OTTAWA SAVINGS BANK ANNOUNCES THE FILING OF AN APPLICATION TO TRANSFORM AN ILLINOIS APPROVED COMMERCIAL BANK AND CHANGE THE NAME TO “OSB COMMUNITY BANK”
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OTTAWA, Illinois, May 14, 2021 (GLOBE NEWSWIRE) – Ottawa Bancorp, Inc. (the “Company”) (OTCQX: OTTW), the holding company of Ottawa Savings Bank, FSB (the “Bank”), today announced hui that the bank has applied to the Illinois Department of Financial and Professional Regulation to convert its charter from a federally chartered savings bank to an Illinois chartered commercial bank.
Craig Hepner, President and CEO of Ottawa Bancorp, Inc., said, “The Ottawa Savings Bank has had tremendous success as a federally chartered savings bank. Our Board of Directors has determined, however, that the conversion to an Illinois chartered commercial bank best positions the Bank to compete in the markets we serve and to continue to execute our business strategy. The conversion will position us to grow our commercial loan portfolio, and we believe the well-qualified lending team that we have assembled over the past few years is well positioned to help us execute this strategy. From our clients’ perspective, we will be better able to meet their growing loan needs that reflect the evolving profile of the communities we serve. While increasing our operational flexibility, the conversion will not affect the terms and conditions of our clients’ deposit accounts or loans. The added benefit of converting to an Illinois state chartered bank is that we expect to reduce annual regulatory expenses overnight as it is less costly to operate as a chartered institution. of Illinois than to be regulated by the OCC. Mr. Hepner continued, “We are also delighted to announce that, in accordance with these changes in our charter, and to better reflect the breadth of communities we serve, we are planning to change the name to ‘Ottawa Savings Bank’. into “OSB Community Bank” As part of the charter conversion. We are very proud of our heritage at the Ottawa Savings Bank. While we believe the next chapter in the Bank’s history should operate under a moniker that reflects the expanding communities we serve, we want to maintain a connection to our heritage. We will do everything we can to ensure that the next 150 years of the Bank’s life, as an OSB community bank, are even more successful than our first 150 years of operation.
Subject to obtaining the necessary regulatory approvals, the charter conversion is expected to be completed in the third quarter of 2021. Following the charter conversion, the Illinois Department of Financial and Professional Regulation and the Federal Deposit Insurance Corporation will become the main regulators of the bank. . The Federal Reserve Board will continue to be the primary banking regulator for Ottawa Bancorp, Inc., which will apply to the Federal Reserve Board to become a bank holding company upon charter conversion.
About Ottawa Bancorp, Inc.
Ottawa Bancorp, Inc. is the holding company of the Ottawa Savings Bank, FSB, which provides various financial services to individuals and businesses in the United States. The Bank offers various deposit accounts including checks, money market, regular savings, club savings, certificates of deposit and various retirement accounts. Its loan portfolio includes residential mortgages for one to four families, multi-family and non-residential real estate loans, commercial and construction loans, as well as auto loans and home equity lines of credit. The Ottawa Savings Bank, FSB was founded in 1871 and is headquartered in Ottawa, Illinois. For more information about the company and the bank, please visit www.ottawasavings.com.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws. Statements in this press release that are not strictly historical are forward-looking and are based on current expectations which may differ materially from actual results. These forward-looking statements, identified by words such as “will”, “expected”, “believe” and “outlook”, involve risks and uncertainties which could cause actual results to differ materially from those anticipated by the statements made. here. 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 in general, 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 on any changes in laws, regulations and government orders federal, state and local in relation to the pandemic. Ottawa Bancorp, Inc. assumes no obligation to publicly post revisions to these forward-looking statements to reflect events or circumstances subsequent to the date hereof or to reflect the occurrence of unforeseen events, except to the extent that the rules and applicable regulations require it.
Contact: Craig Hepner President & Chief Executive Officer (815) 366-5437
Source: Ottawa Bancorp, Inc.