Ottawa Bancorp, Inc. Announces 2025 First Quarter Results and Approval of Stock Repurchase Program
Ottawa Bancorp (OTTW) reported Q1 2025 net income of $0.4 million ($0.19 per share), up from $0.3 million ($0.10 per share) in Q1 2024. The loan portfolio decreased to $295.1 million from $301.7 million, while non-performing loans improved to $4.1 million from $4.8 million.
Key highlights include improved net interest income and margin, reduced reliance on wholesale funding, and stronger liquidity position. The Board approved a new stock repurchase program for up to 120,996 shares (5% of outstanding stock) through April 23, 2026.
Total deposits increased slightly to $283.2 million, while FHLB advances decreased by 14.6% to $19.0 million. The company successfully resolved a troubled commercial loan relationship from 2022, reducing classified asset balance. Stockholders' equity remained stable at $40.2 million.
Ottawa Bancorp (OTTW) ha riportato un utile netto nel primo trimestre 2025 di 0,4 milioni di dollari (0,19 dollari per azione), in aumento rispetto a 0,3 milioni di dollari (0,10 dollari per azione) nel primo trimestre 2024. Il portafoglio prestiti è diminuito a 295,1 milioni di dollari da 301,7 milioni, mentre i prestiti in sofferenza sono migliorati a 4,1 milioni da 4,8 milioni.
I punti salienti includono un miglioramento del reddito e del margine netto da interessi, una minore dipendenza dal finanziamento all’ingrosso e una posizione di liquidità più solida. Il Consiglio ha approvato un nuovo programma di riacquisto azionario fino a 120.996 azioni (5% del capitale in circolazione) fino al 23 aprile 2026.
I depositi totali sono aumentati leggermente a 283,2 milioni di dollari, mentre gli anticipi FHLB sono diminuiti del 14,6% a 19,0 milioni. L’azienda ha risolto con successo una relazione commerciale problematica del 2022, riducendo il saldo degli asset classificati. Il patrimonio netto degli azionisti è rimasto stabile a 40,2 milioni di dollari.
Ottawa Bancorp (OTTW) reportó un ingreso neto en el primer trimestre de 2025 de 0,4 millones de dólares (0,19 dólares por acción), frente a 0,3 millones (0,10 dólares por acción) en el primer trimestre de 2024. La cartera de préstamos disminuyó a 295,1 millones de dólares desde 301,7 millones, mientras que los préstamos morosos mejoraron a 4,1 millones desde 4,8 millones.
Los aspectos destacados incluyen un aumento en los ingresos netos por intereses y margen, una menor dependencia del financiamiento mayorista y una posición de liquidez más sólida. La Junta aprobó un nuevo programa de recompra de acciones de hasta 120.996 acciones (5% del capital en circulación) hasta el 23 de abril de 2026.
Los depósitos totales aumentaron ligeramente a 283,2 millones, mientras que los adelantos FHLB disminuyeron un 14,6% a 19,0 millones. La compañía resolvió con éxito una relación crediticia comercial problemática de 2022, reduciendo el saldo de activos clasificados. El patrimonio neto de los accionistas se mantuvo estable en 40,2 millones.
오타와 뱅코프(OTTW)는 2025년 1분기 순이익이 40만 달러(주당 0.19달러)로, 2024년 1분기 30만 달러(주당 0.10달러)에서 증가했다고 보고했습니다. 대출 포트폴리오는 3억 1,700만 달러에서 2억 9,510만 달러로 감소했으며, 부실 대출은 480만 달러에서 410만 달러로 개선되었습니다.
주요 내용으로는 순이자수익과 이자마진 개선, 도매 자금 의존도 감소, 유동성 강화가 포함됩니다. 이사회는 2026년 4월 23일까지 최대 120,996주(유통 주식의 5%)에 대한 자사주 매입 프로그램을 승인했습니다.
총 예금은 소폭 증가하여 2억 8,320만 달러를 기록했고, FHLB 차입금은 14.6% 감소한 1,900만 달러였습니다. 회사는 2022년 문제 상업 대출 관계를 성공적으로 해결하여 분류 자산 잔액을 줄였습니다. 주주 자본은 4,020만 달러로 안정적이었습니다.
Ottawa Bancorp (OTTW) a annoncé un bénéfice net au premier trimestre 2025 de 0,4 million de dollars (0,19 dollar par action), en hausse par rapport à 0,3 million (0,10 dollar par action) au premier trimestre 2024. Le portefeuille de prêts a diminué à 295,1 millions de dollars contre 301,7 millions, tandis que les prêts non performants se sont améliorés à 4,1 millions contre 4,8 millions.
Les points clés incluent une amélioration du revenu net d’intérêts et de la marge, une moindre dépendance au financement de gros et une position de liquidité renforcée. Le conseil d’administration a approuvé un nouveau programme de rachat d’actions portant sur jusqu’à 120 996 actions (5 % des actions en circulation) jusqu’au 23 avril 2026.
Les dépôts totaux ont légèrement augmenté à 283,2 millions, tandis que les avances FHLB ont diminué de 14,6 % à 19,0 millions. La société a résolu avec succès une relation de prêt commercial problématique datant de 2022, réduisant ainsi le solde des actifs classés. Les capitaux propres des actionnaires sont restés stables à 40,2 millions.
Ottawa Bancorp (OTTW) meldete für das erste Quartal 2025 einen Nettogewinn von 0,4 Millionen US-Dollar (0,19 US-Dollar je Aktie), gegenüber 0,3 Millionen US-Dollar (0,10 US-Dollar je Aktie) im ersten Quartal 2024. Das Kreditportfolio sank von 301,7 Millionen auf 295,1 Millionen US-Dollar, während notleidende Kredite sich von 4,8 Millionen auf 4,1 Millionen verbesserten.
Wichtige Highlights sind verbesserte Nettozinserträge und -margen, geringere Abhängigkeit von Wholesale-Finanzierungen sowie eine stärkere Liquiditätslage. Der Vorstand genehmigte ein neues Aktienrückkaufprogramm für bis zu 120.996 Aktien (5 % der ausstehenden Aktien) bis zum 23. April 2026.
Die Gesamteinlagen stiegen leicht auf 283,2 Millionen US-Dollar, während FHLB-Vorschüsse um 14,6 % auf 19,0 Millionen US-Dollar zurückgingen. Das Unternehmen löste erfolgreich eine problematische gewerbliche Kreditbeziehung aus 2022 und reduzierte den Bestand klassifizierter Vermögenswerte. Das Eigenkapital der Aktionäre blieb stabil bei 40,2 Millionen US-Dollar.
- Net income increased 33% YoY to $0.4 million ($0.19 per share vs $0.10)
- Non-performing loans ratio improved to 1.36% from 1.58%
- Successfully resolved troubled commercial loan relationship from 2022
- Net interest income increased by $0.3 million to $2.5 million
- Loan portfolio decreased by $6.6 million (2.2%) to $295.1 million
- Total assets decreased by $2.0 million (0.54%) to $351.7 million
- Net charge-offs of $120,000 in Q1 2025 compared to net recoveries of $5,000 in Q1 2024
- Total other income decreased to $0.2 million from $0.3 million YoY
OTTAWA, Ill., April 24, 2025 (GLOBE NEWSWIRE) -- Ottawa Bancorp, Inc. (the “Company”) (OTCQX: OTTW), the holding company for OSB Community Bank (the “Bank”), announced net income of
“We continued to see improvement in our net interest income and net interest margin during the first quarter as our interest expense continued to decline,” said Craig M. Hepner, President and Chief Executive Officer. “Although we continued to see a reduction in our overall loan portfolio during the quarter, we were able to further reduce our reliance on higher-cost wholesale funding while growing organic deposits and strengthening our liquidity position. Asset quality remains strong, and as noted above, during the first quarter, we were able to resolve a significant portion of the troubled commercial loan relationship identified in 2022 which resulted in a substantial reduction in our classified asset balance at quarter-end.”
Mr. Hepner continued, “I am also very pleased to report that the Board of Directors has approved our seventh stock repurchase plan which authorizes the purchase of 120,996 shares, or
Comparison of Results of Operations for the Three Months Ended March 31, 2025 and March 31, 2024
Net income for the three months ended March 31, 2025 was
The multi-loan commercial relationship that was identified in 2022 as being impaired, meaning that it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreements was substantially resolved during the first quarter of 2025. The relationship as of December 31, 2024 had balances of approximately
The Company recorded a recovery of approximately
The Company recorded income tax expense of
Comparison of Financial Condition at March 31, 2025 and December 31, 2024
Total consolidated assets as of March 31, 2025 were
Cash and cash equivalents increased
Securities available for sale increased
Net loans decreased
Total deposits increased
FHLB advances decreased
Stockholders’ equity remained at
Approval of Stock Repurchase Program
The Company also announced today that the Company’s Board of Directors has approved a stock repurchase program authorizing the purchase of up to 120,996 shares, or
About Ottawa Bancorp, Inc.
Ottawa Bancorp, Inc. is the holding company for OSB Community Bank which provides various financial services to individual and corporate customers in the United States. The Bank offers various deposit accounts, including checking, money market, regular savings, club savings, certificates of deposit, and various retirement accounts. Its loan portfolio includes one-to-four family residential mortgage, multi-family and non-residential real estate, commercial, and construction loans as well as auto loans and home equity lines of credit. OSB Community Bank was founded in 1871 and is headquartered in Ottawa, Illinois. For more information about the Company and the Bank, please visit www.myosb.bank.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results. These forward-looking statements, identified by words such as “will,” “expected,” “believe,” and “prospects,” involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. These risks and uncertainties involve general economic trends and changes in interest rates, increased competition, changes in consumer demand for financial services, the possibility of unforeseen events affecting the industry generally, the uncertainties associated with newly developed or acquired operations, market disruptions, our ability to pay future dividends and if so at what level, our ability to receive any required regulatory approval or non-objection for the payment of dividends from the Bank to the Company or from the Company to stockholders, and our efforts to maximize stockholder value, including our ability to execute any capital management strategies, such as the repurchase of shares of the Company’s common stock, and our ability to execute any controlled growth and balance sheet strategies designed to lower the cost of funds and enhance earnings and liquidity. Ottawa Bancorp, Inc. undertakes no obligation to release revisions to these forward-looking statements publicly to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under applicable law.
| Ottawa Bancorp, Inc. & Subsidiary | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| March 31, 2025 and December 31, 2024 | |||||||||||
| (Unaudited) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 14,424,496 | $ | 9,863,824 | |||||||
| Interest bearing deposits | 2,079,797 | 2,651,481 | |||||||||
| Total cash and cash equivalents | 16,504,293 | 12,515,305 | |||||||||
| Federal funds sold | 5,433,000 | 4,493,000 | |||||||||
| Securities available-for-sale, at fair value | 17,944,899 | 16,821,297 | |||||||||
| Loans, net of allowance for credit losses of | |||||||||||
| at March 31, 2025 and December 31, 2024, respectively | 295,126,036 | 301,741,977 | |||||||||
| Loans held for sale | - | 232,000 | |||||||||
| Premises and equipment, net | 5,943,682 | 6,005,515 | |||||||||
| Accrued interest receivable | 1,970,572 | 2,108,565 | |||||||||
| Deferred tax assets, net | 2,222,252 | 2,553,346 | |||||||||
| Cash surrender value of life insurance | 528,202 | 528,129 | |||||||||
| Goodwill | 649,869 | 649,869 | |||||||||
| Other assets | 5,425,999 | 6,002,358 | |||||||||
| Total assets | $ | 351,748,804 | $ | 353,651,361 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Non-interest bearing | $ | 26,044,253 | $ | 22,663,274 | |||||||
| Interest bearing | 257,196,977 | 260,276,358 | |||||||||
| Total deposits | 283,241,230 | 282,939,632 | |||||||||
| Accrued interest payable | 598,388 | 853,122 | |||||||||
| FHLB advances | 19,000,000 | 22,250,000 | |||||||||
| Long term debt | 1,346,347 | 1,380,988 | |||||||||
| Allowance for credit losses on off-balance sheet credit exposures | 76,629 | 79,199 | |||||||||
| Other liabilities | 5,006,107 | 4,365,113 | |||||||||
| Total liabilities | 309,268,701 | 311,868,054 | |||||||||
| Commitments and contingencies | |||||||||||
| ESOP Repurchase Obligation | 2,230,729 | 1,583,522 | |||||||||
| Stockholders' Equity | |||||||||||
| Common stock, $.01 par value, 12,000,000 shares authorized; 2,419,911 and | |||||||||||
| 2,419,911 shares issued at March 31, 2025 and December 31, 2024, respectively | 24,199 | 24,199 | |||||||||
| Additional paid-in-capital | 22,898,558 | 22,898,558 | |||||||||
| Retained earnings | 21,676,498 | 21,503,222 | |||||||||
| Unallocated ESOP shares | (358,737 | ) | (358,737 | ) | |||||||
| Unallocated management recognition plan shares | (59,003 | ) | (70,193 | ) | |||||||
| Accumulated other comprehensive loss | (1,701,412 | ) | (2,213,742 | ) | |||||||
| 42,480,103 | 41,783,307 | ||||||||||
| Less: | |||||||||||
| ESOP Owned Shares | (2,230,729 | ) | (1,583,522 | ) | |||||||
| Total stockholders' equity | 40,249,374 | 40,199,785 | |||||||||
| Total liabilities and stockholders' equity | $ | 351,748,804 | $ | 353,651,361 | |||||||
| Ottawa Bancorp, Inc. & Subsidiary | ||||||||
| Consolidated Statements of Operations | ||||||||
| Three Months Ended March 31, 2025 and 2024 | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Interest and dividend income: | ||||||||
| Interest and fees on loans | $ | 3,791,161 | $ | 3,702,917 | ||||
| Securities: | ||||||||
| Residential mortgage-backed and related securities | 103,299 | 78,672 | ||||||
| State and municipal securities | 19,027 | 18,601 | ||||||
| Dividends on non-marketable equity securities | 28,500 | 37,715 | ||||||
| Interest-bearing deposits | 192,522 | 63,541 | ||||||
| Total interest and dividend income | 4,134,509 | 3,901,446 | ||||||
| Interest expense: | ||||||||
| Deposits | 1,518,972 | 1,520,888 | ||||||
| Borrowings | 169,420 | 218,041 | ||||||
| Total interest expense | 1,688,392 | 1,738,929 | ||||||
| Net interest income | 2,446,117 | 2,162,517 | ||||||
| Recovery of credit losses - loans | (89,898 | ) | (37,143 | ) | ||||
| Recovery of credit losses – off-balance sheet credit exposures | (2,570 | ) | (12,709 | ) | ||||
| Net interest income after recovery of credit losses | 2,538,585 | 2,212,369 | ||||||
| Other income: | ||||||||
| Gain on sale of loans | 21,239 | 18,610 | ||||||
| Loan origination and servicing income | 126,894 | 132,826 | ||||||
| Net Origination (amortization) of mortgage servicing rights | (37,808 | ) | (23,174 | ) | ||||
| Customer service fees | 113,760 | 105,125 | ||||||
| Increase in cash surrender value of life insurance | 74 | 12,547 | ||||||
| Other | - | 6,929 | ||||||
| Total other income | 224,159 | 252,863 | ||||||
| Other expenses: | ||||||||
| Salaries and employee benefits | 1,207,957 | 1,181,559 | ||||||
| Directors’ fees | 45,000 | 40,000 | ||||||
| Occupancy | 160,128 | 157,021 | ||||||
| Deposit insurance premium | 45,000 | 41,800 | ||||||
| Legal and professional services | 82,844 | 118,047 | ||||||
| Data processing | 301,461 | 321,927 | ||||||
| Loan expense | 63,529 | 64,452 | ||||||
| Other | 244,326 | 184,199 | ||||||
| Total other expenses | 2,150,245 | 2,109 005 | ||||||
| Income before income tax | 612,499 | 356,227 | ||||||
| Income tax expense | 176,977 | 90,602 | ||||||
| Net income | $ | 435,522 | $ | 265,625 | ||||
| Basic earnings per share | $ | 0.19 | $ | 0.10 | ||||
| Diluted earnings per share | $ | 0.19 | $ | 0.10 | ||||
| Dividends per share | $ | 0.11 | $ | 0.11 | ||||
| Ottawa Bancorp, Inc. & Subsidiary | ||||||
| Selected Financial Data and Ratios | ||||||
| (Unaudited) | ||||||
| At or for the | ||||||
| Three Months Ended | ||||||
| March 31, | ||||||
| 2025 | 2024 | |||||
| Performance Ratios: | ||||||
| Return on average assets (5) | 0.49 | % | 0.30 | % | ||
| Return on average stockholders' equity (5) | 4.34 | 2.54 | ||||
| Average stockholders' equity to average assets | 11.36 | 11.70 | ||||
| Stockholders' equity to total assets at end of period | 11.44 | 11.61 | ||||
| Net interest rate spread (1) (5) | 2.76 | 2.45 | ||||
| Net interest margin (2) (5) | 2.93 | 2.63 | ||||
| Other expense to average assets | 0.61 | 0.59 | ||||
| Efficiency ratio (3) | 80.49 | 87.33 | ||||
| Dividend payout ratio | 61.50 | 106.19 | ||||
| At or for the | At or for the | |||||||
| Three Months Ended | Twelve Months Ended | |||||||
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (unaudited) | ||||||||
| Regulatory Capital Ratios (4): | ||||||||
| Total risk-based capital (to risk-weighted assets) | 17.51 | % | 18.17 | % | ||||
| Tier 1 core capital (to risk-weighted assets) | 16.26 | 16.92 | ||||||
| Common equity Tier 1 (to risk-weighted assets) | 16.26 | 16.92 | ||||||
| Tier 1 leverage (to adjusted total assets) | 11.47 | 12.06 | ||||||
| Asset Quality Ratios: | ||||||||
| Net charge-offs to average gross loans outstanding | 0.04 | 0.01 | ||||||
| Allowance for credit losses on loans to gross loans outstanding | 1.36 | 1.41 | ||||||
| Non-performing loans to gross loans (6) | 1.36 | 1.58 | ||||||
| Non-performing assets to total assets (6) | 1.16 | 1.37 | ||||||
| Other Data: | ||||||||
| Book Value per common share | $ | 16.63 | $ | 16.61 | ||||
| Tangible Book Value per common share (7) | $ | 16.36 | $ | 16.34 | ||||
| Number of full-service offices | 3 | 3 | ||||||
| (1) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of funds on average interest-bearing liabilities. | ||||||||
| (2) Represents net interest income as a percent of average interest-earning assets. | ||||||||
| (3) Represents total other expenses divided by the sum of net interest income and total other income. | ||||||||
| (4) Ratios are for OSB Community Bank. | ||||||||
| (5) Annualized. | ||||||||
| (6) Non-performing assets consist of non-performing loans, foreclosed real estate and other foreclosed assets. Non-performing loans consist of all loans 90 days or more past due and all loans no longer accruing interest. | ||||||||
| (7) Non-GAAP measure. Excludes goodwill and core deposit intangible. | ||||||||
Contact:
Craig Hepner
President and Chief Executive Officer
(815) 366-5437
FAQ
What are the key financial results for Ottawa Bancorp (OTTW) in Q1 2025?
How many shares are included in OTTW's new stock repurchase program?
What happened to OTTW's loan portfolio in Q1 2025?
How did OTTW's deposit base change in Q1 2025?
