OptimumBank Holdings, Inc. (OPHC-NASDAQ) Announces First Quarter Results for OptimumBank

Fort Lauderdale, FL, May 11, 2023 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (OPHC-NASDAQ). OptimumBank, a Florida banking corporation (the “Bank”) reports in first quarter of 2023 a pre-tax income of $1,885,000, after a loan loss provision of $765,000. Its loan portfolio increased this quarter to $502 million, or by 4% over the prior quarter’s ending balance amount of $483 million. Despite the Federal Reserve raised the federal funds rate multiple times throughout last year, the Bank’s net interest margin now portrays a positive trend of recovery beginning at 3.40% in January and reaching 3.66% at the end of March. Noninterest income including service charges on deposit accounts and fees for other banking services generated $729,000 in other income this quarter. At March 31, 2023, deposits have grown to $528,918,000.

The Bank is well capitalized with a leverage capital ratio of 11.24% and well positioned to continue growth of its lending portfolio with a legal secured lending limit of $16,913,000. During the first three months ended in March 2023, total assets increased by $37,2 million to $620.9 million. The net change in total assets was mostly driven by a $14.3 million increases in cash and investments, plus a $18.9 million increases in loans. Total loans for first quarter 2023 amounted to $501.9 million. Over 11% of the loan portfolio is concentrated in supporting healthcare, assisted living, schools and religious institutions in our communities.

Moishe Gubin, Chairman commented: “We continue to have a growing and robust pipeline of lending opportunities month after month. With a seasoned management team and staff in place we are closing loans in a timely manner with superior customer service. The Bank’s loan portfolio growth initiatives are shortly to include both National SBA and Jumbo Residential lending. Our expectations are for continued momentum in loan growth over the remaining three quarters of this year paving the way to reaching approximately $850 million in assets and exceed $10 million in core earnings before provision expense.”

About OptimumBank Holdings, Inc.

OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides a range of consumer and commercial banking services to individuals and businesses. The company accepts demand interest-bearing and noninterest-bearing, savings, money market, NOW, and time deposit accounts, as well as certificates of deposit; and offers residential and commercial real estate, commercial, and consumer loans, as well as lending lines for working capital needs. It also provides debit and ATM cards; investment, cash management, and notary and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, drive-in tellers, and banking by mail, as well as Internet banking services. In addition, the company engages in holding, managing, and disposing foreclosed real estate. It operates through banking offices located in Broward County, Florida. OptimumBank Holdings, Inc. was founded in 2000 and is based in Fort Lauderdale, Florida.

Safe Harbor Statement:

This press release contains forward-looking statements that can be identified by terminology such as "believes," "expects," "potential," "plans," "suggests," "may," "should," "could," "intends," or similar expressions. Many forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results or implied by such statements. These factors include, but are not limited to, our limited operating history, managing our expected growth, risks associated with integration of acquired websites, possible inadvertent infringement of third-party intellectual property rights, our ability to effectively compete, our acquisition strategy, and a limited public market for our common stock, among other risks. OptimumBank Holdings, Inc.'s future results may also be impacted by other risk factors listed from time-to-time in its SEC filings. Many factors are difficult to predict accurately and are generally beyond the company's control. Forward looking statements speak only as to the date they are made and OptimumBank Holdings, Inc. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

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