OTTAWA, Ill., Aug. 20, 2026 (GLOBE NEWSWIRE) -- Pontiac Bancorp, Inc. ("Pontiac"), the holding company of Pontiac-based Bank of Pontiac, and Ottawa Bancorp, Inc. ("Ottawa Bancorp"), the holding company of Ottawa-based OSB Community Bank ("OSB"), have jointly announced today that they have entered into an agreement and plan of merger whereby Pontiac will acquire Ottawa Bancorp. Following the closing of the transaction, which is anticipated in the first quarter of 2027, Pontiac will merge OSB with and into Bank of Pontiac and the surviving bank will operate under the Bank of Pontiac name.
The transaction has been approved by the Board of Directors of both companies and is subject to the receipt of Ottawa Bancorp shareholder approval and required regulatory approvals, and the satisfaction of other customary closing conditions. In accordance with the terms of the merger agreement, shareholders are expected to receive cash consideration equal to $45.5 million, which equates to approximately $19.78 per share, subject to adjustment as provided for in the merger agreement.
Based on June 30, 2026 financial information, the combined institution is expected to have approximately $1.5 billion in total assets and 18 banking offices, inclusive of OSB's 3 full-service locations and 1 loan production office spanning LaSalle and Grundy Counties.
"We are excited to welcome the customers, employees, and communities of OSB Community Bank to Bank of Pontiac," said Mark Donovan, President and CEO of Bank of Pontiac. "This partnership brings together two Illinois community banks that share the same commitment to relationship-based service, local decision-making, and the long-term success of the markets we serve. OSB Community Bank has built an outstanding reputation, and together we will have the scale, expanded product set, and broader footprint to better serve our customers." Mark Donovan added, "Our goal has always been to grow in a way that strengthens the communities we serve and increases shareholder value, and this transaction does exactly that. Customers can expect the same familiar faces and personal attention they know today, now backed by the resources and lending capacity of a larger, combined organization."
"We are proud to partner with Bank of Pontiac and believe this combination is an excellent opportunity for our customers, employees, and shareholders," said Craig Hepner, President & CEO of OSB. "Joining a larger organization that shares our customer-first philosophy allows us to offer expanded products, enhanced technology, and greater lending capacity, while preserving the local, personal service our communities have counted on for years. We look forward to the opportunities this next chapter creates for everyone we serve."
Olsen Palmer LLC served as financial advisor to Pontiac Bancorp and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as its legal counsel. Performance Trust Capital Partners, LLC served as financial advisor to Ottawa Bancorp, and Kilpatrick Townsend & Stockton LLP served as its legal counsel.
About Pontiac Bancorp, Inc. and Bank of Pontiac
Pontiac Bancorp is headquartered in Pontiac, Illinois and owns Bank of Pontiac, a 79-year-old bank with $1.2 billion in total assets and 14 banking offices in Livingston, Grundy, Tazewell, Ford, and McLean Counties.
About Ottawa Bancorp, Inc. and OSB Community Bank
OSB Community Bank is a subsidiary of Ottawa Bancorp, Inc., which is headquartered in Ottawa, Illinois. OSB Community Bank has total assets of approximately $356 million and operates 4 banking offices in La Salle and Grundy Counties.
Forward-Looking Statements
This press release contains forward-looking statements concerning the proposed transaction between Pontiac and Ottawa Bancorp, including statements regarding the anticipated timing and completion of the transaction, the expected benefits of the combination, integration plans, leadership arrangements and the future operations of the combined institution.
Forward-looking statements are based on current expectations, estimates and assumptions and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These factors include, among others, the possibility that required regulatory, corporate or shareholder approvals may not be obtained or may be delayed; the possibility that other closing conditions may not be satisfied; challenges associated with integrating the two organizations; changes in economic, market, competitive, interest rate or regulatory conditions; and other risks affecting the parties or the proposed transaction.
Neither Pontiac nor Ottawa Bancorp undertakes any obligation to update or revise any forward-looking statement except as required by applicable law.
Contacts:
Pontiac Bancorp, Inc. Pontiac Bancorp, Inc. Ottawa Bancorp, Inc.
Christopher Clement Mark Donovan Craig Hepner
President & CEO Vice President President & CEO
(815) 844-6155 (815) 844-6155 (815) 433-2525
