Old Second Bancorp, Inc. · NASDAQ:OSBC
Old Second Bancorp — Shareholder Meeting (May 2024)
25 slides from Old Second Bancorp's shareholder meeting presentation, May 21, 2024
Slide 1: 2024 Annual Meeting
2024 Annual Meeting May 21, 2024 James Eccher Chairman, President & CEO Bradley Adams EVP, Chief Operating Officer & Chief Financial Officer
Slide 2: Call to Order
Call to Order X
Slide 3: Presenters
PAGE 3 Presenters James Eccher Chairman, President & CEO, OSBC President & CEO, OSNB jeccher@oldsecond.com 630-966-2433 Brad Adams Executive VP, Chief Operating Officer & Chief Financial Officer badams@oldsecond.com 630-906-5484 NASDAQ: OSBC May 21, 2024
Slide 4: Board of Directors
PAGE 4 Board of Directors Edward Bonifas Gary Collins James Eccher Barry Finn Dennis Klaeser Keith Kotche John Ladowicz Billy Lyons, Jr. Hugh McLean Patti Temple Rocks John Williams, Jr. Jill York
Slide 5: Appointed Proxies for Management
PAGE 5 Appointed Proxies for Management Bradley Adams Gary Collins
Slide 6: Quorum Represented / Notice of Meeting
PAGE 6 Quorum Represented / Notice of Meeting Inspector of Election Shirley Cantrell, Stockholder Relations Manager
Slide 7: Proposal 1: Election of Directors
Proposal 1 Proposal 1 Election of Directors • James Eccher • Barry Finn • Dennis Klaeser • Hugh McLean
Slide 8: Proposal 2: Advisory Vote on Executive Compensation
Proposal 2 Non-Binding Advisory Vote, To Approve Our Named Executive Officers’ Compensation
Slide 9: Proposal 3: Ratification of Independent Accountants
Proposal 3 Ratification of Our Independent Registered Public Accountants
Slide 10: Financials Review
2024 Annual Meeting Financials Review May 21, 2024
Slide 11: Forward-Looking Statements
PAGE 11 Forward-Looking Statements CAUTIONARY NOTE REGARDING FORWARD‐LOOKING STATEMENTS This presentation and other publicly available documents of the Company contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including, but not limited to, manage
Slide 12: Forward-Looking Statements (continued)
PAGE 12 Forward-Looking Statements (continued) • the impact of any claims or legal actions, including any effect on our reputation; • losses incurred in connection with repurchases and indemnification payments related to mortgages; • the soundness of other financial institutions and other counter-pa
Slide 13: Creating the Leading Community Bank in Chicago
PAGE 13 Creating the Leading Community Bank in Chicago Chicago MSA Footprint as of 03/31/2024 Enhanced Scale In Attractive Markets $5.6B $4.0B $4.6B Assets Gross Loans Deposits Improved Profitability & Operating Efficiency 1.51% 17.80% 0.71% Return on Return on Average Tangible Cost of Average Commo
Slide 14: Historical Financial Highlights
PAGE 14 Historical Financial Highlights Deposit Composition Q1-2024 YTD March 2020 2021 2022 2023 2024 CD’s Total Assets ($000) 3,040,837 6,212,189 5,888,317 5,722,799 5,616,072 13% Total Net Loans ($000) 2,000,996 3,376,523 3,820,129 3,998,689 3,925,298 Non Total Deposits ($000) 2,537,073 5,466,232
Slide 15: Top Tier Community Bank Franchise
PAGE 15 Top Tier Community Bank Franchise Premier Deposit Franchise YTD Cost of Deposits Deposit Beta(1) Uninsured Deposits(2) Retail Deposits(3) 0.71% 9.1% 24.9% 63.1% 97th Percentile 97th Percentile 79th Percentile 80th Percentile Well-Positioned Balance Sheet Strong Financial Performance Loans /
Slide 16: Management Track Record of Creating Shareholder Value
PAGE 16 Management Track Record of Creating Shareholder Value Total Share Price Performance 250.0% Performance Summary (CAGR) Community 225.0 OSBC Banks Share Price 10.8% 1.9% 200.0 TBVPS 8.9 5.8 175.0 161.3% 150.0 125.0 100.0 75.0 50.0 25.0 16.5% 0.0 (25.0) Source: SNL Financial, FactSet. Financial
Slide 17: Thank you for your attendance!
Thank you for your attendance!
Slide 18: Appendix 1: Supplemental Financial Data
Appendix 1: Supplemental Financial Data As of March 31, 2024
Slide 19: Equity and Risk Based Capital Measures
PAGE 19 Equity and Risk Based Capital Measures Years Ended 2020 2021 2022 2023 Q1 2024 ($ in thousands, except per share data) Tier 1 capital Total equity before non-CECL adjustments and deductions (1) $ 312,741 $ 505,825 $ 463,994 $ 579,182 $ 597,110 Tier 1 adjustments: Trust preferred securities a
Slide 20: Equity and Risk Based Capital Measures
PAGE 20 Equity and Risk Based Capital Measures Years Ended 2020 2021 2022 2023 Q1 2024 ($ in thousands, except per share data) Tier 1 common equity Tangible common equity (1) $ 291,960 $ 403,188 $ 364,083 $ 484,940 $ 503,370 Tier 1 adjustments: Cumulative other comprehensive loss (14,762) (8,768) 93
Slide 21: Appendix 2: Non-GAAP Reconciliations
Appendix 2: Non-GAAP Reconciliations As of March 31, 2024
Slide 22: Appendix 2: Non-GAAP Financial Measures
PAGE 22 Appendix 2: Non-GAAP Financial Measures YTD March 2020 2021 2022 2023 2024 Net Income-GAAP $ 27,825 $ 20,044 $ 67,405 $ 91,729 $ 21,312 Reconcilation to Adjusted Net Income: Income before income taxes (GAAP) $ 37,408 $ 27,867 $ 91,549 $ 124,408 $ 28,543 Pre-tax income adjustments: Provision
Slide 23: Appendix 2: Non-GAAP Financial Measures
PAGE 23 Appendix 2: Non-GAAP Financial Measures Net Interest Margin Tax Equivalent Non-GAAP Reconciliation YTD March 2020 2021 2022 2023 2024 Interest income (GAAP) $ 104,215 $ 105,165 $ 216,473 $ 291,970 $ 73,330 Taxable-equivalent adjustment: Non-GAAP Financial Measures Loans 12 15 23 39 11 Securi
Slide 24: Appendix 2: Non-GAAP Financial Measures
PAGE 24 Appendix 2: Non-GAAP Financial Measures Efficiency Ratio Non-GAAP Reconciliation GAAP Non-GAAP YTD March YTD March 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Noninterest expense $ 81,417 $ 103,782 $ 151,173 $ 145,201 $ 38,241 $ 81,417 $ 103,782 $ 151,173 $ 145,201 $ 38,241 580 Less am
Slide 25: Appendix 2: Non-GAAP Financial Measures
PAGE 25 Appendix 2: Non-GAAP Financial Measures Tangible Common Equity Non-GAAP Reconciliations Years Ended YTD March 2020 2021 2022 2023 2024 Total equity $ 307,087 $ 502,027 $ 461,141 $ 577,281 $ 596,159 Less: Goodwill and intangible assets 20,781 102,636 100,156 97,695 97,115 Tangible common equi