OptimumBank Holdings, Inc. (OPHC-NASDAQ) Announces

Full Year Results for OptimumBank (the “Bank”)

Fort Lauderdale, FL., Feb. 05, 2021 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (OPHC-NASDAQ)

Recap of Results:

OptimumBank (the “Bank”) ended the year with a loss of $42,000, which included an allowance for loan loss provisioning of $1,020,000. Excluding the non-cash provision expense, the Bank earned $1,062,000. Loans increased year to year to $154.9 million or 59%. Fee income generated was $293,000, a 63% increase. Changes in deposit mix reduced interest expense. Expenses were relatively flat except for required lending staff as well as wire and ACH staff. This growth was accomplished while staying well capitalized through frequent capital injections from investors.

OptimumBank- a Community Bank:

The Bank provides vital services to both small business and retail customers. Traditional services, such as checking accounts, savings, time deposits, personal credit lines, and online services are available at reduced costs, as community banks are not saddled with legacy branch and system expense. Importantly, small business loans and wire and ACH services are provided to small businesses. The Bank’s lending limit now approaches $5,000,000 per customer. Another advantage is that loan decisions are made locally and are accomplished quickly when necessary, and lending documents are provided by the customer.

Another Important Item

Due to Covid-19, many small businesses faced a massive loss of revenue while having significant employee and fixed expenses. The U.S. Government created several important tools to mitigate the harm. The Payroll Protection Plan (PPP) allowed small businesses to take out loans at low rates with a Government guarantee. The Bank was a leader in promoting and approving these loans. This placed targeted critical cash into the local economy. Additionally, the U.S. Government approved a loan deferral program that allowed businesses to defer several months of payments if they could demonstrate the need. Again, the Bank was active in consulting with clients to discuss how best to meet their needs.

The results have been impressive, as the Bank booked $19.2 million of the PPP loans in 2020 and had at their peak, 60 loans on deferment (all of which are now on regular payment plans).

Chairman Moishe Gubin commented: “Key elements of a successful community bank are products, prices, convenience and deep ties to the communities it serves. Of course, it needs solid professional staff and leadership, which OptimumBank possesses.

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.

Investor Relations:

OptimumBank Holodings, Inc.



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