Company: OSBC
Filing Date: 2025-05-06
Form Type: S-4/A
Source: 0001104659-25-045103
Chunk: 151

Company: OLD SECOND BANCORP INC
Filing Date: 2025-05-06
Form: S-4/A
Chunk 151
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 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 values are determined. Recent accounting pronouncements and standards that have impacted or could potentially affect us are also discussed in Note 1 of the consolidated financial statements.

#### Allowance for Credit Losses
The allowance for credit losses (“ACL”) represents management’s estimate of the expected credit losses over the expected contractual life of our loan portfolio. Determining the appropriateness of the ACL is complex and requires judgment by management about the effect of matters that are inherently uncertain. Sub