Company: OSBC
Filing Date: 2025-05-08
Form Type: 424B3
Source: 0001104659-25-046065
Chunk: 87

Company: OLD SECOND BANCORP INC
Filing Date: 2025-05-08
Form: 424B3
Chunk 87
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9.0% and would retain sufficient earnings to maintain that level. In calculating the terminal value of Old Second, KBW applied a range of 10.0x to 12.0x Old Second’s estimated 2030 earnings. This dividend discount model analysis resulted in a range of implied values per share of Old Second common stock of $17.47 to $22.22. The dividend discount model analysis is a widely used valuation methodology, but the results of such methodology are highly dependent on the assumptions that must be made, including asset and earnings growth rates, terminal values, and discount rates. The foregoing dividend discount model analysis did not purport to be indicative of the actual values or expected values of Old Second or the pro forma combined entity. Miscellaneous . KBW acted as financial advisor to Bancorp Financial in connection with the proposed merger and did not act as an advisor to or agent of any other person. As part of its investment banking business, KBW is continually engaged in the valuation of bank and bank holding company securities in connection with acquisitions, negotiated underwritings, secondary distributions of listed and unlisted securities, private placements and valuations for various other purposes. As specialists in the securities of banking companies, KBW has experience in, and knowledge of, the valuation of banking enterprises. KBW and its affiliates, in the ordinary course of its and their broker-dealer businesses, may from time to time

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purchase securities from, and sell securities to, Bancorp Financial and Old Second. In addition, as market makers in securities, KBW and its affiliates may from time to time have a long or short position in, and buy or sell, debt or equity securities of Old Second for its and their own respective accounts and for the accounts of its and their respective customers and clients. Pursuant to the KBW engagement agreement, Bancorp Financial agreed to pay KBW a total cash fee equal to 1.15% of the aggregate merger consideration, $250,000 of which became payable to KBW with the rendering of its opinion and the balance of which is contingent upon the closing of the merger. Other than in connection with the present engagement, KBW did not provide investment banking or financial advisory services to Bancorp Financial during the two years preceding the date of its opinion. During the two years preceding the date of its opinion, KBW provided investment banking and financial advisory services to Old Second and received compensation for such services. KBW acted as financial advisor to Old Second in connection with