OptimumBank Holdings, Inc. (OPHC) completed a comprehensive modernization of its capital structure on January 5 2026, consolidating the Series B preferred stock into a single unified series and eliminating all historical sub‑series. The amendments standardize conversion mechanics and bring the Series B shares into diluted common‑share counts and earnings‑per‑share calculations, providing a clearer equity framework for investors.
The changes were driven by a desire to simplify the bank’s equity architecture and improve transparency. By aligning the Series B preferred stock with the company’s Series C preferred stock, OPHC removes legacy complexities that had previously obscured the true diluted share base. The update also positions the bank to raise capital more efficiently and to deploy equity in future growth initiatives without the administrative burden of multiple preferred series.
OptimumBank’s management highlighted that the modernization supports the bank’s goal of surpassing a $1.1 billion asset milestone and strengthens its balance sheet. The company’s assets were near $1 billion in mid‑2025 and were projected to reach $1.2 billion by year‑end, with a 2026 target of $1.5‑$1.6 billion. The capital‑structure overhaul is intended to provide the flexibility needed to fund that expansion while maintaining a robust capital position.
Insider confidence is evident in the coordinated actions of AllianceBernstein and board member Michael Blisko. AllianceBernstein increased its economic exposure by converting common stock into preferred stock in October 2025, and Blisko’s open‑market purchase in December 2025 signals management’s belief in the bank’s trajectory. These moves reinforce the narrative that the modernization is part of a broader strategy to attract institutional support and to demonstrate governance strength.
While specific market‑reaction data are not available, the announcement is expected to be viewed positively by investors who value clearer capital structures and stronger balance sheets. The modernization aligns with OPHC’s recent record earnings of $4.32 million in Q3 2025 and positions the bank for continued growth in a competitive banking environment.
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