Ottawa Bancorp, Inc. Announces 2025 Second Quarter Results
Ottawa Bancorp (OTCQX: OTTW) reported significant improvement in Q2 2025 with net income of $0.5 million ($0.21 per share), compared to a net loss of $0.2 million in Q2 2024. For H1 2025, net income reached $0.9 million ($0.39 per share), up from $0.01 million in H1 2024.
The loan portfolio grew slightly to $302.2 million, while non-performing loans decreased to $3.8 million from $4.8 million, improving the non-performing loans ratio to 1.23%. The company continued its seventh stock repurchase program, having repurchased 59,053 shares at $14.74 per share under the current plan.
Key improvements include reduced cost of funds, increased asset yields, and expanded net interest margin. The Allowance for Credit Losses (ACL) stood at 1.34% of total gross loans, with a $49,000 recovery recorded in Q2 2025.
Ottawa Bancorp (OTCQX: OTTW) ha riportato un significativo miglioramento nel secondo trimestre del 2025, con un utile netto di 0,5 milioni di dollari (0,21 dollari per azione), rispetto a una perdita netta di 0,2 milioni di dollari nel secondo trimestre del 2024. Nel primo semestre del 2025, l'utile netto ha raggiunto 0,9 milioni di dollari (0,39 dollari per azione), in aumento rispetto a 0,01 milioni di dollari nel primo semestre del 2024.
Il portafoglio prestiti è cresciuto leggermente fino a 302,2 milioni di dollari, mentre i prestiti non performanti sono diminuiti a 3,8 milioni di dollari dai 4,8 milioni precedenti, migliorando il rapporto di prestiti non performanti all'1,23%. L'azienda ha proseguito con il suo settimo programma di riacquisto azionario, riacquistando 59.053 azioni a 14,74 dollari per azione nell'ambito del piano attuale.
I miglioramenti chiave includono una riduzione del costo dei fondi, un aumento dei rendimenti degli attivi e un'espansione del margine di interesse netto. L'Accantonamento per Perdite su Crediti (ACL) si è attestato al 1,34% del totale dei prestiti lordi, con un recupero di 49.000 dollari registrato nel secondo trimestre del 2025.
Ottawa Bancorp (OTCQX: OTTW) reportó una mejora significativa en el segundo trimestre de 2025, con un ingreso neto de 0,5 millones de dólares (0,21 dólares por acción), en comparación con una pérdida neta de 0,2 millones en el segundo trimestre de 2024. Para el primer semestre de 2025, el ingreso neto alcanzó 0,9 millones de dólares (0,39 dólares por acción), aumentando desde 0,01 millones en el primer semestre de 2024.
La cartera de préstamos creció ligeramente hasta 302,2 millones de dólares, mientras que los préstamos en mora disminuyeron a 3,8 millones de dólares desde 4,8 millones, mejorando la ratio de préstamos en mora al 1,23%. La empresa continuó con su séptimo programa de recompra de acciones, habiendo recomprado 59,053 acciones a 14,74 dólares por acción bajo el plan actual.
Las mejoras clave incluyen reducción en el costo de fondos, aumento en los rendimientos de activos y expansión del margen neto de interés. La Provisión para Pérdidas Crediticias (ACL) se situó en 1,34% del total de préstamos brutos, con una recuperación de 49,000 dólares registrada en el segundo trimestre de 2025.
Ottawa Bancorp (OTCQX: OTTW)는 2025년 2분기에 순이익 50만 달러(주당 0.21달러)를 기록하며 큰 개선을 보였습니다. 이는 2024년 2분기 순손실 20만 달러와 비교되는 수치입니다. 2025년 상반기 순이익은 90만 달러(주당 0.39달러)로, 2024년 상반기 1만 달러에서 증가했습니다.
대출 포트폴리오는 소폭 증가하여 3억 220만 달러를 기록했고, 부실 대출은 480만 달러에서 380만 달러로 감소하여 부실 대출 비율이 1.23%로 개선되었습니다. 회사는 현재 계획 하에 주당 14.74달러에 59,053주를 재매입하며 7번째 자사주 매입 프로그램을 이어갔습니다.
주요 개선 사항으로는 자금 조달 비용 감소, 자산 수익률 증가, 순이자 마진 확대가 포함됩니다. 대손충당금(ACL)은 총 대출액의 1.34%였으며, 2025년 2분기에 49,000달러의 회수가 기록되었습니다.
Ottawa Bancorp (OTCQX : OTTW) a annoncé une amélioration significative au deuxième trimestre 2025 avec un bénéfice net de 0,5 million de dollars (0,21 dollar par action), contre une perte nette de 0,2 million au deuxième trimestre 2024. Pour le premier semestre 2025, le bénéfice net a atteint 0,9 million de dollars (0,39 dollar par action), en hausse par rapport à 0,01 million au premier semestre 2024.
Le portefeuille de prêts a légèrement augmenté pour atteindre 302,2 millions de dollars, tandis que les prêts non performants ont diminué à 3,8 millions de dollars contre 4,8 millions, améliorant le ratio de prêts non performants à 1,23 %. La société a poursuivi son septième programme de rachat d’actions, ayant racheté 59 053 actions à 14,74 dollars par action dans le cadre du plan actuel.
Les améliorations clés comprennent la réduction du coût des fonds, l’augmentation des rendements des actifs et l’expansion de la marge nette d’intérêt. La provision pour pertes sur crédits (ACL) s’élevait à 1,34 % du total des prêts bruts, avec un recouvrement de 49 000 dollars enregistré au deuxième trimestre 2025.
Ottawa Bancorp (OTCQX: OTTW) meldete im zweiten Quartal 2025 eine deutliche Verbesserung mit einem Nettogewinn von 0,5 Millionen US-Dollar (0,21 US-Dollar je Aktie), verglichen mit einem Nettoverlust von 0,2 Millionen US-Dollar im zweiten Quartal 2024. Im ersten Halbjahr 2025 erreichte der Nettogewinn 0,9 Millionen US-Dollar (0,39 US-Dollar je Aktie), gegenüber 0,01 Millionen US-Dollar im ersten Halbjahr 2024.
Das Kreditportfolio wuchs leicht auf 302,2 Millionen US-Dollar, während notleidende Kredite von 4,8 Millionen auf 3,8 Millionen US-Dollar sanken, was die Quote notleidender Kredite auf 1,23% verbesserte. Das Unternehmen setzte sein siebtes Aktienrückkaufprogramm fort und kaufte im Rahmen des aktuellen Plans 59.053 Aktien zu je 14,74 US-Dollar zurück.
Wesentliche Verbesserungen umfassen niedrigere Finanzierungskosten, höhere Erträge aus Vermögenswerten und eine ausgeweitete Nettozinsmarge. Die Rückstellung für Kreditausfälle (ACL) lag bei 1,34% der gesamten Bruttokredite, mit einer Erholung von 49.000 US-Dollar im zweiten Quartal 2025.
- Net income improved to $0.5M in Q2 2025 from -$0.2M loss in Q2 2024
- Non-performing loans ratio improved to 1.23% from 1.58%
- Net interest margin expanded due to lower cost of funds and higher asset yields
- Successfully executing seventh stock repurchase program
- Substantial resolution of previously impaired commercial relationship
- Total assets decreased by $6.9M (1.9%) to $346.8M
- Total deposits declined by $6.0M (2.1%) to $276.9M
- 1-4 family residential loan activity remains sluggish due to higher mortgage rates
- Stockholders' equity decreased to $39.6M from $40.2M
OTTAWA, Ill., July 28, 2025 (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 April 24, 2025, the Company initiated its seventh stock repurchase program approved by the Board of Directors since the Company completed its second step conversion in 2016. Through June 30, 2025, the Company has repurchased a total of 1,140,427 shares of its common stock at an average price of
“I am pleased with the results of operations in the second quarter,” said Craig M. Hepner, President and Chief Executive Officer. “We continued to see a reduction in our cost of funds along with an increase in asset yields which led to continued expansion in our net interest margin during the quarter. In addition, we continued to pay down our higher-cost wholesale funding during the quarter as loan growth remained relatively flat. Even though our 1-4 family residential loan activity continues to remain sluggish due primarily to higher mortgage interest rates, economic conditions in our local markets have remained relatively stable, and we remain cautiously optimistic about our other areas of lending as we progress through the remainder of 2025.”
Mr. Hepner continued, “I am also pleased with the success we had during the second quarter with our current stock repurchase plan. Through the stock repurchase plan and the payment of cash dividends, we continue to remain a significant source of liquidity to our shareholders. The Board continues to evaluate and execute on strategies designed to maximize overall shareholder value.”
Comparison of Results of Operations for the Three Months Ended June 30, 2025 and June 30, 2024
Net income for the three months ended June 30, 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 half of 2025 as we received principal paydowns on a number of the loans. 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 Results of Operations for the Six Months Ended June 30, 2025 and June 30, 2024
Net income was
The Company recorded a recovery of
We recorded an income tax expense of approximately
Comparison of Financial Condition at June 30, 2025 and December 31, 2024
Total consolidated assets as of June 30, 2025 were
Cash and cash equivalents decreased
Securities available for sale increased
Net loans increased
Total deposits decreased
FHLB advances decreased
Stockholders’ equity decreased to
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 | |||||||||||
| June 30, 2025 and December 31, 2024 | |||||||||||
| (Unaudited) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 3,828,655 | $ | 9,863,824 | |||||||
| Interest bearing deposits | 5,411,905 | 2,651,481 | |||||||||
| Total cash and cash equivalents | 9,240,560 | 12,515,305 | |||||||||
| Federal funds sold | 1,120,000 | 4,493,000 | |||||||||
| Securities available for sale, at fair value | 17,374,082 | 16,821,297 | |||||||||
| Loans, net of allowance for credit losses of | 302,204,823 | 301,741,977 | |||||||||
| Loans held for sale | - | 232,000 | |||||||||
| Premises and equipment, net | 5,881,249 | 6,005,515 | |||||||||
| Accrued interest receivable | 2,049,360 | 2,108,565 | |||||||||
| Deferred tax assets, net | 2,216,626 | 2,553,346 | |||||||||
| Cash value of life insurance | 528,301 | 528,129 | |||||||||
| Goodwill | 649,869 | 649,869 | |||||||||
| Other assets | 5,546,148 | 6,002,358 | |||||||||
| Total assets | $ | 346,811,018 | $ | 353,651,361 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Non-interest bearing | $ | 21,955,752 | $ | 22,663,274 | |||||||
| Interest bearing | 254,963,094 | 260,276,358 | |||||||||
| Total deposits | 276,918,846 | 282,939,632 | |||||||||
| Accrued interest payable | 486,061 | 853,122 | |||||||||
| FHLB advances | 21,500,000 | 22,250,000 | |||||||||
| Long term debt | 1,310,755 | 1,380,988 | |||||||||
| Allowance for credit losses on off-balance sheet credit exposures | 76,629 | 79,199 | |||||||||
| Other liabilities | 4,863,232 | 4,365,113 | |||||||||
| Total liabilities | 305,155,523 | 311,868,054 | |||||||||
| Commitments and contingencies | |||||||||||
| ESOP Repurchase Obligation | 2,101,581 | 1,583,522 | |||||||||
| Stockholders' Equity | |||||||||||
| Common stock, $.01 par value, 12,000,000 shares authorized; 2,351,795 and 2,419,911 shares issued at June 30, 2025 and December 31, 2024, respectively | 23,518 | 24,199 | |||||||||
| Additional paid-in-capital | 21,899,778 | 22,898,558 | |||||||||
| Retained earnings | 21,913,528 | 21,503,222 | |||||||||
| Unallocated ESOP shares | (358,737 | ) | (358,737 | ) | |||||||
| Unallocated management recognition plan shares | (49,658 | ) | (70,193 | ) | |||||||
| Accumulated other comprehensive loss | (1,772,934 | ) | (2,213,742 | ) | |||||||
| 41,655,495 | 41,783,307 | ||||||||||
| Less: | |||||||||||
| ESOP Owned Shares | (2,101,581 | ) | (1,583,522 | ) | |||||||
| Total stockholders' equity | 39,553,914 | 40,199,785 | |||||||||
| Total liabilities and stockholders' equity | $ | 346,811,018 | $ | 353,651,361 | |||||||
| Ottawa Bancorp, Inc. & Subsidiary | |||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||
| Three and Six Months Ended June 30, 2025 and 2024 | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Interest and dividend income: | |||||||||||||||
| Interest and fees on loans | $ | 3,925,744 | $ | 3,698,334 | $ | 7,716,904 | $ | 7,401,252 | |||||||
| Securities: | |||||||||||||||
| Residential mortgage-backed and related securities | 101,287 | 76,395 | 204,587 | 155,068 | |||||||||||
| State and municipal securities | 24,952 | 18,577 | 43,980 | 37,177 | |||||||||||
| Dividends on non-marketable equity securities | 28,500 | 28,500 | 57,000 | 66,215 | |||||||||||
| Interest-bearing deposits | 166,628 | 145,375 | 359,150 | 208,916 | |||||||||||
| Total interest and dividend income | 4,247,111 | 3,967,181 | 8,381,621 | 7,868,628 | |||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 1,464,485 | 1,548,857 | 2,983,457 | 3,069,745 | |||||||||||
| Borrowings | 177,208 | 211,953 | 346,628 | 429,993 | |||||||||||
| Total interest expense | 1,641,693 | 1,760,810 | 3,330,085 | 3,499,738 | |||||||||||
| Net interest income | 2,605,418 | 2,206,371 | 5,051,536 | 4,368,890 | |||||||||||
| Recovery of credit losses - loans | (49,179 | ) | (40,188 | ) | (139,077 | ) | (77,331 | ) | |||||||
| Recovery of credit losses – off-balance sheet credit exposures | - | - | (2,570 | ) | (12,709 | ) | |||||||||
| Net interest income after recovery of credit losses | 2,654,597 | 2,246,559 | 5,193,183 | 4,458,930 | |||||||||||
| Other income: | |||||||||||||||
| Gain on sale of loans | 58,190 | 45,754 | 79,429 | 64,365 | |||||||||||
| Loan origination and servicing income | 158,200 | 155,296 | 285,093 | 288,122 | |||||||||||
| Net origination (amortization) of mortgage servicing rights | 17,167 | (24,029 | ) | (20,641 | ) | (47,204 | ) | ||||||||
| Customer service fees | 123,141 | 110,272 | 234,517 | 215,397 | |||||||||||
| Increase in cash surrender value of life insurance | 98 | 12,980 | 172 | 25,527 | |||||||||||
| Other | 1,298 | 1,326 | 3,682 | 8,255 | |||||||||||
| Total other income | 358,094 | 301,599 | 582,252 | 554,462 | |||||||||||
| Other expenses: | |||||||||||||||
| Salaries and employee benefits | 1,292,896 | 1,166,594 | 2,500,853 | 2,348,152 | |||||||||||
| Directors’ fees | 45,000 | 45,000 | 90,000 | 85,000 | |||||||||||
| Occupancy | 162,646 | 156,080 | 322,774 | 313,101 | |||||||||||
| Deposit insurance premium | 33,000 | 32,902 | 78,000 | 74,702 | |||||||||||
| Legal and professional services | 90,398 | 217,444 | 173,243 | 335,491 | |||||||||||
| Data processing | 302,151 | 292,964 | 603,612 | 599,401 | |||||||||||
| Loss on sale of securities | - | 600,408 | - | 600,408 | |||||||||||
| Loan expense | 70,279 | 87,294 | 133,808 | 167,238 | |||||||||||
| Other | 308,554 | 195,332 | 552,881 | 379,531 | |||||||||||
| Total other expenses | 2,304,924 | 2,794,018 | 4,455,171 | 4,903,024 | |||||||||||
| Income (loss) before income tax | 707,767 | (245,860 | ) | 1,320,264 | 110,368 | ||||||||||
| Income tax expense (benefit) | 212,961 | (42,919 | ) | 389,938 | 47,683 | ||||||||||
| Net income (loss) | $ | 494,806 | $ | (202,941 | ) | $ | 930,326 | $ | 62,685 | ||||||
| Basic earnings (losses) per share | $ | 0.21 | $ | (0.08 | ) | $ | 0.39 | $ | 0.02 | ||||||
| Diluted earnings (losses) per share | $ | 0.21 | $ | (0.08 | ) | $ | 0.39 | $ | 0 02 | ||||||
| Dividends per share | $ | 0.11 | $ | 0.11 | $ | 0.22 | $ | 0.22 | |||||||
| Ottawa Bancorp, Inc. & Subsidiary | ||||||||||||
| Selected Financial Data and Ratios | ||||||||||||
| (Unaudited) | ||||||||||||
| At or for the | At or for the | |||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Performance Ratios: | ||||||||||||
| Return on average assets (5) | 0.56 | % | (0.23 | ) | % | 0.53 | % | 0.03 | % | |||
| Return on average stockholders' equity (5) | 5.02 | (2.05 | ) | 4.72 | 0.30 | |||||||
| Average stockholders' equity to average assets | 11.24 | 11.40 | 11.24 | 11.44 | ||||||||
| Stockholders' equity to total assets at end of period | 11.37 | 11.72 | 11.37 | 11.72 | ||||||||
| Net interest rate spread (1) (5) | 2.97 | 2.48 | 2.86 | 2.43 | ||||||||
| Net interest margin (2) (5) | 3.14 | 2.66 | 3.02 | 2.61 | ||||||||
| Other expense to average assets | 0.66 | 0.80 | 1.27 | 1.38 | ||||||||
| Efficiency ratio (3) | 77.77 | 111.45 | 79.07 | 99.61 | ||||||||
| Dividend payout ratio | 52.38 | (134.79 | ) | 64.14 | 145.15 | |||||||
| At or for the | At or for the | |||||||
| Six Months Ended | Twelve Months Ended | |||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| 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 | 0.01 | 0.01 | ||||||
| Allowance for credit losses on loans to gross loans outstanding | 1.34 | 1.41 | ||||||
| Non-performing loans to gross loans (6) | 1.23 | 1.58 | ||||||
| Non-performing assets to total assets (6) | 1.08 | 1.37 | ||||||
| Other Data: | ||||||||
| Book Value per common share | ||||||||
| Tangible Book Value per common share (7) | ||||||||
| 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
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