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

Rhea-AI Summary

OptimumBank Holdings, Inc. (OPHC) reported a substantial increase in total assets, rising by $17.5 million to $252.6 million as of March 31, 2021, largely due to loans and debt securities. Stockholders' equity also grew by $3.5 million to $21.3 million, driven by preferred stock sales and net earnings of $348,000. The bank's fee income surged from $47 million to $73 million over the quarter, attributed to an increase in commercial accounts. CEO Tim Terry highlighted strong local lending efforts and plans to acquire Trust Preferred Securities in 2021.

Positive

• Total assets increased by $17.5 million to $252.6 million.
• Stockholders’ equity rose by $3.5 million to $21.3 million.
• Net earnings reached $348,000.
• Fee income grew significantly, from $47 million to $73 million due to increased commercial bank accounts.

Negative

• None.

Fort Lauderdale, FL., May 11, 2021 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (OPHC-NASDAQ)

Summary of Results:

The Company’s total assets increased by approximately $17.5 million to $252.6 million at March 31, 2021, from $235.1 million at December 31, 2020, primarily due to an increase in loans and debt securities. Total stockholders’ equity increased by approximately $3.5 million to $21.3 million at March 31, 2021, from $17.8 million at December 31, 2020, primarily due to proceeds from the sale of preferred stock and net earnings of $348,000.

Chairman Moishe Gubin commented, “Growth in income continues to increase as planned; and total assets now exceed $250 million. A significant increase in the size and number of commercial bank accounts has contributed to the bank’s fee income, which has grown from $47M in December to $73M in March (total of $176M for the quarter due to wire and ACH fees).”

CEO Tim Terry commented, “The Bank was well received in our local area lending market for our ‘First Round’ of Payroll Protection Program (PPP) lending efforts to keep small business operating in time of need during the current Covid-19 economy. The successful ‘Second Round’ of loans additionally contributed to our efforts in fostering strong and long-lasting banking relationship with both our new and existing customers.”

Multiple capital contributions have assisted this year with an increased lending activity to existing customers; and, enabling the Bank’s ability to engage in lending and marketing its services to many new businesses with larger borrowing requirements as well as those seeking “Advanced Cash Management” services. The Company currently intends to acquire the remaining Trust Preferred Securities in 2021 in exchange for shares of its common stock in the second quarter.

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 Holodings, Inc.
investor@optimumbank.com
+1.954.900.2805

FAQ

What were the total assets of OptimumBank Holdings, Inc. as of March 31, 2021?

OptimumBank Holdings, Inc. reported total assets of $252.6 million as of March 31, 2021.

How much did the stockholders' equity of OPHC increase by in 2021?

The stockholders' equity of OptimumBank Holdings increased by $3.5 million to $21.3 million.

What is the net earnings figure for OptimumBank Holdings in Q1 2021?

OptimumBank Holdings reported net earnings of $348,000 for the first quarter of 2021.

How much did the fee income increase for OPHC from December 2020 to March 2021?

The fee income for OptimumBank Holdings increased from $47 million in December 2020 to $73 million in March 2021.