OptimumBank Holdings, Inc. Debt Disclosure
(8) Borrowings.
The maturities and interest rates on the Federal Home Loan Bank (“FHLB”) advances are as follow (dollars in thousands)
| Maturity Year Ending | Interest | At December 31, | ||||||||||||
| December 31, | Rate | 2025 | 2024 | |||||||||||
| FHLB | 2025 | 4.57 | % | 10,000.00 | ||||||||||
| FHLB | 2025 | 4.43 | % | 30,000.00 | ||||||||||
| FHLB | 2025 | 1.01 | % | 10,000.00 | ||||||||||
| FHLB | 2026 | 3.88 | % | 50,000.00 | ||||||||||
| $ | 50,000.00 | $ | 50,000.00 | |||||||||||
FHLB advances are collateralized by a blanket lien requiring the Company to maintain certain first mortgage loans as pledged collateral. At December 31, 2025, the Company had outstanding borrowings of $50 million, and had pledged $464.8 million in loans as a collateral, providing borrowing availability of $231.9 million under its established borrowing capacity with the FHLB. The Company’s borrowing facility is subject to collateral and stock ownership requirements, as well as prior FHLB consent to each advance. In addition, the Bank has access to the Federal Reserve Discount Window as supplemental source of liquidity. As of December 31, 2025, the Bank had pledged $50.8 million in a combination of loans and securities as collateral to secure this borrowing facility, providing a line of credit available for use if needed. At December 31, 2025, the Company also had available unsecured lines of credit amounting to $73.5 million with five correspondent banks. The Company measure and monitor our liquidity daily and believes its sources of funding are adequate to meet our operating needs.
(continued)
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 25, 2021 | |
| 2019 | Mar 25, 2020 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.