OTTAWA, Ill., Oct. 29, 2023 (GLOBE NEWSWIRE) — Ottawa Bancorp, Inc. (the “Company”) (OTCQX: OTTW), the holding company for OSB Community Bank (the “Bank”), announced net income of $0.8 million, or $0.29 per basic and diluted common share for the three months ended September 30, 2023, compared to net income of $0.8 million, or $0.27 per basic and diluted common share, for the three months ended September 30, 2020. For the nine months ended September 30, 2023, the Company announced net income of $2.1 million, or $0.76 per basic and $0.75 per diluted common share, compared to net income of $1.6 million, or $0.55 per basic and diluted common share, for the nine months ended September 30, 2020. During the third quarter of 2023, the Company experienced growth in its deposit portfolio as deposits grew to $273.7 million at September 30, 2023. Loan demand slowed during the quarter which resulted in increase in the securities portfolio, which grew to $29.5 million at September 30, 2023. Total assets increased to $343.2 million at September 30, 2023. The loan portfolio, net of allowance, was $271.9 million at September 30, 2023 compared to $255.1 million at December 31, 2020. Non-performing loans increased to $1.6 million at September 30, 2023 from $1.3 million at December 31, 2020 resulting in the ratio of non-performing loans to gross loans increasing to 0.57% at September 30, 2023 from 0.51% at December 31, 2020. Additionally, through September 30, 2023, the Company has repurchased a total of 628,585 shares of its common stock at an average price of $13.14 per share as part of the four stock repurchase programs approved by the Company’s Board since 2016.
Craig Hepner, President and Chief Executive Officer of the Company, said, “I am very pleased with the Company’s performance in the third quarter. Even though we realized a slight decline in overall loan balances, organic deposit growth remained strong, and we continued to lower our overall cost of funds which in turn resulted in continued growth in net earnings. In addition, we continued to have success with our on-going stock repurchase plan in the third quarter, and we continued to pay a healthy quarterly cash dividend as part of our prudent approach to capital management.”
“As previously disclosed, we completed our conversion from a federal savings bank to an Illinois state-chartered commercial bank during the third quarter, and in conjunction with that conversion, the name of the Bank was changed to OSB Community Bank. We believe that the charter conversion best positions the Bank to compete in the markets we serve and to further execute on our business strategy going forward. We are proud of our Ottawa Savings Bank heritage and look forward to continuing to serve the financial needs of our customers and communities as OSB Community Bank.” said Mr. Hepner.
Comparison of Results of Operations for the Three Months Ended September 30, 2021 and September 30, 2020
Net income for the three months ended September 30, 2023 was $0.8 million compared to net income of $0.8 million for the three months ended September 30, 2020. Total interest and dividend income was $3.2 million for the three months ended September 30, 2023 as compared to $3.1 million for the three months ended September 30, 2020. Interest expense was $0.2 million lower during the three months ended September 30, 2023 than during the corresponding period in 2020. In addition, no provision for loan losses was taken during the three months ended September 30, 2023 as compared to a provision for loan losses of $0.1 million for the three months ended September 30, 2020. As a result of the continuing decline in the consumer and purchased auto loan portfolios, several qualitative factors in the allowance calculation were adjusted positively which led to no provision being taken during the quarter. Net interest income after provision for loan losses was $2.8 million for the three months ended September 30, 2023 as compared to $2.4 million for the three months ended September 30, 2020. Total other income was $0.7 million for the three months ended September 30, 2023 compared to $1.1 million for the three months ended September 30, 2020. Total other expenses remained flat at $2.4 million for the three months ended September 30, 2023 as compared to the three months ended September 30, 2020.
Net interest income (before provision for loan losses) increased by $0.3 million, or 13.8%, to $2.8 million for the three months ended September 30, 2023, compared to $2.5 million for the three months ended September 30, 2020. Interest and dividend income grew by $0.1 million between the periods as a result of an increase in the average balance of interest-earning assets of $30.2 million. The yield on interest-earning assets decreased to 4.00% for the three months ended September 30, 2023 compared to 4.21% for the three months ended September 30, 2020. This decrease was offset by the growth in earning assets. As a result, interest and dividend income increased by $0.1 million. Interest expense fell by $0.2 million as a result of a 41 basis point decline in the cost of funds to .53% for the three months ended September 30, 2023 from 0.94% for the three months ended September 30, 2020. The net interest margin increased by 10 basis points during the three months ended September 30, 2023 to 3.55% from 3.45% during the three months ended September 30, 2020.
The Company recorded no provision for loan losses for the three-month period ended September 30, 2023 as compared to a $0.1 million provision for loan losses for the three months ended September 30, 2020. The allowance for loan and lease losses was $3.6 million, or 1.31% of total gross loans at September 30, 2023 compared to $3.5 million, or 1.34% of gross loans, at September 30, 2020. Net recoveries during the third quarter of 2023 were ($11,838) compared to ($41,587) during the third quarter of 2020. General allocation of reserves were higher at September 30, 2023, when compared to September 30, 2020, primarily due to the balances in most loan categories increasing during the twelve months ended September 30, 2023. With the consumer and purchased auto loan portfolios declining, several qualitative factors for the allowance calculation were adjusted positively which led to no provision being taken in third quarter of 2023. With non-performing loans decreasing to $1.6 million as of September 30, 2023 from $1.8 million as of September 30, 2020, the necessary reserves on non-performing loans as of September 30, 2023 were approximately $43,000 lower than they were as of September 30, 2020 due to the improvement of some credits which necessitated lower or no specific allocation of reserves.
Total other income was $0.7 million for the three months ended September 30, 2023 as compared to $1.1 million for the three months ended September 30, 2020. Mortgage originations for the one-to-four family residential loan category were lower for the three months ended September 30, 2023, thus, the gain on sale of loans decreased by $0.2 million and loan origination and servicing income decreased by $0.1 million. Additionally, origination of mortgage servicing rights, net of amortization, were lower in the current period.
Total other expense was $2.4 million for both the three months ended September 30, 2023 and September 30, 2020. Salaries and employee benefits increased $0.1 million for the three months ended September 30, 2023 due to the higher commissions paid to mortgage loan originators and overtime paid to support staff to process the loan application volume during the period. These increases were partially offset by small decreases in several expense categories.
The Company recorded income tax expense of approximately $0.3 million for both the three-months ended September 30, 2023 and 2020.
Comparison of Results of Operations for the Nine Months Ended September 30, 2023 and September 30, 2020
Net income was $2.1 million for the nine-month period ended September 30, 2023 compared to $1.6 million for the nine-month period ended September 30, 2020 representing an increase of 31.4%.
Net interest income increased by $0.9 million, or 12.3%, to $8.1 million for the nine months ended September 30, 2023, from $7.2 million for the nine months ended September 30, 2020. Interest and dividend income increased $0.1 million, or 1.2%, primarily due to an increase of $14.0 million in average earning assets which increased to $303.7 million from $289.7 million. This increase in interest-earning assets added approximately $0.5 million in revenue from volume which was slightly offset by a 14 basis point reduction in the average yield on assets, which declined to 4.08% for the nine months ended September 30, 2023 compared to 4.22% for the nine months ended September 30, 2020 and resulted in a decline of $0.4 million in interest income due to rate. Interest expense decreased $0.8 million as the average cost of funds decreased by 48 basis points to 0.63% for the nine months ended September 30, 2023 from 1.11% for the nine months ended September 30, 2020. Slightly offsetting this decrease in the cost of funds was an increase of $15.8 million in average interest-bearing liabilities. Overall, interest expense decreased by $0.8 million to $1.2 million for the nine months ended September 30, 2023 as compared to $2.0 million for the nine months ended September 30, 2020. The net interest margin increased by 23 basis points, or 6.5%, during the nine months ended September 30, 2023 to 3.55% from 3.32% for the nine months ended September 30, 2020 as the lower rates had a more positive impact on the cost of interest-bearing liabilities than on the yield on the interest-earning asset portfolio. The volume was also favorable as total interest earning assets increased.
We recorded a provision for loan losses of $0.1 million for the nine-month period ended September 30, 2023 as compared to $0.7 million for the nine-month period ended September 30, 2020. The allowance for loan losses was $3.6 million, or 1.31% of total gross loans at September 30, 2023 compared to $3.5 million, or 1.34% of gross loans, at September 30, 2020. Net recoveries during the first nine months of 2023 were approximately ($10,000) compared to ($0.1 million) during the first nine months of 2020. General allocation of reserves were higher at September 30, 2023 when compared to September 30, 2020, primarily due to the balances in most loan categories increasing during the twelve months ended September 30, 2023. With the consumer and purchased auto loan portfolios declining, several qualitative factors for the allowance calculation were adjusted positively which led to no provision being taken during the third quarter of 2023. With non-performing loans decreasing to $1.6 million as of September 30, 2023 from $1.8 million as of September 30, 2020, the necessary reserves on non-performing loans as of September 30, 2023 were approximately $43,000 lower than they were as of September 30, 2020 due to the improvement of some credits which resulted in lower or no specific allocation of reserves.
Total other income was $2.2 million for the nine months ended September 30, 2023 as compared to $2.6 million for the nine months ended September 30, 2020. Due to decreased levels of originations in the one to four family residential loan category, gain on sale of loans decreased by $0.2 million and loan origination and servicing income remained comparable. There was a slight decrease in various other categories of $0.1 million which added to the decline.
Total other expense increased $0.3 million, or 4.8%, to $7.2 million for the nine months ended September 30, 2023, as compared to $6.9 million for the nine months ended September 30, 2020. The increase was primarily due to increases in salaries and employee benefits of $0.4 million and an increase in data processing costs of $0.1 million. These increases were slightly offset by a decrease of $0.1 million in other expense and a $0.1 million decrease in several other expense categories. The increase related to salaries and employee benefits was due to the commissions paid to loan originators pertaining to the elevated levels of loan originations and overtime for staff to process the loan applications.
We recorded income tax expense of approximately $0.8 million for the nine-month periods ended September 30, 2023 as compared to $0.6 million for the nine-month period ended September 30, 2020.
Comparison of Financial Condition at September 30, 2023 and December 31, 2020
Total consolidated assets as of September 30, 2023 were $343.2 million, an increase of $35.6 million, or 11.6%, from $307.6 million at December 31, 2020. The increase was primarily due to an increase of $12.1 million in federal funds sold, a $16.8 million increase in the net loan portfolio, an increase in securities available for sale of $10.8 million and a $0.7 million increase in other assets. Various other asset categories increased by $0.2 million. These increases were partially offset by a decrease in total cash and cash equivalents of $2.0 million and a decrease in time deposits of $3.0 million.
Cash and cash equivalents decreased $2.0 million, or 19.1%, to $8.4 million at September 30, 2023 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 $37.3 million exceeding cash provided from operating activities of $1.2 million and cash provided by financing activities of $34.8 million.
Securities available for sale increased $10.8 million, or 57.7%, to $29.5 million at September 30, 2023 from $18.7 million at December 31, 2020, as new securities purchases exceeded paydowns, calls and maturities.
Net loans increased $16.8 million, or 6.6%, to $271.9 million at September 30, 2023 compared to $255.1 million at December 31, 2020 primarily as a result of a $16.0 million increase in one-to-four family loans, an increase of $4.1 million in multi-family loans and an increase of $5.1 million in non-residential real estate loans. The increases were offset by a $3.4 million decrease in consumer direct loans, a $1.5 million decrease in commercial loans and a $3.5 million decrease in purchased auto loans. Additionally, the allowance for loan losses grew by $0.2 million.
Total deposits increased $37.6 million, or 15.9%, to $273.7 million at September 30, 2023 from $236.1 million at December 31, 2020. For the nine months ended September 30, 2023, certificates of deposit increased by $8.6 million, savings accounts increased by $2.1 million, non-interest bearing checking accounts increased by $3.6 million, interest-bearing checking accounts increased by $20.5 million and money market accounts increased by $2.8 million as compared to December 31, 2020.
FHLB advances decreased $1.0 million, or 5.8%, to $16.5 million at September 30, 2023 compared to $17.5 million at December 31, 2020.
Stockholders’ equity decreased $0.8 million, or 1.7%, to $47.4 million at September 30, 2023 from $48.2 million at December 31, 2020. The decrease reflects $1.0 million used to repurchase and cancel 68,833 outstanding shares of Company common stock, an increase of $0.5 million related to the cash obligation for ESOP shares, a decrease of $0.1 million in other comprehensive income due to a decrease in fair value of securities available for sale and $1.5 million in cash dividends. The decreases were partially offset by net income of $2.1 million for the nine months ended September 30, 2023 and the proceeds from equity incentive plan shares issued and the allocation of ESOP shares totaling $0.2 million.
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, among other things, 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 under applicable law.
| Ottawa Bancorp, Inc. & Subsidiary | |||||||
| Consolidated Balance Sheets | |||||||
| September 30, 2023 and December 31, 2020 | |||||||
| (Unaudited) | |||||||
| September 30, | December 31, | ||||||
| 2021 | 2020 | ||||||
| Assets | |||||||
| Cash and due from banks | $ | 5,594,003 | $ | 4,793,872 | |||
| Interest bearing deposits | 2,797,761 | 5,581,139 | |||||
| Total cash and cash equivalents | 8,391,764 | 10,375,011 | |||||
| Time deposits | 250,000 | 3,232,500 | |||||
| Federal funds sold | 15,617,000 | 3,486,000 | |||||
| Securities available for sale | 29,499,890 | 18,711,631 | |||||
| Loans, net of allowance for loan losses of $3,613,612 and $3,497,150 | |||||||
| at September 30, 2023 and December 31, 2020, respectively | 271,891,789 | 255,103,054 | |||||
| Premises and equipment, net | 6,371,860 | 6,312,256 | |||||
| Accrued interest receivable | 956,172 | 972,602 | |||||
| Foreclosed Real Estate | 122,265 | 107,100 | |||||
| Deferred tax assets | 1,765,808 | 1,666,339 | |||||
| Cash value of life insurance | 2,638,767 | 2,603,046 | |||||
| Goodwill | 649,869 | 649,869 | |||||
| Core deposit intangible | 103,493 | 131,996 | |||||
| Other assets | 4,967,057 | 4,234,003 | |||||
| Total assets | $ | 343,225,734 | $ | 307,585,407 | |||
|
Liabilities and Stockholders’ Equity |
|||||||
| Liabilities | |||||||
| Deposits: | |||||||
| Non-interest bearing | $ | 21,880,019 | $ | 18,285,211 | |||
| Interest bearing | 251,800,085 | 217,774,806 | |||||
| Total deposits | 273,680,104 | 236,060,017 | |||||
| Accrued interest payable | 47,229 | 54,851 | |||||
| FHLB advances | 16,536,698 | 17,548,560 | |||||
| Other liabilities | 4,106,749 | 4,731,352 | |||||
| Total liabilities | 294,370,780 | 258,394,780 | |||||
| Commitments and contingencies | |||||||
| ESOP Repurchase Obligation | 1,461,946 | 957,167 | |||||
| Stockholders’ Equity | |||||||
| Common stock, $.01 par value, 12,000,000 shares authorized; 2,892,465 and 2,949,324 | |||||||
| shares issued at September 30, 2023 and December 31, 2020, respectively | 28,924 | 29,491 | |||||
| Additional paid-in-capital | 29,584,386 | 30,415,091 | |||||
| Retained earnings | 20,054,787 | 19,457,092 | |||||
| Unallocated ESOP shares | (1,037,487 | ) | (1,132,842 | ) | |||
| Unallocated management recognition plan shares | (106,799 | ) | (62,070 | ) | |||
| Accumulated other comprehensive income | 331,143 | 483,865 | |||||
| 48,854,954 | 49,190,627 | ||||||
| Less: | |||||||
| ESOP Owned Shares | (1,461,946 | ) | (957,167 | ) | |||
| Total stockholders’ equity | 47,393,008 | 48,233,460 | |||||
| Total liabilities and stockholders’ equity | $ | 343,225,734 | $ | 307,585,407 | |||
| Ottawa Bancorp, Inc. & Subsidiary | |||||||||||||
| Consolidated Statements of Operations | |||||||||||||
| Three and Nine Months Ended September 30, 2023 and 2020 | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| Interest and dividend income: | |||||||||||||
| Interest and fees on loans | $ | 3,080,510 | $ | 2,887,455 | $ | 8,927,109 | $ | 8,619,115 | |||||
| Securities: | |||||||||||||
| Residential mortgage-backed and related securities | 54,459 | 55,146 | 135,054 | 183,556 | |||||||||
| State and municipal securities | 53,238 | 92,169 | 188,844 | 282,731 | |||||||||
| Dividends on non-marketable equity securities | 8,332 | 8,216 | 25,472 | 21,505 | |||||||||
| Interest-bearing deposits | 6,132 | 12,902 | 16,812 | 72,343 | |||||||||
| Total interest and dividend income | 3,202,671 | 3,055,888 | 9,293,291 | 9,179,250 | |||||||||
| Interest expense: | |||||||||||||
| Deposits | 290,237 | 476,017 | 992,914 | 1,770,563 | |||||||||
| Borrowings | 64,715 | 77,730 | 208,240 | 205,554 | |||||||||
| Total interest expense | 354,952 | 553,747 | 1,201,154 | 1,976,117 | |||||||||
| Net interest income | 2,847,719 | 2,502,141 | 8,092,137 | 7,203,133 | |||||||||
| Provision for loan losses | – | 80,000 | 125,000 | 660,000 | |||||||||
| Net interest income after provision for loan losses | 2,847,719 | 2,422,141 | 7,967,137 | 6,543,133 | |||||||||
| Other income: | |||||||||||||
| Gain on sale of loans | 260,628 | 471,560 | 779,471 | 1,042,358 | |||||||||
| Gain on sale of securities, net | – | – | – | 857 | |||||||||
| Gain /(Loss) on sale of repossessed assets, net | (2,018 | ) | 4,552 | 4,056 | 20,883 | ||||||||
| Loan origination and servicing income | 295,215 | 390,014 | 859,159 | 942,785 | |||||||||
| Origination of mortgage servicing rights, net of amortization | 28,962 | 66,205 | 90,952 | 140,713 | |||||||||
| Customer service fees | 102,751 | 89,383 | 290,524 | 279,233 | |||||||||
| Increase in cash surrender value of life insurance | 11,328 | 13,054 | 35,721 | 38,656 | |||||||||
| Other | 37,436 | 50,088 | 84,224 | 109,036 | |||||||||
| Total other income | 734,302 | 1,084,856 | 2,144,107 | 2,574,521 | |||||||||
| Other expenses: | |||||||||||||
| Salaries and employee benefits | 1,575,607 | 1,467,248 | 4,485,037 | 4,090,350 | |||||||||
| Directors fees | 35,000 | 30,000 | 113,750 | 120,000 | |||||||||
| Occupancy | 151,921 | 163,754 | 457,616 | 491,671 | |||||||||
| Deposit insurance premium | 18,000 | 16,500 | 54,178 | 33,000 | |||||||||
| Legal and professional services | 91,755 | 121,289 | 263,431 | 327,155 | |||||||||
| Data processing | 271,808 | 232,240 | 780,339 | 706,982 | |||||||||
| Loan expense | 113,328 | 164,359 | 408,721 | 420,811 | |||||||||
| Valuation adjustments and expenses on foreclosed real estate | 6,989 | 555 | 16,703 | 1,503 | |||||||||
| Other | 183,503 | 221,501 | 600,469 | 668,012 | |||||||||
| Total other expenses | 2,447,911 | 2,417,446 | 7,180,244 | 6,859,484 | |||||||||
| Income before income tax expense | 1,134,110 | 1,089,551 | 2,931,000 | 2,258,170 | |||||||||
| Income tax expense | 306,645 | 294,135 | 787,236 | 626,533 | |||||||||
| Net income | $ | 827,465 | $ | 795,416 | $ | 2,143,764 | $ | 1,631,637 | |||||
| Basic earnings per share | $ | 0.29 | $ | 0.27 | $ | 0.76 | $ | 0.55 | |||||
| Diluted earnings per share | $ | 0.29 | $ | 0.27 | $ | 0.75 | $ | 0.55 | |||||
| Dividends per share | $ | 0.10 | $ | 0.085 | $ | 0.545 | $ | 0.624 | |||||
| Ottawa Bancorp, Inc. & Subsidiary | ||||||||||||
| Selected Financial Data and Ratios | ||||||||||||
| (Unaudited) | ||||||||||||
| At or for the | At or for the | |||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Performance Ratios: | ||||||||||||
| Return on average assets (5) | 0.97 | % | 1.03 | % | 0.87 | % | 0.70 | % | ||||
| Return on average stockholders’ equity (5) | 6.73 | 6.48 | 5.79 | 4.53 | ||||||||
| Average stockholders’ equity to average assets | 14.38 | 15.84 | 15.02 | 15.52 | ||||||||
| Stockholders’ equity to total assets at end of period | 13.78 | 15.74 | 13.78 | 15.74 | ||||||||
| Net interest rate spread (1) (5) | 3.47 | 3.27 | 3.45 | 3.11 | ||||||||
| Net interest margin (2) (5) | 3.55 | 3.45 | 3.55 | 3.32 | ||||||||
| Average interest-earning assets to average interest-bearing liabilities | 120.17 | 122.70 | 120.12 | 122.24 | ||||||||
| Other expense to average assets | 0.72 | 0.78 | 2.19 | 2.22 | ||||||||
| Efficiency ratio (3) | 68.34 | 67.38 | 70.14 | 70.15 | ||||||||
| Dividend payout ratio | 34.20 | 31.38 | 72.20 | 106.36 | ||||||||
| At or for the | At or for the | ||||||
| Nine Months Ended | Twelve Months Ended | ||||||
| September 30, | December 31, | ||||||
| 2021 | 2020 | ||||||
| (unaudited) | |||||||
| Regulatory Capital Ratios (4): | |||||||
| Total risk-based capital (to risk-weighted assets) | 21.60 | % | 20.39 | % | |||
| Tier 1 core capital (to risk-weighted assets) | 20.35 | 19.14 | |||||
| Common equity Tier 1 (to risk-weighted assets) | 20.35 | 19.14 | |||||
| Tier 1 leverage (to adjusted total assets) | 13.65 | 14.26 | |||||
| Asset Quality Ratios: | |||||||
| Net charge-offs to average gross loans outstanding | (0.10 | ) | 0.18 | ||||
| Allowance for loan losses to gross loans outstanding | 1.34 | 1.35 | |||||
| Non-performing loans to gross loans (6) | 0.57 | 0.51 | |||||
| Non-performing assets to total assets (6) | 0.50 | 0.47 | |||||
| Other Data: | |||||||
| Book Value per common share | $ | 16.38 | $ | 16.33 | |||
| Tangible Book Value per common share (7) | $ | 16.12 | $ | 16.07 | |||
| 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.
Craig Hepner
President and Chief Executive Officer
(815) 366-5437
