OptimumBank Holdings (OPHC) is a South Florida community bank holding company operating through OptimumBank as its primary subsidiary. Under the liquidation lens, the recovery posture for common equity is positive but constrained by the typical banking balance-sheet asymmetry: assets carry embedded credit risk haircuts while deposit and borrowing obligations settle at face value. As of March 31, 2026, the consolidated balance sheet shows total assets of approximately $1.27 billion, net loans of $1.08 billion, cash and equivalents of $140.0 million, and available-for-sale debt securities of $27.0 million. Against these, deposit liabilities stand at $1.09 billion (carrying value) and FHLB advances at $40.0 million. Reported stockholders' equity is $126.8 million, up approximately $5 million from $121.9 million at December 31, 2025, driven by net income of $4.7 million and stock-based compensation. Under liquidation assumptions, cash recovers at 100% ($140.0 million), AFS securities at or near carrying value given Level 2 fair value pricing ($27.0 million), and the loan portfolio at a haircut. Net loans carry value of $1.078 billion; the bank's own Level 3 fair value estimate is $1.093 billion, suggesting no embedded discount at current market rates. Applying a conservative 90-95% recovery to the loan book (reflecting liquidation friction and credit uncertainty on the $1.08 billion gross book with ACL of $11.1 million, or 1.01% of loans) yields recovered loan value of approximately $970-$1,020 million. FHLB stock ($2.7 million) recovers at par for members. Premises and equipment (small, approximately $2-3 million average) would receive a 50-70% haircut, immaterial at this scale. Aggregate recoverable asset value under these assumptions is approximately $1.14-$1.19 billion. Total liabilities at face value: deposits $1.09 billion plus FHLB advances $40.0 million plus other liabilities approximates $1.14 billion. Residual to equity is thin to modestly positive, consistent with the MFFAIS CLV/LLV of approximately $111.8 million. Series B Preferred Stock (1,295 shares, each convertible into 8,172 common shares, approximately 10.6 million diluted common shares) carries preferential liquidation rights over common stockholders; the stated liquidation preference is the greater of the per-share preference or as-converted value, which under a liquidation scenario would absorb equity value ahead of common. Off-balance sheet commitments total approximately $110.1 million ($41.9 million commitments to extend credit, $64.3 million unused lines, $3.9 million standby letters of credit); these do not appear on the balance sheet and would not extinguish in a wind-up. The quarter showed strong loan growth ($131 million increase in net loans, 13.8% QoQ) funded primarily by deposit growth ($161 million increase), with FHLB advances reduced $10 million. The filing notes a Q2 2026 subsequent event: the board approved authorizing up to 30 million shares of Nonvoting Common Stock and intends to exchange all outstanding Series B (1,295 shares) and Series C (875,641 shares) preferred into approximately 11.46 million shares of Nonvoting Common Stock. This eliminates preferred liquidation preferences and simplifies the capital stack, improving recovery position for residual common equity. No goodwill or other intangibles are disclosed in the filing or TAG_CONTEXT. The filing does not separately disclose premises and equipment as a standalone XBRL tag in TAG_CONTEXT, nor does it tag the ACL balance or deposit composition breakdowns separately in XBRL in the provided TAG_CONTEXT, which is empty.
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