OptimumBank Celebrates Record Year and Bold Outlook at 2025 Annual Shareholder Meeting

OptimumBank (NYSE American: OPHC) marked its 25th anniversary with a shareholder meeting that underscored its transformation into a high-growth financial institution. The April 2025 event, attended virtually by investors, revealed a year of record-breaking performance, aggressive strategic ambitions, and a clear path to surpass $1 billion in assets—a milestone that could solidify its position among top regional banks.

A Year of Exceptional Financial Momentum

The bank’s 2024 results were nothing short of remarkable. Total assets surged 18% to $933 million, with equity swelling 47% to $103 million. Net earnings hit $13.1 million, while the core Return on Average Equity (ROAE) eclipsed 23%—a decade-high net interest margin of 3.83% fueled this outperformance. The loan portfolio, now exceeding $800 million, was bolstered by a six-fold increase in SBA lending, a strategic focus that has become a cornerstone of OptimumBank’s growth engine.

Chairman Moishe Gubin framed the results as proof of the bank’s “compounding engine,” emphasizing that even without further growth, its current ROE of 15.28% could sustain returns. “This isn’t just about size—it’s about scalability,” he said, hinting at ambitions to join the ranks of the top 200 publicly traded U.S. banks.

The Strategic Playbook: Capital Efficiency and Selective Growth

OptimumBank’s roadmap hinges on three pillars: disciplined capital management, strategic M&A, and technological modernization.

Capital Strategy: Gubin made clear the board’s aversion to equity dilution, stating he’s authorized to raise capital only above book value. While a potential $10–$30 million raise in 2025 remains on the table, the priority remains reinvestment over dividends. “Capital inside the bank is more powerful,” Gubin argued, dismissing shareholder proposals for payouts.

M&A and Competition: The bank plans to pursue acquisitions but will avoid overpaying—a critique Gubin leveled at rivals, particularly credit unions. “We’re looking for cultural fits, not just deals,” he said, signaling patience in a competitive landscape.

Valuation Concerns: Despite its success, OPHC’s stock trades below book value, with a P/E ratio of 3.27 as of April 2025. Gubin sees this as a temporary undervaluation, confident the market will eventually recognize its performance.

Technology as a Growth Lever

CEO Tim Terry highlighted the bank’s $12 million investment in a new core banking platform—a move critical to future competitiveness. The system, set to launch in October 2025, will feature open architecture and API capabilities, enabling seamless integration with digital tools like paperless treasury services and retail onboarding.

A shareholder’s tongue-in-cheek suggestion to invest 1–5% of equity in Bitcoin drew a pragmatic response from Gubin: “We’re businessmen. If there’s business to be had, we’d consider it.” The moment underscored the bank’s willingness to explore innovation while maintaining its conservative financial discipline.

Shareholder Alignment and Governance

OptimumBank’s governance structure reinforces its growth narrative. A 73.94% shareholder turnout saw all director nominees elected overwhelmingly, with minimal withholdings. A key vote increased the 2018 Equity Incentive Plan’s shares to 1.55 million, signaling confidence in attracting talent. Employee ownership further aligns interests: most staff hold OPHC stock, a “powerful indicator of belief in our journey,” Gubin noted.

The Case for OPHC: Data-Driven Optimism

OptimumBank’s financial health stands out. Its P/E ratio of 3.27 is a fraction of the S&P 500 Financials sector’s average of 12.6, suggesting significant upside potential. Meanwhile, its ROAE of over 23% and $933 million in assets place it among the most efficient regional banks.

The path to $1 billion in assets—likely achievable within the next 12–18 months—would unlock new lending capacity and operational leverage. With a capital strategy focused on accretive growth and a tech overhaul set to boost efficiency, optimumbank appears poised to capitalize on its momentum.

Conclusion: A Bank Betting on Its Own Future

OptimumBank’s shareholder meeting revealed a management team unafraid to double down on its strengths. With a capital-efficient model, a disciplined M&A strategy, and a tech-driven future, the bank is positioning itself as a disruptor in a consolidating sector.

The numbers are compelling: $13.1 million in net earnings on just $51 million in market cap highlights undervaluation, while its $103 million equity and 3.83% net interest margin signal financial resilience. For investors, the question is whether the market will catch up to OPHC’s fundamentals—or if the bank’s aggressive growth will force it.

In an industry where scale often trumps agility, OptimumBank’s focus on capital efficiency and cultural cohesion could prove a winning formula. As Gubin put it, “This isn’t just about numbers—it’s about building a legacy.” For now, the numbers are on its side.