OptimumBank Holdings Completes Capital Structure Modernization to Support Growth Beyond $1.1 Billion

OptimumBank Holdings Inc. (NYSE American: OPHC) has completed a multi-step modernization of its capital structure at year-end 2025, reshaping its financial framework to support continued growth beyond its current $1.1 billion in assets. The initiative, detailed in a January 5 announcement, reflects coordinated actions by the company's largest institutional investor and key insiders, with an emphasis on transparency, alignment, and long-term flexibility (https://ibn.fm/bvijW).

The Fort Lauderdale-based holding company undertook these changes to modernize legacy equity arrangements and better reflect the scale the institution has reached. AllianceBernstein increased its long-term economic exposure while maintaining governance balance through preferred equity, demonstrating institutional confidence in the bank's strategic direction. This alignment between major investors and company leadership creates a more stable foundation for future expansion and operational decisions.

Management specifically simplified the company's Series B Preferred Stock to improve transparency and comparability for investors, addressing a key concern in financial markets where complex capital structures can obscure true value. The capital changes were designed primarily to reduce structural complexity rather than deliver economic benefits to management, signaling a focus on long-term institutional strength over short-term executive compensation. This approach matters because it prioritizes sustainable growth and clear financial reporting, which are critical factors for investor confidence in the banking sector.

Fully diluted tangible book value stood at approximately $4.97 per share as of the third quarter of 2025, providing a benchmark against which future performance can be measured. The streamlined capital framework supports continued asset growth beyond the $1.1 billion milestone achieved last year, positioning OptimumBank Holdings for expansion in Florida's competitive banking market. Chairman Moishe Gubin has cited the asset milestone as significant, and the capital restructuring provides the financial architecture to build upon this achievement.

The implications of this announcement extend beyond immediate financial metrics to strategic positioning within the community banking sector. By reducing structural complexity and improving transparency, OptimumBank Holdings enhances its appeal to both institutional and individual investors who value clear financial reporting. The coordination between AllianceBernstein and company insiders creates alignment that can facilitate quicker decision-making and more consistent strategic execution. For the broader banking industry, this move demonstrates how regional institutions can modernize their capital structures to support growth while maintaining governance balance, potentially serving as a model for similar-sized banks facing comparable challenges.

The latest news and updates relating to OPHC are available in the company's newsroom at https://ibn.fm/OPHC, providing investors with ongoing access to corporate developments. This capital restructuring represents a significant step in OptimumBank Holdings' evolution from a smaller community bank to a more substantial financial institution with the structural foundation to support continued expansion in Florida's dynamic economic environment.