OptimumBank Holdings, Inc. (the “Company”) (OPHC-NASDAQ) Announces First Quarter Results

Fort Lauderdale, FL, May 16, 2024 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc., (NASDAQ: OPHC) The Company had net earnings of $2.377 million for the 1^st quarter ended March 31, 2024, compared with net earnings of $1.153 million for the 1^st quarter ended March 31, 2023, an increase of 106%; in conjunction with $83 million of Stockholders’ equity. The Company’s only business is the ownership and operation of OptimumBank. To support future growth, the Company issued 2,311,552 common shares in a private placement transaction which closed in the first quarter.

The Company ended the quarter with total assets of $940 million, loans (net of allowance for credit losses) of $746 million, and total deposits of $798 million. The loan portfolio increased 50.4% to $755.9 million from the prior year 1st quarter ending balance of $502.5 million. Noninterest income generated was $1.2 million, an increase of 69.96% from the prior year 1st quarter ending balance amount of $729 thousand. This growth was accomplished while staying well capitalized by regulatory adequacy requirements throughout the year with the Company’s capital to total assets ratio at 10.20%, month-ended, March 31, 2024.

Chairman Moishe Gubin commented: “We have completed a turnaround of the Bank and have shown our ability to grow our balance sheet in a controlled manner while maintaining the same credit standards and policies we have had over the last five plus years. Although we intend to slow loan growth in the immediate term, we will continue to evaluate prudent growth opportunities, including expansion of our footprint and exploring additional lines of business. As a recent example, during the first quarter of 2024, the Bank commenced offering U.S. Small Business Administration (“SBA”) SBA 7A loans. SBA 7A loans are generally used to establish a new business or assist in the acquisition, operation, or expansion of an existing business. Consistent with the introduction of SBA lending, management will continue to identify opportunities aimed at portfolio diversification.

As to deposits, we are focused on increasing our on-balance sheet liquidity by identifying deposit growth opportunities among our existing customer base and prospects throughout Florida and the United States. The Bank is on solid footing with strong support from our loyal business customers who continue to use us as their bank of choice as well as referring us to their friends and business associates. Our outreach efforts in the communities throughout South Florida over the past several years have proven to be extremely rewarding. Finally, during the remainder of 2024, we plan to evaluate the performance of these changes to our business model and modify our plans as necessary. We also plan to review our human resources to determine if our current organizational chart is appropriate for our newly $1 billion bank.”