OptimumBank Holdings Inc. has achieved record earnings and profitability in 2024, reporting net income of $13.1 million and Core Return on Average Equity exceeding 23 percent. This exceptional financial performance is particularly significant given the bank's seven consecutive years without any credit losses, highlighting its disciplined underwriting practices and robust risk management framework. The company's consistent track record of zero credit losses over such an extended period demonstrates operational excellence in an industry where credit quality is paramount.
The growth trajectory remains robust with expectations to surpass $1.2 billion in assets by the end of 2025 and projected expansion to $1.5 to $1.6 billion by year-end 2026. This substantial growth is supported by a clean balance sheet that includes no exposure to long-dated, low-yield bonds, providing financial stability and flexibility in a challenging interest rate environment. More information about the company's performance is available through their newsroom which provides detailed financial updates and strategic insights.
Operational achievements include attaining SBA Preferred Lender status in just over two years and building its SBA lending program from zero, demonstrating both rapid execution capabilities and strong small business demand for its services. The bank has made strategic investments in a new digital core platform expected to enhance scalability and improve user experience for both local and international clients, positioning the institution for continued technological advancement and customer service excellence.
The company maintains a strong capital position with Tier 1 capital well above regulatory minimums, providing a solid foundation for future growth and strategic initiatives. Institutional ownership includes a notable position held by Alliance Bernstein, reflecting confidence in the bank's strategy and performance metrics. Despite demonstrating stronger growth metrics, superior credit quality, and higher returns compared to industry peers, OPHC trades at a significant discount, creating what the company describes as an attractive entry point for investors seeking exposure to a high-performing community banking institution with proven risk management capabilities.
