Chairman’s Comments for the Annual Shareholder Meeting June 27, 2023 - Seite 2

We continue to improve our online banking, as we believe the future lies in the online platform and to a lesser extent in the bricks and mortar locations. We continue to work towards online account opening and hope to finally get that accomplished soon. We also expect our website users to be able to select various language options to better attract foreigners doing business in America. Lastly, we imminently expect to offer our customers peer-to-peer money transfer services which will allow individuals to send and receive money with each other through connected bank accounts through Zelle.

In the last few years, we grew our SNF Accounts Receivable lending program to now include a dedicated lender and underwriter to be able to continue the growth in that segment of our loan portfolio. We felt as a board, with Michael and I being on the board and being heavily involved in the healthcare space, that we should start a lending platform for healthcare providers needing financing for government receivables. We expect the size of that segment of the loan portfolio to increase to $40MM by the end of 2023.

Previously, I said that I appreciated the confidence you have in me to lead our Board and help OptimumBank Holdings, Inc. in reaching our singular goal of bringing shareholder returns, while safeguarding the Company’s equity. 2022 was our best year and we reached a core profitability of almost $5.4MM without adding back provision. The consolidated net income after provision and income tax expense was $4,023,000. The provision for loan loss in 2022 was $3,466,000 as compared to $1,173,000 in 2021. The reason for the extraordinary high provision is from our extraordinary loan growth. I would note that other than bad debt from our consumer lending, we have not had a single dollar of loan loss in the prior few years. If you add back the provision and tax, we made in 2022 over $8.8MM and we expect that number to grow slightly to break $9MM. So far in 2023, our first quarter pre-tax income is over $1,546,000 after a loan loss provision of $726,000. In addition, we are fully allowanced. In fact, we have a higher percentage in our allowance than many of our peers, yet we have a lower bad debt as previously mentioned.