Ottawa Bancorp, Inc. Announces Second Quarter 2024 Results

Core Insights - Ottawa Bancorp, Inc. reported a net loss of $0.2 million for the three months ended June 30, 2024, compared to a net income of $0.5 million for the same period in 2023, indicating a significant decline in profitability [1][4] - The company implemented a balance sheet management strategy that involved selling 21 investment securities, generating approximately $4 million in cash but incurring a realized loss of $0.6 million [1][3] - The loan portfolio decreased to $302.5 million as of June 30, 2024, down from $312.2 million at the end of 2023, with non-performing loans slightly increasing to $5.0 million [1][15] Financial Performance - For the three months ended June 30, 2024, total interest and dividend income rose to $4.0 million, up from $3.8 million in the same period of 2023, driven by an increase in the average yield on interest-earning assets to 4.78% [4][24] - Interest expense increased to $1.8 million for the three months ended June 30, 2024, compared to $1.5 million in 2023, primarily due to a rise in the average cost of funds to 2.30% from 1.82% [4][24] - Net interest income decreased to $2.2 million for the three months ended June 30, 2024, down from $2.4 million in the same period of 2023 [4][24] Stock Repurchase Program - The company initiated its sixth stock repurchase program since 2016, repurchasing a total of 965,467 shares at an average price of $13.51 per share through June 30, 2024 [2][3] Asset Quality and Loan Portfolio - The ratio of non-performing loans to gross loans increased to 1.62% as of June 30, 2024, from 1.52% at the end of 2023, reflecting a slight deterioration in asset quality [1][29] - The allowance for credit losses decreased to $4.3 million, or 1.40% of total gross loans, as of June 30, 2024, compared to $4.9 million, or 1.52%, in the previous year [6][29] Financial Condition - Total consolidated assets decreased by $10.7 million, or 2.95%, to $353.2 million as of June 30, 2024, primarily due to a reduction in the net loan portfolio [11][12] - Total deposits decreased by $6.1 million, or 2.2%, to $275.0 million as of June 30, 2024, with significant declines in interest-bearing checking accounts [16][22] - Stockholders' equity decreased by $0.2 million, or 0.6%, to $41.4 million as of June 30, 2024, reflecting cash dividends and other decreases [18][22]