Company: OSBC
Filing Date: 2025-05-06
Form Type: S-4/A
Source: 0001104659-25-045103
Chunk: 193

Company: OLD SECOND BANCORP INC
Filing Date: 2025-05-06
Form: S-4/A
Chunk 193
---
326 “Financial Instruments — Credit Losses” was issued to amend the incurred loss impairment methodology with a methodology that reflects the expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates. In addition, the credit losses relating to the available for sale debt securities should be recorded through an allowance for credit losses rather than a write down. This standard became effective for the Company beginning January 1, 2023. A cumulative effect of change in accounting principle was recorded, net of tax, during the first quarter of 2023 in the amount of $1,150,772. The Company did not record an allowance for credit losses on available-for-sale securities. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326.

In January 2021, ASC Topic 848 “Reference Rate Reform” was issued to provide optional expedients and exceptions for applying GAAP to contracts and other transactions that reference LIBOR, if certain criteria are met. This guidance is effective through December 31, 2022. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period. Adoption of this standard did not have a material impact on the Company’s financial position or results of operations.

In March 2022, the FASB issued ASU 2022-02 “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The ASU applies to creditors who have adopted ASU 2016-13 and eliminates the accounting guidance for TDR’s and requires the entity to evaluate whether the modification represents a new loan or a continuation of an existing loan. This standard became effective for the Company beginning January 1, 2023. Adoption of this standard did not have a material impact on the Company’s financial position or results of operations.

In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires more detailed disclosures of income taxes paid net of refunds received, income from continuing operations before income tax expense or benefit, and income tax