OTTAWA, Ill., Aug. 11 /PRNewswire-FirstCall/ -- Ottawa Savings
Bancorp, Inc., (OTC:OTTW) (BULLETIN BOARD: OTTW) , the holding
company for Ottawa Savings Bank, announced earnings for the second
quarter ended June 30, 2005. Net income for the three months ended
June 30, 2005 was $325,000, as compared to a net loss of $963,000,
for the same period in 2004. The increase in net income was
principally the result of a $1.9 million decrease in our provision
for loan losses that was made in the second quarter of 2004 as a
result of the CLC loans. More details can be found on the CLC loans
in the SB-2 filed with the SEC relating to the initial public
offering of the Company and in the 10-QSB for the quarter ended
June 30, 2005 to be filed with the SEC on or about August 15, 2005.
For the six month period ended June 30, 2005 net income was
$504,000 as compared to a $4.2 million loss for the six month
period ended June 30, 2004. Net interest income before provision
for loan losses increased to $1.1 million for the three months
ended June 30, 2005 from $1.0 million for the corresponding three
months in 2004. For the six month periods ended June 30, 2005 and
2004 net interest income remained the same at $2.2 million.
Interest and dividend income was $2.3 million for the three months
ended June 30, 2005 compared to $2.0 million for the same period in
2004. For the six month period ended June 30, 2005 and 2004,
interest and dividend income was $4.4 million and $4.2 million,
respectively. Interest expense increased $146,000 to $1.1 million
from $1.0 million for the three months ended June 30, 2005 from
June 30, 2004. Interest expense was $2.2 million and $2.0 million
for the six month periods ended June 30, 2005 and 2004,
respectively. Other income for the quarter ended June 30, 2005
increased to $124,000 from $55,000 for the same period in 2004. The
increase was the result of the Bank receiving reimbursement of
organization expenses for the CLC Creditors Trust totaling $74,000.
For the six months ended June 30, 2005 and 2004, other income was
$164,000 and $98,000, respectively. Other expense increased to
$770,000 for the quarter ended June 30, 2005 from $630,000 for the
corresponding three months in 2004. The change was due to increases
in salaries and employee benefits of $71,000, and increases in fees
for legal and professional services of $42,000 caused by matters
relating to the CLC loans and the audit of our 2004 and 2003
financial statements. Other expenses were $1.6 million and $1.2
million for the six months ended June 30, 2005 and 2004,
respectively. Total assets at June 30, 2005 were $183.2 million,
compared to $169.3 million at December 31, 2004. The increase was
primarily attributable to funds received for our conversion. The
loan portfolio increased to $116.9 million at June 30, 2005, from
$114.8 at December 31, 2004. The increase in loans was the result
of normal activity in our loan portfolio. Deposit accounts
increased to $170.0 million at June 30, 2005, from $156.7 million
at December 31, 2004. Of the $13.2 million increase in deposits at
June 30, 2005, $7.3 million represented funds held in a segregated
account for subscriptions received in anticipation of participating
in the initial public offering of Ottawa Savings Bancorp, Inc.
Equity increased $422,000 to $11.4 million at June 30, 2005, from
$11.0 million at December 31, 2004. This increase in equity
reflects net income for the six months ended June 30, 2005 of
$504,000 offset by a decrease in other comprehensive income of
$82,000 for the same period, which was due to the change in value
of the available for sale securities portfolio triggered by an
increase in interest rates. The Company also announced that its
first Annual Meeting of Shareholders will be held on Thursday, May
4, 2006 in Ottawa, Illinois. Shareholders will be notified of the
exact time and location of the meeting. Ottawa Savings Bancorp, Inc
is the holding company for Ottawa Savings Bank, and a majority
owned subsidiary of Ottawa Savings Bancorp, MHC. The Bank,
originally chartered in 1871, is a community bank serving Ottawa,
Illinois and LaSalle County through its main office in Ottawa. The
Company's stock trades on the OTC Bulletin Board under the symbol
OTTW. FORWARD-LOOKING INFORMATION Statements contained in this
release that are not historical facts may constitute
forward-looking statements (within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended), which involve
significant risks and uncertainties. The Bank intends such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995, and is including this
statement for purposes of invoking these safe harbor provisions.
Forward-looking statements, which are based on certain assumptions
and describe future plans, strategies and expectations of the Bank,
are generally identifiable by the use of the words "believe,"
"expect," "intend," "anticipate," "estimate," "project," "plan," or
similar expressions. The Bank's ability to predict results or the
actual effect of future plans or strategies is inherently uncertain
and actual results may differ from those predicted. The Bank
undertakes no obligation to update these forward-looking statements
in the future. The Bank cautions readers of this report that a
number of important factors could cause the Bank's actual results
subsequent to June 30, 2005 to differ materially from those
expressed in forward-looking statements. Factors that could cause
actual results to differ from those predicted and could affect the
future prospects of the Bank include, but are not limited to,
fluctuations in market rates of interest and loan and deposit
pricing, changes in the securities or financial market, a
deterioration of general economic conditions either nationally or
in our market areas, delays in obtaining the necessary regulatory
approvals, our ability to consummate proposed transactions in a
timely manner, legislative or regulatory changes that adversely
affect our business, adverse developments or changes in the
composition of our loan or investment portfolios, significant
increases in competition, changes in real estate values,
difficulties in identifying attractive acquisition opportunities or
strategic partners to complement our banking approach and the
products and services the Bank offers, the possible dilutive effect
of potential acquisitions or expansion, and our ability to raise
new capital as needed and the timing, amount and type of such
capital raises. These risks and uncertainties should be considered
in evaluating forward-looking statements. Ottawa Savings Bank and
Subsidiary Consolidated financial highlights (unaudited) Dollars in
thousands June 30, March 31, December 31, 2005 2005 2004 Financial
Condition Data: Total Assets $183,160 $173,265 $169,285 Loans, net
(1) 116,920 110,727 114,826 Loans held for sale - 381 - Securities
held to maturity 1,635 1,718 1,818 Securities available for sale
37,710 39,236 30,640 Deposits 169,971 160,795 156,654 Equity 11,428
10,848 11,006 (1) Net of loans in process, allowance for loan
losses Three Months Ended June 30, Six Months Ended June 30, 2005
2004 2005 2004 Operation Data: Total interest and dividend income
$2,269 $2,003 $4,446 $4,187 Total interest expenses 1,143 997 2,222
2,002 Net interest income 1,126 1,006 2,224 2,185 Provision for
loan losses (23) 1,889 - 7,346 Other income 124 55 164 98 Other
expense 770 630 1,596 1,230 Income tax expense (benefit) 178 (496)
288 (2,140) Net income (loss) 325 (963) 504 (4,153) Three Months
Ended June 30, Six Months Ended June 30, 2005 2004 2005 2004
Performance Ratios: Return on average assets 0.73% -2.28% 0.57%
-5.02% Return on average equity 11.63% -35.59% 9.00% -67.49%
Average equity to average assets 6.36% 6.42% 6.37% 7.39% Equity to
total assets at end of period 6.24% 6.34% 6.24% 6.34% Net interest
rate spread 2.77% 2.79% 2.66% 2.58% Net interest margin 2.79% 3.00%
2.80% 2.80% Average interest-earning assets to average
interest-bearing liabilities 100.70% 108.31% 104.94% 108.30% Other
expense to average assets 1.74% 1.49% 1.82% 1.48% Efficiency ratio
61.60% 59.43% 66.83% 53.88% DATASOURCE: Ottawa Savings Bancorp,
Inc. CONTACT: Gary L. Ocepek, President-CEO of Ottawa Savings
Bancorp, Inc., +1-815-433-2525 Web site:
http://www.ottawasavings.com/
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