First Ottawa Bancshares : Third Quarter 2023 Financial Highlights

American

Commercial

Bank & Trust

First Ottawa Bancshares, Inc.

THIRD QUARTER 2023 HIGHLIGHTS

(At or for period ended 9/30/2023 compared to period ended 9/30/2022)

Income Statement Highlights

• Quarter to Date and Year to Date Interest Income on Loans increased by $6.2 million and $20.2 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 $961 thousand and $3.0 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 $6.2 million and $17.5 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 $238.8 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 $38 thousand and $92 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 $27 thousand and $1.7 million primarily due to a $1.4 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 $728 thousand and $1.7 million, primarily due to increased salaries and benefits expense and facilities related expenses.
• Quarter to Date Net Income decreased by $126 thousand, due primarily to the $1.4 million market value adjustment to the Mortgage Servicing Asset in 2022 as compared to no adjustment recorded in 2023. Year to Date Net Income increased by $299 thousand compared to prior year periods. This increase was primarily driven by growth in earning assets.

Balance Sheet Highlights

• Securities Available for Sale increased by $32.3 million, primarily in GNMA instruments compared to end of year 2022.
• Loans Held for Sale decreased by $16.7 million compared to end of year 2022.
• Loans Net of ALLL increased by $87.6 million compared to end of year 2022 as a result of new client acquisition.
• Deposits increased by $161.6 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	16.87%
Return on Ave Assets	.89%
Shares Outstanding	902,344
Book Value at Period End	$97.20
Earnings Per Share - Basic	$10.82
TTM EPS	$13.97
NIM (annualized)*	3.80%
*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
		9/30/2023				9/30/2022	12/31/2022	12/31/2021
Assets
Cash and Due from Banks	$	4,483	$	7,988	$	7,590	$	8,196
Interest Bearing Deposits in Financial Institutions		38,708				30,600					45,224					10,985
Cash and Cash Equivalents
	43,191				38,588					52,814					19,181
Interest Bearing Time Deposits with Financial Institutions
Securities Available for Sale		145,335				109,269					113,045					67,817
Loans Held for Sale		18,706				753					35,460					19,974
Loans, Net of Allowance for Loan Losses		1,176,395				1,053,083					1,088,775					810,909
Premise & Equipment, net		14,050				14,600					10,437					9,821
Other Real Estate Owned		134				-					-					654
Accrued Interest Receivable and Other Assets		58,959				48,813					54,157					42,524
Total Assets	$	1,456,770	$	1,265,106	$	1,354,688	$	970,880
Liabilities and Shareholder's Equity
Deposits, Total	$	1,244,377	$	1,005,538	$	1,082,765	$	839,582
Borrowings		118,500				181,250					189,800					58,500
Other Liabilities		14,205				9,641					10,622					9,131
Total Liabilities
	1,377,082				1,196,429					1,283,187					907,213
Shareholder's Equity		79,688				68,677					71,501					63,667

Total Liabilities and Shareholders Equity	$	1,456,770	$ 1,265,106	$ 1,354,688	$	970,880

First Ottawa Bancshares, Inc.

Income Statement

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

			QTD			QTD			YTD			YTD
	9/30/2023		9/30/2022		9/30/2023	9/30/2022
Interest and Dividend Income
Loans, Including Fees	$	19,384		$	13,218		$	53,438	$	33,233
Securities Available for Sale:
Taxable			1,811				854				4,713			1,685
Exempt from Federal Tax			50				46				150			138
Other			471				146				1,335			261
Total Interest and Dividend Income
		21,716				14,264				59,636			35,317
Interest Expense
Deposits			6,627				962				16,584			1,790
Borrowings			1,631				1,069				4,785			2,075
Total Interest Expense
		8,258				2,031				21,369			3,865
Net Interest Income			13,458				12,233				38,267			31,452
Provision for Loan Losses			1,770				1,000				5,310			2,250
Net Income After Provision for Loan Losses
		11,688				11,233				32,957			29,202
Non Interest Income
Service Fees			642				604				1,798			1,706
Trust and Farm Management Fees			225				219				675			657
Mortgage Servicing Income, Net			20				47				106			1,859
Other			437				266				800			752
Total Non Interest Income
		1,324				1,136				3,379			4,974
Non Interest Expense
Salaries and Employment Benefits			5,324				5,087				15,664			14,932
Occupancy and Equipment			701				634				2,239			2,004
Data Processing Fees			485				378				1,424			1,284
Advertising			71				16				180			221
Professional Fees			180				220				639			639
Other Real Estate Owned, Net			(19)				(72)				67			(152)
Supplies			38				44				105			115
Other			1,084				829				2,707			2,269
Total Non Interest Expenses
		7,864				7,136				23,025			21,312
Income Before Income Tax			5,148				5,233				13,311			12,864
Income Tax Expense			1,442				1,401				3,575			3,427
Net Income	$	3,706		$	3,832		$	9,736	$	9,437

Earnings Per Share

$

4.11

$

4.33

$

10.82

$

10.80