EX-99.1 2 ex99-1.htm EX-99.1

 

Exhibit 99.1

 

 

OptimumBank Holdings, Inc. Financial Performance for the Second Quarter of 2025

 

Fort Lauderdale, FL, August 7, 2025 — OptimumBank Holdings, Inc. (NYSE American: OPHC) (the “Company”) is a one-bank holding company and owns 100% of OptimumBank (the “Bank”). The Company is pleased to announce net earnings of $3.60 million, or $0.31 per basic share, and $0.29 per diluted share, for the second quarter of 2025. This compares to net income of $3.87 million, or $0.33 per basic share, and $0.32 per diluted share, for the first quarter of 2025, and $3.50 million net earnings, or $0.36 per basic share, and $0.34 per diluted share, for the comparable quarter last year. For the six months ended June 30, 2025, net earnings was $7.47 million, or $0.64 per basic share, and $0.61 per diluted share, compared to net earnings of $5.87 million, or $0.68 per basic share, and $0.66 per diluted share, for the six months ended June 30, 2024. The increase of $1.6 million in earnings for the six-month ended June 30, 2025, compared to the same period in 2024, was primarily driven by a $3.18 million improvement in net interest income and $0.63 million in noninterest income, partially offset by an increase in noninterest expenses and income taxes. The decline in diluted earnings per share is the result of the average increase in both common and preferred shares by 3,351,368 shares.

 

The Company has demonstrated continued progress during the second quarter of 2025. Total deposits grew by $25.93 million from March 31, 2025, reaching $878.87 million at June 30, 2025, reflecting an annualized growth rate of approximately 12.16%. This also represents a growth of $116.22 million in total deposits since the second quarter of 2024. The gross loan portfolio decreased by $15.68 million during the second quarter of 2025 to $784.56 million.

 

Highlights for the Second Quarter of 2025

 

  ● Net earnings of $3.60 million, or $0.31 per basic share, and $0.29 diluted earnings per share (“diluted EPS”).
  ● Return on Average Assets (ROAA) was 1.48% for the second quarter of 2025, compared to 1.62% for the first quarter of 2025.
  ● Net interest margin was 4.32%, reflecting an increase from 4.06% for the first quarter of 2025.
  ● Total assets grew by $21.66 million to $999.13 million from March 31, 2025, an annualized increase of approximately 8.86%.
  ● Total deposits grew by $25.93 million to $878.87 million from March 31, 2025, representing an annualized increase of approximately 12.16%.
  ● Gross loans decreased by $15.68 million during the quarter.
  ● Total stockholders’ equity increased by $3.35 million to $111.35 million as of June 30, 2025, up from $108 million as of March 31, 2025, reflecting continued earnings retention.

 

 
 

 

“We are proud to report strong and resilient performance during the second quarter of 2025,” said Moishe Gubin, Chairman of the Board. “While industry headwinds continue, our team at OptimumBank delivered meaningful core earnings through disciplined deposit pricing, targeted growth in consumer and multi-family lending, and improved operating leverage. Although overall loan balances declined this quarter due to the payoff of older, lower-yielding loans, we remain well positioned to redeploy capital into higher-return opportunities. Our results demonstrate our ability to manage a growing asset base while maintaining solid credit quality and capital strength.”

 

Net interest income increased to $10.24 million, up $0.8 million from the first quarter of 2025 and $1.50 million from the second quarter of 2024, supported by higher yields on loans and other earning assets and lower costs on interest-bearing liabilities. The cost of interest-bearing liabilities improved to 3.49%, down from 3.59% in the first quarter, while interest-earning asset yields expanded to 6.57%. The Company’s net interest margin rose to 4.32%, a reflection of disciplined deposit pricing strategy and balance sheet optimization.

 

Noninterest income grew to $1.83 million, a quarterly increase of $0.6 million, driven by increases in gains on sales of government guaranteed loans and loan prepayment fees. Noninterest expenses increased to $6.18 million, primarily due to higher staffing and infrastructure investments supporting long-term scalability. The Company maintained an efficiency ratio of 51.18%, consistent with prudent cost management amid balance sheet expansion.

 

Credit loss expense increased to $1.04 million, largely due to a specific reserve booked on an individual commercial loan. Gross charge-offs remained modest at $72,000, while recoveries totaled $97,000, resulting in net recoveries of $25,000, reflecting a well-managed and granular loan portfolio. The allowance for credit losses stood at $9.34 million as of June 30, 2025, or 1.19% of total loans.

 

Loan portfolio dynamics were mixed in the second quarter of 2025. Gross loans decreased by $15.68 million, primarily due to the payoff of several loans and the resolution of a $5.60 million nonperforming loan. Consumer and multi-family segments continued to expand, growing by $7.99 million and $4.71 million, respectively. These gains were offset by a $19.21 million decline in land and construction loans and a $5.04 million decline in residential real estate loans, consistent with the stabilization of and migration of construction to permanent loans status and other evolving market conditions. This shift provides an opportunity to redeploy capital into potentially higher-yielding segments of the portfolio.

 

On the funding side, total deposits increased by $25.93 million to $878.87 million from the first quarter of 2025, while core noninterest-bearing demand deposits increased to $259.82 million. The Company also significantly reduced its average borrowings from $32.22 million in the first quarter to $2.22 million in the second quarter, reinforcing its emphasis on core funding and balance sheet strength.

 

Capital levels remain strong, with a Tier 1 Capital to Total Assets of 11.89%, well above regulatory minimums. The Company remains well positioned to support continued growth and earnings momentum through the remainder of 2025.

 

The Company’s outlook remains constructive. The Company continues to invest in technology, talent, and targeted growth strategies that reinforce its position as one of the most dynamic and rapidly growing community banks in South Florida. We remain grateful for the trust and partnership of our shareholders, customers, and employees.

 

 
 

 

The following table presents the Company’s quarterly trends of the consolidated financial highlights (unaudited) for the periods presented:

 

   Quarterly Trends   2Q25 change vs 
   2Q25   1Q25   4Q24   3Q24   2Q24   1Q25   2Q24 
Selected Balance Sheet Data                                   
Total assets  $999,127   $977,468   $932,933   $945,192   $899,778   $21,659   $99,349 
Total gross loans   784,564    800,244    804,240    778,058    761,072    (15,680)   23,492 
Total deposits   878,865    852,934    772,195    806,506    762,646    25,931    116,219 
Earnings Highlights                                   
Net earnings  $3,602   $3,870   $3,949   $3,302   $3,496   $(268)  $106 
Diluted earnings per share (EPS)  $0.29   $0.32   $0.36   $0.32   $0.34   $(0.03)  $(0.05)
Net interest income  $10,242   $9,426   $9,235   $8,962   $8,742   $816   $1,500 
Performance Ratios                                   
Net interest margin   4.32%   4.06%   4.19%   3.96%   3.79%   0.26%   0.53%
Net interest spread   3.08%   2.87%   2.90%   2.61%   2.52%   0.21%   0.56%
Cost of interest-bearing liabilities   3.49%   3.59%   4.02%   4.17%   4.06%   (0.10)%   (0.57)%
Efficiency ratio   51.18%   52.79%   42.53%   52.45%   51.13%   (1.61)%   0.05%
Loan-to-deposit ratio   88.13%   92.77%   102.95%   95.34%   98.59%   (4.64)%   (10.46)%
Return on (annualized)                                   
Average assets (ROAA)   1.48%   1.62%   1.62%   1.42%   1.48%   (0.14)%   0.00%
Average equity (ROAE)   13.10%   14.66%   16.19%   14.74%   16.65%   (1.56)%   (3.55)%
Average tangible assets (ROTA)   1.48%   1.62%   1.62%   1.42%   1.48%   (0.14)%   0.00%
Pre-tax pre-provision net revenue (PPNR)  $5,895   $5,031   $5,921   $4,792   $4,859   $864   $1,036 
Other Operating Measures                                   
Common shares outstanding   11,751,082    11,751,082    11,636,092    10,006,960    9,677,431    -    2,073,651 
Non-diluted tangible book value per share  $9.48   $9.19   $8.87   $9.26   $8.99   $0.28   $0.49 
Fully diluted shares outstanding   23,390,612    23,390,612    23,275,622    21,646,490    21,316,961    -    2,073,651 
Fully diluted tangible book value per share  $4.76   $4.62   $4.43   $4.28   $4.08   $0.14   $0.68 
Tangible common equity to tangible assets   11.14%   11.05%   11.06%   9.81%   9.67%   0.09%   1.47%
Tier 1 Capital to total assets   11.89%   11.71%   10.91%   10.38%   9.68%   0.18%   2.21%

 

 
 

 

Financial Results

 

Statement of Earnings

 

Net earnings was $3.60 million for the second quarter of 2025, compared to net earnings of $3.87 million for the first quarter of 2025, and $3.50 million for the second quarter of 2024. The decrease from the first quarter of 2025 was primarily due to a credit loss expense of $1.04 million, compared to a reversal of $0.2 million in the first quarter. Compared to the second quarter of 2024, net earnings increased by approximately $0.1 million.

 

Total interest income was $15.59 million for the second quarter of 2025, compared to $15.01 million in the first quarter of 2025 and $15.19 million in the second quarter of 2024. The sequential increase was driven by both a $6.33 million rise in average loan balances and a higher loan yield, which increased from 6.83% to 6.99% and higher average balances in interest-earning deposits with banks. Compared to the second quarter of 2024, the increase was primarily due to a $49.45 million increase in average loan balances and a rise in loan yield from 6.87% to 6.99%.

 

The following table depicts the components of interest income for the quarterly periods presented:

 

   Quarterly Trends   2Q25 change vs 
   2Q25   1Q25   4Q24   3Q24   2Q24   1Q25   2Q24 
Interest income                                   
Loans  $14,026   $13,601   $13,679   $13,588   $12,948   $425   $1,078 
Debt securities   158    160    154    163    165    (2)   (7)
Other   1,404    1,246    1,809    1,583    2,075    158    (671)
Total interest income  $15,588   $15,007   $15,642   $15,334   $15,188   $581   $400 

 

Interest expense totaled $5.35 million for the second quarter of 2025, compared to $5.58 million for the first quarter of 2025 and $6.45 million for the second quarter of 2024. Compared to the first quarter of 2025, the decrease in interest expense was primarily attributable to a 10 basis points decrease in the cost of interest-bearing liabilities, from 3.59% to 3.49%, largely driven by the continued in the cost of time deposits due to repricing and the repayment of borrowings, which declined from $32.22 million in average balance in the first quarter of 2025 to just $2.22 million in the second quarter of 2025. Compared to the second quarter of 2024, the decrease in interest expense was substantial, primarily due to a 57 basis points decrease in the cost of interest-bearing liabilities, from 4.06% to 3.49% and a significant reduction in average borrowings outstanding. This reduction in funding costs in conjunction with the growth in total deposits and reflects disciplined deposit pricing and management of funding sources.

 

 
 

 

Net interest income was $10.24 million in the second quarter of 2025, up from $9.43 million in the first quarter of 2025 and $8.74 million in the second quarter of 2024. The quarter-over-quarter increase was driven by higher yields on earning assets, particularly loans, where average yields improved by 11 basis points, as well as growth in the average loan portfolio. A modest decrease in funding costs also contributed to the improvement. On a year-over-year basis, the increase in net interest income was primarily attributable to a $69.81 million rise in average loan balances and a 12 basis points increase in loan yields, further supported by lower funding costs.

 

Net interest margin expanded to 4.32% for the second quarter of 2025, compared to 4.06% and 3.79% for the first and second quarters of 2025 and 2024, respectively. Compared to the first quarter of 2025, net interest margin increased by 26 basis points, principally driven by improved yields on interest-earning assets (up from 6.46% to 6.57%) combined with decrease in interest-bearing liabilities cost (down from 3.59% to 3.49%). Compared to the second quarter of 2024, net interest margin expanded by 53 basis points, primarily attributable to a significant decrease in the average cost of interest-bearing liabilities and an increase in total earning assets yields.

 

The cost of interest-bearing liabilities was 3.49% in the second quarter of 2025, down from 3.59% in the first quarter of 2025 and down from 4.06% in the second quarter of 2024. The decrease from the first quarter of 2025 was primarily due to continued repricing in the time deposit portfolio, coupled with a notable reduction in borrowings outstanding during the quarter. Compared to the same quarter last year, the cost of interest-bearing liabilities decreased substantially by 57 basis points. This improvement in funding costs reflects effective balance sheet management, including disciplined deposit pricing and a reduced reliance on higher-cost borrowings, allowing the Company to optimize its funding mix amidst ongoing competitive pressures and industry-wide shifts in deposit behavior.

 

Credit loss expense (reversal) was $1.04 million during the second quarter of 2025, compared to a reversal of $0.2 million in the first quarter of 2025, and an expense of $0.2 million for the second quarter of 2024. The increase in credit loss expense from the first quarter was primarily attributable to estimated collectability on a loan individually analyzed. Gross charge-offs remained modest at $72,000, while recoveries totaled $97,000, resulting in net recoveries of $25,000 during the second quarter of 2025. The Company’s allowance for credit losses stood at $9.34 million, or 1.19% of total loans, as of June 30, 2025.

 

 
 

 

Noninterest income totaled $1.83 million for the second quarter of 2025, up from $1.23 million in the prior quarter and $1.20 million in the second quarter of 2024. The quarter-over-quarter increase of $0.6 million was primarily driven by growth in other income, which increased by $0.5 million to $0.7 million. This increase is primarily attributed to higher gains on sales of government guaranteed loans and loan prepayment fees. Compared to the same quarter last year, the $0.63 million increase in noninterest income was largely due to higher gains on sales of government guaranteed loans, higher service charges and fee-based revenue, supported by expanded deposit relationships and increased transaction volumes.

 

Noninterest expenses totaled $6.18 million for the second quarter of 2025, compared to $5.63 million in the first quarter of 2025 and $5.08 million in the second quarter of 2024. The quarter-over-quarter increase of $0.55 million was primarily due to higher salaries and employee benefits, which increased by $0.36 million to $3.74 million from $3.38 million in the prior quarter, reflecting staff growth and seasonal compensation. Compared to the second quarter of 2024, the increase of $1.10 million was driven by the same staffing-related trends, as well as increases in occupancy, data processing, and other operating expenses, as the Company continued investing in infrastructure and growth initiatives.

 

The following table depicts the components of noninterest expenses for the quarterly periods presented:

 

   Quarterly Trends   2Q25 change vs 
   2Q25   1Q25   4Q24   3Q24   2Q24   1Q25   2Q24 
Noninterest expenses                                   
Salaries and employee benefits  $3,738   $3,381   $2,145   $3,078   $3,031   $357   $707 
Professional fees   275    247    374    266    238    28    37 
Occupancy and equipment   294    282    243    234    202    12    92 
Data processing   625    533    570    574    575    92    50 
Regulatory assessment   202    198    204    241    231    4    (29)
Other   1,047    985    846    892    807    62    240 
Total noninterest expenses  $6,181   $5,626   $4,382   $5,285   $5,084   $555   $1,097 

 

Income tax expense was $1.25 million for the second quarter of 2025, down slightly from $1.33 million in the first quarter of 2025 and $1.17 million in the second quarter of 2024. The effective tax rate for the quarter was 25.8%, compared to 25.5% in the prior quarter and 25.0% from the prior year comparative quarter. The slight increase in the effective tax rate was attributable to shifts in the mix of taxable income and fewer discrete tax benefits during the quarter.

 

Balance Sheet

 

Total assets were $999.13 million as of June 30, 2025, increasing from $977.47 million at March 31, 2025, and up from $899.78 million at June 30, 2024. The quarter-over-quarter growth of $21.66 million was primarily attributable to a $43.01 million rise in interest-bearing deposits with banks. This increase was partially offset by a decrease in cash and due from banks, and a $16.68 million decline in net loans.

 

 
 

 

Cash and cash equivalents at June 30, 2025, was $181.75 million, up significantly from $143.46 million at March 31, 2025, and up from $104.06 million at June 30, 2024. The increase was primarily driven by the growth in interest-bearing deposits with banks.

 

Investment securities (debt securities available for sale and held-to-maturity) at June 30, 2025, were $22.64 million, compared to $23.31 million at March 31, 2025, and $23.86 million at June 30, 2024. Compared to March 31, 2025, investment securities decreased by $0.67 million, and compared to June 30, 2024, decreased by $1.22 million. No sales of debt securities were reported during these periods.

 

Total gross loans at June 30, 2025, were $784.56 million, a decrease from $800.24 million at March 31, 2025, but up from $761.07 million at June 30, 2024. Gross loans decreased during the quarter due to larger pay off experience in the quarter and the resolution of a $5.6 million nonperforming loan. Compared to June 30, 2024, the gross loan portfolio increased by $23.49 million, reflecting growth over the past year.

 

The allowance for credit losses (“ACL”) was $9.34 million as of June 30, 2025, representing 1.19% of total loans, increasing from 1.03% at March 31, 2025, and up from $8.27 million and $8.21 million at March 31, 2025, and June 30, 2024, respectively. The quarter-over-quarter increase of $1.07 million was primarily driven by a credit loss expense of $1.04 million during the second quarter of 2025, reflecting estimated collectability on a loan individually analyzed and updates to forward-looking loss assumptions. The increase was further supported by net recoveries of $25,000, as gross charge-offs remained modest at $72,000 and recoveries totaled $97,000. The ACL ratio reflects continued credit discipline and a well-diversified loan portfolio.

 

The following table presents the components of the ACL as of the dates indicated:

 

                       June 30, 2025 change vs 
   June 30,   March 31,   December 31,   September 30,   June 30,   March 31,   June 30, 
   2025   2025   2024   2024   2024   2025   2024 
Beginning balance  $8,270   $8,660   $8,337   $8,208   $8,281   $(390)  $(11)
Credit loss expense (reversal) - funded   1,043    (144)   569    409    263    1,187    780 
Charge-offs   (72)   (325)   (336)   (366)   (440)   253    368 
Recoveries   97    79    90    86    104    18    (7)
Ending balance  $9,338   $8,270   $8,660   $8,337   $8,208   $1,068   $1,130 

 

Nonaccrual loans totaled $3.22 million at June 30, 2025, compared to $7.51 million at March 31, 2025, and $2.78 million at June 30, 2024. The decrease from the prior quarter was primarily due to the resolution of a nonaccrual land and construction loan. There were no loans 90 days or more past due and still accruing interest as of June 30, 2025. Additionally, the Company did not report any modified loans to borrowers experiencing financial difficulty during the second quarter of 2025.

 

 
 

 

Nonperforming assets (NPA) reflected strong asset quality at June 30, 2025. Nonaccrual loans, a key component of NPA, decreased to $3.22 million from $7.58 million at December 31, 2024. Furthermore, the Company reported no real estate owned (OREO) outstanding.

 

Total deposits at June 30, 2025, were $878.87 million, an increase from $852.93 million at March 31, 2025, and from $762.65 million at June 30, 2024. The increase from March 31, 2025, was attributable to increases in noninterest-bearing demand deposits and savings, NOW and money-market deposits, partially offset by a decrease in time deposits. Noninterest-bearing demand deposits notably rose from $235.78 million to $259.82 million. Noninterest-bearing deposits accounted for 29.56% of total deposits at June 30, 2025, compared to 27.64% at March 31, 2025 and 30.28% at June 30, 2024. The Company continues to maintain a diverse and stable funding base.

 

Accumulated other comprehensive loss (AOCL) was $(5.41) million at June 30, 2025. This compares to $(5.15) million at March 31, 2025, and $(5.45) million at June 30, 2024. The unrealized loss in AOCL widened by $(0.26) million quarter-over-quarter, primarily due to adverse movements in long-term interest rates impacting the fair value of available-for-sale securities, as the Company recorded an unrealized loss of $(0.34 million) on these securities during the period. Year-over-year, AOCL slightly narrowed by $0.04 million, reflecting the net impact of fair value changes over the trailing twelve months. All AOCL amounts represent unrealized losses and have no impact on reported earnings.

 

Shareholders’ equity was $111.35 million as of June 30, 2025, compared to $108.00 million as of March 31, 2025, and $86.97 million as of June 30, 2024. The quarter increase was principally attributable to second quarter net earnings of $3.60 million, partially offset by an increase in accumulated other comprehensive loss and a slight decrease in additional paid-in capital.

 

Tangible book value per share at June 30, 2025, was $9.48, up from $9.19 at March 31, 2025, and $8.99 at June 30, 2024. This non-diluted measure is based on common shares outstanding, which were 11,751,082 at June 30, 2025 (unchanged from March 31, 2025, and up from 9,677,431 at June 30, 2024).

 

However, while GAAP accounting generally presents book value based on common shares outstanding, the Company believes a more comprehensive measure of shareholder value, particularly given its capital structure, is on a fully diluted basis. This is because its preferred shares convert without accumulating a coupon, essentially acting as nonvoting common equity.

 

On a fully diluted basis, tangible book value per share was $4.76 at June 30, 2025, up from $4.62 at March 31, 2025, and $4.08 at June 30, 2024. This is based on fully diluted shares outstanding of 23,390,612 at June 30, 2025 (unchanged from March 31, 2025, and up from 21,316,961 at June 30, 2024).

 

 
 

 

The increase in both non-diluted and fully diluted tangible book value per share reflects strong quarterly earnings performance and overall capital strength. The Bank remains well capitalized with a Tier 1 Capital to Total Assets ratio of 11.89%, which is well above regulatory minimums.

 

FORWARD-LOOKING STATEMENTS

 

Certain statements made in this report which are not statements of historical fact are forward-looking statements within the meaning of, and subject to the protection of, the federal securities laws. Forward looking statements include, among others, statements with respect to our beliefs, plans, objectives, goals, targets, expectations, anticipations, assumptions, estimates, intentions and future performance and involve known and unknown risks, many of which are beyond our control and which may our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements made in this report. You can identify forward-looking statements through our use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “should,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions. Forward-looking statements are based on our current beliefs and expectations and are subject to significant risks and uncertainties. Accordingly, we caution you not to place undue reliance on such statements. We undertake no obligation to update or revise any of our forward-looking statements for events or circumstances that arise after the statement is made, except as otherwise may be required by law.

 

Investor Relations & Corporate Relations

 

Contact: Seth Denison

Telephone: (305) 401-4140

Email: SDenison@OptimumBank.com

 

OptimumBank Holdings, Inc.

Consolidated Balance Sheet

(Dollars in thousands)

 

                       June 30, 2025 change vs 
   June 30,   March 31,   December 31,   September 30,   June 30,   March 31,   June 30, 
   2025   2025   2024   2024   2024   2025   2024 
Assets                                   
Cash and due from banks  $8,833   $13,542   $13,982   $15,357   $11,923   $(4,709)  $(3,090)
Interest-bearing deposits with banks   172,921    129,914    79,648    116,242    92,133    43,007    80,788 
Total cash and cash equivalents   181,754    143,456    93,630    131,599    104,056    38,298    77,698 
Debt securities available for sale   22,378    23,043    22,773    24,495    23,540    (665)   (1,162)
Debt securities held-to-maturity   260    269    281    300    315    (9)   (55)
Loans, net of allowance for credit losses   774,548    791,232    794,985    768,914    751,903    (16,684)   22,645 
Federal Home Loan Bank stock   658    1,128    2,929    2,454    2,691    (470)   (2,033)
Premises and equipment, net   2,426    2,249    2,062    1,938    1,877    177    549 
Right-of-use lease assets   2,552    2,647    2,679    1,950    2,021    (95)   531 
Accrued interest receivable   3,138    3,287    3,348    3,147    2,994    (149)   144 
Deferred tax asset   3,135    2,777    3,001    2,788    3,024    358    111 
Other assets   8,278    7,380    7,245    7,607    7,357    898    921 
Total assets  $999,127   $977,468   $932,933   $945,192   $899,778   $21,659   $99,349 
Liabilities and Stockholders’ Equity                                   
Liabilities                                   
Noninterest-bearing demand deposits  $259,816   $235,779   $211,900   $202,373   $230,947   $24,037   $28,869 
Savings, NOW and money-market deposits   300,907    289,768    278,355    318,402    300,378    11,139    529 
Time deposits   318,142    327,387    281,940    285,731    231,321    (9,245)   86,821 
Total deposits   878,865    852,934    772,195    806,506    762,646    25,931    116,219 
Federal Home Loan Bank advances   -    10,000    50,000    40,000    45,000    (10,000)   (45,000)
Operating lease liabilities   2,661    2,746    2,774    2,056    2,122    (85)   539 
Other liabilities   6,253    3,785    4,780    3,935    3,039    2,468    3,214 
Total liabilities   887,779    869,465    829,749    852,497    812,807    18,314    74,972 
Stockholders’ equity                                   
Preferred stock                                   
Series B Convertible Preferred   -    -    -    -    -    -    - 
Series C Convertible Preferred   -    -    -    -    -    -    - 
Common stock   118    118    116    99    96    -    22 
Additional paid-in capital   112,010    112,015    111,485    103,878    102,424    (5)   9,586 
Retained earnings (accumulated deficit)   4,625    1,023    (2,847)   (6,796)   (10,098)   3,602    14,723 
Accumulated other comprehensive loss   (5,405)   (5,153)   (5,570)   (4,486)   (5,451)   (252)   46 
Total stockholders’ equity   111,348    108,003    103,184    92,695    86,971    3,345    24,377 
Total liabilities and stockholders’ equity  $999,127   $977,468   $932,933   $945,192   $899,778   $21,659   $99,349 

 

 
 

 

OptimumBank Holdings, Inc.

Consolidated Statements of Earnings - Quarterly

(Dollars in thousands, except per share amounts)

 

   Quarterly Trends   2Q25 change vs 
   2Q25   1Q25   4Q24   3Q24   2Q24   1Q25   2Q24 
Interest income                                   
Loans  $14,026   $13,601   $13,679   $13,588   $12,948   $425   $1,078 
Debt securities   158    160    154    163    165    (2)   (7)
Other   1,404    1,246    1,809    1,583    2,075    158    (671)
Total interest income   15,588    15,007    15,642    15,334    15,188    581    400 
                                    
Interest expense                                   
Deposits   5,322    5,278    6,005    5,962    5,919    44    (597)
Borrowings   24    303    402    410    527    (279)   (503)
Total interest expense   5,346    5,581    6,407    6,372    6,446    (235)   (1,100)
                                    
Net interest income   10,242    9,426    9,235    8,962    8,742    816    1,500 
                                    
Credit loss expense (reversal)   1,040    (165)   613    357    195    1,205    845 
Net interest income after credit loss expense (reversal)   9,202    9,591    8,622    8,605    8,547    2,021    2,345 
                                    
Noninterest income                                   
Service charges and fees   1,099    1,038    958    990    864    61    235 
Other   735    193    110    125    337    542    398 
Total noninterest income   1,834    1,231    1,068    1,115    1,201    603    633 
                                    
Noninterest expenses                                   
Salaries and employee benefits   3,738    3,381    2,145    3,078    3,031    357    707 
Professional fees   275    247    374    266    238    28    37 
Occupancy and equipment   294    282    243    234    202    12    92 
Data processing   625    533    570    574    575    92    50 
Regulatory assessment   202    198    204    241    231    4    (29)
Other   1,047    985    846    892    807    62    240 
Total noninterest expenses   6,181    5,626    4,382    5,285    5,084    555    1,097 
                                    
Net earnings before income taxes   4,855    5,196    5,308    4,435    4,664    (341)   191 
                                    
Income taxes   1,253    1,326    1,359    1,133    1,168    (73)   85 
Net earnings  $3,602   $3,870   $3,949   $3,302   $3,496   $(268)  $106 
                                    
Net earnings per share - Basic  $0.31   $0.33   $0.38   $0.34   $0.36   $(0.02)  $(0.05)
Net earnings per share - Diluted  $0.29   $0.32   $0.36   $0.32   $0.34   $(0.03)  $(0.05)

 

 
 

 

OptimumBank Holdings, Inc.

Consolidated Statements of Earnings - Year-to-Date

(Dollars in thousands, except per share amounts)

 

   Six Months Ended     
   June 30,     
   2025   2024   Change 
Interest income               
Loans  $27,627   $24,784   $2,843 
Debt securities   318    336    (18)
Other   2,650    3,534    (884)
Total interest income   30,595    28,654    1,941 
                
Interest expense               
Deposits   10,600    10,997    (397)
Borrowings   327    1,164    (837)
Total interest expense   10,927    12,161    (1,234)
                
Net interest income   19,668    16,493    3,175 
                
Credit loss expense   875    1,253    (378)
Net interest income after credit loss expense   18,793    15,240    3,553 
                
Noninterest income               
Service charges and fees   2,137    1,832    305 
Other   928    608    320 
Total noninterest income   3,065    2,440    625 
                
Noninterest expenses               
Salaries and employee benefits   7,119    5,879    1,240 
Professional fees   522    433    89 
Occupancy and equipment   576    408    168 
Data processing   1,158    1,129    29 
Regulatory assessment   400    352    48 
Other   2,032    1,591    441 
Total noninterest expenses   11,807    9,792    2,015 
                
Net earnings before income taxes   10,051    7,888    2,163 
                
Income taxes   2,579    2,015    564 
Net earnings  $7,472   $5,873   $1,599 
                
Net earnings per share - Basic  $0.64   $0.68   $(0.04)
Net earnings per share - Diluted  $0.61   $0.66   $(0.05)

 

 
 

 

OptimumBank Holdings, Inc.

Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (QTD)

(Dollars in thousands, except average yields/rates)

 

   2Q25   1Q25   2Q24 
       Interest   Average       Interest   Average       Interest   Average 
   Average   and   Yield/   Average   and   Yield/   Average   and   Yield/ 
   Balance   Dividends   Rate(5)   Balance   Dividends   Rate(5)   Balance   Dividends   Rate(5) 
Interest-earning assets                                             
Loans  $803,171   $14,026    6.99%  $796,846   $13,601    6.83%  $753,726   $12,948    6.87%
Securities   22,684    158    2.79%   22,977    160    2.79%   23,491    165    2.81%
Other (1)   123,254    1,404    4.56%   109,863    1,246    4.54%   146,605    2,075    5.66%
                                              
Total interest-earning assets/interest income   949,109    15,588    6.57%   929,686    15,007    6.46%   923,822    15,188    6.58%
                                              
Cash and due from banks   12,833              14,177              12,871           
Premises and equipment   2,336              2,139              1,729           
Other   8,421              7,862              7,091           
                                              
Total assets  $972,699             $953,864             $945,513           
                                              
Interest-bearing liabilities                                             
Savings, NOW and money-market deposits  $280,454   $1,742    2.48%  $277,012   $1,751    2.53%  $325,734   $2,550    3.13%
Time deposits   330,118    3,580    4.34%   312,116    3,527    4.52%   258,325    3,369    5.22%
Borrowings (2)   2,222    24    4.32%   32,222    303    3.76%   50,476    527    4.18%
                                              
Total interest-bearing liabilities/interest expense   612,794    5,346    3.49%   621,350    5,581    3.59%   634,535    6,446    4.06%
                                              
Noninterest-bearing demand deposits   241,457              219,204              220,942           
Other liabilities   8,502              7,719              6,041           
Stockholders’ equity   109,946              105,591              83,995           
                                              
Total liabilities and stockholders’ equity  $972,699             $953,864             $945,513           
                                              
Net interest income       $10,242             $9,426             $8,742      
                                              
Interest-rate spread (3)             3.08%             2.87%             2.52%
                                              
Net interest margin (4)             4.32%             4.06%             3.79%
                                              
Ratio of average interest-earning assets to average interest-bearing liabilities   1.55              1.50              1.46           

 

(1) Includes interest-earning deposits with banks and Federal Home Loan Bank stock dividends.
(2) Includes Federal Home Loan Bank advances and Federal Reserve Bank advances.
(3) Interest-rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
(4) Net interest margin is net interest income divided by average interest-earning assets.
(5) Annualized.

 

 
 

 

OptimumBank Holdings, Inc.

Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (YTD)

(Dollars in thousands, except average yields/rates)

 

   Six Months Ended June 30, 
   2025   2024 
       Interest   Average       Interest   Average 
   Average   and   Yield/   Average   and   Yield/ 
   Balance   Dividends   Rate(5)   Balance   Dividends   Rate(5) 
Interest-earning assets                              
Loans  $800,008   $27,627    6.91%  $730,202   $24,784    6.79%
Securities   22,831    318    2.79%   23,828    336    2.82%
Other (1)   116,559    2,650    4.55%   126,500    3,534    5.59%
                               
Total interest-earning assets/interest income   939,398    30,595    6.51%   880,530    28,654    6.51%
                               
Cash and due from banks   13,504              14,018           
Premises and equipment   2,238              1,602           
Other   8,134              6,272           
                               
Total assets  $963,274             $902,422           
                               
Interest-bearing liabilities                              
Savings, NOW and money-market deposits  $278,733   $3,493    2.51%  $322,360   $4,906    3.04%
Time deposits   321,117    7,107    4.43%   229,791    6,091    5.30%
Borrowings (2)   17,223    327    3.80%   54,508    1,164    4.27%
                               
Total interest-bearing liabilities/interest expense   617,073    10,927    3.54%   606,659    12,161    4.01%
                               
Noninterest-bearing demand deposits   230,330              211,878           
Other liabilities   8,102              5,732           
Stockholders’ equity   107,769              78,153           
                               
Total liabilities and stockholders’ equity  $963,274             $902,422           
                               
Net interest income       $19,668             $16,493      
                               
Interest-rate spread (3)             2.97%             2.50%
                               
Net interest margin (4)             4.19%             3.75%
                               
Ratio of average interest-earning assets to average interest-bearing liabilities   1.52              1.45           

 

(1) Includes interest-earning deposits with banks and Federal Home Loan Bank stock dividends.
(2) Includes Federal Home Loan Bank advances and Federal Reserve Bank advances.
(3) Interest-rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
(4) Net interest margin is net interest income divided by average interest-earning assets.
(5) Annualized.

 

 
 

 

OptimumBank Holdings, Inc.

Loans Segments Analysis

(Dollars in thousands)

 

                       June 30, 2025 change vs 
   June 30,   March 31,   December 31,   September 30,   June 30,   March 31,   June 30, 
   2025   2025   2024   2024   2024   2025   2024 
Residential real estate  $66,602   $71,638   $74,064   $75,877   $76,721   $(5,036)  $(10,119)
Multi-family real estate   68,321    63,615    64,001    62,280    63,432    4,706    4,889 
Commercial real estate   478,224    482,113    485,671    479,038    485,439    (3,889)   (7,215)
Land and construction   61,126    80,338    77,295    72,729    64,862    (19,212)   (3,736)
Commercial   50,351    50,585    52,810    39,957    36,133    (234)   14,218 
Consumer   59,940    51,955    50,399    48,177    34,485    7,985    25,455 
Total loans   784,564    800,244    804,240    778,058    761,072    (15,680)   23,492 
Deduct:                                   
Net deferred loan fees and costs   (678)   (742)   (595)   (807)   (961)   64    283 
Allowance for credit losses   (9,338)   (8,270)   (8,660)   (8,337)   (8,208)   (1,068)   (1,130)
Loans, net  $774,548   $791,232   $794,985   $768,914   $751,903   $(16,684)  $22,645 

 

OptimumBank Holdings, Inc.

Allowance for Credit Losses Analysis

(Dollars in thousands)

 

                       June 30, 2025 change vs 
   June 30,   March 31,   December 31,   September 30,   June 30,   March 31,   June 30, 
   2025   2025   2024   2024   2024   2025   2024 
Beginning balance  $8,270   $8,660   $8,337   $8,208   $8,281   $(390)  $(11)
Credit loss expense (reversal) - funded   1,043    (144)   569    409    263    1,187    780 
Charge-offs   (72)   (325)   (336)   (366)   (440)   253    368 
Recoveries   97    79    90    86    104    18    (7)
Ending balance  $9,338   $8,270   $8,660   $8,337   $8,208   $1,068   $1,130 

 

Explanation of Certain Unaudited Non-GAAP Financial Measures

 

This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.

 

 
 

 

Non-GAAP Reconciliations

 

Pre-tax, Pre-provision earnings

 

(Dollars in thousands)  2Q25   1Q25   4Q24   3Q24   2Q24 
Net Earnings (GAAP)  $3,602   $3,870   $3,949   $3,302   $3,496 
Plus: Income Tax Expense   1,253    1,326    1,359    1,133    1,168 
Plus: Credit Loss Expense (Reversal)   1,040    (165)   613    357    195 
Pre-tax, Pre-provision earnings (Non-GAAP)  $5,895   $5,031   $5,921   $4,792   $4,859 

 

Tangible Book Value Per Common Share and Per Fully Diluted Share

 

(Dollars in thousands, except per share data)  6/30/2025   3/31/2025   12/31/2024   9/30/2024   6/30/2024 
Total Stockholders’ (GAAP) and Tangible Common Equity  $111,348   $108,003   $103,184   $92,695   $86,971 
Common Shares Outstanding   11,751    11,751    11,636    10,007    9,677 
Effect of Conversion of Series B Preferred Shares   11,114    11,114    11,114    11,114    11,114 
Effect of Conversion of Series C Preferred Shares   526    526    526    526    526 
Total Fully Diluted Shares (Non-GAAP)   23,391    23,391    23,276    21,646    21,317 
                          
Tangible Book Value per Common Share  $9.48   $9.19   $8.87   $9.26   $8.99 
Tangible Book Value per Fully Diluted Share (Non-GAAP)  $4.76   $4.62   $4.43   $4.28   $4.08