Core Insights - OptimumBank Holdings, Inc. reported a net income of $3.9 million for Q1 2025, reflecting a 63% increase year-over-year, driven by stronger net interest income and credit loss reversals [1][5][6] Financial Performance - Net interest income for Q1 2025 reached $9.43 million, a 21.6% increase from $7.75 million in Q1 2024, with a net interest margin improvement to 4.06% from 3.70% [7][9] - Noninterest income remained stable at $1.23 million, slightly down from $1.24 million in the same quarter last year [10] - Total noninterest expenses increased by 19.5% to $5.63 million, primarily due to investments in personnel and infrastructure [13][16] Asset and Deposit Growth - Gross loans increased by 5.9% year-over-year to $800.2 million, while total deposits grew by 6.8% to $852.9 million [17][20] - Noninterest-bearing demand deposits rose by 8.2% to $235.8 million, while time deposits surged by 24.9% to $327.4 million [20] Capital Position - The Bank's Tier 1 capital ratio improved to 11.71% as of March 31, 2025, up from 10.20% a year earlier, indicating a strengthened capital base [3][22] - Tier 1 capital totaled $112.3 million, reflecting a growth of $24 million from the previous year [22] Recent Developments - The Bank successfully resolved a non-performing loan, reducing non-performing assets by approximately $5.6 million, which was nearly 75% of the total NPA balance as of March 31, 2025 [4]

Financial Performance - Return on average assets increased to 1.6% for the three months ended March 31, 2025, compared to 1.4% for the previous period[99] - Return on average equity increased to 14.7% for the three months ended March 31, 2025, compared to 7.3% for the previous period[99] - Net interest income for the three months ended March 31, 2025, was $9,426 thousand, compared to $7,751 thousand for the same period in 2024[107] - Total interest income increased by $1.5 million to $15 million for the three months ended March 31, 2025, representing an 11% increase compared to the same period in 2024[110][111] - Net interest income rose by $1.7 million to $9.4 million, marking a 22% increase year-over-year[110] - Net earnings for the three months ended March 31, 2025, were $3.9 million, or $0.33 per basic share, reflecting a 63% increase from $2.4 million, or $0.31 per basic share, in 2024[110] - Net earnings before income taxes increased by $2.0 million to $5.2 million, a 61% increase compared to the prior year[110] - Income taxes for the three months ended March 31, 2025, were $1.3 million, up 57% from $847,000 in the same period of 2024[110] Asset and Liability Management - Total assets increased by approximately $44.6 million to $977.5 million at March 31, 2025, from $932.9 million at December 31, 2024[98] - Deposits grew by approximately $80.7 million to $852.9 million at March 31, 2025, from $772.2 million at December 31, 2024[98] - Net loans decreased by $3.7 million to $791.2 million at March 31, 2025, from $794.9 million at December 31, 2024[98] - The Company had outstanding borrowings of $10 million against its $233.2 million in established borrowing capacity with the FHLB as of March 31, 2025[104] - Total stockholders' equity increased by approximately $4.8 million to $108 million at March 31, 2025, from $103.2 million at December 31, 2024[98] Credit Quality - The allowance for credit losses totaled $8.3 million, or 1.03% of loans outstanding, as of March 31, 2025, down from $8.7 million, or 1.08%, at the end of 2024[113] - The company recorded a credit loss reversal of $0.2 million for the three months ended March 31, 2025, compared to a credit loss expense of $1.1 million in the same period of 2024, indicating a significant improvement in credit quality[113] Noninterest Income and Expenses - Total noninterest expenses increased to $5.6 million, a 19% rise from $4.7 million in the same period last year, primarily due to higher employee compensation and professional fees[116] - Total noninterest income remained stable at $1.2 million for both periods, indicating consistent performance in wire transfer and ACH fees[115] Management and Controls - The company’s management confirmed the effectiveness of disclosure controls and procedures as of the end of the reporting period[118] Loan Portfolio - The SBA loan portfolio totaled $9.9 million, or 1.2% of total loans, up from $9 million, or 1.1% of loans at December 31, 2024[93] Interest Rate Metrics - The interest rate spread increased to 2.87% for the three months ended March 31, 2025, compared to 2.48% for the previous period[109]

Core Insights - OptimumBank Holdings, Inc. reported its strongest performance in nearly 25 years during its Annual Shareholder Meeting, aiming to surpass $1 billion in assets [1][2] - The bank's financial highlights for 2024 include total assets rising 18% to nearly $933 million, equity increasing 47% to $103 million, and net earnings reaching $13.1 million [7] Financial Performance - Return on equity (ROE) stands at 15.28%, with core ROE exceeding 23% [3] - Net interest margin hit a 10-year high of 3.83% [7] - Loans surpassed $800 million, driven by a six-fold increase in SBA production [7] Employee and Shareholder Engagement - A majority of OptimumBank employees are also shareholders, indicating strong internal alignment and motivation [4] - The bank's stock is currently trading below book value, with management expressing confidence that the market will recognize its high performance [5] Strategic Outlook - The bank is focused on anti-dilution strategies and plans to raise capital only above book value, with potential capital raises of $10 to $30 million in 2025 [5][8] - The bank is selective in its M&A approach, seeking partners that align with its culture and contribute long-term [8] Technology and Innovation - A new open-architecture, API-capable core banking platform is set to launch in October, promising a significantly improved customer experience [9] - The bank is also upgrading its website and rolling out new front-end features [9] Business Focus - OptimumBank specializes in traditional banking services, including business banking, business lending, SBA lending solutions, treasury management, and personal banking [11]

Core Insights - OptimumBank Holdings, Inc. reported its best year in company history, achieving a Core Return on Average Equity (ROAE) exceeding 23% for fiscal year 2024 [1] - The company will present updated performance data through Q1 2025 during its Annual Shareholder Meeting and Investor Day on April 29, 2025 [1][2] Company Overview - Founded in 2000 in Ft. Lauderdale, Florida, OptimumBank focuses on traditional in-person banking services for businesses and consumers in South Florida [3] - The bank offers a trusted alternative to larger financial institutions, emphasizing expertise in real estate and commercial lending [3] - OptimumBank has experienced significant growth over the past decade and aims to continue this momentum in the future [3] Financial Solutions - The bank's business and financial solutions include Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking [4]

Company Overview - OptimumBank Holdings, Inc. was founded in 2000 and is based in Ft. Lauderdale, Florida, focusing on traditional in-person banking for businesses and consumers in South Florida [2] - The bank aims to provide competitive services without the high fees associated with larger financial institutions, leveraging its expertise in real estate and commercial lending [2] - The company has experienced significant growth in the past decade and plans to continue capitalizing on this momentum in the future [2] Financial Solutions - OptimumBank offers a range of business and financial solutions, including Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking [3] Upcoming Events - The company will hold its Annual Shareholder Meeting and Investor Day on April 29, 2025, at its headquarters and virtually, starting at 10:00 am ET [1] - Shareholders of record as of March 21, 2025, will be eligible to vote at the meeting [1] - Interested participants can register for the event through a provided link or by contacting the company directly [1]

Financial Performance - The company reported a net income of $13 million for the year 2024[16]. - Net earnings for 2024 reached $13,124,000, a significant increase of 109% compared to $6,283,000 in 2023[180]. - Comprehensive income for 2024 was $12,869,000, compared to $6,794,000 in 2023, indicating strong overall financial performance[183]. - Total interest income increased to $59,629,000 in 2024, up 67% from $35,780,000 in 2023[180]. - Net interest income rose to $34.7 million in 2024, compared to $23.7 million in 2023, reflecting a significant increase of 46.4%[144]. - Total noninterest income increased by $1.2 million to $4.6 million, a 34% rise from $3.5 million in 2023[159]. - Total noninterest expenses rose by $4.8 million to $19.5 million, a 33% increase compared to $14.7 million in 2023[160]. - Credit loss expense decreased by $1.8 million to $2.2 million, a 45% reduction from $4.0 million in the previous year[157]. Asset and Liability Management - As of December 31, 2024, the company had total assets of $933 million, net loans of $795 million, total deposits of $772 million, and stockholders' equity of $103 million[16]. - Total assets grew to $933 million in 2024, an increase of $142 million from $791 million in 2023[149]. - Total liabilities reached $830 million in 2024, up by $109 million from $721 million in 2023, primarily due to a $133 million increase in total deposits[150]. - The Bank's liquidity is primarily derived from its deposit base, which is essential for meeting current and future obligations[116]. - The allowance for credit losses totaled $8.6 million, or 1.08% of loans outstanding, as of December 31, 2024, compared to $7.6 million, or 1.13%, in 2023[157]. Loan Portfolio and Growth - The loan portfolio increased by $124 million during 2024, with significant growth in commercial real estate loans by $63 million and land and construction loans by $45 million[26]. - The total loan portfolio increased to $804.24 million in 2024, up from $680.07 million in 2023, reflecting a growth of 18.2%[109]. - The Bank's commercial real estate loans comprised 60.39% of the total loan portfolio in 2024, a slight decrease from 62.15% in 2023[109]. - Small business loans grew to $9 million at December 31, 2024, up from $1.4 million at December 31, 2023, representing 1.1% of the total loan portfolio[24]. - The Bank's loan portfolio is concentrated in real estate, with 87% secured by mortgages, and approximately 60% of the total loan portfolio secured by commercial real estate properties[27]. Capital and Regulatory Compliance - The Bank's actual Tier 1 Capital increased from $74,999 thousand (10.00%) as of December 31, 2023, to $107,112 thousand (10.91%) as of December 31, 2024[51]. - The company reported a Tier 1 leverage ratio of 10.91% as of December 31, 2024[152]. - The maximum dividend payable by the Bank to the Company as of December 31, 2024, was $26.1 million, subject to regulatory approval[61]. - The Bank is subject to comprehensive regulation and supervision by the FDIC and the Florida Office of Financial Regulation, which includes periodic examinations and reporting requirements[60]. - The Bank's ability to pay dividends is contingent upon its retained net profits and regulatory compliance, particularly regarding capital ratios[61]. Deposits and Funding Sources - Total deposits increased to $772.2 million in 2024, up from $639.6 million in 2023, representing a growth of 20.7%[140]. - Deposits increased by $133 million in 2024, primarily due to a $17 million increase in noninterest-bearing demand deposits and a $160 million increase in time deposits[139]. - Brokered deposits comprised 19% of total deposits in 2024, a new addition compared to none in 2023, while listing service deposits accounted for 14% in 2024[141]. - The bank's deposits included brokered deposits for the first time in 2024, indicating a diversification of funding sources[30]. Branch Expansion and Market Presence - The Bank operates a main office and three branch offices, with a new branch opened in Miami-Dade County in Q3 2024[90]. - The company opened a third branch office in Miami-Dade County in Q3 2024, expanding its market presence[191]. Interest Rate Management - The total rate-sensitive assets amounted to $909,871 thousand, while total rate-sensitive liabilities were $610,295 thousand, resulting in a negative gap of $298,322 thousand[132]. - The cumulative gap to total assets ratio was -32% for the one year or less period, indicating a significant interest rate sensitivity[132]. - The Bank's management emphasizes the origination of adjustable-rate loans and building a stable core deposit base to mitigate interest rate risk[129]. - The Bank's policies include matching deposit maturities with loan repricing timeframes to minimize adverse effects from interest rate changes[129]. Stock and Shareholder Information - The Company’s common stock began trading on NYSE American effective December 31, 2024, after being listed on NASDAQ until that date[59]. - The Company had approximately 1,264 registered shareholders of its common stock as of December 31, 2024[96]. - The Company issued 2,311,552 shares of common stock in a private placement transaction at prices ranging from $3.90 to $4.25 per share during Q1 2024[97]. - The Company registered an At-the-Market (ATM) Offering for up to $25 million in shares of common stock during Q3 2024[98]. - The Company issued 1,629,132 shares through the ATM in Q4 2024 at prices ranging from $4.56 to $5.49 per share[99]. - The Company does not plan to pay any dividends in the foreseeable future, intending to retain income to enhance its financial position and support the Bank's growth[101].

Core Points - OptimumBank has been designated as a Preferred Lender under the U.S. Small Business Administration (SBA) Preferred Lenders Program, which streamlines the loan approval process for small businesses [1][2] - This designation allows OptimumBank to make final credit decisions on behalf of the SBA, significantly accelerating the loan approval timeline and enhancing financing solutions for small business owners [2][3] - The SBA 7(a) loans available through OptimumBank can be used for various business needs, with amounts up to $5 million and favorable terms [2] Company Overview - OptimumBank, founded in 2000 in Ft. Lauderdale, Florida, focuses on service-oriented banking with reasonable fees compared to larger financial institutions [4] - The bank has experienced significant growth in the past decade and aims to capitalize on this momentum in the future [4] - OptimumBank offers a range of financial solutions, including Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking [4] Industry Context - The SBA Preferred Lenders Program is designed for high-volume, experienced SBA lenders with a proven track record, granting them the authority to approve, close, service, and liquidate SBA-guaranteed loans [3]

Core Insights - OptimumBank Holdings, Inc. reported a significant increase in net income for the year ended December 31, 2024, reaching $13.1 million, or $1.39 per basic share, compared to $6.3 million, or $0.87 per basic share, in 2023, indicating strong growth in revenue and profitability driven by net interest income and noninterest income [1][4][28]. Financial Performance - Net interest income for 2024 was $34.7 million, a 46.3% increase from $23.7 million in 2023, primarily due to a 43.1% rise in average interest-earning assets [5][6]. - Noninterest income grew to $4.6 million, a 33.9% increase from $3.5 million in 2023, driven by higher service charges and diversification of revenue sources [5][7]. - Total noninterest expenses increased by 32.7% to $19.5 million, reflecting strategic investments in talent, technology, and infrastructure [8][9]. Asset and Deposit Growth - Gross loans reached $804 million, an 18.2% increase from $680.1 million in 2023, driven by sustained demand across lending products [5][15]. - Total deposits grew by 20.7% to $772.2 million, with noninterest-bearing deposits increasing by 8.7% [17][21]. Capital Position - The Bank's Tier 1 capital to total assets ratio improved to 10.91% as of December 31, 2024, up from 10.00% at the end of 2023, indicating a strengthened capital base [3][22]. - Tier 1 capital totaled $107.1 million, exceeding the requirements under the CBLR Framework by more than $18.7 million [22]. Credit Quality - The allowance for credit losses increased by 12.7% to $8.66 million, covering 115% of nonperforming loans totaling $7.5 million, reflecting prudent risk management [16][19]. - Net loans amounted to $795 million, an 18.5% rise from $671.1 million at the end of 2023 [15][16]. Strategic Outlook - The Company remains focused on disciplined lending, expense optimization, and innovative product offerings to capitalize on current momentum [4][12]. - Investments in advanced treasury management software are expected to enhance client service and attract new business, generating additional fee income [10][12].

Core Viewpoint - Martin Schmidt has resigned from the boards of OptimumBank and OptimumBank Holding, effective January 28, 2025, but remains supportive of the Bank and Company [1][2]. Group 1: Board Changes - Martin Schmidt has served as a Director since August 2015 and has played a significant role in helping the board navigate regulatory challenges, contributing to a strong capital structure and growth for the Bank [2]. - Chairman Moishe Gubin expressed gratitude for Schmidt's contributions and noted his positive impact on the board's dynamics during meetings [2]. Group 2: Company Overview - OptimumBank Holdings, Inc. operates as a bank holding company providing a range of consumer and commercial banking services [3]. - The company offers various banking products including savings accounts, loans, debit and ATM cards, and internet banking services, and manages foreclosed real estate [4]. - Founded in 2000, OptimumBank is based in Fort Lauderdale, Florida, and operates through banking offices in Broward County [4].

Company Overview - OptimumBank will present at the Sequire Investor Summit 2025, scheduled for January 21st-23rd, 2025, in San Juan, Puerto Rico [1] - The bank was founded in November 2000 by local Broward County businessmen to create a community bank that serves local investors [3] Industry Context - Puerto Rico attracts many family offices, funds, and wealthy investors due to its favorable tax benefits, allowing US citizens to pay virtually no federal or state income taxes [2] - Local banks like OptimumBank are becoming rarer in Florida, emphasizing the importance of combining internet and traditional community banking [4] Business Model - OptimumBank focuses on traditional in-person banking for businesses and consumers in Florida, offering lower fees compared to larger financial institutions [4] - The bank has expertise in real estate and commercial lending, positioning itself as a community-focused financial institution [4]