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

Rhea-AI Summary

OptimumBank Holdings (NYSE: OPHC) reported 3Q25 net earnings of $4.32M (diluted EPS $0.18), up from $3.60M in 2Q25 and $3.30M in 3Q24. For the nine months ended Sep 30, 2025, net earnings were $11.80M versus $9.17M a year earlier, driven by a $5.26M improvement in net interest income and a $1.49M rise in noninterest income.

Key balance sheet moves: total deposits rose to $959.49M (+$80.62M QoQ, +18.97% YoY), total assets to $1.083B, and gross loans to $813.72M (+$29.16M QoQ). Net interest margin expanded to 4.37%, ROAA was 1.68%, allowance for credit losses was $10.02M (1.23% of loans), and Tier 1 capital to assets was 11.71%.

Positive

• Net earnings +20.0% QoQ ($4.32M vs $3.60M)
• Total deposits +9.17% QoQ ($80.62M increase to $959.49M)
• Net interest income +7.9% QoQ ($11.05M vs $10.24M; +$0.81M)
• Net interest margin expanded to 4.37% (+41 bps YoY)
• Tier 1 capital to assets 11.71%, well above minimums

Negative

• Noninterest expenses +24.8% YoY ($6.60M vs $5.29M)
• Allowance for credit losses 1.23% of loans may pressure reserves if loan mix shifts

Insights

Bank financial analyst

OptimumBank shows sequential profit and deposit growth with improving margins and solid capital.

Net earnings rose to $4.32 million in 3Q25, with diluted EPS of $0.18, driven by higher net interest income of $11.05 million and a net interest margin of 4.37%. Core funding expanded strongly: total deposits reached $959.49 million, up 9.17% sequentially and 18.97% year-over-year, while gross loans grew to $813.72 million. The company reported an ROAA of 1.68% and maintained a Tier 1 capital ratio to total assets of 11.71%.

Key dependencies and risks are explicit in the data: noninterest expenses increased to $6.60 million, pressuring the efficiency ratio which remains at 50.68%. Credit metrics look contained with an allowance of $10.02 million (1.23% of loans), modest gross charge-offs of $129,000, and net recoveries of $41,000, but the sequential decline in credit loss expense signals sensitivity to the specific reserve on nonaccrual loans. Monitor deposit repricing, loan mix shifts from land and construction to permanent loans, and the impact of higher staffing and infrastructure costs on quarterly operating leverage through the remainder of 2025.

Fort Lauderdale, FL, Nov. 12, 2025 (GLOBE NEWSWIRE) -- 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 $4.32 million, or $0.37 per basic share, and $0.18 per diluted share, for the third quarter of 2025. This compares to net earnings of $3.60 million, or $0.31 per basic share, and $0.15 per diluted share, for the second quarter of 2025, and $3.30 million net earnings, or $0.34 per basic share, and $0.15 per diluted share, for the comparable quarter last year. For the nine-month period ended September 30, 2025, net earnings was $11.80 million, or $1.00 per basic share, and $0.50 per diluted share, compared to net earnings of $9.17 million, or $1.02 per basic share, and $0.45 per diluted share, for the nine-month period ended September 30, 2024. The increase of $2.63 million in earnings for the nine-month period ended September 30, 2025, compared to the same period in 2024, was primarily driven by a $5.26 million improvement in net interest income and $1.49 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 third quarter of 2025. Total deposits grew by $80.62 million from June 30, 2025, reaching $959.49 million at September 30, 2025, up 9.17% from the prior quarter, or 36.68% annualized. This also represents a growth of $152.98 million in total deposits since the third quarter of 2024 or 18.97%. The gross loan portfolio increased by $29.16 million or 3.72% during the third quarter of 2025 to $813.72 million, or 14.88% annualized.

Highlights for the Third Quarter of 2025

	●	Net earnings of $4.32 million, or $0.37 per basic share, and $0.18 diluted earnings per share (“diluted EPS”).
	●	Return on Average Assets (ROAA) was 1.68% for the third quarter of 2025, compared to 1.48% for the second quarter of 2025.
	●	Net interest margin was 4.37%, reflecting a 5basis point increase from 4.32% in the second quarter of 2025.
	●	Total assets grew by $83.92 million to $1.08 billion from June 30, 2025, an annualized increase of approximately 33.60%.
	●	Total deposits grew by $80.62 million to $959.49 million from June 30, 2025, representing an annualized increase of approximately 36.69%.
	●	Gross loans increased by $29.16 million during the quarter.
	●	Total stockholders’ equity increased by $5.54 million to $116.89 million as of September 30, 2025, up from $111.35 million as of June 30, 2025, reflecting continued earnings retention.

“As we celebrate OptimumBank’s 25th anniversary, we are proud to report another quarter of strong performance and steady growth,” said Moishe Gubin, Chairman of the Board. “Our momentum continues to build as we expand our customer base, strengthen our core earnings, and deliver meaningful value to our shareholders. Despite ongoing industry headwinds, our team’s disciplined approach to deposit pricing, targeted lending, and operating efficiency continues to drive results. With a growing foundation of loyal customers and a well-capitalized balance sheet, we are entering our next chapter with confidence, agility, and excitement for the opportunities ahead.”

Net interest income increased to $11.05 million, up by $0.81 million from the second quarter of 2025 and $2.09 million from the third 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 3.48%, down from 3.49% in the second quarter, while interest-earning asset yields expanded to 6.46%. The Company’s net interest margin rose to 4.37%, a reflection of disciplined deposit pricing strategy and balance sheet optimization.

Noninterest income grew to $1.98 million, a quarterly increase of $0.15 million, driven by increases in service charges and fee-based revenue, gains on sales of government guaranteed loans, and loan prepayment fees. Noninterest expenses increased to $6.60 million, primarily due to higher staffing and infrastructure investments supporting long-term scalability and data processing. The Company maintained an efficiency ratio of 50.68%, consistent with prudent cost management amid balance sheet expansion.

Credit loss expense decreased to $0.76 million, due to the decrease in the specific reserve booked on nonaccrual loans. Gross charge-offs remained modest at $129,000, while recoveries totaled $170,000, resulting in net recoveries of $41,000, reflecting a well-managed loan portfolio. The allowance for credit losses stood at $10.02 million as of September 30, 2025, or 1.23% of total loans.

Loan portfolio dynamics were mixed in the third quarter of 2025. Gross loans increased by $29.16 million. Commercial real estate and consumer segments continued to expand, growing by $46.64 million and $5.79 million, respectively. These gains were offset by a $17.76 million decline in land and construction loans and a $4.75 million decline in commercial loans, consistent with the stabilization of and migration of construction to permanent loans status and other evolving market conditions.

On the funding side, total deposits increased by $80.62 million to $959.49 million from the second quarter of 2025, while core noninterest-bearing demand deposits increased by $54.16 million to $313.97 million. The Company had no borrowings during the third quarter.

Capital levels remain strong, with a Tier 1 Capital to Total Assets of 11.71%, 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																				3Q25 change vs
(Dollars in thousands, except ratios and per share amounts)		3Q25				2Q25				1Q25				4Q24				3Q24				2Q25				3Q24
Selected Balance Sheet Data
Total assets		$	1,083,043			$	999,127			$	977,468			$	932,933			$	945,192			$	83,916			$	137,851
Total gross loans			813,722				784,564				800,244				804,240				778,058				29,158				35,664
Total deposits			959,487				878,865				852,934				772,195				806,506				80,622				152,981
Earnings Highlights
Net earnings		$	4,323			$	3,602			$	3,870			$	3,949			$	3,302			$	721			$	1,021
Diluted earnings per share (EPS)		$	0.18			$	0.15			$	0.17			$	0.18			$	0.15			$	0.03			$	0.03
Net interest income		$	11,048			$	10,242			$	9,426			$	9,235			$	8,962			$	806			$	2,086
Performance Ratios
Net interest margin			4.37	%			4.32	%			4.06	%			4.19	%			3.96	%			0.05	%			0.41	%
Net interest spread			2.98	%			3.08	%			2.87	%			2.90	%			2.61	%			(0.10	)%			0.37	%
Cost of interest-bearing liabilities			3.48	%			3.49	%			3.59	%			4.02	%			4.17	%			(0.01	)%			(0.69	)%
Efficiency ratio			50.68	%			51.18	%			52.79	%			42.53	%			52.45	%			(0.50	)%			(1.77	)%
Net loan-to-deposit ratio			83.67	%			88.13	%			92.77	%			102.95	%			95.34	%			(4.46	)%			(11.67	)%
Return on (annualized)
Average assets (ROAA)			1.68	%			1.48	%			1.62	%			1.62	%			1.42	%			0.20	%			0.26	%
Average equity (ROAE)			15.17	%			13.10	%			14.66	%			16.19	%			14.74	%			2.07	%			0.43	%
Average tangible assets (ROTA)			1.68	%			1.48	%			1.62	%			1.62	%			1.42	%			0.20	%			0.26	%
Pre-tax pre-provision net revenue (PPNR)		$	6,426			$	5,895			$	5,031			$	5,921			$	4,792			$	531			$	1,634
Other Operating Measures
Common shares outstanding			11,883,943				11,751,082				11,751,082				11,636,092				10,006,960				132,861				1,876,983
Non-diluted tangible book value per share		$	9.84			$	9.48			$	9.19			$	8.87			$	9.26			$	0.36			$	0.58
Fully diluted shares outstanding			23,523,473				23,390,612				23,390,612				23,275,622				21,646,490				132,861				1,876,983
Fully diluted tangible book value per share		$	4.97			$	4.76			$	4.62			$	4.43			$	4.28			$	0.21			$	0.69
Tangible common equity to tangible assets			10.79	%			11.14	%			11.05	%			11.06	%			9.81	%			(0.35	)%			0.98	%
Tier 1 Capital to total assets			11.71	%			11.89	%			11.71	%			10.91	%			10.38	%			(0.18	)%			1.33	%

Financial Results

Statement of Earnings

Net earnings was $4.32 million for the third quarter of 2025, compared to net earnings of $3.60 million for the second quarter of 2025, and $3.30 million for the third quarter of 2024. The increase from the second quarter of 2025 was primarily due to an increase in other interest income to $2.09 million, compared to a $1.40 million in the second quarter. Compared to the third quarter of 2024, net earnings increased by approximately $1.02 million.

Total interest income was $16.32 million for the third quarter of 2025, compared to $15.59 million in the second quarter of 2025 and $15.33 million in the third quarter of 2024. The sequential growth was driven by a $64.86 million increase in average other interest earning assets, which include interest-earning deposits with banks. Compared to the third quarter of 2024, the increase was primarily due to a $30.13 million increase in average loan balances and a $77.59 million increase in average other balances, which include interest-earning deposits with banks.

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

		Quarterly Trends																				3Q25 change vs
(Dollars in thousands)		3Q25				2Q25				1Q25				4Q24				3Q24				2Q25				3Q24
Interest income
Loans		$	14,082			$	14,026			$	13,601			$	13,679			$	13,588			$	56			$	494
Debt securities			153				158				160				154				163				(5	)			(10	)
Other			2,086				1,404				1,246				1,809				1,583				682				503
Total interest income		$	16,321			$	15,588			$	15,007			$	15,642			$	15,334			$	733			$	987

Interest expense totaled $5.27 million for the third quarter of 2025, compared to $5.35 million for the second quarter of 2025 and $6.37 million for the third quarter of 2024. Compared to the second quarter of 2025, the decrease in interest expense was primarily attributable to a 1 basis point decrease in the cost of interest-bearing liabilities, from 3.49% to 3.48%, largely driven by the continued decrease in the cost of time deposits due to repricing and the repayment of borrowings. Compared to the third quarter of 2024, the decrease in interest expense was substantial, with a 69 basis points decrease in the cost of interest-bearing liabilities, from 4.17% to 3.48% and a significant reduction in average savings, NOW and money-market deposits and 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 $11.05 million in the third quarter of 2025, up from $10.24 million in the second quarter of 2025 and $8.96 million in the third quarter of 2024. The quarter-over-quarter increase was driven by higher yields on loans, where average yields improved by 5 basis points, as well as growth in the average interest-earning deposits with banks. A modest decrease in funding costs also contributed to the improvement. On a year-over-year basis, the growth in net interest income was primarily attributable to a $30.13 million increase in average loan balances and a $77.59 million increase in average interest-earning deposits with banks balances, further supported by lower funding costs.

Net interest margin expanded to 4.37% for the third quarter of 2025, compared to 4.32% and 3.96% for the second and third quarters of 2025 and 2024, respectively. Compared to the second quarter of 2025, net interest margin increased by 5 basis points, principally driven by improved yields on interest-earning assets (especially on loans up from 6.99% to 7.04%) combined with a modest decrease in interest-bearing liabilities cost (down from 3.49% to 3.48%). Compared to the third quarter of 2024, net interest margin expanded by 41 basis points, primarily attributable to a decrease in the average cost of interest-bearing liabilities.

The cost of interest-bearing liabilities was 3.48% in the third quarter of 2025, down from 3.49% in the second quarter of 2025 and down from 4.17% in the third quarter of 2024. The decrease from the second quarter of 2025 was primarily due to continued repricing in the time deposit portfolio, coupled with a reduction in borrowings outstanding during the quarter. Compared to the same quarter last year, the cost of interest-bearing liabilities decreased substantially by 41 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 was $0.76 million during the third quarter of 2025, compared to an expense of $1.04 million in the second quarter of 2025, and an expense of $0.36 million for the third quarter of 2024. The decrease in credit loss expense from the second quarter was primarily attributable to the decrease in the specific reserve booked on nonaccrual loans. Gross charge-offs remained modest at $129,000, while recoveries totaled $170,000, resulting in net recoveries of $41,000 during the third quarter of 2025. The Company’s allowance for credit losses stood at $10.02 million, or 1.23% of total loans, as of September 30, 2025.

Noninterest income totaled $1.98 million for the third quarter of 2025, up from $1.83 million in the prior quarter and $1.12 million in the third quarter of 2024. The quarter-over-quarter increase of $0.15 million was primarily driven by growth in service charges and fee-based revenue, gains on sales of government guaranteed loans, and loan prepayment fees. Compared to the same quarter last year, the $0.86 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 $6.60 million for the third quarter of 2025, compared to $6.18 million in the second quarter of 2025 and $5.29 million in the third quarter of 2024. The quarter-over-quarter increase of $0.42 million was primarily due to higher salaries and employee benefits and data processing, which increased by $0.26 million to $4.00 million from $3.74 million and by $0.16 million to $0.79 million from $0.63 million, respectively in the prior quarter, reflecting staff growth and seasonal compensation and increased transaction volumes. Compared to the third quarter of 2024, the increase of $1.31 million was driven by the same staffing-related trends, as well as increases in 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																				3Q25 change vs
(Dollars in thousands)		3Q25				2Q25				1Q25				4Q24				3Q24				2Q25				3Q24
Noninterest expenses
Salaries and employee benefits		$	4,004			$	3,738			$	3,381			$	2,145			$	3,078			$	266			$	926
Professional fees			276				275				247				374				266				1				10
Occupancy and equipment			327				294				282				243				234				33				93
Data processing			788				625				533				570				574				163				214
Regulatory assessment			126				202				198				204				241				(76	)			(115	)
Other			1,083				1,047				985				846				892				36				191
Total noninterest expenses		$	6,604			$	6,181			$	5,626			$	4,382			$	5,285			$	423			$	1,319

Income tax expense was $1.34 million for the third quarter of 2025, modestly higher from $1.25 million in the second quarter of 2025 and $1.13 million in the third quarter of 2024. The effective tax rate for the quarter was 23.7%, compared to 25.8% in the prior quarter and 25.5% from the prior year comparative quarter.

Balance Sheet

Total assets were $1.08 billion as of September 30, 2025, increasing from $999.13 million at June 30, 2025, and up from $945.19 million at September 30, 2024. The quarter-over-quarter growth of $83.92 million was primarily attributable to a $53.33 million increase in interest-bearing deposits with banks and a $28.26 million increase in loans.

Cash and cash equivalents at September 30, 2025, was $235.09 million, up significantly from $181.75 million at June 30, 2025, and up from $131.60 million at September 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 September 30, 2025, were $23.17 million, compared to $22.64 million at June 30, 2025, and $24.80 million at September 30, 2024. Compared to June 30, 2025, investment securities increased by $0.53 million, and compared to September 30, 2024, decreased by $1.62 million. No sales of debt securities were reported during these periods.

Total gross loans at September 30, 2025, were $813.72 million, an increase from $784.56 million at June 30, 2025, and up from $778.06 million at September 30, 2024. Gross loans increased during the quarter reflecting growth in commercial real estate and consumer loans, which is offset by payoff of several segments of loans. Compared to September 30, 2024, the gross loan portfolio increased by $35.66 million, reflecting growth over the past year.

The allowance for credit losses (“ACL”) was $10.02 million as of September 30, 2025, representing 1.23% of total loans, increasing from 1.19% at June 30, 2025, and up from $9.34 million and $8.34 million at June 30, 2025, and September 30, 2024, respectively. The quarter-over-quarter increase of $0.68 million was primarily driven by the growth in the loan portfolio. The increase was further supported by net recoveries of $41,000, as gross charge-offs remained modest at $129,000 and recoveries totaled $170,000. 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:

																						September 30, 2025 change vs
(Dollars in thousands)		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2025				September 30, 2024
Beginning balance		$	9,338			$	8,270			$	8,660			$	8,337			$	8,208			$	1,068			$	1,130
Credit loss expense (reversal) - funded			639				1,043				(144	)			569				409				(404	)			230
Charge-offs			(129	)			(72	)			(325	)			(336	)			(366	)			(57	)			237
Recoveries			170				97				79				90				86				73				84
Ending balance		$	10,018			$	9,338			$	8,270			$	8,660			$	8,337			$	680			$	1,681

Nonaccrual loans totaled $2.98 million at September 30, 2025, compared to $3.22 million at June 30, 2025, and $2.18 million at September 30, 2024. The decrease from the prior quarter was primarily due to the transfer of a nonaccrual consumer loan to other assets during the quarter. There were no loans 90 days or more past due and still accruing interest as of September 30, 2025. Additionally, the Company did not report any modified loans to borrowers experiencing financial difficulty during the third quarter of 2025.

Nonperforming assets (NPA) reflected strong asset quality at September 30, 2025. Nonaccrual loans decreased to $2.98 million from $7.58 million at December 31, 2024. The Company reported one real estate owned (REO) property totaling $0.6 million that was transferred to other assets related to a previously reported nonaccrual consumer loan.

Total deposits at September 30, 2025, were $959.49 million, an increase from $878.87 million at June 30, 2025, and from $806.51 million at September 30, 2024. The increase from June 30, 2025, was attributable to increases in noninterest-bearing demand deposits and savings, NOW and money-market deposits, and time deposits. Noninterest-bearing demand deposits notably rose from $259.82 million to $313.97 million. Noninterest-bearing deposits accounted for 32.72% of total deposits at September 30, 2025, compared to 29.56% at June 30, 2025, and 25.09% at September 30, 2024. The Company continues to maintain a diverse and stable funding base.

Accumulated other comprehensive loss (AOCL) was $(4.75) million at September 30, 2025. This compares to $(5.41) million at June 30, 2025, and $(4.48) million at September 30, 2024. The unrealized loss in AOCL decreased by $0.66 million quarter-over-quarter, primarily due to the decline in long-term interest rates impacting the fair value of available-for-sale securities, as the Company recorded an unrealized gain of $0.90 million on these securities during the period. Year-over-year, AOCL slightly expanded by $0.27 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 $116.89 million as of September 30, 2025, compared to $111.35 million as of June 30, 2025, and $92.70 million as of September 30, 2024. The quarter increase was principally attributable to third quarter net earnings of $4.32 million, a decrease in accumulated other comprehensive loss and an increase in additional paid-in capital.

Tangible book value per share at September 30, 2025, was $9.84, up from $9.48 at June 30, 2025, and $9.26 at September 30, 2024. This non-diluted measure is based on common shares outstanding, which were 11,883,943 at September 30, 2025 (up from 11,751,082 at June 30, 2025, and up from 10,006,960 at September 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 $4.97 at September 30, 2025, up from $4.76 at June 30, 2025, or 17.64% annualized and $4.28 at September 30, 2024, or 16.12%. This is based on fully diluted shares outstanding of 23,523,473 at September 30, 2025 (up from 23,390,612 at June 30, 2025, and up from 21,646,490 at September 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.

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
(Dollars in thousands)

																						September 30, 2025 change vs
		September 30,				June 30,				March 31,				December 31,				September 30,				June 30,				September 30,
		2025				2025				2025				2024				2024				2025				2024
Assets
Cash and due from banks		$	9,271			$	8,833			$	13,542			$	13,982			$	15,357			$	438			$	(6,086	)
Interest-bearing deposits with banks			225,815				172,921				129,914				79,648				116,242				52,894				109,573
Total cash and cash equivalents			235,086				181,754				143,456				93,630				131,599				53,332				103,487
Debt securities available for sale			22,926				22,378				23,043				22,773				24,495				548				(1,569	)
Debt securities held-to-maturity			246				260				269				281				300				(14	)			(54	)
Loans, net of allowance for credit losses			802,812				774,548				791,232				794,985				768,914				28,264				33,898
Federal Home Loan Bank stock			658				658				1,128				2,929				2,454				-				(1,796	)
Premises and equipment, net			2,308				2,426				2,249				2,062				1,938				(118	)			370
Right-of-use lease assets			2,725				2,552				2,647				2,679				1,950				173				775
Accrued interest receivable			3,171				3,138				3,287				3,348				3,147				33				24
Deferred tax asset			3,238				3,135				2,777				3,001				2,788				103				450
Other assets			9,873				8,278				7,380				7,245				7,607				1,595				2,266
Total assets		$	1,083,043			$	999,127			$	977,468			$	932,933			$	945,192			$	83,916			$	137,851
Liabilities and Stockholders’ Equity
Liabilities
Noninterest-bearing demand deposits		$	313,973			$	259,816			$	235,779			$	211,900			$	202,373			$	54,157			$	111,600
Savings, NOW and money-market deposits			309,087				300,907				289,768				278,355				318,402				8,180				(9,315	)
Time deposits			336,427				318,142				327,387				281,940				285,731				18,285				50,696
Total deposits			959,487				878,865				852,934				772,195				806,506				80,622				152,981
Federal Home Loan Bank advances			-				-				10,000				50,000				40,000				-				(40,000	)
Operating lease liabilities			2,846				2,661				2,746				2,774				2,056				185				790
Other liabilities			3,822				6,253				3,785				4,780				3,935				(2,431	)			(113	)
Total liabilities			966,155				887,779				869,465				829,749				852,497				78,376				113,658
Stockholders’ equity
Preferred stock:
Series B Convertible Preferred			-				-				-				-				-				-				-
Series C Convertible Preferred			-				-				-				-				-				-				-
Common stock			119				118				118				116				99				1				20
Additional paid-in capital			112,574				112,010				112,015				111,485				103,878				564				8,696
Retained earnings (accumulated deficit)			8,948				4,625				1,023				(2,847	)			(6,798	)			4,323				15,746
Accumulated other comprehensive loss			(4,753	)			(5,405	)			(5,153	)			(5,570	)			(4,484	)			652				(269	)
Total stockholders’ equity			116,888				111,348				108,003				103,184				92,695				5,540				24,193
Total liabilities and stockholders’ equity		$	1,083,043			$	999,127			$	977,468			$	932,933			$	945,192			$	83,916			$	137,851

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

		Quarterly Trends																				3Q25 change vs
		3Q25				2Q25				1Q25				4Q24				3Q24				2Q25				3Q24
Interest income
Loans		$	14,082			$	14,026			$	13,601			$	13,679			$	13,588			$	56			$	494
Debt securities			153				158				160				154				163				(5	)			(10	)
Other			2,086				1,404				1,246				1,809				1,583				682				503
Total interest income			16,321				15,588				15,007				15,642				15,334				733				987
Interest expense
Deposits			5,273				5,322				5,278				6,005				5,962				(49	)			(689	)
Borrowings			-				24				303				402				410				(24	)			(410	)
Total interest expense			5,273				5,346				5,581				6,407				6,372				(73	)			(1,099	)
Net interest income			11,048				10,242				9,426				9,235				8,962				806				2,086
Credit loss expense (reversal)			763				1,040				(165	)			613				357				(277	)			406
Net interest income after credit loss expense (reversal)			10,285				9,202				9,591				8,622				8,605				529				2,492
Noninterest income
Service charges and fees			1,252				1,099				1,038				958				990				153				262
Other			730				735				193				110				125				(5	)			605
Total noninterest income			1,982				1,834				1,231				1,068				1,115				148				867
Noninterest expenses
Salaries and employee benefits			4,004				3,738				3,381				2,145				3,078				266				926
Professional fees			276				275				247				374				266				1				10
Occupancy and equipment			327				294				282				243				234				33				93
Data processing			788				625				533				570				574				163				214
Regulatory assessment			126				202				198				204				241				(76	)			(115	)
Other			1,083				1,047				985				846				892				36				191
Total noninterest expenses			6,604				6,181				5,626				4,382				5,285				423				1,319
Net earnings before income taxes			5,663				4,855				5,196				5,308				4,435				808				1,228
Income taxes			1,340				1,253				1,326				1,359				1,133				87				207
Net earnings		$	4,323			$	3,602			$	3,870			$	3,949			$	3,302			$	721			$	1,021
Net earnings per share - Basic		$	0.37			$	0.31			$	0.33			$	0.38			$	0.34			$	0.06			$	0.03
Net earnings per share - Diluted		$	0.18			$	0.15			$	0.17			$	0.18			$	0.15			$	0.03			$	0.03

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

		Nine Months Ended
		September 30,
		2025				2024				Change
Interest income
Loans		$	41,709			$	38,372			$	3,337
Debt securities			471				498				(27	)
Other			4,736				5,116				(380	)
Total interest income			46,916				43,986				2,930
Interest expense
Deposits			15,873				16,959				(1,086	)
Borrowings			327				1,574				(1,247	)
Total interest expense			16,200				18,533				(2,333	)
Net interest income			30,716				25,453				5,263
Credit loss expense			1,638				1,610				28
Net interest income after credit loss expense			29,078				23,843				5,235
Noninterest income
Service charges and fees			3,389				2,822				567
Other			1,658				733				925
Total noninterest income			5,047				3,555				1,492
Noninterest expenses
Salaries and employee benefits			11,123				8,958				2,165
Professional fees			798				699				99
Occupancy and equipment			903				642				261
Data processing			1,946				1,702				244
Regulatory assessment			526				593				(67	)
Other			3,115				2,484				631
Total noninterest expenses			18,411				15,078				3,333
Net earnings before income taxes			15,714				12,320				3,394
Income taxes			3,919				3,147				772
Net earnings		$	11,795			$	9,173			$	2,622
Net earnings per share - Basic		$	1.00			$	1.02			$	(0.02	)
Net earnings per share - Diluted		$	0.50			$	0.45			$	0.05

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

		3Q25												2Q25												3Q24
						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		$	800,336			$	14,082				7.04	%		$	803,171			$	14,026				6.99	%		$	770,206			$	13,588				7.06	%
Securities			22,695				153				2.70	%			22,684				158				2.79	%			24,045				163				2.71	%
Other (1)			188,109				2,086				4.44	%			123,254				1,404				4.56	%			110,521				1,583				5.73	%
Total interest-earning assets/interest income			1,011,140				16,321				6.46	%			949,109				15,588				6.57	%			904,772				15,334				6.78	%
Cash and due from banks			9,557												12,833												13,500
Premises and equipment			2,414												2,336												1,957
Other			5,209												8,421												7,025
Total assets		$	1,028,320											$	972,699											$	927,254
Interest-bearing liabilities
Savings, NOW and money-market deposits		$	286,156			$	1,800				2.52	%		$	280,454			$	1,742				2.48	%		$	326,365			$	2,707				3.32	%
Time deposits			320,800				3,473				4.33	%			330,118				3,580				4.34	%			244,374				3,255				5.33	%
Borrowings (2)			-				-				-				2,222				24				4.32	%			40,120				410				4.09	%
Total interest-bearing liabilities/interest expense			606,956				5,273				3.48	%			612,794				5,346				3.49	%			610,859				6,372				4.17	%
Noninterest-bearing demand deposits			298,670												241,457												220,564
Other liabilities			8,687												8,502												6,217
Stockholders’ equity			114,007												109,946												89,614
Total liabilities and stockholders’ equity		$	1,028,320											$	972,699											$	927,254
Net interest income						$	11,048											$	10,242											$	8,962
Interest-rate spread (3)											2.98	%											3.08	%											2.61	%
Net interest margin (4)											4.37	%											4.32	%											3.96	%
Ratio of average interest-earning assets to average interest-bearing liabilities			1.67												1.55												1.48

(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)

		Nine Months Ended September 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		$	800,117			$	41,709				6.95	%		$	743,537			$	38,372				6.88	%
Securities			22,785				471				2.76	%			23,900				498				2.78	%
Other (1)			143,171				4,736				4.41	%			121,174				5,116				5.63	%
Total interest-earning assets/interest income			966,073				46,916				6.48	%			888,611				43,986				6.60	%
Cash and due from banks			12,078												13,844
Premises and equipment			2,297												1,720
Other			4,383												6,523
Total assets		$	984,831											$	910,698
Interest-bearing liabilities
Savings, NOW and money-market deposits		$	281,207			$	5,293				2.51	%		$	323,694			$	7,613				3.14	%
Time deposits			321,011				10,580				4.39	%			234,652				9,346				5.31	%
Borrowings (2)			11,482				327				3.80	%			49,712				1,574				4.22	%
Total interest-bearing liabilities/interest expense			613,700				16,200				3.52	%			608,058				18,533				4.06	%
Noninterest-bearing demand deposits			253,000												214,773
Other liabilities			8,284												5,894
Stockholders’ equity			109,847												81,973
Total liabilities and stockholders’ equity		$	984,831											$	910,698
Net interest income						$	30,716											$	25,453
Interest-rate spread (3)											2.96	%											2.54	%
Net interest margin (4)											4.24	%											3.82	%
Ratio of average interest-earning assets to average interest-bearing liabilities			1.57												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.
Segments of Loans Analysis
(Dollars in thousands)

																						September 30, 2025 change vs
		September 30,				June 30,				March 31,				December 31,				September 30,				June 30,				September 30,
		2025				2025				2025				2024				2024				2025				2025
Residential real estate		$	66,723			$	66,602			$	71,638			$	74,064			$	75,877			$	121			$	(9,154	)
Multi-family real estate			67,435				68,321				63,615				64,001				62,280				(886	)			5,155
Commercial real estate			524,865				478,224				482,113				485,671				479,038				46,641				45,827
Land and construction			43,364				61,126				80,338				77,295				72,729				(17,762	)			(29,365	)
Commercial			45,604				50,351				50,585				52,810				39,957				(4,747	)			5,647
Consumer			65,731				59,940				51,955				50,399				48,177				5,791				17,554
Total loans			813,722				784,564				800,244				804,240				778,058				29,158				35,664
Deduct:
Net deferred loan fees and costs			(892	)			(678	)			(742	)			(595	)			(807	)			(214	)			(85	)
Allowance for credit losses			(10,018	)			(9,338	)			(8,270	)			(8,660	)			(8,337	)			(680	)			(1,681	)
Loans, net		$	802,812			$	774,548			$	791,232			$	794,985			$	768,914			$	28,264			$	33,898

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

																						September 30, 2025 change vs
		September 30,				June 30,				March 31,				December 31,				September 30,				June 30,				September 30,
		2025				2025				2025				2024				2024				2025				2024
Beginning balance		$	9,338			$	8,270			$	8,660			$	8,337			$	8,208			$	1,068			$	1,130
Credit loss expense (reversal) - funded			639				1,043				(144	)			569				409				(404	)			230
Charge-offs			(129	)			(72	)			(325	)			(336	)			(366	)			(57	)			237
Recoveries			170				97				79				90				86				73				84
Ending balance		$	10,018			$	9,338			$	8,270			$	8,660			$	8,337			$	680			$	1,681

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)		3Q25				2Q25				1Q25				4Q24				3Q24
Net Earnings (GAAP)		$	4,323			$	3,602			$	3,870			$	3,949			$	3,302
Plus: Income Tax Expense			1,340				1,253				1,326				1,359				1,133
Plus: Credit Loss Expense (Reversal)			763				1,040				(165	)			613				357
Pre-tax, Pre-provision earnings (Non-GAAP)		$	6,426			$	5,895			$	5,031			$	5,921			$	4,792

Tangible Book Value Per Common Share and Per Fully Diluted Share

(Dollars in thousands, except per share amounts)		3Q25				2Q25				1Q25				4Q24				3Q24
Total Stockholders’ and Tangible Equity		$	116,888			$	111,348			$	108,003			$	103,184			$	92,695
Common Shares Outstanding			11,884				11,751				11,751				11,636				10,007
Plus: Effect of Conversion of Series C Preferred Shares			526				526				526				526				526
Plus: Effect of Conversion of Series B Preferred Shares			11,114				11,114				11,114				11,114				11,114
Fully Diluted Common Shares			23,524				23,391				23,391				23,276				21,647
Tangible Book Value per Common Share		$	9.84			$	9.48			$	9.19			$	8.87			$	9.26
Tangible Book Value per Share - Fully Diluted		$	4.97			$	4.76			$	4.62			$	4.43			$	4.28

FAQ

What were OptimumBank (OPHC) reported net earnings and diluted EPS for 3Q25?

OptimumBank reported $4.32M net earnings and diluted EPS of $0.18 for 3Q25.

How much did OptimumBank (OPHC) deposits grow in 3Q25 and what is the total?

Total deposits grew by $80.62M QoQ to $959.49M as of September 30, 2025.

What drove OPHC's net interest income improvement in 3Q25?

Net interest income rose to $11.05M, driven by higher loan yields, increased average interest-earning deposits, and marginally lower funding costs.

What was OptimumBank's net interest margin and ROAA in 3Q25?

Net interest margin was 4.37% and ROAA was 1.68% for 3Q25.

Did OptimumBank (OPHC) report any material credit deterioration in 3Q25?

Credit loss expense was $0.76M with net recoveries of $0.04M; allowance for credit losses was $10.02M (1.23% of loans).

How did noninterest expenses affect OPHC's 3Q25 results?

Noninterest expenses increased to $6.60M, up notably year-over-year due to higher staffing and data processing costs.

Is OptimumBank (OPHC) well capitalized after 3Q25 results?

Yes; Tier 1 capital to total assets was reported at 11.71% as of September 30, 2025.