Old Second Bancorp, Inc. · NASDAQ:OSBC
Old Second Bancorp — Shareholder Meeting (April 2005)
32 slides from Old Second Bancorp's shareholder meeting presentation, Apr 19, 2005
Slide 1: Welcome to Old Second Bancorp's 2005 Annual Meeting
Welcome to Old Second Bancorn's 2005 Annual Meeting Right sized bankin:
Slide 2: Forward-looking Statements and Non-GAAP Disclosures
Forward-looking Statements and Non-GAAP Disclosures In addition to historical information, this presentation contains forward-looking statements, which are subject to certain risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of Old
Slide 3: Who We Are
Who We Are @ ® $2.1 billion financial holding company headquartered in Aurora, Illinois = 3 independently chartered community banks = Trust & Investment Group with over $900 million under management = Mortgage company ® 27 locations = 58 ATM locations —— Right sized banking.
Slide 4: Right sized banki
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Slide 5: Office and branch locations
A Mortgage office @ Bank branch © Branch under construction Possible Future locations: Batavia, Geneva, Shorewood Right sized banking.
Slide 6: Illinois' Largest Cities
Illinois’ Largest Cities © 157,267 Aurora Rockford 151,068 Naperville 135,389 Joliet 112,936 Peoria 112,670 Springfield 111,834 Elgin 0 — 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 (Excluding Chicago) Right sized banking
Slide 7: Illinois' Fastest Growing Cities
Illinois’ Fastest Growing Cities: @ Net Gain 1990-2000 Aurora Naperville Joliet Palatine Waukegan Cicero Elgin 0 — 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 ized banking.
Slide 8: Illinois' Fastest Growing Counties by %
Illinois’ Fastest Growing @ Counties by % 7/1/01-7/1-02 (out of 102 counties) 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% <= Kendall will Kane Boone McHenry —— Right sized banking.
Slide 9: NE Illinois Planning Commission Population Forecasts
NE Illinois Planning Commission Population Forecasts 2000 2030 Difference % Change DuPage Cty. 904,161 1,002,325 98,164 10.86% Kane Cty. 404,119 692,346 288,227 71.32% Aurora (excl. Kend.) 142,150 190,167 48,017 33.78% Batavia 23,866 31,402 7,536 31.58% Elgin 94,487 162,416 67,929 71.89% Geneva 19,5
Slide 10: What Makes Us Different
What Makes 02 e@ Different » One holding company, 3 charters >» Community focused operating philosophy based on local decisions and outstanding personalized service > Strong 134 year heritage > Positioned in rapidly growing Illinois markets » Market leader in Kane and Kendall counties —— Right sized
Slide 11: De Novo Branch Strategy
De Novo Branch @ Strategy = Organic Growth * Commercial and retail growth driven by sales initiatives = 9 new branches over past 5 years " In growth markets contiguous to our core offices = De Novo branching with local bankers * Find the right people first, then build branch = Strong performance exp
Slide 12: Key Strategies
Key Strategies @ > Continue growth and enhance market footprint through accelerated business development and branch expansion > Hire experienced local bankers with strong community ties >» Renew focus on core banking with competitive products and services > Increase non-interest income > Continue ce
Slide 13: Right sized bankin:
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Slide 14: Total Assets
Total Assets @ Millions $2,500 awit $2,000. e pverad $1,500 46 40/0 $1,000 $500 $0 1999 2000 2001 2002 2003 2004 Right sized bankin
Slide 15: Total Loans
Total Loans @ Millions $1,600 $1,400 $1,200 $1,000 $300 $600 $400 $200 $0 1999 2000 2001 2002 2003 2004 Right sized banki
Slide 16: Net Charge-Offs to Average Loans
NetCharge-Offs © to Average Loans 0.30% 0.2500 0.20% 0.15% = 0.10% 0.059% ‘a a qj 0.00% -0.05% 1999 2000 2001 2002 2003 2004 GOSBC WPeer banks Peer is the 30 public bank holding companies in the Midwest nearest in size to OSB Right sized bankii
Slide 17: Total Deposits
Millions Total Deposits e an $1,600 Sa $1,400 $1,200 6% $1,000 $800 $600 $400 $200 $0 1999 2000 2001 2002 2003 2004 Right sized banki
Slide 18: Net Interest Margin
Net Interest Margin © 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1999 2000 2001 2002 2003 2004 HOSBC MPeer Peer is the 30 public bank holding companies in the Midwest nearest in size to OSBC. Right sized banki
Slide 19: Efficiency Ratio
70% 60% 50% 40% 30% 20% 10% 0% Peer is the 30 public bank holding companies in the Midwest nearest in size to OSB EificiencyRatio © 1999 2000 2001 2002 W Consolidated M Peer 2003, 2004 Right sized bankii
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations (in Thousands) 1999 2000 200 2002 2003 2004 NetInterest Marain Interest incorne (GAAP) $ 65909 $ 7748 $84,791 § 85401 $ 87,844 $ 97,098 ‘Taxable-equivalent adjustment Loans aes az2 197 226 193 206 Investments 263 usie sage 1.593 1339 1758 Interest income - FTE 28,017 7e,721
Slide 21: Return on Equity
Return on Equity é 21% aor. 19% 720- 17% 42.06 15% Front B% 1 | eo 11% 9% % 5% al 1999 2000 2001 2002 2003 2004 Right sized banki
Slide 22: Earnings Per Share
Earnings Per Share ee (Wiluted Basis) $2.00 $1.80 out $1.60 eG 7 $1.40 goin pve™ 2S $1.20 qo: $1.00. $0.80. $0.60. $0.40 $0.20 $0.00 1999 2000 2001 2002 2003 2004
Slide 23: Peer Comparison
Peer Comparison e Midwest Illinois National Return on equity 11.96% 11.19% 13.04% Return on assets 1.01% 93% 1.10% Net interest margin 3.71% 3.40% 3.99% Efficiency ratio 60.12% 64.44% 60.03% NPA % of assets 0.67% 0.67% 0.48% Charge-offs/Avg. Loans 0.24% 0.23% 0.21% Price to LTM earnings 18.5x. 17.2x
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Slide 25: Old Second Kane County Market Leader
Old Second Kane County @ Market Leader 1999 2000 2001 2002 2003 2004 %Market %Market %Market %Market %Market % Market Old Second 13.08% 15.07% 16.19% 17.21% 17.34% 17.97% Harris Bank 10.41% 10.80% 10.82% 10.49% 10.59% 11.61% Fifth Third 20.86% 17.72% 15.98% 13.41% 11.30% 9.70% Bank One 11.60% 10.62%
Slide 26: Old Second Kendall County Market Leader
Old Second Kendall County Market Leader 1999 % Market Old Second 21.38% Oswego Comm 15.05% Castle Bank 13.10% Harris Bank 5.00% Union Bank 8.37% Fifth Third 14.87% 2000 % Market 24.40% 10.11% 12.54% 5.98% 8.14% 11.17% 2001 % Market 25.67% 15.66% 12.42% 5.47% 7.24% 10.03% 2002 % Market 28.53% 16.38%
Slide 27: Deposit Market Share
Deposit MarketShare © AURORA (KANE) YORKVILLE #of Deposits Market #of Deposits Market offices ($000) Share offices (000s) Share Old Second 4 682,298 45.26% Fifth Third 4 215,678 14.31% Castle Bank 1 117,149 34.94% Harris Aurora 3 139,222 9.23% Union Bank 1 3,553 1.06% Benchmark 1 112,850 7.49% TCF B
Slide 28: Stock Comparison: Five Year Performance
Stock Comparison Five Year Performance 250% 200% 150% 100% 50% 0% -50% -100% ReREEETEEULUEINURTLE az 2 SFE Es FLEEEETTES —- OSBC ~-NASDAQ Banks —- S&P 500 ht si e 233.4% 90.3% 17.5%
Slide 29: Stock Comparison: Three Year Performance
Stock Comparison Three Year Performance e 114.8% 49.7% 44%
Slide 30: Stock Comparison: One Year Performance
Stock Comparison One Year Performance e 23.1% 10.4% 9.2%
Slide 31: Future Focus
Future Focus @ ¥ Credit quality ¥ Growth ¥NIM ¥ Efficiencies ¥ Exceptional Customer Service — Right sized banking.
Slide 32: Searchable text section of graphics
Searchable text section of graphics shown above [ LOG O] Welcome to Old Second Bancorp’s 2005 Annual Meeting Right sized banking. For ward-looking Statements and Non-GAAP Disclosures In addition to historical information, this presentation contains forward-looking statements, which are subject to ce
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