Old Second Bancorp (OSBC) investor relations material

Executive summary

• Net income for Q1 2026 was $25.6 million ($0.48 per diluted share), up from $19.8 million in Q1 2025 but down from $28.8 million in Q4 2025; adjusted net income was $26 million ($0.49 per share), reflecting acquisition impacts and excluding MSR valuation and acquisition costs.

• The Bancorp Financial acquisition added $1.2 billion in loans and $1.23 billion in deposits, significantly expanding scale and market presence.

• Tangible book value per share rose to $14.35, up 1.63% sequentially, despite $23.1 million in share repurchases.

• Return on assets was 1.51%, and return on average tangible common equity was 14.2%.

• Board declared a $0.07 per share dividend, payable May 11, 2026.

Financial highlights

• Net interest and dividend income was $81.1 million, up from $62.9 million year-over-year but down $1.9 million sequentially.

• Net interest margin (NIM) reached 5.14%, up 5 bps from last quarter and 26 bps year-over-year.

• Net loan charge-offs totaled $9.8 million, mainly from Powersports and commercial real estate.

• Noninterest income increased to $12.6 million, up 23.8% year-over-year and 3.92% sequentially.

• Noninterest expense decreased $2.7 million from the prior quarter to $50.2 million, with acquisition costs dropping significantly.

Outlook and guidance

• Loan growth for the remainder of 2026 is targeted in the mid-single-digit range.

• Expense growth is expected to remain modest at 3%-4% for the year.

• Margin expected to remain strong near 5%, with some compression possible later in the year.

• Management expects continued focus on disciplined expense management, robust liquidity, and proactive interest rate risk oversight.

• Balance sheet is positioned for improved results over the remainder of the year.