Old Second Bancorp, Inc. (OSBC) SEC Filings & Earnings Calls

Loan losses remained elevated due to one previously identified commercial relationship, though credit trends are improving.

“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” · word for word

Noninterest expense increased due to higher salaries, occupancy, advertising, and professional fees related to a brand awareness campaign.

“Noninterest Expense increased $370,000, or 0.72%” · word for word

Loss of senior leadership (Vice Chairman) could create temporary management gap, though no disagreement suggests orderly transition.

“Retirement of Vice Chairman Gary Collins; no disagreement cited; separation agreement includes standard terms.”

Tariff cost pressure

“We expect that the current uncertainty surrounding U.S. trade relationships may impact our future product costs and margins, particularly to the extent there are significant tariffs or trade restrictions imposed on goods imported from Thailand, Canada, Taiwan or China that are used in our products.”

ASP pressure

“We expect to continue to experience some downward pressure on prices from signing anticipated large multi-year agreements in the near term with multi-year negotiated pricing.”

Supply chain concentration

“Some of the key components in the products we have designed or are currently designing come from limited or single source suppliers.”

Elevated net charge-offs from two larger credits: a downtown Chicago office credit and a cash-flow-dependent commercial relationship, though these were previously downgraded.

“Charge-offs in the second quarter largely resulted from one downtown Chicago office credit and one cash-flow-dependent commercial relationship which had been downgraded in prior quarters.” · word for word

Deposit decline of $120.3M linked-quarter due to seasonal outflows and roll-off of higher-cost brokered deposits, though cost of deposits improved.

“Total deposits were $5.44 billion, a decrease of $120.3 million, or 2.16%.” · word for word

Credit quality deterioration

“Nonperforming loans as a percent of total loans was 1.5% as of March 31, 2026, compared to 1.0% as of December 31, 2025, and 0.9% as of March 31, 2025.” · word for word

High charge-offs in powersport portfolio

“Net charge offs... were primarily due to powersport loans of $4.7 million”

Credit deterioration with higher NPLs and provision, driven by specific large credits.

“Nonperforming loans increased $22.7M; provision $9.5M vs $3.0M; one downtown Chicago office credit and one cash-flow-dependent commercial relationship”

Loan portfolio shrinking, indicating potential demand weakness.

“Loans declined $66.9 million” · word for word

Credit risk from net charge-offs slightly above peer median

“our net chargeoffs to average loans ratio was 0.21%, excluding the National Specialty Lending loans, while the peer group median net chargeoffs to average loans ratio for 2025 was 0.18%.” · word for word

Concentration risk from large institutional holder

“BlackRock, Inc. reported beneficial ownership of 4,155,906 shares of the Company’s common stock.” · word for word

No risk signals; routine earnings date announcement.

Remaining $30M subordinated notes still outstanding, but redemption reduces leverage modestly.

“$30,000,000 aggregate principal amount of the Notes will remain outstanding” · word for word

Credit quality deterioration

“Nonperforming loans increased year over year by $22.5 million, or 74.4%, to $52.8 million at December 31, 2025” · word for word

Powersport loan credit risk

“Powersport net charge-offs $7,446 thousand, representing 1.2% of average powersport loans”

Acquisition integration risk

“Total noninterest expense increased by $44.3 million, or 27.7%, in 2025 compared to 2024, primarily due to acquisition-related costs” · word for word

Concentration in commercial real estate

“Classified commercial real estate – owner occupied loans increased $36.5 million, driven by downgrades of $52.9 million”

Repurchase program subject to market conditions and regulatory limitations; may be suspended or discontinued.

“Repurchases may be initiated, discontinued, suspended or restarted at any time; after Dec 31, 2026 require Fed non-objection.”

Acquisition-related costs remain elevated but declining

“Transaction-related expenses of $2.3 million in Q4 2025, down from $11.5 million in Q3 2025.”

Net interest income growth modest, yields declining on securities

“Interest and dividend income decreased $1.8M QoQ due to declines in rates and volume on securities coupled with a decline on yields.”

No financial data; only scheduling information

“No financial results or guidance provided”

Credit quality deterioration from acquired portfolio

“We recorded a net provision for credit losses on loans and leases of $19.7 million in the third quarter of 2025, driven by the Day Two non-PCD provision for credit losses of $13.2 million based on our assessment of the acquired loans from Bancorp Financial.” · word for word

Deposit cost pressure

“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.” · word for word

Nonperforming loan increase

“Nonperforming loans increased by $17.7 million to $48.0 million at September 30, 2025, from $30.3 million at December 31, 2024.” · word for word