Ottawa Bancorp, Inc. Announces Third Quarter 2024 Results
Ottawa Bancorp (OTTW) reported Q3 2024 net income of $0.2 million ($0.08 per share), down from $0.5 million ($0.20 per share) in Q3 2023. The loan portfolio decreased to $304.2 million from $312.2 million, with non-performing loans at $4.8 million. Interest income increased to $4.1 million from $3.8 million, while interest expense rose to $1.9 million from $1.5 million. The company continued its sixth stock repurchase program, buying back 64,221 shares at an average price of $13.38. Total assets decreased 2.4% to $355.2 million, and total deposits declined 2.1% to $275.3 million.
Ottawa Bancorp (OTTW) ha riportato un utile netto per il terzo trimestre del 2024 di 0,2 milioni di dollari (0,08 dollari per azione), in calo rispetto ai 0,5 milioni di dollari (0,20 dollari per azione) del terzo trimestre del 2023. Il portafoglio prestiti è diminuito a 304,2 milioni di dollari rispetto ai 312,2 milioni, con prestiti non performanti pari a 4,8 milioni di dollari. Gli interessi attivi sono aumentati a 4,1 milioni di dollari rispetto ai 3,8 milioni, mentre le spese per interessi sono salite a 1,9 milioni di dollari dai precedenti 1,5 milioni. L'azienda ha proseguito il suo sesto programma di riacquisto di azioni, riacquistando 64.221 azioni ad un prezzo medio di 13,38 dollari. Le attività totali sono diminuite del 2,4% a 355,2 milioni di dollari e i depositi totali sono scesi del 2,1% a 275,3 milioni di dollari.
Ottawa Bancorp (OTTW) reportó un ingreso neto de $0.2 millones ($0.08 por acción) en el tercer trimestre de 2024, en comparación con $0.5 millones ($0.20 por acción) en el tercer trimestre de 2023. La cartera de préstamos disminuyó a $304.2 millones desde $312.2 millones, con préstamos en mora de $4.8 millones. Los ingresos por intereses aumentaron a $4.1 millones desde $3.8 millones, mientras que los gastos por intereses subieron a $1.9 millones desde $1.5 millones. La empresa continuó con su sexto programa de recompra de acciones, comprando 64,221 acciones a un precio promedio de $13.38. Los activos totales disminuyeron un 2.4% a $355.2 millones, y los depósitos totales cayeron un 2.1% a $275.3 millones.
오타와 뱅크(OTTW)는 2024년 3분기 순익이 20만 달러(주당 0.08 달러)로 2023년 3분기 50만 달러(주당 0.20 달러)에서 감소했다고 보고했습니다. 대출 포트폴리오는 3억 420만 달러에서 3억 1220만 달러로 감소했으며, 부실채권은 480만 달러에 달했습니다. 이자 수익은 380만 달러에서 410만 달러로 증가했으며, 이자 비용은 150만 달러에서 190만 달러로 상승했습니다. 회사는 여섯 번째 자사주 매입 프로그램을 계속하며 평균 13.38 달러에 64,221주를 매입했습니다. 총 자산은 2.4% 감소하여 3억 5520만 달러가 되었고, 총 예금은 2.1% 감소하여 2억 7530만 달러로 줄었습니다.
Ottawa Bancorp (OTTW) a annoncé un revenu net de 0,2 million de dollars (0,08 dollar par action) pour le troisième trimestre 2024, en baisse par rapport à 0,5 million de dollars (0,20 dollar par action) au troisième trimestre 2023. Le portefeuille de prêts a diminué à 304,2 millions de dollars contre 312,2 millions de dollars, avec des prêts performants s'élevant à 4,8 millions de dollars. Les revenus d'intérêts ont augmenté à 4,1 millions de dollars contre 3,8 millions de dollars, tandis que les charges d'intérêts ont augmenté à 1,9 million de dollars contre 1,5 million de dollars. L'entreprise a poursuivi son sixième programme de rachat d'actions, achetant 64 221 actions à un prix moyen de 13,38 dollars. Les actifs totaux ont baissé de 2,4 % à 355,2 millions de dollars, et les dépôts totaux ont diminué de 2,1 % à 275,3 millions de dollars.
Ottawa Bancorp (OTTW) meldete für das dritte Quartal 2024 ein Nettoergebnis von 0,2 Millionen Dollar (0,08 Dollar pro Aktie), das von 0,5 Millionen Dollar (0,20 Dollar pro Aktie) im dritten Quartal 2023 gesunken ist. Das Kreditportfolio verringerte sich auf 304,2 Millionen Dollar von 312,2 Millionen Dollar, wobei sich notleidende Kredite auf 4,8 Millionen Dollar beliefen. Die Zinserträge stiegen auf 4,1 Millionen Dollar von 3,8 Millionen Dollar, während die Zinsaufwendungen auf 1,9 Millionen Dollar von 1,5 Millionen Dollar anstiegen. Das Unternehmen setzte sein sechstes Aktienrückkaufprogramm fort und kaufte 64.221 Aktien zu einem Durchschnittspreis von 13,38 Dollar zurück. Die Gesamtaktiva sanken um 2,4% auf 355,2 Millionen Dollar und die Gesamteinlagen fielen um 2,1% auf 275,3 Millionen Dollar.
- Interest income increased to $4.1 million from $3.8 million in Q3 2023
- Yield on interest-earning assets improved to 4.92% from 4.51%
- Stock repurchase program successfully executed with 64,221 shares bought back
- Net income declined to $0.2 million from $0.5 million in Q3 2023
- Loan portfolio decreased by $8 million to $304.2 million
- Interest expense increased by $0.4 million to $1.9 million
- Total deposits decreased by $5.8 million to $275.3 million
- Non-performing loans to gross loans ratio increased to 1.57% from 1.52%
OTTAWA, Ill., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Ottawa Bancorp, Inc. (the “Company”) (OTCQX: OTTW), the holding company for OSB Community Bank (the “Bank”), announced net income of
As announced on May 29, 2024, the Company initiated its sixth stock repurchase program approved by the Board of Directors since the Company completed its second step conversion in 2016. Under the current repurchase plan, as of September 30, 2024, the Company has repurchased a total of 64,221 shares of its common stock at an average price of
“Our cost of funds remained elevated and continued to negatively impact earnings during the third quarter,” said Craig M. Hepner, President and Chief Executive Officer. “We were pleased to see the recent cuts in short-term interest rates on the part of the Federal Reserve, and as a result of these moves, we have begun to see a reduction in interest expense, mainly in our wholesale funding sources. Local deposit interest rates remain elevated, however, as the competition for retail deposit dollars within our markets remains strong. In spite of tempered loan demand during the quarter, we continued to realize an increase in our interest revenue as a result of the higher rate environment of the past several months and as a result of the balance sheet restructuring strategy executed in the second quarter of the year. This strategy, combined with lower overall bond yields throughout the third quarter, resulted in a significant reduction in our other comprehensive loss at quarter-end.”
Mr. Hepner continued, “I am pleased to report that the stock repurchase program announced earlier this year is progressing well, and we were able to repurchase and retire over 52,000 shares of Company stock during the third quarter. The Board remains committed to executing strategies to maximize shareholder value.”
Comparison of Results of Operations for the Three Months Ended September 30, 2024 and September 30, 2023
Net income for the three months ended September 30, 2024 was
During the third quarter of 2022, a multi-loan commercial relationship with outstanding balances totaling approximately
The Company recorded an expense of approximately
The Company recorded an income tax expense of
Comparison of Results of Operations for the Nine Months Ended September 30, 2024 and September 30, 2023
Net income was
The Company recorded a recovery of
We recorded income tax expense of approximately
Comparison of Financial Condition at September 30, 2024 and December 31, 2023
Total consolidated assets as of September 30, 2024 were
Cash and cash equivalents decreased
Securities available for sale decreased
Net loans decreased
Total deposits decreased
FHLB advances decreased
Stockholders’ equity decreased
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 | |||||||||||
| September 30, 2024 and December 31, 2023 | |||||||||||
| (Unaudited) | |||||||||||
| September 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 4,814,569 | $ | 3,511,709 | |||||||
| Interest bearing deposits | 7,864,089 | 9,884,710 | |||||||||
| Total cash and cash equivalents | 12,678,658 | 13,396,419 | |||||||||
| Securities available for sale | 18,648,163 | 18,781,463 | |||||||||
| Loans, net of allowance for credit losses of | |||||||||||
| at September 30, 2024 and December 31, 2023, respectively | 304,154,854 | 312,181,918 | |||||||||
| Loans held for sale | 372,663 | - | |||||||||
| Premises and equipment, net | 6,065,779 | 5,998,742 | |||||||||
| Accrued interest receivable | 1,903,494 | 1,700,911 | |||||||||
| Deferred tax assets | 2,273,159 | 2,799,503 | |||||||||
| Cash value of life insurance | 2,757,376 | 2,717,888 | |||||||||
| Goodwill | 649,869 | 649,869 | |||||||||
| Core deposit intangible | 8,662 | 31,909 | |||||||||
| Other assets | 5,690,036 | 5,659,196 | |||||||||
| Total assets | $ | 355,202,713 | $ | 363,917,818 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Non-interest bearing | $ | 20,492,939 | $ | 23,839,628 | |||||||
| Interest bearing | 254,775,688 | 257,246,330 | |||||||||
| Total deposits | 275,268,627 | 281,085,958 | |||||||||
| Accrued interest payable | 743,159 | 320,238 | |||||||||
| FHLB advances | 28,500,000 | 30,750,000 | |||||||||
| Fed funds purchased | 2,772,000 | 2,235,000 | |||||||||
| Long term debt | 1,415,128 | 1,700,000 | |||||||||
| Allowance for credit losses on off-balance sheet credit exposures | 77,257 | 94,136 | |||||||||
| Other liabilities | 3,663,328 | 4,400,892 | |||||||||
| Total liabilities | 312,439,499 | 320,586,224 | |||||||||
| Commitments and contingencies | |||||||||||
| ESOP Repurchase Obligation | 1,583,522 | 1,691,975 | |||||||||
| Stockholders' Equity | |||||||||||
| Common stock, $.01 par value, 12,000,000 shares authorized; 2,480,994 and | |||||||||||
| 2,552,971 shares issued at September 30, 2024 and December 31, 2023, respectively | 24,792 | 25,529 | |||||||||
| Additional paid-in-capital | 23,783,277 | 24,738,476 | |||||||||
| Retained earnings | 21,246,475 | 21,798,054 | |||||||||
| Unallocated ESOP shares | (682,192 | ) | (682,192 | ) | |||||||
| Unallocated management recognition plan shares | (82,028 | ) | (103,417 | ) | |||||||
| Accumulated other comprehensive loss | (1,527,110 | ) | (2,444,856 | ) | |||||||
| 42,763,214 | 43,331,594 | ||||||||||
| Less: | |||||||||||
| ESOP Owned Shares | (1,583,522 | ) | (1,691,975 | ) | |||||||
| Total stockholders' equity | 41,179,692 | 41,639,619 | |||||||||
| Total liabilities and stockholders' equity | $ | 355,202,713 | $ | 363,917,818 | |||||||
| Ottawa Bancorp, Inc. & Subsidiary | |||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||
| Three and Nine Months Ended September 30, 2024 and 2023 | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Interest and dividend income: | |||||||||||||||
| Interest and fees on loans | $ | 3,820,409 | $ | 3,660,212 | $ | 11,221,660 | $ | 10,773,586 | |||||||
| Securities: | |||||||||||||||
| Residential mortgage-backed and related securities | 109,640 | 85,638 | 264,709 | 237,272 | |||||||||||
| State and municipal securities | 18,329 | 25,031 | 55,506 | 67,642 | |||||||||||
| Dividends on non-marketable equity securities | 28,500 | 23,253 | 94,715 | 53,173 | |||||||||||
| Interest-bearing deposits | 76,863 | 43,166 | 285,779 | 129,813 | |||||||||||
| Total interest and dividend income | 4,053,741 | 3,837,300 | 11,922,369 | 11,261,486 | |||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 1,681,896 | 1,386,099 | 4,751,642 | 3,688,342 | |||||||||||
| Borrowings | 221,905 | 162,346 | 651,898 | 423,473 | |||||||||||
| Total interest expense | 1,903,801 | 1,548,445 | 5,403,540 | 4,111,815 | |||||||||||
| Net interest income | 2,149,940 | 2,288,855 | 6,518,829 | 7,149,671 | |||||||||||
| Provision for (recovery of) credit losses - loans | 8,919 | (209,269 | ) | (68,412 | ) | (204,186 | ) | ||||||||
| Recovery of credit losses – off-balance sheet credit exposures | (4,170 | ) | - | (16,879 | ) | - | |||||||||
| Net interest income after provision for loan losses | 2,145,191 | 2,498,124 | 6,604,120 | 7,353,857 | |||||||||||
| Other income: | |||||||||||||||
| Gain on sale of loans | 62,378 | 32,746 | 126,742 | 96,398 | |||||||||||
| Loan origination and servicing income | 148,808 | 141,415 | 436,931 | 433,700 | |||||||||||
| Origination of mortgage servicing rights, net of amortization | (92,872 | ) | 1,667 | (140,076 | ) | 56,692 | |||||||||
| Customer service fees | 126,357 | 117,016 | 350,009 | 345,065 | |||||||||||
| Increase in cash surrender value of life insurance | 13,961 | 12,472 | 39,488 | 36,535 | |||||||||||
| Other | - | 10,332 | - | 17,140 | |||||||||||
| Total other income | 258,632 | 315,648 | 813,094 | 985,530 | |||||||||||
| Other expenses: | |||||||||||||||
| Salaries and employee benefits | 1,191,074 | 1,159,391 | 3,539,225 | 3,539,398 | |||||||||||
| Directors’ fees | 45,000 | 45,000 | 130,000 | 135,000 | |||||||||||
| Occupancy | 152,238 | 157,306 | 465,339 | 471,349 | |||||||||||
| Deposit insurance premium | 37,402 | 36,762 | 112,104 | 97,532 | |||||||||||
| Legal and professional services | 77,472 | 121,701 | 412,964 | 284,388 | |||||||||||
| Data processing | 304,367 | 319,176 | 903,768 | 921,235 | |||||||||||
| Loss on sale of securities | - | - | 600,408 | - | |||||||||||
| Loan expense | 66,473 | 60,891 | 233,711 | 194,264 | |||||||||||
| Other | 242,288 | 249,315 | 621,819 | 672,588 | |||||||||||
| Total other expenses | 2,116,314 | 2,149,542 | 7,019,338 | 6,315,754 | |||||||||||
| Income before income tax | 287,509 | 664,230 | 397,876 | 2,023,633 | |||||||||||
| Income tax expense | 88,739 | 183,400 | 136,422 | 558,566 | |||||||||||
| Net income | $ | 198,770 | $ | 480,830 | $ | 261,454 | $ | 1,465,067 | |||||||
| Basic earnings per share | $ | 0.08 | $ | 0.20 | $ | 0.10 | $ | 0.58 | |||||||
| Diluted earnings per share | $ | 0.08 | $ | 0.20 | $ | 0.10 | $ | 0 58 | |||||||
| Dividends per share | $ | 0.104 | $ | 0.111 | $ | 0.322 | $ | 0.325 | |||||||
| Ottawa Bancorp, Inc. & Subsidiary | |||||||||||||||
| Selected Financial Data and Ratios | |||||||||||||||
| (Unaudited) | |||||||||||||||
| At or for the | At or for the | ||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Performance Ratios: | |||||||||||||||
| Return on average assets (5) | 0.23 | % | 0.53 | % | 0.15 | % | 0.54 | % | |||||||
| Return on average stockholders' equity (5) | 1.94 | 4.65 | 1.26 | 4.72 | |||||||||||
| Average stockholders' equity to average assets | 11.68 | 11.48 | 11.80 | 11.48 | |||||||||||
| Stockholders' equity to total assets at end of period | 11.59 | 11.25 | 11.59 | 11.25 | |||||||||||
| Net interest rate spread (1) (5) | 2.49 | 2.58 | 2.48 | 2.76 | |||||||||||
| Net interest margin (2) (5) | 2.67 | 2.72 | 2.66 | 2.88 | |||||||||||
| Other expense to average assets | 0.60 | 0.60 | 1.99 | 1.75 | |||||||||||
| Efficiency ratio (3) | 87.84 | 82.53 | 95.73 | 77.64 | |||||||||||
| Dividend payout ratio | 134.37 | 56.75 | 312.32 | 56.01 | |||||||||||
| At or for the | At or for the | ||||||
| Nine Months Ended | Twelve Months Ended | ||||||
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| (unaudited) | |||||||
| Regulatory Capital Ratios (4): | |||||||
| Total risk-based capital (to risk-weighted assets) | 17.40 | % | 17.86 | % | |||
| Tier 1 core capital (to risk-weighted assets) | 16.15 | 16.61 | |||||
| Common equity Tier 1 (to risk-weighted assets) | 16.15 | 16.61 | |||||
| Tier 1 leverage (to adjusted total assets) | 11.94 | 12.29 | |||||
| Asset Quality Ratios: | |||||||
| Net charge-offs to average gross loans outstanding | 0.00 | 0.07 | |||||
| Allowance for credit losses on loans to gross loans outstanding | 1.39 | 1.38 | |||||
| Non-performing loans to gross loans (6) | 1.57 | 1.52 | |||||
| Non-performing assets to total assets (6) | 1.36 | 1.32 | |||||
| Other Data: | |||||||
| Book Value per common share | $ | 16.60 | $ | 16.32 | |||
| Tangible Book Value per common share (7) | $ | 16.33 | $ | 16.05 | |||
| 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 was Ottawa Bancorp's (OTTW) earnings per share in Q3 2024?
How much did Ottawa Bancorp's (OTTW) loan portfolio decrease in Q3 2024?
What was OTTW's stock repurchase activity in Q3 2024?
What was Ottawa Bancorp's (OTTW) total deposit balance as of September 30, 2024?
