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

Rhea-AI Summary

OptimumBank Holdings (NYSE American: OPHC) reported 4Q25 net earnings of $4.85 million ($0.42 basic, $0.21 diluted) and full-year 2025 net earnings of $16.64 million ($1.42 basic, $0.71 diluted). Total assets reached $1.11 billion and gross loans grew to $958.79 million.

Key drivers included a higher net interest margin of 4.39%, deposit growth of 20.66% YoY, and improved credit metrics with an allowance for credit losses of $10.27 million (1.07% of loans).

Positive

• Net earnings up to $4.85M in 4Q25, contributing to $16.64M for 2025
• Gross loans increased $145.07M quarter-over-quarter to $958.79M
• Total deposits grew 20.66% YoY to $931.75M
• Net interest margin expanded to 4.39%, a 60 bps increase YoY
• Tier 1 Leverage Ratio remained strong at 11.39%

Negative

• Total deposits declined $27.74M sequentially due to year-end business account seasonality
• Noninterest expenses rose to $6.74M in 4Q25, pressuring efficiency despite revenue growth
• Net charge-offs were $134K in 4Q25, indicating some credit loss activity

News Market Reaction – OPHC

+3.18% 2.0x vol

1 alert

+3.18% Session close to close

$56.05M Market Cap

2.0x Rel. Volume

In the Feb 2 session, OPHC gained 3.18%, reflecting a moderate positive market reaction. Trading volume was elevated at 2.0x the daily average, suggesting notable buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details record Q4 2025 and full-year 2025 performance, with net earnings of $4.85M...

Analysis

This announcement details record Q4 2025 and full-year 2025 performance, with net earnings of $4.85M for the quarter and $16.65M for the year, supported by a 4.39% net interest margin and loan growth to $958.79M. Deposits dipped sequentially but rose strongly year over year. Prior disclosures show ongoing capital structure work and insider activity. Investors may watch credit quality, funding mix, capital ratios such as the 11.39% Tier 1 leverage ratio, and execution of new lending verticals in 2026.

Key Figures

Q4 2025 net earnings: $4.85M Q4 2025 diluted EPS: $0.21 2025 net earnings: $16.65M +5 more

8 metrics

Q4 2025 net earnings $4.85M Fourth quarter 2025

Q4 2025 diluted EPS $0.21 Fourth quarter 2025 diluted earnings per share

2025 net earnings $16.65M Year ended December 31, 2025

Net interest margin 4.39% Fourth quarter 2025

ROAA 1.77% Return on Average Assets, Q4 2025 (annualized)

ROAE 16.23% Return on Average Equity, Q4 2025 (annualized)

Gross loans $958.79M Balance at December 31, 2025

Total deposits $931.75M Balance at December 31, 2025

Historical Context

5 past events · Latest: Jan 16 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jan 16	Conference presentation	Neutral	+0.0%	Participation in Emerging Growth Conference with corporate presentation and Q&A.
Jan 09	Loan promotion	Positive	+0.7%	Launch of Q1 2026 owner-occupied CRE promotion with defined pricing terms.
Jan 05	Capital structure update	Positive	+0.2%	Capital structure modernization to support asset growth beyond $1.1B level.
Dec 09	Insider share purchase	Positive	+1.4%	Director open-market purchase following what management termed strongest quarter.
Nov 12	Q3 2025 earnings	Positive	-0.6%	Stronger Q3 2025 earnings with higher NIM, deposits, and loan growth.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent fundamentally positive updates (earnings, capital structure, insider activity) have usually seen modestly positive or flat next-day moves, with only one negative reaction to a strong earnings report.

Recent Company History

Over the last few months, OPHC has consistently highlighted operational progress and balance sheet growth. The Q3 2025 earnings release on Nov 12, 2025 showed expanding net interest income and deposits but drew a small negative reaction. Subsequent news on insider purchases, capital structure enhancements, and a Q1 2026 loan promotion saw modest gains. A conference appearance headline in Jan 2026 was neutral. Today’s record 4Q25 and full-year 2025 figures extend this trajectory of improving profitability and asset growth.

Key Terms

return on average assets (roaa), net interest margin, return on average equity (roae), efficiency ratio, +4 more

8 terms

return on average assets (roaa) financial

"Return on Average Assets (ROAA) was 1.77% for the fourth quarter of 2025"

Return on average assets (ROAA) measures how much profit a company generates from the assets it owns, calculated by dividing net income by the average total assets over a period. Investors use it to judge how efficiently management turns assets into earnings — like checking how many miles a car gets per gallon — helping compare companies, detect improving or declining performance, and assess capital use without being skewed by short-term asset swings.

net interest margin financial

"Net interest margin was 4.39%, reflecting a two-basis point increase"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

return on average equity (roae) financial

"Return on Average Equity (ROAE) was 16.23% for the fourth quarter of 2025"

Return on average equity (ROAE) measures how much profit a company generates for its owners relative to the average amount of shareholders’ equity over a period; it’s calculated by dividing profit after expenses and taxes by the average owners’ stake (equity) during that time. Investors use ROAE to judge how efficiently a company turns invested capital into profit—like checking how much interest you earn on an average bank balance—to compare profitability across firms and assess management performance.

efficiency ratio financial

"The Company maintained an efficiency ratio of 49.59% for the fourth quarter of 2025"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

pre-tax pre-provision net revenue (ppnr) financial

"Pre-tax pre-provision net revenue (PPNR) | | $6,855 | | $6,426"

Pre-tax pre-provision net revenue (PPNR) measures a bank’s core operating income before setting aside money for potential loan losses and before taxes, combining interest income minus operating costs and noncredit adjustments. It matters to investors because it shows the underlying earning power a bank has to absorb future loan losses and grow, like judging a car’s engine output before adding the weight of passengers and luggage — it reveals operating strength independent of one-time credit swings.

allowance for credit losses financial

"The allowance for credit losses stood at $10.27 million as of December 31, 2025"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

federal home loan bank (fhlb) advances financial

"The Company had $50.00 million in Federal Home Loan Bank (“FHLB”) advances"

Loans that member banks and credit unions take from the Federal Home Loan Bank system to meet short-term cash needs or fund mortgages; they work like a secured line of credit where the borrower pledges assets as collateral. Investors watch FHLB advances because rising use or higher costs can signal pressure on a lender’s liquidity or profit margins, while stable, inexpensive advances suggest a healthy, low-cost funding source.

tier 1 leverage ratio financial

"Capital levels remain strong, with a Tier 1 Leverage Ratio of 11.39%"

Tier 1 leverage ratio measures a bank’s core capital — the money that can absorb losses — as a share of its total assets, showing how much of its balance sheet is funded by real loss-absorbing capital rather than borrowed money. Investors use it like a safety gauge: a higher ratio means a bigger cushion against shocks and lower risk of insolvency, similar to how a thicker spare tire reduces the chance of being stranded.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Fort Lauderdale, FL, Feb. 02, 2026 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (NYSE American: OPHC) (the “Company”) is a bank holding company. OptimumBank (the “Bank”) is a Florida-chartered commercial bank and is owned 100% by the Company. The Company is pleased to announce net earnings of $4.85 million, or $0.42 per basic share, and $0.21 per diluted share, for the fourth quarter of 2025. This compares to net earnings of $4.32 million, or $0.37 per basic share, and $0.18 per diluted share, for the third quarter of 2025, and $3.95 million net earnings, or $0.38 per basic share, and $0.18 per diluted share, for the comparable quarter last year. For the twelve-month period ended December 31, 2025, net earnings was $16.64 million, or $1.42 per basic share, and $0.71 per diluted share, compared to net earnings of $13.12 million, or $1.39 per basic share, and $0.63 per diluted share, for the twelve-month period ended December 31, 2024. The increase of $3.52 million in earnings for the twelve-month period ended December 31, 2025, compared to the same period in 2024, was primarily driven by a $7.90 million improvement in net interest income and $2.15 million increase in noninterest income, partially offset by an increase in noninterest expenses and income taxes. The diluted share count incorporates the effect of certain changes to existing preferred shares, and comparability with prior diluted EPS figures may be affected accordingly.

The Company has demonstrated continued progress during the fourth quarter of 2025. The gross loan portfolio increased by $145.07 million, or 17.83%, during the fourth quarter of 2025 to $958.79 million. Total deposits declined by $27.74 million from September 30, 2025, totalling $931.75 million at December 31, 2025, down 2.89% from the prior quarter. This also represents growth of $159.56 million in total deposits since the December 31, 2024, or 20.66%.

Highlights for the Fourth Quarter of 2025

	●	Net earnings of $4.85 million, or $0.42 per basic share, and $0.21 diluted earnings per share (“diluted EPS”).
	●	Return on Average Assets (ROAA) was 1.77% for the fourth quarter of 2025, compared to 1.68% as of September 30, 2025 (both annualized).
	●	Net interest margin was 4.39%, reflecting a two-basis point increase from 4.37% at September 30, 2025.
	●	Total assets grew by $28.64 million to $1.11 billion from September 30, 2025.
	●	Total deposits decreased by $27.74 million to $931.75 million from September 30, 2025.
	●	Gross loans increased by $145.07 million during the quarter to $958.79 million, compared to $813.7 million at September 30, 2025.
	●	Total stockholders’ equity increased by $5.00 million to $121.90 million as of December 31, 2025, up from $116.89 million as of September 30, 2025, reflecting continued earnings retention.
	●	Return on Average Equity (ROAE) was 16.23% for the fourth quarter of 2025, compared to 15.17% as of September 30, 2025 (both annualized).

Highlights for the Year Ended December 31, 2025

	●	Net earnings of $16.65 million, or $1.42 per basic share, and $0.71 diluted EPS, compared to $1.39 per basic share and $0.63 per diluted share for 2024.
	●	Return on Average Assets (ROAA) was 1.64%, compared to 1.42% for the twelve-month period ended December 31, 2024.
	●	Net interest margin was 4.28%, reflecting a 45-basis point increase from 3.83% for the twelve-month period ended December 31, 2024.
	●	Total assets grew by $178.75 million to $1.11 billion from December 31, 2024, an increase of approximately 19.16% compared to $932.93 million at December 31, 2024.
	●	Total deposits grew by $159.56 million to $931.75 million from December 31, 2024, representing an increase of approximately 20.66% compared to $772.19 million at December 31, 2024.
	●	Gross loans increased by $154.55 million to $958.79 million at December 31, 2025, as compared to December 31, 2024.
	●	Total stockholders’ equity increased by $18.71 million to $121.90 million as of December 31, 2025, up from $103.18 million as of December 31, 2024, reflecting continued earnings retention.
	●	Fully diluted tangible book value per share increased to $5.18 per diluted share at December 31, 2025, up $0.75, or 16.9% from the prior year

“We ended 2025 with the best quarter and the best year we have ever had,” said Moishe Gubin, Chairman of the Board. “Our focus remains simple and effective. We are now on the cusp of fully realizing our strategic plan, which includes expanding into new, financially related verticals that complement our banking operations. We’ve built the foundation, and we are excited to unveil the next phase of this journey in the near future.”

Net interest income for the quarter-ended December 31, 2025 increased to $11.87 million, up by $0.82 million from the third quarter of 2025 and $2.64 million from the fourth 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 was slightly lower at 3.34%, down by 14-basis points from 3.48% in the third quarter, while interest-earning asset yields were one basis point lower at 6.45%. The Company’s net interest margin rose to 4.39%, a reflection of disciplined loan and deposit pricing strategy and balance sheet optimization.

Noninterest income for the quarter-ended December 31, 2025 decreased to $1.73 million, or $0.26 million lower from the prior quarter primarily driven by fewer loan prepayment fees. Noninterest expenses increased to $6.74 million, primarily due to other expenses including marketing, partially offset by lower staffing related expense. The Company maintained an efficiency ratio of 49.59% for the fourth quarter of 2025, consistent with prudent cost management amid balance sheet expansion and associated revenue expansion.

Credit loss expense as of quarter-ended December 31, 2025 decreased to $0.40 million, due to the improvements in the credit quality of the loan portfolio and the evaluation of factors used to determine the credit loss. Gross charge-offs remained modest at $201,000, while recoveries totalled $67,000, resulting in net charge-offs of $134,000, reflecting a well-managed loan portfolio for the fourth quarter of 2025. The allowance for credit losses stood at $10.27 million as of December 31, 2025, or 1.07% of total loans.

Loan portfolio growth was strong in the fourth quarter of 2025. Gross loans increased by $145.07 million. Commercial real estate and residential real estate segments continued to expand, growing by $141.64 million and $7.30 million, respectively. Additionally, there was an increase in commercial and consumer loans of $2.59 million and $2.44 million, respectively. These gains were partially offset by a $7.15 million decline in land and construction loans and a $1.74 million decline in multi-family real estate. The growth experienced in the loan portfolio is due to the implementation of our relationship-based banking model and the success of our lenders in competing for new business.

On the funding side, total deposits decreased by $27.74 million to $931.75 million from the third quarter of 2025, primarily in noninterest-bearing demand deposits that decreased by $47.45 million to $266.52 million. The decline is primarily related to year end business account seasonality. The Company had $50.00 million in Federal Home Loan Bank (“FHLB”) advances outstanding at December 31, 2025.

Capital levels remain strong, with a Tier 1 Leverage Ratio of 11.39%, well above regulatory minimums. The Company remains well positioned to support continued growth and earnings momentum as the Company heads into 2026.

The Company’s outlook remains constructive. During 2025, the Company formed a new wholly owned subsidiary, capitalized through a dividend from the Bank to the Company, which is intended to offer a focused suite of financing solutions, including bridge-to-HUD financing and FHA and HUD insured loan origination for multifamily and healthcare properties. The platform is expected to roll out in 2026, leveraging the Company’s established relationships and specialized expertise across skilled nursing, senior housing, and multifamily sectors. Additionally, 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 (see below for a summary of non-GAAP reconciliation):

		Quarterly Trends																				4Q25 change vs
(Dollars in thousands except per share amounts)		4Q25				3Q25				2Q25				1Q25				4Q24				3Q25				4Q24
Selected Balance Sheet Data
Total assets		$	1,111,678			$	1,083,043			$	999,127			$	977,468			$	932,933			$	28,635			$	178,745
Total gross loans			958,793				813,722				784,564				800,244				804,240				145,071				154,553
Total deposits			931,750				959,487				878,865				852,934				772,195				(27,737	)			159,555
Earnings Highlights
Net earnings		$	4,853			$	4,323			$	3,602			$	3,870			$	3,949			$	530			$	904
Diluted earnings per share (EPS)		$	0.21			$	0.18			$	0.15			$	0.17			$	0.18			$	0.02			$	0.03
Net interest income		$	11,871			$	11,048			$	10,242			$	9,426			$	9,235			$	823			$	2,636
Performance Ratios
Net interest margin			4.39	%			4.37	%			4.32	%			4.06	%			4.19	%			0.02	%			0.20		%
Net interest spread			3.11	%			2.98	%			3.08	%			2.87	%			2.90	%			0.13	%			0.21		%
Cost of interest-bearing liabilities			3.34	%			3.48	%			3.49	%			3.59	%			4.02	%			(0.14	)%			(0.68		)%
Efficiency ratio			49.59	%			50.68	%			51.18	%			52.79	%			42.53	%			(1.09	)%			7.05		%
Net loan-to-deposit ratio			101.67	%			83.67	%			88.13	%			92.77	%			102.95	%			18.00	%			(1.28		)%
Return on (annualized)
Average assets (ROAA)			1.77	%			1.68	%			1.48	%			1.62	%			1.62	%			0.09	%			0.15		%
Average equity (ROAE)			16.23	%			15.17	%			13.10	%			14.66	%			16.19	%			1.08	%			0.04		%
Average tangible assets (ROTA)			1.77	%			1.68	%			1.48	%			1.62	%			1.62	%			0.09	%			0.15		%
Pre-tax pre-provision net revenue (PPNR)		$	6,855			$	6,426			$	5,895			$	5,031			$	5,921			$	429			$	934
Other Operating Measures
Common shares outstanding			11,533,943				11,883,943				11,751,082				11,751,082				11,636,092				(350,000	)			(102,149		)
Non-diluted tangible book value per share		$	10.57			$	9.84			$	9.48			$	9.19			$	8.87			$	0.73			$	1.71
Fully diluted shares outstanding			23,523,473				23,523,473				23,390,612				23,390,612				23,275,622				0				247,851
Fully diluted tangible book value per share		$	5.18			$	4.97			$	4.76			$	4.62			$	4.43			$	0.21			$	0.75
Tangible common equity to tangible assets			10.97	%			10.79	%			11.14	%			11.05	%			11.06	%			0.17	%			(0.11	)	%
Tier 1 Leverage Ratio			11.39	%			11.71	%			11.89	%			11.71	%			10.91	%			(0.31	)%			0.49		%

Financial Results

Statement of Earnings

Net earnings were $4.85 million for the fourth quarter of 2025, compared to net earnings of $4.32 million for the third quarter of 2025, and $3.95 million for the fourth quarter of 2024. The increase from the third quarter of 2025 was primarily due to an increase in net interest income to $11.87 million, compared to $11.05 million in the third quarter.

Total interest income was $17.44 million for the fourth quarter of 2025, compared to $16.32 million in the third quarter of 2025 and $15.64 million in the fourth quarter of 2024. The sequential growth was driven by a $1.36 million increase in interest income from loans. Compared to the third quarter of 2025, the increase was primarily due to a $76.25 million increase in average loan balances.

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

		Quarterly Trends																				4Q25 change vs
(Dollars in thousands)		4Q25				3Q25				2Q25				1Q25				4Q24				3Q25				4Q24
Interest income
Loans		$	15,437			$	14,082			$	14,026			$	13,601			$	13,679			$	1,355			$	1,758
Debt securities			164				153				158				160				154				11				10
Other			1,837				2,086				1,404				1,246				1,809				(249	)			28
Total interest income		$	17,438			$	16,321			$	15,588			$	15,007			$	15,642			$	1,117			$	1,796

Interest expense totalled $5.57 million for the fourth quarter of 2025, compared to $5.27 million for the third quarter of 2025 and $6.41 million for the fourth quarter of 2024. Compared to the third quarter of 2025, the increase in interest expense was primarily attributable to a $60.00 million increase in total interest-bearing liability balances, partially offset by a 14-basis point decrease in the cost of interest-bearing liabilities, from 3.48% to 3.34%. Compared to the fourth quarter of 2024, the decrease in rates paid was substantial, with a 60-basis point decrease in the cost of interest-bearing liabilities, from 3.94% to 3.34% primarily from lower interest rates paid on deposits and borrowings.

Net interest income was $11.87 million in the fourth quarter of 2025, up from $11.05 million in the third quarter of 2025 and $9.24 million in the fourth quarter of 2024. The quarter-over-quarter increase was driven by growth in the average interest-earning assets of $70.11 million, and the lower cost on interest bearing liabilities. On a year-over-year basis, the growth in net interest income was primarily attributable to a $91.57 million increase in average loan balances and a $38.08 million increase in average interest-earning deposits with banks balances, further supported by lower funding costs.

Net interest margin expanded to 4.39% for the fourth quarter of 2025, compared to 4.37% and 3.87% for the third and fourth quarters of 2025 and 2024, respectively. Compared to the third quarter of 2025, net interest margin increased by two basis points, primarily driven by the decrease in interest-bearing liabilities cost. Compared to the fourth quarter of 2024, net interest margin increased by 60 basis points, primarily attributable to a decrease in the cost of interest-bearing liabilities.

The cost of interest-bearing liabilities was 3.34% in the fourth quarter of 2025, down from 3.48% in the third quarter of 2025 and down from 3.94% in the fourth quarter of 2024. The decrease from the third quarter of 2025 was primarily due to a decrease in yields in the NOW, money market, and time deposit portfolios. Compared to the same quarter last year, the cost of interest-bearing liabilities decreased substantially by 60 basis points. This reduction was due to a decrease in yields across the deposit portfolio with disciplined pricing following rate reductions.

Credit loss expense was $0.40 million during the fourth quarter of 2025, compared to $0.76 million in the third quarter of 2025, and $0.61 million for the fourth quarter of 2024. The decrease in credit loss expense from the third quarter was primarily attributable to improvements in the credit quality of the loan portfolio and the evaluation of factors used to determine the credit loss. Gross charge-offs remained modest at $201,000, while recoveries totalled $67,000, resulting in net charge-offs of $134,000 during the fourth quarter of 2025. The Company’s allowance for credit losses stood at $10.27 million, or 1.07% of total loans, as of December 31, 2025.

Noninterest income totalled $1.73 million for the fourth quarter of 2025, down from $1.98 million in the prior quarter and up from $1.07 million in the fourth quarter of 2024. The quarter-over-quarter decrease of $0.26 million was primarily driven by fewer loan prepayment fees. Compared to the same quarter last year, the $0.66 million increase in noninterest income related to increases in wire transfers, ACH fees on deposit payment transactions, and gains on the sale of SBA loans.

Noninterest expenses totalled $6.74 million for the fourth quarter of 2025, compared to $6.60 million in the third quarter of 2025 and $4.38 million in the fourth quarter of 2024. Compared to the fourth quarter of 2024, the increase of $2.36 million includes increases of $1.53 million, $0.22 million, and $0.67 million in employee compensation expenses, data processing, and deposit operation expenses, respectively.

Regarding the $0.14 million increase in noninterest expenses when compared to the prior quarter, this was primarily due to higher other expenses, primarily in marketing expenses related to the Company’s 25^th anniversary client appreciation event held in Q4 2025. This was partially offset by lower salaries and employee benefit expense compared to the prior quarter, the result of year end incentive compensation adjustments.

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

		Quarterly Trends																				4Q25 change vs
(Dollars in thousands)		4Q25				3Q25				2Q25				1Q25				4Q24				3Q25				4Q24
Noninterest expenses
Salaries and employee benefits			3,672				4,004				3,738				3,381				2,145				(332	)			1,527
Professional fees			333				276				275				247				374				57				(41	)
Occupancy and equipment			328				327				294				282				243				1				85
Data processing			794				788				625				533				570				6				224
Regulatory assessment			161				126				202				198				204				35				(43	)
Losses on sale and write-downs of other real estate owned			54				-				-				-				-				54				54
Other			1,401				1,083				1,047				985				846				318				555
Total noninterest expenses			6,743				6,604				6,181				5,626				4,382				139				2,361

Income tax expense was $1.60 million for the fourth quarter of 2025 compared $1.34 million in the third quarter of 2025 and $1.36 million in the fourth quarter of 2024. The effective tax rate for the quarter was 24.8%, compared to 23.7% in the prior quarter and 25.6% from the prior year comparative quarter.

Balance Sheet

Total assets were $1.11 billion as of December 31, 2025, increasing from $1.08 billion at September 30, 2025, and up from $932.93 million at December 31, 2024. The quarter-over-quarter growth of $28.64 million was primarily attributable to a $144.48 million increase in net loans, partially offset by a $120.53 million decrease in cash and cash equivalents.

Cash and cash equivalents at December 31, 2025, was $114.56 million, which decreased from $235.09 million at September 30, 2025, and increased from $93.63 million at December 31, 2024. The decrease quarter-over-quarter was primarily driven by the growth in loans.

Investment securities (debt securities available for sale and held-to-maturity) at December 31, 2025, were $25.40 million, compared to $23.17 million at September 30, 2025, and $23.05 million at December 31, 2024. No sales of debt securities were reported during these periods.

Total gross loans at December 31, 2025, were $958.79 million, an increase from $813.72 million at September 30, 2025, and up from $804.24 million at December 31, 2024. Gross loans increased during the quarter reflecting growth in commercial real estate, residential real estate, commercial, and consumer loans. Compared to December 31, 2024, the gross loan portfolio increased by $154.55 million, reflecting growth primarily in commercial real estate.

The allowance for credit losses (“ACL”) was $10.27 million as of December 31, 2025, representing 1.07% of total loans, decreasing from 1.23% at September 30, 2025, and up from $10.02 million and $8.66 million at September 30, 2025, and December 31, 2024, respectively. The quarter-over-quarter increase of $0.26 million was primarily driven by the growth in the loan portfolio. The increase was partially offset by net charge-offs of $134,000, as gross charge-offs remained modest at $201,000 and recoveries totalled $67,000. The ACL ratio reflects continued credit discipline and a well-diversified loan portfolio.

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

																						December 31, 2025 change vs
		December 31,				September 30,				June 30,				March 31,				December 31,				September 30,				December 31,
(Dollars in thousands)		2025				2025				2025				2025				2024				2025				2024
Beginning balance		$	10,018			$	9,338			$	8,270			$	8,660			$	8,337			$	680			$	1,681
Credit loss expense (reversal) - funded			389				639				1,043				(144	)			569				(250	)			(180	)
Charge-offs			(201	)			(129	)			(72	)			(325	)			(336	)			(72	)			135
Recoveries			67				170				97				79				90				(103	)			(23	)
Ending balance		$	10,273			$	10,018			$	9,338			$	8,270			$	8,660			$	255			$	1,613

Nonaccrual loans totalled $2.90 million at December 31, 2025, compared to $2.98 million at September 30, 2025, and $7.58 million at December 31, 2024. The decrease from the prior year was primarily due to a decrease in land and construction, and consumer nonaccrual loans of $6.20 million, offset by a $1.52 million increase in nonaccrual commercial loans during the year. There were no loans 90 days or more past due and still accruing interest as of December 31, 2025. Additionally, the Company did not report any modified loans to borrowers experiencing financial difficulty during the fourth quarter of 2025.

Nonperforming assets (NPA) reflected strong asset quality at September 30, 2025. Nonaccrual loans decreased to $2.90 million from $7.58 million at December 31, 2024. The Company reported one real estate owned (“OREO”) property totalling $0.55 million that was transferred to other assets related to a previously reported nonaccrual consumer loan.

Total deposits at December 31, 2025, were $931.75 million, a decrease from $959.49 million at September 30, 2025, and an increase from $772.20 million at December 31, 2024. The decrease from September 30, 2025, was attributable to a decrease in noninterest-bearing demand deposits, savings, NOW, and money-market deposits, partially offset by increases in time deposits. The increase from December 31, 2024 was attributable to increases in all deposit categories, most notably a 27.09% increase in time deposits and a 25.21% increase in noninterest-bearing demand deposits. The Company continues to maintain a diverse and stable funding base.

Accumulated other comprehensive loss (AOCL) was $4.60 million at December 31, 2025, compared to $4.75 million at September 30, 2025, and $5.57 million at December 31, 2024. The unrealized loss in AOCL improved by $0.16 million quarter-over-quarter, primarily due to the decline in long-term interest rates impacting the fair value of available-for-sale securities. Year-over-year, AOCL improved by $0.97 million, reflecting the net impact of favourable fair value changes over the trailing twelve months, resulting in unrealized gains. All AOCL amounts represent unrealized gains and losses, net of applicable income taxes, and have no impact on reported earnings.

Shareholders’ equity was $121.90 million as of December 31, 2025, compared to $116.89 million as of September 30, 2025, and $103.18 million as of December 31, 2024. The fourth quarter increase was principally attributable to fourth quarter net earnings of $4.85 million, and a decrease in accumulated other comprehensive loss.

Tangible book value per share at December 31, 2025, was $10.57, up from $9.84 at September 30, 2025, and $8.87 at December 31, 2024. This non-diluted measure is based on common shares outstanding, which were 11,533,943 at December 31, 2025 (down from 11,883,943 at September 30, 2025, and down from 11,636,112 at December 30, 2024).

Although GAAP accounting generally presents book value based on common shares outstanding, the Company believes a more comprehensive measure of shareholder value is on a fully diluted basis.

On a fully diluted basis, tangible book value per share was $5.18 at December 31, 2025, up from $4.97 at September 30, 2025, and $4.43 at December 31, 2024. This is based on fully diluted shares outstanding of 23,523,473 at December 31, 2025 (consistent with 23,523,473 at September 30, 2025, and up from 23,275,622 at December 31, 2024).

The increase in both non-diluted and fully diluted tangible book value per share reflects strong quarterly earnings performance and overall capital strength.

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 Sheets (Unaudited)
(Dollars in thousands)

																						December 31, 2025 change vs
		December 31,				September 30,				June 30,				March 31,				December 31,				September 30,				December 31,
		2025				2025				2025				2025				2024				2025				2024
Assets
Cash and due from banks		$	9,349			$	9,271			$	8,833			$	13,542			$	13,982			$	78			$	(4,633	)
Interest-bearing deposits with banks			105,210				225,815				172,921				129,914				79,648				(120,605	)			25,562
Total cash and cash equivalents			114,559				235,086				181,754				143,456				93,630				(120,527	)			20,929
Debt securities available for sale			25,184				22,926				22,378				23,043				22,773				2,258				2,411
Debt securities held-to-maturity			214				246				260				269				281				(32	)			(67	)
Loans, net of allowance for credit losses			947,294				802,812				774,548				791,232				794,985				144,482				152,309
Federal Home Loan Bank stock			3,028				658				658				1,128				2,929				2,370				99
Premises and equipment, net			2,490				2,308				2,426				2,249				2,062				182				428
Other real estate owned			551				-				-				-				-				551				551
Right-of-use lease assets			2,617				2,725				2,552				2,647				2,679				(108	)			(62	)
Accrued interest receivable			3,621				3,171				3,138				3,287				3,348				450				273
Deferred tax asset			3,108				3,238				3,135				2,777				3,001				(130	)			107
Other assets			9,012				9,873				8,278				7,380				7,245				(861	)			1,767
Total assets		$	1,111,678			$	1,083,043			$	999,127			$	977,468			$	932,933			$	28,635			$	178,745
Liabilities and Stockholders’ Equity
Liabilities
Noninterest-bearing demand deposits		$	266,520			$	313,973			$	259,816			$	235,779			$	211,900			$	(47,453	)		$	54,620
Savings, NOW and money-market deposits			306,921				309,087				300,907				289,768				278,355				(2,166	)			28,566
Time deposits			358,309				336,427				318,142				327,387				281,940				21,882				76,369
Total deposits			931,750				959,487				878,865				852,934				772,195				(27,737	)			159,555
Federal Home Loan Bank advances			50,000				-				-				10,000				50,000				50,000				-
Operating lease liabilities			2,745				2,846				2,661				2,746				2,774				(101	)			(29	)
Other liabilities			5,286				3,822				6,253				3,785				4,780				1,464				506
Total liabilities			989,781				966,155				887,779				869,465				829,749				23,626				160,032
Stockholders’ equity
Preferred stock:
Series B Convertible Preferred			-				-				-				-				-				-				-
Series C Convertible Preferred			-				-				-				-				-				-				-
Common stock			115				119				118				118				116				(4	)			(1	)
Additional paid-in capital			112,578				112,574				112,010				112,015				111,485				4				1,093
Retained earnings (accumulated deficit)			13,801				8,948				4,625				1,023				(2,847	)			4,853				16,648
Accumulated other comprehensive loss			(4,597	)			(4,753	)			(5,405	)			(5,153	)			(5,570	)			156				973
Total stockholders’ equity			121,897				116,888				111,348				108,003				103,184				5,009				18,713
Total liabilities and stockholders’ equity		$	1,111,678			$	1,083,043			$	999,127			$	977,468			$	932,933			$	28,635			$	178,745

OptimumBank Holdings, Inc.
Consolidated Statements of Earnings - Quarterly (Unaudited)
(Dollars in thousands, except per share amounts)

		Quarterly Trends																				4Q25 change vs
		4Q25				3Q25				2Q25				1Q25				4Q24				3Q25				4Q24
Interest income
Loans		$	15,437			$	14,082			$	14,026			$	13,601			$	13,679			$	1,355			$	1,758
Debt securities			164				153				158				160				154				11				10
Other			1,837				2,086				1,404				1,246				1,809				(249	)			28
Total interest income			17,438				16,321				15,588				15,007				15,642				1,117				1,796
Interest expense
Deposits			5,561				5,273				5,322				5,278				6,005				288				(444	)
Borrowings			6				-				24				303				402				6				(396	)
Total interest expense			5,567				5,273				5,346				5,581				6,407				294				(840	)
Net interest income			11,871				11,048				10,242				9,426				9,235				823				2,636
Credit loss expense (reversal)			398				763				1,040				(165	)			613				(365	)			(215	)
Net interest income after credit loss expense (reversal)			11,473				10,285				9,202				9,591				8,622				458				2,421
Noninterest income
Service charges and fees			1,268				1,252				1,099				1,038				958				16				310
Other			459				730				735				193				110				(271	)			349
Total noninterest income			1,727				1,982				1,834				1,231				1,068				(255	)			659
Noninterest expenses
Salaries and employee benefits			3,672				4,004				3,738				3,381				2,145				(332	)			1,527
Professional fees			333				276				275				247				374				57				(41	)
Occupancy and equipment			328				327				294				282				243				1				85
Data processing			794				788				625				533				570				6				224
Regulatory assessment			161				126				202				198				204				35				(43	)
Losses on sale and write-downs of other real estate owned			54				-				-				-				-				54				54
Other			1,401				1,083				1,047				985				846				318				555
Total noninterest expenses			6,743				6,604				6,181				5,626				4,382				139				2,361
Net earnings before income taxes			6,457				5,663				4,855				5,196				5,308				794				1,149
Income taxes			1,604				1,340				1,253				1,326				1,359				264				245
Net earnings		$	4,853			$	4,323			$	3,602			$	3,870			$	3,949			$	530			$	904
Net earnings per share - Basic		$	0.42			$	0.37			$	0.31			$	0.33			$	0.38			$	0.05			$	0.04
Net earnings per share - Diluted		$	0.21			$	0.18			$	0.15			$	0.17			$	0.18			$	0.02			$	0.03

OptimumBank Holdings, Inc.
Consolidated Statements of Earnings - Year-to-Date (Unaudited)
(Dollars in thousands, except per share amounts)

		Twelve Months Ended
		December 31,
		2025				2024				Change
Interest income
Loans		$	57,146			$	52,051			$	5,095
Debt securities			635				652				(17	)
Other			6,573				6,926				(353	)
Total interest income			64,354				59,629				4,725
Interest expense
Deposits			21,434				22,963				(1,529	)
Borrowings			333				1,976				(1,643	)
Total interest expense			21,767				24,939				(3,172	)
Net interest income			42,587				34,690				7,897
Credit loss expense			2,036				2,222				(186	)
Net interest income after credit loss expense			40,551				32,468				8,083
Noninterest income
Service charges and fees			4,657				3,780				877
Other			2,117				843				1,274
Total noninterest income			6,774				4,623				2,151
Noninterest expenses
Salaries and employee benefits			14,795				11,103				3,692
Professional fees			1,131				1,073				58
Occupancy and equipment			1,231				884				347
Data processing			2,740				2,273				467
Regulatory assessment			687				799				(112	)
Losses on sale and write-downs of other real estate owned			54				-				54
Other			4,516				3,328				1,188
Total noninterest expenses			25,154				19,460				5,694
Net earnings before income taxes			22,171				17,631				4,540
Income taxes			5,523				4,507				1,016
Net earnings		$	16,648			$	13,124			$	3,524
Net earnings per share - Basic		$	1.42			$	1.39			$	0.04
Net earnings per share - Diluted		$	0.71			$	0.63			$	0.08

OptimumBank Holdings, Inc.
Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (QTD) (Unaudited)
(Dollars in thousands, except average yields/rates)

		4Q25												3Q25												4Q24
						Interest				Average								Interest				Average								Interest				Average
		Average				and				Yield/				Average				and				Yield/				Average				and				Yield/
		Balance				Dividends				Rate(1)				Balance				Dividends				Rate(1)				Balance				Dividends				Rate(1)
Interest-earning assets
Loans		$	876,581			$	15,437				7.04	%		$	800,336			$	14,082				7.04	%		$	785,007			$	13,679				6.97	%
Securities			24,192				164				2.71	%			22,695				153				2.70	%			23,912				154				2.58	%
Other interest-earning assets (2)			180,474				1,837				4.07	%			188,109				2,086				4.44	%			145,392				1,809				4.98	%
Total interest-earning assets/interest income			1,081,247				17,438				6.45	%			1,011,140				16,321				6.46	%			954,311				15,642				6.56	%
Cash and due from banks			8,285												9,557												13,711
Premises and equipment			2,444												2,414												2,033
Other			4,972												5,209												7,690
Total assets		$	1,096,948											$	1,028,320											$	977,745
Interest-bearing liabilities
Savings, NOW and money-market deposits		$	303,184			$	1,713				2.26	%		$	286,156			$	1,800				2.52	%		$	318,945			$	2,297				2.88	%
Time deposits			363,225				3,848				4.24	%			320,800				3,473				4.33	%			290,748				3,707				5.10	%
Borrowings (3)			543				5				3.97	%							-				4.32	%			40,111				402				4.01	%
Total interest-bearing liabilities/interest expense			666,952				5,567				3.34	%			606,956				5,273				3.48	%			649,804				6,406				3.94	%
Noninterest-bearing demand deposits			301,812												298,670												222,258
Other liabilities			8,606												8,687												8,114
Stockholders’ equity			119,578												114,007												97,569
Total liabilities and stockholders’ equity		$	1,096,948											$	1,028,320											$	977,745
Net interest income						$	11,871											$	11,048											$	9,236
Interest rate spread (4)											3.11	%											2.98	%											2.61	%
Net interest margin (5)											4.39	%											4.37	%											3.87	%
Ratio of average interest-earning assets to average interest-bearing liabilities			1.62												1.67												1.47

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

OptimumBank Holdings, Inc.
Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (YTD) (Unaudited)
(Dollars in thousands, except average yields/rates)

		Year Ended December 31,
		2025												2024
						Interest				Average								Interest				Average
		Average				and				Yield/				Average				and				Yield/
		Balance				Dividends				Rate(1)				Balance				Dividends				Rate(1)
Interest-earning assets
Loans		$	819,233			$	57,146				6.98	%		$	753,904				52,051				6.90	%
Securities			23,137				635				2.74	%			23,903				652				2.73	%
Other interest-earning assets (2)			152,496				6,573				4.31	%			127,229				6,926				5.44	%
Total interest-earning assets/interest income			994,866				64,354				6.47	%			905,036				59,629				6.60	%
Cash and due from banks			11,478												13,810
Premises and equipment			2,334												1,798
Other			4,529												6,804
Total assets		$	1,013,207											$	927,448
Interest-bearing liabilities
Savings, NOW and money-market deposits		$	286,701			$	7,006				2.44	%		$	322,507				9,910				3.07	%
Time deposits			331,563				14,428				4.35	%			248,676				13,053				5.25	%
Borrowings (3)			8,747				333				3.81	%			47,312				1,976				4.18	%
Total interest-bearing liabilities/interest expense			627,011				21,767				3.47	%			618,495				24,939				4.03	%
Noninterest-bearing demand deposits			265,551												216,643
Other liabilities			8,368												6,438
Stockholders’ equity			112,277												85,872
Total liabilities and stockholders’ equity		$	1,013,207											$	927,448
Net interest income						$	42,587											$	34,690
Interest rate spread (4)											3.00	%											2.57	%
Net interest margin (5)											4.28	%											3.83	%
Ratio of average interest-earning assets to average interest-bearing liabilities			1.59												1.46

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

OptimumBank Holdings, Inc.
Segments of Loans Analysis (Unaudited)
(Dollars in thousands)

																						December 31, 2025 change vs
		December 31,				September 30,				June 30,				March 31,				December 31,				September 30,				December 31,
		2025				2025				2025				2025				2024				2025				2024
Residential real estate		$	74,018			$	66,723			$	66,602			$	71,638			$	74,064			$	7,295			$	(46	)
Multi-family real estate			65,693				67,435				68,321				63,615				64,001				(1,742	)			1,692
Commercial real estate			666,508				524,865				478,224				482,113				485,671				141,643				180,837
Land and construction			36,212				43,364				61,126				80,338				77,295				(7,152	)			(41,083	)
Commercial			48,196				45,604				50,351				50,585				52,810				2,592				(4,614	)
Consumer			68,166				65,731				59,940				51,955				50,399				2,435				17,767
Total loans			958,793				813,722				784,564				800,244				804,240				145,071				154,553
Deduct:
Net deferred loan fees and costs			(1,227	)			(892	)			(678	)			(742	)			(595	)			(335	)			(632	)
Allowance for credit losses			(10,273	)			(10,018	)			(9,338	)			(8,270	)			(8,660	)			(255	)			(1,613	)
Loans, net		$	947,293			$	802,812			$	774,548			$	791,232			$	794,985			$	144,481			$	152,308

OptimumBank Holdings, Inc.
Allowance for Credit Losses Analysis (Unaudited)
(Dollars in thousands)

																						December 31, 2025 change vs
		December 31,				September 30,				June 30,				March 31,				December 31,				September 30,				December 31,
		2025				2025				2025				2025				2024				2025				2024
Beginning balance		$	10,018			$	9,338			$	8,270			$	8,660			$	8,337			$	680			$	1,681
Credit loss expense (reversal) - funded			389				639				1,043				(144	)			569				(250	)			(180	)
Charge-offs			(201	)			(129	)			(72	)			(325	)			(336	)			(72	)			135
Recoveries			67				170				97				79				90				(103	)			(23	)
Ending balance		$	10,273			$	10,018			$	9,338			$	8,270			$	8,660			$	255			$	1,613

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 (Unaudited)

(Dollars in thousands)			4Q25				3Q25				2Q25				1Q25				4Q24
Net Earnings (GAAP)		$	4,853			$	4,323			$	3,602			$	3,870			$	3,949
Plus: Income Tax Expense			1,604				1,340				1,253				1,326				1,359
Plus: Credit Loss Expense (Reversal)			398				763				1,040				(165	)			613
Pre-tax, Pre-provision earnings (Non-GAAP)			6,855				6,426				5,895				5,031				5,921

Tangible Book Value Per Common Share and Per Fully Diluted Share (Unaudited)

(Dollars in thousands, except per share amounts)			4Q25				3Q25				2Q25				1Q25				4Q24
Total Stockholders’ (GAAP) and Tangible Common Equity		$	121,897			$	116,888			$	111,348			$	108,003			$	103,184
Common Shares Outstanding			11,534				11,884				11,751				11,751				11,636
Effect of conversion of series B preferred shares if converted			11,114				11,114				11,114				11,114				11,114
Effect of conversion of series C preferred shares if converted			876				526				526				526				526
Total Diluted Shares			23,524				23,524				23,391				23,391				23,276
Tangible Book Value per Common Share		$	10.57			$	9.84			$	9.48			$	9.19			$	8.87
Tangible Book Value per Share - Diluted		$	5.18			$	4.97			$	4.76			$	4.62			$	4.43

FAQ

What were OptimumBank (OPHC) 4Q25 earnings and EPS on February 2, 2026?

OptimumBank reported 4Q25 net earnings of $4.85 million, or $0.42 basic and $0.21 diluted EPS. According to the company, 4Q25 results improved sequentially from 3Q25 driven by higher net interest income and loan growth.

How much did OptimumBank (OPHC) loans and deposits change in 4Q25?

Gross loans rose $145.07 million in 4Q25 to $958.79 million, while total deposits decreased $27.74 million sequentially to $931.75 million. According to the company, deposit decline reflected year-end business seasonality.

What drove OptimumBank's (OPHC) net interest margin expansion in 4Q25?

Net interest margin expanded to 4.39% in 4Q25, up two basis points sequentially and 60 bps YoY. According to the company, the increase was driven by higher loan yields and lower funding costs on interest-bearing liabilities.

What is OptimumBank's (OPHC) capital and credit position at year-end 2025?

At December 31, 2025, Tier 1 Leverage Ratio was 11.39% and allowance for credit losses was $10.27 million (1.07% of loans). According to the company, capital levels remain strong and credit quality improved with lower credit loss expense.

What strategic initiatives did OptimumBank (OPHC) announce for 2026?

The company formed a new subsidiary to offer bridge-to-HUD financing and FHA/HUD insured origination, expected to roll out in 2026. According to the company, the platform targets multifamily, healthcare, and senior housing sectors leveraging existing relationships.