Company: OSBC
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001558370-25-005000
Chunk: 49

Company: OLD SECOND BANCORP INC
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 49
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 to 49% of peer group percentile | ​ |              50 | (1)​ |
| 1.95                 | ​ |              75 | ​    | ​ | 50% of peer group percentile        | ​ |              75 | ​    |
| 1.80                 | ​ |             100 | (2)​ | ​ | 75% of peer group percentile        | ​ |             100 | (2)​ |
| ≤ 1.35               | ​ |             115 | ​    | ​ | > 75% of peer group percentile      | ​ |             115 | (3)​ |
| ≤ 1.00               | ​ |             120 | (3)​ | ​ | ​                                   | ​ |               ​ | ​    |

| (1) | Represents the threshold level of performance necessary to earn any portion of this objective, which will result in 50% of the assigned weight being earned. |

| (2) | Represents the target level of performance for this objective, which will result in 100% of the assigned weight being earned. |

| (3) | Represents the maximum level of performance for this objective, which will result in 120% or 115% of the assigned weight being earned. |

At December 31, 2024, our nonperforming assets to total loans plus OREO ratio was 1.30%, which resulted in 115.71% earnings from this performance metric. In addition, our net chargeoffs to average loans ratio was 0.36% while the peer group median net chargeoffs to average loans ratio for 2024 was 0.13%. This resulted in no earnings from this performance metric because we did not meet the threshold level.

30

Adjusted Efficiency Ratio The Compensation Committee believes that expense control and efficiency of operations is a goal we should continually strive for in order to provide for the best financial return for our stockholders. Further, the Compensation Committee believes that our named executive officers are best situated to impact our efforts in this regard. As such, Mr. Eccher and Mr. Adams each had a portion of their annual incentive tied to our Adjusted Efficiency Ratio, as noted in the following table. For 2024, our Adjusted Efficiency Ratio was calculated as noninterest expense, excluding OREO expenses, amortization of core deposits, acquisition related costs, and net gains on branch sales, divided by the sum of net interest income, on a fully