Slide 1: William B. Skoglund J. Douglas Cheatham James L. Eccher Chairman, President & CEO Chief
William B. Skoglund J. Douglas Cheatham James L. Eccher Chairman, President & CEO Chief Financial Officer President & CEO Old Second Bancorp, Inc. Old Second Bancorp, Inc. Old Second National Bank 630-906-5483 630-906-5484 630-966-2433
Slide 2: Forward-looking Statements and Non-GAAP Disclosures
Forward-looking Statements 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 Second’s operations. Forw
Slide 3: Who We Are
Who We Are $2.4 billion financial holding company headquartered in Aurora, Illinois 3 independently chartered community banks Wealth Management Group with over $1 billion under management Experienced Local Management Team 29 locations (5 locations planned by end of 2007) 66 ATM locations
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Slide 5: Mortgage offices and bank branches map
A Mortgage office @ Bank branch @ Branch under construction
Slide 6: Illinois' Largest Cities (Excluding Chicago)
Illinois’ Largest Cities (Excluding Chicago) 97,117 111,454 112,936 141,600 145,000 151,068 168,181 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Elgin Springfield Peoria Naperville Joliet Rockford Aurora
Slide 7: Illinois' Fastest Growing Cities: Net Gain 1990-2000
Illinois’ Fastest Growing Cities: Net Gain 1990-2000 17,473 18,180 18,420 23,925 29,004 42,552 43,318 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Elgin Cicero Waukegan Palatine Joliet Naperville Aurora
Slide 8: Illinois' Fastest Growing Counties by %
Illinois’ Fastest Growing Counties by % 7/1/04 - 7/1/05 (out of 102 counties) Source: U.S. Census Bureau 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% Kendall Grundy Boone Will McHenry DeKalb Kane
Slide 9: NE Illinois Planning Commission Population Forecasts
NE Illinois Planning Commission Population Forecasts 31.58% 7,536 31,402 23,866 Batavia 33.78% 48,017 190,167 142,150 Aurora (excl. Kend.) 71.22% 11,467 27,567 16,100 South Elgin 1505.07% 58,833 62,742 3,909 Sugar Grove 31.46% 8,775 36,671 27,896 St. Charles 95.50% 10,109 20,694 10,585 North Aurora
Slide 10: Old Second Kane County Market Leader
Old Second Kane County 4.37% 7.80% 8.64% 9.70% 11.61% 17.97% % Mkt 2004 4.14% 8.17% 8.55% 9.49% 10.54% 18.44% % Mkt 2005 4.81% 5.00% 5.52% 5.35% 4.50% 1 st Am 7.35% 7.20% 6.73% 6.88% 6.02% EFS 9.48% 8.82% 8.92% 10.62% 11.60% Chase 11.30% 13.41% 15.98% 17.72% 20.86% 5/3 10.59% 10.49% 10.82% 10.80% 10
Slide 11: Old Second Kendall County Market Leader
Old Second Kendall County Market Leader 6.06% 7.52% 9.89% 13.77% 15.49% 32.39% % Mkt 2004 6.15% 7.68% 8.79% 14.36% 14.27% 33.46% % Mkt 2005 6.69% 8.09% 10.03% 11.17% 14.87% 5/3 7.54% 7.29% 7.24% 8.14% 8.37% Union 11.57% 12.15% 5.47% 5.98% 5.00% Harris 13.38% 12.79% 12.42% 12.54% 13.10% Castle 15.93%
Slide 12: Deposit Market Share
Deposit Market Share YORKVILLE AURORA (KANE) 11.79% 19,048 1 Fifth Third 14.07% 22,740 1 American B&T 74.14% 119,815 1 OSB-Kane Cty. 4.23% 64,671 2 Banco Popular ELBURN 4.81% 73,533 2 National City 6.04% 92,276 3 West Suburban 0.59% 2,238 1 TCF Bank 7.97% 121,812 1 Benchmark 2.72% 10,286 1 Union Ban
Slide 13: Deposit Market Share (Lisle/Naper)
Deposit Market Share (Lisle/Naper) 10.08% 199,177 3 4. Elgin State 11.21% 199,177 3 4. Elgin State Market Share Deposits ($000) # of offices Market Share Deposits ($000) # of offices 22.73% 449,189 4 1. EFS 25.28% 449,189 4 1. EFS NAPERVILLE (DUPAGE/WILL) JOLIET (WILL) 0.61% 12,020 1 15. Old Second
Slide 14: Total Assets
Total Assets as of period-end 14.2% Average Growth $0 $500 $1,000 $1,500 $2,000 $2,500 Millions 2001 2002 2003 2004 2005 June-06
Slide 15: Total Loans
Total Loans as of period-end 16% Average Growth $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Millions 2001 2002 2003 2004 2005 Jun-06
Slide 16: Loan Mix
Loan Mix Dec 2005 June 2006 as of period-end 2% 32% 35% 10% 21% Commercial & Industrial Commercial Real Estate Construction & Development Residential Consumer 20% 2% 10% 33% 35%
Slide 17: Net Charge-Offs
Net Charge-Offs The peer group consists of the 30 Midwest banks closest in asset size to OSBC. to Average Loans -0.05% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 2002 2003 2004 2005 Jun-06 OSBC Peer
Slide 18: Net Charge-Offs To Reserves
Net Charge-Offs To Reserves The peer group consists of the 30 Midwest banks closest in asset size to OSBC. -5% 0% 5% 10% 15% 20% 25% 30% 2002 2003 2004 2005 Jun-06 OSBC Peer
Slide 19: Total Deposits
Total Deposits 14.5% Average Growth as of period-end $0 $500 $1,000 $1,500 $2,000 $2,500 Millions 2001 2002 2003 2004 2005 Jun-06
Slide 20: Deposit Mix
Deposit Mix Dec 2005 June 2006 as of period-end 14% 22% 17% 28% 13% 6% Noninterest- bearing Savings NOW Accounts Money Market CD's less than $100,000 CD's $100,000 or more 13% 29% 18% 14% 20% 6%
Slide 21: Net Interest Margin
Net Interest Margin Reconciliations of non-GAAP disclosures are available in public filings linked at oldsecond.com. The peer group consists of the 30 Midwest banks closest in asset size to OSBC. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 2002 2003 2004 2005 Jun-06 OSBC Peer
Slide 22: Efficiency Ratio
Efficiency Ratio Reconciliations of non-GAAP disclosures are available in public filings linked at o2bancorp.com. The peer group consists of the 30 Midwest banks closest in asset size to OSBC. 0% 10% 20% 30% 40% 50% 60% 70% 2002 2003 2004 2005 Jun-06 Consolidated Peer
Slide 23: Return on Equity
Return on Equity 0% 5% 10% 15% 20% 25% 2002 2003 2004 2005 Jun-06
Slide 24: Earnings Per Share
Earnings Per Share 18.7% Average Growth Diluted Basis $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2000 2001 2002 2003 2004 2005
Slide 25: Peer Comparison
Peer Comparison Market Area: Six-county region in which OSBC has branches. Illinois: Publicly-traded bank holding companies in Illinois. National $1-$3b: Banks with assets between $1 billion and $3 billion. 16.9x 18.1x NA 15.3x Price to LTM earnings 0.21% 0.16% 0.10% 0.00% Charge-offs/Avg. Loans 0.4
Slide 26: Stock Comparison
Stock Comparison 153.2% 51.8% 3.9% -50% 0% 50% 100% 150% 200% Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 OSBC Nasdaq Banks S&P 500
Slide 27: Outlook: Key Strategies
Outlook Key Strategies Good demographics Hiring key people/C&I unit De Novo branching Cost controls Share buybacks Wealth Management Group Loan Loss Reserve Net Interest Margin Retail Core Deposits