Company: OSBC
Filing Date: 2025-05-08
Form Type: 424B3
Source: 0001104659-25-046065
Chunk: 165

Company: OLD SECOND BANCORP INC
Filing Date: 2025-05-08
Form: 424B3
Chunk 165
---
 | ​ | ​ | ​ | ​    | $ | 18,384 | ​ | ​ | ​ | ​             | ​ | -17.8 | ​ | ​ |

Classified loans include nonaccrual loans and all other loans considered substandard. Classified assets include both classified loans and repossessed assets. Loans classified as substandard are inadequately protected by either the current net worth and ability to meet payment obligations of the obligor, or by the collateral pledged to secure the loan, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt, and carry the distinct possibility that we will sustain some loss if deficiencies remain uncorrected. Total classified loans decreased in 2024 by $3.3 million compared to 2023. The decrease is due to paydowns and payoffs received during the year on loans classified as substandard. Problem Loans Bancorp Financial utilizes an internal asset classification system as a means of reporting potential problem powersport, commercial and industrial, commercial real estate, construction and development and other consumer watch list loans. Loans classified as substandard include those that have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. These assets are characterized by the distinct possibility that we will sustain some loss of principal and/or interest if the deficiencies are not corrected. Loans classified as doubtful have all the weaknesses inherent as those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, highly questionable and improbable. Loans classified as loss are considered uncollectible and of such little value that some or all of the value is no longer warranted. Loans that do not currently expose us to sufficient risk to warrant adverse classification in one of the categories, but possess weaknesses that deserve management’s close attention, are deemed to be special mention, which are not considered classified assets.

112

TABLE OF CONTENTS

Allowance for Credit Losses The following tables summarize the activity in our allowance for credit losses (ACL) for the years ended December 31, 2024 and 2023: Analysis of Allowance for Credit Losses

| (Dollars in thousands)                          | ​ | ​ | 2024 |   |           |   | ​ | ​ | 2023 |   |           |   | ​ |
|:------------------------------------------------|:--|:--|:-----|:--|----------:|:--|:--|:--|:-----|