OptimumBank Holdings, Inc. (OPHC-NASDAQ) Announces Second Quarter Earnings

Fort Lauderdale, FL, Aug. 10, 2023 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (NASDAQ: OPHC) and subsidiary OptimumBank today announced the company’s total assets increased by approximately $47 million to $633 million as of June 30, 2023 from $585 million at December 31, 2022, primarily due to increases in loans, and cash and cash equivalents. The growth in assets was attributable to the success of the Company’s efforts to increase loans and deposits from new customers. Net loans grew by $42 million to $519 million at June 30, 2023 from $477 million at December 31, 2022. Deposits grew by approximately $44 million to $552 million at June 30, 2023, from $477 million at December 31, 2022. The Company maintained the Federal Home Loan Bank advances at $10 million during the first six month of 2023. Total stockholders’ equity increased by approximately $3 million to $66 million at June 30, 2023, from $63 million as of December 31, 2022, primarily due to net earnings, proceeds from common stock sales and changes in unrealized loss on debt securities available for sale.

Net earnings for the six months ending June 30, 2023 were $2,465,000 or $.34 per basic and diluted share compared to net earnings of $1,800,000 or $.33 per basic and diluted share for the six months ended June 30, 2022. The increase in net earnings during the six months ending June 30, 2023 compared to six months ending June 30, 2022 is primarily attributed to an increase in net interest income and non-interest income, partially offset by the increase in credit loss expense and non-interest expense. Loan growth for the period required an increase in the allowance for credit losses of $852,000. However, there have been relatively no losses in recent years besides some write-offs in the bank’s high-yielding consumer loan portfolio.

Noninterest income increased to $1,501,000 for the six months ending June 30, 2023 as compared to $1,414,000 for the six months ending June 30, 2022. This is due to increased wire transfer and ACH fees. Net interest Margin (NIM) increased .24% to 3.73% by quarter-end June 30, 2023 as compared to 3.49% at quarter-end March 31, 2023.

During the first six months of 2023, the Company issued 72,221 shares of its common stock in a private placement transaction to two accredited investors at a price of $4.50 per share. None of these investors was an officer, director or affiliate of the Company. The Company issued these shares in reliance on Section 4(a)(2) of the Securities Act as a transaction by an issuer not involving a public offering.