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

Fort Lauderdale, FL, May 26, 2023 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (NASDAQ: OPHC) and subsidiary OptimumBank today announced the company’s total assets increased by approximately $37 million to $622 million as of March 31, 2023, from $585 million at December 31, 2022, primarily due to increases in loans, and cash and cash equivalents. The growth in assets was attributable to the success of the Company’s efforts to increase loans and deposits from new customers. Net loans grew by $18 million. Deposits grew by approximately $19 million to $527 million as of March 31, 2023 from $508 million at December 31, 2022. The Company increased the Federal Home Loan Bank advances by $15 million to $25 million as of March 31, 2023. Total stockholders’ equity increased by approximately $2 million to $65 million at March 31, 2023, from $63 million as of December 31, 2022, primarily due to proceeds from common stock sales and changes in unrealized loss on debt securities available for sale and net earnings.

Net earnings for the three months ending March 31, 2023 were $1,153,000 or $.16 per basic and diluted share compared to net earnings of $855,000 or $.17 per basic and diluted share for the three months ended March 31, 2022. The increase in net earnings during the three months ending March 31, 2023 compared to three months ending March 31, 2022 is primarily attributed to an increase in net interest income and non-interest income, partially offset by the increase in credit loss expense and non-interest expense. Loan growth for the period required an increase in the allowance for credit losses of $560,000. However, there have been relatively no losses in recent years besides some write-offs in the bank’s high-yielding consumer loan portfolio.

Noninterest income increased to $729,000 for the three months ending March 31, 2023 as compared to $650,000 for the three months ending March 31, 2022. This is due to increased wire transfer and ACH fees.

During the first quarter of 2023 the Company issued 72,221 shares of its common stock in a private placement transaction to 2 accredited investors at a price of $4.50 per share. None of these investors was an officer, director or affiliate of the Company. The Company issued these shares in accordance with Section 4(a)(2) of the Securities Act as a transaction by an issuer not involving a public offering.

The most recent performance measurements ranked OptimumBank within the top ten Florida banks in both asset and loan growth over the last twelve months. Also, OptimumBank ranked within the top twenty-five most efficiently run banks in Florida and for having the highest return on average assets for C-Corps status institutions during the first quarter of 2023.

Chairman Moishe Gubin continues to facilitate the execution for the OptimumBank’s strategic plan which encompasses expanding lending capabilities, increasing the Bank’s core deposit base primarily with fee-based income businesses and by evaluating opportunistic M&A opportunities. Gubin remains focused on increasing the Loan-to-Deposit ratio by maintaining competitive pricing of the Bank’s products to improve the Net Interest Margin (NIM) to reach its maximum potential. The Bank continues to focus on the customer on its path to grow larger and stronger while still achieving community banking at its best, where customers are a name, not a number.

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.

Investor Relations:
OptimumBank Holdings. Inc.

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