Company: OSBC
Filing Date: 2025-02-26
Form Type: 425
Source: 0000357173-25-000023
Chunk: 9

Company: OLD SECOND BANCORP INC
Filing Date: 2025-02-26
Form: 425
Chunk 9
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Bradley Adams - EVP, Chief Operating & Chief Financial Officer, Old Second Bancorp, Inc.

Thank you.

Operator

Thank you. Our next question is coming from Nathan Race with Piper Sandler. Your line is live.

Q:Hey guys, good morning. Thanks for taking the questions. Thinking about the pro forma charge-off outlook for the combined company. I think last quarter during the 4Q conference call, Jim, you mentioned maybe 10 to 20 basis points in charge-offs is a reasonable expectation going forward. But just curious how you guys are thinking about kind of the long-term charge-off range for the combined company going forward once Evergreen is integrated.

James Eccher - Chairman and CEO of Old Second Bancorp, Inc. & Old Second National Bank

Yes, we're still holding to that 10 to 20 basis point projection. I think for standalone Old Second, historically, Evergreen's on average, a 1% charge-off shop. I mean, so they're going to represent about 25% of our balance sheet. So, you can kind of do the math there. But underwriting discipline has been strong here. Obviously, demand ebbs and flows with how the consumer is doing. But their underwriting has not wavered over the years. So, we have strong beliefs that the historical charge-off trends that you see in the deck are going to carry forward as is in the future.

Q:Okay. That's helpful. And then just going back to the capital discussion. Brett, just to clarify, with this deal in hand are you guys consider yourself kind of on the M&A sidelines at this point as you integrate and close on this deal? Or do you think additional acquisitions are feasible over the next year or two?

Bradley Adams - EVP, Chief Operating & Chief Financial Officer, Old Second Bancorp, Inc.

I think that's kind of a regulatory question, to be honest. I certainly wouldn't expect to hear from us in the next couple of months. But this is a size that we're comfortable with. And I can't say no, but I can't say yes either. I feel very confident that this can be done well from an integration standpoint and very quickly, and we should be ready to go.

Q:Okay. Just one last one for me. The loan deposit ratio is going up with this deal. So just curious if you could just remind us a kind of what's your comfort ratio in terms of how high you're willing to bring up