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Loans | 12 Months Ended
--- | ---
Dec. 31, 2023
Receivables [Abstract] |
Loans | (3) Loans. The components of loans are as follows (in thousands): Schedule of Components of Loans
|  | 2023 |  |  | 2022 |
|  | At December 31, |
|  | 2023 |  |  | 2022 |
Residential real estate |  | $ | 71,400 |  |  | $ | 50,354 |
Multi-family real estate |  |  | 67,498 |  |  |  | 69,555 |
Commercial real estate |  |  | 422,680 |  |  |  | 310,695 |
Land and construction |  |  | 32,600 |  |  |  | 17,286 |
Commercial |  |  | 41,870 |  |  |  | 5,165 |
Consumer |  |  | 44,023 |  |  |  | 30,323 |
Total loans |  |  | 680,071 |  |  |  | 483,378 |
Deduct: |  |  |  |  |  |  |  |
Net deferred loan fees |  |  | (1,294 | ) |  |  | (367 | )
Allowance for credit losses |  |  | (7,683 | ) |  |  | (5,793 | )
Loans, net |  | $ | 671,094 |  |  | $ | 477,218 |
The Company makes the majority of its loans to borrowers in Broward County, Florida and portions of Palm Beach and Miami-Dade Counties, Florida. Although the Company has a diversified loan portfolio, a significant portion of its borrowers’ ability to repay their loans and meet their contractual obligations to the Company is dependent upon the economy in Broward, Palm Beach and Miami-Dade Counties, Florida. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued. An analysis of the change in the allowance for credit losses for the years ended December 31, 2023, and 2022, follows (in thousands): Schedule of Changes in Allowance for Loan Losses
|  | Residential Real Estate |  |  | Multi-Family Real Estate |  |  | Commercial Real Estate |  |  | Land and Construction |  |  | Commercial |  |  | Consumer |  |  | Total |
Year Ended December 31, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  |  | 768 |  |  |  | 748 |  |  |  | 3,262 |  |  |  | 173 |  |  |  | 277 |  |  |  | 565 |  |  |  | 5,793 |
Additional allowance recognized due to adoption of Topic 326 |  |  | 33 |  |  |  | 327 |  |  |  | (367 | ) |  |  | 278 |  |  |  | (262 | ) |  |  | 209 |  |  |  | 218 |
Balance January 1, 2023 |  |  | 801 |  |  |  | 1,075 |  |  |  | 2,895 |  |  |  | 451 |  |  |  | 15 |  |  |  | 774 |  |  |  | 6,011 |
Credit loss expense |  |  | 219 |  |  |  | (34 | ) |  |  | 898 |  |  |  | 568 |  |  |  | 250 |  |  |  | 1,858 |  |  |  | 3,759 |
Provision for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (71 | ) |  |  | (2,371 | ) |  |  | (2,442 | )
Recoveries |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 87 |  |  |  | 268 |  |  |  | 355 |
Ending balance |  |  | 1,020 |  |  |  | 1,041 |  |  |  | 3,793 |  |  |  | 1,019 |  |  |  | 281 |  |  |  | 529 |  |  |  | 7,683 |
Year Ended December 31, 2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  |  | 482 |  |  |  | 535 |  |  |  | 1,535 |  |  |  | 32 |  |  |  | 74 |  |  |  | 417 |  |  |  | 3,075 |
Provision for loan losses |  |  | 286 |  |  |  | 213 |  |  |  | 1,727 |  |  |  | 141 |  |  |  | 244 |  |  |  | 855 |  |  |  | 3,466 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (97 | ) |  |  | (804 | ) |  |  | (901 | )
Recoveries |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 56 |  |  |  | 97 |  |  |  | 153 |
Ending balance |  |  | 768 |  |  | $ | 748 |  |  | $ | 3,262 |  |  | $ | 173 |  |  | $ | 277 |  |  | $ | 565 |  |  | $ | 5,793 |
The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2022 follows (in thousands):
At December 31, 2022: |  | Residential Real Estate |  |  | Multi-Family Real Estate |  |  | Commercial Real Estate |  |  | Land and Construction |  |  | Commercial |  |  | Consumer |  |  | Total |
Collectively evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recorded investment |  | $ | 50,354 |  |  | $ | 69,555 |  |  | $ | 310,695 |  |  | $ | 17,286 |  |  | $ | 5,165 |  |  | $ | 30,323 |  |  | $ | 483,378 |
Balance in allowance for loan losses |  | $ | 768 |  |  | $ | 748 |  |  | $ | 3,262 |  |  | $ | 173 |  |  | $ | 277 |  |  | $ | 565 |  |  | $ | 5,793 |
(continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued. Residential Real Estate, Multi-Family Real Estate, Commercial Real Estate, Land and Construction. All loans are underwritten in accordance with policies set forth and approved by the Board of Directors (the “Board”), including repayment capacity and source, value of the underlying property, credit history and stability. Residential real estate loans are underwritten based on repayment capacity and source, value of the underlying property, credit history and stability. Multi-family and commercial real estate loans are secured by the subject property and are underwritten based upon standards set forth in the policies approved by the Company’s Board. Such standards include, among other factors, loan to value limits, cash flow coverage and general creditworthiness of the obligors. Construction loans to borrowers finance the construction of owner occupied and leased properties. These loans are categorized as construction loans during the construction period, later converting to commercial or residential real estate loans after the construction is complete and amortization of the loan begins. Real estate development and construction loans are approved based on an analysis of the borrower and guarantor, the viability of the project and on an acceptable percentage of the appraised value of the property securing the loan. Real estate development and construction loan funds are disbursed periodically based on the percentage of construction completed. The Company carefully monitors these loans with on-site inspections and requires the receipt of lien waivers on funds advanced. Development and construction loans are typically secured by the properties under development or construction, and personal guarantees are typically obtained. Further, to assure that reliance is not placed solely on the value of the underlying property, the Company considers the market conditions and feasibility of proposed projects, the financial condition and reputation of the borrower and guarantors, the amount of the borrower’s equity in the project, independent appraisals, cost estimates and pre-construction sales information. The Company also makes loans on occasion for the purchase of land for future development by the borrower. Land loans are extended for future development for either commercial or residential use by the borrower. The Company carefully analyzes the intended use of the property and the viability thereof. Commercial. Commercial business loans and lines of credit consist of loans to small- and medium-sized companies in the Company’s market area. Commercial loans are generally used for working capital purposes or for acquiring equipment, inventory or furniture. Primarily all of the Company’s commercial loans are secured loans, along with a small amount of unsecured loans. The Company’s underwriting analysis consists of a review of the financial statements of the borrower, the lending history of the borrower, the debt service capabilities of the borrower, the projected cash flows of the business, the value of the collateral, if any, and whether the loan is guaranteed by the principals of the borrower. These loans are generally secured by accounts receivable, inventory and equipment. Commercial loans are typically made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business, which makes them of higher risk than residential loans and the collateral securing loans may be difficult to appraise and may fluctuate in value based on the success of the business. The Company seeks to minimize these risks through its underwriting standards. Consumer. Consumer loans are extended for various purposes, including purchases of automobiles, recreational vehicles, and boats. Also offered are home improvement loans, lines of credit, personal loans, and deposit account collateralized loans. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Loans to consumers are extended after a credit evaluation, including the creditworthiness of the borrower(s), the purpose of the credit, and the secondary source of repayment. Consumer loans are made at fixed and variable interest rates. Risk is mitigated by the fact that the loans are of smaller individual amounts. (continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued. The following summarizes the loan credit quality (in thousands): Schedule of Loans by Credit Quality
|  | Pass |  |  | OLEM (Other Loans Especially Mentioned) |  |  | Sub- standard |  |  | Doubtful |  |  | Loss |  |  | Total |
At December 31, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  | $ | 71,400 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 71,400 |
Multi-family real estate |  |  | 67,498 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 67,498 |
Commercial real estate |  |  | 421,471 |  |  |  | — |  |  |  | 1,209 |  |  |  | — |  |  |  | — |  |  |  | 422,680 |
Land and construction |  |  | 32,600 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 32,600 |
Commercial |  |  | 41,870 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 41,870 |
Consumer |  |  | 42,998 |  |  |  | — |  |  |  | 1,025 |  |  |  | — |  |  |  | — |  |  |  | 44,023 |
Total |  | $ | 677,837 |  |  | $ | — |  |  | $ | 2,234 |  |  | $ | — |  |  | $ | — |  |  | $ | 680,071 |
At December 31, 2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  | $ | 50,354 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 50,354 |
Multi-family real estate |  |  | 69,555 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 69,555 |
Commercial real estate |  |  | 309,458 |  |  |  | — |  |  |  | 1,237 |  |  |  | — |  |  |  | — |  |  |  | 310,695 |
Land and construction |  |  | 17,286 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,286 |
Commercial |  |  | 5,165 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,165 |
Consumer |  |  | 30,323 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 30,323 |
Total |  | $ | 482,141 |  |  | $ | — |  |  | $ | 1,237 |  |  | $ | — |  |  | $ | — |  |  | $ | 483,378 |
Internally assigned loan grades are defined as follows:
| Pass – | a Pass loan’s primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary. These are loans that conform in all aspects to bank policy and regulatory requirements, and no repayment risk has been identified.
| OLEM – | an Other Loan Especially Mentioned has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date.
| Substandard – | a Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Included in this category are loans that are current on their payments, but the Bank is unable to document the source of repayment. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
| Doubtful – | a loan classified as Doubtful has all the weaknesses inherent in one classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The Company charges off any loan classified as Doubtful.
| Loss – | a loan classified as Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The Company fully charges off any loan classified as Loss.
(continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued. Age analysis of past due loans at December 31, 2023 and 2022 is as follows (in thousands): Schedule of Age Analysis of Past-due Loans
|  | Accruing Loans |  |  |  |  |  |  |
|  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | Greater Than 90 Days Past Due |  |  | Total Past Due |  |  | Current |  |  | Nonaccrual Loans |  |  | Total Loans |
At December 31, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 71,400 |  |  | $ | — |  |  | $ | 71,400 |
Multi-family real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 67,498 |  |  |  | — |  |  |  | 67,498 |
Commercial real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 422,680 |  |  |  | — |  |  |  | 422,680 |
Land and construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 32,600 |  |  |  | — |  |  |  | 32,600 |
Commercial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 41,870 |  |  |  | — |  |  |  | 41,870 |
Consumer |  |  | 230 |  |  |  | 208 |  |  |  | — |  |  |  | 438 |  |  |  | 42,560 |  |  |  | 1,025 |  |  |  | 44,023 |
Total |  | $ | 230 |  |  | $ | 208 |  |  | $ | — |  |  | $ | 438 |  |  | $ | 678,608 |  |  | $ | 1,025 |  |  | $ | 680,071 |
At December 31, 2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 50,354 |  |  | $ | — |  |  | $ | 50,354 |
Multi-family real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 69,555 |  |  |  | — |  |  |  | 69,555 |
Commercial real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 310,695 |  |  |  | — |  |  |  | 310,695 |
Land and construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,286 |  |  |  | — |  |  |  | 17,286 |
Commercial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,165 |  |  |  | — |  |  |  | 5,165 |
Consumer |  |  | 150 |  |  |  | 27 |  |  |  | — |  |  |  | 177 |  |  |  | 30,146 |  |  |  | — |  |  |  | 30,323 |
Total |  | $ | 150 |  |  | $ | 27 |  |  | $ | — |  |  | $ | 177 |  |  | $ | 483,201 |  |  | $ | — |  |  | $ | 483,378 |
(continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued. Schedule of Amortized Cost Basis
|  | Term Loans |  |  |  |  |  | Revolving Loans |  |  |  |
|  | Amortized Cost Basis by Origination Year |  |  | Revolving |  |  | Converted to Term |  |  |  |
Land and construction |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Loans (Amortized Cost Basis) |  |  | Loans (Amortized Cost Basis) |  |  | Total |
Pass |  | $ | 11,869 |  |  | $ | 14,933 |  |  | $ | 2,689 |  |  | $ | 1,488 |  |  | $ | 1,621 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 32,600 |
OLEM (Other Loans Especially Mentioned) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Subtotal loans |  | $ | 11,869 |  |  | $ | 14,933 |  |  | $ | 2,689 |  |  | $ | 1,488 |  |  | $ | 1,621 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 32,600 |
Current period Gross write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 21,343 |  |  | $ | 25,898 |  |  | $ | 9,747 |  |  | $ | 4,777 |  |  | $ | 4,044 |  |  | $ | 4,844 |  |  | $ | 747 |  |  | $ | — |  |  | $ | 71,400 |
OLEM (Other Loans Especially Mentioned) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Subtotal loans |  | $ | 21,343 |  |  | $ | 25,898 |  |  | $ | 9,747 |  |  | $ | 4,777 |  |  | $ | 4,044 |  |  | $ | 4,844 |  |  | $ | 747 |  |  | $ | — |  |  | $ | 71,400 |
Current period Gross write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Multi-family real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,369 |  |  | $ | 29,561 |  |  | $ | 27,224 |  |  | $ | 6,086 |  |  | $ | 2,064 |  |  | $ | 1,194 |  |  | $ | — |  |  | $ | — |  |  | $ | 67,498 |
OLEM (Other Loans Especially Mentioned) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Subtotal loans |  | $ | 1,369 |  |  | $ | 29,561 |  |  | $ | 27,224 |  |  | $ | 6,086 |  |  | $ | 2,064 |  |  | $ | 1,194 |  |  | $ | — |  |  | $ | — |  |  | $ | 67,498 |
Current period Gross write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 123,081 |  |  | $ | 204,425 |  |  | $ | 52,536 |  |  | $ | 15,297 |  |  | $ | 12,593 |  |  | $ | 13,539 |  |  | $ | — |  |  | $ | — |  |  | $ | 421,471 |
OLEM (Other Loans Especially Mentioned) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,209 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,209 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Subtotal loans |  | $ | 123,081 |  |  | $ | 204,425 |  |  | $ | 52,536 |  |  | $ | 15,297 |  |  | $ | 13,802 |  |  | $ | 13,539 |  |  | $ | — |  |  | $ | — |  |  | $ | 422,680 |
Current period Gross write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial business loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 37,854 |  |  | $ | 1,935 |  |  | $ | 1,403 |  |  | $ | 634 |  |  | $ | 44 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 41,870 |
OLEM (Other Loans Especially Mentioned) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |
Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |
Subtotal loans |  | $ | 37,854 |  |  | $ | 1,935 |  |  | $ | 1,403 |  |  | $ | 634 |  |  | $ | 44 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 41,870 |
Current period Gross write-offs |  | $ | (45 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (26 | ) |  | $ | — |  |  | $ | — |  |  | $ | (71 | )
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 8,657 |  |  | $ | 7,033 |  |  | $ | 3,627 |  |  | $ | 147 |  |  | $ | 111 |  |  | $ | — |  |  | $ | 23,423 |  |  | $ | — |  |  | $ | 42,998 |
OLEM (Other Loans Especially Mentioned) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,025 |  |  |  | — |  |  |  | 1,025 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Subtotal loans |  | $ | 8,657 |  |  | $ | 7,033 |  |  | $ | 3,627 |  |  | $ | 147 |  |  | $ | 111 |  |  | $ | — |  |  | $ | 24,448 |  |  | $ | — |  |  | $ | 44,023 |
Current period Gross write-offs |  | $ | (423 | ) |  | $ | (1,065 | ) |  | $ | (880 | ) |  | $ | (3 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (2,371 | )
(continued) OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements (3) Loans, Continued The Company has not made any modifications of loans to borrowers experiencing financial difficulties during the year ended December 31, 2023. The Company recognized $85,000 of interest income on nonaccrual loans in 2023. There was no allowance for credit losses on nonaccrual loans at December 31, 2023. No loans have been determined to be troubled debt restructurings (TDR’s) during the year ended December 31, 2022. At December 31, 2022, there were no loans modified and entered into TDR’s within the past twelve months, that subsequently defaulted during the year ended December 31, 2022. There were no impaired loans at December 31, 2022.

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