Old Second Bancorp, Inc. · NASDAQ:OSBC
Old Second Bancorp — Shareholder Meeting (May 2023)
25 slides from Old Second Bancorp's shareholder meeting presentation, May 23, 2023
Slide 1: 2023 Annual Meeting
2023 Annual Meeting May 23, 2023 James Eccher Chairman, President & CEO Bradley Adams Chief Financial Officer
Slide 2: Call to Order
Call to Order YX
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 Financial Officer badams@oldsecond.com 630-906-5484 Gary Collins Vice Chairman & Corporate Secretary gcollins@oldsecond.com 312-912-6021 NASDAQ: OSB
Slide 4: Board of Directors
PAGE 4 Board of Directors Edward Bonifas Gary Collins James Eccher Barry Finn William Kane Dennis Klaeser Keith Kotche John Ladowicz Billy Lyons Hugh McLean William Skoglund James Tapscott 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 • William Kane • John Ladowicz • Billy J. Lyons, Jr. • Patti Temple Rocks • John Williams, Jr.
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
2023 Annual Meeting Financials Review May 23, 2023
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) • adverse effects on our information technology systems resulting from system failures, human error or cyberattacks; • adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our info
Slide 13: Creating the Leading Community Bank in Chicago
PAGE 13 Creating the Leading Community Bank in Chicago Chicago MSA Footprint as of 03/31/2023 Enhanced Scale In Attractive Markets $5.9B $4.0B $4.9B Assets Gross Loans Deposits Improved Profitability & Operating Efficiency 1.62% 25.54% 0.15% Return on Return on Cost of Tangible Common Assets Deposit
Slide 14: Historical Financial Highlights
PAGE 14 Historical Financial Highlights Deposit Composition Q1-2023 2019 2020 2021 2022 Q1 2023 CD’s Total Assets ($000) 2,635,545 3,040,837 6,212,189 5,888,317 5,920,283 9% Total Net Loans ($000) 1,911,023 2,000,996 3,376,523 3,820,129 3,949,962 NOW 12% Non Total Deposits ($000) 2,126,749 2,537,073
Slide 15: Top Tier Community Bank Franchise
PAGE 15 Top Tier Community Bank Franchise Premier Deposit Franchise Cost of Deposits Deposit Beta(1) Uninsured Deposits(2) Retail Deposits(3) 0.15% 2.1% 18.0% 63.4% 97th Percentile 98th Percentile 74th Percentile 86th Percentile Well-Positioned Balance Sheet Strong Financial Performance Loans / Depo
Slide 16: Management Track Record of Creating Shareholder Value
PAGE 16 Management Track Record of Creating Shareholder Value Total Share Price Performance Source: SNL Financial, FactSet. Financial data as of quarter ended March 31, 2023. Market data as of May 1, 2023. Note: Community Bank group includes publicly-traded banks with $5-10bn in assets.
Slide 17: Thank you for your attendance!
Thank you for your attendance!
Slide 18: Appendix 1: Supplemental Financial Data
Appendix 1: Supplemental Financial Data
Slide 19: Equity and Risk Based Capital Measures
PAGE 19 Equity and Risk Based Capital Measures Years Ended 2019 2020 2021 2022 Q1 2023 ($ in thousands, except per share data) Tier 1 capital Total equity before non-CECL adjustments and deductions (1) $ 277,864 $ 312,741 $ 505,825 $ 463,994 $ 498,772 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 2019 2020 2021 2022 Q1 2023 ($ in thousands, except per share data) Tier 1 common equity Tangible common equity (1) $ 256,589 $ 291,960 $ 403,188 $ 364,083 $ 399,510 Tier 1 adjustments: Cumulative other comprehensive loss (4,562) (14,762) (8
Slide 21: Appendix 2: Non-GAAP Reconciliations
Appendix 2: Non-GAAP Reconciliations
Slide 22: Appendix 2: Non-GAAP Financial Measures
PAGE 22 Appendix 2: Non-GAAP Financial Measures 2019 2020 2021 2022 Q1 2023 Net Income-GAAP $ 39,455 $ 27,825 $ 20,044 $ 67,405 $ 23,607 Reconcilation to Adjusted Net Income: Income before income taxes (GAAP) 51,857 $ 37,408 $ 27,867 $ 91,549 $ 32,013 Pre-tax income adjustments: Provision for credit
Slide 23: Appendix 2: Non-GAAP Financial Measures
PAGE 23 Appendix 2: Non-GAAP Financial Measures Net Interest Margin Tax Equivalent Non-GAAP Reconciliation 2019 2020 2021 2022 Q1 2023 Interest income (GAAP) $ 115,594 $ 104,215 $ 105,165 $ 216,473 $ 70,159 Taxable-equivalent adjustment: Non-GAAP Financial Measures Loans 14 12 15 23 6 Securities 1,9
Slide 24: Appendix 2: Non-GAAP Financial Measures
PAGE 24 Appendix 2: Non-GAAP Financial Measures Efficiency Ratio Non-GAAP Reconciliation GAAP Non-GAAP 2019 2020 2021 2022 Q1 2023 2019 2020 2021 2022 Q1 2023 Noninterest expense $ 79,102 $ 81,417 $ 103,782 $ 151,173 $ 35,922 $ 79,102 $ 81,417 $ 103,782 $ 151,173 $ 35,922 Less amortization of core d
Slide 25: Appendix 2: Non-GAAP Financial Measures
PAGE 25 Appendix 2: Non-GAAP Financial Measures Tangible Common Equity Non-GAAP Reconciliations Years Ended 2019 2020 2021 2022 Q1 2023 Total equity $ 277,864 $ 307,087 $ 502,027 $ 461,141 $ 496,870 Less: Preferred equity - - - - - Goodwill and intangible assets 21,275 20,781 102,636 100,156 99,532