Core Insights - OptimumBank Holdings, Inc. reported a significant increase in net income for the year ended December 31, 2024, reaching 1.39 per basic share, compared to 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 23.7 million in 2023, primarily due to a 43.1% rise in average interest-earning assets [5][6]. - Noninterest income grew to 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 804 million, an 18.2% increase from 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 18.7 million [22]. Credit Quality - The allowance for credit losses increased by 12.7% to 7.5 million, reflecting prudent risk management [16][19]. - Net loans amounted to 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].
OptimumBank Holdings, Inc. Financial Performance for the Fourth Quarter of 2024