OptimumBank Holdings, Inc. Financial Performance for the Fourth Quarter of 2024
Rhea-AI Summary
OptimumBank Holdings (NYSE American: OPHC) reported strong financial results for the year ended December 31, 2024. The company achieved net income of $13.1 million ($1.39 per basic share), up from $6.3 million in 2023.
Key highlights include:
- Net interest income reached $34.7 million, up 46.3% year-over-year
- Net interest margin improved to 3.83% from 3.75%
- Gross loans expanded 18.2% to $804.0 million
- Total deposits grew 20.7% to $772.2 million
- Bank's Tier 1 capital ratio improved to 10.91% from 10.00%
The company's noninterest income grew 33.9% to $4.6 million, while noninterest expenses increased 32.7% to $19.5 million due to investments in talent, technology, and infrastructure. The allowance for credit losses increased 12.7% to $8.66 million, covering 115% of nonperforming loans.
Positive
- Net income doubled to $13.1 million from $6.3 million YoY
- Net interest income increased 46.3% to $34.7 million
- Gross loans grew 18.2% to $804.0 million
- Total deposits increased 20.7% to $772.2 million
- Tier 1 capital ratio improved to 10.91% from 10.00%
- Noninterest income grew 33.9% to $4.6 million
Negative
- Noninterest expenses increased 32.7% to $19.46 million
- Noninterest deposits to total deposits decreased to 27.4% from 30.5%
- Savings, NOW, and money-market deposits declined 13.8% to $278.4 million
News Market Reaction 1 Alert
On the day this news was published, OPHC gained 0.99%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Fort Lauderdale, Florida--(Newsfile Corp. - February 5, 2025) - OptimumBank Holdings, Inc. (NYSE American: OPHC) (the "Company") is a one-bank holding company and owns
Key Financial Highlights:
- Net interest income for the year ended December 31, 2024, reached
$34.7 million , reflecting a robust46.3% increase from$23.7 million for the same period in 2023. This growth was primarily driven by a43.1% rise in average interest-earning assets, alongside a slight improvement in net interest margin. - Net interest margin increased to
3.83% , up from3.75% for the year ended December 31, 2023, reflecting effective asset utilization despite the upward pressures on funding costs associated with interest-bearing deposits. - Noninterest income for the year ended December 31, 2024, grew to
$4.6 million , a33.9% increase from$3.5 million in 2023, driven primarily by higher service charges and a solid increase in other noninterest income sources.
Asset and Deposit Growth:
- Gross loans expanded to
$804.0 million as of December 31, 2024, reflecting an18.2% increase from$680.1 million as of December 31, 2023, driven by sustained demand across our lending products. - Total deposits grew by
20.7% to$772.2 million , from$639.5 million as of December 31, 2023.
Capital Position:
- The Bank's Tier 1 capital to total assets ratio improved to
10.91% as of December 31, 2024, compared to10.00% at the end of 2023, reflecting a strengthened capital base that supports continued growth.
Chairman of the Board Commentary
"We are pleased to report strong financial results for the year ended December 31, 2024, underscoring the effectiveness of our strategic initiatives and operational execution. Net income for the period increased to
"Our net interest income demonstrated robust growth, rising
"Noninterest income also showed strong growth, increasing
"From an asset perspective, our gross loans expanded to
"Looking forward, we remain confident in our ability to capitalize on the current momentum, with a strategic focus on disciplined lending, expense optimization, and innovative product offerings. Earlier this year, we successfully completed an At-the-Market offering of common stock, raising more than
Net Interest Income and Net Interest Margin
Year Ended
(Dollars in thousands)
| December 31, 2024 | December 31, 2023 | % Change | |||||||||
| Average interest-earning assets | $ | 905,036 | $ | 632,390 | |||||||
| Net interest income | $ | 34,690 | $ | 23,713 | |||||||
| Net interest margin | 8 bps |
Net interest income for the year ended 2024 was
Noninterest Income
Year Ended December 31
(Dollars in thousands)
| Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||
| Service charges and fees | $ | 3,780 | $ | 3,329 | ||
| Other | $ | 843 | $ | 123 | ||
| Total noninterest income | $ | 4,623 | $ | 3,452 |
Noninterest income for the year ended 2024 was
Noninterest Expense
Year Ended December 31
(Dollars in thousands)
| Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||
| Salaries and employee benefits | $ | 11,103 | $ | 8,261 | ||
| Professional fees | $ | 1,073 | $ | 729 | ||
| Occupancy and equipment | $ | 884 | $ | 773 | ||
| Data processing | $ | 2,273 | $ | 1,699 | ||
| Regulatory assessment | $ | 799 | $ | 550 | ||
| Litigation Settlement | - | $ | 375 | |||
| Other | $ | 3,328 | $ | 2,274 | ||
| Total noninterest expenses | $ | 19,460 | $ | 14,661 |
Noninterest expenses for the year ended December 31, 2024, totaled
A significant portion of the increase was driven by salaries and employee benefits, which rose to
Data processing expenses grew from
Further contributing to the rise in expenses were regulatory assessments, which increased from
Additionally, occupancy and equipment expenses increased from
These investments in talent, technology, and compliance are part of our long-term strategy to position the Company for sustainable growth, allowing us to serve a broader client base while advancing past our goal of becoming a
Loans and Credit Quality
(Dollars in thousands)
| December 31, 2024 | December 31, 2023 | % Change | |||||||
| Gross Loans | $ | 804,240 | $ | 680,071 | |||||
| Less: Net Deferred Loan Fees and Costs | $ | (595 | ) | $ | (1,294 | ) | (54)% | ||
| Less: Allowance for Credit Losses | $ | (8,660 | ) | $ | (7,683 | ) | |||
| Loans, Net | $ | 794,985 | $ | 671,094 |
Change in Allowance for Credit Losses
(Dollars in thousands)
| Loan Type | Beginning Balance | Credit Loss Expense (Income) | Charge-offs | Recoveries | Ending Balance | ||||||||||
| Year Ended December 31, 2024 | $ | 8,660 | |||||||||||||
| Residential Real Estate | $ | 1,020 | $ | 94 | $ | - | $ | - | $ | 1,114 | |||||
| Multi-Family Real Estate | $ | 1,041 | $ | (255 | ) | $ | - | $ | - | $ | 786 | ||||
| Commercial Real Estate | $ | 3,793 | $ | (1,088 | ) | $ | - | $ | - | $ | 2,705 | ||||
| Land and Construction | $ | 1,019 | $ | 996 | $ | - | $ | - | $ | 2,015 | |||||
| Commercial | $ | 281 | $ | 1,411 | $ | (17 | ) | $ | - | $ | 1,675 | ||||
| Consumer | $ | 529 | $ | 1,214 | $ | (1,760 | ) | $ | 382 | $ | 365 |
| Loan Type | Beginning Balance | ACL adoption of Topic 326 | Credit Loss Expense (Income) | Charge-offs | Recoveries | Ending Balance | ||||||||||||
| Year Ended December 31, 2023 | $ | 7,683 | ||||||||||||||||
| Residential Real Estate | $ | 768 | $ | 33 | $ | 219 | $ | - | $ | - | $ | 1,020 | ||||||
| Multi-Family Real Estate | $ | 748 | $ | 327 | $ | (34 | ) | $ | - | $ | - | $ | 1,041 | |||||
| Commercial Real Estate | $ | 3,262 | $ | (367 | ) | $ | 898 | $ | - | $ | - | $ | 3,793 | |||||
| Land and Construction | $ | 173 | $ | 278 | $ | 568 | $ | - | $ | - | $ | 1,019 | ||||||
| Commercial | $ | 277 | $ | (262 | ) | $ | 250 | $ | (71 | ) | $ | 87 | $ | 281 | ||||
| Consumer | $ | 565 | $ | 209 | $ | 1,858 | $ | (2,371 | ) | $ | 268 | $ | 529 |
Year Ended December 31
(Dollars in thousands)
| December 31, 2024 | December 31, 2023 | % Change December 31, 2023 | |||||||
| Allowance for Credit Losses | $ | 8,660 | $ | 7,683 |
As of December 31, 2024, gross loans reached
The allowance for credit losses at the end of December 2024 stands at
- Residential Real Estate: Increased to
$1.11 million from$1.02 million , reflecting additional allowances following a credit loss expense of$94,000. - Multi-Family Real Estate: Decreased to
$786,000 from$1.04 million , primarily due to a$(255,000) credit recovery. - Commercial Real Estate: Declined to
$2.71 million from$3.79 million , driven by a$(1.09) million credit recovery. - Land and Construction: Increased to
$2.02 million from$1.02 million , reflecting a credit loss expense of$996,000. - Commercial Loans: Increased to
$1.68 million from$281,000 , after a credit loss expense of$1.41 million and charge-offs of$17,000. - Consumer Loans: Declined to
$365,000 from$529,000 , as charge-offs of$1.76 million were partially offset by recoveries of$382,000 and a credit loss expense of$1.21 million .
As of December 31, 2024, the allowance for credit losses stands at
Deposits
Deposits Summary
Consolidated Balance Sheets
(Dollars in thousands)
| December 31, 2024 | December 31, 2023 | % Change December 31, 2024 vs. December 31, 2023 | |||||||
| Total Deposits | $ | 772,195 | $ | 639,581 | |||||
| Noninterest-bearing demand deposits | $ | 211,900 | $ | 194,892 | |||||
| Savings, NOW, and money-market deposits | $ | 278,355 | $ | 322,932 | - | ||||
| Time deposits | $ | 281,940 | $ | 121,757 |
Deposits Summary
Year Ended December 31
(Dollars in thousands)
| December 31, 2024 | December 31, 2023 | % Change December 31, 2024 vs. December 31, 2023 | ||||||||||
| Net Increase in Deposits | $ | 132,614 | $ | 131,682 | . | |||||||
Interest Rates on Deposits
(Dollars in thousands)
| Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||
| Interest-bearing Deposits: | ||||||
| Savings, NOW, and money-market deposits averages | $ | 322,507 | $ | 189,286 | ||
| Interest Expense on Savings, NOW, and money-market deposits | $ | 9,910 | $ | 4,315 | ||
| Time Deposits averages | $ | 248,676 | $ | 185,727 | ||
| Interest Expense on Time Deposits | $ | 13,053 | $ | 7,284 |
Deposit Composition
(Percentage of Total Deposits)
| December 31, 2024 | December 31, 2023 | |||||
| Uninsured Deposits to Total Deposits | ||||||
| Noninterest Deposits to Total Deposits |
Total deposits reached
Capital Requirements to be Well Capitalized
(Dollars in thousands)
| Actual | To Be Well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework) | ||||||||||||||
| Amount | % | Amount | % | ||||||||||||
| As of December 31, 2024: | |||||||||||||||
| Tier 1 Capital to Total Assets | $ | 107,112 | $ | 88,381 | |||||||||||
| As of December 31, 2023: | |||||||||||||||
| Tier 1 Capital to Total Assets | $ | 74,999 | $ | 67,499 | |||||||||||
As of December 31, 2024, the Bank's Tier 1 capital totaled
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 the 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 & Corporate Relations
Contact: Seth Denison
Telephone: (305) 401-4140
Email: SDenison@OptimumBank.com
Select Financial Data
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
| December 31, | |||||||
| 2024 | 2023 | ||||||
| Assets: | |||||||
| Cash and due from banks | $ | 13,982 | $ | 14,009 | |||
| Interest-bearing deposits with banks | 79,648 | 62,654 | |||||
| Total cash and cash equivalents | 93,630 | 76,663 | |||||
| Debt securities available for sale | 22,773 | 24,355 | |||||
| Debt securities held-to-maturity (fair value of | 281 | 360 | |||||
| Loans, net of allowance for credit losses of | 794,985 | 671,094 | |||||
| Federal Home Loan Bank stock | 2,929 | 3,354 | |||||
| Premises and equipment, net | 2,062 | 1,375 | |||||
| Right-of-use lease assets | 2,679 | 2,161 | |||||
| Accrued interest receivable | 3,348 | 2,474 | |||||
| Deferred tax asset | 3,001 | 2,903 | |||||
| Other assets | 7,245 | 6,515 | |||||
| Total assets | $ | 932,933 | $ | 791,254 | |||
| Liabilities and Stockholders' Equity: | |||||||
| Liabilities: | |||||||
| Noninterest-bearing demand deposits | $ | 211,900 | $ | 194,892 | |||
| Savings, NOW and money-market deposits | 278,355 | 322,932 | |||||
| Time deposits | 281,940 | 121,757 | |||||
| Total deposits | 772,195 | 639,581 | |||||
| Federal Home Loan Bank advances | 50,000 | 62,000 | |||||
| Federal Reserve Bank advances | - | 13,600 | |||||
| Operating lease liabilities | 2,774 | 2,248 | |||||
| Other liabilities | 4,780 | 3,818 | |||||
| Total liabilities | 829,749 | 721,247 | |||||
| Commitments and contingencies (Notes 8 and 14) | |||||||
| Stockholders' equity: | |||||||
| Preferred stock, no par value; 6,000,000 shares authorized: | - | - | |||||
| Series A Preferred, no par value, no shares issued and outstanding | - | - | |||||
| Series B Convertible Preferred, no par value, 1,520 shares authorized, 1,360 shares issued and outstanding | - | - | |||||
| Series C Convertible Preferred, no par value, 4,000,000 shares authorized, 525,641 and 0 shares issued and outstanding | - | - | |||||
| Common stock, $.01 par value; 30,000,000 shares authorized, 11,636,092 and 7,250,219 shares issued and outstanding | 116 | 72 | |||||
| Additional paid-in capital | 111,485 | 91,221 | |||||
| Accumulated deficit | (2,847 | ) | (15,971 | ) | |||
| Accumulated other comprehensive loss | (5,570 | ) | (5,315 | ) | |||
| Total stockholders' equity | 103,184 | 70,007 | |||||
| Total liabilities and stockholders' equity | $ | 932,933 | $ | 791,254 | |||
Consolidated Statements of Earnings
(In thousands, except per share amounts)
| Year Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Interest income: | |||||||
| Loans | $ | 52,051 | $ | 31,759 | |||
| Debt securities | 652 | 686 | |||||
| Other | 6,926 | 3335 | |||||
| Total interest income | 59,629 | 35,780 | |||||
| Interest expense: | |||||||
| Deposits | 22,963 | 11,599 | |||||
| Borrowings | 1,976 | 468 | |||||
| Total interest expense | 24,939 | 12,067 | |||||
| Net interest income | 34,690 | 23,713 | |||||
| Credit loss expense | 2,222 | 4,047 | |||||
| Net interest income after credit loss expense | 32,468 | 19,666 | |||||
| Noninterest income: | |||||||
| Service charges and fees | 3,780 | 3,329 | |||||
| Other | 843 | 123 | |||||
| Total noninterest income | 4,623 | 3,452 | |||||
| Noninterest expenses: | |||||||
| Salaries and employee benefits | 11,103 | 8,261 | |||||
| Professional fees | 1,073 | 729 | |||||
| Occupancy and equipment | 884 | 773 | |||||
| Data processing | 2,273 | 1699 | |||||
| Regulatory assessment | 799 | 550 | |||||
| Litigation Settlement | - | 375 | |||||
| Other | 3,328 | 2,274 | |||||
| Total noninterest expenses | 19,460 | 14,661 | |||||
| Net earnings before income taxes | 17,631 | 8,457 | |||||
| Income tax expense | 4,507 | 2,174 | |||||
| Net earnings | $ | 13,124 | $ | 6,283 | |||
| Net earnings per share - Basic | $ | 1.39 | $ | 0.87 | |||
| Net earnings per share - Diluted | 1.33 | 0.87 | |||||
Consolidated Statements of Comprehensive Income
(In thousands)
| Year Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Net earnings | $ | 13,124 | $ | 6,283 | |||
| Other comprehensive Income (loss): | |||||||
| Change in unrealized loss on debt securities: | |||||||
| Unrealized (loss) gain arising during the year | (367 | ) | 680 | ||||
| Amortization of unrealized loss on debt securities transferred to held-to-maturity | 2 | 5 | |||||
| Other comprehensive (loss) Income before income taxes | (365 | ) | 685 | ||||
| Deferred income taxes | 110 | (174 | ) | ||||
| Total other comprehensive (loss) Income | (255 | ) | 511 | ||||
| Comprehensive income | $ | 12,869 | $ | 6,794 | |||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/239642
FAQ
What was OPHC's net income for full-year 2024?
How much did OPHC's loan portfolio grow in 2024?
What was OPHC's deposit growth in 2024?
How did OPHC's net interest margin change in 2024?
What is OPHC's current Tier 1 capital ratio?
