OTTAWA BANCORP, INC. APPROVES STOCK REPURCHASE PROGRAM

Rhea-AI Summary

Ottawa Bancorp, the holding company for OSB Community Bank, announced a stock repurchase program approved by its Board of Directors. The program authorizes the repurchase of 127,332 shares, representing 5% of the company's outstanding common stock. These repurchases will occur through open market purchases, under a trading plan pursuant to SEC Rule 10b5-1, or through privately negotiated transactions. The repurchase program will terminate either upon the completion of the 127,332 shares purchase or by February 10, 2025, whichever comes first. The program aims to capitalize on favorable market conditions and other relevant factors.

Positive

• Board approved stock repurchase program signaling potential confidence in the company's future.
• Authorization to repurchase 127,332 shares, representing 5% of outstanding common stock, which may enhance shareholder value.
• Repurchases conducted through open market purchases or privately negotiated transactions, ensuring flexibility.
• Program is set up under SEC Rule 10b5-1, providing regulatory compliance.

Negative

• The repurchase program has a fixed end date, potentially limiting flexibility in capitalizing on future favorable market conditions.
• Potential use of capital for stock repurchases may limit funds available for other growth opportunities or investments.
• Market conditions and other factors may affect the effectiveness and timing of the repurchase program.

OTTAWA, Ill., May 29, 2024 (GLOBE NEWSWIRE) -- Ottawa Bancorp, Inc. (OTCQX: OTTW) (the “Company”), the holding company for OSB Community Bank (the “Bank”), announced today that the Company’s Board of Directors has approved a stock repurchase program authorizing the repurchase of 127,332 shares, or 5%, of the Company’s outstanding common stock. Stock repurchases will be conducted through open market purchases, which will include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. Repurchases will be made from time to time depending on market conditions and other factors. The Company’s stock repurchase program will terminate upon the completion of the purchase of 127,332 shares or on February 10, 2025 if not all shares have been purchased by that date.

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.

FAQ

What is the stock symbol for Ottawa Bancorp's repurchase program?

The stock symbol for Ottawa Bancorp is OTTW.

How many shares will Ottawa Bancorp repurchase?

Ottawa Bancorp will repurchase 127,332 shares, which is 5% of its outstanding common stock.

When will the Ottawa Bancorp stock repurchase program end?

The stock repurchase program will end upon the repurchase of all 127,332 shares or by February 10, 2025, whichever comes first.

How will Ottawa Bancorp conduct its stock repurchases?

Stock repurchases will be conducted through open market purchases, under an SEC Rule 10b5-1 trading plan, or via privately negotiated transactions.

Why is Ottawa Bancorp initiating a stock repurchase program?

The company aims to enhance shareholder value and capitalize on favorable market conditions.