Form 4: OSBC CEO Eccher Granted 54,010 Restricted Stock Units

Old Second Bancorp Inc.'s Chairman and CEO, James Eccher, received a grant of 54,010 restricted stock units and had shares withheld for tax obligations.

Summary

• James Eccher, Chairman and CEO of Old Second Bancorp Inc. (OSBC), was granted 54,010 Restricted Stock Units (RSUs) on February 17, 2026.
• These RSUs consist of 27,005 time-based units vesting on the third anniversary of the grant date and 27,005 performance-based units that may vest between 0% and 175% based on compensation committee-approved metrics.
• On February 21, 2026, 7,515 RSUs were disposed of at a price of $20.57 to satisfy tax withholding obligations related to the vesting of 25,038 previously reported time-based RSUs.
• Following these transactions, Mr. Eccher beneficially owns 213,290 Restricted Stock Units.
• His common stock holdings include 347,419 shares held directly and 39,353 shares held indirectly through a 401-K and Profit Sharing plan.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive event, reflecting ongoing executive compensation and alignment of interests, though the tax-related disposition is a neutral, routine occurrence.

Positives

• Grant of 54,010 Restricted Stock Units to the Chairman and CEO, aligning management incentives with shareholder interests.
• The RSU grant includes a performance-based component, potentially rewarding strong company performance.

Negatives

• 7,515 Restricted Stock Units were disposed of to cover tax withholding obligations, reducing the immediate beneficial ownership of RSUs.

Future Outlook

The time-based restricted stock units are set to vest on the third anniversary of the grant date, while performance-based units may vest within a range of 0% to 175% based on future performance metrics. Vested shares will be delivered within 3 to 5 business days from vesting.

Industry Context

StockSavvy.ai notes that executive compensation through equity grants, particularly with performance-based components, is a common practice in the banking sector to align executive incentives with long-term shareholder value creation. This grant to OSBC's Chairman and CEO is consistent with typical compensation structures seen across regional banks.

Comparison to Industry Standards

• StockSavvy.ai observes that the structure of the RSU grant, combining time-based and performance-based vesting, is a standard practice among financial institutions.
• For example, similar compensation structures are utilized by executives at comparable regional banks such as Wintrust Financial Corporation (WTFC) and First Midwest Bancorp (FMBI) before its acquisition, where a mix of equity awards tied to both tenure and specific financial performance targets (e.g., ROA, EPS growth) is common.
• The specific vesting percentages (0-175%) for performance-based units are also within the typical range for such awards in the industry.

Stakeholder Impact

• Shareholders: The RSU grant, particularly the performance-based component, aims to align executive incentives with shareholder value creation. Tax withholding is a routine event.
• Employees: No direct impact mentioned for general employees.

Next Steps

• Time-based restricted stock units will vest on the third anniversary of the grant date (February 17, 2029).
• Performance-based restricted stock units will be evaluated against compensation committee-approved metrics for vesting within a range of 0% to 175%.
• Vested shares, if any, will be delivered to the reporting person within 3 to 5 business days from the date of vesting.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation activities, including a grant of restricted stock units and a disposition for tax purposes. It does not contain new material information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate as this filing alone does not alter the fundamental investment thesis for OSBC.

Keywords

Old Second Bancorp, OSBC, James Eccher, Restricted Stock Units, RSU, Insider Trading, Executive Compensation, Stock Grant, Form 4, Beneficial Ownership