Company: OSBC
Filing Date: 2025-04-23
Form Type: S-4
Source: 0001104659-25-037832
Chunk: 189

Company: OLD SECOND BANCORP INC
Filing Date: 2025-04-23
Form: S-4
Chunk 189
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 using the interest method.

The Company’s loan portfolio is segmented as follows:

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Commercial and industrial

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Commercial real estate

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Construction and development

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Residential real estate

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Home equity loans and lines of credit

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Powersport

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Installment and other

Generally, loans are considered past due when contractual payments are delinquent for 30 days or greater.

The accrual of interest on all loans, except for powersport loans and certain installment loans, is discontinued at the time the loan is 90 days past due (unless the credit is well-secured and in process of collection); or if any of the following conditions exist:

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It becomes evident that the borrower will not make payments, or will not or cannot meet the terms for renewal of a matured loan;

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When full repayment of principal and interest is not expected;

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TABLE OF CONTENTS

#### Bancorp Financial, Inc. and Subsidiary

### Notes to Consolidated Financial Statements
**Note 1. Summary of Significant Accounting Policies (continued)**

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When the loan is graded “substandard”, is more than 30 days delinquent and the future accrual of interest is not protected by sound collateral values;

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When the loan is graded “doubtful”;

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When the borrower files bankruptcy and an approved plan of reorganization or liquidation is not anticipated in the near future; or

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When foreclosure action is initiated.

All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, the loan is well secured and in the process of collection and future principal and interest payments are not in doubt.

Powersport loans and certain installment loans are not put on nonaccrual status. These loans are charged-off at the earlier of the time management determines a loss or when the loan becomes 120 days delinquent. Powersport and certain installment loans where the borrower has filed a chapter 13 bankruptcy may remain as an active loan until it becomes past due over 180 days.

Allowance for credit losses: On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Loss