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Ottawa Bancorp, Inc. Announces 2025 Second Quarter Results
Globenewswireยท2025-07-28 20:02

Core Insights - Ottawa Bancorp, Inc. reported a net income of $0.5 million for Q2 2025, a significant improvement from a net loss of $(0.2) million in Q2 2024, indicating a positive operational turnaround [1][4] - For the first half of 2025, net income reached $0.9 million, compared to $0.1 million in the same period of 2024, showcasing consistent growth [1][8] - The company has initiated a stock repurchase program, repurchasing 59,053 shares at an average price of $14.74 per share, reflecting a commitment to enhancing shareholder value [2][3] Financial Performance - Total interest and dividend income for Q2 2025 was $4.2 million, up from $4.0 million in Q2 2024, driven by an increase in the average yield on interest-earning assets, which rose by 0.32% to 5.10% [4][24] - Interest expense decreased to $1.6 million in Q2 2025 from $1.8 million in Q2 2024, resulting in a lower average cost of funds of 2.13% compared to 2.29% [4][24] - Net interest income after provision for credit losses increased to $2.7 million in Q2 2025, up from $2.2 million in Q2 2024 [4][24] Asset Quality - The loan portfolio, net of allowance, increased to $302.2 million as of June 30, 2025, from $301.7 million at the end of 2024, indicating stable loan growth [1][14] - Non-performing loans decreased to $3.8 million at June 30, 2025, down from $4.8 million at December 31, 2024, improving the ratio of non-performing loans to gross loans from 1.58% to 1.23% [1][5] - The allowance for credit losses on loans was $4.1 million, or 1.34% of total gross loans, at June 30, 2025, compared to $4.3 million, or 1.40%, at June 30, 2024 [6][26] Financial Condition - Total consolidated assets decreased by $6.9 million, or 1.9%, to $346.8 million as of June 30, 2025, primarily due to a reduction in cash and cash equivalents [11][12] - Total deposits decreased by $6.0 million, or 2.1%, to $276.9 million at June 30, 2025, with notable declines in various account types [15][21] - Stockholders' equity decreased to $39.6 million at June 30, 2025, down from $40.2 million at December 31, 2024, reflecting share repurchases and cash dividends [17][21] Management Commentary - The CEO expressed satisfaction with the operational results, highlighting a reduction in the cost of funds and an increase in asset yields, which contributed to the expansion of the net interest margin [3][4] - The company remains cautiously optimistic about lending activities despite sluggish residential loan activity due to higher mortgage interest rates [3][4]