Pontiac Bancorp in Illinois to acquire Ottawa Bancorp

Pontiac, Ill.-based Pontiac Bancorp is acquiring fellow central Illinois-based Ottawa Bancorp for $45.5 million in cash. The deal is expected to close in the first quarter of next year. The combined bank is expected to have $1.5 billion in assets and 18 branches..Pontiac Bancorp is the holding company of Bank of Pontiac. Ottawa Bancorp is the holding company of OSB Community Bank. The $1.2 billion-asset Bank of Pontiac has $1 billion in deposits, $829 million in net loans and leases and 14 branches in the state. A $356 million financial institution, OSB Community Bank has more than $290 million in deposits, more than $300 million in net loans and leases along with three branches and one loan production office. “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,” said Bank of Pontiac President and CEO Mark Donovan. OSB President and CEO Craig Hepner said the deal enables his bank “to offer expanded products, enhanced technology and greater lending capacity, while preserving the local, personal service our communities have counted on for years.” Olsen Palmer LLC, Washington, D.C., was financial advisor to Pontiac Bancorp, while Chicago-based Barack Ferrazzano Kirschbaum & Nagelberg LLP was legal counsel. Performance Trust Capital Partners LLC, Chicago, was financial advisor to Ottawa Bancorp, while Atlanta-based Kilpatrick Townsend & Stockton LLP was legal counsel.