OptimumBank Holdings, Inc. (NASDAQ:OPHC) Financial Performance Analysis

• OptimumBank Holdings, Inc. (NASDAQ:OPHC) has a Return on Invested Capital (ROIC) of 6.49%, which is lower than its Weighted Average Cost of Capital (WACC) of 13.00%, indicating inefficiency in generating sufficient returns.
• Patriot National Bancorp, Inc. (PNBK) showcases a high ROIC of 25.52% against a WACC of 12.54%, reflecting superior capital efficiency.
• Comparative analysis reveals that Peoples Bancorp of North Carolina, Inc. (PEBK) also demonstrates strong capital efficiency with a ROIC of 26.81% and a WACC of 13.44%.

OptimumBank Holdings, Inc. (NASDAQ:OPHC) is a financial institution that provides a range of banking services. The company operates primarily in the United States, offering personal and business banking solutions. In the competitive banking sector, OptimumBank competes with other financial institutions like Old Point Financial Corporation, Patriot National Bancorp, and others.

In evaluating OptimumBank's financial performance, the Return on Invested Capital (ROIC) is a key metric. OPHC has a ROIC of 6.49%, which is notably lower than its Weighted Average Cost of Capital (WACC) of 13.00%. This results in a ROIC to WACC ratio of 0.50, indicating that the company is not generating sufficient returns to cover its cost of capital.

Comparatively, Old Point Financial Corporation (OPOF) has a ROIC of 10.20% and a WACC of 10.29%, resulting in a ROIC to WACC ratio of 0.99. This suggests that OPOF is nearly breaking even in terms of capital efficiency. Meanwhile, Patriot National Bancorp, Inc. (PNBK) excels with a ROIC of 25.52% against a WACC of 12.54%, achieving a ROIC to WACC ratio of 2.03, the highest among its peers.

Village Bank and Trust Financial Corp. (VBFC) also shows strong performance with a ROIC of 12.56% and a WACC of 8.94%, leading to a ROIC to WACC ratio of 1.40. This indicates that VBFC is effectively utilizing its capital to generate returns. In contrast, Carver Bancorp, Inc. (CARV) has a ROIC of 8.46% and a WACC of 17.78%, resulting in a ROIC to WACC ratio of 0.48, similar to OPHC's performance.

Peoples Bancorp of North Carolina, Inc. (PEBK) demonstrates robust capital efficiency with a ROIC of 26.81% and a WACC of 13.44%, yielding a ROIC to WACC ratio of 2.00. This positions PEBK as another strong performer in terms of capital utilization, alongside PNBK.