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]

Note Regarding Forward-Looking Statements Certain statements in this press release are "forward-looking statements" within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences and are subject to change, possibly materially. See "Note Regarding Forward-Looking Statement ...

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]

Core Viewpoint - OptimumBank Holdings, Inc. is transferring its common stock listing from Nasdaq to NYSE American, effective December 31, 2024, aiming to enhance liquidity and visibility [1][2][3]. Company Overview - OptimumBank Holdings, Inc. is a Florida corporation established in 2004 as a bank holding company for OptimumBank, which was founded in 2000 and is a Florida state-chartered bank with FDIC-insured deposits [4]. Listing Details - The common stock of OptimumBank is expected to start trading on NYSE American under the ticker symbol "OPHC" on December 31, 2024, after trading on Nasdaq until the market closes on December 30, 2024 [2]. Strategic Implications - The Chairman of OptimumBank expressed optimism that the move to NYSE American will increase the liquidity and visibility of the company's stock, aligning it with other successful banks listed on the exchange [3]. Industry Context - NYSE American is recognized as a listing home for many regional banks, suggesting that OptimumBank will benefit from being part of a community of similar institutions [4].

Financial Performance - Return on average assets improved to 1.3% for the nine months ended September 30, 2024, compared to 1.0% for the year ended December 31, 2023[86] - Return on average equity increased to 14.9% for the nine months ended September 30, 2024, from 9.6% for the year ended December 31, 2023[86] - Net interest income for the period was $25,453 thousand, with a net interest margin of 3.82%[93] - The interest rate spread was 2.54%, slightly lower than the previous period's 2.56%[93] Asset and Loan Growth - Total assets increased by approximately $154 million to $945 million as of September 30, 2024, from $791 million at December 31, 2023[85] - Net loans grew by $98 million to $769 million at September 30, 2024, from $671 million at December 31, 2023[85] - Total assets reached $910,698 thousand, reflecting a significant increase from $620,797 thousand in the previous period[93] - Loans amounted to $743,537 thousand, generating interest income of $38,372 thousand at a yield of 6.88%[93] Deposits and Equity - Deposits increased by approximately $167 million to $807 million at September 30, 2024, from $640 million at December 31, 2023[85] - Total stockholders' equity increased by approximately $23 million to $93 million at September 30, 2024, from $70 million at December 31, 2023[85] - Stockholders' equity increased to $81,973 thousand, up from $65,004 thousand in the previous period[93] Branch Expansion and Loan Offerings - The Company opened its third branch office in North Miami Beach on July 8, 2024[84] - The Company commenced offering SBA 7A loans, totaling $4.7 million as of September 30, 2024[82] - The Company plans to focus on originating multi-family, non-owner occupied, commercial real estate, and skilled nursing receivable facility loans for future growth[80] Interest and Liabilities - Total interest-earning assets increased to $888,611 thousand, with interest income of $43,986 thousand and an average yield of 6.60%[93] - Total interest-bearing liabilities were $608,058 thousand, with interest expense of $18,533 thousand and an average rate of 4.06%[93] - Noninterest-bearing demand deposits totaled $214,773 thousand, indicating a strong liquidity position[93] Internal Controls and Legal Proceedings - The company reported no significant changes in internal control over financial reporting during the quarter[109] - There are currently no material legal proceedings involving the company[109]

Core Insights - OptimumBank Holdings, Inc. reported a net income of $3.3 million for Q3 2024, a significant increase from $1.2 million in Q3 2023, indicating strong growth in earnings and profitability [1][6] Financial Performance - Net interest income for Q3 2024 reached $8.962 million, a 51.5% increase from $5.914 million in Q3 2023, driven by a 44.9% rise in average interest-earning assets [2][8] - The net interest margin improved to 3.96% from 3.79% year-over-year, reflecting effective asset utilization despite rising costs associated with interest-bearing deposits [2][8] - Noninterest income increased to $1.115 million in Q3 2024, up 22.4% from $911,000 in Q3 2023, primarily due to higher service charges and other noninterest income [3][9] Asset and Deposit Growth - Gross loans expanded to $778 million as of September 30, 2024, reflecting a 14.4% increase from $680.1 million at the end of December 2023 [4][17] - Total deposits grew by 26.1% to $806.5 million from $639.5 million at the end of December 2023, driven by a substantial 134.5% increase in time deposits [4][20] Capital Position - The Tier 1 capital to total assets ratio improved to 10.38% as of September 30, 2024, compared to 10.00% at the end of 2023, indicating a strong capital base [5][23] Noninterest Expenses - Noninterest expenses increased by 45.0% to $5.285 million in Q3 2024, largely due to investments in salaries, employee benefits, and data processing costs [6][11] - For the nine months ended September 30, 2024, noninterest expenses reached $15.1 million, up 37.4% from $11.0 million in the same period in 2023 [11][13] Credit Quality - The allowance for credit losses increased to $8.337 million as of September 30, 2024, up 8.5% from $7.683 million at the end of December 2023, reflecting prudent risk management [17][18] - The allowance for credit losses covers 382% of nonperforming loans, reinforcing the bank's commitment to managing credit risk effectively [20]