Old Second Bancorp, Inc. · NASDAQ:OSBC
Old Second Bancorp — Q1 2021 Earnings Presentation
18 slides from Old Second Bancorp's earnings presentation, Apr 21, 2021
Slide 1: Loan Portfolio Disclosures As of March 31, 2021
Old Second Old Second Bancorp, Inc. Loan Portfolio Disclosures As of March 31, 2021
Slide 2: Loan Portfolio Composition
Loan Portfolio Composition Old Second Balance Outstanding (00's) $1,959,625 MI ONY Total Commitment (00's) $2,437,004 * 1% A Average Loan Commitment $322,355 wi 3% Number of Active Payment Deferrals Modifications 40 as Payment Modification Rate (% of Total Commitment)" 0.82% IN 4% | Loan Type i Cons
Slide 3: Commercial and Industrial
Commercial and Indus Old Second Balance Outstanding (000's) $392,380 + Lending focused on full relationship, small and middie market businesses + Well diversified by industry with limited exposure to Accommodation and Food Total Commitment (000's) $675,393 ‘Services and Entertainmentindustries + Rep
Slide 4: Leasing
Leasing [omar omene ines Balance Outstanding (00's) $138,240 Total Commitment (000's) $140,055 Average Loan Commitment $153,569 Number of Active Payment Deferrals Modifications 16 Payment Modification Rate (% of Total Commitment? 291% Weighted Average Seasoning 1.50 years Geography Q Old Second Dedi
Slide 5: CRE Owner-Occupied
CRE Owner-Occupied Balance Outstanding (00's) $326,857 Lending focused on full relationship, small and middle market businesses + Well diversified by industry with limited exposure to the Accommodation and Total Commitment (00's) $339,483 Food Service and Entertainment industries Feeney een sere $57
Slide 6: Investor CRE
Investor CRE Balance Outstanding (00's) $567,475 + Lending focused on full relationship and strong sponsorship with full recourse ri * Well diversified by property type with limited exposure to high-risk real estate Total Commitment (000's) $578,481 sectors (Hotels, Restaurants, Recreational, “Big B
Slide 7: Investor CRE - Retail
Investor CRE - Retail Balance Outstanding (00's) $137,863 Total Commitment (000's) $139,311 Average Loan Commitment $1,344,912 Number of Active Payment Deferrals Modifications 2 Payment Modification Rate (% of Total Commitment) 437% Weighted Average Seasoning 6.51 years Geography* IL- Other Other St
Slide 8: Investor CRE - Office
Investor CRE - Office Balance Outstanding (00's) $142,869 + Lending focused on full relationship and strong sponsorship with full recourse + No exposure to downtown high-rise Office Total Commitment (000's) $150,624 + Repayment based on strong net operating income, supported by secondary and Average
Slide 9: Multifamily
Multifamily Old Second Multifamily Portfolio Characteristics Balance Outstanding (00's) $178,258 Total Commitment (000's) $179,632 Average Loan Commitment $843,342 Number of Active Payment Deferrals Modifications 4 Payment Modification Rate (% of Total Commitment) 0.60% Weighted Average Seasoning 4.
Slide 10: Construction and Land Development
Construction and Land Development Balance Outstanding (000's) $93,745 + Lending focused on strong sponsorship with full recourse ri * Well diversified by property type with limited exposure to high-riskreal estate Total Commitment (000's) $143,186 (Le. Hotel, Recreational, “Big Box’ Retail, large sc
Slide 11: Payment Modifications
Payment Modifications + Adopted regulatory and accounting guidance to establish COVID-19 payment relief programs for retail and commercial borrowers in March + Approximately one third of all payment relief modifications have been interest only, while the remaining are full payment deferral or requir
Slide 12: Payment Modifications Continued
Payment Modifications Continued Payment Relief Trends (000's) $200,000 $150,000 $100,000 $50,000 ] so Apr ry July : x 31 jodi Ee rom r , ry Me Schedule of Active Modification Maturities *Loans paid off are excluded from Resumed Payment totals $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $
Slide 13: Payment Modifications Continued
Payment Modifications Continued Old Second First Modification Additional Credit management has assessed all (No rating change) Modification (No = 4% rating change) loans coming off payment modification Downgrade to 4% for appropriate risk rating classification. Substandard 5% + To date 33 loans have
Slide 14: SBA Payment Protection Program Loans
SBA Payment Protection Program Loans Old Second Balance Outstanding (00's) $104,544 + Largestloan funded was $4.89 million, with the balance ofloans over $2 million . totaling $18.19 million or 17.4% of total loans funded Total Commitment (000's) $104,544 + Balance of loans under $150,000 totaling $
Slide 15: Allowance for Credit Losses
Allowance for Credit Losses Key methodology assumptions * 1 year economic forecast utilized, assuming recessionary conditions reverting to long-term historical loss rates * Key economic inputs include GDP and civilian unemployment + Loss rates driven by portfolio risk characteristics, average remain
Slide 16: Key Performance Ratios
Key Performance Ratios Credit Quality - Overview + Loan quality has remained strong overthe last several years entering into the current economic environmentas a result of conservative underwriting and experienced lending teams. + Relationship managers continue to work with Borrowers requesting loan
Slide 17: Allowance for Credit Losses — Coverage Ratios
Allowance for Credit Losses — Coverage Ratios Old Second ACLAdequacy ACL/ Total Loans (excluding PPP) $1,980,000 7 2.00% + Despite minimal lossesin the recentyears from loan charge-offs (net of stos 1.73% 1.67% 4. g0% recoveries), the adoption of CECL has allowed managementto increase the $1,960,000
Slide 18: Appendix — Non-GAAP Financial Measurements
Appendix 1 — Non-GAAP Financial Measurements Nonperforming Loans to Total Loans, Payment Modification Rate and ACL to Total Loans Non-GAAP Reconciliations Forthe Year Ended For the Quarter Ended December 31, 2020 March 31, 2021 Nonperforming Loans s 23045 S$ 21,182 Total Loans (GAAP) $ 2.034851 $ 1,