OTTAWA SAVINGS BANK ANNOUNCES FILING OF APPLICATION TO CONVERT TO AN ILLINOIS-CHARTERED COMMERCIAL BANK AND CHANGE NAME TO “OSB COMMUNITY BANK”
Ottawa Bancorp, Inc. (OTCQX: OTTW) announced its application to convert Ottawa Savings Bank from a federally-chartered savings bank to an Illinois-chartered commercial bank. This strategic move aims to enhance competitiveness and facilitate an expanded commercial loan portfolio, benefiting customer needs and reducing regulatory costs. The bank also plans to change its name to OSB Community Bank. The conversion is anticipated to be completed in Q3 2021, pending regulatory approval, with the Illinois Department of Financial and Professional Regulation and FDIC as primary regulators.
- Conversion to an Illinois-chartered commercial bank expected to enhance competitiveness.
- Opportunity to expand the commercial loan portfolio.
- Change of name to OSB Community Bank reflects community focus and growth.
- Potential regulatory risks associated with the conversion process.
OTTAWA, Ill., May 14, 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 submitted an application to the Illinois Department of Financial and Professional Regulation to convert its charter from a federally-chartered savings bank to an Illinois-chartered commercial bank.
Craig Hepner, President and Chief Executive Officer of Ottawa Bancorp, Inc., commented, “Ottawa Savings Bank has had considerable success as a federally chartered savings bank. Our Board of Directors has determined, however, 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 will position us to increase our commercial loan portfolio, and we believe that the well-qualified lending team that we have assembled over the last several years is well-positioned to help us execute this strategy. From our customers’ perspective, we will be better able to serve their expanding lending needs which reflect the evolving profile of the communities we serve. While increasing our operational flexibility, the conversion will not affect the terms and conditions of our customers’ deposit accounts or loans. The added advantage of converting to an Illinois-state chartered bank is that we expect to reduce the expense of annual regulatory overnight, as it is less expensive to operate as an Illinois-chartered institution than it is to be regulated by the OCC.” Mr. Hepner continued, “We are also excited to announce that consistent with these anticipated changes to our charter, and to better reflect the breadth of the communities we serve, we plan to change the name “Ottawa Savings Bank” to “OSB Community Bank” in connection the charter conversion. We are very proud of our Ottawa Savings Bank heritage. While we feel that the next chapter of the Bank’s history should operate under a moniker that reflects the broadening communities we serve, we want to maintain a linkage to our heritage. We will make every effort to make the next 150 years of the Bank’s life, operating as OSB Community Bank, even more successful than our first 150 years of operation.”
Subject to receiving the necessary regulatory approvals, the charter conversion is expected to be completed in third quarter of 2021. As a result of the charter conversion, the Illinois Department of Financial and Professional Regulation and the Federal Deposit Insurance Corporation will become the Bank’s primary regulators. The Federal Reserve Board will continue to be the primary banking regulator for Ottawa Bancorp, Inc., which will file an application with the Federal Reserve Board to become a bank holding company at the effective time of the charter conversion.
About Ottawa Bancorp, Inc.
Ottawa Bancorp, Inc. is the holding company for 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. Ottawa Savings Bank, FSB was founded in 1871 and is headquartered in Ottawa, Illinois. For more information about the Company and the Bank, please visit www.ottawasavings.com.
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. 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 rules and regulations.
FAQ
What is OTTW's recent announcement regarding its bank charter?
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