Ottawa Bancorp, Inc. (the “Company”) (OTCQX: OTTW), the holding
company for Ottawa Savings Bank, FSB (the “Bank”), announced net
income of $0.6 million, or $0.20 per basic and diluted common share
for the three months ended March 31, 2021, compared to net income
of $0.1 million, or $0.029 per basic and diluted common share for
the three months ended March 31, 2020. During the first quarter of
2021, the Company experienced an increase in loan originations
which drove growth in the loan portfolio. The loan portfolio, net
of allowance, increased to $270.8 million as of March 31, 2021 from
$255.1 million as of December 31, 2020. Non-performing loans
decreased slightly from $1.9 million at December 31, 2020 to $1.8
million at March 31, 2021, which caused the ratio of non-performing
loans to gross loans to decrease from 0.62% at December 31, 2020 to
0.57% at March 31, 2021. Additionally, through March 31, 2021, the
Company has repurchased a total of 576,585 shares of its common
stock at an average price of $12.99 per share as part of the four
stock repurchase programs approved by the Board since the Company’s
second step conversion closed in 2016.
“2021 marks the 150th year of operation for
Ottawa Savings Bank, and the year is off to a very solid start,”
said Craig Hepner, President and Chief Executive Officer of the
Company. “We continued to experience extremely solid mortgage loan
origination volume during the first quarter as interest rates
remained at very favorable levels. This resulted in strong demand
for refinance and purchase money mortgage loans during the quarter.
As economic activity within our primary markets continued to
rebound, overall loan volume was strong, resulting in a 6.2%
increase in net loans and a 5.1% increase in total assets from the
December 31, 2020 levels. Net earnings for the first quarter were
solid, having benefitted from the strong loan origination volume
and a continued pull-back in our cost of funds.”
Mr. Hepner went on to say further, “The support
of our customers and the communities in which we operate continues
to be a top priority for the Company as we all work together to
navigate through the challenges brought about by the COVID-19
pandemic. We are pleased to continue to serve as a strong source of
liquidity for our shareholders having returned $1 million in the
form of dividends during the first quarter along with continuing
our stock buyback program. We are encouraged by the economic
recovery which has started to gain traction, and we are cautiously
optimistic that conditions will continue to rebound in the coming
months.”
Comparison of Results of Operations for the Three Months
Ended March 31, 2021 and March 31, 2020
Net income for the three months ended March 31,
2021 was $0.6 million compared to net income of $0.1 million for
the three months ended March 31, 2020. Total interest and dividend
income decreased slightly to $2.9 million for the three months
ended March 31, 2021 from $3.1 million for the three months ended
March 31, 2020. Interest expense was $0.3 million lower during the
three months ended March 31, 2021. In addition. a provision of $50
thousand was taken during the three months ended March 31, 2021 as
compared to $450,000 for the three months ended March 31, 2020.
During 2020, with the anticipated impact of the COVID-19 pandemic
on the local and national economies, qualitative factors were
adjusted negatively which led to an increase in the provision
level. In 2021, with the economy improving, the qualitative factors
were adjusted slightly more favorably which led to a more
normalized level of provision for the period. Thus, net interest
income after provision for loan losses increased by $0.5 million to
$2.4 million for the three months ended March 31, 2021 from $1.9
million for the three months ended March 31, 2020. Total other
income increased by $0.2 million to $0.6 million due to the strong
loan origination levels which continued from 2020. Total other
expenses rose slightly by $0.1 million this quarter as compared to
the first quarter of 2020. Net income was $0.5 million higher for
the three months ended March 31, 2021 as it rose to $0.6 million as
compared to the three months ended March 31, 2020 when it was $0.1
million.
Net interest income increased by $0.2 million,
or 5.6%, to $2.5 million for the three months ended March 31, 2021,
from $2.3 million for the three months ended March 31, 2020.
Interest and dividend income was $3.0 million which was lower by
$0.1 million for the three months ended March 31, 2021 as compared
to $3.1 million for the three months ended March 31, 2020. Although
there was an increase in the average balances of interest-earning
assets of $6.1 million, interest and dividend income decreased by
$0.2 million as the yield on earning assets decreased from 4.37%
for the three months ended March 31, 2020 to 4.01% for the three
months ended March 31, 2021. Interest expense decreased $0.3
million as the average cost of funds decreased 56 basis points to
0.78% which led to interest expense declining from $0.8 million for
the three months ended March 31, 2020 to $0.5 million for the three
months ended March 31, 2021. Thus, net interest income increased to
$2.5 million for the three months ended March 31, 2021 from $2.3
million for the three months ended March 31, 2020. Overall, the net
interest margin increased 11 basis points during the three months
ended March 31, 2021 to 3.37% from 3.26% for the three months ended
March 31, 2020.
The Company recorded a provision for loan losses
of $50 thousand for the three months ended March 31, 2021 as
compared to $0.4 million for the three months ended March 31, 2020.
The allowance for loan losses was $3.5 million, or 1.31% of total
gross loans at March 31, 2021 compared to $3.4 million, or 1.35% of
gross loans at March 31, 2020. Net charge-offs during the first
quarter of 2021 were $0 compared to $30 thousand during the first
quarter of 2020. General reserves were higher at March 31, 2021,
when compared to March 31, 2020, primarily due to the balances in
most loan categories increasing during the twelve months ended
March 31, 2021. Non-performing loans decreased and the necessary
reserves on non-performing loans as of March 31, 2021 were
comparable to the reserves as of December 31, 2020.
Total other expense was $2.3 million for the
three months ended March 31, 2021 as compared to $2.2 million for
the three months ended March 31, 2020. There was an
increase in the salaries and employee benefits category, an
increase in deposit insurance premium, and an increase in loan
expense. These increases were offset by decreases in legal and
professional services, occupancy, and other expenses.
The Company recorded income tax expense of
approximately $206 thousand for the three month periods ended March
31, 2021 as compared to $15 thousand for the three months ended
March 31, 2020 due to lower pre-tax earnings in 2020.
Comparison of Financial Condition at
March 31, 2021 and December 31, 2020
Total consolidated assets as of March 31, 2021
were $323.4 million, an increase of $15.8 million, or 5.1%,
from $307.6 million at December 31, 2020. The increase
was primarily due to an increase of $9.7 million in federal funds
sold, a $15.7 million increase in the net loan portfolio and a $0.2
million increase in other assets. These increases were partially
offset by a decrease in cash and cash equivalents of $6.5 million,
a decrease in securities available for sale of $1.4 million, a
decrease of $1.7 million in time deposits and a decrease of almost
$0.2 million in accrued interest receivable.
Cash and cash equivalents decreased $6.5
million, or 61.9%, to $3.9 million at March 31, 2021 from $10.4
million at December 31, 2020. The decrease in cash and cash
equivalents was primarily the result of cash used in investing
activities of $22.6 million exceeding cash provided by operating
activities of $1.4 million and cash provided by financing
activities of $14.7 million.
Securities available for sale decreased $1.4
million, or 7.5%, to $17.3 million at March 31, 2021 from $18.7
million at December 31, 2020, as paydowns, calls, and maturities
exceeded new securities purchases.
Net loans increased $15.7 million, or 6.2%, to
$270.8 million at March 31, 2021 compared to $255.1 million at
December 31, 2020 primarily as a result of a $10.4 million increase
in one-to-four family loans, an increase of $1.1 million in
multi-family loans, a $4.3 million increase in non-residential real
estate loans and a $1.9 million increase in commercial loans. These
increases were offset by decreases of $0.8 million in consumer
direct loans and $1.2 million in purchased auto loans.
Total deposits increased $16.8 million, or 7.1%,
to $252.9 million at March 31, 2021 from $236.1 million at December
31, 2020. For the three months ended March 31, 2021, savings
accounts increased by $2.5 million, non-interest bearing checking
accounts increased $3.3 million, interest bearing checking accounts
increased $2.5 million, money market accounts increased $0.8
million and certificates of deposit increased by $7.7 million as
compared to December 31, 2020.
FHLB advances decreased $1.0 million, or 5.7% to
$16.5 million at March 31, 2021 compared to $17.5 million at
December 31, 2020. The decrease was related to the maturity and
repayment of a borrowing during the quarter.
Stockholders’ equity decreased $1.0 million, or
2.2% to $47.2 million at March 31, 2021 from $48.2 million at
December 31, 2020. The decrease reflects $0.2 million used to
repurchase and cancel 13,100 outstanding shares of Company common
stock, a decrease of $0.1 million in other comprehensive income due
to a decrease in fair value of securities available for sale and
$1.0 million in cash dividends. Additionally, the ESOP owned shares
increased by $0.4 million causing a decrease to equity. The
decreases were partially offset by net income of $0.6 million for
the three months ended March 31, 2021 and proceeds from stock
options exercised, equity incentive plan shares issued and the
allocation of ESOP shares totaling $0.1 million.
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 the rules and regulations of the Securities and Exchange
Commission.
Contact:Craig HepnerPresident and Chief
Executive Officer(815) 366-5437
Ottawa Bancorp, Inc. & Subsidiary |
Consolidated Balance Sheets |
March 31, 2021 and December 31, 2020 |
(Unaudited) |
|
March 31, |
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
Assets |
|
|
|
Cash
and due from banks |
$ |
3,383,329 |
|
|
$ |
4,793,872 |
|
Interest bearing deposits |
|
564,450 |
|
|
|
5,581,139 |
|
Total cash and cash equivalents |
|
3,947,779 |
|
|
|
10,375,011 |
|
Time
deposits |
|
1,494,000 |
|
|
|
3,232,500 |
|
Federal funds sold |
|
13,174,000 |
|
|
|
3,486,000 |
|
Securities available for sale |
|
17,307,343 |
|
|
|
18,711,631 |
|
Loans, net of allowance for loan losses of $3,529,012 and
$3,497,150 |
|
|
|
at March 31, 2021 and December 31, 2020, respectively |
|
270,803,316 |
|
|
|
255,103,054 |
|
Premises and equipment, net |
|
6,294,191 |
|
|
|
6,312,256 |
|
Accrued interest receivable |
|
827,220 |
|
|
|
972,602 |
|
Foreclosed Real Estate |
|
77,265 |
|
|
|
107,100 |
|
Deferred tax assets |
|
1,677,413 |
|
|
|
1,666,339 |
|
Cash
value of life insurance |
|
2,615,547 |
|
|
|
2,603,046 |
|
Goodwill |
|
649,869 |
|
|
|
649,869 |
|
Core
deposit intangible |
|
122,495 |
|
|
|
131,996 |
|
Other
assets |
|
4,428,675 |
|
|
|
4,234,003 |
|
Total assets |
$ |
323,419,113 |
|
|
$ |
307,585,407 |
|
Liabilities and Stockholders' Equity |
|
|
|
Liabilities |
|
|
|
Deposits: |
|
|
|
Non-interest bearing |
$ |
21,588,484 |
|
|
$ |
18,285,211 |
|
Interest bearing |
|
231,345,946 |
|
|
|
217,774,806 |
|
Total deposits |
|
252,934,430 |
|
|
|
236,060,017 |
|
Accrued interest payable |
|
71,532 |
|
|
|
54,851 |
|
FHLB advances |
|
16,548,752 |
|
|
|
17,548,560 |
|
Other liabilities |
|
5,278,003 |
|
|
|
4,731,352 |
|
Total liabilities |
|
274,832,717 |
|
|
|
258,394,780 |
|
Commitments and contingencies |
|
|
|
ESOP
Repurchase Obligation |
|
1,415,674 |
|
|
|
957,167 |
|
Stockholders' Equity |
|
|
|
Common stock, $.01 par value, 12,000,000 shares authorized;
2,944,465 and 2,949,324 |
|
|
|
shares issued at March 31 2021 and December 31, 2020,
respectively |
|
29,445 |
|
|
|
29,491 |
|
Additional paid-in-capital |
|
30,320,124 |
|
|
|
30,415,091 |
|
Retained earnings |
|
19,043,944 |
|
|
|
19,457,092 |
|
Unallocated ESOP shares |
|
(1,101,057 |
) |
|
|
(1,132,842 |
) |
Unallocated management recognition plan shares |
|
(122,107 |
) |
|
|
(62,070 |
) |
Accumulated other comprehensive income |
|
416,047 |
|
|
|
483,865 |
|
|
|
48,586,396 |
|
|
|
49,190,627 |
|
Less: |
|
|
|
ESOP Owned Shares |
|
(1,415,674 |
) |
|
|
(957,167 |
) |
Total stockholders' equity |
|
47,170,722 |
|
|
|
48,233,460 |
|
Total liabilities and stockholders' equity |
$ |
323,419,113 |
|
|
$ |
307,585,407 |
|
Ottawa Bancorp, Inc. & Subsidiary |
Consolidated Statements of Operations |
Three Months Ended March 31, 2021 and 2020 |
(Unaudited) |
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
Interest and dividend income: |
|
|
|
|
Interest and fees on loans |
|
$ |
2,795,387 |
|
|
$ |
2,909,081 |
|
Securities: |
|
|
|
|
Residential mortgage-backed and related securities |
|
|
41,442 |
|
|
|
67,230 |
|
State and municipal securities |
|
|
67,924 |
|
|
|
95,944 |
|
Dividends on non-marketable equity securities |
|
|
8,671 |
|
|
|
6,590 |
|
Interest-bearing deposits |
|
|
6,172 |
|
|
|
40,148 |
|
Total interest and dividend income |
|
|
2,919,596 |
|
|
|
3,118,993 |
|
Interest expense: |
|
|
|
|
Deposits |
|
|
376,138 |
|
|
|
730,819 |
|
Borrowings |
|
|
86,522 |
|
|
|
61,896 |
|
Total interest expense |
|
|
462,660 |
|
|
|
792,715 |
|
Net interest income |
|
|
2,456,936 |
|
|
|
2,326,278 |
|
Provision for loan losses |
|
|
50,000 |
|
|
|
450,000 |
|
Net interest income after provision for loan
losses |
|
|
2,406,936 |
|
|
|
1,876,278 |
|
Other
income: |
|
|
|
|
Gain on sale of loans |
|
|
173,812 |
|
|
|
107,067 |
|
Gain on sale of securities, net |
|
|
- |
|
|
|
857 |
|
Loan origination and servicing income |
|
|
305,606 |
|
|
|
114,958 |
|
Origination of mortgage servicing rights, net of amortization |
|
|
9,616 |
|
|
|
(10,443 |
) |
Customer service fees |
|
|
90,334 |
|
|
|
106,840 |
|
Increase in cash surrender value of life insurance |
|
|
12,501 |
|
|
|
12,699 |
|
Gain on sale of repossessed assets, net |
|
|
956 |
|
|
|
16,031 |
|
Other |
|
|
25,021 |
|
|
|
37,673 |
|
Total other income |
|
|
617,846 |
|
|
|
385,682 |
|
Other
expenses: |
|
|
|
|
Salaries and employee benefits |
|
|
1,348,392 |
|
|
|
1,264,646 |
|
Directors fees |
|
|
40,000 |
|
|
|
43,000 |
|
Occupancy |
|
|
147,714 |
|
|
|
178,525 |
|
Deposit insurance premium |
|
|
18,178 |
|
|
|
- |
|
Legal and professional services |
|
|
79,209 |
|
|
|
104,622 |
|
Data processing |
|
|
224,296 |
|
|
|
223,273 |
|
Loan expense |
|
|
187,718 |
|
|
|
134,350 |
|
Valuation adjustments and expenses on foreclosed real estate |
|
|
2,002 |
|
|
|
559 |
|
Other |
|
|
204,013 |
|
|
|
211,665 |
|
Total other expenses |
|
|
2,251,522 |
|
|
|
2,160,640 |
|
Income before income tax expense |
|
|
773,260 |
|
|
|
101,320 |
|
Income tax expense |
|
|
205,574 |
|
|
|
15,364 |
|
Net income |
|
$ |
567,686 |
|
|
$ |
85,956 |
|
Basic earnings per share |
|
$ |
0.200 |
|
|
$ |
0.029 |
|
Diluted earnings per share |
|
$ |
0.200 |
|
|
$ |
0.029 |
|
Dividends per share |
|
$ |
0.345 |
|
|
$ |
0.418 |
|
Ottawa Bancorp, Inc. & Subsidiary |
|
Selected Financial Data and Ratios |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the |
|
|
Three Months Ended |
|
|
March 31, |
|
|
2021 |
|
2020 |
Performance Ratios: |
|
|
|
|
|
|
|
Return on average assets (5) |
|
|
0.73 |
% |
|
|
0.11 |
% |
Return on average stockholders' equity (5) |
|
|
4.56 |
|
|
|
0.61 |
|
Average stockholders' equity to average assets |
|
|
15.97 |
|
|
|
18.67 |
|
Stockholders' equity to total assets at end of period |
|
|
14.72 |
|
|
|
15.87 |
|
Book Value per common
share |
|
$ |
16.02 |
|
|
$ |
16.33 |
|
Tangible Book Value per common
share (7) |
|
$ |
15.76 |
|
|
$ |
16.07 |
|
Net
interest rate spread (1) (5) |
|
|
3.22 |
|
|
|
3.03 |
|
Other
expense to average assets |
|
|
0.72 |
|
|
|
0.71 |
|
Efficiency ratio (3) |
|
|
73.20 |
|
|
|
79.68 |
|
Dividend payout ratio |
|
|
172.50 |
|
|
|
1,461.54 |
|
|
At or for the |
|
At or for the |
|
Three Months Ended |
|
Twelve Months Ended |
|
March 31, |
|
December 31, |
|
2021 |
|
2020 |
|
|
|
|
(unaudited) |
|
Regulatory Capital Ratios (4): |
|
|
|
|
|
Total
risk-based capital (to risk-weighted assets) |
20.98 |
% |
|
20.39 |
% |
Tier
1 core capital (to risk-weighted assets) |
19.73 |
|
|
19.14 |
|
Common equity Tier 1 (to risk-weighted assets) |
19.73 |
|
|
19.14 |
|
Tier
1 leverage (to adjusted total assets) |
14.38 |
|
|
14.26 |
|
Asset Quality Ratios: |
|
|
|
|
|
Net
charge-offs to average gross loans outstanding |
0.00 |
|
|
0.18 |
|
Allowance for loan losses to gross loans outstanding |
1.31 |
|
|
1.35 |
|
Non-performing loans to gross loans (6) |
0.57 |
|
|
0.62 |
|
Non-performing assets to total assets (6) |
0.58 |
|
|
0.67 |
|
Other Data: |
|
|
|
|
|
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 Ottawa Savings 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. |
|
|
|
Ottawa Savings Bancorp (NASDAQ:OTTW)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Ottawa Savings Bancorp (NASDAQ:OTTW)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024