Company: OSBC
Filing Date: 2025-05-08
Form Type: 424B3
Source: 0001104659-25-046065
Chunk: 166

Company: OLD SECOND BANCORP INC
Filing Date: 2025-05-08
Form: 424B3
Chunk 166
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 to total average loans | ​ | ​ | ​    | ​ |      1.7% | ​ | ​ | ​ | ​    | ​ |      1.7% | ​ | ​ |
| Nonaccrual loans to gross loans outstanding     | ​ | ​ | ​    | ​ |      0.1% | ​ | ​ | ​ | ​    | ​ |      0.0% | ​ | ​ |
| Nonperforming loans to gross loans outstanding  | ​ | ​ | ​    | ​ |      0.4% | ​ | ​ | ​ | ​    | ​ |      1.0% | ​ | ​ |
| ACL on loans at year end to nonaccrual loans    | ​ | ​ | ​    | ​ |  1,156.8% | ​ | ​ | ​ | ​    | ​ |  7,773.1% | ​ | ​ |

Bancorp Financial’s ACL was $20.6 million at December 31, 2024, compared to $21.1 million at December 31, 2023. The ACL as a percentage of gross loans was 1.7% as of December 31, 2024 and 2023. In management’s judgment, an adequate allowance for estimated losses has been established; however, there can be no assurance that losses will not exceed the estimated amounts in the future. The ACL on unfunded commitments, included in other liabilities, was immaterial at year end 2024 and 2023. The ACL is the current estimate of the expected credit losses based on historical experience, current conditions and reasonable and supportable forecasts. The ACL on loans is increased by charges to provision for credit losses and reduced by charge-offs, net of recoveries. Management evaluates the appropriateness of the ACL on loans quarterly, and this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change from period to period. To appropriately measure expected credit

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losses, our management disaggregates the loan portfolio into pools of similar risk characteristics or segments based on a variety of factors including, but not limited to, underwriting standards, collateral, and associated risks of certain portfolios. Our management uses modeling methodologies that include quantitative analysis to estimate lifetime credit loss rates on each segment, based on origination year utilizing historical charge off percentages. The net-charge off percentage is applied to the outstanding balances to use in