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, 2020 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (630) 892-0202 (Registrant's telephone number, including Area Code) Title of Class Trading Common Stock, $1.00 par value OSBC The Nasdaq Stock Market Sec ...

Financial Data and Key Metrics Changes - Net income for Q4 2020 was $8 million, or $0.27 per diluted share, impacted by $1.3 million in MSR valuation mark-to-market losses despite strong mortgage banking performance [6] - Net interest income increased by $1.4 million from the previous quarter and $700,000 from Q4 2019, positively influenced by the forgiveness of $62.6 million in PPP loans [19][20] - The loan to deposit ratio was slightly over 80% at year-end, stable compared to the previous quarter and significantly improved from 90.8% a year ago [7] Business Line Data and Key Metrics Changes - Fee income declined from the previous quarter due to a seasonal slowdown in mortgage banking revenues and higher mark-to-market losses on MSRs [6][20] - Non-performing and classified assets saw slight increases, but overall asset quality trends remained stable [9] - Loans under modification accounted for approximately 1.4% of the loan book, with 86% of COVID-19 related deferrals returning to payment status or paid off by year-end 2020 [10] Market Data and Key Metrics Changes - Approximately $63 million of PPP loans were forgiven during the quarter, contributing to an increase in net interest margin [7] - The economic outlook remains cautious, with expectations of a prolonged recession and an unemployment rate around 7% through September 2021 [23] Company Strategy and Development Direction - The company is focused on maintaining expense discipline while cautiously deploying excess liquidity into short-dated assets [19][27] - Management is optimistic about potential M&A opportunities and is open to repurchasing stock, given the strong capital position [27][78] - The strategy includes enhancing Chicago distribution and maintaining a disciplined credit culture [80][102] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the underlying economy improving, while acknowledging potential risks from high unemployment and changing consumer demand [12][16] - The company is closely monitoring trends in retail and office commercial real estate, indicating a cautious but proactive approach to new lending relationships [16] - Overall, management remains encouraged by trends in several areas and confident in the strength of the balance sheet [29] Other Important Information - The company has minimal exposure to the hardest-hit industries and has seen marked improvements in credit trends [24][25] - The reserve level stands at 1.73% of total loans, with a focus on maintaining adequate reserves under various economic scenarios [11][12] Q&A Session Summary Question: Capital and Buyback Strategy - Inquiry about the potential for aggressive stock buybacks given high capital levels, with management indicating it is a consideration but with caution due to economic uncertainties [36][38] Question: Revenue Outlook - Discussion on net interest income growth excluding PPP loans, with management expressing confidence in offsetting PPP runoff with better yields from new loans [44][46] Question: Expense Growth and Hiring - Questions regarding expense growth expectations for 2021, with management anticipating a 3% to 4% increase primarily due to returning healthcare claims [55] Question: Loan Growth Drivers - Inquiry about loan growth drivers excluding PPP, with management highlighting successful closures in large relationships and sectors like healthcare [56] Question: M&A Activity - Questions about ongoing M&A conversations and the tone from potential partners, with management noting rational expectations from sellers in the current environment [77][78]

Financial Data and Key Metrics Changes - Net income for Q3 2020 was $10.3 million, or $0.34 per diluted share, positively impacted by higher volumes of mortgage banking activity and net gains on the sale of mortgage loans [6] - Net interest income declined slightly due to reductions in interest rates on variable rate loans, with a reported taxable equivalent margin reduction of 31 basis points [6][16] - The loan to deposit ratio decreased from 84% to 82% due to increased liquidity [6] Business Line Data and Key Metrics Changes - Mortgage banking income increased by $950,000 primarily due to net gains on the sale of mortgage loans [18] - Loans under modification stand at approximately 2.4% of the loan book, with 76% of COVID-19 related deferrals returning to payment status [8][9] - Total loans decreased by $22 million from the previous quarter due to continuing payoff activity and softer origination volume [13] Market Data and Key Metrics Changes - The company has minimal exposure to the hardest-hit industries, with zero direct energy or aircraft exposure and limited hotel and restaurant lending [11] - The overall economic forecast remains cautious, projecting significant economic stress and elevated unemployment rates [12] Company Strategy and Development Direction - The company is focused on protecting employees and customers while seeking new lending relationships [10][12] - Management is optimistic about future opportunities to improve the franchise, emphasizing the importance of timing and liquidity [24] Management's Comments on Operating Environment and Future Outlook - Management remains cautious but encouraged by current trends, confident in the balance sheet, and believes the portfolio is well diversified [12][23] - The company expects to face losses but believes its capital and liquidity position is strong enough to withstand economic challenges [12][20] Other Important Information - The company announced two new additions to its Board of Directors, enhancing its governance and strategic direction [25] - The provision for loan loss totaled $300,000 in Q3, reflecting a cautious approach to potential future losses [19] Q&A Session Summary Question: Loan growth outlook and unfunded commitment ACL - Management sees a pipeline starting to build again and expects to stabilize the portfolio with potential growth in Q4 [27] Question: Core NIM outlook and compression expectations - Management indicated that core NIM is expected to experience some compression due to elevated excess liquidity [29][31] Question: Credit performance and classified loans - A modest uptick in classified loans was noted, with proactive measures in place to manage credit quality [32] Question: Expected losses and risk areas - The leasing portfolio, particularly in the motor coach industry, is identified as having the highest risk for potential losses [36] Question: Reserve assumptions and stimulus package - Management does not currently have expectations built into reserves for a stimulus package [40] Question: Expense management and efficiency - The company has maintained a sub-60% efficiency ratio and plans to continue managing expenses tightly [44] Question: Capital return and buyback expectations - Management indicated a willingness to continue returning capital through buybacks if visibility improves [45] Question: Updates on retail and office portfolios - The retail portfolio shows some concern in smaller retail strips, while the office portfolio remains stable with no loans on deferral [59][61]

Old Second Bancorp, Inc. (NASDAQ:OSBC) Q2 2020 Earnings Conference Call July 23, 2020 11:00 AM ET Company Participants Jim Eccher - CEO Brad Adams - CFO Conference Call Participants Nathan Race - Piper Sandler Chris McGratty - KBW Brian Martin - Janney Montgomery Operator Good morning, everyone, and thank you for joining us today for Old Second Bancorp, Incorporated Second Quarter 2020 Earnings Call. On the call today is Jim Eccher, the company's CEO; Gary Collins, the Vice Chairman of our Board; and the co ...

Old Second Bancorp, Inc. (NASDAQ:OSBC) Q1 2020 Earnings Conference Call April 23, 2020 11:00 AM ET Company Participants Jim Eccher - CEO Gary Collins - Vice Chairman of Board Brad Adams - CFO Conference Call Participants Chris McGratty - KBW Nathan Race - Piper Sandler David Long - Raymond James Brian Martin - Janney Montgomery Operator Good morning, everyone and thank you for joining us for today's Old Second Bancorp, Inc's First Quarter 2020 Earnings Conference Call. On the call today is Jim Eccher, the c ...

Financial Data and Key Metrics Changes - Net income for Q4 2019 was $9.5 million or $0.31 per diluted share, impacted by a compression in net interest margin of 28 basis points from Q3 levels [7] - Core net interest margin contracted by 15 basis points, excluding purchase accounting income and acquired loans [8] - Net interest income declined by $1.6 million compared to the last quarter, with half of the decrease attributed to negative variances and accelerated accretion on acquired loans [17] - Returns on assets and equity remained strong, supported by a healthy net interest margin and solid expense control [10] Business Line Data and Key Metrics Changes - Total loans increased by $31 million from the previous quarter, with strong originations offset by continuing payoff activity [11] - Mortgage banking results softened due to a seasonal slowdown, while trust and wealth management remained steady [9][24] - Fee income declined as mortgage banking income returned to a more normalized level [17] Market Data and Key Metrics Changes - The competition for credit in the market remains aggressive, affecting pricing and structure [13] - The loan to deposit ratio for Q4 2019 remained unchanged at 91% [15] - The weighted average yield on new production loans dropped by 30 to 40 basis points compared to Q3 [66] Company Strategy and Development Direction - The company aims for 5% to 7% loan growth in 2020, excluding any merger activity, while focusing on quality loan growth and core funding [13][21] - There is an emphasis on optimizing the earnings asset mix and funding future loan growth through a mix of deposit growth and balance sheet optimization [22] - The company is evaluating opportunities to return capital to shareholders and reduce high-cost debt [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite challenges posed by potential interest rate declines [29] - The company remains comfortable with asset quality trends, although non-performing assets and classified loans increased modestly [16] - Management highlighted the importance of loan growth in the context of changing short-term rate outlooks [23] Other Important Information - The company expects a $4 million to $6 million increase in the credit loss reserve due to the adoption of CECL [20] - Management noted that the high level of profitability allows for significant investment in future growth [10] Q&A Session Summary Question: On expenses and revenue growth challenges - Management indicated that expense growth is expected to be low-single digits, with careful monitoring of loan growth and prepayment trends [36] Question: On balance sheet optimization and loan growth - Management stated that they can maintain a steady securities portfolio and are prepared to adjust if deposit growth does not meet expectations [37] Question: On capital priorities - Management emphasized that organic loan growth is the primary focus, but they are also considering redeeming high-cost debt [39] Question: On pay down levels for 2020 - Management expects pay down levels to moderate in 2020, following significant acceleration in 2019 [44] Question: On operating leverage and NIM challenges - Management believes positive operating leverage is achievable if LIBOR stabilizes [45] Question: On CECL and provisioning - Management confirmed that the provision level will be higher under CECL but should not differ significantly from historical trends [59] Question: On loan pricing dynamics and competition - Management noted competition from larger banks in urban areas and smaller community banks in rural areas, impacting loan pricing [67]

Start Time: 11:00 January 1, 0000 11:21 AM ET Old Second Bancorp, Inc. (NASDAQ:OSBC) Q2 2019 Earnings Conference Call July 25, 2019, 11:00 AM ET Company Participants Gary Collins - Vice Chairman Jim Eccher - President and CEO Brad Adams - EVP and CFO Conference Call Participants Andrew Liesch - Sandler OÂ'Neill Kelly Motta - Keefe, Bruyette & Woods, Inc. Brian Martin - Janney Montgomery Scott Operator Good morning, everyone, and thank you for joining us today for Old Second Bancorp Inc.'s Second Quarter Ear ...

Old Second Bancorp, Inc. (NASDAQ:OSBC) Q1 2019 Earnings Conference Call April 25, 2019 11:00 AM ET Company Participants Jim Eccher - President and Chief Executive Officer Brad Adams - Executive Vice President and Chief Financial Officer Conference Call Participants Chris McGratty - KBW Kevin Reevey - D.A. Davidson Andrew Liesch - Sandler O'Neill David Long - Raymond James Brian Martin - FIG Partners Operator Good morning everyone and thank you for joining us today for Old Second Bancorp Inc.'s First Quarter ...

Old Second Bancorp, Inc. (NASDAQ:OSBC) Q4 2018 Earnings Conference Call January 24, 2018 11:00 AM ET Company Participants Jim Eccher - President, Chief Executive Officer Brad Adams - Executive Vice President and Chief Financial Officer Conference Call Participants Chris McGratty - Keefe, Bruyette & Woods Kevin Reevey - D.A. Davidson Andrew Liesch - Sandler O'Neill Brian Martin - FIG Partners Operator Good morning everyone and thank you for joining us today for Old Second BancorpÂ's Fourth Quarter 2018 Earni ...