FORT LAUDERDALE, Fla., May 1, 2014 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (Nasdaq:OPHC), the parent company of OptimumBank ("Company"), announced today a profit of $329,512 for the first quarter ending March 31, 2014, or $.04 per basic share, as compared to a net loss for the same period last year of approximately $(2.2) million, or $(.28) per basic share adjusted for the reverse stock split that occurred on June 3, 2013. This represents the first quarterly profit since 2009.
The return to profitability occurred due to a concerted effort by Chief Executive Officer Tim Terry and his executive team working with the Board of Directors to boost revenue, drive down expenses and remove troubled assets. Most of these actions occurred during restructuring efforts in 2013. Chairman Gubin commented that "the company is fulfilling my vision of being a safe, sound and profitable institution." Efforts to improve asset quality continue and detailed asset reduction plans have been developed.
Chairman Gubin further added "the return to core profitability has clearly arrived. The Company continues with aggressive reviews of opportunities for revenue growth and operational efficiencies." Chairman Gubin noted that "compared to a year ago, the Net Interest Margin has climbed from 2.44% to 3.54%; liquid and government guaranteed securities have risen from $17 million to $32 million, access to credit has increased by $12.5 million and high cost long term debt has decreased by $20 million."
The Company's capital ratios are below its regulatory capital requirements at March 31, 2014, with a tier one leverage capital ratio of 4.62% and a total risk-based capital ratio of 7.36%. As to capital and other matters, Chairman Gubin commented, "The Company has recently received shareholder approval to issue 5,000,000 shares for a private offering to "accredited investors". Further information concerning the capital raise and other matters can be found using the "Investor Relations" link on the homepage of OptimumBank.com."
The Company offers a wide array of lending and retail banking products to individuals and businesses in Broward, Miami-Dade and Palm Beach Counties through its executive offices and three branch offices in Broward County, Florida.
This press release includes forward-looking statements and OptimumBank Holdings, Inc. intends for such statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements describe OptimumBank Holdings, Inc.'s expectations regarding future events. Future events are difficult to predict and are subject to risk and uncertainty which could cause actual results to differ materially and adversely. OptimumBank Holdings, Inc. undertakes no obligation to revise or amend any forward-looking statements to reflect subsequent events or circumstances.