OptimumBank Holdings, Inc Announces Q1 Results For OptimumBank; At March 31, 2023, Deposits Have Grown To $528,918,000
OptimumBank Holdings, Inc. (OPHC-NASDAQ). OptimumBank, a Florida banking corporation (the "Bank") reports in first quarter of 2023 a pre-tax income of $1,885,000, after a loan loss provision of $765,000. Its loan portfolio increased this quarter to $502 million, or by 4% over the prior quarter's ending balance amount of $483 million. Despite the Federal Reserve raised the federal funds rate multiple times throughout last year, the Bank's net interest margin now portrays a positive trend of recovery beginning at 3.40% in January and reaching 3.66% at the end of March. Noninterest income including service charges on deposit accounts and fees for other banking services generated $729,000 in other income this quarter. At March 31, 2023, deposits have grown to $528,918,000.
The Bank is well capitalized with a leverage capital ratio of 11.24% and well positioned to continue growth of its lending portfolio with a legal secured lending limit of $16,913,000. During the first three months ended in March 2023, total assets increased by $37,2 million to $620.9 million. The net change in total assets was mostly driven by a $14.3 million increases in cash and investments, plus a $18.9 million increases in loans. Total loans for first quarter 2023 amounted to $501.9 million. Over 11% of the loan portfolio is concentrated in supporting healthcare, assisted living, schools and religious institutions in our communities.
Moishe Gubin, Chairman commented: "We continue to have a growing and robust pipeline of lending opportunities month after month. With a seasoned management team and staff in place we are closing loans in a timely manner with superior customer service. The Bank's loan portfolio growth initiatives are shortly to include both National SBA and Jumbo Residential lending. Our expectations are for continued momentum in loan growth over the remaining three quarters of this year paving the way to reaching approximately $850 million in assets and exceed $10 million in core earnings before provision expense."