Old Second Bancorp (OSBC) investor relations material

Executive summary

• Q3 2026 net income was $28.9 million, or $0.56 per diluted share, versus $28.2 million and $0.54 in Q2; adjusted net income was $28.5 million, or $0.55 per diluted share.

• Strong margin and efficiency supported profitability; credit indicators improved, although charge-offs remained elevated and higher than desired.

Financial highlights

• Net interest and dividend income was $84.0 million, up $720,000 QoQ and $1.3 million YoY; provision for credit losses was $6.8 million versus $7.5 million in Q2 and $19.7 million in Q3 2025.

• Noninterest income was $13.1 million, down $191,000 QoQ; noninterest expense was $51.6 million, up $370,000 QoQ and down 18.3% YoY.

• Pretax income was $38.7 million and income tax expense was $9.8 million; 9M net income was $82.7 million, or $1.58 per diluted share.

• Total assets were $6.78 billion, loans were $5.24 billion and deposits were $5.33 billion at quarter-end; assets declined $124.1 million from year-end 2025.

Outlook and guidance

• Management targeted low-single-digit Q4 loan growth, citing broad-based building pipelines, and expected a strong Q4 and solid start to Q1 2027.

• Margin was expected to remain above 5.20% near term, with potential ~5 bps of giveback amid loan growth and deposit competition; Q4 deposits were expected to grow.

• Expense growth was expected to remain modest, with a 3%–4% annual growth range and $51.5 million cited as a near-term expense expectation.

• Management expected continued repurchases, with an annual share reduction of 5% while retaining capacity for smaller, fill-in M&A; the Q4 common dividend increased 14%.