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

Rhea-AI Summary

OptimumBank Holdings reported notable growth in the second quarter of 2021, with net earnings reaching $444,000 and total assets increasing to $294.1 million. The loan portfolio expanded by $38.3 million to $190 million, reflecting a strong demand for lending services. Additionally, non-interest income from wire and ACH fees amounted to $478,000. The issuance of 200 shares of preferred stock for $5 million aims to bolster lending capabilities, supporting further growth.

Positive

• Net earnings increased to $444,000 for the three months ended June 30, 2021.
• Total assets rose by approximately $59 million to $294.1 million.
• Loan portfolio increased by $38.3 million to $190 million in six months.
• Net earnings before income taxes improved to $792,000 from a loss of $655,000 YoY.
• Non-interest income from wire and ACH fees reached $478,000.

Negative

• None.

Summary of Results:

Fort Lauderdale, FL, Aug. 13, 2021 (GLOBE NEWSWIRE) -- The Bank’s Board of Directors is pleased to report the continuation of growth in its client base, assets, revenues and earnings. Net earnings for the three months ended June 30, 2021, was $444,000 as the Bank continues to be very successful raising core deposits and reducing higher cost time deposits. The Bank’s total assets increased by approximately $59 million to $294.1 million as of June 30, 2021. The loan portfolio increased $38.3 million to 190 million for the six-month period ended June 30, 2021, as compared to $152.4 million at year end December 31, 2020. Most dramatically, net earnings before income taxes increased during the six-month period ended June 30, 2021, to $792,000 as compared to a loss of $655,000 for the six-month period ended June 30, 2020, reflecting a 221% improvement.

Chairman Moishe Gubin commented, “Growth in income continues to increase as planned; and total assets are now approaching $300 million. With a significant increase in the size and number of commercial bank accounts the Bank achieved non-interest income, due to wire and ACH fees, of $478,000 for the six-month period ended June 30, 2021.”

CEO Tim Terry commented, “The Bank is well received in our local area lending market and we have been successful in building a strong staff of lending production officers to support our growth. Additionally, strategic initiatives in servicing the banking needs of Skilled Nursing Facilities, Home Owners Associations and Condominium Associations are now taking place.”

During the second quarter of 2021, the Company issued a total of 200 shares of preferred stock to a non-related party for a purchase price of $5,000,000 to further support the Bank’s increased lending activity to existing customers. The additional capital will enable 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.

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 were the net earnings for OptimumBank Holdings in Q2 2021?

OptimumBank Holdings reported net earnings of $444,000 for the three months ended June 30, 2021.

How much did OptimumBank's total assets increase by?

Total assets increased by approximately $59 million to $294.1 million.

What is the current loan portfolio value for OptimumBank Holdings?

The loan portfolio reached $190 million as of June 30, 2021, up from $152.4 million at year-end 2020.

What improvements were made in net earnings before income taxes?

Net earnings before income taxes increased to $792,000 for the six months ended June 30, 2021, compared to a loss of $655,000 for the same period in 2020.

What was the non-interest income from wire and ACH fees for OptimumBank?

The non-interest income from wire and ACH fees was $478,000 for the six-month period ended June 30, 2021.

How much preferred stock did OptimumBank issue in Q2 2021?

OptimumBank issued 200 shares of preferred stock for $5 million.