First Ottawa Bancshares : June 30, 2022 Financial Results

American

Commercial

Bank & Trust

First Ottawa Bancshares, Inc.

SECOND QUARTER 2022 HIGHLIGHTS

(At or for period ended 6/30/2022 compared to period ended 6/30/2021)

Income Statement Highlights

• Quarter to Date and Year to Date interest income on loans increased by $1.2 million and $1.4 million over the same periods in 2021. Increases were driven by higher loan balances and variable rate repricing.
• Quarter to Date and Year to Date interest income on investments increased by $335 thousand and $393 thousand over the same periods in 2021. Increases were a result of higher balances and variable rate repricing.
• Quarter to Date and Year to Date interest expense increased by $201 thousand and $136 thousand over the same periods in 2021. Increased interest expense was a result of the increasing rate environment and higher balances in deposits and borrowings.
• Quarter to Date and Year to Date income from service fees increased by $157 thousand and $327 thousand over the same periods in 2021. The increase is attributed to new customer acquisition and continued growth in deposit balances during 2022.
• Quarter to Date residential mortgage servicing income increased by $337 thousand when compared to the same period in 2021. This increase was primarily due to an increase in the mid- year valuation of the mortgage servicing asset. Year to Date residential servicing income decreased by $1.2 million compared to 2021 results due to the increasing rate environment and corresponding decreases in demand and refinancing activity.
• Quarter to Date and Year to Date non-interest expense increased by $819 thousand and $1.3 million compared to the same periods in 2021. Increases were primarily due to additional personnel and facilities added in late 2021 and early 2022.
• Quarter to Date net income increased by $974 thousand and Year to Date net income increased by $109 thousand compared to prior year periods. This increase was driven by variable rate asset growth and an increase in the value of the mortgage servicing asset.

Balance Sheet Highlights

• Securities available for sale increased $35.8 million in 2022 compared to end of year 2021, as strategic investments were made in a normalizing rate environment primarily in agency mortgage-backed securities and GNMA variable rate instru- ments.
• Loans held for sale decreased by $19.8 million in 2022 compared to end of year 2021, as a result of declining volumes and rising interest rates in the residential mortgage market.
• Loans, net of ALLL increased by $147.8 million compared to year end 2021, de- spite SBA PPP loan paydowns of $23.8 million (remaining balance is $9.6 million).
• Deposits increased by $153.7 million compared to year end 2021, primarily due to new customer acquisition.

Markets

Chicago - Goose Island

1315 N North Branch St., Chicago 60642

Lisle

4733 Main St., Lisle, IL 60532

Morris

1771 N. Division St., Morris, IL 60450

Ottawa

701 LaSalle St., Ottawa, IL 61350

Schaumburg

1475 Woodfield Rd., STE 100, Schaumburg, IL 60173

Streator

409 E. Bridge St., Streator, IL 61364

Yorkville

1459 Cannonball Tr., Yorkville, IL 60560

Return on Ave Equity	16.24%
Return on Ave Assets	1.01%
Shares Outstanding	885,692
Book Value at Period End	$79.83
Earnings Per Share - Basic	$6.47
TTM EPS	$13.53
NIM (annualized)*	4.02%
*Bank Only Ratio

First Ottawa Bancshares, Inc.

Balance Sheet

($ in thousands, Except Share and Per Share Data)

	End of Period			End of Period				End of Period				End of Period
		6/30/2022				6/30/2021					12/31/2021	12/31/2020
Assets
Cash and Due from Banks	$	9,733	$	5,647	$	8,196	$	5,177
Interest Bearing Deposits in Financial Institutions		31,484				53,487					10,985					27,909
Cash and Cash Equivalents
	41,217				59,134					19,181					33,086
Interest Bearing Time Deposits with Financial Institutions
Securities Available for Sale		103,579				61,549					67,817					55,645
Loans Held for Sale		164				4,884					19,974					63,580
Loans, Net of Allowance for Loan Losses		958,771				800,926					810,909					722,403
Premise & Equipment, net		14,563				9,931					9,821					10,059
Other Real Estate Owned		-				775					654					1,123
Accrued Interest Receivable and Other Assets		43,352				21,464					42,524					19,668
Total Assets	$	1,161,646	$	958,663	$	970,880	$	905,564
Liabilities and Shareholder's Equity
Deposits, Total	$	993,335	$	830,997	$	839,582	$	690,229
Borrowings		91,250				63,500					58,500					159,000
Other Liabilities		10,657				5,907					9,131					4,261
Total Liabilities
	1,095,242				900,404					907,213					853,490
Shareholder's Equity		66,404				58,259					63,667					52,074

Total Liabilities and Shareholders Equity	$	1,161,646	$	958,663	$	970,880	$	905,564

First Ottawa Bancshares, Inc.

Income Statement

($ in thousands, Except Share and Per Share Data)

			QTD			QTD			YTD			YTD
	6/30/2022		6/30/2021		6/30/2022	6/30/2021
Interest and Dividend Income
Loans, Including Fees	$	10,739		$	9,492		$	20,015	$	18,572
Securities Available for Sale:
Taxable			550				209				831			427
Exempt from Federal Tax			46				52				92			103
Other			59				55				115			106
Total Interest and Dividend Income
		11,394				9,808				21,053			19,208
Interest Expense
Deposits			475				348				828			741
Borrowings			543				469				1,006			957
Total Interest Expense
		1,018				817				1,834			1,698
Net Interest Income			10,376				8,991				19,219			17,510
Provision for Loan Losses			650				750				1,250			1,500
Net Income After Provision for Loan Losses
		9,726				8,241				17,969			16,010
Non Interest Income
Service Fees			574				417				1,102			775
Trust and Farm Management Fees			219				213				438			426
Mortgage Servicing Income, Net			1,560				1,223				1,812			3,060
Other			280				120				486			243
Total Non Interest Income
		2,633				1,973				3,838			4,504
Non Interest Expense
Salaries and Employment Benefits			5,125				4,649				9,844			9,373
Occupancy and Equipment			695				553				1,370			1,065
Data Processing Fees			451				349				907			718
Advertising			81				61				205			113
Professional Fees			194				152				420			303
Other Real Estate Owned, Net			54				33				-80			57
Supplies			32				31				70			65
Other			715				700				1,440			1,233
Total Non Interest Expenses
		7,347				6,528				14,176			12,927
Income Before Income Tax			5,012				3,686				7,631			7,587
Income Tax Expense			1,350				998				2,026			2,091
Net Income	$	3,662				$2,688				$5,605	$	5,496

QTD Earnings Per Share

$

4.20

$

3.17

$6.47

$

6.55