OptimumBank Holdings, Inc. Financial Performance for the Third Quarter of 2024

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$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$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$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]