Ottawa Bancorp, Inc. Announces 2025 Third Quarter Results

Core Viewpoint - Ottawa Bancorp, Inc. reported significant year-on-year growth in net income and improvements in asset quality, despite a decrease in the loan portfolio and flat loan growth during the first nine months of 2025 [1][3][4]. Financial Performance - For the three months ended September 30, 2025, net income was $0.4 million, up from $0.2 million in the same period of 2024, resulting in earnings per share of $0.18 compared to $0.08 [1][4]. - For the nine months ended September 30, 2025, net income reached $1.4 million, compared to $0.3 million for the same period in 2024, with earnings per share increasing from $0.10 to $0.57 [1][9]. - Total interest and dividend income for the three months ended September 30, 2025, was $4.4 million, an increase from $4.1 million in 2024, driven by a rise in the average yield on interest-earning assets to 5.21% [4][9]. - Interest expense decreased to $1.8 million for the three months ended September 30, 2025, down from $1.9 million in 2024, reflecting a reduction in the average cost of funds from 2.43% to 2.29% [4][9]. Asset Quality - The loan portfolio, net of allowance, decreased to $298.7 million as of September 30, 2025, from $301.7 million at the end of 2024, as payments and payoffs exceeded originations [1][14]. - Non-performing loans decreased to $3.7 million at September 30, 2025, from $4.8 million at December 31, 2024, resulting in a reduction of the non-performing loans to gross loans ratio from 1.58% to 1.21% [1][4][7]. Capital Management - The company initiated its seventh stock repurchase program, repurchasing 120,996 shares at an average price of $15.01 per share during the quarter ended September 30, 2025 [2]. - Since the beginning of 2025, the company returned nearly $2.6 million to shareholders through dividends and stock repurchases while increasing tangible book value by 3.7% or $0.61 per share [3][17]. Financial Condition - Total consolidated assets as of September 30, 2025, were $354.2 million, a slight increase of $0.5 million from $353.7 million at December 31, 2024 [12]. - Total deposits increased by $9.0 million, or 3.2%, to $291.8 million at September 30, 2025, with significant increases in certificate of deposit accounts and interest-bearing checking accounts [15]. - Stockholders' equity decreased to $39.2 million at September 30, 2025, from $40.2 million at December 31, 2024, primarily due to share repurchases and cash dividends [17].