First Ottawa Bancshares : Fourth Quarter 2023 Financial Highlights

American

Commercial

Bank & Trust

First Ottawa Bancshares, Inc.

FOURTH QUARTER 2023 HIGHLIGHTS

(At or for period ended 12/31/2023 compared to period ended 12/31/22)

Income Statement Highlights

• Quarter to Date and Year to Date Interest Income on Loans increased by $5.2 million and $25.4 million over the same periods in 2022. Increases were driven by higher loan balances and variable rate repricing.
• Quarter to Date and Year to Date Interest Income on Investments increased by $895 thousand and $3.9 million over the same periods in 2022. Increases were driven by higher balances and variable rate repricing.
• Quarter to Date and Year to Date Interest Expense increased by $5.5 million and $22.9 million over the same periods in 2022. Increases were driven by increases in the cost of funding due to the current rate environment and a $153.0 million increase in deposit balances compared to the same period in 2022.
• Quarter to Date and Year to Date Income from Service Charges increased by $79 thousand and $171 thousand over the same periods in 2022. The increase is attributed to new customer acquisition and continued growth in deposit balances during 2023.
• Quarter to Date and Year to Date Residential Mortgage Servicing Income, including gain on sale, declined by $454 thousand and $2.2 million primarily due to a $1.9 million valuation increase recorded in 2022 compared to no material valuation adjustment recorded in the current year.
• Quarter to Date and Year to Date Non-Interest Expense increased by $2.0 million and $318 thousand, primarily due to decreased salaries and benefits expense.
• Quarter to Date Net Income increased by $1.5 million, due primarily to the reduction in salaries and benefits expense. Year to Date Net Income increased by $1.7 million compared to prior year periods. This increase was primarily driven by growth in earning assets.

Balance Sheet Highlights

• Securities Available for Sale increased by $47.7 million, primarily in GNMA instruments compared to end of year 2022.
• Loans Held for Sale decreased by $34.2 million compared to end of year 2022.
• Loans Net of ALLL increased by $138.0 million compared to end of year 2022 as a result of new client acquisition.
• Deposits increased by $153.0 million compared to end of year 2022. This increase was due to increased wholesale deposits and 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	17.85%
Return on Ave Assets	1.00%
Shares Outstanding	904,506
Book Value at Period End	$101.18
Earnings Per Share - Basic	$15.56
TTM EPS	$15.56
NIM (annualized)*	3.98%
*Bank Only Ratio

First Ottawa Bancshares, Inc.

Balance Sheet

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

			YTD				YTD
		12/31/2023		12/31/2022
Assets
Cash and Due from Banks	$	5,054		$	7,590
Interest Bearing Deposits in Financial Institutions		22,562					45,224
Cash and Cash Equivalents
	27,616					52,814
Interest Bearing Time Deposits with Financial Institutions
Securities Available for Sale		160,790					113,045
Loans Held for Sale		1,251					35,460
Loans, Net of Allowance for Loan Losses		1,226,781					1,088,775
Premise & Equipment, net		9,948					10,437
Other Real Estate Owned		-					-
Cash Surrender Value of Life Insurance		32,484					24,280
Accrued Interest Receivable and Other Assets		30,073					29,877
Total Assets	$	1,488,943		$	1,354,688
Liabilities and Shareholder's Equity
Deposits, Total	$	1,235,731		$	1,082,765
Borrowings		153,500					189,800
Other Liabilities		13,107					10,622
Total Liabilities
	1,402,338					1,283,187
Shareholder's Equity		86.605					71,501

Total Liabilities and Shareholders Equity

$ 1,488,943

$ 1,354,688

First Ottawa Bancshares, Inc.

Income Statement

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

			QTD				QTD				YTD					YTD
		12/31/2023		12/31/2022	12/31/2023	12/31/2022
Interest and Dividend Income
Loans, Including Fees	$	20,288		$	15,069	$	73,726	$	48,302
Securities Available for Sale:
Taxable		2,047					1,147				6,760					2,832
Exempt from Federal Tax		46					51				196					189
Other		344					270				1,679					531
Total Interest and Dividend Income
	22,725					16,537				82,361					51,854
Interest Expense
Deposits		7,831					2,755				24,415					4,545
Borrowings		1,489					1,104				6,274					3,179
Total Interest Expense
	9,320					3,859				30,689					7,724
Net Interest Income		13,405					12,678				51,672					44,130
Provision for Loan Losses		1,770					1,725				7,080					3,975
Net Income After Provision for Loan Losses
	11,635					10,953				44,592					40,155
Non Interest Income
Service Fees		668					589				2,466					2,295
Trust and Farm Management Fees		286					344				961					1001
Mortgage Servicing Income, Net		21					475				127					2,334
Other		347					442				1,147					1,194
Total Non Interest Income
	1,322					1,850				4,701					6,824
Non Interest Expense
Salaries and Employment Benefits		3,953					6,518				19,617					21,450
Occupancy and Equipment		716					691				2,955					2,695
Data Processing Fees		287					555				1,711					1,839
Insurance		504					315				1,649					1,145
Advertising		116					105				296					326
Professional Fees		223					272				862					911
Other Real Estate Owned, Net		38					43				105					(109)
Supplies		25					40				130					155
Other		1,221					575				2,783					2,014
Total Non Interest Expenses
	7,083					9,114				30,108					30,426
Income Before Income Tax		5,874					3,689				19,185					16,553
Income Tax Expense		1,596					883				5,171					4,310
Net Income	$	4,278		$	2,806	$	14,014	$	12,243

Earnings Per Share

$

4.74

$

3.15

$

15.56

$

13.95