Company: OSBC
Filing Date: 2025-04-23
Form Type: S-4
Source: 0001104659-25-037832
Chunk: 153

Company: OLD SECOND BANCORP INC
Filing Date: 2025-04-23
Form: S-4
Chunk 153
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 and should be read in conjunction with Bancorp Financial’s consolidated financial statements and the related notes thereto included elsewhere in this proxy statement/prospectus. Our historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate trends in operations or results of operations for any future periods.

Bancorp Financial has made, and will continue to make, various forward-looking statements with respect to financial and business matters. Comments regarding our business that are not historical facts are considered forward-looking statements that involve inherent risks and uncertainties. Actual results may differ materially from those contained in these forward-looking statements.

### Financial overview
Bancorp Financial recorded net income of $5.1 million, or $1.71 per fully diluted share, for the year ended December 31, 2024, as compared to $5.8 million, or $1.97 per fully diluted share, for the year ended December 31, 2023. Net income decreased primarily due to less net interest income resulting from higher cost of funds in 2024, partly offset by an increase in non-interest income.

#### Significant accounting policies
Our consolidated financial statements are prepared based on the application of accounting policies in accordance with generally accepted accounting principles (“GAAP”) and follow general practices within the banking industry. These policies require the reliance on estimates, assumptions and judgments, which may prove inaccurate or are subject to variations. Changes in underlying factors, estimates, assumptions or judgments could have a material impact on our future financial condition and results of operations.

Certain policies inherently have a greater reliance on the use of estimates, assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. Bancorp Financial has identified the determination of the allowance for credit losses and fair value measurements of securities available for sale to be the accounting areas that require the most subjective or complex judgments and, as such, could be most subject to revision as new or additional information becomes available or circumstances change, including overall changes in the economic climate and/or market interest rates. Therefore, Bancorp Financial considers these policies, discussed below, to be critical accounting estimates and discusses them directly with the Audit Committee of our board of directors.

Our significant accounting policies are presented in Note 1 of our consolidated financial statements included elsewhere in this proxy statement/prospectus. These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the financial statements and how those