OTTAWA SAVINGS BANK ANNOUNCES COMPLETION OF CONVERSION TO AN ILLINOIS-CHARTERED COMMERCIAL BANK AND NAME CHANGE TO “OSB COMMUNITY BANK”

Rhea-AI Summary

Ottawa Bancorp, Inc. (OTCQX: OTTW) announced the conversion of its subsidiary Ottawa Savings Bank from a federally-chartered savings bank to an Illinois-chartered commercial bank, now named OSB Community Bank. This strategic move aims to enhance competitiveness in its markets. The charter conversion will not affect customers, as their deposits continue to be insured by the FDIC. Post-conversion, the Bank will be regulated by the Illinois Department of Financial and Professional Regulation and the FDIC, while the Company remains under Federal Reserve Board supervision.

Positive

• Conversion to Illinois-chartered commercial bank enhances competitiveness.
• Name change to OSB Community Bank aligns with new charter.
• No impact on customer deposit insurance by FDIC.

Negative

• None.

Ottawa, Ill., Sept. 27, 2021 (GLOBE NEWSWIRE) -- Ottawa Bancorp, Inc. (the “Company”) (OTCQX: OTTW), the holding company for Ottawa Savings Bank, FSB (the “Bank”), today announced that the Bank has converted from a federally-chartered savings bank to an Illinois-chartered commercial bank. In connection with the charter conversion, the Bank has changed its name to “OSB Community Bank” and the Company has converted from a savings and loan holding company to a bank holding company.

Craig Hepner, President and Chief Executive Officer of the Company and the Bank, commented, “We are pleased to have completed our previously announced charter conversion. As we have previously stated, we believe that converting to an Illinois-chartered commercial bank best positions the Bank to compete in the markets we serve and to further execute our business strategy.”

The conversion to an Illinois state-chartered commercial bank will have no effect on Bank customers. Depositors will continue to be insured by the Federal Deposit Insurance Corporation (the “FDIC”) to the fullest extent permitted by law. Following the charter conversion, the Illinois Department of Financial and Professional Regulation and the FDIC are now the Bank’s primary regulators. The Company will continue to be regulated by the Federal Reserve Board following the charter conversion.

About Ottawa Bancorp, Inc.

Ottawa Bancorp, Inc. is the holding company for OSB Community Bank (formerly Ottawa Savings Bank, FSB), 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. The Bank was founded in 1871 and is headquartered in Ottawa, Illinois. For more information about the Company and the Bank, please visit 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 and the potential effects of the COVID-19 pandemic on the local and national economic environment, on our customers and on our operations as well as any changes to federal, state and local government laws, regulations and orders in connection with the pandemic. The Company 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 rules and regulations. 

FAQ

What is the recent charter conversion for Ottawa Bancorp, Inc.?

Ottawa Bancorp, Inc. has converted its subsidiary from a federally-chartered savings bank to an Illinois-chartered commercial bank, now named OSB Community Bank.

How does the charter conversion affect Ottawa Bancorp's customers?

The charter conversion will have no effect on customers, as deposit insurance by the FDIC remains intact.

What regulatory changes occurred after Ottawa Bancorp's charter conversion?

Following the conversion, the Bank is primarily regulated by the Illinois Department of Financial and Professional Regulation and the FDIC.

What is the new name of Ottawa Bancorp's Bank after the conversion?

The Bank is now named OSB Community Bank after its conversion to an Illinois-chartered commercial bank.

What are the implications of Ottawa Bancorp's conversion for its business strategy?

The conversion is intended to better position the Bank to compete in its markets and execute its business strategy.