Old Second Bancorp, Inc. · NASDAQ:OSBC
Old Second Bancorp — FY2020 Earnings Presentation
19 slides from Old Second Bancorp's earnings presentation, Jan 27, 2021
Slide 1: Loan Portfolio Disclosures as of December 31, 2020
Old Second Old Second Bancorp, Inc. Loan Portfolio Disclosures As of December 31, 2020
Slide 2: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Old Second Some of he statements in this presentation are “forwasl-looking statements” within the meaning of the Private Securities Litzation Reform Act. Forward-looking statements can be identified by words such as: "expect," “opportunity,” "anti
Slide 3: Loan Portfolio Composition
Loan Portfolio Composition Old Second Geography’ Balance Outstanding (00's) $2,034,851 call BH CD Total Commitment (000's) $2,475,204 3% =” Bee Average Loan Commitment $325,078 wi . Number of Active Payment Deferrals Modifications 51 Payment Modification Rate (% of Total Commitment)" 1.40% Loan Type
Slide 4: Commercial and Industrial
Commercial and Industrial -\Old Second Balance Outstanding (00's) $407,159 + Lending focused on full relationship, small and midde market businesses + Well diversified by industry with limited exposure to Accommodation and Food Total Commitment (000's) $624,483 Services and Entertainmentindustries +
Slide 5: Leasing
Leasing } Leasing Portfolio Characteristics Dedicated Leasing Service lendingteam + Well diversified by industry and by geography with minimal exposure to high risk industries. + Leases over $1MM are underwritten by the Bank's centralized credit department andare reviewed by senior management. Balan
Slide 6: CRE Owner-Occupied
CRE Owner-Occupied Old Second Tee ap ae nc Balance Outstanding (000's) $333,070 Total Commitment (000's) $345,336 Average Loan Commitment $563,354 Number of Active Payment Deferrals (Modifications 14 Payment Modification Rate (% of Total Commitment) 273% Weighted Average Seasoning 6.43 years Geograp
Slide 7: Investor CRE
Investor CRE Old Second Investor CRE Portfolio Characteristics Balance Outstanding (000's) $582,042 Total Commitment (000's) $597,331 Average Loan Commitment $1,711,549 Number of Active Payment Deterrals Modifications 5 Payment Modification Rate (% of Total Commitment) 0.93% Weighted Average Seasoni
Slide 8: Investor CRE - Retail
Investor CRE - Retail - Old Second Balance Outstanding (00's) $149,291 Total Commitment (000's) $150,630 Average Loan Commitment $1,344,912 Number of Active Payment Deferrals Modifications 1 Payment Modification Rate (% of Total Commitment) 1.28% Weighted Average Seasoning 6.35 years Geography* IL-
Slide 9: Investor CRE - Office
Investor CRE - Office Balance Outstanding (000's) $138,788 Total Commitment (000's) $148,057 Average Loan Commitment $1,827,866 Number of Active Payment Deferrals Modifications 1 Payment Modification Rate (% of Total Commitment) 0.08% Weighted Average Seasoning 3.94 years Geography* IL- Other. other
Slide 10: Multifamily
Multifamily Old Second Multifamily Portfolio Characteristics Multifamily Portfolio Characteristics Balance Outstanding (000's) $189,040 Total Commitment (000's) $189,954 Average Loan Commitment $867,369 Number of Active Payment Deferrals ‘Modifications 3 Payment Modification Rate (% of Total Commitm
Slide 11: Construction and Land Development
Construction and Land Development Old Second C&D Portfolio Characteristics C&D Portfolio Characteristics Balance Outstanding (00's) $98,486 Lending focused on strong sponsorship with full recourse : + Well diversified by property type with limited exposure to high-riskreal estate Total Commitment (0
Slide 12: Payment Modifications
Payment Modifications Old Second + 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 deferra
Slide 13: Payment Modifications Continued
Payment Modifications Continued Old Second Payment Relief Trends (00's) $250,000 $200,000 $150,000 $100,000 $50,000 $0 i ' *Loans paid off are excluded from Resumed Payment totals Schedule of Active Modification Maturities W eb ch Api xe January February Mar ri 2.817 $10,780 $1,307 June Jul ‘= Addit
Slide 14: Payment Modifications Continued
Payment Modifications Conti “Old Second Downgradeto First Modification Additional Substandard PAlG-oM. (No rating change) Modification (No + Credit management has assessed all 5% 4% 4% rating change) loans coming off payment modification » 5% for appropriate risk rating classification. * To date 34
Slide 15: Substandard Loan Migration
Substandard Loan Migration Old Second Credit Management of Substandard Loans + Total substandard (accruing and nonaccrual) loans, the most substantial component of the Bank’s classified asset balance declined $3.9MM or 8.33% year over year. This was primarily the result of $15.2MM in balances fully
Slide 16: SBA Payment Protection Program Loans
SBA Payment Protection Program Loans Balance Outstanding (00's) $74,088 Total Commitment (000's) $74,066 Average Loan Commitment $173,052 Number of Loans over $2 million 6 Number of Loans under $150,000 337 Industry WholesaleAgriculture 5% 1% Transportation 4% : a // M RealEstate 1% Organization s.
Slide 17: Allowance for Credit Losses (under CECL)
Allowance for Credit Losses (under CECL) ‘lola Second 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 chara
Slide 18: Key Performance Ratios
Key Performance Ratios Old Second Credit Quality - Overview + Loan quality has remained strong overthe last several years entering into the current economic environment as a result of conservative underwriting and experiencedlendingteams. + Relationship managers continue to work with Borrowers reque
Slide 19: Allowance for Credit Losses — Coverage Ratios
Allowance for Credit Losses — Coverage Ratios Old Second , ACLAdequacy ACL/ Total Loans \" + Despite minimal lossesin he recentyears from loan charge-offs (net of }0,000 _— recoveries), the adoption of CECL has allowed managementto increase the Allowance for Credit Losses (ACL) considerably in antic