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

Fort Lauderdale, FL, May 26, 2023 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (NASDAQ: OPHC) and subsidiary OptimumBank today announced the company’s total assets increased by approximately $37 million to $622 million as of March 31, 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 $18 million. Deposits grew by approximately $19 million to $527 million as of March 31, 2023 from $508 million at December 31, 2022. The Company increased the Federal Home Loan Bank advances by $15 million to $25 million as of March 31, 2023. Total stockholders’ equity increased by approximately $2 million to $65 million at March 31, 2023, from $63 million as of December 31, 2022, primarily due to proceeds from common stock sales and changes in unrealized loss on debt securities available for sale and net earnings.

Net earnings for the three months ending March 31, 2023 were $1,153,000 or $.16 per basic and diluted share compared to net earnings of $855,000 or $.17 per basic and diluted share for the three months ended March 31, 2022. The increase in net earnings during the three months ending March 31, 2023 compared to three months ending March 31, 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 $560,000. 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 $729,000 for the three months ending March 31, 2023 as compared to $650,000 for the three months ending March 31, 2022. This is due to increased wire transfer and ACH fees.

During the first quarter of 2023 the Company issued 72,221 shares of its common stock in a private placement transaction to 2 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 accordance with Section 4(a)(2) of the Securities Act as a transaction by an issuer not involving a public offering.