Pontiac Bancorp in Illinois, which owns Bank of Pontiac, is acquiring Ottawa Bancorp, the holding company of OSB Community Bank.
OSB Community Bank will be merged into Bank of Pontiac and the surviving bank will operate under the Bank of Pontiac name. Under the terms of the deal, shareholders are expected to receive cash consideration equal to $45.5 million, which equals approximately $19.78 per share. The combined institution is expected to have approximately $1.5 billion in total assets and 18 banking offices, including OSB’s 3 full-service locations and 1 loan production office in Illinois.
“We are excited to welcome the customers, employees, and communities of OSB Community Bank to Bank of Pontiac,” Mark Donovan, president and CEO of Bank of Pontiac, said. “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.”
“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,” Donovan said. “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.”
Pontiac Bancorp is headquartered in Pontiac, Ill. It has $1.2 billion in total assets and 14 banking offices in Livingston, Grundy, Tazewell, Ford, and McLean Counties in Illinois.
Ottawa Bancorp is headquartered in Ottawa, Ill. OSB Community Bank has total assets of approximately $356 million and operates 4 banking offices in La Salle and Grundy Counties.
“We are proud to partner with Bank of Pontiac and believe this combination is an excellent opportunity for our customers, employees, and shareholders,” Craig Hepner, president and CEO of OSB, said. “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.”
The transaction is anticipated in the first quarter of 2027. It has already been approved by both companies’ boards. It remains subject to Ottawa Bancorp shareholder approval and required regulatory approvals, along with other customary closing conditions.