Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-10537 (Exact name of registrant as specified in its charter) (State of or other jurisdiction of incorporation or organization) ...

Group 1: Performance Strategy - Loan growth expectation: Management anticipates loan growth to reach a mid-single-digit percentage in 2026, with expenses expected to grow moderately at around 3% [1] - Net interest margin stabilization: The net interest margin is expected to stabilize around 5% by 2027 [1] - Capital return plan: The company hinted at a potential share buyback and is open to opportunistic acquisition opportunities, emphasizing that any actions must enhance the bank's fundamentals [1] Group 2: Corporate Governance and Supply Chain - Evergreen Bank integration: The integration of Evergreen Bank was completed in Q4 2025, leading to improved operational efficiency, but attention is needed on the realization of subsequent synergies [2] - Key area risks: The performance of the power sports portfolio (average credit score of 730) may face upward pressure from seasonal charge-off rates; the size of the syndicated loan book has shrunk by approximately 80% over the past five years, necessitating observation of its impact on asset structure [2] Group 3: Industry Policy and Environment - Interest rate policy sensitivity: Adjustments in the Federal Reserve's interest rate policy may affect the net interest margin (currently at 5.09%) and deposit costs (which have decreased to 115 basis points) [3] - Banking regulatory dynamics: In 2026, the Office of the Comptroller of the Currency (OCC) may strengthen scrutiny on capital adequacy and anti-money laundering for mid-sized banks, requiring attention to changes in compliance costs [3]

Core Viewpoint - Old Second Bancorp (OSBC) is focusing on its fourth-quarter performance for 2025 and management outlook, highlighting key events and strategic directions for the upcoming years [1] Group 1: Performance Strategy - Management expects loan growth to reach a low single-digit percentage in 2026, with expenses projected to grow moderately at around 3% [2] - The net interest margin is anticipated to stabilize around 5% by 2027, indicating a positive outlook for profitability [2] - The company hinted at a potential share buyback and is open to opportunistic acquisitions, emphasizing that any actions must enhance the bank's fundamentals [2] Group 2: Company Status - The integration of Evergreen Bank has been completed in the fourth quarter of 2025, leading to improved operational efficiency, though the realization of subsequent synergies needs to be monitored [3] - The performance of the power sports portfolio, with an average credit score of 730, may face upward pressure from seasonal charge-offs [3] - The size of the syndicated loan book has decreased by approximately 80% over the past five years, necessitating observation of its impact on the asset structure [3] Group 3: Industry Policy and Environment - Sensitivity to interest rate policies is noted, as adjustments by the Federal Reserve could affect the net interest margin (currently at 5.09%) and deposit costs (which have decreased to 115 basis points) [4] - The U.S. Office of the Comptroller of the Currency (OCC) is expected to strengthen scrutiny on capital adequacy and anti-money laundering for mid-sized banks in 2026, which may lead to changes in compliance costs [4]

Core Insights - Old Second Bancorp, Inc. (OSBC) is recognized as a high-growth small-cap stock, ranking ninth on a recent list of profitable high-growth stocks [1] - DA Davidson has raised its price target for OSBC to $23 from $22, maintaining a Neutral rating, highlighting the impact of the Evergreen acquisition on Q4 results [2] - The company reported strong fourth-quarter results with net interest and dividend income reaching $83.1 million, supported by a net interest margin of 5.09% and an adjusted efficiency ratio of 51.28% [3] Financial Performance - OSBC's profitability is among the strongest in the industry, with significant growth in net interest and dividend income [3] - The company's tangible common equity and tangible book value have increased, despite dilution from acquisitions, indicating improved capital strength [3] Risks and Considerations - DA Davidson flagged elevated non-performing assets as a key risk for OSBC, which remains higher compared to peers [2][3] - While OSBC shows potential as an investment, there are suggestions that certain AI stocks may offer greater upside potential with less downside risk [5]

Core Viewpoint - DA Davidson raised the price target on Old Second Bancorp (OSBC) to $23 from $22 while maintaining a Neutral rating after the company's Q4 earnings exceeded expectations [1] Financial Performance - The Q4 results highlighted the impact of the Evergreen acquisition, showcasing a high net interest margin of 5.00% [1] - The company experienced higher than historical net charge-offs during the same period [1] Future Outlook - Growth is expected to increase in 2026, supported by effective cost control measures [1] - The elevated non-performing asset balance compared to peers is a concern that requires monitoring [1]

Core Insights - Old Second Bancorp reported strong fourth-quarter performance with a tax-equivalent net interest margin of 5.09%, an increase of 41 basis points year-over-year and 4 basis points from the previous quarter [1] - The company achieved a return on assets (ROA) of 1.64% and a return on average tangible common equity (ROCCE) of 16.15%, with earnings per share up approximately 30% compared to the previous year [2][4] - The net income for the fourth quarter was reported at $28.8 million, or $0.54 per diluted share, with adjustments leading to a net income of $30.8 million, or $0.58 per diluted share [3][6] Financial Performance - The company experienced a decline in deposit costs, with the total cost of deposits falling to 1.15% from 1.33% in the prior quarter, contributing to the strong net interest margin [7] - Non-interest income decreased slightly from the prior quarter but was higher than the year-ago quarter, driven by increases in wealth management fees and service charges [18] - Total non-interest expense declined by $10.2 million from the prior quarter, including a significant decrease in acquisition-related costs [21] Loan and Deposit Trends - Old Second's loan-to-deposit ratio increased to 93.9%, up from 91.4% in the prior quarter, although total loans decreased by $12.4 million [10] - Average loans increased by $60 million, or 1.2%, from the linked quarter, while average deposits declined by approximately $200 million [11] - The company is targeting mid-single-digit loan growth for 2026 despite expected continued runoff in certain commercial real estate participations [5][13] Credit Quality and Charge-offs - The company recorded $6 million in net loan charge-offs during the fourth quarter, with approximately 75% attributed to the power sports and owner-occupied commercial real estate portfolios [14][16] - Non-performing loans increased by $4.8 million, and classified assets rose by $10 million during the quarter [14] - Management expects elevated charge-offs in the power sports segment in the near term due to a higher interest-rate environment, but remains optimistic about the contribution margin in that portfolio [15][16] Capital and Future Outlook - Tangible book value per share increased to $14.12, and the tangible equity ratio rose to 11.02% at year-end [23] - The company anticipates expense growth of around 3% in 2026, moderated by realized cost savings, while also planning for potential share repurchases [22][24] - Management expressed confidence in the integration of Evergreen and aims to drive organic balance sheet growth [24]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $28.8 million, or $0.54 per diluted share, with a return on assets (ROA) of 1.64% and a return on average tangible common equity (ROTCE) of 16.15% [4] - Excluding certain adjusting items, net income was $30.8 million, or $0.58 per diluted share, with tangible book value per share increasing to $14.12 [5] - The tax equivalent efficiency ratio was 53.98%, with a notable improvement in the efficiency ratio adjusted to 51.28% [12] Business Line Data and Key Metrics Changes - The net interest margin (NIM) was exceptionally strong at 5.09%, reflecting a 41 basis points increase year-over-year [6] - Total loans decreased by $12.4 million from the previous quarter, with tax equivalent loan yields declining by 11 basis points [8] - Non-interest income saw a slight decrease compared to the prior quarter but increased compared to the previous year, driven by wealth management fees and service charges on deposits [11] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 93.9% as of year-end, compared to 91.4% last quarter [7] - The total cost of deposits decreased to 115 basis points from 133 basis points in the prior linked quarter [6] - The allowance for credit losses on loans was $72.3 million, or 1.38% of total loans, down from 1.43% in the previous quarter [9] Company Strategy and Development Direction - The company aims to optimize its balance sheet and reduce reliance on wholesale funding while allowing higher-cost deposits to run off [12] - Loan growth is targeted in the mid-single digit range for the upcoming year, with a focus on organic growth and integration of previous acquisitions [16][66] - The management expressed optimism about future performance and opportunities, emphasizing the strength of the bank [17] Management's Comments on Operating Environment and Future Outlook - Management noted that unemployment and GDP forecasts remain stable, with no significant changes in assumptions [10] - The company expects elevated charge-offs in the power sports portfolio due to the nature of the business, but the contribution margin is at a multi-year high [9][22] - Management is optimistic about the first half of 2026, citing a strong pipeline for loan production [53] Other Important Information - The company completed its integration efforts from previous acquisitions, which contributed to improved performance metrics [13] - Non-interest expenses decreased significantly, with a notable reduction in acquisition-related costs [11] Q&A Session Summary Question: Are cost savings fully captured or is there a tail end into 2026? - Management indicated there is a tail end into 2026, with employee benefits expected to rise due to inflationary trends [19] Question: What is the expected net charge-off pace for the power sports portfolio? - Management expects a higher net charge-off rate due to the nature of the power sports business, with $4.5 million of the $6 million charge-off related to this portfolio [21][22] Question: What are the expectations for loan growth in the power sports vertical? - Management anticipates slightly less than mid-single digit growth in the power sports vertical [36] Question: Can you provide insights on the profile of a typical power sports borrower? - The average cycle score for the power sports portfolio is 730, with a busy season from March through the second and third quarters [42] Question: What is the outlook for share repurchases? - Management expects to begin share repurchases in the near term, indicating a lack of price sensitivity [62]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $28.8 million, or $0.54 per diluted share, with a return on assets (ROA) of 1.64% and a return on average tangible common equity (ROTCE) of 16.15% [4] - Excluding certain adjusting items, net income was $30.8 million, or $0.58 per diluted share, with tangible book value per share increasing to $14.12 [5] - The tax equivalent efficiency ratio was 53.98%, with a notable improvement in net interest margin (NIM) to 5.09%, reflecting a 41 basis points increase year-over-year [6][12] Business Line Data and Key Metrics Changes - Total loans decreased by $12.4 million from the previous quarter, with tax equivalent loan yields declining by 11 basis points [7] - The Powersports portfolio showed higher than expected losses given default, but the contribution margin is at a multi-year high, indicating strong profitability [8] - Non-interest income decreased slightly compared to the prior quarter but increased year-over-year, driven by growth in wealth management fees and service charges on deposits [10] Market Data and Key Metrics Changes - The unemployment and GDP forecast views remained static, with no material changes in assumptions based on recent Federal Reserve projections [9] - The loan-to-deposit ratio increased to 93.9% as of year-end, compared to 91.4% in the previous quarter [6] Company Strategy and Development Direction - The company aims to optimize its balance sheet and reduce reliance on wholesale funding, allowing for a more stable funding profile [11] - Loan growth is targeted in the mid-single digit range for the upcoming year, with a focus on organic growth and integration of recent acquisitions [16][69] - The management is optimistic about future opportunities and believes the bank's performance reflects its strength [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's performance and the potential for growth in 2026, despite challenges in the Powersports portfolio [8][17] - The company anticipates a modest decline in margins in the first quarter but expects to maintain a NIM above 5% for the full year [14][58] Other Important Information - The efficiency ratio adjusted to exclude certain costs was 51.28%, indicating strong operational efficiency [11] - The company recorded a decrease in acquisition-related costs, contributing to a decline in total non-interest expenses [10] Q&A Session Summary Question: Are cost savings fully captured or is there a tail end into 2026? - Management indicated there is a tail end in 2026, with employee benefits expected to rise due to inflationary trends [19] Question: What is the expected net charge-off pace for Powersports? - Management expects a higher net charge-off rate due to the nature of the Powersports business, with $4.5 million of the $6 million charge-off related to this portfolio [22] Question: What are the expectations for loan growth in the Powersports vertical? - Management anticipates slightly less than mid-single digit growth for the Powersports vertical [36] Question: Can you describe the profile of a typical Powersports borrower? - The average FICO score for the Powersports portfolio is 730, with a busy season from March to the third quarter [44] Question: What is the outlook for share repurchase and M&A? - Management indicated that share repurchase is likely to begin soon, and the M&A environment is favorable, but any potential deals will be carefully considered [45][66]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $28.8 million, or $0.54 per diluted share, with a return on assets (ROA) of 1.64% and a return on average tangible common equity (ROATCE) of 16.15% [3] - Excluding certain adjusting items, net income was $30.8 million, or $0.58 per diluted share, with tangible book value per share increasing to $14.12 [4] - The tangible equity ratio increased to 11.02%, and Common Equity Tier 1 was 12.99%, up from 12.44% in the previous quarter [4] Business Line Data and Key Metrics Changes - Total loans decreased by $12.4 million from the previous quarter, with tax equivalent loan yields declining by 11 basis points [6] - Non-performing loans increased by $4.8 million, while classified assets rose by $10 million [6] - The allowance for credit losses on loans was $72.3 million, or 1.38% of total loans, down from $75 million [8] Market Data and Key Metrics Changes - The net interest margin (NIM) was exceptionally strong at 5.09%, a 41 basis point increase year-over-year [5] - The total cost of deposits decreased to 115 basis points from 133 basis points in the prior quarter [5] - Average loans increased by $60 million, or 1.2%, over the linked quarter, while average deposits declined by approximately $200 million [13] Company Strategy and Development Direction - The company aims for mid-single digit loan growth in 2026, with a focus on optimizing the balance sheet and reducing reliance on wholesale funding [16][11] - Integration of the Evergreen acquisition is nearly complete, and the company is prioritizing organic growth [56][58] - The management is optimistic about the performance in 2026, particularly in the power sports segment, which has shown a high contribution margin [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's performance and the strength of its operations, despite challenges in the economic environment [17] - The company anticipates a stable margin trend, with potential modest declines in the first quarter of 2026 [15] - The management noted that the unemployment and GDP forecasts remain static, with no significant changes expected [9] Other Important Information - Non-interest income showed a slight decrease compared to the prior quarter but performed well year-over-year, driven by increases in wealth management fees and service charges [10] - Total non-interest expenses decreased by $10.2 million from the prior linked quarter, with a significant reduction in acquisition-related costs [10] Q&A Session Summary Question: Are the cost savings fully captured or is there a tail end at 2026? - Management indicated there is a tail end at 2026, with employee benefits expected to rise due to inflationary trends, but overall expense growth is projected to be around 3% [19] Question: What is the expectation for net charge-off rates in the power sports portfolio? - Management expects a higher net charge-off rate due to the nature of the power sports business, with $4.5 million of the $6 million charge-off related to this segment [21] Question: Can you provide insights on the margin expectations for the first quarter? - Management expressed confidence in maintaining a margin around 5% for the full year, despite potential modest headwinds [27] Question: What is the current status of the West Suburban loan portfolio? - Approximately $285 million remains in the West Suburban portfolio, with expectations of continued runoff [44] Question: What is the company's approach to capital management and potential buybacks? - Management indicated that share repurchases are expected to begin soon, with no price sensitivity at this point [53]

分组1 - Old Second Bancorp (OSBC) reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, and up from $0.44 per share a year ago, representing an earnings surprise of +9.43% [1] - The company posted revenues of $95.21 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 0.47%, but increased from $73.19 million year-over-year [2] - Old Second Bancorp shares have increased approximately 4.5% since the beginning of the year, contrasting with a 0.7% decline in the S&P 500 [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $93.6 million, and for the current fiscal year, it is $2.14 on revenues of $386 million [7] - The Zacks Industry Rank indicates that the Banks - Midwest sector is currently in the bottom 34% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - The estimate revisions trend for Old Second Bancorp was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]