OptimumBank Celebrates Record Year and Bold Outlook at 2025 Annual Shareholder Meeting

Rhea-AI Summary

OptimumBank Holdings (OPHC) held its 2025 Annual Shareholder Meeting, showcasing record-breaking 2024 performance. Key financial highlights include: 18% growth in total assets to $933 million, 47% increase in equity to $103 million, and net earnings of $13.1 million. The bank achieved a core ROAE exceeding 23% and a 10-year high net interest margin of 3.83%.

Chairman Moishe Gubin emphasized the company's anti-dilutionary stance while noting potential strategic capital raises of $10-30 million in 2025. The bank plans to upgrade its technology infrastructure with a new core banking platform in October, focusing on paperless operations and enhanced customer experience. Management highlighted strong employee ownership and addressed M&A strategy, emphasizing selective approach to partnerships.

Positive

• Record financial performance with net earnings of $13.1 million
• Strong asset growth of 18% to $933 million
• Impressive equity growth of 47% to $103 million
• High profitability metrics: 23% core ROAE and 3.83% net interest margin
• Significant employee stock ownership indicating strong internal confidence
• Planned technology modernization with new core banking platform

Negative

• Stock trading below book value
• Potential dilution from planned $10-30 million capital raises in 2025
• No dividend payments planned as capital is retained for growth
• Challenges in M&A execution due to competition from credit unions

Fort Lauderdale, Florida--(Newsfile Corp. - May 2, 2025) - OptimumBank Holdings, Inc. (NYSE American: OPHC) held its Annual Shareholder Meeting on April 29, highlighting the strongest performance in the bank's close to 25-year history and laying out a strategic roadmap toward surpassing $1 billion in assets. Chairman Moishe Gubin, CEO Tim Terry, and the board addressed shareholders in a 30-minute virtual meeting, delivering record financial results and fielding audience questions on growth, technology, capital strategy, and digital innovation.

"We're not just knocking on the door of a billion-dollar balance sheet-we're charging through it, God willing," said Chairman Moishe Gubin. "2024 was a landmark year by every measure, and our focus now is sustaining this trajectory with discipline, agility, and vision."

The entire meeting can be viewed here: OptimumBank Shareholder Meeting Webcast Link

The shareholder presentation deck can be viewed here: OptimumBank Shareholder Presentation

Record-Breaking Financial Results

Chairman Gubin outlined the financial highlights of 2024:

• Total assets rose 18% to nearly $933 million

• Equity increased 47% to $103 million

• Net earnings reached $13.1 million

• Core ROAE exceeded 23%, with net interest margin hitting a 10-year high of 3.83%

• Loans surpassed $800 million, fueled by six-fold SBA production growth

"We've built a powerful and efficient platform with ROE at 15.28% and core ROE over 23%. If we stopped growing today, we could operate as an atm machine. But our sights are set higher, this is a compounding engine," Gubin added.

Shareholder Alignment and Employee Ownership

In a nod to internal culture, Gubin revealed that a majority of OptimumBank employees are also shareholders. "I was surprised; most of our employees still own their stock. That kind of belief in what we're doing is powerful. It motivates the board, and it shows we're all aligned in this journey," he said.

Addressing the company's valuation, Gubin stated, "Our stock is still trading below book. For a high-performing bank, we believe the market will catch up. There's a strong argument that more investors should own our stock."

Strategic Outlook: Capital, M&A, and Diversification

In the Q&A segment, Gubin spoke directly to investor concerns on dilution and dividends. "Our board is anti-dilutionary. I've been given authority to sell only above book," he said. "While capital raises of $10 to $30 million are possible in 2025, they will be strategic and accretive."

On dividends: "This is a business of leverage. Capital is more powerful deployed inside the bank than distributed. We're focused on growing into a top 200 publicly traded bank."

Responding to a question on M&A, Gubin explained the bank's selective approach. "We've looked at deals, but credit unions often overpay, making it difficult to compete. We want to find the right fit-a partner that joins our culture and contributes long-term."

Technology Modernization & Innovation

CEO Tim Terry and senior leadership discussed upcoming digital enhancements. In October, the bank will transition to a new open-architecture, API-capable core banking platform. "It's going to be a completely different customer experience, from business treasury services to retail onboarding. Everything will be paperless and intuitive," said Terry.

Additionally, the company upgraded its website and is rolling out new front-end features.

In a lighthearted close, a shareholder proposed allocating 1-5% of equity to Bitcoin. Gubin responded, "We're businessmen. If there's business to be had, we'd consider it."

About OptimumBank Holdings, Inc.
OptimumBank was founded in 2000 in Ft. Lauderdale, Florida. The bank focuses on traditional in-person banking with businesses and consumers residing in South Florida. Our customers have found a trusted alternative to the high fees of larger financial institutions, with unmatched expertise in real estate and commercial lending. OptimumBank has seen explosive growth over the past decade, and we look to capitalize on our momentum in the years ahead. The Company is traded on the NYSE American under ticker "OPHC".

OptimumBank's business and financial solutions include: Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking.

Note Regarding Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences and are subject to change, possibly materially. See "Note Regarding Forward-Looking Statements" and the sections entitled "Risk Factors" in the Company's filings with the Securities and Exchange Commission which are available on OptimumBank's website (Investor Relations - OptimumBank) and on the Securities and Exchange Commission's website (www.sec.gov). Any forward-looking statements made by or on behalf of OptimumBank speak only as to the date they are made, and OptimumBank does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Investor Relations & Corporate Relations
Contact: Seth Denison
Telephone: (305) 401-4140 / SDenison@OptimumBank.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/250565

FAQ

What were OptimumBank's (OPHC) key financial results for 2024?

OptimumBank reported net earnings of $13.1 million, 18% asset growth to $933 million, 47% equity increase to $103 million, and core ROAE exceeding 23% with a 3.83% net interest margin.

Is OptimumBank (OPHC) planning to raise capital in 2025?

Yes, OptimumBank is considering strategic capital raises between $10-30 million in 2025, but management emphasized these would only be executed above book value to avoid dilution.

Does OptimumBank (OPHC) pay dividends to shareholders?

No, OptimumBank currently does not pay dividends as management prefers to deploy capital for internal growth, aiming to become a top 200 publicly traded bank.

What technology upgrades is OptimumBank (OPHC) implementing in 2025?

OptimumBank is transitioning to a new open-architecture, API-capable core banking platform in October, focusing on paperless operations and enhanced customer experience.

What is OptimumBank's (OPHC) M&A strategy?

OptimumBank maintains a selective M&A approach, seeking partners that fit their culture and contribute long-term value, though they face competition from credit unions that often overpay.