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].
OptimumBank(OPHC) - 2024 Q4 - Annual Report