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

Fort Lauderdale, FL, Nov. 09, 2023 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (NASDAQ: OPHC) and subsidiary OptimumBank today announced the company’s total assets increased by approximately $128 million to $713 million as of September 30, 2023 from $585 million at December 31, 2022, primarily due to increases in loans, cash and cash equivalents. The growth in assets was attributable to the success of the Company’s efforts to increase loans that were funded by increased deposits from new customers. Net loans grew by $96 million to $574 million on September 30, 2023, from $477 million at December 2022. Deposits grew by approximately $110 million to $618 million on September 30, 2023, from $508 million at December 31, 2022. The Company has an available credit line of 158MM Federal Home Loan Bank and maintained advances at $10 million during the first nine month of 2023. The Company also has a $13.6 million advance with the Federal Reserve. Total stockholders’ equity increased by approximately $4 million to $66 million on September 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 nine months ending September 30, 2023, were $3,734,000 or $.52 per basic and diluted share compared to net earnings of $3,414,000 or $.44 per basic and diluted share for the nine months ended September 30, 2022.

The allowance for credit losses totaled $7.2 million or 1.24% of loans outstanding at September 30, 2023, compared to $5.8 million or 1.20% of loans outstanding at December 31, 2022. The increase in the credit loss expense during the nine months ended September 30, 2023 was primarily due to loan volume growth and the changes in the methodology used for measuring expected credit losses. During the nine-months ended September 30, 2023, the net charge off amounting to $1.4 million primarily resulted from consumer lending.

Noninterest income increased to $2,412,000 for the nine months ending September 30, 2023 as compared to $2,106,000 for the nine months ending September 30, 2022. This is due to increased wire transfer and ACH fees. Net interest Margin (NIM) continues to remain stable at 3.79% for the three months ended September 30, 2023 as compared to 3.73% at for the three months ended June 30, 2023.