8-K: Old Second Bancorp Executive Departs

Old Second Bancorp, Inc. announced the retirement of its Vice Chairman, Gary Collins, effective October 31, 2026, including his resignation from the boards of directors.

Summary

• Gary Collins, Vice Chairman of Old Second Bancorp, Inc. and Old Second National Bank, has announced his retirement, effective October 31, 2026.
• Mr. Collins will also resign from the boards of directors of both the Company and the Bank on his retirement date.
• His retirement is not due to any disagreements regarding the Company's or Bank's operations, policies, or practices.
• The Company and Bank expressed gratitude for Mr. Collins' service.
• A Separation and General Release Agreement has been entered into with Mr. Collins.
• Under the agreement, Mr. Collins will receive approximately $211,150 in lump sum cash payments, full vesting of unvested time-based restricted stock units, pro-rata vesting of performance-based restricted stock units, and limited benefit continuation, subject to his execution and non-revocation of a release of claims.
• Existing restrictive covenants in his employment agreement will remain in effect.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a neutral to slightly negative development due to the departure of a key executive, though the company expresses gratitude for his service and the separation terms appear standard.

Positives

• The departure of Gary Collins is not attributed to any disagreements, indicating a smooth transition.
• The company and bank expressed gratitude for Mr. Collins' years of service and contributions.
• Mr. Collins will receive a separation package including cash payments, accelerated vesting of stock units, and benefit continuation.
• Restrictive covenants remain in place, potentially protecting the company.

Negatives

• The departure of a Vice Chairman and board member represents a loss of experienced leadership.
• The specific financial impact of the separation package on the company is not detailed beyond the cash payment amount.

Risks

• Potential disruption or loss of institutional knowledge with the departure of a long-serving executive.
• The effectiveness of the separation agreement and release of claims in preventing future legal challenges.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the expected filing of the Separation Agreement as an exhibit to a future quarterly report.

Management Comments

• The Company and the Bank thank Mr. Collins for his years of dedicated service and his many contributions.

Industry Context

StockSavvy.ai notes that executive departures, particularly from senior roles like Vice Chairman, are common in the banking sector. The terms of separation packages, including cash payments and equity vesting, are typical for such situations and are subject to regulatory scrutiny and shareholder interest.

Management Changes

Stakeholder Impact

• Shareholders: May be concerned about the loss of experienced leadership, but the separation terms are standard and the departure is amicable.
• Employees: May experience some uncertainty regarding leadership changes, but the company expressed gratitude for the departing executive's service.
• Board of Directors: Will need to address the vacancy created by Mr. Collins' resignation and potentially re-evaluate committee assignments.

Next Steps

• The Company expects to file the full text of the Separation and General Release Agreement as an exhibit to its Quarterly Report on Form 10-Q for the quarter ending September 30, 2026.

Key Dates

Keywords

Executive Retirement, Board Resignation, Separation Agreement, Restricted Stock Units, Corporate Governance, Banking Executive, Leadership Change