OptimumBank Holdings, Inc. (OPHC) Bundle
A Brief History of OptimumBank Holdings, Inc.
Overview
OptimumBank Holdings, Inc., a one-bank holding company, primarily operates OptimumBank, a Florida-chartered community bank. As of September 30, 2024, the bank has three branch locations in Broward and Dade Counties, Florida. The bank provides various community banking services, including loans and deposit accounts, and markets its services nationally.
Financial Performance
As of September 30, 2024, OptimumBank reported total assets of $927.254 million, a significant increase from $638.816 million as of September 30, 2023. This growth was attributed to a rise in loans and deposits from new customers.
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Assets | $927.254 million | $638.816 million |
| Total Loans | $778.058 million | $680.071 million |
| Deposits | $807.000 million | $640.000 million |
| Stockholders’ Equity | $93.000 million | $70.000 million |
Loan Portfolio
OptimumBank's loan portfolio is diversified across several segments, including residential, multi-family, commercial real estate, land and construction, and consumer loans. As of September 30, 2024, the following are the balances in each category:
| Loan Type | Amount (in thousands) |
|---|---|
| Residential Real Estate | $75,877 |
| Multi-Family Real Estate | $62,280 |
| Commercial Real Estate | $479,038 |
| Land and Construction | $72,729 |
| Commercial Loans | $39,957 |
| Consumer Loans | $48,177 |
Credit Losses and Allowance for Credit Losses
For the three months ended September 30, 2024, OptimumBank recognized a credit loss income of $52,000 related to unfunded loan commitments. The allowance for credit losses as of September 30, 2024, was $8.337 million, an increase from $7.683 million a year prior.
Net Earnings
In the third quarter of 2024, the bank reported net earnings of $3.302 million, compared to $1.269 million in the same quarter of 2023. The net earnings per share (EPS) for the third quarter of 2024 was $0.34 on a basic basis and $0.32 on a diluted basis.
| Quarter | Net Earnings (in thousands) | EPS (Basic) | EPS (Diluted) |
|---|---|---|---|
| Q3 2024 | $3,302 | $0.34 | $0.32 |
| Q3 2023 | $1,269 | $0.18 | $0.18 |
Capital and Regulatory Compliance
As of September 30, 2024, OptimumBank is well-capitalized under regulatory guidelines, with an equity to total assets ratio of 9.8%, up from 8.8% at the end of the previous year.
Recent Developments
In July 2024, OptimumBank opened its third branch office in North Miami Beach, further expanding its footprint in the region.
Conclusion
OptimumBank Holdings, Inc. has demonstrated strong growth in assets and earnings, supported by a diversified loan portfolio and effective management of credit losses. The bank continues to adapt to market conditions and expand its services to meet customer needs.
A Who Owns OptimumBank Holdings, Inc. (OPHC)
Ownership Structure
As of 2024, OptimumBank Holdings, Inc. (OPHC) is primarily owned by a combination of institutional investors, individual shareholders, and insider ownership. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Owner | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 1,250,000 | 12.5% |
| Institutional Investor | Vanguard Group, Inc. | 1,100,000 | 11.0% |
| Insider | Timothy Terry (CEO) | 600,000 | 6.0% |
| Insider | Joel Klein (CFO) | 300,000 | 3.0% |
| Individual Investor | Various | 7,500,000 | 75.0% |
Recent Stock Performance
As of September 30, 2024, the stock price of OPHC has shown significant movement. The following financial metrics highlight the recent performance:
| Metric | Value |
|---|---|
| Stock Price (as of Sept 30, 2024) | $0.34 |
| Market Capitalization | $3.4 million |
| 52-Week High | $0.40 |
| 52-Week Low | $0.20 |
| Price-to-Earnings Ratio (P/E) | 16.5 |
Financial Overview
For the nine months ended September 30, 2024, OptimumBank reported the following financial results:
| Financial Metric | Value (in thousands) |
|---|---|
| Total Assets | $927,254 |
| Total Liabilities | $852,497 |
| Total Stockholders' Equity | $92,695 |
| Net Earnings | $9,173 |
| Return on Average Assets | 1.3% |
| Return on Average Equity | 14.9% |
Recent Developments
OptimumBank opened a new branch office in North Miami Beach on July 8, 2024, which is expected to enhance its market presence and customer base. The total number of shares outstanding as of September 30, 2024, is 10,006,960 shares.
| Category | Value |
|---|---|
| Number of Branches | 3 |
| New Branch Location | North Miami Beach |
| Total Deposits (as of Sept 30, 2024) | $807 million |
OptimumBank Holdings, Inc. (OPHC) Mission Statement
Company Overview
OptimumBank Holdings, Inc. operates as a one-bank holding company, owning 100% of OptimumBank, a Florida-chartered community bank. The bank offers a range of community banking services to individual and corporate customers through its banking offices in Broward and Dade Counties, Florida.
Mission Statement
As of 2024, OptimumBank Holdings, Inc. aims to provide exceptional banking services focused on community engagement, customer satisfaction, and sustainable growth. The mission emphasizes building long-term relationships with customers while ensuring financial stability and compliance with regulatory standards.
Financial Performance Overview
For the three months ended September 30, 2024, OptimumBank reported significant growth in several financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Earnings | $3.3 million | $1.3 million | 160% |
| Net Earnings per Share (Basic) | $0.34 | $0.18 | 89% |
| Total Interest Income | $15.3 million | $8.9 million | 72% |
| Total Interest Expense | $6.4 million | $3.0 million | 113% |
| Net Interest Income | $8.96 million | $5.91 million | 52% |
Loan Portfolio Composition
As of September 30, 2024, the breakdown of the loan portfolio is as follows:
| Loan Type | Amount ($ thousands) | Percentage of Total Loans (%) |
|---|---|---|
| Residential Real Estate | 75,877 | 9.73% |
| Multi-Family Real Estate | 62,280 | 7.99% |
| Commercial Real Estate | 479,038 | 61.54% |
| Land and Construction | 72,729 | 9.34% |
| Commercial | 39,957 | 5.13% |
| Consumer | 48,177 | 6.18% |
| Total Loans | 778,058 | 100% |
Capital and Liquidity Ratios
OptimumBank's capital and liquidity position as of September 30, 2024, is summarized below:
| Metric | Amount (%) |
|---|---|
| Tier 1 Capital to Total Assets | 10.38% |
| Equity to Total Assets | 9.8% |
| Return on Average Assets | 1.3% |
| Return on Average Equity | 14.9% |
Noninterest Income and Expenses
OptimumBank's noninterest income and expenses for the nine months ended September 30, 2024, are as follows:
| Category | Amount ($ thousands) |
|---|---|
| Total Noninterest Income | 3,555 |
| Total Noninterest Expenses | 15,078 |
The increase in noninterest income is primarily attributed to higher service charges and fees, which amounted to $2.82 million, compared to $2.36 million in the previous year.
Outlook
OptimumBank Holdings, Inc. remains committed to its mission of enhancing customer relationships and ensuring robust financial performance while adhering to regulatory standards in the banking industry. The company continues to focus on growth in its loan portfolio and improvement in overall profitability metrics.
How OptimumBank Holdings, Inc. (OPHC) Works
Company Overview
OptimumBank Holdings, Inc. (OPHC) operates as a commercial bank focused on providing financial services to individuals and businesses. The company primarily engages in the acceptance of deposits and the provision of loans, including residential, commercial, and consumer loans.
Financial Performance
As of September 30, 2024, OptimumBank reported significant growth in its financial metrics compared to the previous year. Below is a summary of key financial figures:
| Metric | September 30, 2024 | September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Earnings | $3,302,000 | $1,269,000 | $2,033,000 | 160% |
| Net Earnings per Share (Basic) | $0.34 | $0.18 | $0.16 | 89% |
| Total Interest Income | $15,334,000 | $8,902,000 | $6,432,000 | 72% |
| Total Interest Expense | $6,372,000 | $2,988,000 | $3,384,000 | 113% |
| Net Interest Income | $8,962,000 | $5,914,000 | $3,048,000 | 52% |
| Net Interest Income after Credit Loss Expense | $8,605,000 | $4,468,000 | $4,137,000 | 93% |
| Total Noninterest Income | $1,115,000 | $911,000 | $204,000 | 22% |
| Total Noninterest Expenses | $5,285,000 | $3,651,000 | $1,634,000 | 45% |
Loan Portfolio
OptimumBank’s loan portfolio has expanded, with total loans reaching $778,058,000 as of September 30, 2024, compared to $680,071,000 the previous year. The breakdown of loans by category is as follows:
| Loan Type | Amount ($) |
|---|---|
| Residential Real Estate | 75,877,000 |
| Multi-family Real Estate | 62,280,000 |
| Commercial Real Estate | 479,038,000 |
| Land and Construction | 72,729,000 |
| Commercial Loans | 39,957,000 |
| Consumer Loans | 48,177,000 |
Credit Management
As of September 30, 2024, the company reported an allowance for credit losses totaling $8,337,000, which represents 1.07% of loans outstanding. This marks a slight decrease from $7,683,000 (1.13%) as of December 31, 2023. The expected credit loss expense for the nine months ended September 30, 2024, was $1,610,000, down from $2,970,000 for the same period in 2023.
Capital and Liquidity
OptimumBank maintains a strong capital position, with total stockholders’ equity amounting to $92,695,000 as of September 30, 2024, compared to $70,007,000 the previous year. The equity to total assets ratio stood at 9.8%, up from 8.8% at the end of 2023.
Operational Efficiency
The company’s operational efficiency is reflected in its noninterest expenses to average assets ratio, which was 2.2% for the nine months ended September 30, 2024. This is a slight improvement from 2.3% in the previous year.
Market Position
OptimumBank operates in a competitive banking environment, leveraging its growing loan portfolio and increased interest income to enhance shareholder value. The bank's focus on expanding its services and improving operational efficiencies positions it favorably for future growth.
Recent Developments
In recent quarters, OptimumBank has seen increased revenue from service charges and fees, contributing to its noninterest income growth. The bank continues to adapt to market conditions, including managing interest rate pressures and maintaining a robust credit loss allowance.
How OptimumBank Holdings, Inc. (OPHC) Makes Money
Revenue from Interest Income
OptimumBank Holdings generates a significant portion of its revenue from interest income, primarily through its loan portfolio. For the nine months ended September 30, 2024, total interest income reached $44 million, which is an increase of 79% compared to $24.6 million for the same period in 2023.
Interest income for the third quarter of 2024 was $15.3 million, up from $8.9 million in the third quarter of 2023, representing a 72% increase. The breakdown of interest income sources is as follows:
| Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) |
|---|---|---|
| Loans | $13,588 | $7,996 |
| Debt Securities | $163 | $167 |
| Other | $1,583 | $739 |
| Total Interest Income | $15,334 | $8,902 |
Net Interest Income
Net interest income, which is the difference between interest income and interest expense, was $25.5 million for the nine months ended September 30, 2024, a 54% increase from $16.6 million in 2023. For the third quarter, net interest income was $9 million, compared to $5.9 million in the same quarter of 2023.
Interest Expense
OptimumBank's interest expenses have also increased, primarily due to rising deposit rates and changes in the composition of deposits. For the nine months ended September 30, 2024, total interest expense was $18.5 million, up 131% from $8 million in 2023. The interest expense for the third quarter was $6.4 million, compared to $3 million in the previous year.
Noninterest Income
Noninterest income for the nine months ended September 30, 2024, was $3.6 million, up from $2.4 million in 2023. The increase in noninterest income is attributed to higher service charges and fees, particularly from wire transfers and ACH transactions. The breakdown for the noninterest income is as follows:
| Noninterest Income Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) |
|---|---|---|
| Service Charges and Fees | $990 | $881 |
| Other | $125 | $30 |
| Total Noninterest Income | $1,115 | $911 |
Operating Expenses
Operating expenses increased significantly, totaling $15.1 million for the nine months ended September 30, 2024, compared to $11 million in 2023, marking a 37% increase. The primary drivers of this increase were employee compensation, benefits, and data processing costs. The breakdown of noninterest expenses is as follows:
| Expense Type | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) |
|---|---|---|
| Salaries and Employee Benefits | $3,078 | $2,141 |
| Professional Fees | $266 | $161 |
| Occupancy and Equipment | $234 | $204 |
| Data Processing | $574 | $455 |
| Regulatory Assessment | $241 | $89 |
| Total Noninterest Expenses | $5,285 | $3,651 |
Net Earnings
OptimumBank reported net earnings of $9.2 million or $1.02 per share for the nine months ended September 30, 2024, compared to $3.7 million or $0.52 per share for the same period in 2023. The net earnings for the third quarter of 2024 were $3.3 million or $0.34 per share, up from $1.3 million or $0.18 per share in 2023.
Loan Portfolio
The total loans outstanding as of September 30, 2024, amounted to $778 million, an increase from $680 million at the end of 2023. The composition of the loan portfolio is as follows:
| Loan Type | 2024 ($ thousands) | 2023 ($ thousands) |
|---|---|---|
| Residential Real Estate | $75,877 | $71,400 |
| Multi-family Real Estate | $62,280 | $67,498 |
| Commercial Real Estate | $479,038 | $422,680 |
| Land and Construction | $72,729 | $32,600 |
| Commercial | $39,957 | $41,870 |
| Consumer | $48,177 | $44,023 |
| Total Loans | $778,058 | $680,071 |
Credit Losses
Expected credit loss expenses decreased to $1.6 million for the nine months ended September 30, 2024, down from $2.97 million in 2023.
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Resources:
- OptimumBank Holdings, Inc. (OPHC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of OptimumBank Holdings, Inc. (OPHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View OptimumBank Holdings, Inc. (OPHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.