OptimumBank Holdings, Inc. Financial Performance for the Third Quarter of 2026

Rhea-AI Summary

OptimumBank Holdings (OPHC) reported third-quarter 2026 net income of $7.2 million, exceeding both the previous quarter and the year-earlier period. Diluted earnings per share rose to $0.30 from $0.28 in the second quarter and $0.18 a year earlier. Nine-month net income reached $18.5 million versus $11.8 million a year earlier.

Gross loans grew $150.2 million sequentially to $1.37 billion, while deposits increased $128.8 million to $1.34 billion. Net interest margin rose to 4.63% from 4.57%, and the non-GAAP efficiency ratio improved to 45.86% from 48.78%. Noninterest expenses increased $0.6 million to $9.0 million, and credit loss expense was $1.1 million. A $35.0 million subordinated debt offering supported a $31.0 million capital contribution to the Bank. Its Tier 1 leverage ratio reached 12.23%, although the Company's tangible common equity-to-tangible-assets ratio declined to 9.48% from 9.59%.

19 points · 1 major

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1 major · 15 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointSubordinated debt offering raised $35.0 million; $31.0 million was contributed to the Bank. 31% of market cap
• Moderate pointThird-quarter net income increased to $7.2 million from $6.7 million sequentially and $4.3 million a year earlier.
• Moderate pointThird-quarter diluted EPS increased to $0.30 from $0.28 sequentially and $0.18 a year earlier.
• Moderate pointQuarterly net interest income reached $16.8 million, up $2.1 million sequentially and $5.7 million year over year.
• Moderate pointNet interest margin reached 4.63%, versus 4.57% sequentially and 4.37% a year earlier.
• Moderate pointNon-GAAP efficiency ratio improved to 45.86% from 48.78% sequentially and 50.68% a year earlier.
• Moderate pointGross loans increased $150.2 million sequentially to $1.37 billion, with growth across all loan segments.
• Moderate pointTotal deposits grew to $1.34 billion, up $128.8 million sequentially and $383.3 million year over year.
• Moderate pointBank Tier 1 leverage ratio increased to 12.23% from 10.54% in the previous quarter.
• Moderate pointFully diluted tangible book value per share increased to $5.98 from $5.65 sequentially and $4.97 a year earlier.

9 minor points

• Minor pointNine-month net income rose to $18.5 million from $11.8 million in the comparable 2025 period.
• Minor pointNine-month basic/diluted EPS reached $1.05/$0.78, versus $1.00/$0.50 in the comparable 2025 period.
• Minor pointQuarterly noninterest income increased $0.4 million sequentially to $2.8 million, driven by loan and banking-service fees.
• Minor pointOptimumFinance's loan portfolio grew to $26.7 million from $14.2 million in the second quarter.
• Minor pointNoninterest-bearing demand deposits increased 19.5% sequentially to $381.7 million.
• Minor pointTotal assets increased $175.2 million sequentially to $1.58 billion.
• Minor pointStockholders' equity increased $15.0 million sequentially to $149.4 million through retained earnings and equity issuance.
• Minor pointFHLB advances declined $15.0 million sequentially to $10.0 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Management expects expense-control and efficiency benefits to begin over the next several quarters.

Negative

• Major pointSubordinated debt adds $35.0 million due September 1, 2036, with 7.50% fixed interest through September 1, 2031. 31% of market cap
• Moderate pointNine-month noninterest expense increased $7.0 million from the comparable 2025 period.
• Moderate pointVoting common shares increased 1,186,191 sequentially to 13,526,976, diluting existing holders.
• Moderate pointOptimumFinance issued additional notes payable during the quarter to fund asset growth.
• Moderate pointLoan-to-deposit ratio increased to 100.74% from 99.20% sequentially and 83.67% a year earlier.
• Moderate pointTangible common equity-to-tangible-assets ratio declined to 9.48% from 9.59% sequentially and 10.79% a year earlier.

9 minor points

• Minor pointQuarterly noninterest expenses increased $0.6 million sequentially to $9.0 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Subordinated debt interest subsequently resets quarterly to three-month term SOFR plus 340 basis points.
• Minor pointCredit loss expense was $1.1 million for the third quarter, primarily reflecting loan growth.
• Minor pointThird-quarter net charge-offs totaled $11,000, after $40,000 in gross charge-offs and $29,000 in recoveries.
• Minor pointInterest-bearing liability costs rose to 3.49% from 3.30% sequentially and 3.48% a year earlier.
• Minor pointNet interest spread fell sequentially to 3.43% from 3.45%, but exceeded 2.98% a year earlier.
• Minor pointAnnualized return on average assets fell sequentially to 1.95% from 2.04%, but exceeded 1.68% a year earlier.
• Minor pointAnnualized return on average equity fell sequentially to 19.99% from 20.34%, but exceeded 15.17% a year earlier.
• Minor pointGains on government-guaranteed SBA loan sales declined sequentially, partially offsetting other noninterest-income growth.

News Explained

On April 29, 2026, OptimumBank Holdings exchanged all preferred stock for common stock, leaving none outstanding in Q3 and shifting those interests into the common ownership pool. The exchange reduces existing holders’ percentage ownership absent offsetting changes; basic and diluted EPS were both $0.30 for the quarter.

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Details

Market move: OPHC +15.63% vs previous close. 3Q26 earnings report

$8.78 – $10.36 Day Range

$130.85M Mkt Cap at Last Price

On Nov 12, the day this news came out, the latest delayed price for OPHC is 15.63% above the previous close. The latest delayed price is $10.36. Relative volume is above average at 1.5x the stock’s average daily volume.

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Key Figures

Net income: $7.2 million Diluted EPS: $0.30 Nine-month net income: $18.5 million vs. $11.8 million +5 more

Net income

$7.2 million

3Q26

Diluted EPS

$0.30

3Q26; compared with $0.28 in 2Q26 and $0.18 in 3Q25

Nine-month net income

$18.5 million vs. $11.8 million

Nine months ended September 30, 2026, compared with the same period in 2025

Gross loan portfolio

$1.37 billion

Up $150.2 million, or 12.3%, from June 30, 2026

Total deposits

$1.34 billion

Up $128.8 million, or 10.6%, from June 30, 2026

Net interest margin

4.63%

3Q26; up six basis points from 4.57% in 2Q26

Subordinated notes

$35.0 million; 7.50% fixed through September 1, 2031, then three-month term SOFR plus 340 basis points

Issued during 3Q26

Tier 1 Leverage Ratio

12.23%

At September 30, 2026; increased 169 basis points from the prior quarter

Historical Context

1 past event · Latest: Jul 24

1 event

1. Jul 24

   Q2 earnings

   24h Move

   +5.3%

   Q2 net income and diluted EPS rose year over year with loan and deposit growth.

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

Key Terms

at-the-market, non-gaap, secured overnight financing rate (sofr), tier 1 leverage ratio

4 terms

at-the-market financial

"equity raised through the Company’s at-the-market (“ATM”) program"

"At-the-market" is a method for companies to sell new shares of stock directly into the open market over time, rather than all at once. It allows companies to raise money gradually, similar to selling slices of a pie instead of the entire pie at once, which can help manage the sale's impact on the stock price. This approach gives investors a steady supply of shares while providing companies with flexible funding options.

non-gaap financial

"efficiency ratio (non-GAAP measure)"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

secured overnight financing rate (sofr) financial

"then-current three-month term secured overnight financing rate (SOFR)"

A secured overnight financing rate (SOFR) is the interest rate on very short, one‑day loans that are backed by high‑quality collateral (like government bonds), so lenders face less risk. Investors care because SOFR is a widely used benchmark that sets the cost of borrowing and the pricing of loans, bonds and derivatives; think of it as a trusted yardstick for short‑term interest costs that influences returns and valuations across markets.

tier 1 leverage ratio regulatory

"Tier 1 Leverage Ratio of 12.23%"

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, Nov. 12, 2026 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (NYSE American: OPHC) (the “Company”) is a financial holding company and owns 100% of OptimumBank (the “Bank”), a Florida-chartered commercial bank, OptimumHUD Loans, LLC (d/b/a OptimumFunding, LLC), a wholly owned non-bank Bridge and HUD-lender and OptimumFinance, LLC, a non-bank, wholly owned financing subsidiary.

The Company is pleased to announce net income of $7.2 million, or $0.30 per basic and diluted share, for the third quarter of 2026. As a result of the Company’s April 29, 2026 exchange of all outstanding preferred stock for common stock, the Company had no preferred stock outstanding during the third quarter of 2026. Accordingly, basic and diluted earnings per share were the same for the quarter. Because diluted earnings per share for prior periods reflected the potential common shares underlying the Company’s then-outstanding preferred stock, management believes comparison of the current quarter’s $0.30 basic and diluted earnings per share to diluted earnings per share in prior periods provides a more meaningful view of per-share earnings performance across periods.

Net income for the third quarter of 2026 increased to $7.2 million from $6.7 million in the second quarter of 2026 and $4.3 million in the third quarter of 2025. Diluted earnings per share increased to $0.30 from $0.28 in the second quarter of 2026 and $0.18 in the third quarter of 2025, representing increases of approximately 7% and 67%, respectively.

For the nine months ended September 30, 2026, net income was $18.5 million, or $1.05 per basic share and $0.78 per diluted share, compared to net income of $11.8 million, or $1.00 per basic share and $0.50 per diluted share, for the nine months ended September 30, 2025. The $6.7 million increase in net income for the nine months ended September 30, 2026, compared to the same period in 2025, was primarily driven by a $14.0 million increase in net interest income and a $2.1 million increase in noninterest income, partially offset by a $7.0 million increase in noninterest expense and the corresponding increase in income tax expense.

The Company will host a webcast call to discuss the results of the third quarter of 2026 on November 13, 2026, at 10:00am ET. Those interested in viewing the Company’s presentation are encouraged to register for the live Webcast, at the following link: https://events.q4inc.com/attendee/603182555/guest. Company management will also be available to respond to questions at the conclusion of the presentation.

The Company continued with strong growth throughout the third quarter of 2026. The gross loan portfolio increased by $150.2 million, or 12.3%, from June 30, 2026 to $1.37 billion at September 30, 2026. Total deposits increased by $128.8 million from June 30, 2026, totaling $1.34 billion at September 30, 2026, or 10.6% from the prior quarter. This also represents growth of $383.3 million in total deposits since September 30, 2025, or an increase of 40.0%.

Highlights for the Third Quarter of 2026

	●	Net income of $7.2 million, or $0.30 per basic share, and $0.30 per diluted share (“diluted EPS”) for the quarter-ended September 30, 2026.
	●	Return on Average Assets (“ROAA”) was 1.95% for the third quarter of 2026, compared to 2.04% in the second quarter of 2026 (both annualized).
	●	Return on Average Equity (“ROAE”) was 19.99% for the third quarter of 2026, compared to 20.34% in the second quarter of 2026 (both annualized).
	●	The Company’s efficiency ratio was 45.86% for the third quarter of 2026, compared to 48.78% in the second quarter of 2026.
	●	Net interest margin was 4.63%, reflecting a six basis point increase from 4.57% in the second quarter of 2026.
	●	Total assets grew by $175.2 million to $1.58 billion from June 30, 2026.
	●	Total deposits increased by $128.8 million to $1.34 billion from June 30, 2026. Noninterest bearing demand deposits increased by $62.3 million or 19.5% to $381.7 million from June 30, 2026.
	●	Gross loans increased by $150.2 million during the quarter to $1.37 billion, compared to $1.22 billion at June 30, 2026.
	●	Total stockholders’ equity increased by $15.0 million to $149.4 million as of September 30, 2026, up from $134.4 million as of June 30, 2026, reflecting continued earnings retention and equity raised through the Company’s at-the-market (“ATM”) program and other private placements.

During the third quarter, the Company continued to execute on its strategic growth initiatives while strengthening its capital position to support future growth. The Company completed a $35.0 million subordinated debt offering during the quarter, followed by a $31.0 million capital contribution to the Bank. The additional capital provides the Bank with increased capacity to support continued balance sheet growth while maintaining strong regulatory capital levels. The Company also continued to expand its lending platform, with growth across all loan portfolio segments, while OptimumFinance, LLC continued to grow its loan portfolio. At the same time, the Company experienced increased visibility within the investment community, accompanied by significantly greater trading activity and liquidity in the Company’s common stock.

“In my first full quarter as Chief Executive Officer, I am very pleased with both our results and the continued progress we are seeing across the Company,” said Chairman of the Board and Chief Executive Officer Moishe Gubin. “We generated record quarterly earnings, continued to produce strong loan and deposit growth, expanded our net interest margin, maintained strong credit quality, and strengthened our capital position. At the same time, we have identified additional opportunities to improve operating efficiency and limit expenses, the benefits of which we expect to begin seeing over the next several quarters. We believe we can realize these efficiencies while continuing to execute across the rest of the business and maintaining the growth momentum we have established. I feel very good about where OptimumBank stands today and the opportunities ahead of us as we continue to build long-term value for our shareholders.”

Net interest income for the quarter-ended September 30, 2026, increased to $16.8 million, up by $2.1 million from the second quarter of 2026 and $5.7 million from the third quarter of 2025, supported by higher yields on loans and securities. The cost of interest-bearing liabilities was 3.49%, up one basis point from 3.48% in the third quarter of 2025, while interest-earning asset yields rose 47 basis points to 6.93%. As a result, the Company’s net interest margin rose 26 basis points from the third quarter of 2025 to 4.63% for the quarter-ended September 30, 2026, a reflection of disciplined loan and deposit pricing strategy, prudent liquidity management, and balance sheet optimization amid a dynamic rate environment.

Noninterest income for the quarter-ended September 30, 2026, increased by $0.4 million from the prior quarter to $2.8 million, primarily driven by an increase in loan fees and an increase in fees related to banking services, partially offset by a decline in the gains on the sale of government guaranteed SBA loans. Noninterest expenses increased to $9.0 million, or $0.6 million from the second quarter, primarily relating to increases in employee compensation expenses, data processing costs, and regulatory assessment expense. The Company’s efficiency ratio (non-GAAP measure) was 45.86% for the third quarter of 2026, consistent with prudent cost management amid balance sheet expansion and associated revenue expansion.

Credit loss expense for the quarter-ended September 30, 2026 was $1.1 million, primarily due to the growth in the loan portfolio. Gross charge-offs remained modest at $40,000 while recoveries totaled $29,000, resulting in net charge-offs of only $11,000 during the third quarter of 2026. The allowance for credit losses stood at $12.1 million as of September 30, 2026, or 0.89% of total loans.

Loan portfolio growth remained strong in the third quarter of 2026 with growth across all loan segments. Gross loans increased by $150.2 million from the prior quarter. Commercial real estate continued to expand, growing by $91.4 million and residential real estate increased $28.8 million in the third quarter. Additionally, there were increases in land and construction of $11.5 million, commercial of $7.8 million, consumer of $6.5 million and in the multifamily portfolio segment of $4.3 million.

The continued 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, as well as the continued expansion of OptimumFinance, LLC during the third quarter of 2026. OptimumFinance, LLC grew its loan portfolio in the third quarter of 2026 to $26.7 million from $14.2 million in the second quarter. During the quarter, OptimumFinance, LLC issued additional notes payable to fund the corresponding asset growth.

On the funding side, total deposits increased by $128.8 million to $1.34 billion from the second quarter of 2026, with strong sequential growth across all deposit categories. The Company had $10.0 million in Federal Home Loan Bank (“FHLB”) advances outstanding at September 30, 2026, a decrease of $15.0 million from June 30, 2026.

On August 19, 2026, the Company issued $35.0 million in aggregate principal amount of 7.50% Fixed-to-Floating Rate Subordinated Notes due 2036 at 100% of their face amount. The subordinated notes bear interest at a fixed rate of 7.50% through September 1, 2031, after which the interest rate will reset quarterly to the then-current three-month term secured overnight financing rate (SOFR) plus 340 basis points. The notes mature on September 1, 2036, and, subject to certain conditions, may be redeemed by the Company beginning September 1, 2031.

The Bank’s capital levels remain strong, with a Tier 1 Leverage Ratio of 12.23%, well above regulatory minimums. The increase of 169 basis points from the prior quarter primarily reflects a $31.0 million capital infusion to the Bank following the issuance of the subordinated debt to support future expectations for continued strong asset growth, partially offset by strong earning asset growth during the third quarter. The Company remains well positioned to support continued growth and earnings momentum.

The Company’s outlook remains constructive. The third quarter of 2026 reflected continued progress, including strong loan and deposit growth, increased net interest income, improved operating efficiency, and continued earnings momentum. The Company also strengthened its capital position through the issuance of $35.0 million of subordinated debt, providing additional capacity to support future growth. OptimumBank continues to benefit from growing recognition within the banking and investment communities, including Buy ratings from all three independent equity research firms currently covering the Company. This increased visibility has been accompanied by significantly greater trading activity and liquidity in the Company’s common stock. Average daily trading volume increased approximately 235%, from 35,600 shares during the second quarter to 119,300 shares during the third quarter, while the Company’s share price increased approximately 49%, from $5.84 on June 30 to $8.72 on September 30. The Company remains focused on technology, talent, and targeted growth initiatives to support continued growth and long-term shareholder value.

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																3Q26 change vs
		3Q26				2Q26				1Q26				4Q25				3Q25				2Q26				3Q25
Selected Balance Sheet Data
Total assets		$	1,576,100			$	1,400,937			$	1,268,735			$	1,111,678			$	1,083,043			$	175,163			$	493,057
Total gross loans			1,367,318				1,217,084				1,090,894				958,793				813,722				150,234				553,596
Total deposits			1,342,826				1,214,045				1,092,883				931,750				959,487				128,781				383,339
Earnings Highlights
Net Income		$	7,172			$	6,655			$	4,663			$	4,853			$	4,323			$	517			$	2,849
Diluted earnings per share (EPS)		$	0.30			$	0.28			$	0.20			$	0.21			$	0.18			$	0.02			$	0.12
Net interest income		$	16,781			$	14,697			$	13,190			$	11,871			$	11,048			$	2,084			$	5,733
Performance Ratios
Net interest margin			4.63	%			4.57	%			4.49	%			4.39	%			4.37	%			0.06	%			0.26	%
Net interest spread			3.43	%			3.45	%			3.36	%			3.11	%			2.98	%			-0.02	%			0.45	%
Cost of interest-bearing liabilities			3.49	%			3.30	%			3.26	%			3.34	%			3.48	%			0.19	%			0.02	%
Efficiency ratio			45.86	%			48.78	%			53.47	%			49.59	%			50.68	%			(2.92	)%			(4.82	)%
Loan-to-deposit ratio			100.74	%			99.20	%			98.69	%			101.67	%			83.67	%			1.54	%			17.07	%
Return on (annualized)
Average assets (ROAA)			1.95	%			2.04	%			1.56	%			1.77	%			1.68	%			(0.09	)%			0.27	%
Average equity (ROAE)			19.99	%			20.34	%			15.12	%			16.23	%			15.17	%			(0.35	)%			4.82	%
Average tangible assets (ROTA)			1.95	%			2.04	%			1.56	%			1.77	%			1.68	%			(0.09	)%			0.27	%
Pre-tax pre-provision net revenue (PPNR)		$	10,621			$	8,801			$	6,968			$	6,855			$	6,426			$	1,820			$	4,195
Other Operating Measures
Common Shares outstanding - Voting			13,526,976				12,340,785				12,166,858				11,533,943				11,883,943				1,186,191				1,643,033
Common Shares outstanding - Nonvoting			11,458,351				11,458,351				-				-				-				-				11,458,351
Fully diluted shares outstanding			24,985,327				23,799,136				23,625,209				23,523,473				23,523,473				1,186,191				1,461,854
Fully diluted tangible book value per share		$	5.98			$	5.65			$	5.37			$	5.18			$	4.97			$	0.33			$	1.01
Tangible common equity to tangible assets			9.48	%			9.59	%			10.00	%			10.97	%			10.79	%			(0.11	)%			(1.31	)%
Tier 1 Leverage Ratio			12.23	%			10.54	%			10.74	%			11.39	%			11.71	%			1.69	%			0.53	%

Financial Results

Statement of Income

Net income was $7.2 million for the third quarter of 2026, compared to net income of $6.7 million for the second quarter of 2026, and $4.3 million for the third quarter of 2025. The increase from the second quarter of 2026 was primarily due to an increase in interest income to $25.1 million, compared to $21.7 million in the second quarter, primarily driven by an increase in interest income on loans, partially offset by an increase of $1.3 million in deposit and borrowings interest expense and interest expense associated with the new subordinated debt issuance. Additionally, there was a $0.4 million increase in noninterest income, partially offset by a $0.6 million increase in noninterest expense.

Total interest income was $25.1 million for the third quarter of 2026, compared to $21.7 million in the second quarter of 2026 and $16.3 million in the third quarter of 2025. The sequential growth was driven by a $3.1 million increase in interest income from loans. Compared to the third quarter of 2025, the increase was primarily due to a $457.0 million increase in average loan balances and improvements in loan yields.

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

		Quarterly Trends																				3Q26 change vs
		3Q26				2Q26				1Q26				4Q25				3Q25				2Q26				3Q25
Interest income
Loans		$	23,451			$	20,386			$	18,114			$	15,437			$	14,082			$	3,065			$	9,369
Debt securities			201				204				191				164				153				(3	)			48
Other			1,460				1,134				1,148				1,837				2,086				326				(626	)
Total interest income		$	25,112			$	21,724			$	19,453			$	17,438			$	16,321			$	3,388			$	8,791

Interest expense totaled $8.3 million for the third quarter of 2026, compared to $7.0 million for the second quarter of 2026 and $5.3 million for the third quarter of 2025. Compared to the second quarter of 2026, the increase in interest expense was primarily attributable to a $91.9 million increase in average interest-bearing liability balances, and a 19 basis point increase in the cost of interest-bearing liabilities from 3.30% to 3.49%. Compared to the third quarter of 2025, there was a $338.9 million increase in average interest-bearing liability balances, with a one basis point increase in the cost of interest-bearing liabilities, from 3.48% to 3.49%.

Net interest income was $16.8 million in the third quarter of 2026, up from $14.7 million in the second quarter of 2026 and $11.0 million in the third quarter of 2025. The quarter-over-quarter increase was primarily driven by growth in the average interest-earning assets of $147.8 million, partially offset by the increase in average interest-bearing liability balances and the higher cost of interest-bearing liabilities. On a year-over-year basis, the growth in net interest income was primarily attributable to a $457.0 million increase in average loan balances.

Net interest margin expanded to 4.63% for the third quarter of 2026, compared to 4.57% for the second quarter of 2026 and 4.37% for the third quarter of 2025. Compared to the second quarter of 2026, net interest margin increased by six basis points, primarily driven by a 17 basis point increase in the yield on interest-bearing assets partially offset by an increase in yields for the cost to fund interest earning assets. Compared to the third quarter of 2025, net interest margin increased by 26 basis points, primarily attributable to a 47 basis point increase in interest earning asset yields, partially offset by an increase in funding costs.

The cost of interest-bearing liabilities was 3.49% in the third quarter of 2026, compared to 3.30% in the second quarter of 2026 and 3.48% in the third quarter of 2025. The increase from the second quarter of 2026 was primarily due to additional notes payable issued by the OptimumFinance, LLC subsidiary during the quarter with an average balance increasing from $10.8 million during the second quarter to $22.9 million for the third quarter. The notes bear interest at 10.00%. The cost of interest bearing liabilities also reflects the subordinated debt issuance on August 19, 2026, with an average balance of $16.1 million during the quarter and average yield of 7.82% (inclusive of the amortization of issuance costs), and modestly higher yields on savings, NOW, and money market deposits. Excluding the OptimumFinance, LLC notes payable and impact from the issuance of subordinated debt during the quarter, the cost of interest-bearing liabilities was 3.25%, or four basis points higher than the second quarter of 2026. Compared to the same quarter last year, the cost of interest-bearing liabilities increased by one basis point. This increase was due to the addition of the notes payable and the subordinated debt and an increase in FHLB borrowings, partially offset by decreases in yields across the deposit portfolio with disciplined pricing following rate reductions that occurred in the prior year.

Credit loss expense was $1.1 million during the third quarter of 2026, compared to a $37,000 reversal in the second quarter of 2026, and $0.8 million of expense for the third quarter of 2025. Credit loss expense in the third quarter of 2026 was primarily attributable to loan growth. The prior quarter’s reversal 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 $40,000 while recoveries totaled $29,000, resulting in net charge-offs of $11,000 during the third quarter of 2026. The Company’s allowance for credit losses stood at $12.1 million, or 0.89% of total loans, as of September 30, 2026 compared to 0.91% at June 30, 2026 and 1.23% at September 30, 2025.

Noninterest income totaled $2.8 million for the third quarter of 2026, up from $2.5 million in the prior quarter and $2.0 million in the third quarter of 2025. During the quarter, the Company collected $0.9 million in late fees from the payoff of a previously reported nonaccrual loan, partially offset by lower gains on the sale of government guaranteed SBA loans compared to the prior quarter. Compared to the same quarter last year, the $0.8 million increase in noninterest income was primarily related to the additional late fees during the quarter and increases in wire transfers, ACH fees on deposit payment transactions, partially offset by lower gains on the sale of government guaranteed SBA loans and lower loan prepayment fees.

Noninterest expenses totaled $9.0 million for the third quarter of 2026, compared to $8.4 million in the second quarter of 2026 and $6.6 million in the third quarter of 2025. Compared to the second quarter of 2026, the increase of $0.6 million primarily relates to a $0.3 million increase in employee compensation expenses, $0.2 million in higher data processing costs, and $0.1 million in higher regulatory assessment expense. Compared to the third quarter of 2025, the increase of $2.4 million includes increases of $1.6 million, $0.4 million, $0.2 million, and $0.2 million in employee compensation expenses, data processing, regulatory assessment expenses, and other expenses, respectively.

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

		Quarterly Trends																				3Q26 change vs
(Dollars in thousands)		3Q26				2Q26				1Q26				4Q25				3Q25				2Q26				3Q25
Noninterest expenses
Salaries and employee benefits		$	5,592			$	5,279			$	4,988			$	3,672			$	4,004			$	313			$	1,588
Professional fees			295				363				295				333				276				(68	)			19
Occupancy and equipment			355				354				338				328				327				1				28
Data processing			1,160				986				914				794				788				174				372
Regulatory assessment			318				196				179				161				126				122				192
Losses on sale and write-downs of other real estate owned			-				-				5				54				-				-				-
Other			1,276				1,204				1,287				1,401				1,083				72				193
Total noninterest expenses		$	8,996			$	8,382			$	8,006			$	6,743			$	6,604			$	614			$	2,392

Income tax expense was $2.4 million for the third quarter of 2026 compared to $2.2 million in the second quarter of 2026 and $1.3 million in the third quarter of 2025. The effective tax rate for the quarter was 24.9%, compared to 24.7% in the prior quarter and 23.7% from the prior year comparative quarter.

Balance Sheet

Total assets were $1.58 billion as of September 30, 2026, increasing from $1.40 billion at June 30, 2026, and up from $1.08 billion at September 30, 2025. The quarter-over-quarter growth of $175.2 million was primarily attributable to a $148.4 million increase in net loans and a $27.9 million increase in cash and cash equivalents.

Cash and cash equivalents at September 30, 2026, were $174.1 million, which increased from $146.2 million at June 30, 2026, and decreased from $235.1 million at September 30, 2025.

Investment securities (debt securities available for sale and held-to-maturity) at September 30, 2026, were $25.7 million, compared to $26.9 million at June 30, 2026, and $23.2 million at September 30, 2025. There were no investment security purchases during the third quarter of 2026. No sales of investment securities were reported during these periods.

Total gross loans at September 30, 2026, were $1.37 billion, an increase from $1.22 billion at June 30, 2026, and up from $813.7 million at September 30, 2025. Gross loans increased during the quarter reflecting growth across all portfolio segments, with notably stronger growth in commercial real estate and residential loans. Compared to September 30, 2025, the gross loan portfolio increased by $553.6 million, reflecting growth primarily in commercial real estate.

The allowance for credit losses (“ACL”) was $12.1 million at September 30, 2026, representing 0.89% of total loans, compared to 0.91% at June 30, 2026. The ACL balance saw an increase from $11.0 million and $10 million at June 30, 2026 and September 30, 2025, respectively. The quarter-over-quarter increase of $1.1 million was primarily driven by loan growth during the quarter partially offset by a decline of $0.7 million for the specific reserves due primarily to the resolution and payoff of a previously reported nonaccrual loan. 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:

																						September 30, 2026 change vs
		September 30,				June 30,				March 31,				December 31,				September 30,				June 30,				September 30,
		2026				2026				2026				2025				2025				2026				2025
Beginning balance		$	11,020			$	11,061			$	10,273			$	10,018			$	9,338			$	(41	)		$	1,682
Credit loss expense (reversal) - funded			1,111				(30	)			791				389				639				1,141				472
Charge-offs			(40	)			(50	)			(44	)			(201	)			(129	)			30				109
Recoveries			29				39				41				67				170				(30	)			(161	)
Ending balance		$	12,120			$	11,020			$	11,061			$	10,273			$	10,018			$	1,100			$	2,102

Nonperforming assets (“NPA”) reflected strong asset quality at September 30, 2026. Nonaccrual loans decreased to $1.8 million from $2.2 million at June 30, 2026, and $3.0 million at September 30, 2025. The $0.3 million decrease from June 30, 2026 was due to a payoff of a previously reported $1.0 million nonaccrual loan partially offset by the addition of $0.7 million of other nonaccrual loans during the quarter. The $1.2 million decrease from September 30, 2025, primarily reflects payoffs of previously recorded commercial nonaccrual loans. The Company did not report any other real estate owned (“OREO”) properties at September 30, 2026 or June 30, 2026. Compared to September 30, 2025, OREO declined $0.6 million with the resolution of a previously reported asset during the first quarter of 2026. At September 30, 2026, there were no loans accruing interest that were 90 days or more past due. Additionally, the Company did not report any modified loans to borrowers experiencing financial difficulty during the third quarter of 2026.

Total deposits at September 30, 2026, were $1.34 billion, an increase from $1.21 billion at June 30, 2026, and an increase from $959.5 million at September 30, 2025. The increase from June 30, 2026, was attributable to increases in all deposit categories, including a $62.3 million, or 19.5% sequential increase in noninterest-bearing demand deposits and a $34.2 million, or 8.9% sequential increase in savings, NOW, and money market deposits. The increase from September 30, 2025, was also attributable to increases in all deposit categories, most notably a 61.6% increase in time deposits and a 21.6% increase in noninterest-bearing demand deposits. The Company continues to maintain a diverse and stable funding base.

Accumulated other comprehensive loss (“AOCL”) was $5.5 million at September 30, 2026, compared to $4.8 million at June 30, 2026, and $4.8 million at September 30, 2025. AOCL increased by $0.6 million quarter-over-quarter and $0.7 million year-over-year, primarily due to the increase in mid-to-long-term interest rates impacting the fair value of available-for-sale securities. All AOCL amounts represent unrealized gains and losses, net of applicable income taxes, and have no impact on reported earnings or regulatory capital.

Shareholders’ equity was $149.4 million as of September 30, 2026, compared to $134.4 million as of June 30, 2026, and $116.9 million as of September 30, 2025. The increase during the third quarter was principally attributable to net income of $7.2 million, $5.1 million in additional equity through private stock sales issued by the Company, $3.4 million in additional equity through the Company’s ATM program, partially offset by the $0.6 million increase in AOCL.

Earnings Per Share (“EPS”) for the quarter-ended September 30, 2026, was $0.30 per basic and diluted share, compared to $0.40 per basic share and $0.28 per diluted share for the quarter-ended June 30, 2026, and $0.37 per basic share and $0.18 per diluted share for the quarter-ended September 30, 2025. The increase in diluted earnings per share compared to the prior periods was primarily driven by growth in net income, which increased from $4.3 million for the quarter-ended September 30, 2025, to $7.2 million for the quarter-ended September 30, 2026.

Diluted earnings per share for prior periods have been retrospectively adjusted to reflect the amended conversion rights of the Series B Convertible Preferred Stock, which became effective during the third quarter of 2025, to ensure comparability.

Additionally, during the second quarter of 2026, the Company amended its Articles of Incorporation to authorize a new class of Nonvoting Common Stock and exchanged all outstanding Series B and Series C Convertible Preferred Stock for an aggregate of 11,458,351 shares of Nonvoting Common Stock. The creation of the Nonvoting Common Stock allowed the Company to simplify its capital structure by eliminating the outstanding convertible preferred stock while preserving the existing voting structure of the Company. Because the Series B and Series C Convertible Preferred Stock had already been reflected in the Company’s diluted weighted-average share count under the if-converted method, the exchange did not materially affect diluted earnings per share or further dilute existing shareholders’ ownership interests. The primary impact was on the weighted-average common shares used in the calculation of basic earnings per share, as the exchange occurred during the second quarter and basic EPS for the prior quarter reflects the timing of the conversion.

Accordingly, this release presents both basic and diluted earnings per share to facilitate comparability with prior periods and to reflect the transition in the Company’s capital structure. Absent future dilutive securities or other changes in the Company’s capital structure, the Company expects basic and diluted earnings per share to be equivalent, as reflected in the current quarter’s results.

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.

Tangible book value per diluted share was $5.98 at September 30, 2026, up $0.33 per share, or 23.2% annualized from $5.65 at June 30, 2026 on a fully diluted basis, and up $1.01, or 20.3% from $4.97 at September 30, 2025. This is based on total common shares outstanding of 24,985,327 at September 30, 2026 (up from 23,799,136 shares on a fully diluted basis at June 30, 2026, and up from 23,523,473 shares on a fully diluted basis at September 30, 2025). Common shares totaling 452,725 were issued in the quarter-ended September 30, 2026, through the Company’s ATM offering and an additional 733,466 were issued via private stock sales during the quarter. The increase in tangible book value per diluted share reflects strong quarterly earnings performance and overall capital strength.

FORWARD-LOOKING STATEMENTS

Certain statements made in this press release 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 cause 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 press release. You can identify forward-looking statements through our use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “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. Factors that could cause actual results to differ materially include, among others: changes in interest rates and economic conditions, particularly in Florida; the concentration of our loan portfolio in commercial real estate; credit quality and the adequacy of our allowance for credit losses; our ability to manage growth; deposit concentrations and liquidity; our ability to service our subordinated notes and the borrowings of our non-bank subsidiaries; competition; changes in laws and regulations; and the other factors described in our filings with the Securities and Exchange Commission.

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)

																						September 30, 2026 change vs
		September 30,				June 30,				March 31,				December 31,				September 30,				June 30,				September 30,
		2026				2026				2026				2025				2025				2026				2025
Assets
Cash and due from banks		$	14,056			$	14,637			$	15,074			$	9,349			$	9,271			$	(581	)		$	4,785
Interest-bearing deposits with banks			160,040				131,601				124,942				105,210				225,815				28,439				(65,775	)
Total cash and cash equivalents			174,096				146,238				140,016				114,559				235,086				27,858				(60,990	)
Debt securities available for sale			25,473				26,646				27,044				25,184				22,926				(1,173	)			2,547
Debt securities held-to-maturity			203				208				212				214				246				(5	)			(43	)
Loans, net of allowance for credit losses			1,352,805				1,204,381				1,078,533				947,294				802,812				148,424				549,993
Federal Home Loan Bank stock			1,253				1,966				2,678				3,028				658				(713	)			595
Premises and equipment, net			3,045				3,132				2,797				2,490				2,308				(87	)			737
Other real estate owned			-				-				-				551				605				-				(605	)
Right-of-use lease assets			2,298				2,405				2,511				2,617				2,725				(107	)			(427	)
Accrued interest receivable			5,111				4,862				3,994				3,621				3,171				249				1,940
Deferred tax asset			3,379				3,143				3,116				3,108				3,238				236				141
Other assets			8,437				7,956				7,834				9,012				9,268				481				(831	)
Total assets		$	1,576,100			$	1,400,937			$	1,268,735			$	1,111,678			$	1,083,043			$	175,163			$	493,057
Liabilities and Stockholders’ Equity
Liabilities
Noninterest-bearing demand deposits		$	381,667			$	319,375			$	304,887			$	266,520			$	313,973			$	62,292			$	67,694
Savings, NOW and money-market deposits			417,512				383,297				345,494				306,921				309,087				34,215				108,425
Time deposits			543,647				511,373				442,502				358,309				336,427				32,274				207,220
Total deposits			1,342,826				1,214,045				1,092,883				931,750				959,487				128,781				383,339
Federal Home Loan Bank advances			10,000				25,000				40,000				50,000				-				(15,000	)			10,000
Operating lease liabilities			2,447				2,547				2,647				2,745				2,846				(100	)			(399	)
Subordinated Debt			34,374				-				-				-				-				34,374				34,374
Other Borrowings			26,554				14,000				-				-				-				12,554				26,554
Other liabilities			10,510				10,965				6,357				5,286				3,822				(455	)			6,688
Total liabilities			1,426,711				1,266,557				1,141,887				989,781				966,155				160,154				460,556
Stockholders’ equity
Preferred stock			-				-
Series B Convertible Preferred			-				-				-				-				-				-				-
Series C Convertible Preferred			-				-				-				-				-				-				-
Preferred stock, value			-				-				-				-				-				-				-
Common stock			135				124				122				115				119				11				16
Nonvoting Common stock			115				115				-				-				-				-				115
Additional paid-in capital			122,304				113,832				112,993				112,578				112,574				8,472				9,730
Retained earnings (accumulated deficit)			32,291				25,119				18,464				13,801				8,948				7,172				23,343
Accumulated other comprehensive loss			(5,456	)			(4,810	)			(4,731	)			(4,597	)			(4,753	)			(646	)			(703	)
Total stockholders’ equity			149,389				134,380				126,848				121,897				116,888				15,009				32,501
Total liabilities and stockholders’ equity		$	1,576,100			$	1,400,937			$	1,268,735			$	1,111,678			$	1,083,043			$	175,163			$	493,057

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

		Quarterly Trends																				3Q26 change vs
		3Q26				2Q26				1Q26				4Q25				3Q25				2Q26				3Q25
Interest income
Loans		$	23,451			$	20,386			$	18,114			$	15,437			$	14,082			$	3,065			$	9,369
Debt securities			201				204				191				164				153				(3	)			48
Other			1,460				1,134				1,148				1,837				2,086				326				(626	)
Total interest income			25,112				21,724				19,453				17,438				16,321				3,388				8,791
Interest expense
Deposits			7,334				6,633				6,176				5,561				5,273				701				2,061
Borrowings			680				394				87				6				-				286				680
Interest on subordinated debt			317				-				-				-				-				317				317
Total interest expense			8,331				7,027				6,263				5,567				5,273				1,304				3,058
Net interest income			16,781				14,697				13,190				11,871				11,048				2,084				5,733
Credit loss expense (reversal)			1,066				(37	)			770				398				763				1,103				303
Net interest income after credit loss expense (reversal)			15,715				14,734				12,420				11,473				10,285				981				5,430
Noninterest income
Service charges and fees			1,607				1,551				1,313				1,268				1,252				56				355
Other			1,229				935				471				459				730				294				499
Total noninterest income			2,836				2,486				1,784				1,727				1,982				350				854
Noninterest expenses
Salaries and employee benefits			5,592				5,279				4,988				3,672				4,004				313				1,588
Professional fees			295				363				295				333				276				(68	)			19
Occupancy and equipment			355				354				338				328				327				1				28
Data processing			1,160				986				914				794				788				174				372
Regulatory assessment			318				196				179				161				126				122				192
Losses on sale and write-downs of other real estate owned			-				-				5				54				-				-				-
Other			1,276				1,204				1,287				1,401				1,083				72				193
Total noninterest expenses			8,996				8,382				8,006				6,743				6,604				614				2,392
Income before income taxes			9,555				8,838				6,198				6,457				5,663				717				3,892
Income taxes			2,383				2,183				1,535				1,604				1,340				200				1,043
Net Income		$	7,172			$	6,655			$	4,663			$	4,853			$	4,323			$	517			$	2,849
Earnings per share - Basic		$	0.30			$	0.40			$	0.39			$	0.42			$	0.37			$	(0.11	)		$	(0.07	)
Earnings per share - Diluted		$	0.30			$	0.28			$	0.20			$	0.21			$	0.18			$	0.02			$	0.12

OptimumBank Holdings, Inc.
Consolidated Statements of Earnings – Nine Months Ended (Unaudited)
(Dollars in thousands, except per share amounts)

		Nine Months Ended
		September 30,
		2026				2025				Change
Interest income
Loans		$	61,953			$	41,709			$	20,244
Debt securities			597				471				126
Other			3,742				4,736				(994	)
Total interest income			66,292				46,916				19,376
Interest expense
Deposits			20,143				15,873				4,270
Borrowings			1,161				327				834
Interest on subordinated debt			317				-				317
Total interest expense			21,621				16,200				5,421
Net interest income			44,671				30,716				13,955
Credit loss expense			1,799				1,638				161
Net interest income after credit loss expense			42,872				29,078				13,794
Noninterest income
Service charges and fees			4,470				3,389				1,081
Other			2,636				1,658				978
Total noninterest income			7,106				5,047				2,059
Noninterest expenses
Salaries and employee benefits			15,860				11,123				4,737
Professional fees			953				798				155
Occupancy and equipment			1,048				903				145
Data processing			3,060				1,946				1,114
Regulatory assessment			693				526				167
Other			3,773				3,115				658
Total noninterest expenses			25,387				18,411				6,976
Income before income taxes			24,591				15,714				8,877
Income taxes			6,101				3,919				2,182
Net Income		$	18,490			$	11,795			$	6,695
Earnings per share - Basic		$	1.05			$	1.00			$	0.05
Earnings per share - Diluted		$	0.78			$	0.50			$	0.28

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

		Three Months Ended September 30,
		3Q26												2Q26												3Q25
						Interest				Average								Interest				Average								Interest				Average
		Average				and				Yield/				Average				and				Yield/				Average				and				Yield/
		Balance				Dividends				Rate(1)				Balance				Dividends				Rate(5)				Balance				Dividends				Rate(5)
Interest-earning assets
Loans		$	1,257,377			$	23,451				7.40	%		$	1,141,791			$	20,386				7.16	%		$	800,336			$	14,082				7.04	%
Securities			26,397				201				3.02	%			27,042				204				3.03	%			22,695				153				2.70	%
Other (2)			154,139				1,460				3.76	%			121,282				1,134				3.75	%			188,109				2,086				4.44	%
Total interest-earning assets/interest income			1,437,913				25,112				6.93	%			1,290,115				21,724				6.75	%			1,011,140				16,321				6.46	%
Cash and due from banks			15,072												14,702												9,557
Premises and equipment			3,114												2,825												2,414
Other			4,776												4,025												5,209
Total assets		$	1,460,875											$	1,311,667											$	1,028,320
Interest-bearing liabilities
Savings, NOW and money-market deposits		$	403,727			$	2,470				2.43	%		$	367,750			$	2,168				2.36	%		$	286,156			$	1,800				2.52	%
Time deposits			493,478				4,864				3.91	%			462,792				4,465				3.87	%			320,800				3,473				4.33	%
Subordinated debt			16,080				317				7.82	%			-				-				-				-				-				-
Borrowings (3)			9,674				97				3.98	%			12,685				118				3.73	%			-				-				-
Notes Payable			22,904				583				10.10	%			10,770				276				10.28	%			-				-				-
Total interest-bearing liabilities/interest expense			945,863				8,331				3.49	%			853,997				7,027				3.30	%			606,956				5,273				3.48	%
Noninterest-bearing demand deposits			359,783												314,858												298,670
Other liabilities			12,867												11,584												8,687
Stockholders’ equity			142,362												131,228												114,007
Total liabilities and stockholders’ equity		$	1,460,875											$	1,311,667											$	1,028,320
Net interest income						$	16,781											$	14,697											$	11,048
Interest-rate spread (4)											3.43	%											3.45	%											2.98	%
Net interest margin (5)											4.63	%											4.57	%											4.37	%
Ratio of average interest-earning assets to average interest-bearing liabilities			1.52												1.51												1.67

(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 other borrowings.
(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)

		Nine Months Ended September 30,
		2026												2025
						Interest				Average								Interest				Average
		Average				and				Yield/				Average				and				Yield/
		Balance				Dividends				Rate(1)				Balance				Dividends				Rate(1)
Interest-earning assets
Loans		$	1,146,917				61,953				7.22	%		$	800,117			$	41,709				6.95	%
Securities			26,655				597				2.99	%			22,785				471				2.76	%
Other (2)			133,089				3,742				3.76	%			143,171				4,736				4.41	%
Total interest-earning assets/interest income			1,306,661				66,292				6.78	%			966,073				46,916				6.48	%
Cash and due from banks			13,436												12,078
Premises and equipment			2,874												2,297
Other			4,473												4,383
Total assets		$	1,327,444											$	984,831
Interest-bearing liabilities
Savings, NOW and money-market deposits		$	368,765				6,533				2.37	%		$	281,207			$	5,293				2.51	%
Time deposits			464,158				13,610				3.92	%			321,011				10,580				4.39	%
Subordinated debt			5,360				317				7.91	%			-				-				-
Borrowings (3)			10,481				305				3.89	%			11,482				327				3.80	%
Notes Payable			11,263				856				10.16	%			-				-				-
Total interest-bearing liabilities/interest expense			860,027				21,621				3.36	%			613,700				16,200				3.52	%
Noninterest-bearing demand deposits			323,757												253,000
Other liabilities			10,766												8,284
Stockholders’ equity			132,894												109,847
Total liabilities and stockholders’ equity		$	1,327,444											$	984,831
Net interest income							44,671											$	30,716
Interest-rate spread (4)											3.42	%											2.96	%
Net interest margin (5)											4.57	%											4.24	%
Ratio of average interest-earning assets to average interest-bearing liabilities			1.52												1.57

(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 other borrowings.
(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)

																						September 30, 2026 change vs
		September 30,				June 30,				March 31,				December 31,				September 30,				June 30,				September 30,
		2026				2026				2026				2025				2025				2026				2025
Residential real estate		$	107,058			$	78,268			$	73,130			$	74,018			$	66,723			$	28,790			$	40,335
Multi-family real estate			56,817				52,551				63,655				65,693				67,435				4,266				(10,618	)
Commercial real estate			996,528				905,174				790,238				666,508				524,865				91,354				471,663
Land and construction			57,786				46,290				41,000				36,212				43,364				11,496				14,422
Commercial			59,184				51,389				46,127				48,196				45,604				7,795				13,580
Consumer			89,945				83,412				76,744				68,166				65,731				6,533				24,214
Total loans			1,367,318				1,217,084				1,090,894				958,793				813,722				150,234				553,596
Deduct:
Net deferred loan fees and costs			(2,393	)			(1,683	)			(1,300	)			(1,227	)			(892	)			(710	)			(1,501	)
Allowance for credit losses			(12,120	)			(11,020	)			(11,061	)			(10,273	)			(10,018	)			(1,100	)			(2,102	)
Loans, net		$	1,352,805			$	1,204,381			$	1,078,533			$	947,293			$	802,812			$	148,424			$	549,993

Explanation of Certain Unaudited Non-GAAP Financial Measures

This press release 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)		3Q26				2Q26				1Q26				4Q25				3Q25
Net Income (GAAP)		$	7,172			$	6,655			$	4,663			$	4,853			$	4,323
Plus: Income Tax Expense			2,383				2,183				1,535				1,604				1,340
Plus: Credit Loss Expense (Reversal)			1,066				(37	)			770				398				763
Pre-tax, Pre-provision earnings (Non-GAAP)		$	10,621			$	8,801			$	6,968			$	6,855			$	6,426

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

(Dollars in thousands, except per share amounts)		3Q26				2Q26				1Q26				4Q25				3Q25
Total Stockholders’ (GAAP) and Tangible Common Equity		$	149,389			$	134,380			$	126,848			$	121,897			$	116,888
Common Shares Outstanding - Voting			13,527				12,341				12,167				11,534				11,884
Common Shares Outstanding - Nonvoting			11,458				11,458				-				-				-
Total Common Shares			24,985				23,799				12,167				11,534				11,884
Effect of conversion of series B preferred shares if converted			-				-				10,582				11,114				11,114
Effect of conversion of series C preferred shares if converted			-				-				876				876				526
Total Diluted Shares			24,985				23,799				23,625				23,524				23,524
Tangible Book Value per Common Share		$	5.98			$	5.65			$	10.43			$	10.57			$	9.84
Tangible Book Value per Share - Diluted		$	5.98			$	5.65			$	5.37			$	5.18			$	4.97

Efficiency Ratio:

(Dollars in thousands)			3Q26				2Q26				1Q26				4Q25				3Q25
Noninterest Expense (GAAP)		$	8,996			$	8,382			$	8,006			$	6,743			$	6,604
Net Interest Income (GAAP)			16,781				14,697				13,190				11,871				11,048
Noninterest Income (GAAP)			2,836				2,486				1,784				1,727				1,982
Total Revenue (Non-GAAP)		$	19,617			$	17,183			$	14,974			$	13,598			$	13,030
Efficiency Ratio(1)			45.86	%			48.78	%			53.47	%			49.59	%			50.68	%

⁽¹⁾ Efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and total non-interest income.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were OptimumBank Holdings' third-quarter 2026 earnings?

OptimumBank Holdings earned $7.2 million, or $0.30 per basic and diluted share, in the third quarter of 2026. Net income was $6.7 million in the second quarter of 2026 and $4.3 million in the third quarter of 2025.

Why were OptimumBank Holdings' basic and diluted EPS the same in the third quarter of 2026?

OptimumBank Holdings had no preferred stock outstanding during the quarter after exchanging all outstanding preferred stock for common stock on April 29, 2026. Management considers comparisons with prior periods' diluted EPS more meaningful because those figures included potential common shares underlying the preferred stock.

When can OptimumBank Holdings redeem its 2026 subordinated notes?

OptimumBank Holdings may redeem the subordinated notes beginning September 1, 2031, subject to certain conditions. The notes were issued on August 19, 2026, at 100% of face amount and mature on September 1, 2036.

How large was OptimumBank Holdings' allowance for credit losses at September 30, 2026?

The allowance for credit losses was $12.1 million at September 30, 2026, equal to 0.89% of total loans.