Company: OSBC
Filing Date: 2025-06-30
Form Type: 11-K
Source: 0000357173-25-000063
Chunk: 6

Company: OLD SECOND BANCORP INC
Filing Date: 2025-06-30
Form: 11-K
Chunk 6
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 used to pay administrative expenses in 2024 and 2023. Fees incurred related to administrative expenses on loans and distributions are charged to those participants who incur such fees, per the Plan’s direction.

New Accounting Pronouncements

**No new accounting pronouncements impacting the Plan were adopted in the 2024Plan year.**

#### 3.Risk and Uncertainties
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the financial statements. The Plan has significant investments in Company stock. As a community bank, the Company has a loan portfolio that is concentrated in residential and commercial real estate loans, which involve risks specific to real estate values and the real estate and mortgage markets in general. The exposure to residential and commercial real estate could affect the value of the Company’s stock in the future.

#### 4.Fair Value Measurements
Fair value is defined as the price that would be received by the Plan for an asset or paid by the Plan to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date in the Plan’s principal or most advantageous market for the asset or liability. The fair value hierarchy established also requires the Plan to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy places the highest priority on unadjusted quoted market prices in active markets for identical assets or liabilities (level 1 measurements) and gives the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs within the fair value hierarchy are defined as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Plan has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect the Plan’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level