OTTAWA, Ill., Feb. 10, 2022 (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 $0.28 per basic and diluted common share for the three months ended December 31, 2021, compared to net income of $0.8 million, or $0.30 per basic and diluted common share for the three months ended December 31, 2020. For the twelve months ended December 31, 2021, the Company announced net income of $2.90 million, or $1.03 per basic and diluted common share, compared to net income of $2.48 million, or $0.85 per basic and $0.84 diluted common share for the twelve months ended December 31, 2020. The loan portfolio, net of allowance, increased to $283.9 million as of December 31, 2021 from $255.1 million as of December 31, 2020. Non-performing loans increased from $1.3 million at December 31, 2020 to $1.6 million at December 31, 2021, which caused the ratio of non-performing loans to gross loans to increase from 0.51% at December 31, 2020 to 0.57% at December 31, 2021. Additionally, through December 31, 2021, the Company has repurchased a total of 704,585 shares of its common stock at an average price of $13.32 per share as part of the five stock repurchase programs approved by the Company’s Board since 2016.
Craig Hepner, President and Chief Executive Officer of the Company, said “I’m delighted to announce that we continued to successfully execute on all phases of our strategic plan during 2021. This resulted in strong performance in the fourth quarter and throughout the year. Our record earnings in 2021 were driven by robust organic growth in both loans and deposits and the continued focus on improving our deposit mix and reducing our overall cost of funds.”
“We continued to leverage our capital position through sound asset growth in 2021 and serve as a consistent source of liquidity for our stockholders through our on-going share repurchase program as well as our dividend payments throughout the year. Our primary markets continue to rebound from the effects of the COVID-19 pandemic, and we remain cautiously optimistic that our local economic conditions will continue to strengthen in the coming months. The Bank has and will continue to support our customers and the communities we serve as we continue to work through the challenges faced as a result of the pandemic,” said Mr. Hepner.
Comparison of Results of Operations for the Three Months Ended December 31, 2021 and December 31, 2020
Net income for the three months ended December 31, 2021 was $0.8 million compared to net income of $0.8 million for the three months ended December 31, 2020. Total interest and dividend income was $3.1 million for both the three months ended December 31, 2021 and 2020. Interest expense was $0.3 million during the three months ended December 31, 2021 as compared to $0.5 million for the three months ended December 31, 2020. Thus, net interest income was $2.8 million for the three months ended December 31, 2021 as compared to $2.6 million for the three months ended December 31, 2020. In addition, there was $25,000 of provision for loan losses taken during the three months ended December 31, 2021. Due to the continued uncertainty related to the COVID-19 pandemic and the surging number of cases related to the Omnicron variant, some of the qualitative factors for the allowance calculation remained elevated. This, combined with an increase in the overall loan portfolio balance during the fourth quarter of 2021, led to the required level for the allowance for loan losses and provision taken during the quarter. Net interest income after provision for loan losses was $2.8 million for the three months ended December 31, 2021 as compared to $2.6 million for the three months ended December 31, 2020. Total other income was $0.8 million for both the three months ended December 31, 2021 and 2020. Total other expenses were $2.4 million for the three months ended December 31, 2021 and 2020. Income tax expense was $0.4 million for the three months ended December 31, 2021 as compared to $0.1 million for the three months ended December 31, 2020.
Net interest income (before provision for loan losses) increased by $0.2 million, or 6.5%, to $2.8 million for the three months ended December 31, 2021, compared to $2.6 million for the three months ended December 31, 2020. Interest and dividend income remained flat at $3.1 million for the three months ended December 31, 2021 as compared to the three months ended December 31, 2020. The yield on earning assets decreased from 4.38% for the three months ended December 31, 2020 to 3.90% for the three months ended December 31, 2021. The negative impact on interest and dividend income caused by the decrease in the yield was almost completely offset by the growth in earning assets of $32.8 million. Additionally, interest expense declined $0.2 million due to lower interest rates as cost of funds declined from 0.89% at December 31, 2020 to 0.51% as of December 31, 2021 or a reduction of 38 basis points or 42.7%. The net interest margin declined by 17 basis points during the three months ended December 31, 2021 to 3.48% from 3.65% during the three months ended December 31, 2020.
The Company recorded $25,000 of provision for loan losses for the three-month period ended December 31, 2021 as compared to no provision for loan losses for the three months ended December 31, 2020. The allowance for loan losses was $3.6 million, or 1.27% of total gross loans at December 31, 2021 compared to $3.5 million, or 1.35% of gross loans at December 31, 2020. Net recoveries during the fourth quarter of 2021 were ($1,533) compared to ($19,956) during the fourth quarter of 2020. General allocation of reserves was higher at December 31, 2021 when compared to December 31, 2020, primarily due to the balances in most loan categories increasing during the twelve months ended December 31, 2021 with the exception of consumer direct and the purchased auto loan categories. Many qualitative factors remain elevated as the impact of the COVID-19 pandemic remains uncertain and cases were rising due to the Omnicron variant. As of December 31, 2021, non-performing loans increased to $1.6 million. The necessary reserves on non-performing loans as of December 31, 2021 were approximately $35,000 higher than those at December 31, 2020 due to the deterioration of some credits necessitating higher levels for the specific allocation of reserves.
Total other income was $0.8 million for the three months ended December 31, 2021 and December 31, 2020. Originations in the one-to-four family residential loan category decreased during the three months ended December 31, 2021 as compared to the same period in 2020. Thus, gain on sale of loans decreased by $0.3 million. Offsetting most of this decrease were increases in loan origination and servicing income, customer service fees and origination of mortgage servicing rights, net of amortization. The origination of mortgage servicing rights, net of amortization, was $0.2 million higher due to a favorable adjustment to the value of the servicing portfolio based on a third-party valuation conducted during the fourth quarter of 2021 which increased the valuation of the portfolio based on economic data.
Total other expense was $2.4 million for the three months ended December 31, 2021 and December 31, 2020. Salaries and employee benefits was $1.4 million for the three months ended December 31, 2021 and 2020. Data processing, occupancy and other expenses increased slightly. These increases were offset by lower loan expenses and fees incurred for legal and professional services.
The Company recorded income tax expense of $0.4 million for the three-month period ended December 31, 2021 as compared to $0.1 million for the three months ended December 31, 2020.
Comparison of Results of Operations for the Twelve Months Ended December 31, 2021 and December 31, 2020
Net income was $2.90 million for the twelve-month period ended December 31, 2021 compared to $2.48 million for the twelve-month period ended December 31, 2020, an increase of 17.0%. Interest expense for the period was $1.0 million lower due to the lower interest rate environment in 2021 which resulted in an increase in the net interest income for the period of $1.1 million to $10.9 million. Total other income decreased by $0.4 million during the period to $2.9 million as a result of a lower volume of secondary market loan sales in 2021 as compared to 2020. Other expense levels were higher by $0.3 million increasing to $9.6 million for the twelve months ended December 31, 2021. The increase in other expense was the result of salaries and employee benefits increasing by $0.4 million and data processing expense increasing by $0.1 million. Salaries and benefits increased due to higher commissions paid to loan originators throughout the year as well as a larger accrual for the short-term incentive plan in 2021 as compared to 2020. These increases to other expense were slightly offset by decreases in loan expense and the other expense category.
Net interest income increased by $1.1 million, or 10.8%, to $10.9 million for the twelve months ended December 31, 2021, from $9.8 million for the twelve months ended December 31, 2020. Interest and dividend income increased $0.1 million, or 0.7%, as the growth in average earning assets overcame the negative effects of the low-rate environment. There was a decrease of 27 basis points in the average yield on assets which declined to 3.99% for the twelve months ended December 31, 2021 from 4.26% for the twelve months ended December 31, 2020. This decrease was offset by an increase in the average balances of interest-earning assets of $21.7 million leading to an overall increase in interest and dividend income. Interest expense decreased $1.0 million as the average cost of funds decreased by 46 basis points to 0.60% for the twelve months ended December 31, 2021 from 1.06% for the twelve months ended December 31, 2020. This decrease in cost of funds was slightly offset slightly by an increase in the average balance of interest-bearing liabilities of $19.6 million. Overall, interest expense decreased by $1.0 million to $1.5 million for the twelve months ended December 31, 2021 as compared to $2.5 million for the twelve months ended December 31, 2020. The growth in interest-earning assets propelled the 11 basis point increase in the net interest margin during the twelve months ended December 31, 2021 which grew to 3.50% from 3.39%.
We recorded a provision for loan losses of $0.1 million for the twelve-month period ended December 31, 2021 as compared to $0.7 million for the twelve-month period ended December 31, 2020. The allowance for loan losses was $3.6 million, or 1.27% of total gross loans at December 31, 2021 compared to $3.5 million, or 1.35% of gross loans at December 31, 2020. Net charge-offs (recoveries) during the twelve months ended 2021 were ($10,994) compared to $0.1 million during the twelve months ended 2020. General allocation of reserves was higher at December 31, 2021 when compared to December 31, 2020, primarily due to the balances in most loan categories increasing during the twelve months ended December 31, 2021 with the exception of consumer direct and the purchased auto loan categories. Many qualitative factors remain elevated as the impact of the COVID-19 pandemic remains uncertain and cases were rising due to the Omnicron variant. As of December 31, 2021, non-performing loans increased to $1.6 million. The necessary reserves on non-performing loans as of December 31, 2021 were approximately $35,000 higher than they were as of December 31, 2020 due to the deterioration of some credits necessitating higher levels for the specific allocation of reserves.
Total other income was $2.9 million for the twelve months ended December 31, 2021 as compared to $3.3 million for the twelve months ended December 31, 2020. During 2021, fewer of the mortgage origination volume was sold, thus, the gain on sale of loans decreased by $0.6 million and loan origination and servicing income decreased by $0.1 million. Customer service fees were comparable between the periods. Origination of mortgage servicing rights, net of amortization, was higher due to a favorable adjustment to the value of the servicing portfolio based on a third-party valuation conducted during the fourth quarter of 2021.
Total other expense increased by $0.3 million, or 3.5%, to $9.6 million for the twelve months ended December 31, 2021, as compared to $9.3 million for the twelve months ended December 31, 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. Salaries and benefits increased due to higher commissions paid to loan originators throughout the year as well as a larger accrual for the short-term incentive plan due to stronger growth and operating results in 2021. These increases were slightly offset by decreases in the loan expense and the other expense category.
We recorded income tax expense of $1.2 million for the twelve-month period ended December 31, 2021 and $0.7 million for the twelve-month period ended December 31, 2020.
Comparison of Financial Condition at December 31, 2021 and December 31, 2020
Total consolidated assets as of December 31, 2021 were $342.7 million, an increase of $35.1 million, or 11.4%, from $307.6 million at December 31, 2020. The increase was primarily due to an increase of $14.0 million in securities available for sale, a $28.8 million increase in the net loan portfolio, a $0.4 million increase in loans held for sale and a $0.5 million increase in other assets. Various other categories increased by $0.1 million. These increases were partially offset by a decrease in federal funds sold of $2.6 million, a decrease in cash and cash equivalents of $3.1 million and a decrease in time deposits of $3.0 million.
Cash and cash equivalents decreased $3.1 million, or 29.7%, to $7.3 million at December 31, 2021 from $10.4 million at December 31, 2020. The decrease in cash and cash equivalents was primarily a result of cash used in investing activities of $38.1 million exceeding cash provided by operating activities of $2.9 million and cash provided by financing activities of $32.1 million.
Securities available for sale increased $14.0 million, or 74.75%, to $32.7 million at December 31, 2021 from $18.7 million at December 31, 2020, as new securities purchased exceeded paydowns, calls and maturities.
Net loans increased $28.8 million, or 11.3%, to $283.9 million at December 31, 2021 compared to $255.1 million at December 31, 2020 primarily the result of an increase of $21.9 million in one-to-four family loans, an increase of $3.4 million in multi-family loans, an increase of $11.8 million in non-residential real estate loans and a $1.0 million increase in commercial loans. The increases were offset by decreases of $4.7 million in consumer direct loans and $4.4 million in purchased auto loans. The allowance for loan losses increased by $0.1 million from December 31, 2020 to December 31, 2021.
Total deposits increased $37.0 million, or 15.7%, to $273.1 million at December 31, 2021 from $236.1 million at December 31, 2020. For the twelve months ended December 31, 2021, savings accounts increased by $1.5 million, non-interest bearing checking accounts increased by $4.6 million, interest-bearing checking accounts increased by $20.0 million and money market accounts increased by $5.1 million and certificates of deposit increased by $5.8 million as compared to December 31, 2020.
FHLB advances decreased $1.0 million, or 5.8%, to $16.5 million at December 31, 2021 compared to $17.5 million at December 31, 2020.
Stockholders’ equity decreased $1.6 million, or 3.4% to $46.6 million at December 31, 2021 from $48.2 million at December 31, 2020. The decrease reflects $2.1 million used to repurchase and cancel 141,100 outstanding shares of Company common stock, $1.9 million in cash dividends and a $0.4 million decrease in other comprehensive income due to a decrease in fair value of securities available for sale. The decreases were partially offset by net income of $2.9 million for the twelve months ended December 30, 2021 and proceeds from stock options exercised, equity incentive plan shares issued and the allocation of ESOP shares totaling $0.1 million.
Annual Meeting of Stockholders
On February 10, 2022 the Company also announced that its annual meeting of stockholders will be held on Wednesday, May 18, 2022.
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 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 | ||||||||
| December 31, 2021 and December 31, 2020 | ||||||||
| (Unaudited) | ||||||||
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 6,046,361 | $ | 4,793,872 | ||||
| Interest bearing deposits | 1,249,947 | 5,581,139 | ||||||
| Total cash and cash equivalents | 7,296,308 | 10,375,011 | ||||||
| Time deposits | 250,000 | 3,232,500 | ||||||
| Federal funds sold | 936,000 | 3,486,000 | ||||||
| Securities available for sale | 32,700,414 | 18,711,631 | ||||||
| Loans, net of allowance for loan losses of $3,640,145 and $3,479,151 at December 31, 2021 and December 31, 2020, respectively | 283,877,203 | 255,103,054 | ||||||
| Loans held for sale | 403,920 | - | ||||||
| Premises and equipment, net | 6,331,188 | 6,312,256 | ||||||
| Accrued interest receivable | 1,007,399 | 972,602 | ||||||
| Foreclosed real estate | - | 107,100 | ||||||
| Deferred tax assets | 1,793,910 | 1,666,339 | ||||||
| Cash value of life insurance | 2,649,941 | 2,603,046 | ||||||
| Goodwill | 649,869 | 649,869 | ||||||
| Core deposit intangible | 100,326 | 131,996 | ||||||
| Other assets | 4,684,920 | 4,234,003 | ||||||
| Total assets | $ | 342,681,398 | $ | 307,585,407 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Liabilities | ||||||||
| Deposits: | ||||||||
| Non-interest bearing | $ | 22,898,814 | $ | 18,285,211 | ||||
| Interest bearing | 250,152,124 | 217,774,806 | ||||||
| Total deposits | 273,050,938 | 236,060,017 | ||||||
| Accrued interest payable | 48,825 | 54,851 | ||||||
| FHLB advances | 16,524,555 | 17,548,560 | ||||||
| Other liabilities | 5,016,264 | 4,731,352 | ||||||
| Total liabilities | 294,640,582 | 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; 2,818,517 and 2,949,324 shares issued at December 31, 2021 and December 31, 2020, respectively | 28,185 | 29,491 | ||||||
| Additional paid-in-capital | 28,529,543 | 30,415,091 | ||||||
| Retained earnings | 20,536,121 | 19,457,092 | ||||||
| Unallocated ESOP shares | (1,005,702 | ) | (1,132,842 | ) | ||||
| Unallocated management recognition plan shares | (99,353 | ) | (62,070 | ) | ||||
| Accumulated other comprehensive income | 52,022 | 483,865 | ||||||
| 48,040,816 | 49,190,627 | |||||||
| Less: | ||||||||
| ESOP Owned Shares | (1,461,946 | ) | (957,167 | ) | ||||
| Total stockholders' equity | 46,578,870 | 48,233,460 | ||||||
| Total liabilities and stockholders' equity | $ | 342,681,398 | $ | 307,585,407 | ||||
| Ottawa Bancorp, Inc. & Subsidiary | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| Three and Twelve Months Ended December 31, 2021 and 2020 | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Interest and fees on loans | $ | 2,969,101 | $ | 2,982,253 | $ | 11,896,209 | $ | 11,601,368 | ||||||||
| Securities: | ||||||||||||||||
| Residential mortgage-backed and related securities | 68,993 | 47,476 | 204,046 | 231,032 | ||||||||||||
| State and municipal securities | 74,368 | 103,831 | 263,212 | 386,561 | ||||||||||||
| Dividends on non-marketable equity securities | 8,714 | 8,675 | 34,186 | 30,180 | ||||||||||||
| Interest-bearing deposits | 4,518 | 8,594 | 21,330 | 80,937 | ||||||||||||
| Total interest and dividend income | 3,125,694 | 3,150,829 | 12,418,983 | 12,330,078 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 273,400 | 446,825 | 1,266,314 | 2,217,388 | ||||||||||||
| Borrowings | 53,906 | 77,949 | 262,146 | 283,503 | ||||||||||||
| Total interest expense | 327,306 | 524,774 | 1,528,460 | 2,500,891 | ||||||||||||
| Net interest income | 2,798,388 | 2,626,055 | 10,890,523 | 9,829,187 | ||||||||||||
| Provision for loan losses | 25,000 | - | 150,000 | 660,000 | ||||||||||||
| Net interest income after provision for loan losses | 2,773,388 | 2,626,055 | 10,740,523 | 9,169,187 | ||||||||||||
| Other income: | ||||||||||||||||
| Gain on sale of loans | 115,871 | 412,897 | 895,341 | 1,455,255 | ||||||||||||
| Gain on sale of securities, net | - | - | - | 847 | ||||||||||||
| Loan origination and servicing income | 290,015 | 271,814 | 1,149,174 | 1,214,599 | ||||||||||||
| Origination of mortgage servicing rights, net of amortization | 235,131 | (107,168 | ) | 326,083 | 33,545 | |||||||||||
| Customer service fees | 102,649 | 88,323 | 393,174 | 367,556 | ||||||||||||
| Increase in cash surrender value of life insurance | 11,174 | 35,996 | 46,895 | 74,652 | ||||||||||||
| Gain on sale of repossessed assets, net | - | 550 | - | 21,433 | ||||||||||||
| Gain (Loss) on sale of foreclosed real estate | 6,543 | (2,982 | ) | 10,599 | (2,982 | ) | ||||||||||
| Other | 39,415 | 53,652 | 123,639 | 164,667 | ||||||||||||
| Total other income | 800,798 | 753,081 | 2,944,905 | 3,329,581 | ||||||||||||
| Other expenses: | ||||||||||||||||
| Salaries and employee benefits | 1,421,998 | 1,442,790 | 5,907,034 | 5,532,741 | ||||||||||||
| Directors fees | 35,000 | 40,000 | 148,750 | 160,000 | ||||||||||||
| Occupancy | 166,852 | 145,142 | 624,468 | 636,814 | ||||||||||||
| Deposit insurance premium | 25,736 | (1,997 | ) | 79,913 | 31,003 | |||||||||||
| Legal and professional services | 96,688 | 112,716 | 360,120 | 439,871 | ||||||||||||
| Data processing | 297,237 | 244,873 | 1,077,576 | 951,855 | ||||||||||||
| Loan expense | 91,534 | 165,955 | 500,256 | 586,766 | ||||||||||||
| Valuation adjustments and expenses on foreclosed real estate | (844 | ) | 3,760 | 15,859 | 5,263 | |||||||||||
| Other | 287,308 | 263,791 | 887,777 | 931,179 | ||||||||||||
| Total other expenses | 2,421,509 | 2,417,030 | 9,601,753 | 9,278,492 | ||||||||||||
| Income before income tax expense | 1,152,677 | 962,106 | 4,083,675 | 3,220,276 | ||||||||||||
| Income tax expense | 392,718 | 112,823 | 1,179,954 | 739,356 | ||||||||||||
| Net income | $ | 759,959 | $ | 849,283 | $ | 2,903,721 | $ | 2,480,920 | ||||||||
| Basic earnings per share | $ | 0.28 | $ | 0.30 | $ | 1.03 | $ | 0.85 | ||||||||
| Diluted earnings per share | $ | 0.28 | $ | 0.30 | $ | 1.03 | $ | 0.84 | ||||||||
| Dividends per share | $ | 0.105 | $ | 0.084 | $ | 0.647 | $ | 0.668 | ||||||||
| Ottawa Bancorp, Inc. & Subsidiary | |||||||||||||
| Selected Financial Data and Ratios | |||||||||||||
| (Unaudited) | |||||||||||||
| At or for the | At or for the | ||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| Performance Ratios: | |||||||||||||
| Return on average assets (5) | 0.89 | % | 1.10 | % | 0.87 | % | 0.80 | % | |||||
| Return on average stockholders' equity (5) | 6.27 | 6.93 | 5.94 | 5.14 | |||||||||
| Average stockholders' equity to average assets | 14.17 | 15.91 | 14.71 | 15.62 | |||||||||
| Stockholders' equity to total assets at end of period | 13.59 | 15.69 | 13.59 | 15.69 | |||||||||
| Net interest rate spread (1) (5) | 3.39 | 3.49 | 3.39 | 3.20 | |||||||||
| Net interest margin (2) (5) | 3.48 | 3.65 | 3.50 | 3.39 | |||||||||
| Average interest-earning assets to average interest-bearing liabilities | 120.43 | 121.78 | 122.13 | 122.13 | |||||||||
| Other expense to average assets | 0.71 | 0.79 | 2.89 | 3.00 | |||||||||
| Efficiency ratio (3) | 67.27 | 71.53 | 69.40 | 70.51 | |||||||||
| Dividend payout ratio | 38.21 | 27.67 | 62.84 | 78.65 | |||||||||
| At or for the | At or for the | ||||||
| Twelve Months Ended | Twelve Months Ended | ||||||
| December 31, | December 31, | ||||||
| 2021 | 2020 | ||||||
| (unaudited) | |||||||
| Regulatory Capital Ratios (4): | |||||||
| Total risk-based capital (to risk-weighted assets) | 19.58 | % | 22..39 | % | |||
| Tier 1 core capital (to risk-weighted assets) | 18.32 | 19.14 | |||||
| Common equity Tier 1 (to risk-weighted assets) | 18.32 | 19.14 | |||||
| Tier 1 leverage (to adjusted total assets) | 13.27 | 14.26 | |||||
| Asset Quality Ratios: | |||||||
| Net charge-offs to average gross loans outstanding | (0.02 | ) | 0.18 | ||||
| Allowance for loan losses to gross loans outstanding | 1.27 | 1.35 | |||||
| Non-performing loans to gross loans (6) | 0.57 | 0.51 | |||||
| Non-performing assets to total assets (6) | 0.48 | 0.47 | |||||
| Other Data: | |||||||
| Book Value per common share | $16.53 | $16.35 | |||||
| Tangible Book Value per common share (7) | $16.26 | $16.09 | |||||
| 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
