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

Rhea-AI Summary

OptimumBank Holdings, Inc. (OPHC) reported a net income of $345,000 for the third quarter, despite a $523,000 provision expense for loan losses. The bank's loan portfolio increased by $41.6 million this year, benefiting from small business loans under the PPP program. Total assets surpassed $200 million, with a notable rise in fee income from commercial accounts. Chairman Moishe Gubin and CEO Tim Terry highlighted growth in income and local market acceptance, especially in supporting small businesses during the COVID-19 pandemic.

Positive

• Net income of $345,000 reported for Q3.
• Loan portfolio increased by $41.6 million this year.
• Total assets exceeded $200 million.
• Fee income from commercial accounts quadrupled year-over-year.

Negative

• Provision expense for loan losses was $523,000.

Fort Lauderdale, FL., Dec. 07, 2020 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (OPHC-NASDAQ)

Summary of Results:

OPHC is pleased to announce the Bank’s third quarter net income of $345,000, which excludes an Allowance for Loan and Lease Losses (“ALLL”) provision expense of $523,000, as the Bank has been very successful raising core deposits and reducing higher cost time deposits. The loan portfolio has increased by approximately $41.6 million so far this year. In addition, the Bank achieved greater small business loan penetration via the Small Business Administrations’ Payroll Protection Program (PPP loans).

Chairman Moishe Gubin commented, “Growth in income continues to increase as planned; and total assets now exceed $200 million. A significant increase in the size and number of commercial bank accounts has contributed to the bank’s fee income, more than quadrupling over the year due to wire and ACH fees.”

CEO Tim Terry commented, “The Bank is well received in our local area lending market for our Payroll Protection Program (PPP) lending efforts to keep small business operating in the current Covid-19 economy. Many have now made us their bank of choice.”

Multiple capital contributions have assisted this year with an increased lending activity to existing customers. Additionally, the Bank has a greater 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 Holodings, Inc.
investor@optimumbank.com
+1.954.900.2805

FAQ

What was OptimumBank Holdings' net income for Q3 2020?

OptimumBank Holdings reported a net income of $345,000 for the third quarter of 2020.

How much did OptimumBank's loan portfolio increase this year?

OptimumBank's loan portfolio increased by approximately $41.6 million so far this year.

What are the total assets of OptimumBank Holdings?

The total assets of OptimumBank Holdings exceeded $200 million.

What was the provision expense for loan losses in Q3 2020?

The provision expense for loan losses was $523,000 in Q3 2020.

How has OptimumBank performed in terms of fee income?

Fee income from commercial accounts has quadrupled over the year.