		1,458			1,323		1,277
Legal fees		432			388			472			660		202			238		226
Consulting & management fees		2,471			527			426			883		480			797		336
Other real estate expense, net		128			35			1,873			2,019		242			(87)		46
Other expense		5,984			3,879			3,645			4,008		3,608			3,547		3,593
Total noninterest expense		63,163			43,419			44,505			44,322		39,308			37,877		38,241
Income before income taxes		13,068			29,213			26,200			25,372		29,851			29,190		28,543
Provision for income taxes		3,197			7,391			6,370			6,262		6,900			7,299		7,231
Net income	$	9,871		$	21,822		$	19,830		$	19,110	$	22,951		$	21,891	$	21,312

Basic earnings per share (GAAP)	$	0.19		$	0.49		$	0.44		$	0.42	$	0.52		$	0.48	$	0.48
Diluted earnings per share (GAAP)		0.18			0.48			0.43			0.42		0.50			0.48		0.47
Dividends paid per share		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
	September 30,			June 30,			September 30,
	2025		****	2025			2024
Net Income
Income before income taxes (GAAP)	$	13,068		$	29,213		$	29,851
Pre-tax income adjustments:
Provision for credit losses - Day Two		13,153			-			-
Death benefit related to BOLI		(430)			-			(12)
MSR losses		389			531			964
Merger related costs, net of gains on branch sales		11,508			810			471
Adjusted net income before taxes		37,688			30,554			31,274
Taxes on adjusted net income ^1^		9,325			7,730			7,232
Adjusted net income (non-GAAP)	$	28,363		$	22,824		$	24,042

Basic earnings per share (GAAP)	$	0.19		$	0.44		$	0.52
Diluted earnings per share (GAAP)		0.18			0.43			0.50
Adjusted basic earnings per share (non-GAAP)		0.54			0.46			0.54
Adjusted diluted earnings per share (non-GAAP)		0.53			0.45			0.52

Total average assets		6,999,253			5,736,706			5,615,142

Adjusted return on average assets (non-GAAP)		1.61	%		1.60	%		1.70	%

^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
	September 30,			June 30,			September 30,
	2025		****	2025			2024
Net Interest Margin
Interest income (GAAP)	$	104,075		$	75,238		$	76,072
Taxable-equivalent adjustment:
Loans		10			9			11
Securities		328			327			343
Interest income (TE)		104,413			75,574			76,426
Interest expense (GAAP)		21,300			11,004			15,494
Net interest income (TE)	$	83,113		$	64,570		$	60,932
Net interest income (GAAP)	$	82,775		$	64,234		$	60,578
Average interest earning assets	$	6,529,006		$	5,336,339		$	5,219,160
Net interest margin (TE)		5.05	%		4.85	%		4.64	%
Net interest margin (GAAP)		5.03	%		4.83	%		4.62	%


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

Noninterest expense	$	63,163		$	43,419		$	39,308		$	63,163		$	43,419		$	39,308
Less amortization of core deposit		1,251			1,022			570			1,251			1,022			570
Less other real estate expense, net		128			35			242			128			35			242
Less merger related costs, net of gains on branch sales		N/A			N/A			N/A			11,508			810			471
Noninterest expense less adjustments	$	61,784		$	42,362		$	38,496		$	50,276		$	41,552		$	38,025

Net interest income	$	82,775		$	64,234		$	60,578		$	82,775		$	64,234		$	60,578
Taxable-equivalent adjustment:
Loans		N/A			N/A			N/A			10			9			11
Securities		N/A			N/A			N/A			328			327			343
Net interest income including adjustments		82,775			64,234			60,578			83,113			64,570			60,932
Noninterest income		13,109			10,898			10,581			13,109			10,898			10,581
Less death benefit related to BOLI		430			-			12			430			-			12
Less securities gains		(1)			-			(1)			(1)			-			(1)
Less MSRs mark to market losses		(389)			(531)			(964)			(389)			(531)			(964)
Taxable-equivalent adjustment:
Change in cash surrender value of BOLI		N/A			N/A			N/A			312			184			229
Noninterest income including adjustments		13,069			11,429			11,534			13,381			11,613			11,763

Net interest income including adjustments plus noninterest income including adjustments	$	95,844		$	75,663		$	72,112		$	96,494		$	76,183		$	72,695
Efficiency ratio / Adjusted efficiency ratio		64.46	%		55.99	%		53.38	%		52.10	%		54.54	%		52.31	%

N/A - Not applicable.


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

Net income (loss) (GAAP)	$	9,871		$	21,822		$	22,951

Income before income taxes (GAAP)	$	13,068		$	29,213		$	29,851
Pre-tax income adjustments:
Provision for credit losses - Day Two		13,153			-			-
MSR losses (gains)		389			531			964
Merger-related costs, net of gains on branch sales		11,508			810			471
Death benefit related on BOLI		(430)			-			(12)
Amortization of core deposit intangibles		1,251			1,022			570
Adjusted net income, excluding intangibles amortization, before taxes		38,939			31,576			31,844
Taxes on adjusted net income ^1^		9,631			7,989			7,363
Adjusted net income, excluding intangibles amortization (non-GAAP)	$	29,308		$	23,587		$	24,481


Total Average Common Equity	$	849,998			706,254		$	639,151
Less Average goodwill and intangible assets		153,412			113,694			96,245
Average tangible common equity (non-GAAP)	$	696,586		$	592,560		$	542,906


Return on average common equity (GAAP)		4.61	%		12.39	%		14.29	%
Return on average tangible common equity (non-GAAP)		6.16	%		15.29	%		17.14	%
Adjusted return on average tangible common equity (non-GAAP)		16.69	%		15.97	%		17.94	%

1<br>Loan Portfolio Disclosures<br>AS OF SEPTEMBER 30, 2025<br>Exhibit 99.2
2<br>Portfolio Segment Outstanding Classified Allowance<br>Commercial (incl. Leases) $1,336 $52 0.94%<br>Commercial Real Estate Investor $1,257 $3 1.65%<br>Commercial Real Estate Owner Occ. $680 $72 1.23%<br>Construction $176 $2 0.84%<br>Residential Real Estate $301 $2 0.88%<br>Multifamily $378 $1 0.45%<br>HELOC $235 $2 1.54%<br>Powersport $715 - 2.38%<br>Other $187 - 3.50%<br>Total $5,265 $134 1.43%<br>Construction<br>3%<br>Commercial RE<br>Investor<br>24%<br>Commercial RE<br>Owner Occ.<br>13%<br>Commercial<br>(inc. Leases)<br>25%<br>Multifamily<br>7%<br>Residential<br>Real Estate<br>6%<br>HELOC<br>4%<br>Other (less than<br>$100 million)<br>4%<br>Powersport<br>14%<br>Loan Portfolio Composition (in millions)<br>Q3 2025 Loan Portfolio Disclosures<br>Total Loans and Allowance for Credit Losses Trend (in millions)<br>$3,969 $3,977 $3,991 $3,981 $3,940 $3,999 $5,265<br>$44 $42 $44 $44 $42 $43<br>$75<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>3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025<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>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 9/30/25<br>Office CRE Healthcare Other Criticized Loans/ Total Loans<br>Q3 2025 Loan Portfolio Disclosures<br>$6,920 $8,202<br>$2,256 $1,802 $4,988<br>$19,361<br>$1,076<br>$1,498<br>$6,416<br>$2,088<br> $-<br> $5,000<br> $10,000<br> $15,000<br> $20,000<br> $25,000<br>6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25<br>OREO OREO Under Contract Repossessed Assets<br>OREO and Repossessed Assets (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>Manufacturing C&I $60 - $8<br>Multifamily $58 - -<br>Consumer Solar $57 - -<br>Construction $43 - -<br>Industrial CRE $37 $28 -<br>HELOC $37 - -<br>Office CRE $33 - $3<br>Other (under $20 million) $99 $9 -<br>Total Purchased $424 $38 $11<br>Organic<br>92% Purchased<br>8%<br>$39 $46 $60 $59 $63<br>$18<br>$53 $44<br>$39 $24 $34<br>$20<br>$10 $3 $6<br>$26<br>$9<br>$10<br> $-<br> $25<br> $50<br> $75<br> $100<br> $125<br> $150<br>Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Q1 2027<br>Non-Owner CRE Owner CRE Multifamily<br>Q3 2025 Loan Portfolio Disclosures
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5<br>Property Type Outstanding LTV Classified Allowance<br>Retail $345 53% - 1.03%<br>Industrial $300 50% - 1.17%<br>Office (1) $215 64% $3 2.74%<br>Hotel $94 52% - 1.21%<br>Parking Garage $65 49% - 0.96%<br>Senior Living $63 55% - 1.18%<br>Mixed-Use $56 50% - 1.25%<br>Gas Station/ Convenience $46 50% - 1.06%<br>Other (under $30 million) $73 58% - 1.24%<br>Total $1,257 54% $3 1.65%<br>Commercial Real Estate Investor Portfolio Composition (in millions)<br>Retail<br>27%<br>Office<br>17%<br>Industrial<br>24%<br>Parking Garage<br>5%<br>Hotel<br>8%<br>Senior Living<br>5%<br>Mixed Use<br>4%<br>Other (under<br>$50 million)<br>10%<br>Illinois<br>56%<br>Wisconsin<br>6%<br>Texas<br>6%<br>North Carolina<br>3%<br>Pennsylvania<br>3%<br>Oklahoma<br>3%<br>Other (under $30<br>million)<br>23%<br>State Outstanding LTV Classified<br>Illinois $708 55% $3<br>Wisconsin $76 62% -<br>Texas $75 49% -<br>North Carolina $39 50% -<br>Pennsylvania $36 49% -<br>Oklahoma $35 62% -<br>Washington $26 45% -<br>Florida $25 48% -<br>Other (under $25 million) $237 52% -<br>Total $1,257 54% -<br>Q3 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 $263 $37 1.66%<br>Other Services $74 $5 0.37%<br>Retail Trade $61 - 0.21%<br>Manufacturing $54 $4 0.88%<br>Real Estate, Leasing $60 $3 0.59%<br>Wholesale Trade $32 $2 0.44%<br>Arts, Entertainment $24 - 0.61%<br>Accommodation, Food Service $23 $6 1.81%<br>Other (under $20 million) $89 $15 1.20%<br>Total $680 $72 1.23%<br>Manufacturing<br>8%<br>Wholesale Trade<br>5%<br>Retail Trade<br>9%<br>Real Estate,<br>Leasing<br>9%<br>Healthcare<br>38%<br>Other Services<br>11%<br>Other (under $30<br>million)<br>20%<br>Commercial Real Estate Owner-Occupied Portfolio Composition (in millions)<br>Health Care, Social Outstanding Classified Allowance<br>Assisted Living $134 $37 3.02%<br>Skilled Nursing $62 - 1.03%<br>Memory Care $42 - 0.82%<br>Child Care $6 - 0.17%<br>Independent Living $5 - 0.17%<br>Other (under $5 million) $14 - 0.26%<br>Total $263 $37 1.66%<br>Skilled<br>Nursing<br>24%<br>Assisted<br>Living<br>51%<br>Memory Care<br>16%<br>Independent<br>2%<br>Child Care<br>2% Other (under $5 million)<br>5%<br>Q3 2025 Loan Portfolio Disclosures
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7<br>Commercial & Industrial Outstanding Classified<br>Manufacturing $427 $16<br>Construction $165 $2<br>Administration, Waste Service $129 $2<br>Professional $123 -<br>Transportation, Warehousing $108 $18<br>Health Care, Social Services $68 -<br>Finance, Insurance $63 -<br>Wholesale Trade $58 $7<br>Real Estate, Leasing $50 -<br>Agriculture, Forestry $24 $4<br>Retail Trade $22 -<br>Other (under $20 million) $99 $2<br>Total $1,336 $52<br>Commercial (including Leases) Portfolio Composition (in millions)<br>Construction<br>12%<br>Manufacturing<br>32%<br>Wholesale Trade<br>4%<br>Transportation,<br>Warehousing<br>8%<br>Finance, Insurance<br>5%<br>Professional<br>9%<br>Administration,<br>Waste Service<br>10%<br>Health Care,<br>Social Services<br>5%<br>Real Estate,<br>Leasing<br>4%<br>Other (under<br>$50 million)<br>11%<br>Commercial Revolving Line Utilization (outstanding in millions)<br>$675 $641 $654 $677 $653 $587 $574 $658<br>53% 53%<br>55% 56% 55%<br>52% 53%<br>55%<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>12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25<br>Q3 2025 Loan Portfolio Disclosures
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8<br>Origination Tier Outstanding Weighted FICO Portfolio APR %<br>Tier 1 $386 776 7.67%<br>Tier 2 $141 709 9.79%<br>Tier 3 $83 682 12.22%<br>Tier 4 $43 653 14.44%<br>Tier 5 $62 604 16.86%<br>Total $715 730 9.72%<br>Powersport (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>Q3 2025 Loan Portfolio Disclosures<br>Contribution Margin (1) 2020 (EBG) 2021 (EBG) 2022 (EBG) 2023 (EBG) 2024 (EBG) YTD 9/30/2025<br>Portfolio APR 7.25% 7.22% 7.42% 8.13% 9.02% 9.72%<br>Net Promo Accretion 1.61% 1.18% 0.69% 0.41% 0.74% 1.11%<br>Participation -1.02% -0.76% -0.84% -0.87% -0.87% -0.88%<br>Net Loss -0.63% -0.39% -0.62% -1.11% -1.39% -1.53%<br>Net Contribution Margin 7.21% 7.26% 6.65% 6.56% 7.52% 8.34%<br>(1) Historical contribution margin represents Evergreen Bank Group (EBG) performance through 6/30/2025, and 9/30/2025 YTD contribution margin excludes purchase accounting<br>accretion.<br>Asset Type Outstanding % of Total Portfolio APR %<br>New $550 77% 9.13%<br>Used $165 23% 11.68%<br>Total $715 9.72%
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9<br>Net Charge-offs (Recoveries) (in thousands)<br>Portfolio 12/31/2024 (Q) 3/31/2025 (Q) 6/30/2025 (Q) 9/30/2025 (Q) 9/30/2025 (TTM) NCO(R) %<br>Commercial (incl. Leases) $8,583 $3,507 $1,090 $1,233 $14,413 1.09%<br>Commercial Real Estate Investor ($173) ($14) ($14) ($15) ($216) (0.02%)<br>Commercial Real Estate Owner Occupied ($3,739) $39 ($1) ($2) ($3,703) (0.54%)<br>Construction - $821 ($337) ($46) $438 0.23%<br>Residential Real Estate $232 ($32) ($10) ($9) $181 0.06%<br>Multifamily - - - $181 $181 0.05%<br>HELOC ($45) ($12) ($10) ($19) ($86) (0.05%)<br>Powersport $2,980 $2,980 0.42%<br>Other $37 $44 $67 $805 (1) $953 1.70%<br>Total $4,895 $4,353 $785 $5,108 $15,141 0.33%<br>9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025<br>Beginning ACL Balance $42,269 $44,422 $43,619 $41,551 $42,990<br>Day 1 Credit Mark (PCD) - - - - $17,540<br>Day 2 Credit Mark (Non-PCD) - - - - $13,153<br>Provision $1,998 $4,092 $2,285 $2,224 $6,462<br>Net Charge-off (Recovery) ($155) $4,895 $4,353 $785 $5,108<br>Ending ACL Balance $44,422 $43,619 $41,551 $42,990 $75,037<br>Allowance for Credit Losses (2) (in thousands)<br>Q3 2025 Loan Portfolio Disclosures<br>(2) The Allowance for Credit Losses presented excludes the Allowance for Unfunded Commitments, which totaled $2.3 million as of September 30, 2025 and is reported within<br>other liabilities on the Statements of Condition.<br>(1) $505 thousand in net charge-offs associated with Solar consumer portfolio acquired in Evergreen Bank Group acquisition.
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