OptimumBank(OPHC) - 2024 Q3 - Quarterly Report

Financial Performance - Return on average assets improved to 1.3% for the nine months ended September 30, 2024, compared to 1.0% for the year ended December 31, 2023[86] - Return on average equity increased to 14.9% for the nine months ended September 30, 2024, from 9.6% for the year ended December 31, 2023[86] - Net interest income for the period was $25,453 thousand, with a net interest margin of 3.82%[93] - The interest rate spread was 2.54%, slightly lower than the previous period's 2.56%[93] Asset and Loan Growth - Total assets increased by approximately $154 million to $945 million as of September 30, 2024, from $791 million at December 31, 2023[85] - Net loans grew by $98 million to $769 million at September 30, 2024, from $671 million at December 31, 2023[85] - Total assets reached $910,698 thousand, reflecting a significant increase from $620,797 thousand in the previous period[93] - Loans amounted to $743,537 thousand, generating interest income of $38,372 thousand at a yield of 6.88%[93] Deposits and Equity - Deposits increased by approximately $167 million to $807 million at September 30, 2024, from $640 million at December 31, 2023[85] - Total stockholders' equity increased by approximately $23 million to $93 million at September 30, 2024, from $70 million at December 31, 2023[85] - Stockholders' equity increased to $81,973 thousand, up from $65,004 thousand in the previous period[93] Branch Expansion and Loan Offerings - The Company opened its third branch office in North Miami Beach on July 8, 2024[84] - The Company commenced offering SBA 7A loans, totaling $4.7 million as of September 30, 2024[82] - The Company plans to focus on originating multi-family, non-owner occupied, commercial real estate, and skilled nursing receivable facility loans for future growth[80] Interest and Liabilities - Total interest-earning assets increased to $888,611 thousand, with interest income of $43,986 thousand and an average yield of 6.60%[93] - Total interest-bearing liabilities were $608,058 thousand, with interest expense of $18,533 thousand and an average rate of 4.06%[93] - Noninterest-bearing demand deposits totaled $214,773 thousand, indicating a strong liquidity position[93] Internal Controls and Legal Proceedings - The company reported no significant changes in internal control over financial reporting during the quarter[109] - There are currently no material legal proceedings involving the company[109]