OptimumBank Holdings, Inc. (OPHC-NASDAQ) Announces 2023 Full Year Results for OptimumBank (the “Bank”)

Rhea-AI Summary

OptimumBank Holdings, Inc. (OPHC) reported a net income of $13,808,107 before credit loss and tax expenses, or $7,254,285 including those expenses for the year ended December 31, 2023. The Bank's shareholder equity amounted to $70 million, with assets growing to $791,052,397, a 35.53% increase from the prior year. The loan portfolio also saw a significant increase of 40.69% to $680,069,842. The Bank's secured lending limit is now at $18,749,670 and its unsecured lending limit is at $11,249,802. Chairman Moishe Gubin highlighted the success of the strategic plan and the newly started national SBA lending program, with expectations of achieving $50MM in closings in 2024. The Bank also provided approximately $20MM in accounts receivable credit lines to Skilled Nursing Facilities. Gubin emphasized the strong support from loyal business customers and the positive impact of community outreach efforts in South Florida.

Insights

Financial Analyst

The reported net income of $13,808,107 before credit loss and tax expenses and $7,254,285 including those expenses, indicates a robust financial performance for OptimumBank Holdings. The significant growth in assets, which saw a 35.53% increase year over year, is a strong indicator of the bank's expanding operations and potentially increasing market share. The 40.69% increase in the loan portfolio suggests aggressive lending practices that could be driving revenue growth. However, investors should closely monitor the bank's credit quality and risk management practices, as rapid loan portfolio growth can sometimes lead to an uptick in non-performing assets.

Furthermore, the increase in both secured and unsecured lending limits reflects the bank's confidence in its capitalization and risk assessment capabilities. The shareholder equity of $70 million provides a cushion for potential losses and supports future growth. The unaudited nature of these results warrants caution, as the final audited figures may differ. The planned expansion into national SBA lending, with an anticipated $50MM in closings during 2024, could diversify the bank's revenue streams and enhance its profitability if executed effectively.

Market Research Analyst

The strategic focus on a national SBA lending program and providing credit lines to Skilled Nursing Facilities indicates OptimumBank is targeting niche markets with specific financial needs. This specialization can create a competitive edge and foster customer loyalty. The bank's community outreach efforts in South Florida could also be contributing to customer retention and acquisition, as local businesses often value a bank's involvement and support in their community.

However, the success of these initiatives will depend on the bank's ability to manage the associated risks, especially in sectors like healthcare which may be subject to regulatory changes and economic cycles. Investors should consider the potential for these specialized programs to generate stable income streams against the backdrop of economic fluctuations and competitive pressures within the banking industry.

Economist

The bank's performance must be contextualized within the broader economic environment. The reported results suggest that OptimumBank is outpacing industry growth norms, which could be indicative of effective strategy implementation and market conditions favorable to the banking sector. The increase in assets and loan portfolio size during a period of economic recovery or expansion could be leveraging increased demand for financial services.

The focus on Small Business Administration (SBA) loans is particularly timely, as these are often sought after during economic growth phases by businesses looking to expand. However, the bank's growth trajectory should be analyzed against macroeconomic indicators such as interest rates, inflation and GDP growth, as these will influence loan demand and repayment capabilities of borrowers, potentially impacting the bank's financial health.

Fort Lauderdale, FL, Feb. 05, 2024 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc., (NASDAQ: OPHC) (the “Bank”) ended the year with net income of $13,808,107 before credit loss and tax expenses, or $7,254,285 including those expenses. At December 31, 2023, the Bank had shareholder equity amounting to $70 million. The Bank has been growing assets year over year and ended 2023 at $791,052,397, 35.53% larger than the prior year of $583,693,724. The Bank’s loan portfolio increased 40.69% to $680,069,842 over the prior year of $483,382,801. The Bank’s secured lending limit has reached $18,749,670 and its unsecured lending limit to $11,249,802. These results are unaudited and do not reflect the consolidation of the Bank with its parent holding company, OptimumBank Holdings, Inc. Such consolidated results may be materially different than the Bank-only results reported above.

Chairman Moishe Gubin commented: “Our strategic plan, clear performance objectives and dedicated leadership have achieved well managed capital ratios, and finding the right opportunities to improve short and long-term financial performance. Our newly started national SBA lending program is expected to achieve $50MM in closings during 2024 and we have accomplished significant progress this year in providing approximately $20MM in accounts receivable credit lines to Skilled Nursing Facilities throughout the country.” Chairman Gubin continued “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 many friends and business associates. Loan approval decisions are accomplished quickly when necessary to meet the needs of our customers. Our outreach efforts in the communities throughout South Florida over the past several years have proven to be extremely rewarding.”

About OptimumBank Holdings, Inc.

OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides a range of consumer and commercial banking services to individuals and businesses. The company accepts demand interest-bearing and noninterest-bearing, savings, money market, NOW, and time deposit accounts, as well as certificates of deposit; and offers residential and commercial real estate, commercial, and consumer loans, as well as lending lines for working capital needs. It also provides debit and ATM cards; investment, cash management, and notary and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, drive-in tellers, and banking by mail, as well as Internet banking services. In addition, the company engages in holding, managing, and disposing foreclosed real estate. It operates through banking offices located in Broward County, Florida. OptimumBank Holdings, Inc. was founded in 2000 and is based in Fort Lauderdale, Florida.

Safe Harbor Statement:

This press release contains forward-looking statements that can be identified by terminology such as "believes," "expects," "potential," "plans," "suggests," "may," "should," "could," "intends," or similar expressions. Many forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results or implied by such statements. These factors include, but are not limited to, our limited operating history, managing our expected growth, risks associated with integration of acquired websites, possible inadvertent infringement of third-party intellectual property rights, our ability to effectively compete, our acquisition strategy, and a limited public market for our common stock, among other risks. OptimumBank Holdings, Inc.'s future results may also be impacted by other risk factors listed from time-to-time in its SEC filings. Many factors are difficult to predict accurately and are generally beyond the company's control. Forward looking statements speak only as to the date they are made and OptimumBank Holdings, Inc. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Investor Relations:

OptimumBank Holdings. Inc.
investor@optimumbank.com
+1.954.900.2850

FAQ

What was OptimumBank Holdings, Inc.'s net income for the year ended December 31, 2023?

The net income was $13,808,107 before credit loss and tax expenses, or $7,254,285 including those expenses.

What was the Bank's shareholder equity at December 31, 2023?

The Bank's shareholder equity amounted to $70 million.

What were the Bank's assets at the end of 2023?

The Bank's assets grew to $791,052,397, a 35.53% increase from the prior year.

What was the increase in the Bank's loan portfolio over the prior year?

The loan portfolio saw a significant increase of 40.69% to $680,069,842.

What are the Bank's secured and unsecured lending limits?

The Bank's secured lending limit is at $18,749,670 and its unsecured lending limit is at $11,249,802.

What are the expectations for OptimumBank Holdings, Inc.'s national SBA lending program in 2024?

The Bank expects to achieve $50MM in closings during 2024 with the newly started national SBA lending program.

What was the Bank's contribution to Skilled Nursing Facilities in terms of accounts receivable credit lines?

The Bank provided approximately $20MM in accounts receivable credit lines to Skilled Nursing Facilities.

What did Chairman Moishe Gubin emphasize about the Bank's relationships with business customers and community outreach efforts?

Chairman Gubin highlighted the strong support from loyal business customers and the positive impact of community outreach efforts in South Florida.