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

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].