Old Second Bancorp, Inc. · NASDAQ:OSBC
Old Second Bancorp — Shareholder Meeting (April 2007)
42 slides from Old Second Bancorp's shareholder meeting presentation, Apr 17, 2007
Slide 1: Welcome to the Old Second Bancorp 2007 Annual Meeting
Welcome to the Old Second Bancorp, Inc. 2007 Annual Meeting 135Th Anniversary
Slide 2: Call to order
Call to order 135th Anniversary é
Slide 3: Management speakers and contacts
William B. Skoglund J. Douglas Cheatham James L. Eccher Chairman, President & CEO Chief Financial Officer President and CEO Old Second Bancorp, Inc. Old Second Bancorp, Inc. Old Second National Bank 630-906-5483 630-906-5484 630-966-2433
Slide 4: Introduction of Directors/Others
Introduction of Directors/Others
Slide 5: Bancorp Board Members
Bancorp Board Members William B. Skoglund J. Douglas Cheatham James L. Eccher Walter Alexander Edward Bonifas Marvin Fagel Barry Finn William Kane Mary Krasner Kenneth Lindgren Jesse Maberry D. Chet McKee William Meyer Gerald Palmer James Schmitz
Slide 6: Appointed Proxies for Management
Appointed Proxies for Management James Benson Jesse Maberry Townsend L. Way, Jr.
Slide 7: Quorum Represented/Notice of Meeting; Inspectors of Election
Quorum Represented/Notice of Meeting Inspectors of Election Robin Hodgson Gayle Copenhaver D. Chet McKee
Slide 8: Minutes-2006 Annual Meeting
Minutes-2006 Annual Meeting
Slide 9: Election of Directors
Election of Directors Edward Bonifas Mary Krasner William Meyer William B. Skoglund
Slide 10: Ratification/Approval of Grant Thornton, LLP
Ratification/Approval of Grant Thornton, LLP
Slide 11: Management Reports - Doug Cheatham
Management Reports Doug Cheatham
Slide 12: Forward-looking Statements
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 13: Total Assets
Total Assets as of period-end 13% Average Growth $0 $500 $1,000 $1,500 $2,000 $2,500 Millions 2001 2002 2003 2004 2005 2006
Slide 14: Total Loans
Total Loans as of period-end 14.5% Average Growth $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Millions 2001 2002 2003 2004 2005 2006
Slide 15: Loan Mix
Loan Mix Dec 2005 Dec 2006 as of period-end 2% 32% 35% 10% 21% Commercial & Industrial Commercial Real Estate Construction & Development Residential Consumer 21% 1% 10% 33% 35%
Slide 16: Net Charge-Offs to Average Loans
Net Charge-Offs The peer group consists of the Midwest banks of $1 billion to $5 billion. 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 2006 OSBC Peer
Slide 17: Net Charge-Offs to Reserves
Net Charge-Offs To Reserves The peer group consists of the Midwest banks of $1 billion to $5 billion. -5% 0% 5% 10% 15% 20% 25% 30% 2002 2003 2004 2005 2006 OSBC Peer
Slide 18: Total Deposits
Total Deposits 13.6% Average Growth as of period-end $0 $500 $1,000 $1,500 $2,000 $2,500 Millions 2001 2002 2003 2004 2005 2006
Slide 19: Deposit Mix
Deposit Mix Dec 2005 Dec 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 14% 28% 19% 12% 22% 5%
Slide 20: 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 Midwest banks of $1 billion to $5 billion. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 2002 2003 2004 2005 2006 OSBC Peer
Slide 21: Efficiency Ratio
Efficiency Ratio Reconciliations of non-GAAP disclosures are available in public filings linked at oldsecond.com. The peer group consists of the Midwest banks of $1 billion to $5 billion. 0% 10% 20% 30% 40% 50% 60% 70% 2002 2003 2004 2005 2006 OSBC Peer
Slide 22: Return on Equity
Return on Equity The peer group consists of the Midwest banks of $1 billion to $5 billion. 0% 5% 10% 15% 20% 25% 2002 2003 2004 2005 2006 OSBC Peer
Slide 23: Earnings Per Share
Earnings Per Share 9.3% Average Growth Diluted Basis $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2001 2002 2003 2004 2005 2006
Slide 24: Peer Comparison
Peer Comparison Midwest: Banks with assets between $1 billion and $5 billion in Midwest. Illinois: Publicly-traded bank holding companies in Illinois. National $1-$5b: Banks with assets between $1 billion and $5 billion. 18.3x 18.7x 17.2x 15.6x Price to LTM earnings 0.18% 0.22% 0.33% 0.02% Charge-of
Slide 25: Management Reports - Jim Eccher
Management Reports Jim Eccher
Slide 26: Chicago
ZT Chicago
Slide 27: Kane County Deposit Market Share
Old Second Kane County 10.54% 9.49% 9.70% 11.30% 13.41% 15.98% 17.72% 5/3 4.14% 1.70% 8.55% 10.54% 18.44% % Mkt 2005 4.37% 1.67% 8.64% 11.61% 17.97% % Mkt 2004 4.81% 1.59% 9.48% 10.59% 17.34% % Mkt 2003 5.00% 1.68% 8.82% 10.49% 17.21% % Mkt 2002 5.52% 1.55% 8.92% 10.82% 16.19% % Mkt 2001 5.35% 1.52%
Slide 28: Kendall County Deposit Market Share
Old Second Kendall County Deposit Market Share 14.52% 14.36% 13.77% 13.38% 12.79% 12.42% 12.54% Castle 6.15% 7.68% 8.79% 14.27% 33.46% % Mkt 2005 6.06% 7.52% 9.89% 15.49% 32.39% % Mkt 2004 6.69% 7.54% 11.57% 15.93% 30.21% % Mkt 2003 8.09% 7.29% 12.15% 16.38% 28.53% % Mkt 2002 10.03% 7.24% 5.47% 15.6
Slide 29: Deposit Market Share: Yorkville, Aurora, Elburn
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 30: Deposit Market Share (Lisle/Naper)
Deposit Market Share (Lisle/Naper) 9.97% 207,899 3 4. Elgin State 11.65% 207,899 3 4. Elgin State Market Share Deposits ($000) # of offices Market Share Deposits ($000) # of offices 15.88% 331,029 4 1. MidAmerica 18.55% 331,029 4 1. MidAmerica NAPERVILLE (DUPAGE/WILL) JOLIET (WILL) 0.87% 18,122 1 17
Slide 31: Strategic Objectives
Strategic Objectives CLIENT FOCUS OBJECTIVE Expand Market Share *Continue to focus on attracting, in Branch Footprint retaining and developing top level talent Wealth Management *Expand Wealth Management through organic growth -Asset Management/Trust Services -Private Banking -Financial Planning/Bro
Slide 32: Strategic Objectives: Retail and Mortgage Banking
Strategic Objectives CLIENT FOCUS OBJECTIVE Retail Banking *Expand household penetration (Generated over 1100 new households in 2006) *Increase core deposits (Opened record total of 7500 new checking accounts) *Launched quality control program to improve customer service. Mortgage Banking *Implement
Slide 33: Strategic Business Initiatives
Strategic Business Initiatives 1) Headcount reductions resulting in 8% cut in salaries and benefits 2) Eliminated pension costs 3) Announced consolidation of bank charters 4) Slowed de novo branch expansion in 2007 5) Implemented new tax strategy 6) Merged O2 Mortgage into bank 7) Implemented new st
Slide 34: Management Reports - Bill Skoglund
Management Reports Bill Skoglund
Slide 35: Livingston
a LIVINGSTON 135th Anniversary
Slide 36: Illinois' Fastest Growing Cities
Illinois’ Fastest Growing Cities: Net Gain 2000-2005 9,893 (73.4%) 11,929 (207%) 11,984 (21.3%) 12,897 (10%) 14,898 (112.3%) 15,262 (72.2%) 25,073 (17.5%) 29,338 (27.5%) 0 5,000 10,000 15,000 20,000 25,000 30,000 Oswego Huntley Bolingbrook Naperville Plainfield Romeoville Aurora Joliet
Slide 37: Illinois' Fastest Growing Counties
Illinois’ Fastest Growing Counties by % Population Growth, 2000-2005 (%) and 2005 Population (In Thousands) Source: U.S. Census Bureau 2005 Pop: 80 642 482 304 703 929 5,304 44.1% 26.5% 18.3% 16.2% 8.3% 2.5% -1.4% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Kendall Will Kane McHenry Lake DuPage Cook
Slide 38: NE Illinois Planning Commission Population Forecasts
NE Illinois Planning Commission Population Forecasts (as of 9/27/06) 77.14% 72,888 167,375 94,487 Elgin 666.54% 18,370 21,126 2,756 Elburn 3217.25% 14,542 14,994 452 Burlington 31.58% 7,536 31,402 23,866 Batavia 33.78% 48,017 190,167 142,150 Aurora (excl. Kend.) 1505.07% 58,833 62,742 3,909 Sugar Gr
Slide 39: Stock Comparison
Stock Comparison 98.2% 60.1% 23.5% -40% -20% 0% 20% 40% 60% 80% 100% 120% 140% 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 Sep-06 Dec-06 OSBC Nasdaq Banks S&P 500
Slide 40: 5-Yr Comparison on Selected Stocks
5-Yr Comparison on Selected Stocks: 3/29/02 - 3/30/07
Slide 41: Trust Preferred/Tender Offer
Trust Preferred/ Tender Offer
Slide 42: Meeting Adjourned
Meeting Adjourned Please join us for a luncheon.
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