OLD SECOND BANCORP INC

Investing in shares of our common stock involves certain risks, including those identified and described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as well as cautionary statements contained in this Quarterly Report, on Form 10-Q, including those under the caption “Cautionary Note Regarding Forward-Looking Statements.”

In addition to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, we have identified a new risk factor related to our powersports loan portfolio, as described below. Except as set forth herein, there have been no material changes to the risk factors previously disclosed.

Risks Related to Our Powersports Loan Portfolio

Our powersports loan portfolio, acquired as part of the Bancorp Financial transaction, exposes us to unique risks that differ from our traditional lending activities. Powersports loans generally have higher yields but also higher default rates and loss severities, particularly during periods of economic stress. The collateral securing these loans (such as motorcycles, ATVs, and similar vehicles) tends to depreciate rapidly and may be more difficult to repossess and liquidate than traditional auto or real estate collateral. In the third quarter of 2025, we experienced a significant increase in net charge-offs primarily attributable to this portfolio. If credit performance in the powersports segment deteriorates further, we may be required to increase our allowance for credit losses, which could adversely affect our results of operations and financial condition. Additionally, rapid growth in this portfolio may increase our exposure to concentration risk and could subject us to increased regulatory scrutiny.