Loans (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Schedule of Components of Loans

	September 30,			December 31,
	2024			2023
Residential real estate	$	75,877		$	71,400
Multi-family real estate		62,280			67,498
Commercial real estate		479,038			422,680
Land and construction		72,729			32,600
Commercial		39,957			41,870
Consumer		48,177			44,023
Total loans		778,058			680,071
Deduct:
Net deferred loan fees, and costs		(807	)		(1,294	)
Allowance for credit losses		(8,337	)		(7,683	)
Loans, net	$	768,914		$	671,094

Schedule of Changes in Allowance for Loan Losses

An analysis of the change in the allowance for credit losses follows (in thousands):

	Residential			Multi-Family		Commercial			Land and
	Real Estate			Real Estate		Real Estate			Construction		Commercial			Consumer			Total
Three Months Ended September 30, 2024:
Beginning balance	$	970			712		4,303			1,677		134			412			8,208
Credit loss (expense) income		265			114		(803	)		605		47			181			409
Charge-offs		—			—		—			—		—			(366	)		(366	)
Recoveries		—			—		—			—		—			86			86
Ending balance (September 30, 2024)	$	1,235		$	826	$	3,500		$	2,282	$	181		$	313		$	8,337
Three Months Ended September 30, 2023:
Beginning balance	$	883			1,037		2,802			680		135			1,108			6,645
Credit loss (expense) income		(113	)		184		620			194		102			337			1,324
Charge-offs		—			—		—			—		(10	)		(872	)		(882	)
Recoveries		—			—		—			—		—			113			113
Ending balance (September 30, 2023)	$	770		$	1,221	$	3,422		$	874	$	227		$	686		$	7,200

During the three months period ended September 30, 2024, the Company recognized $52,000 of credit loss income related to unfunded loan commitments.

During the three months ended September 30, 2023, the Company recognized credit loss expense of $122,000 related to unfunded loan commitments.

(continued)

OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements (Unaudited)

(3) Loans, Continued.

	Residential			Multi-Family			Commercial			Land and
	Real Estate			Real Estate			Real Estate			Construction		Commercial			Consumer			Total
Nine Months Ended September 30, 2024:
Balance Dec 31, 2023	$	1,020			1,041			3,793			1,019		281			529			7,683
Credit loss (expense) income		215			(215	)		(293	)		1,263		(83	)		916			1,803
Charge-offs		—			—			—			—		(17	)		(1,424	)		(1,441	)
Recoveries		—			—			—			—		—			292			292
Ending balance (September 30, 2024)	$	1,235		$	826		$	3,500		$	2,282	$	181		$	313		$	8,337
Nine Months Ended September 30, 2023:
Beginning balance Dec 31, 2022	$	768			748			3,262			173		277			565			5,793
Additional allowance recognized due to adoption of Topic 326		33			327			(367	)		278		(262	)		209			218
Balance January 1, 2023	$	801		$	1,075		$	2,895		$	451	$	15		$	774		$	6,011
Credit loss (expense) income	$	(31	)		146			527			423		177			1,393			2,635
Charge-offs		—			—			—			—		(52	)		(1,676	)		(1,728	)
Recoveries		—			—			—			—		87			195			282
Ending balance (September 30, 2023)	$	770		$	1,221		$	3,422		$	874	$	227		$	686		$	7,200

Schedule of Age Analysis of Past-due Loans

	Accruing Loans
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Past		Total Past Due		Current		Nonaccrual Loans		Total Loans
At September 30, 2024:
Residential real estate	$	—	$	—	$	—	$	—	$	75,877	$	—	$	75,877
Multi-family real estate		—		—		—		—		62,280		—		62,280
Commercial real estate		—		—		—		—		477,620		1,418		479,038
Land and construction		—		—		—		—		72,729		—		72,729
Commercial		—		—		—		—		39,798		159		39,957
Consumer		201		66		—		267		47,305		605		48,177
Total	$	201	$	66	$	—	$	267	$	775,609	$	2,182		778,058
At December 31, 2023:
Residential real estate	$	—	$	—	$	—	$	—	$	71,400	$	—	$	71,400
Multi-family real estate		—		—		—		—		67,498		—		67,498
Commercial real estate		—		—		—		—		422,680		—		422,680
Land and construction		—		—		—		—		32,600		—		32,600
Commercial		—		—		—		—		41,870		—		41,870
Consumer		230		208		—		438		42,560		1,025		44,023
Total	$	230	$	208	$	—	$	438	$	678,608	$	1,025	$	680,071

Schedule of Amortized Cost Basis

Land and Construction	September 30, 2024		2023			2022			2021			2020		Prior			Revolving Loans (Amortized Cost Basis)		Revolving Loans Converted to Term Loans (Amortized Cost Basis)		Total
Pass	$	1,940		49,593			14,540			2,454			1,456		2,746			—		—		72,729
OLEM (Other Loans Especially Mentioned)		—		—			—			—			—		—			—		—		—
Substandard		—		—			—			—			—		—			—		—		—
Doubtful		—		—			—			—			—		—			—		—		—
Loss		—		—			—			—			—		—			—		—		—
Subtotal loans	$	1,940	$	49,593		$	14,540		$	2,454		$	1,456	$	2,746		$	—	$	—	$	72,729
Current period Gross write—offs	$	—		—			—			—			—		—			—		—		—
Residential real estate
Pass	$	7,500		21,323			23,364			9,035			4,418		7,705			—		—		73,345
OLEM (Other Loans Especially Mentioned)		—		—			—			—			—		—			—		—		—
Substandard		—		—			1,892			—			—		640			—		—		2,532
Doubtful		—		—			—			—			—		—			—		—		—
Loss		—		—			—			—			—		—			—		—		—
Subtotal loans	$	7,500	$	21,323		$	25,256		$	9,035		$	4,418	$	8,345		$	—	$	—	$	75,877
Current period Gross write—offs	$	—		—			—			—			—		—			—		—		—
Multi—family real estate
Pass	$	—		588			27,938			24,643			5,934		3,177			—		—		62,280
OLEM (Other Loans Especially Mentioned)		—		—			—			—			—		—			—		—		—
Substandard		—		—			—			—			—		—			—		—		—
Doubtful		—		—			—			—			—		—			—		—		—
Loss		—		—			—			—			—		—			—		—		—
Subtotal loans	$	—	$	588		$	27,938		$	24,643		$	5,934	$	3,177		$	—	$	—	$	62,280
Current period Gross write—offs	$	—		—			—			—			—		—			—		—		—
Commercial real estate (CRE)
Pass	$	78,965		124,673			189,639			49,515			14,512		19,134			—		—		476,438
OLEM (Other Loans Especially Mentioned)		—		—			—			—			—		—			—		—		—
Substandard		—		—			—			—			—		2,600			—		—		2,600
Doubtful		—		—			—			—			—		—			—		—		—
Loss		—		—			—			—			—		—			—		—		—
Subtotal loans	$	78,965	$	124,673		$	189,639		$	49,515		$	14,512	$	21,734		$	—	$	—	$	479,038
Current period Gross write—offs	$	—		—			—			—			—		—			—		—		—
Commercial
Pass	$	13,244		22,892			1,958			1,086			597		21			—		—		39,798
OLEM (Other Loans Especially Mentioned)		—		—			—			—			—		—			—		—		—
Substandard		—		159			—			—			—		—			—		—		159
Doubtful		—		—			—			—			—		—			—		—		—
Loss		—		—			—			—			—		—			—		—		—
Subtotal loans	$	13,244	$	23,051		$	1,958		$	1,086		$	597	$	21		$	—	$	—	$	39,957
Current period Gross write—offs	$	—		—			—			—			—		(17	)		—		—		(17	)
Consumer
Pass	$	548		5,579			3,583			1,693			57		8			36,104		—		47,572
OLEM (Other Loans Especially Mentioned)		—		—			—			—			—		—			—		—		—
Substandard		—		—			—			—			—		—			605		—		605
Doubtful		—		—			—			—			—		—			—		—		—
Loss		—		—			—			—			—		—			—		—		—
Subtotal loans	$	548	$	5,579		$	3,583		$	1,693		$	57	$	8		$	36,709	$	—	$	48,177
Current period Gross write—offs	$	—		(566	)		(650	)		(204	)		—		(4	)		—		—		(1,424	)

(continued)

OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements (Unaudited)

(3) Loans, Continued.

	Term Loans																			Revolving Loans Converted
	Amortized Cost Basis by Origination Year																	Revolving		to Term
Land and construction	2023			2022			2021			2020			2019		Prior			Loans (Amortized Cost Basis)		Loans (Amortized Cost Basis)		Total
Pass	$	11,869		$	14,933		$	2,689		$	1,488		$	1,621	$	—		$	—	$	—	$	32,600
OLEM (Other Loans Especially Mentioned)		—			—			—			—			—		—			—		—		—
Substandard		—			—			—			—			—		—			—		—		—
Doubtful		—			—			—			—			—		—			—		—		—
Loss		—			—			—			—			—		—			—		—		—
Subtotal loans	$	11,869		$	14,933		$	2,689		$	1,488		$	1,621	$	—		$	—	$	—	$	32,600
Current period Gross write-offs	$	—		$	—		$	—		$	—		$	—	$	—		$	—	$	—	$	—
Residential real estate
Pass	$	21,343		$	25,898		$	9,747		$	4,777		$	4,044	$	4,844		$	747	$	—	$	71,400
OLEM (Other Loans Especially Mentioned)		—			—			—			—			—		—			—		—		—
Substandard		—			—			—			—			—		—			—		—		—
Doubtful		—			—			—			—			—		—			—		—		—
Loss		—			—			—			—			—		—			—		—		—
Subtotal loans	$	21,343		$	25,898		$	9,747		$	4,777		$	4,044	$	4,844		$	747	$	—	$	71,400
Current period Gross write-offs	$	—		$	—		$	—		$	—		$	—	$	—		$	—	$	—	$	—
Multi-family real estate
Pass	$	1,369		$	29,561		$	27,224		$	6,086		$	2,064	$	1,194		$	—	$	—	$	67,498
OLEM (Other Loans Especially Mentioned)		—			—			—			—			—		—			—		—		—
Substandard		—			—			—			—			—		—			—		—		—
Doubtful		—			—			—			—			—		—			—		—		—
Loss		—			—			—			—			—		—			—		—		—
Subtotal loans	$	1,369		$	29,561		$	27,224		$	6,086		$	2,064	$	1,194		$	—	$	—	$	67,498
Current period Gross write-offs	$	—		$	—		$	—		$	—		$	—	$	—		$	—	$	—	$	—
Commercial real estate
Pass	$	123,081		$	204,425		$	52,536		$	15,297		$	12,593	$	13,539		$	—	$	—	$	421,471
OLEM (Other Loans Especially Mentioned)		—			—			—			—			—		—			—		—		—
Substandard		—			—			—			—			1,209		—			—		—		1,209
Doubtful		—			—			—			—			—		—			—		—		—
Loss		—			—			—			—			—		—			—		—		—
Subtotal loans	$	123,081		$	204,425		$	52,536		$	15,297		$	13,802	$	13,539		$	—	$	—	$	422,680
Current period Gross write-offs	$	—		$	—		$	—		$	—		$	—	$	—		$	—	$	—	$	—
Commercial business loans
Pass	$	37,854		$	1,935		$	1,403		$	634		$	44	$	—		$	—	$	—	$	41,870
OLEM (Other Loans Especially Mentioned)		—			—			—			—			—							—		—
Substandard		—			—			—			—			—							—		—
Doubtful		—			—			—			—			—							—		—
Loss		—			—			—			—			—							—		—
Subtotal loans	$	37,854		$	1,935		$	1,403		$	634		$	44	$	—		$	—	$	—	$	41,870
Current period Gross write-offs	$	(45	)	$	—		$	—		$	—		$	—	$	(26	)	$	—	$	—	$	(71	)
Consumer
Pass	$	8,657		$	7,033		$	3,627		$	147		$	111	$	—		$	23,423	$	—	$	42,998
OLEM (Other Loans Especially Mentioned)		—			—			—			—			—		—			—		—		—
Substandard		—			—			—			—			—		—			1,025		—		1,025
Doubtful		—			—			—			—			—		—			—		—		—
Loss		—			—			—			—			—		—			—		—		—
Subtotal loans	$	8,657		$	7,033		$	3,627		$	147		$	111	$	—		$	24,448	$	—	$	44,023
Current period Gross write-offs	$	(423	)	$	(1,065	)	$	(880	)	$	(3	)	$	—	$	—		$	—	$	—	$	(2,371	)