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OptimumBank(OPHC) - 2024 Q4 - Annual Report
OPHCOptimumBank(OPHC)2025-02-26 19:09

Financial Performance - The company reported a net income of 13millionfortheyear2024[16].−Netearningsfor2024reached13 million for the year 2024[16]. - Net earnings for 2024 reached 13,124,000, a significant increase of 109% compared to 6,283,000in2023[180].−Comprehensiveincomefor2024was6,283,000 in 2023[180]. - Comprehensive income for 2024 was 12,869,000, compared to 6,794,000in2023,indicatingstrongoverallfinancialperformance[183].−Totalinterestincomeincreasedto6,794,000 in 2023, indicating strong overall financial performance[183]. - Total interest income increased to 59,629,000 in 2024, up 67% from 35,780,000in2023[180].−Netinterestincomeroseto35,780,000 in 2023[180]. - Net interest income rose to 34.7 million in 2024, compared to 23.7millionin2023,reflectingasignificantincreaseof46.423.7 million in 2023, reflecting a significant increase of 46.4%[144]. - Total noninterest income increased by 1.2 million to 4.6million,a344.6 million, a 34% rise from 3.5 million in 2023[159]. - Total noninterest expenses rose by 4.8millionto4.8 million to 19.5 million, a 33% increase compared to 14.7millionin2023[160].−Creditlossexpensedecreasedby14.7 million in 2023[160]. - Credit loss expense decreased by 1.8 million to 2.2million,a452.2 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 933million,netloansof933 million, net loans of 795 million, total deposits of 772million,andstockholders′equityof772 million, and stockholders' equity of 103 million[16]. - Total assets grew to 933millionin2024,anincreaseof933 million in 2024, an increase of 142 million from 791millionin2023[149].−Totalliabilitiesreached791 million in 2023[149]. - Total liabilities reached 830 million in 2024, up by 109millionfrom109 million from 721 million in 2023, primarily due to a 133millionincreaseintotaldeposits[150].−TheBank′sliquidityisprimarilyderivedfromitsdepositbase,whichisessentialformeetingcurrentandfutureobligations[116].−Theallowanceforcreditlossestotaled133 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 7.6million,or1.137.6 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 63millionandlandandconstructionloansby63 million and land and construction loans by 45 million[26]. - The total loan portfolio increased to 804.24millionin2024,upfrom804.24 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 9millionatDecember31,2024,upfrom9 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 74,999thousand(10.0074,999 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 26.1million,subjecttoregulatoryapproval[61].−TheBankissubjecttocomprehensiveregulationandsupervisionbytheFDICandtheFloridaOfficeofFinancialRegulation,whichincludesperiodicexaminationsandreportingrequirements[60].−TheBank′sabilitytopaydividendsiscontingentuponitsretainednetprofitsandregulatorycompliance,particularlyregardingcapitalratios[61].DepositsandFundingSources−Totaldepositsincreasedto26.1 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 639.6millionin2023,representingagrowthof20.7639.6 million in 2023, representing a growth of 20.7%[140]. - Deposits increased by 133 million in 2024, primarily due to a 17millionincreaseinnoninterest−bearingdemanddepositsanda17 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 909,871thousand,whiletotalrate−sensitiveliabilitieswere909,871 thousand, while total rate-sensitive liabilities were 610,295 thousand, resulting in a negative gap of 298,322thousand[132].−Thecumulativegaptototalassetsratiowas−32298,322 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 4.25pershareduringQ12024[97].−TheCompanyregisteredanAt−the−Market(ATM)Offeringforupto4.25 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 4.56to4.56 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].