Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 000-10537 (Exact name of Registrant as specified in its charter) of incorporation or organization) Indicate by check mark whether ...

Financial Data and Key Metrics Changes - Net income for Q1 2022 was $12 million or $0.27 per diluted share, adjusted net income excluding acquisition costs was $16.1 million or $0.36 per share [6] - Return on assets was 1.05%, return on tangible common equity was 16.97%, and the efficiency ratio was 61.38% [6] - Net interest income increased by $12.6 million from the previous quarter and $17.7 million from the same quarter last year [18] Business Line Data and Key Metrics Changes - Loan growth within legacy Old Second totaled $82 million in Q1 2022, with strong early indications for Q2 [11] - Over $300 million in loan originations occurred in Q1 2022, with a two-year average of $500 million in annual originations [8][11] - Noninterest income increased by $1.5 million due to MSR market gains and other service charges [25] Market Data and Key Metrics Changes - Nonperforming loans decreased by $6.7 million compared to the prior quarter, with total classified loans down by $8.1 million to $66.6 million [13][14] - The allowance for credit losses totaled $44.3 million, consistent with the previous quarter [14] Company Strategy and Development Direction - The company aims to build back towards an 80%-plus loan-to-deposit ratio to drive returns on equity [16] - Focus on deploying liquidity to leverage the quality of the deposit base and make prudent investments in the securities portfolio [16] - The company is optimistic about loan growth opportunities and is actively recruiting to enhance its sales team [22][32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, with expectations of improved credit metrics and loan growth [15][26] - The company is well-positioned to benefit from rising interest rates, which are expected to enhance profitability [31] - Management noted that the integration of West Suburban has been smooth, with no significant customer disruptions [7][32] Other Important Information - Total merger-related costs recorded in Q1 2022 were $5.6 million [15] - The company is experiencing wage inflation and challenges in hiring, but is managing expenses effectively [27] Q&A Session Summary Question: Balance sheet mix and liquidity management - Management indicated that they will be cautious with liquidity and not rush into significant investments [36][38] Question: Loan-to-deposit ratio target timeline - Management expects it to take over two years to reach an 80% loan-to-deposit ratio, barring significant macroeconomic changes [39] Question: Margin outlook with Fed rate increases - Management confirmed that each 25 basis point increase in Fed funds would benefit net interest income by $2 million to $3 million after tax [24][42] Question: Cost savings and reinvestment plans - Management stated that they expect to exceed cost-saving targets and will focus on branch rationalization [46][72] Question: Loan origination expectations for the year - Management is optimistic about reaching $800 million to $1 billion in loan originations by year-end [56] Question: Progress of the lending team and new hires - Management confirmed that the new lending team is producing well, particularly in commercial real estate and healthcare [65][68] Question: Tax rate expectations - Management indicated a tax rate expectation of around 25% moving forward [48]

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, 2021 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 Delaware 36-3143493 (State of Incorporation) (IRS Employer Identification Number) 37 South River Street, Aurora, Illinoi ...

Financial Data and Key Metrics Changes - The company reported a net loss of $9.1 million or $0.26 per diluted share in Q4 2021, while net income excluding acquisition-related adjustments was $12.5 million or $0.36 per share [2] - For the full year, earnings were $41.9 million or $1.36 per diluted share, with a return on assets (ROA) of 1.20% and a return on tangible common equity (ROTC) of 13.66% [3] - The efficiency ratio for Q4 was 66.1%, and for the full year, it was 65.8% [2][3] Business Line Data and Key Metrics Changes - The West Suburban acquisition added $1.5 billion in loans and $1.07 billion in securities to the balance sheet [4] - Non-performing loans increased by $15.7 million due to the West Suburban portfolio, while legacy Old Second non-performing loans decreased by $2 million [5] - The allowance for credit losses totaled $44.3 million as of December 31, representing 1.3% of total loans [6] Market Data and Key Metrics Changes - The company is seeing significant pipeline builds in commercial real estate and healthcare, although commercial and industrial (CNI) activity remains soft [4] - The economic outlook assumes an unemployment rate of approximately 5% to 6% through the end of 2022, a decline from previous estimates [12] Company Strategy and Development Direction - The company aims to build back towards an 80% loan-to-deposit ratio to drive returns on equity [3] - There is a focus on deploying liquidity to leverage the quality of the deposit base and build commercial loan origination capabilities [3] - The company is cautiously optimistic about the economic environment, with a focus on expense discipline and cost-saving targets [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth opportunities, particularly in commercial real estate and healthcare, with expectations for mid to upper single-digit loan growth [18] - The company is actively hiring to double its loan origination capability within a year of the West Suburban acquisition [10] - Management acknowledged inflationary pressures affecting expenses, particularly in salaries and benefits [14] Other Important Information - Total merger-related costs of $12.8 million were recorded in Q4, including severance and retention costs [7] - The company is focused on integrating the West Suburban acquisition and expects to see cost savings materialize by mid-second quarter [46] Q&A Session Summary Question: Outlook for organic loan growth - Management noted increased demand and substantial talent additions, expecting mid to upper single-digit loan growth fueled by a strong pipeline in commercial real estate and healthcare [18] Question: Loan-to-deposit ratio and security book growth - The company plans to grow both the loan and security portfolios, with expectations for liquidity to drain as rates rise [19] Question: Cost savings progress and expense cadence - Management expects to reach a fully phased-in run rate for cost savings within the year [20] Question: Reserve outlook with expected loan growth - Provision growth is expected to lag behind loan growth, with a cautious approach to assumptions [28] Question: Charge-off expectations for 2022 - Management expressed optimism about credit quality, noting stable early-stage delinquencies and minimal new issues [31] Question: Margin outlook and impact of rate hikes - A rate hike could positively impact margins, with estimates of $2 million to $3 million in net income for each hike [38] Question: Appetite for additional M&A - The company is focused on integrating the West Suburban acquisition before considering further M&A opportunities [39]

Dividends and Mergers - The Company declared a cash dividend of $0.05 per share, totaling $1.4 million, payable on November 8, 2021[34]. - The proposed merger with West Suburban Bancorp, Inc. is expected to close in December 2021, with West Suburban shareholders receiving 42.413 shares of Company common stock and $271.15 in cash for each share owned[36]. - Post-merger, the Company's stockholders are expected to hold approximately 64% of the issued and outstanding shares, while West Suburban's shareholders will hold approximately 36%[37]. Securities and Investments - As of September 30, 2021, the total securities available-for-sale amounted to $715.188 million, with gross unrealized gains of $21.205 million and gross unrealized losses of $1.717 million[43]. - The amortized cost of securities available-for-sale was $695.700 million as of September 30, 2021, with a weighted average yield of 1.88%[45]. - The Company's investments included $154.5 million in asset-backed securities backed by student loans under the Federal Family Education Loan program, with a guarantee from the U.S. Department of Education at not less than 97%[46]. - The investment portfolio serves both liquidity needs and income objectives, with adjustments made based on loan demand and interest income goals[38]. - Securities valued at $353.2 million were pledged to secure deposits and borrowings, an increase from $335.8 million at year-end 2020[50]. - The total fair value of securities available-for-sale was $715,188,000 as of September 30, 2021, compared to $496,178,000 on December 31, 2020[124][126]. Loans and Credit Losses - Total loans amounted to $1.87 billion as of September 30, 2021, a decrease from $2.03 billion at December 31, 2020, reflecting a reduction of approximately 8.2%[51]. - The allowance for credit losses on loans was $26.9 million as of September 30, 2021, down from $33.9 million at the end of 2020, indicating a decrease of about 20.5%[51]. - The Company had no credit losses recognized for the third quarter of 2021, as no credit quality deterioration was noted[47]. - The total past due loans amounted to $14.316 million, with 90 days or greater past due loans at $10.240 million, representing a total loan portfolio of $1.867 billion[60]. - Nonaccrual loans increased to $27.520 million as of September 30, 2021, compared to $22.280 million as of December 31, 2020[62]. - The total release of credit losses for the first nine months of 2021 amounted to $8.0 million, which included a $7.2 million reserve release on loans and an $813,000 release of expense in the provision for credit losses on unfunded commitments[151]. Financial Performance - Net income for the third quarter of 2021 was $8.4 million, or $0.29 per diluted share, compared to $10.3 million, or $0.34 per diluted share, for the same period in 2020[161]. - For the nine months ended September 30, 2021, net income was $29.1 million, or $0.99 per diluted share, compared to $19.8 million, or $0.65 per diluted share, for the same period in 2020[170]. - The effective tax rate for Q3 2021 was 25.8%, down from 26.3% in Q2 2021[215]. - Noninterest income decreased to $9.3 million in the third quarter of 2021 from $11.7 million in the same quarter of 2020, primarily due to a $3.4 million decrease in residential mortgage banking revenue[161]. Capital and Regulatory Compliance - The Bank's Tier 1 capital leverage ratio was 10.83% as of September 30, 2021, an increase of 9 basis points from December 31, 2020, exceeding the 8.00% objective[102]. - The total capital ratio was 16.69% as of September 30, 2021, an increase of 168 basis points from December 31, 2020, well above the 12.00% objective[102]. - The Company has repurchased a total of 1,485,307 shares under the stock repurchase program since its inception, with 9,519 shares remaining available for repurchase as of September 30, 2021[109]. - The Company is expected to no longer be considered a "small bank holding company" in March 2022 due to total assets exceeding $3.0 billion as of June 30, 2021[104]. Asset Management and Economic Risks - The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily through the management of its assets and liabilities[127]. - The quality of the loan portfolio is influenced by the economic health of the communities served, with real estate lending comprising 73.4% of the portfolio as of September 30, 2021[222]. - The COVID-19 pandemic has not significantly impacted the overall health of the real estate industry in the Company’s markets, which have shown relative stability over the past three years[151]. Noninterest Expenses - Total noninterest expense for Q3 2021 was $22,129 million, an increase of $1,863 million, or 9.2%, compared to Q3 2020[204]. - Salaries and employee benefits increased by $378,000 in Q3 2021 compared to Q3 2020, with officer incentive compensation rising by $244,000[208]. - Legal fees increased by $286,000 in Q3 2021, primarily due to merger-related costs[209]. - Other expenses increased by $994,000 for the nine months ended September 30, 2021, primarily due to management and consulting fees related to the pending merger[213].

Old Second Bancorp, Inc. (NASDAQ:OSBC) Q3 2021 Earnings Conference Call October 21, 2021 11:00 AM ET CorporateParticipants Jim Eccher - Chief Executive Officer Brad Adams - Chief Financial Officer ConferenceCall Participants David Long - Raymond James Nathan Race - Piper Sandler Chris McGratty - KBW Brian Martin - Janney Montgomery Scott Operator Good morning, everyone, and thank you for joining us today for Old Second Bancorp Inc's Third Quarter 2021 Earnings Call. On the call today is Jim Eccher, the comp ...

Dividends and Mergers - The Company declared a cash dividend of $0.05 per share, totaling $1.4 million, payable on August 9, 2021[34]. - The Company announced a merger agreement with West Suburban Bancorp, Inc., where each West Suburban shareholder will receive 42.413 shares of the Company's common stock and $271.15 in cash per share[35][36]. - The merger transaction is expected to close in the fourth quarter of 2021, pending regulatory approvals and shareholder approvals[37]. Investment Portfolio - As of June 30, 2021, the total securities available-for-sale amounted to $579.948 million, with gross unrealized gains of $24.111 million and losses of $1.370 million[43]. - The investment portfolio includes $109.3 million in asset-backed securities backed by student loans under the Federal Family Education Loan program, with a guarantee from the U.S. Department of Education of at least 97%[46]. - The weighted average yield of total securities available-for-sale is 2.16% as of June 30, 2021[45]. - The amortized cost of U.S. Treasury securities was $4.016 million with a fair value of $4.086 million as of June 30, 2021[43]. - The Company’s investment portfolio reflects liquidity needs, loan demand, and interest income objectives, with adjustments made as necessary[38]. - As of June 30, 2021, the Company had invested $32.957 million in securities from Towd Point Mortgage Trust, with a fair value of $34.661 million[47]. - The total unrealized losses on securities available-for-sale were $102.349 million, with 24 securities in an unrealized loss position[47]. - For the three months ended June 30, 2021, the Company reported proceeds from sales of securities at $8.202 million, with net realized gains of $2, compared to a net loss of $24 in the same period of 2020[50]. Loans and Credit Quality - Total loans as of June 30, 2021, amounted to $1.903 billion, a decrease from $2.035 billion at December 31, 2020[51]. - The allowance for credit losses on loans was $28.639 million as of June 30, 2021, down from $33.855 million at the end of 2020[51]. - Real estate-related loans represented 73.2% of the loan portfolio as of June 30, 2021[53]. - Securities valued at $324.1 million were pledged to secure deposits and borrowings, a decrease from $335.8 million at year-end 2020[50]. - The Company held $70.2 million in Paycheck Protection Program (PPP) loans as of June 30, 2021[51]. - No credit losses were determined to be present as of June 30, 2021, indicating no credit quality deterioration noted[47]. - The allowance for credit losses (ACL) for loans as of June 30, 2021, was $28,639,000, down from $30,967,000 at the beginning of the period, reflecting a decrease of $2,263,000[54]. - The provision for credit losses for the three months ended June 30, 2021, included a charge-off of $301,000 and recoveries of $236,000[54]. - The total ACL on loans excludes $2,200,000 of allowance for unfunded commitments as of June 30, 2021[56]. - The total collateral dependent loans as of June 30, 2021, amounted to $33,990,000, with an allocated ACL of $4,550,000[57]. - Total past due loans amounted to $19.964 million, with 90 days or greater past due loans at $8.567 million, as of June 30, 2021[58]. - Nonaccrual loans totaled $22.784 million as of June 30, 2021, compared to $22.280 million on December 31, 2020[60]. - The company recognized $28,000 of interest on nonaccrual loans during the three months ended June 30, 2021[60]. - Loans classified as substandard indicate a distinct possibility of loss if deficiencies are not corrected, impacting overall credit quality[62]. - The company categorizes loans into credit risk categories based on financial information and economic trends, with quarterly reviews for classified risk ratings[61]. Financial Performance - The Company had a net income of $8.8 million for the three months ended June 30, 2021, resulting in basic earnings per share of $0.30, compared to $9.2 million and $0.31 for the same period in 2020[99]. - The weighted-average common shares outstanding decreased to 28,849,015 for the three months ended June 30, 2021, from 29,637,567 in the prior year[99]. - The effective tax rate applied to net realized gains was 0.0% for the three months ended June 30, 2021[50]. - Net interest and dividend income for Q2 2021 was $22.0 million, down from $22.7 million in Q2 2020, primarily due to a $1.5 million decline in interest income from loans[163]. - Noninterest income for Q2 2021 was $7.9 million, down from $10.7 million in Q2 2020, primarily due to a $3.5 million decrease in mortgage banking revenue[163]. - The provision for credit losses resulted in a $3.5 million net benefit in Q2 2021, compared to a provision of $2.1 million in Q2 2020, driven by a reserve release[163]. - For the six months ended June 30, 2021, net income was $20.7 million, or $0.70 per diluted share, compared to $9.5 million, or $0.31 per diluted share, for the same period in 2020[174]. - Net interest and dividend income for the six months ended June 30, 2021, was $45.5 million, relatively flat compared to $45.4 million for the same period in 2020[175]. Capital and Regulatory Compliance - The Company maintained a Tier 1 leverage capital ratio above 8% and a total risk-based capital ratio above 12% as of June 30, 2021, exceeding regulatory requirements[100]. - The Bank's total capital ratio was 16.33%, an increase of 133 basis points from December 31, 2020, exceeding the 12.00% objective[101]. - The Company is expected to no longer be considered a "small bank holding company" in March 2022 due to total assets exceeding $3.0 billion[103]. - The Bank must maintain a capital conservation buffer of 2.50% above the new regulatory minimum capital requirements to avoid additional limitations on capital distributions[108]. - The cumulative amount not recognized in regulatory capital due to the CECL transition adjustment was $4.5 million as of June 30, 2021[107]. - The Company exceeded the general minimum regulatory requirements to be considered "well capitalized" under current capital ratios[106]. Asset Quality and Nonperforming Loans - Asset quality remained stable, with nonperforming loans as a percentage of total loans at 1.2% as of June 30, 2021, compared to 1.1% at December 31, 2020[169]. - Nonperforming loans increased slightly to $23.1 million as of June 30, 2021, from $23.0 million at December 31, 2020, with a nonperforming loans ratio of 1.2%[220]. - The allowance for credit losses was $28.6 million, representing 1.5% of total loans as of June 30, 2021[224]. - Total nonperforming assets decreased by 2.0% to $25.0 million as of June 30, 2021, compared to $25.5 million at December 31, 2020[224]. Other Financial Metrics - Total deposits increased to $2,682,001,000 as of June 30, 2021, compared to $2,537,073,000 at the end of 2020, reflecting a growth of approximately 5.7%[81]. - Total assets increased to $3,238,832 million as of June 30, 2021, compared to $3,097,905 million in the previous quarter, reflecting a growth of 4.6%[193]. - The average balance of interest earning deposits with financial institutions was $499,555 million, yielding an interest expense of $137 million at a rate of 0.11%[193]. - Total securities (tax equivalent) increased to $614,066 million, with an interest income of $3,426 million at a rate of 2.24%[193]. - The total fair value of loans held-for-sale was $6,814,000 as of June 30, 2021[115].

Old Second Bancorp, Inc. (NASDAQ:OSBC) Q2 2021 Results Conference Call July 22, 2021 11:00 AM ET Company Participants Jim Eccher - Chief Executive Officer Brad Adams - Chief Financial Officer Gary Collins - Vice Chairman Conference Call Participants Chris McGratty - KBW Nathan Race - Piper Sandler David Long - Raymond James Brian Martin - Janney Montgomery Scott Operator Good morning, everyone, and thank you for joining us today for Old Second Bancorp's Second Quarter 2021 Earnings Call. On the call today i ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 0-10537 (Exact name of Registrant as specified in its charter) of incorporation or organization) Delaware 36-3143493 (State or ot ...

Old Second Bancorp, Inc. (NASDAQ:OSBC) Q1 2021 Earnings Conference Call April 22, 2021 11:00 AM ET Company Participants Jim Eccher – Chief Executive Officer Brad Adams – Chief Financial Officer Gary Collins – Vice Chairman Conference Call Participants Chris McGratty – KBW Nathan Race – Piper Sandler David Long – Raymond James Brian Martin – Janney Montgomery Scott Operator Good morning, everyone, and thank you for joining us today for Old Second Bancorp, Inc.'s First Quarter 2021 Earnings Call. On the call ...