Earnings release
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1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the non- GAAP reconciliation contained in this release. 2 All comparisons throughout this release are on a linked-quarter basis, unless otherwise noted. (NASDAQ:OSBC) Exhibit 99.1 Contact: Bradley S. Adams For Immediate Release Chief Financial Officer October 21, 2026 (630) 906-5484 Old Second Bancorp, Inc. Reports Third Quarter 2026 Net Income of $28.9 Million, or $0.56 per Diluted Share AURORA, IL, October 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 third quarter of 2026. Our net income was $28.9 million, or $0.56 per diluted share, for the third quarter of 2026, compared to net income of $28.2 million, or $0.54 per diluted share, for the second quarter of 2026. Adjusted net income1 was $28.5 million, or adjusted diluted earnings per share1 of $0.55, for the third quarter of 2026, compared to adjusted net income1 of $28.7 million, or adjusted diluted earnings per share1 of $0.55, for the second quarter of 2026. Notable Items2 ● Net interest and dividend income was $84.0 million, reflecting an increase of $720,000, or 0.86%. ● Net interest margin (NIM) on a fully tax-equivalent basis1 was 5.27%, an increase of four basis points. ● Provision for credit losses of $6.8 million compared to $7.5 million, a decrease of $750,000. ● Noninterest income was $13.1 million, a decrease of $191,000, or 1.44%, compared to $13.3 million. ● Noninterest expense was $51.6 million, an increase of $370,000, or 0.72%, compared to $51.3 million. ● Efficiency ratio increased 62 basis points to 52.34%; adjusted efficiency ratio was 52.06%1. ● Provision for income tax of $9.8 million, compared to $9.7 million, with an effective tax rate of 25.31% and 25.53%, respectively. ● Return on average assets of 1.69%, compared to 1.65%. ● Return on average tangible common equity (ROATCE)1 of 15.77%; adjusted ROATCE1 of 15.53%. ● On October 20, 2026, our Board of Directors declared a cash dividend of $0.08 per share of common stock, payable on November 9, 2026, to stockholders of record as of October 30, 2026. Chairman, President and Chief Executive Officer Jim Eccher said, “Old Second reported strong results in the third quarter of 2026 led by robust margin performance and disciplined operating efficiency. Loan losses remained higher than we wanted this quarter due to one previously identified commercial relationship, but the trends are extremely encouraging with nonperforming and classified loans declining by 30% and 44%, respectively. Criticized loans, an early indicator of future credit trends, also improved significantly during the quarter and now stand at just 1.88% of total loans, compared to 3.05% last quarter. Criticized assets also declined significantly quarter over quarter, decreasing to 1.91% of total loans from 3.08% in the previous quarter. Profitability remains excellent with the tax-equivalent net interest margin increasing by four basis points this quarter to 5.27%, which demonstrates the benefits of a strong core deposit base and diversified loan portfolio. This level of performance and a strong capital position afforded Old Second the opportunity to repurchase 1.5 million common shares this quarter, or approximately 3% of all outstanding shares. Third quarter return on average assets and return on average tangible common equity were 1.69% and 15.77%, respectively, and the efficiency ratio was a very healthy 52.34%. Based on the strength of the balance sheet and income statement trends, Old Second elected in this fourth quarter to increase the common dividend by 14%, as we continue to regularly deliver dividend growth commensurate with the bank’s performance. We are proud of our performance for the quarter, believe we have turned the corner on credit and look forward to delivering solid results to our stockholders for the remainder of the year.”
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1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the non- GAAP reconciliation contained in this release. 2 Results of Operations: Our net income was $28.9 million, or $0.56 per diluted share, for the third quarter of 2026, compared to net income of $28.2 million, or $0.54 per diluted share. Net Interest Margin continued to be strong and nominal increases in the cost of funds were outweighed by stronger yields on loans during the quarter. ● Net interest margin on a fully tax-equivalent1 basis improved four basis points, to 5.27%. ● Loan yields increased three basis points on higher average loan balances during the quarter but investment yields decreased five basis points driven by maturities and paydowns of securities. ● Cost of funds increased two basis points to 1.23%, driven by higher costs on deposits, discussed below, as well as other short-term borrowings due to higher average FHLB overnight borrowings. Noninterest Income decreased $191,000, or 1.44%, in the third quarter of 2026. ● Mortgage banking income increased in the period mainly due to $623,000 of mortgage servicing rights (“MSR”) mark to market gains compared to $152,000 of losses in the previous quarter, primarily the result of increased rates during the quarter. ● The cash surrender value of BOLI decreased $673,000 in the current quarter primarily due to market rate changes impacting company-owned life insurance, which is included within the same line item. Noninterest Expense increased $370,000, or 0.72%. ● Salaries and employee benefits increased $743,000, driven by higher salaries, officer incentive accruals, and employee insurance premiums, partially offset by decreases in payroll taxes and deferred compensation expense due to market interest rate changes. ● Occupancy, furniture and equipment increased $166,000 due to an increase in real estate taxes and office equipment maintenance. ● Advertising and marketing expense increased $120,000 due to a 2026 brand awareness campaign. ● Professional fees increased $257,000 due to consulting and management fees related to the 2026 brand awareness campaign as well as an increase in loan-related legal fees. ● Other expenses decreased $868,000 primarily due to decreases in director deferred compensation expense stemming from market interest rate changes, a decrease in litigation expense as two nonrecurring items with limited exposure were recorded in the prior quarter, and a decrease in miscellaneous expenses as the previous quarter included an accrual related to powersport loan gap insurance refunds due to customers related to loan prepayments. ● Efficiency ratio for the quarter was 52.34% compared to 51.72% and the adjusted efficiency ratio1 was 52.06% compared to 50.80%. Loans decreased $7.8 million driven primarily by decreases in commercial and commercial real estate – investor. ● Total loans were $5.24 billion. ● Average loans (including loans held-for-sale) for the third quarter of 2026 totaled $5.23 billion, reflecting an increase of $4.0 million. Credit Quality key performance metrics improved significantly during the quarter, although charge-offs were higher than expected and were concentrated in a single commercial relationship. ● Nonperforming loans totaled $39.6 million compared to $56.5 million. The $16.8 million decrease reflects a $17.2 million decline in nonaccrual loans partially offset by a slight increase to loans past due 90 days or more accruing. Nonaccrual changes include $9.1 million of net principal paydowns, $6.2 million of full charge-offs, and $3.3 million of partial charge-offs, partially offset by $1.4 million of additions to nonaccrual. ● Nonperforming loans to total loans was 0.76% compared to 1.08%. ● Classified loans totaled $74.2 million compared to $132.1 million. ● Criticized loans (special mention, substandard and doubtful) to total loans was 1.88% compared to 3.05%. The quarter-over-quarter decrease is driven by a decrease of $3.4 million in special mention loans, a decrease of $17.2 million of nonaccrual loans, and a decrease of $40.7 million in substandard accruing. ● Provision for credit losses of $6.8 million was driven by $3.1 million of net charge-offs related to powersport loans, and non-powersport charge-offs were primarily isolated to two commercial loans on a single relationship.
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1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the non- GAAP reconciliation contained in this release. 3 Deposits experienced declines in noninterest bearing as well as declines in time deposits as higher-rate brokered deposits and other exception-priced time deposits assumed from Bancorp Financial, Inc. rolled off. ● Total deposits were $5.33 billion, a decrease of $117.1 million, or 2.15%. ● Cost of deposits increased two basis points to 1.02% as the cost of NOW, money market, and savings accounts all reflected increases, which were partially offset by a five basis point decline in the cost of time deposits. ● Average interest-bearing deposits decreased $55.5 million and average noninterest bearing deposits decreased $22.6 million. Capital decreased due to share repurchases and an increase in accumulated other comprehensive unrealized loss on available-for-sale securities, partially offset by strong net income. ● Stockholders’ equity decreased $24.3 million primarily due to $3.6 million of dividends declared, an $11.5 million increase in the unrealized losses on securities and swaps due to market interest rate increases, and a $39.2 million increase in treasury stock from share repurchases, net of stock award vestings, partially offset by net income of $28.9 million. ● Share repurchases of 1,533,104 shares at an average price paid per share of $25.76 during the third quarter, for a total reduction to capital of $39.5 million, including excise taxes. ● ROATCE1 was 15.77% compared to 15.58%. ● Tangible common equity to tangible assets1 was 11.00% compared to 11.19%.
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4 Cautionary Note Regarding Forward-Looking Statements This earnings release and statements by our management may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “should,” “anticipate,” “expect,” “estimate,” “intend,” “believe,” “may,” “likely,” “will,” “forecast,” “project,” “looking forward,” “optimistic,” “hopeful,” “potential,” “progress,” “prospect,” “remain,” “deliver,” “continue,” “trend,” “momentum,” “remainder,” “beyond,” “build,” and “near” or other statements that indicate future events or expectations. Examples of forward-looking statements include, but are not limited to, statements regarding the economic outlook, balance sheet growth, building capital, credit quality trends, the adequacy of our allowance for credit losses, and future share repurchases. Such forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: ● the strength of the United States economy in general and the strength of the local economies in which we conduct our operations may be different than expected; ● the rate of delinquencies and amounts of charge-offs, the level of the allowance for credit losses, 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; ● adverse developments in the commercial real estate market, including increased vacancy rates, declining property values, or borrower distress, particularly in the office sector, which could result in increased credit losses or require additional provisions; ● changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action; ● risks related to pending or future acquisitions, if any, including execution and integration risks; ● adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on us; ● changes in interest rates, which have affected and may continue to affect our deposit and funding costs, net income, prepayment penalty income, mortgage banking income, and other future cash flows, or the market value of our assets, including our investment securities; ● elevated inflation which causes adverse risk to the overall economy, and could indirectly pose challenges to our clients and to our business; and ● the adverse effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as trade disputes, epidemics and pandemics, war or terrorist activities, essential utility outages, deterioration in the global economy, instability in the credit markets, disruptions in our customers’ supply chains or disruptions in transportation, and disruptions caused by widespread cybersecurity incidents. Additional risks and uncertainties are contained in the “Risk Factors” and forward-looking statements disclosures 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 22, 2026, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss our third quarter 2026 financial results. Investors may listen to our earnings call via a live webcast by accessing the link provided below, or alternatively, on the Events section of the Old Second Investor Relations website (https://investors.oldsecond.com/events). Investors are encouraged to register at the webcast link at least 10 minutes prior to the scheduled start of the call. Webcast URL: https://www.webcaster5.com/Webcast/Page/2239/54568 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.
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5 Non-GAAP Presentations We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision-making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets or by adjusting certain items that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully tax-equivalent basis. We believe these measures provide investors with information regarding balance sheet profitability, and we believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing, and comparing past, present and future periods. These non-GAAP financial measures should not be considered as a substitute for GAAP financial measures, and we strongly encourage investors to review the GAAP financial measures included in this earnings release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this earnings release with other companies’ non-GAAP financial measures having the same or similar names. The tables beginning on page 13 provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP equivalent. 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, adjusted diluted earnings per share, adjusted return on average assets, net interest income and net interest margin on a fully tax-equivalent basis, our adjusted efficiency ratio, tangible common equity to tangible assets, and return on average tangible common equity, including on an adjusted basis. The net interest margin on a fully tax-equivalent basis is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. The tangible measures exclude goodwill and other intangible assets, and management believes they are useful in evaluating our capital adequacy and the return generated on our tangible capital base. Consistent with industry practice, management has disclosed the efficiency ratio including and excluding certain items, which is discussed in the efficiency ratio presentation on page 14.
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6 Financial Highlights Quarters Ended (Dollars in thousands - unaudited) September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Balance sheet summary Total assets $ 6,778,591 $ 6,870,305 $ 6,849,221 $ 6,902,675 $ 6,991,754 Total securities available-for-sale 978,576 1,040,760 1,115,443 1,090,523 1,157,480 Total loans 5,238,057 5,245,870 5,185,237 5,252,131 5,264,505 Total deposits 5,327,564 5,444,688 5,564,999 5,596,069 5,760,250 Total liabilities 5,900,039 5,967,494 5,955,924 6,005,907 6,125,069 Total equity 878,552 902,811 893,297 896,768 866,685 Total tangible assets $ 6,629,195 $ 6,719,760 $ 6,697,509 $ 6,749,787 $ 6,836,565 Total tangible equity 729,156 752,266 741,585 743,880 711,496 Income statement summary Net interest income $ 84,049 $ 83,329 $ 81,144 $ 83,051 $ 82,775 Provision for credit losses 6,750 7,500 9,500 3,000 19,653 Noninterest income 13,070 13,261 12,630 12,154 13,109 Noninterest expense 51,622 51,252 50,210 52,935 63,163 Net income 28,940 28,179 25,585 28,787 9,871 Effective tax rate 25.31% 25.53% 24.89% 26.69% 24.46% Profitability ratios Return on average assets (ROAA) 1.69% 1.65% 1.51% 1.64% 0.56% Return on average equity (ROAE) 12.76 12.57 11.43 12.92 4.61 Net interest margin (tax-equivalent) 1 5.27 5.23 5.14 5.09 5.05 Efficiency ratio 52.34 51.72 52.40 53.98 64.46 Return on average tangible common equity (ROATCE) 1 15.77 15.58 14.20 16.15 6.16 Tangible common equity to tangible assets (TCE/TA) 1 11.00 11.19 11.07 11.02 10.41 Per share data Diluted earnings per share $ 0.56 $ 0.54 $ 0.48 $ 0.54 $ 0.18 Tangible book value per share 14.75 14.77 14.35 14.12 13.51 Company capital ratios 2 Common equity tier 1 capital ratio 13.13% 13.28% 13.13% 12.99% 12.44% Tier 1 risk-based capital ratio 13.56 13.70 13.55 13.41 12.85 Total risk-based capital ratio 15.05 15.26 15.64 15.46 15.10 Tier 1 leverage ratio 11.99 12.05 11.88 11.70 11.21 Bank capital ratios 2, 3 Common equity tier 1 capital ratio 13.65% 13.72% 13.80% 13.17% 13.14% Tier 1 risk-based capital ratio 13.65 13.72 13.80 13.17 13.14 Total risk-based capital ratio 14.63 14.77 14.88 14.22 14.39 Tier 1 leverage ratio 12.05 12.05 12.09 11.49 11.45 1 See the discussion entitled “Non-GAAP Presentations” above and the tables on pages 13 and 15 that provide a reconciliation of this non-GAAP financial measure to the most comparable GAAP equivalent. 2 Both the Company and the Bank ratios are inclusive of a capital conservation buffer of 2.50%, and both are subject to the minimum capital adequacy guidelines of 7.00%, 8.50%, 10.50%, and 4.00% for the Common equity tier 1, Tier 1 risk- based, Total risk-based and Tier 1 leverage ratios, respectively. 3 The prompt corrective action provisions are applicable only at the Bank level, and are 6.50%, 8.00%, 10.00%, and 5.00% for the Common equity tier 1, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios, respectively.
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7 Old Second Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands - unaudited) Quarters Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Assets Cash and due from banks $ 42,155 $ 47,964 $ 48,100 $ 51,665 $ 53,099 Interest earning deposits with financial institutions 65,948 95,369 67,627 72,360 63,426 Cash and cash equivalents 108,103 143,333 115,727 124,025 116,525 Securities available-for-sale, at fair value 978,576 1,040,760 1,115,443 1,090,523 1,157,480 Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock 40,811 40,125 31,350 32,025 28,282 Loans held-for-sale 1,407 2,349 4,344 3,645 1,463 Loans 5,238,057 5,245,870 5,185,237 5,252,131 5,264,505 Less: allowance for credit losses on loans 64,189 70,380 72,126 72,301 75,037 Net loans 5,173,868 5,175,490 5,113,111 5,179,830 5,189,468 Premises and equipment, net 83,364 84,505 85,634 86,645 87,714 Other real estate owned, net - 622 632 1,427 6,416 Mortgage servicing rights, at fair value 10,690 9,825 9,579 9,459 9,549 Goodwill 129,196 129,196 129,196 129,196 130,262 Core deposit intangible ("CDI") 20,200 21,349 22,516 23,692 24,927 Bank-owned life insurance (“BOLI”) 134,288 133,493 131,563 130,481 129,057 Deferred tax assets, net 33,260 28,689 31,321 31,276 33,374 Other assets 64,828 60,569 58,805 60,451 77,237 Total assets $ 6,778,591$ 6,870,305$ 6,849,221$ 6,902,675$ 6,991,754 Liabilities Deposits: Noninterest bearing demand $ 1,671,745$ 1,746,755$ 1,755,548$ 1,739,117$ 1,738,028 Interest bearing: Savings, NOW, and money market 2,772,737 2,771,532 2,795,038 2,745,540 2,763,990 Time 883,082 926,401 1,014,413 1,111,412 1,258,232 Total deposits 5,327,564 5,444,688 5,564,999 5,596,069 5,760,250 Securities sold under repurchase agreements 29,908 23,241 23,130 23,769 24,290 Other short-term borrowings 395,000 375,000 200,000 215,000 165,000 Junior subordinated debentures 25,774 25,774 25,774 25,774 25,774 Subordinated debentures 29,808 29,798 59,574 59,552 59,531 Notes payable and other borrowings 9,893 14,850 14,837 14,825 14,812 Other liabilities 82,092 54,143 67,610 70,918 75,412 Total liabilities 5,900,039 5,967,494 5,955,924 6,005,907 6,125,069 Stockholders’ Equity Common stock 53,015 53,015 53,015 53,015 53,015 Additional paid-in capital 340,751 339,616 338,418 341,451 340,108 Retained earnings 609,074 583,701 559,129 537,231 512,131 Accumulated other comprehensive loss, net (43,395) (31,861) (31,095) (28,738) (32,294) Treasury stock (80,893) (41,660) (26,170) (6,191) (6,275) Total stockholders’ equity 878,552 902,811 893,297 896,768 866,685 Total liabilities and stockholders’ equity $ 6,778,591$ 6,870,305$ 6,849,221$ 6,902,675$ 6,991,754
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8 Old Second Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (In thousands, except share data - unaudited) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Interest and dividend income Loans, including fees $ 91,356 $ 89,845 $ 87,138 $ 90,925 $ 91,301 Loans held-for-sale 31 62 43 35 31 Securities: Taxable 8,416 9,088 8,949 9,136 9,872 Tax exempt 1,079 1,132 1,155 1,219 1,235 Dividends from FHLBC and FRBC stock 672 535 512 390 381 Interest earning deposits with financial institutions 537 527 549 598 1,255 Total interest and dividend income 102,091 101,189 98,346 102,303 104,075 Interest expense Savings, NOW, and money market deposits 8,105 7,512 7,147 7,906 9,043 Time deposits 5,757 6,199 7,217 8,665 10,896 Securities sold under repurchase agreements 44 40 50 45 60 Other short-term borrowings 3,145 2,989 1,791 1,644 308 Junior subordinated debentures 269 289 296 288 288 Subordinated debentures 542 675 546 546 547 Notes payable and other borrowings 180 156 155 158 158 Total interest expense 18,042 17,860 17,202 19,252 21,300 Net interest and dividend income 84,049 83,329 81,144 83,051 82,775 Provision for credit losses 6,750 7,500 9,500 3,000 19,653 Net interest and dividend income after provision for credit losses 77,299 75,829 71,644 80,051 63,122 Noninterest income 1 Wealth management 3,682 3,628 3,383 3,537 3,515 Service charges on deposits 3,134 3,075 3,130 3,125 3,202 Secondary mortgage fees 101 166 121 123 92 Mortgage servicing rights mark to market gain (loss) 623 (152) (152) (428) (389) Mortgage servicing income 467 464 497 444 469 Net gain on sales of mortgage loans 363 640 555 657 620 Securities gains (losses), net (1) - - 8 (1) Change in cash surrender value of BOLI 796 1,469 1,082 834 1,175 Death benefit realized on BOLI - - - - 430 Card related income 2,479 2,483 2,350 2,548 2,581 Other income 1,426 1,488 1,664 1,306 1,415 Total noninterest income 13,070 13,261 12,630 12,154 13,109 Noninterest expense 1 Salaries and employee benefits 30,846 30,103 29,673 30,996 39,723 Occupancy, furniture and equipment 5,284 5,118 5,371 5,092 4,937 Computer and data processing 3,258 3,217 3,375 4,798 4,002 FDIC insurance 746 759 759 720 854 Net teller & bill paying 754 724 716 701 691 General bank insurance 355 351 353 354 437 Amortization of core deposit intangible 1,149 1,167 1,176 1,235 1,251 Advertising and marketing expense 603 483 551 437 650 Card related expense 1,589 1,604 1,519 1,652 1,708 Professional fees 1,417 1,160 1,299 1,265 3,145 Consumer credit expense 1,725 1,720 1,522 1,451 1,368 Other real estate expense, net (30) 52 (186) 81 128 Other expense 3,926 4,794 4,082 4,153 4,269 Total noninterest expense 51,622 51,252 50,210 52,935 63,163 Income before income taxes 38,747 37,838 34,064 39,270 13,068 Provision for income taxes 9,807 9,659 8,479 10,483 3,197 Net income $ 28,940 $ 28,179 $ 25,585 $ 28,787 $ 9,871 Basic earnings per share $ 0.57 $ 0.55 $ 0.49 $ 0.55 $ 0.19 Diluted earnings per share 0.56 0.54 0.48 0.54 0.18 Dividends declared per share 0.07 0.07 0.07 0.07 0.06 Ending common shares outstanding 49,417,867 50,938,962 51,665,660 52,669,224 52,664,535 Weighted-average basic shares outstanding 50,302,629 51,250,245 52,450,306 52,667,899 52,686,391 Weighted-average diluted shares outstanding 51,145,790 52,120,337 53,303,072 53,480,431 53,509,690 1 Certain items in prior periods have been reclassified to conform to the current presentation.
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9 Analysis of Average Balances, Tax Equivalent Income / Expense and Rates (Dollars in thousands - unaudited) Quarters Ended September 30, 2026 June 30, 2026 September 30, 2025 Average Income / Rate Average Income / Rate Average Income / Rate Balance Expense % Balance Expense % Balance Expense % Assets Interest earning deposits with financial institutions $ 65,381 $ 537 3.26 $ 64,839 $ 527 3.26 $ 119,619 $ 1,255 4.16 Securities: Taxable 891,503 8,416 3.75 955,176 9,088 3.82 1,016,279 9,872 3.85 Non-taxable (TE)1 129,636 1,366 4.18 140,876 1,433 4.08 149,621 1,563 4.14 Total securities (TE)1 1,021,139 9,782 3.80 1,096,052 10,521 3.85 1,165,900 11,435 3.89 FHLBC and FRBC Stock 38,576 672 6.91 36,676 535 5.85 25,961 381 5.82 Loans and loans held-for-sale1, 2 5,227,120 91,400 6.94 5,223,093 89,921 6.91 5,217,349 91,342 6.95 Total interest earning assets 6,352,216 102,391 6.40 6,420,660 101,504 6.34 6,528,829 104,413 6.34 Cash and due from banks 45,146 - - 46,700 - - 51,357 - - Allowance for credit losses on loans (70,983) - - (72,418) - - (72,354) - - Other noninterest earning assets 460,566 - - 457,995 - - 491,421 - - Total assets $ 6,786,945 $ 6,852,937 $ 6,999,253 Liabilities and Stockholders' Equity NOW accounts $ 721,922 $ 1,102 0.61 $ 717,468 $ 897 0.50 $ 668,439 $ 825 0.49 Money market accounts 961,994 4,704 1.94 948,319 4,400 1.86 954,964 4,979 2.07 Savings accounts 1,098,934 2,299 0.83 1,109,381 2,215 0.80 1,175,011 3,239 1.09 Time deposits 905,298 5,757 2.52 968,464 6,199 2.57 1,347,455 10,896 3.21 Interest bearing deposits 3,688,148 13,862 1.49 3,743,632 13,711 1.47 4,145,869 19,939 1.91 Securities sold under repurchase agreements 24,059 44 0.73 21,337 40 0.75 33,382 60 0.71 Other short-term borrowings 321,413 3,145 3.88 312,803 2,989 3.83 25,978 308 4.70 Junior subordinated debentures 25,774 269 4.14 25,774 289 4.50 25,774 288 4.43 Subordinated debentures 29,803 542 7.22 34,373 675 7.88 59,521 547 3.65 Notes payable and other borrowings 13,938 180 5.12 14,844 156 4.22 14,806 158 4.23 Total interest bearing liabilities 4,103,135 18,042 1.74 4,152,763 17,860 1.73 4,305,330 21,300 1.96 Noninterest bearing deposits 1,722,851 - - 1,745,475 - - 1,782,193 - - Other liabilities 61,430 - - 55,582 - - 61,732 - - Stockholders' equity 899,529 - - 899,117 - - 849,998 - - Total liabilities and stockholders' equity $ 6,786,945 $ 6,852,937 $ 6,999,253 Net interest income (GAAP) $ 84,049 $ 83,329 $ 82,775 Net interest margin (GAAP) 5.25 5.21 5.03 Net interest income (TE)1 $ 84,349 $ 83,644 $ 83,113 Net interest margin (TE)1 5.27 5.23 5.05 Interest bearing liabilities to earning assets 64.59% 64.68% 65.94% 1 Tax equivalent (TE) basis is calculated using a marginal tax rate of 21% in 2026 and 2025. See the discussion entitled “Non-GAAP Presentations” above and the tables beginning on page 13 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 13, and includes loan fee income of $1.8 million for the third quarter of 2026, loan fee income of $2.0 million for the second quarter of 2026, and loan fee income of $1.2 million for the third quarter of 2025. Nonaccrual loans are included in the above stated average balances.
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10 Loans and Credit Quality Loans Quarters Ended (Dollars in thousands) September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Commercial $ 867,362 $ 913,527 $ 845,278 $ 842,130 $ 786,095 Leases 554,370 537,197 539,116 548,256 550,201 Commercial real estate – investor 1,131,857 1,159,168 1,169,318 1,212,384 1,257,328 Commercial real estate – owner occupied 684,169 667,645 702,986 706,567 680,412 Construction 153,491 153,553 143,563 173,630 176,387 Residential real estate – investor 65,679 65,133 69,763 70,225 69,362 Residential real estate – owner occupied 247,515 242,768 239,711 230,432 231,547 Multifamily 370,431 363,352 357,131 339,131 378,213 HELOC 245,938 239,307 235,637 235,293 234,885 Powersport 689,229 683,939 674,116 696,959 715,498 Other1 228,016 220,281 208,618 197,124 184,577 Total loans $ 5,238,057 $ 5,245,870 $ 5,185,237 $ 5,252,131 $ 5,264,505 1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts. Nonperforming assets Quarters Ended (Dollars in thousands) September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Nonaccrual loans $ 36,579 $ 53,747 $ 62,636 $ 47,952 $ 34,126 Loans past due 90 days or more and still accruing interest 3,057 2,736 12,868 4,879 13,859 Total nonperforming loans 39,636 56,483 75,504 52,831 47,985 Other real estate owned - 622 632 1,427 6,416 Repossessed assets 1 1,279 819 858 1,363 2,088 Total nonperforming assets $ 40,915 $ 57,924 $ 76,994 $ 55,621 $ 56,489 30-89 days past due loans and still accruing interest $ 43,553 $ 22,499 $ 50,036 $ 52,169 $ 22,415 Nonaccrual loans to total loans 0.70% 1.02% 1.21% 0.91% 0.65% Nonperforming loans to total loans 0.76% 1.08% 1.46% 1.01% 0.91% Nonperforming assets to total loans plus OREO and repossessed assets 0.78% 1.10% 1.48% 1.06% 1.07% Purchased credit-deteriorated loans to total loans 1.00% 1.19% 1.35% 1.50% 1.61% Allowance for credit losses $ 64,189 $ 70,380 $ 72,126 $ 72,301 $ 75,037 Allowance for credit losses to total loans 1.23% 1.34% 1.39% 1.38% 1.43% Allowance for credit losses to nonaccrual loans 175.48% 130.95% 115.15% 150.78% 219.88% 1 Repossessed assets are reported in other assets.
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11 The following table shows classified loans by segment, which include nonaccrual loans, purchased credit deteriorated (“PCD”) loans if the risk rating so indicates, and all other loans considered substandard, for the following periods. Classified loans Quarters Ended (Dollars in thousands) September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Commercial $ 13,190 $ 39,646 $ 50,640 $ 51,587 $ 50,680 Leases 1,729 2,930 2,604 2,428 1,277 Commercial real estate – investor 12,730 11,262 14,959 14,245 2,853 Commercial real estate – owner occupied 26,546 58,582 60,594 64,081 72,020 Construction 12,866 12,976 12,983 11,421 1,612 Residential real estate – investor 1,030 662 1,012 1,142 1,228 Residential real estate – owner occupied 2,249 2,076 1,886 1,897 1,839 Multifamily 1,254 1,197 1,489 1,494 1,183 HELOC 2,355 2,250 1,832 1,466 1,538 Powersport 145 198 204 68 - Other1 154 318 369 270 30 Total classified loans $ 74,248 $ 132,097 $ 148,572 $ 150,099 $ 134,260 1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts. Loan charge-offs, net of recoveries Quarters Ended (Dollars in thousands) September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Commercial $ 9,171 $ 2,983 $ 1,298 $ (44) $ 385 Leases 172 344 197 15 848 Commercial real estate – investor (14) 2,804 3,919 (14) (15) Commercial real estate – owner occupied (1) (1) (5) 1,125 (2) Construction - - - - (46) Residential real estate – investor (3) (1) (2) (1) (2) Residential real estate – owner occupied (10) (21) (7) (11) (7) Multifamily - - - - 181 HELOC (10) (14) (6) (49) (19) Powersport 3,133 2,826 3,894 4,466 2,980 Other 1 288 328 488 494 805 Net charge-offs (recoveries) $ 12,726 $ 9,248 $ 9,776 $ 5,981 $ 5,108 1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts.
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12 Old Second Bancorp, Inc. and Subsidiaries Quarterly Consolidated Average Balance (In thousands - unaudited) Quarters Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Assets Cash and due from banks $ 45,146 $ 46,700 $ 48,252 $ 52,040 $ 51,357 Interest earning deposits with financial institutions 65,381 64,839 67,571 66,430 119,619 Cash and cash equivalents 110,527 111,539 115,823 118,470 170,976 Securities available-for-sale, at fair value 1,021,139 1,096,052 1,115,493 1,129,633 1,165,900 Federal Home Loan Bank Chicago (“FHLBC”) and Federal Reserve Bank Chicago (“FRBC”) stock 38,576 36,676 31,540 30,085 25,961 Loans held-for-sale 1,815 3,280 2,023 3,254 1,975 Loans 5,225,305 5,219,813 5,205,721 5,275,389 5,215,374 Less: allowance for credit losses on loans 70,983 72,418 71,869 73,718 72,354 Net loans 5,154,322 5,147,395 5,133,852 5,201,671 5,143,020 Premises and equipment, net 84,252 85,395 86,260 87,449 88,304 Other real estate owned, net 616 626 853 4,410 6,464 Mortgage servicing rights, at fair value 9,899 9,693 9,383 9,490 9,632 Goodwill 129,196 129,196 129,196 130,135 127,873 Core deposit intangible ("CDI") 20,758 21,916 23,073 24,281 25,539 Bank-owned life insurance (“BOLI”) 133,768 132,046 130,930 130,151 128,870 Deferred tax assets, net 29,477 31,296 30,342 32,705 30,375 Other assets 52,600 47,827 50,396 58,443 74,364 Total assets $ 6,786,945 $ 6,852,937 $ 6,859,164 $ 6,960,177 $ 6,999,253 Liabilities Deposits: Noninterest bearing demand $ 1,722,851 $ 1,745,475 $ 1,738,504 $ 1,781,374 $ 1,782,193 Interest bearing: Savings, NOW, and money market 2,782,850 2,775,168 2,762,746 2,764,609 2,798,414 Time 905,298 968,464 1,062,623 1,179,966 1,347,455 Total deposits 5,410,999 5,489,107 5,563,873 5,725,949 5,928,062 Securities sold under repurchase agreements 24,059 21,337 24,795 23,464 33,382 Other short-term borrowings 321,413 312,803 189,056 159,565 25,978 Junior subordinated debentures 25,774 25,774 25,774 25,774 25,774 Subordinated debentures 29,803 34,373 59,564 59,542 59,521 Notes payable and other borrowings 13,938 14,844 14,831 14,819 14,806 Other liabilities 61,430 55,582 73,284 67,078 61,732 Total liabilities 5,887,416 5,953,820 5,951,177 6,076,191 6,149,255 Stockholders’ Equity Common stock 53,015 53,015 53,015 53,015 53,015 Additional paid-in capital 340,227 339,145 340,459 340,870 339,612 Retained earnings 598,284 573,158 551,491 526,910 500,075 Accumulated other comprehensive loss, net (33,884) (31,113) (26,361) (30,594) (36,823) Treasury stock (58,113) (35,088) (10,617) (6,215) (5,881) Total stockholders’ equity 899,529 899,117 907,987 883,986 849,998 Total liabilities and stockholders’ equity $ 6,786,945 $ 6,852,937 $ 6,859,164 $ 6,960,177 $ 6,999,253 Total Earning Assets $ 6,352,216 $ 6,420,660 $ 6,422,348 $ 6,504,791 $ 6,528,829 Total Interest Bearing Liabilities 4,103,135 4,152,763 4,139,389 4,227,739 4,305,330
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13 Reconciliation of Non-GAAP Financial Measures The tables below provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure for the periods indicated. Dollar amounts below in thousands: Net Income and Earnings Per Share - GAAP and Adjusted Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Income before income taxes (GAAP) $ 38,747 $ 37,838 $ 34,064 $ 39,270 $ 13,068 Pre-tax income adjustments: Provision for credit losses - Day Two - - - - 13,153 Securities losses (gains), net 1 - - (8) 1 Death benefit related to BOLI - - - - (430) MSR (gains) losses (623) 152 152 428 389 Acquisition related costs, net of gains on branch sales - 526 349 2,296 11,508 Adjusted net income before taxes 38,125 38,516 34,565 41,986 37,689 Taxes on adjusted net income 9,649 9,832 8,604 11,208 9,326 Adjusted net income (non-GAAP) $ 28,476 $ 28,684 $ 25,961 $ 30,778 $ 28,363 Basic earnings per share (GAAP) $ 0.57 $ 0.55 $ 0.49 $ 0.55 $ 0.19 Diluted earnings per share (GAAP) 0.56 0.54 0.48 0.54 0.18 Adjusted basic earnings per share (non-GAAP) 0.57 0.56 0.49 0.59 0.54 Adjusted diluted earnings per share (non-GAAP) 0.55 0.55 0.49 0.58 0.53 Total average assets 6,786,945 6,852,937 6,859,164 6,960,177 6,999,253 Return on average assets (GAAP) 1.69% 1.65% 1.51% 1.64% 0.56% Adjusted return on average assets (non-GAAP) 1.66% 1.68% 1.53% 1.75% 1.61% Quarters Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Net Interest Margin Interest income (GAAP) $ 102,091 $ 101,189 $ 98,346 $ 102,303 $ 104,075 Taxable-equivalent adjustment: Loans 13 14 13 9 10 Securities 287 301 307 324 328 Interest income (TE) 102,391 101,504 98,666 102,636 104,413 Interest expense (GAAP) 18,042 17,860 17,202 19,252 21,300 Net interest income (TE) $ 84,349 $ 83,644 $ 81,464 $ 83,384 $ 83,113 Net interest income (GAAP) $ 84,049 $ 83,329 $ 81,144 $ 83,051 $ 82,775 Average interest earning assets $ 6,352,216 $ 6,420,660 $ 6,422,348 $ 6,504,791 $ 6,528,829 Net interest margin (GAAP) 5.25% 5.21% 5.12% 5.07% 5.03% Net interest margin (TE) 5.27% 5.23% 5.14% 5.09% 5.05%
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14 GAAP Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Efficiency Ratio (GAAP) Noninterest expense $ 51,622 $ 51,252 $ 50,210 $ 52,935 $ 63,163 Less amortization of core deposit intangibles 1,149 1,167 1,176 1,235 1,251 Less other real estate expense, net (30) 52 (186) 81 128 Less acquisition related costs, net of gains on branch sales N/A N/A N/A N/A N/A Noninterest expense less adjustments $ 50,503 $ 50,033 $ 49,220 $ 51,619 $ 61,784 Net interest income $ 84,049 $ 83,329 $ 81,144 $ 83,051 $ 82,775 Taxable-equivalent adjustment: Loans N/A N/A N/A N/A N/A Securities N/A N/A N/A N/A N/A Net interest income including adjustments 84,049 83,329 81,144 83,051 82,775 Noninterest income 13,070 13,261 12,630 12,154 13,109 Less death benefit related to BOLI - - - - 430 Less securities (losses) gains (1) - - 8 (1) Less MSRs mark to market gains (losses) 623 (152) (152) (428) (389) Taxable-equivalent adjustment: Change in cash surrender value of BOLI N/A N/A N/A N/A N/A Noninterest income including adjustments 12,448 13,413 12,782 12,574 13,069 Net interest income including adjustments plus noninterest income including adjustments $ 96,497 $ 96,742 $ 93,926 $ 95,625 $ 95,844 Efficiency ratio (GAAP) 52.34% 51.72% 52.40% 53.98% 64.46% N/A - Not applicable. Non-GAAP Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Adjusted Efficiency Ratio (non-GAAP) Noninterest expense $ 51,622 $ 51,252 $ 50,210 $ 52,935 $ 63,163 Less amortization of core deposit intangibles 1,149 1,167 1,176 1,235 1,251 Less other real estate expense, net (30) 52 (186) 81 128 Less acquisition related costs, net of gains on branch sales - 526 349 2,296 11,508 Noninterest expense less adjustments $ 50,503 $ 49,507 $ 48,871 $ 49,323 $ 50,276 Net interest income $ 84,049 $ 83,329 $ 81,144 $ 83,051 $ 82,775 Taxable-equivalent adjustment: Loans 13 14 13 9 10 Securities 287 301 307 324 328 Net interest income including adjustments 84,349 83,644 81,464 83,384 83,113 Noninterest income 13,070 13,261 12,630 12,154 13,109 Less death benefit related to BOLI - - - - 430 Less securities (losses) gains (1) - - 8 (1) Less MSRs mark to market gains (losses) 623 (152) (152) (428) (389) Taxable-equivalent adjustment: Change in cash surrender value of BOLI 212 390 288 222 312 Noninterest income including adjustments 12,660 13,803 13,070 12,796 13,381 Net interest income including adjustments plus noninterest income including adjustments $ 97,009 $ 97,447 $ 94,534 $ 96,180 $ 96,494 Adjusted efficiency ratio (non-GAAP) 52.06% 50.80% 51.70% 51.28% 52.10%
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15 Quarters Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Adjusted Return on Average Tangible Common Equity Ratio Net income (GAAP) $ 28,940 $ 28,179 $ 25,585 $ 28,787 $ 9,871 Income before income taxes (GAAP) $ 38,747 $ 37,838 $ 34,064 $ 39,270 $ 13,068 Pre-tax income adjustments: Provision for credit losses - Day Two - - - - 13,153 Securities losses (gains), net 1 - - (8) 1 MSR (gains) losses (623) 152 152 428 389 Acquisition related costs, net of gains on branch sales - 526 349 2,296 11,508 Death benefit realized on BOLI - - - - (430) Amortization of core deposit intangibles 1,149 1,167 1,176 1,235 1,251 Adjusted net income, excluding intangibles amortization, before taxes 39,274 39,683 35,741 43,221 38,940 Taxes on adjusted net income 9,940 10,130 8,896 11,538 9,632 Adjusted net income (non-GAAP) $ 29,334 $ 29,553 $ 26,845 $ 31,683 $ 29,308 Total Average Common Equity $ 899,529 $ 899,117 $ 907,987 $ 883,986 $ 849,998 Less average goodwill and intangible assets 149,954 151,112 152,269 154,416 153,412 Average tangible common equity (non-GAAP) $ 749,575 $ 748,005 $ 755,718 $ 729,570 $ 696,586 Total Common Equity $ 878,552 $ 902,811 $ 893,297 $ 896,768 $ 866,685 Less goodwill and intangible assets 149,396 150,545 151,712 152,888 155,189 Tangible common equity $ 729,156 $ 752,266 $ 741,585 $ 743,880 $ 711,496 Total Assets $ 6,778,591 $ 6,870,305 $ 6,849,221 $ 6,902,675 $ 6,991,754 Less goodwill and intangible assets 149,396 150,545 151,712 152,888 155,189 Tangible assets $ 6,629,195 $ 6,719,760 $ 6,697,509 $ 6,749,787 $ 6,836,565 Return on average common equity (GAAP) 12.76% 12.57% 11.43% 12.92% 4.61% Return on average tangible common equity (non-GAAP) 15.77% 15.58% 14.20% 16.15% 6.16% Adjusted return on average tangible common equity (non-GAAP) 15.53% 15.85% 14.41% 17.23% 16.69% Tangible common equity to tangible assets 11.00% 11.19% 11.07% 11.02% 10.41%