Ottawa Savings Bancorp 8-K/A Departure of Directors or Certain Officers

Exhibit 99.1

TWIN OAKS SAVINGS BANK

BALANCE SHEET

September 30, 2014 and 2013

(Unaudited)

	September 30, 2014		September 30, 2013
ASSETS
Cash and due from banks	$	597,454	$	885,514
Interest bearing deposits		1,146,870		1,887,555
Total cash and cash equivalents		1,744,324		2,773,069
Federal funds sold		15,000		836,000
Investment certificates of deposit		1,304,861		2,149,969
Securities available for sale		26,549,917		29,252,346
Federal Home Loan Bank and Banker's Bank Stock		547,138		547,138
Loans, net of allowance for loan losses of $1,594,228 and $977,804at September 30, 2014 and 2013, respectively		30,463,576		31,112,716
Premises and equipment, net		1,007,476		1,073,866
Accrued interest receivable		268,621		302,697
Other assets		657,310		260,865
Total assets	$	62,558,223	$	68,308,666
LIABILITIES AND MEMBERS' EQUITY
Liabilities
Deposits	$	51,118,106	$	55,331,580
Federal Home Loan Bank advances		4,497,624		6,219,288
Advances from borrowers for escrow		44,451		69,472
Accrued interest payable and other liabilities		191,201		96,544
Total liabilities		55,851,382		61,716,884
Members' Equity
Retained earnings		6,340,409		6,743,756
Accumulated other comprehensive income (loss)		366,432		(152,274	)
Total equity		6,706,841		6,591,482
Total liabilities and members' equity	$	62,558,223	$	68,308,366

See accompanying notes. 

TWIN OAKS SAVINGS BANK

STATEMENT OF OPERATIONS

Six months ended September 30, 2014 and September 30, 2013

(Unaudited)

	September 30, 2014			September 30, 2013
Interest income
Loans	$	733,662		$	769,926
Securities		206,285			187,932
Mortgage-backed securities		190,185			125,893
Other		15,743			17,514
Total interest income		1,145,875			1,101,265
Interest expense
Deposits		174,198			211,632
Federal Home Loan Bank advances		67,842			96,624
Total interest expense		242,040			308,256
Net interest income		903,835			793,009
Provision for loan losses		363,000			355,000
Net interest income after provision for loan losses		540,835			438,009
Noninterest income
Service fees		50,612			51,685
Gain on sale of loans		32,065			41,722
Gain (loss) on sale of securities		35,253			(709	)
Other		18,137			5,450
Total noninterest income		136,057			98,148
Noninterest expense
Compensation and benefits		405,912			419,596
Occupancy and equipment		106,078			109,452
Data processing		95,391			90,123
Other		523,583			208,364
Total noninterest expense		1,130,964			827,535
Loss before income taxes		(454,072	)		(291,378	)
Income tax benefit		237,426			173,807
Net loss	$	(216,646	)	$	(117,571	)

See accompanying notes.

TWIN OAKS SAVINGS BANK

STATEMENT OF CASH FLOWS

Six months ended September 30, 2014 and 2013

(Unaudited)

	September 30, 2014			September 30, 2013
Cash Flows from Operating Activities
Net loss	$	(216,646	)	$	(117,571	)
Adjustments to reconcile net loss to net cashfrom operating activities:
Depreciation		45,552			49,934
Amortization of premiums and discounts		191,452			317,792
Provision for loan losses		363,000			355,000
(Gain) loss on sale of securities		(35,253	)		709
Gain on sale of loans		(32,065	)		(41,722	)
Origination of mortgage loans for sale		(506,600	)		(918,155	)
Proceeds from sale of mortgage loans		538,665			959,877
Origination of Mortgage Servicing Rights, net of amortization		(3,512	)		7,571
Loss on sale of OREO		353			-
Change in accrued interest receivable and other assets		117,555			224,502
Change in other liabilities		(227,801	)		(491,932	)
Net cash provided by operating activities		234,700			346,005
Cash Flows from Investing Activities
Purchase of investment in certificates of deposit		(1,892	)		(250,000	)
Proceeds from maturities of investments in certificates of deposit		697,000			597,000
Purchase of securities		-			(3,702,223	)
Proceeds from sales, maturities and paydowns of securities		4,338,045			4,092,509
Loan originations, net of principal payments		(743,583	)		198,887
Proceeds on sale of OREO		17,147			484,500
Net (increase) decrease in federal funds sold		394,000			1,796,000
Expenditures for premises and equipment		(900	)		(11,988	)
Net cashprovided by investing activities		4,699,817			3,204,685
Cash Flows from Financing Activities
Net change in deposits		(4,307,633	)		(2,873,669	)
Proceeds from Federal Home Loan Bank advances		1,700,000			-
Paydowns on Federal Home Loan Bank advances		(2,410,872	)		(1,010,712	)
Net change in advances from borrowers for escrow		(189,067	)		(189,765	)
Net cash used in financing activities		(5,207,572	)		(4,074,146	)
Netdecrease in cash and cash equivalents		(273,055	)		(523,456	)
Cash and cash equivalents at beginning of period		2,017,379			3,296,525
Cash and cash equivalents at end of period	$	1,744,324		$	2,773,069
Supplemental Disclosures of Cash Flow Information
Cash paid during the year for:
Interest		174,259			214,447

See accompanying note.

TWIN OAKS SAVINGS BANK

NOTE TO FINANCIAL STATEMENTS

September 30, 2014 and 2013

(Unaudited)

NOTE 1 – BASIS OF PRESENTATION

The consolidated financial statements presented in this quarterly report include the accounts of the Twin Oaks Savings Bank (the “Bank”). The consolidated financial statements of the Bank have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and predominant practices followed by the financial services industry, and are unaudited. In the opinion of the Bank’s management, all adjustments, consisting of normal recurring adjustments, which the Bank considers necessary to fairly state the Bank’s financial position and the results of operations and cash flows have been recorded. The interim financial statements at and for the six months ended September 30, 2014 should be read in conjunction with the audited financial statements and accompanying notes of the Bank for the year ended March 31, 2014. Certain amounts in the accompanying financial statements and footnotes for September 30, 2014 have been reclassified with no effect on net income or stockholders’ equity to be consistent with the March 31, 2014 classifications. The results of the Bank’s operations for any interim period are not necessarily indicative of the results of the Bank’s operations for any other interim period or for a full fiscal year.

NOTE2- LOANS

A summary of loans by major category was as follows at September 30, 2014 and 2013:

	September 30, 2014			September 30, 2013
Real estate:
1-4 family residential	$	26,144,027		$	26,022,059
Multifamily		286,700			347,944
Commercial		3,022,545			3,508,951
Land		713,221			942,100
		30,166,493			30,821,054
Automobile		947,076			803,582
Commercial		885,897			305,832
Consumer		67,913			135,827
		1,900,886			1,245,241
Gross loans	$	32,067,379		$	32,066,295
Net deferred loan origination fees		(9,575	)		24,225
Allowance for loan losses		(1,594,228	)		(977,804	)
Loans, net	$	30,463,576		$	31,112,716

(Continued)

TWIN OAKS SAVINGS BANK

NOTE TO FINANCIAL STATEMENTS

September 30, 2014 and 2013

(Unaudited)

NOTE2 - LOANS (Continued)

Activity in the allowance for loan losses during the quarter ended September 30, 2014 and 2013 was as follows:

September 30, 2014

	Real Estate
	1-4 Family Residential			Multifamily			Commercial			Land			Automobile		Commercial			Consumer			Total
Allowance for loan losses:
Beginning balance	$	1,090,779		$	3,154		$	230,704		$	144,105		$	8,399	$	9,121		$	9,673		$	1,495,935
Provision for loan losses		149,232			(287	)		181,089			6,260			1,072		33,076			(7,441	)		363,001
Loans charged off		(38,269	)		-			(155,913	)		(42,279	)		-		(28,847	)		-			(265,308	)
Recoveries		-			-			-			400			-		-			200			600
Total ending allowance balance	$	1,201,742		$	2,867		$	255,880		$	108,486		$	9,471	$	13,350		$	2,432		$	1,594,228

September 30, 2013

	Real Estate
	1-4 Family Residential		Multifamily			Commercial		Land			Automobile			Commercial		Consumer		Total
Allowance for loan losses:
Beginning balance	$	379,809	$	3,809		$	124,233	$	530,475		$	9,345		$	3,864	$	4,051	$	1,055,586
Provision for loan losses		282,176		(330	)		1,855		51,909			(1,309	)		11,091		9,608		355,000
Loans charged off		-		-			-		(459,481	)		-			-		-		(459,481	)
Recoveries		25,244		-			-		1,455			-			-		-		26,699
Total ending allowance balance	$	687,229	$	3,479		$	126,088	$	124,359		$	8,036		$	14,955	$	13,659	$	977,80

(Continued)

TWIN OAKS SAVINGS BANK

NOTE TO FINANCIAL STATEMENTS

September 30, 2014 and 2013

(Unaudited)

NOTE2- LOANS(Continued)

The recorded investment in nonaccrual and loans past due over 90 days still on accrual at September 30, 2014 and 2013 was as follows:

September 30, 2014

			Loans Past
			Due Over
			90 Days Still
	Nonaccrual		Accruing
1-4 family residential	$	1,865,992	$	-
Commercial real estate		163,754		-
Land		54,649		-
Consumer		4,491		-
Total	$	2.088,886	$	-

September 30, 2013

			Loans Past
			Due Over
			90 Days Still
	Nonaccrual		Accruing
1-4 family residential	$	763,091	$	-
Commercial real estate		209,199		-
Land		49,373		-
Consumer		8,479		-
Total	$	1,030,142	$	-

The aging of the recorded investment in past due loans at September 30, 2014 and 2013 was as follows:

September 30, 2014

	30 - 59		60 - 89		Greater than
	Days		Days		89 Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
1-4 family residential	$	7,729	$	245,562	$	1,491,718	$	1,745,009	$	24,339,018	$	26,144,027
Multifamily		-		-		-		-		286,700		286,700
Commercial real estate		-		-		163,754		163,754		2,858,791		3,022,545
Land		-		54,649		-		54,649		658,572		713,221
Automobile		-		-		-		-		947,076		947,076
Commercial		-		-		-		-		885,897		885,897
Consumer		-		-		4,491		4,491		63,422		67,913
Total	$	7,729	$	300,211	$	1,659,963	$	1,967,903	$	30,099,476	$	32,067,379

TWIN OAKS SAVINGS BANK

NOTE TO FINANCIAL STATEMENTS

September 30, 2014 and 2013

(Unaudited)

September 30, 2013

	30 - 59		60 - 89		Greater than
	Days		Days		89 Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
1-4 family residential	$	364,577	$	471,016	$	392,118	$	1,227,711	$	24,794,348	$	26,022,059
Multifamily		-		-		-		-		347,944		347,944
Commercial real estate		209,199		-		-		209,199		3,299,752		3,508,951
Land		-		56,221		-		56,221		885,879		942,100
Automobile		-		-		-		-		803,582		803,582
Commercial		-		12,017		-		12,017		293,815		305,832
Consumer		-		-		8,499		8,499		127,328		135,827
Total	$	573,776	$	539,254	$	400,597	$	1,513,647	$	30,552,648	$	32,066,295

Credit Quality Indicators:

The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a periodic basis. The Bank uses the following definitions for risk ratings:

Watch.Loans classified as watch are those requiring more attention to ensure timely and adequate financial information is received and that the business is being prudently managed, given economic and market conditions.

Special Mention.Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank's credit position at some future date.

Substandard.Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

TWIN OAKS SAVINGS BANK

NOTE TO FINANCIAL STATEMENTS

September 30, 2014 and 2013

(Unaudited)

Based on the most recent analysis performed, the risk category of loans by class of loans was as follows at September 30, 2014 and 2013:

September 30, 2014

					Special
	Pass		Watch		Mention		Substandard		Doubtful		Total
1-4 family residential	$	22,521,458	$	645,347	$	791,128	$	1,515,647	$	670,447	$	26,144,022
Multifamily		286,700		-		-		-		-		286,700
Commercial real estate		2,806,664		-		52,127		-		163,754		3,022,545
Land		619,928		38,634		-		54,659		-		713,221
Automobile		937,663		9,413		-		-		-		947,076
Commercial		885,897		-		-		-		-		885,897
Consumer		63,422		-		-		4,491		-		67,913
Total	$	28,121,732	$	693,394	$	243,255	$	1,574,797	$	834,201	$	32,067,379

September 30, 2013

					Special
	Pass		Watch		Mention		Substandard		Doubtful		Total
1-4 family residential	$	22,229,992	$	1,631,666	$	1,042,102	$	1,118,299	$	-	$	26,022,059
Multifamily		347,944		-		-		-		-		347,944
Commercial real estate		3,246,284		53,468		-		209,199		-		3,508,951
Land		787,785		-		56,221		98,094		-		942,100
Automobile		798,347		13,235		-		-		-		803,582
Commercial		293,815		-		-		12,017		-		305,832
Consumer		127,348		-		-		8,479		-		135,827
Total	$	27,823,515	$	1,698,369	$	1,098,323	$	1,446,088	$	-	$	32,066,295