OptimumBank Holdings, Inc. (OPHC) (www.OptimumBank.com) (the “Company”), the parent company of OptimumBank, today announced that it has completed the private offer to exchange (the “Exchange Offer”) a portion of its outstanding Trust Preferred Securities. The Exchange Offer was made pursuant to the Company’s confidential offering memorandum dated November 27, 2019. The Exchange Offer expired on December 26, 2019 (the “Expiration Date”).

OptimumBank Holdings, Inc. (www.OptimumBank.com) (the “Company”), the parent company of OptimumBank, a bank that provides a wide range of consumer and commercial banking services to individuals and businesses, is pleased to announce the Federal Reserve Board (“FRB”) terminated the Written Agreement with the Company. The Written Agreement dated October 22, 2010 prohibited the Company, without prior approval of the FRB, from paying cash dividends, taking dividends or payments from  OptimumBank, making interest, principal or other distributions on account of the Junior Subordinated Debenture, incurring, increasing or guaranteeing any debt, purchasing or redeeming any shares of stock or appointing any new director or senior executive officer.

Optimum Bank Holdings, Inc. (www.OptimumBank.com) (OPHC), the parent company of Optimum Bank, a bank that provides a range of consumer and commercial banking services to individuals and businesses is pleased to provide an update to shareholders following the Annual Shareholder Meeting that was held on August 27, 2019. The purpose of the meeting was to report on current progress and present several proposals as the Company works with a restructured management team and Board of Directors to implement a strategic business plan as the Company emerges from major regulatory issues. “The Bank had faced numerous regulatory issues resulting from problems associated with The Great Recession of 2007 and the Housing Market Crash,” noted Moishe Gubin, Chairman of Optimum Bank.

OptimumBank Holdings, Inc. (OPHC) (www.OptimumBank.com) (the “Company”), the parent company of OptimumBank, today announced that it has commenced a private offer to exchange (the “Exchange Offer”) its outstanding Trust Preferred Securities, upon the terms and subject to the conditions set forth in the confidential offering memorandum dated November 27, 2019 and related letter of transmittal (together, the “Offering Documents”). THE EXCHANGE OFFER WILL EXPIRE IMMEDIATELY AFTER 11:59 P.M., EASTERN TIME, ON DECEMBER 26, 2019, UNLESS EXTENDED (SUCH TIME AND DATE, AS IT MAY BE EXTENDED, THE “EXPIRATION DATE”). Under the Exchange Offer, the Company will issue shares of its common stock, par value $0.01 per share (the “Common Stock”), for Trust Preferred Securities.

Last year OptimumBank (the “Bank”) implemented various strategies to improve its earnings. This is on top of substantial growth in the 4th quarter of 2019 and despite the emerging COVID 19 crisis (more on this later). It also allows the bank to adjust prices to the current market which have recently fallen to near zero percent.

For many years, OptimumBank and OptimumBank Holdings Company (OPHC) had been facing regulatory issues resulting from historic problems associated with The Great Recession of 2007 and the Housing Market Crash. Over time, OptimumBank has restructured its management team and Board of Directors composition with the intent to create a strategic business plan. OptimumBank is now considered a healthy bank institution.

At the Annual Shareholder meeting of OptimumBank Holdings, Inc. (OPHC), which took place in August 2019, two issues were presented that dealt with outstanding Trust Preferred Securities (TruPS). The first issue was to allow an entity (Preferred Shares LLC) to acquire and sell TruPS. Moishe Gubin, a director at OPHC is a part owner of Preferred Shares LLC. The second issue was to provide for 1,000,000 common shares to be available in a designated tender offer exchange of TruPS for such common shares.