Old Second Bancorp, Inc. · NASDAQ:OSBC
Old Second Bancorp — Q2 2021 Earnings Presentation
14 slides from Old Second Bancorp's earnings presentation, Jul 21, 2021
Slide 1: Loan Portfolio Disclosures As of June 30, 2021
Old Second Old Second Bancorp, Inc. Loan Portfolio Disclosures As of June 30, 2021
Slide 2: Loan Portfolio Composition
Loan Portfolio Composition Old Second Balance Outstanding (000's) $1,903,366 Total Commitment (000's) $2,382,300 Average Loan Commitment $323,638 Number of Active Payment Deferrals Modifications 18 Payment Modification Rate (% of Total Commitment)'”” 0.39% Res Owner Loan Type Occupied 5% Res Investo
Slide 3: Commercial and Industrial
Commercial and Industrial Old Second Geman nh cn Balance Outstanding (00's) $344,084 + Lending focused on ull relationship, small and midde market businesses ‘+ Well diversified by industry with limited exposure to Accommodation and Food Total Commitment (000's) $629,697 Services and Entertainmentin
Slide 4: Leasing Portfolio Characteristics
Old Second Leasing Portfolio Characteristics Leasing Portfolio Characteristics Balance Outstanding (00's) $154,512 + DedicatedLeasing Service lending team + Well diversified by industry and by geography with minimal exposure to high risk Total Commitment (000's) $155,240 industries. z + Leases over
Slide 5: CRE Owner-Occupied
CRE Owner-Occupied Balance Outstanding (00's) $318,259 Lending focused on full relationship, small and middle market businesses + Well diversified by industry with limited exposure to the Accommodation and Total Commitment (000's) $328,945 Food Service and Entertainment industries Average Loan Commi
Slide 6: Investor CRE
Investor CRE Balance Outstanding (00's) $569,745 + Lending focused on full relationship and strong sponsorship with full recourse : + Well diversified by property type with limited exposure to high-riskreal estate Total Commitment (000's) $592,554 sectors (Hotels, Restaurants, Recreational, “Big Box
Slide 7: Multifamily
Multifamily Old Second Balance Outstanding (000's) $161,628 + Lending focused on full relationship and strong sponsorship = + No exposure to downtown high-rise Multifamily Total Commitment (000's) $162,998 + Repaymentanalysis based on strong net operating income, supported by ee een CONT 306,921 sec
Slide 8: Construction and Land Development
tion and Land Development Old Second C&D Portfolio Characteristics C&D Portfolio Characteristics Lending focused on strong sponsorship with full recourse Well diversified by property type with limited exposure to high-riskreal estate (Le. Hotel, Recreational, “Big Box" Retail, large scale land devel
Slide 9: 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 2020 + Approximately one third of all payment relief modifications have been interest only, while the remaining are full payment de
Slide 10: SBA Payment Protection Program Loans
SBA Payment Protection Program Loans Old Second Balance Outstanding (00's) $70,224 + Largestloan funded was $4.89 million, with the balance ofloans over $2 million r totaling $7.92 million or 11.3% of total loans funded Total Commitment (000's) $70,224 + Balance of loans under $150,000 totaling $15.
Slide 11: 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 12: Key Performance Ratios
Key Performance Ratios Old Second Classified Assets/ Capital (1) Credit Quality - Overview . - $380,000 16.00% 13.49% $370,000 12.64% 14.00% + Loan quality has remained strong over the last several years entering into the ™ current economic environments a result of conservative underwriting and 44.1
Slide 13: Allowance for Credit Losses — Coverage Ratios
Allowance for Credit Losses — Coverage Ratios Old Second ACLAdequacy ACL/ Total Loans (excluding PPP) ‘ $2,000,000 + Despite minimal lossesin the recentyears from loan charge-offs (net of * 173% 4.67% so recoveries), the adoption of CECL has allowed managementto increase the syn ian 1.56% Allowance
Slide 14: 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 YearEnded For the Quarter Ended December 31, 2020 June 30, 2021 Nonperforming Loans s 23,045 $ 23,121 Total Loans (G AAP) s 2,034,851 $ 1,