Ottawa Bancorp, Inc. Announces Fourth Quarter and Fiscal 2025 Annual Results and 2026 Annual Meeting Date

Rhea-AI Summary

Ottawa Bancorp (OTCWX: OTTW) reported net income of $0.3M for Q4 2025 and $1.7M for fiscal 2025, with EPS of $0.14 (Q4) and $0.71 (FY). Loan portfolio grew to $305.8M, non-performing loans fell to $1.2M (0.38%), and the company completed share repurchases totaling 1,202,370 shares through 2025. The board set the 2026 annual meeting for May 20, 2026.

Positive

• FY2025 net income of $1.7M (vs $0.8M in 2024)
• Net interest income increased to $10.3M in 2025
• Net interest margin rose 14.5% during 2025

Negative

• Q4 2025 net income declined to $0.3M from $0.5M
• Q4 2025 EPS fell to $0.14 from $0.21 prior year
• Provision for credit losses of $120K in Q4 2025 (vs recovery prior year)

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Data tracked by StockTitan Argus on the day of publication.

OTTAWA, Ill., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Ottawa Bancorp, Inc. (the “Company”) (OTCQX: OTTW), the holding company for OSB Community Bank (the “Bank”), announced net income of $0.3 million, or $0.14 per basic and diluted common share, for the three months ended December 31, 2025, compared to net income of $0.5 million, or $0.21 per basic and diluted common share, for the three months ended December 31, 2024. For the twelve months ended December 31, 2025, the Company announced net income of $1.7 million, or $0.71 per basic and diluted common share, compared to net income of $0.8 million, or $0.31 per basic and diluted common share for the twelve months ended December 31, 2024. The loan portfolio, net of allowance, increased to $305.8 million as of December 31, 2025 from $301.7 million as of December 31, 2024 as originations exceeded payments and payoffs. Non-performing loans decreased to $1.2 million at December 31, 2025 from $4.8 million at December 31, 2024. This was due to a large payment on a commercial relationship which was placed on non-performing status during the third quarter of 2023. Thus, the ratio of non-performing loans to gross loans decreased from 1.58% at December 31, 2024 to 0.38% at December 31, 2025.

As previously announced, the Company completed its seventh stock repurchase program, which was approved on April 24, 2025, during the quarter ended September 30, 2025. The Company repurchased a total of 120,996 shares of its common stock under the stock repurchase program at an average price of $15.01 per share. Through December 31, 2025, the Company repurchased a total of 1,202,370 shares of its common stock under all of its stock repurchase programs at an average price of $13.68 per share.

Craig M. Hepner, President and Chief Executive Officer said, “While fourth-quarter earnings were below the prior year period due to higher operating expenses, higher loan loss provision and lower other income, our core margin components continued to strengthen as our yield on earning-assets increased while our average cost of funds continued to decline during the quarter. We saw our net interest margin increase by 14.5% during the year reflecting our disciplined balance sheet management strategies and a focused effort to reduce our reliance on more costly wholesale funding sources.”

Mr. Hepner went on to say, “Although loan origination activity remained muted during the year, especially in the residential lending area as mortgage interest rates remained elevated and housing inventory levels in our primary markets remained relatively low, we did see meaningful increases in higher yielding commercial and commercial real estate loans during the year, and we are optimistic that this trend will continue as we progress through 2026. Our credit quality has remained consistently strong as a result of our sound loan underwriting practices, and it improved further during the fourth quarter as we were able to resolve a significant portion of a substandard commercial credit. In addition, we completed a number of initiatives throughout the year designed to improve operating efficiencies and increase non-interest income going forward.”  

Mr. Hepner concluded by saying, “As always, our Board remains committed to improving performance and deploying sound capital management strategies designed to enhance shareholder value. We thank our shareholders for their continued investment in and support of the Company, and we look forward to continuing to serve the financial needs of our customers and communities in 2026.”

Comparison of Results of Operations for the Three Months Ended December 31, 2025 and December 31, 2024

Net income for the three months ended December 31, 2025 was $0.3 million compared to $0.5 million for the three months ended December 31, 2024. Total interest and dividend income was $4.6 million for the three months ended December 31, 2025 compared to $4.3 million for the three months ended December 31, 2024 due to an increase in the average yield on interest-earning assets. The yield on interest-earning assets increased by 0.10% to 5.25%. Interest expense decreased to $1.8 million for the three months ended December 31, 2025 from $1.9 million for the three months ended December 31, 2024, as our average cost of funds decreased to 2.29% from 2.42%. Net interest income after provision for credit losses increased by $0.1 million to $2.6 million for the three months ended December 31, 2025 as compared to $2.5 million for the three months ended December 31, 2024. Total other income was $0.3 million for the three months ended December 31, 2025 compared to $0.4 million for the three months ended December 31, 2024. Total other expenses were $2.4 million for the three months ended December 31, 2025 compared to $2.2 million for the three months ended December 31, 2024. An increase in salaries and employee benefits expense accounted for most of this increase.

The Company recorded a provision for credit losses of approximately $120 thousand for the three months ended December 31, 2025 compared to a recovery of approximately $64 thousand for the three months ended December 31, 2024. The allowance for credit losses (“ACL”) on loans was $4.2 million, or 1.35% of total gross loans, at December 31, 2025 compared to $4.3 million, or 1.41% of gross loans, at December 31, 2024. Net recoveries during the fourth quarter of 2025 were approximately $1 thousand compared to net recoveries of $40 thousand during the fourth quarter of 2024. The current period adjustment to the ACL is the result of the quarterly calculation of Current Expected Credit Losses (CECL). The required reserves on non-performing loans as of December 31, 2025 decreased by approximately $226 thousand compared to the required reserves as of December 31, 2024.

The Company recorded income tax expense of $0.2 million for the three-month period ended December 31, 2025 as compared to income tax expense of $0.2 million for the three months ended December 31, 2024.  

Comparison of Results of Operations for the Twelve Months Ended December 31, 2025 and December 31, 2024

Net income was $1.7 million for the twelve months ended December 31, 2025 compared to $0.8 million for the twelve months ended December 31, 2024. Total interest and dividend income was $17.3 million for the twelve months ended December 31, 2025 compared to $16.2 million for the twelve months ended December 31, 2024 as the average yield on interest-earning assets improved to 5.12% from 4.87%. Interest expense for the twelve months ended December 31, 2025 was $0.3 million lower as a result of the reduction in short-term interest rates that began in late 2024 and a reduction in our higher-cost wholesale funding. This has resulted in a decrease in our average cost of funds from 2.36% to 2.22%. Due to the increase in yield on earning assets and lower interest expense, net interest income for the twelve months ended December 31, 2025 increased to $10.3 million as compared to $8.9 million for the twelve months ended December 31, 2024. Total other income was $1.2 million for both the twelve months ended December 31, 2025 and the twelve months ended December 31, 2024. Total other expenses were $0.1 million lower, decreasing to $9.1 million for the twelve months ended December 31, 2025 as compared to $9.2 million for the twelve months ended December 31, 2024.

The Company recorded a recovery of about $44 thousand for the twelve month period ended December 31, 2025 to decrease the ACL position. This compares to a recovery of about $150 thousand for the twelve month period ended December 31, 2024.  Net charge-offs during the twelve months ended December 31, 2025 were approximately $38 thousand compared to net recoveries of approximately $40 thousand during the twelve months ended December 31, 2024.  The current period adjustment to the ACL is the result of the quarterly calculation of CECL.

We recorded an income tax expense of approximately $0.8 million for the twelve months ended December 31, 2025 compared to an income tax expense of $0.3 million for the twelve months ended December 31, 2024. This increase is due primarily to higher pre-tax earnings in 2025 as compared to 2024.

Comparison of Financial Condition at December 31, 2025 and December 31, 2024

Total consolidated assets as of December 31, 2025 were $362.6 million, an increase of $8.9 million, or 2.5%, from $353.7 million at December 31, 2024.  The increase was due primarily to an increase of $7.4 million in cash and cash equivalents, a $4.0 million increase in loans, net of allowance, and an increase of $1.0 million in other assets. These increases were partially offset by a decrease of $1.2 million in federal funds sold, a decrease of $0.2 million in loans held for sale, a $0.8 million decrease in securities available for sale, a $0.1 million decrease in premises and equipment, net, a decrease of $0.4 million in deferred tax assets and a decrease in accrued interest receivable of $0.7 million

Cash and cash equivalents increased $7.4 million, or 59.1%, to $19.9 million at December 31, 2025 from $12.5 million at December 31, 2024. The increase in cash and cash equivalents was primarily the result of cash provided by operating activities of $2.1 million and cash provided by financing activities of $6.1 million exceeding cash used in investing activities of $0.8 million.

Securities available for sale decreased $0.8 million, or 4.9%, to $16.0 million at December 31, 2025 from $16.8 million at December 31, 2024 as payments, calls and maturities during the period exceeded purchases and market value fluctuations.

Net loans increased $4.0 million, or 1.3%, to $305.8 million at December 31, 2025 compared to $301.7 million at December 31, 2024 primarily due to an increase of $10.2 million in non-residential real estate loans, and an increase of $6.0 million in commercial loans. These increases were partially offset by a decrease of $6.2 million in one-to-four family residential loans, a decrease of $4.5 million in multi-family residential loans and a decrease of $1.6 million in consumer direct loans. The ACL on loans decreased by $0.1 million at December 31, 2025.     

Total deposits increased $15.4 million, or 5.4%, to $298.2 million at December 31, 2025 from $282.9 million at December 31, 2024. During the twelve months ended December 31, 2025 certificate of deposit accounts increased by $9.5 million, interest bearing DDA accounts increased by $4.6 million, non-interest bearing DDA accounts increased by $0.5 million and money market accounts increased $1.6 million. Partially offsetting these increases were decreases in savings accounts of $0.8 million.

FHLB advances decreased $6.4 million, or 28.7%, to $15.9 million at December 31, 2025 compared to $22.3 million at December 31, 2024.

Stockholders’ equity decreased to $39.6 million at December 31, 2025 as compared to $40.2 million at December 31, 2024. The decrease reflects $1.8 million used to repurchase and retire 120,996 outstanding shares of Company common stock and $1.0 million in cash dividends. Net income was $1.7 million for the twelve months ended December 31, 2025. In addition, there was a $0.9 million increase in other comprehensive income due to an increase in fair value of securities available for sale during the year.

Date of 2026 Annual Meeting of Shareholders

The Company also announced today that the Company’s annual meeting of shareholders will be held on Wednesday, May 20, 2026.

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
December 31, 2025 and December 31, 2024
(Unaudited)
	December 31,				December 31,
	2025				2024
Assets
Cash and due from banks	$	13,198,098			$	9,863,824
Interest bearing deposits		6,719,709				2,651,481
Total cash and cash equivalents		19,917,807				12,515,305
Federal funds sold		3,259,000				4,493,000
Securities available for sale, at fair value		16,002,114				16,821,297
Loans, net of allowance for credit losses of $4,190,141 and $4,276,409 at December 31, 2025 and December 31, 2024, respectively		305,758,205				301,741,977
Loans held for sale		-				232,000
Premises and equipment, net		5,887,527				6,005,515
Accrued interest receivable		1,413,549				2,108,565
Deferred tax assets, net		2,133,620				2,553,346
Cash value of life insurance		528,464				528,129
Goodwill		649,869				649,869
Other assets		7,041,998				6,002,358
Total assets	$	362,592,153			$	353,651,361
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing	$	23,108,846			$	22,663,274
Interest bearing		275,044,752				260,276,358
Total deposits		298,153,598				282,939,632
Accrued interest payable		545,766				853,122
FHLB advances		15,860,000				22,250,000
Long term debt		1,238,661				1,380,988
Allowance for credit losses on off-balance sheet credit exposures		83,629				79,199
Other liabilities		5,007,164				4,365,113
Total liabilities		320,888,818				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; 2,292,784 and 2,419,911 shares issued at December 31, 2025 and December 31, 2024, respectively		22,928				24,199
Additional paid-in-capital		21,060,890				22,898,558
Retained earnings		22,166,578				21,503,222
Unallocated ESOP shares		(162,974	)			(358,737	)
Unallocated management recognition plan shares		(46,375	)			(70,193	)
Accumulated other comprehensive loss		(1,337,712	)			(2,213,742	)
		41,703,335				41,783,307
Less:
ESOP Owned Shares		(2,101,581	)			(1,583,522	)
Total stockholders' equity		39,601,754				40,199,785
Total liabilities and stockholders' equity	$	362,592,153			$	353,651,361

Ottawa Bancorp, Inc. & Subsidiary
Consolidated Statements of Operations
Three and Twelve Months Ended December 31, 2025 and 2024
(Unaudited)
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2025				2024				2025				2024
Interest and dividend income:
Interest and fees on loans	$	4,132,591			$	4,001,163			$	15,880,231			$	15,222,823
Securities:
Residential mortgage-backed and related securities		158,198				108,121				461,531				372,829
State and municipal securities		21,895				17,580				90,775				73,086
Dividends on non-marketable equity securities		37,322				36,900				129,384				131,615
Interest-bearing deposits		202,286				128,745				742,003				414,524
Total interest and dividend income		4,552,292				4,292,509				17,303,924				16,214,877
Interest expense:
Deposits		1,701,778				1,672,535				6,297,496				6,424,177
Borrowings		147,516				206,874				674,030				858,772
Total interest expense		1,849,294				1,879,409				6,971,526				7,282,949
Net interest income		2,702,998				2,413,100				10,332,398				8,931,928
Provision for (recovery of) credit losses - loans		120,100				(66,414	)			(48,462	)			(134,826	)
Provision for (recovery of) credit losses – off-balance sheet credit exposures		-				1,942				4,430				(14,937	)
Net interest income after provision for (recovery of) credit losses		2,582,898				2,477,572				10,376,430				9,081,691
Other income:
Gain on sale of loans		31,508				57,910				167,079				184,652
Loan origination and servicing income		127,430				159,383				565,352				596,315
Net origination (amortization) of mortgage servicing rights		(3,824	)			52,774				(65,067	)			(87,302	)
Customer service fees		129,131				117,823				478,097				467,832
Increase in cash surrender value of life insurance		28				11,671				335				51,159
Other		6,537				-				28,111				-
Total other income		290,810				399,561				1,173,907				1,212,656
Other expenses:
Salaries and employee benefits		1,403,314				1,189,539				5,212,670				4,728,765
Directors’ fees		39,000				45,000				174,000				175,000
Occupancy		160,213				156,952				639,214				622,292
Deposit insurance premium		38,795				48,213				156,295				160,317
Legal and professional services		101,820				87,882				381,120				391,989
Data processing		281,903				310,084				1,176,614				1,213,852
Loss on sale of securities		-				-				-				600,408
Loan expense		64,223				72,208				276,086				305,919
Other		311,243				289,996				1,100,484				1,020,670
Total other expenses		2,400,511				2,199,874				9,116,483				9,219,212
Income before income tax		473,197				677,259				2,433,854				1,075,135
Income tax expense		159,491				181,232				753,084				317,654
Net income	$	313,706			$	496,027			$	1,680,770			$	757,481
Basic earnings per share	$	0.14			$	0.21			$	0.71			$	0.31
Diluted earnings per share	$	0.14			$	0.21			$	0.71			$	0.31
Dividends per share	$	0.11			$	0.11			$	0.43			$	0.44

Ottawa Bancorp, Inc. & Subsidiary
Selected Financial Data and Ratios
(Unaudited)
		At or for the				At or for the
		Three Months Ended				Twelve Months Ended
		December 31,				December 31,
		2025		2024		2025		2024
Performance Ratios:
Return on average assets (5)		0.34	%	0.56	%	0.47	%	0.21	%
Return on average stockholders' equity (5)		3.18		4.88		4.22		1.85
Average stockholders' equity to average assets		10.83		11.47		11.18		11.57
Stockholders' equity to total assets at end of period		11.07		11.37		11.07		11.37
Net interest rate spread (1) (5)		2.96		2.72		2.90		2.52
Net interest margin (2) (5)		3.14		2.90		3.08		2.69
Other expense to average assets		0.66		0.62		2.56		2.61
Efficiency ratio (3)		80.19		78.21		79.23		90.88
Dividend payout ratio		78.85		52.38		60.80		137.08

		At or for the			At or for the
		Twelve Months Ended			Twelve Months Ended
		December 31,			December 31,
		2025			2024
Regulatory Capital Ratios (4):
Total risk-based capital (to risk-weighted assets)			16.78	%		18.17	%
Tier 1 core capital (to risk-weighted assets)			15.52			16.92
Common equity Tier 1 (to risk-weighted assets)			15.52			16.92
Tier 1 leverage (to adjusted total assets)			11.49			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			1.35			1.41
Non-performing loans to gross loans (6)			0.38			1.58
Non-performing assets to total assets (6)			0.33			1.37
Other Data:
Book Value per common share		$	17.27		$	16.61
Tangible Book Value per common share (7)		$	16.99		$	16.34
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 were Ottawa Bancorp (OTTW) earnings for fiscal 2025 and Q4 2025?

Ottawa Bancorp reported $1.7 million net income for fiscal 2025 and $0.3 million for Q4 2025. According to the company, FY EPS was $0.71 and Q4 EPS was $0.14, with improved net interest income year-over-year.

How did Ottawa Bancorp (OTTW) loan portfolio and credit quality change in 2025?

The loan portfolio grew to $305.8 million and non-performing loans fell to $1.2 million. According to the company, NPLs declined to 0.38% of gross loans after resolving a significant substandard commercial credit.

What did Ottawa Bancorp (OTTW) disclose about its buyback activity through 2025?

The company repurchased 1,202,370 shares under all programs through December 31, 2025 at an average price of $13.68. According to the company, the seventh repurchase completed during 2025 totaled 120,996 shares at an average $15.01.

When is Ottawa Bancorp's (OTTW) 2026 annual meeting of shareholders?

The annual meeting is scheduled for Wednesday, May 20, 2026. According to the company, shareholders can expect standard meeting procedures and related shareholder communications ahead of the meeting date.