Slide 1: Old Second Bancorp
Founded in 1871 NASDAQ: OSBC Old Second Bancorp May 8, 2013 Bill Skoglund Chairman 630-906-5483 James Eccher COO 630-966-2425 Doug Cheatham CFO 630-906-5484 Joe Marchese CCO 630-801-2219 1
Slide 2: Corporate Profile
Corporate Profile Established in 1871 and Headquartered in Aurora, IL Deposit Market Share Leader in Kane and Kendall Counties (Illinois) $2.0 Billion in Assets $1.11 Billion in Loans $1.72 Billion in Deposits 28 Locations 82 ATM Locations 2
Slide 3: Branch Footprint
Branch Footprint 3
Slide 4: Deposit Market Share
Deposit Market Share KANE COUNTY 2012 Rank Institution 2012 Total Deposits in Markets ($000) 2012 Total Market Share (%) 1 Old Second 1,260,438 14.64 2 JP Morgan Chase 1,165,534 13.54 3 Harris (BMO Financial) 909,325 10.56 4 Fifth Third 646,014 7.50 5 Wintrust Financial Corp. 542,731 6.30 8 Union Na
Slide 5: Balance Sheet Trends
5 With the end of deleveraging, assets stabilized over the past two years. Loans continued to decline but the decline slowed. Deposits were managed to match funding needs. Securities increased throughout the stabilization period. Balance Sheet Trends
Slide 6: Classified and Nonperforming Asset Trends
6 Classified and Nonperforming Asset Trends
Slide 7: Performance Summary
7 Performance Summary (Dollars in Thousands, Except Per Share Data) 3/31/13 12/31/12 12/31/11 12/31/10 Assets $1,954,044 $2,045,799 $1,941,418 $2,123,921 Loans $1,113,302 $1,150,050 $1,368,985 $1,690,129 Deposits $1,718,256 $1,717,219 $1,740,781 $1,908,528 Provision for loan losses ($2,500) $6,284 $
Slide 8: Net Interest Margin
8 Net Interest Margin 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Net Interest Margin Yield on Assets Cost of Funds/AEA
Slide 9: Core Earnings
9 Core Earnings Other expenses that were elevated during the credit cycle: Legal expenses FDIC insurance General insurance Collection expenses Income Statement Data 2011 2012 Change Net interest income 63,950 $ 59,346 $ (4,604) $ Provision for loan losses 8,887 6,284 (2,603) Noninterest income 36,00
Slide 10: Corporate Capital Ratios
orporate Capital Rati “4030 1031 2011 3031 411 1012 2012 3032 4012 1013, 11 4ai1 1012 2012 3032 4012 1013
Slide 11: Bank Capital Ratios
Bank Capital Ratios - Ratio 44010 1011 2011 3031 4011 1012 2012 3032 4012 1013, 4qi0 1021 2011 3011 4011 1012 2032 3012 Actual OCC Minimum Actual OCC Minimum Tangible Common Equity 4ax0 1011 2011 3041 4a31 1012
Slide 12: Capital Strategies
13 Capital Strategies 1. Continue to heal ourselves 2. Remove consent 3. Recovery DTA 4. TARP auction 5. Right size capital/strategic options
Slide 13: Analysis of market cap to asset size of selected banks
14 Analysis of market cap to asset size of selected banks (as of 5/6/2013) Bank Market cap (in millions) X’s OSBC Asset size (in billions) X’s OSBC OSBC $64 n/a $2.0 n/a BUSE $377 6 $3.6 1.8 FMBI $963 15 $8.0 4.0 MBFI $1,387 22 $9.4 4.7 PVTB $1,429 22 $13.4 6.7 TAYC $426 7 $5.8 2.9