OptimumBank Holdings, Inc. (the “Company”) (OPHC-NASDAQ) Announces First Quarter Results
OptimumBank Holdings (NASDAQ: OPHC) announced its first-quarter results for 2024, highlighting a significant increase in net earnings to $2.377 million, up 106% from $1.153 million in Q1 2023. The company’s stockholders' equity stands at $83 million. In Q1, OptimumBank issued 2,311,552 common shares in a private placement, ending the quarter with total assets of $940 million, loans of $746 million, and deposits of $798 million.
The loan portfolio saw a 50.4% increase, reaching $755.9 million from $502.5 million in Q1 2023. Noninterest income rose by 69.96% to $1.2 million. The capital to total assets ratio is at 10.20% as of March 31, 2024. The bank has introduced SBA 7A loans and aims to expand its deposit base and footprint.
Chairman Moishe Gubin emphasized the bank's balanced growth and future plans for strategic expansion and portfolio diversification, while maintaining strong credit standards.
- Net earnings increased by 106% to $2.377 million from $1.153 million in Q1 2023.
- Loan portfolio grew by 50.4%, reaching $755.9 million.
- Noninterest income rose by 69.96% to $1.2 million.
- Capital to total assets ratio is strong at 10.20%.
- Introduction of SBA 7A loans for business growth.
- Stockholders' equity stands at $83 million.
- Total assets reached $940 million.
- Continued regulatory adequacy compliance.
- Issuance of 2,311,552 common shares may lead to shareholder dilution.
- Chairman indicated a future slowdown in loan growth.
- Need to evaluate the human resources organizational chart, suggesting potential restructuring challenges.
Insights
OptimumBank Holdings, Inc.'s first-quarter results indicate a significant improvement in financial performance, with net earnings doubling from
The private placement transaction, where 2,311,552 common shares were issued, likely provided the company with additional capital to support growth, contributing to the
Furthermore, the loan portfolio's 50.4% increase year-over-year to
From a financial perspective, the overall performance and strategic moves like starting SBA 7A loans should support future profitability and diversification. However, investors should monitor how the new loan offerings and growth strategies impact the bank's financial health in the longer term.
OptimumBank's expansion into SBA 7A loans represents a strategic diversification of its lending portfolio. SBA 7A loans can be particularly appealing for small businesses seeking funding for growth and operations, potentially positioning OptimumBank as a preferred lender in this segment. This move could drive future revenue growth and enhance customer loyalty, but it also introduces new risks related to the underwriting and management of these loans.
Additionally, the bank's focus on deposit growth and increasing on-balance sheet liquidity indicates a proactive approach to managing liquidity risk. In a rising interest rate environment, attracting and retaining deposits can be challenging, but it's essential for maintaining lending capabilities and financial health. The bank's strong ties with local businesses and its community outreach efforts in South Florida could provide a solid foundation for achieving these deposit growth targets.
Overall, the expansion into SBA loans and the focus on liquidity management reflect a strategic approach to growth and risk management. However, the effectiveness of these strategies will need to be assessed over time, particularly as the bank scales its operations and integrates new business lines.
Fort Lauderdale, FL, May 16, 2024 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc., (NASDAQ: OPHC) The Company had net earnings of
The Company ended the quarter with total assets of
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
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 disposal of 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
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