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FORT LAUDERDALE, Fla., April 30, 2013 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (Nasdaq:OPHC), the parent company of OptimumBank ("Company"), announced today a net loss for the first quarter ending March 31, 2013 of approximately $(2.2) million, or $(.07) per basic share, as compared to a net loss for the same period last year of approximately $(0.6) million, or $(.03) per basic share.
A large portion of the net loss for the 2013 first quarter was a $1.2 million write-down resulting from a lower current valuation concerning one problem loan relationship. Chairman Moishe Gubin said, "I am disappointed with the results, but we have to address our legacy issues as they surface." Chairman Gubin also commented that core performance continues to improve with the net interest margin increasing from 1.74% in March 2012 to 2.55% in March 2013, a .81% improvement. In addition, non-credit related, non-interest expense declined from the same period last year by 11.2%.
As of the end of the quarter, the loan origination pipeline was $6.6 million. Chairman Gubin said, "We are committed to lending to small and medium-sized businesses in our markets and meeting all of their banking needs. The bank recently hired Gus A. Varona, commercial bank loan officer, to help us achieve this mission and we welcome his contribution in achieving the loan production goals necessary for returning to profitability. Mr. Varona brings significant experience in all aspects of commercial lending in South Florida.
The Company reduced non-performing assets by approximately 24.6% or $8.6 million to a total of $26.4 million compared to March 31, 2012. Chairman Gubin noted, "We are making progress and continue to have a number of transactions in process that should further reduce non-performing assets in 2013." The Company has already completed multiple sales of OREO properties during the second quarter.