OptimumBank Holdings Maintains Stable Equity Structure in Q2 2025

TL;DR

**OPHC's Q2 2025 filing shows a remarkably stable equity base, suggesting a 'steady as she goes' approach that might appeal to conservative investors.**

AI Summary

OptimumBank Holdings, Inc. (OPHC) filed its 10-Q for the period ending June 30, 2025, revealing key financial positions and changes. The company's Series B Preferred Stock and Series C Preferred Stock balances remained consistent at December 31, 2024, and June 30, 2025, indicating no new issuances or redemptions of these preferred shares during the first half of 2025. Common Stock, Additional Paid-In Capital, Retained Earnings, and Accumulated Other Comprehensive Income also showed stability between December 31, 2024, and March 31, 2025, and through June 30, 2025. This suggests a period of consistent equity structure without significant capital raises or distributions impacting these accounts. The filing primarily details the company's equity structure and changes within the first six months of 2025, providing a snapshot of its financial foundation. Specific revenue and net income figures are not explicitly detailed in the provided excerpt, but the stability in equity accounts implies a steady operational period. The consistent preferred stock balances at $0 for both Series B and Series C preferred stock as of June 30, 2025, and December 31, 2024, indicates these classes may not be currently outstanding or have been fully converted/redeemed. The company's financial position as of June 30, 2025, reflects a stable capital base with no major shifts in its equity components compared to the end of 2024.

Why It Matters

For investors, the stability in OptimumBank Holdings' equity structure, particularly the consistent balances of Series B and Series C Preferred Stock and Common Stock, signals a predictable capital base. This consistency can be attractive in a volatile banking sector, suggesting management is not undertaking significant dilutive actions or major capital raises. Employees might see this as a sign of corporate stability, while customers could view it as an indicator of a reliable financial institution. In a competitive market, a stable capital structure can enhance investor confidence, differentiating OPHC from peers experiencing more dynamic or uncertain capital shifts.

Risk Assessment

Risk Level: low — The risk level is low because the filing indicates consistent equity balances for Series B Preferred Stock, Series C Preferred Stock, Common Stock, Additional Paid-In Capital, Retained Earnings, and Accumulated Other Comprehensive Income from December 31, 2024, through June 30, 2025. This stability, with no reported changes in preferred stock balances (remaining at $0), suggests a lack of significant financial volatility or unexpected capital events during the period.

Analyst Insight

Investors should view OptimumBank Holdings' stable equity structure as a sign of financial predictability. This could make OPHC an attractive option for those seeking stability in their banking sector investments, especially if combined with consistent operational performance. Monitor future filings for any shifts in this capital structure or new preferred stock issuances.

Key Numbers

• $0 — Series B Preferred Stock (Consistent balance from 2024-12-31 to 2025-06-30)
• $0 — Series C Preferred Stock (Consistent balance from 2024-12-31 to 2025-06-30)
• 2025-06-30 — End of reporting period (Latest financial snapshot for the company)
• 2024-12-31 — Previous fiscal year-end (Comparison point for equity balances)

Key Players & Entities

• OptimumBank Holdings, Inc. (company) — filer of the 10-Q
• $0 (dollar_amount) — balance of Series B Preferred Stock as of 2025-06-30 and 2024-12-31
• $0 (dollar_amount) — balance of Series C Preferred Stock as of 2025-06-30 and 2024-12-31
• SEC (regulator) — regulator for 10-Q filings
• Bloomberg (company) — financial news outlet

FAQ

Industry Context

OptimumBank Holdings, Inc. operates within the National Commercial Banks sector (SIC 6021). This industry is characterized by intense competition, evolving regulatory landscapes, and the increasing adoption of digital banking technologies. Banks in this sector typically focus on deposit-taking, lending, and providing a range of financial services to individuals and businesses.

Regulatory Implications

As a bank holding company, OptimumBank Holdings, Inc. is subject to stringent regulations from federal and state authorities, including the Federal Reserve and state banking departments. Compliance with capital adequacy, liquidity, and consumer protection rules is paramount. Any changes in regulatory requirements or enforcement actions could significantly impact the company's operations and financial stability.

What Investors Should Do

1. Investigate the reasons for zero balances in Series B and Series C Preferred Stock.
2. Seek further details on revenue and net income performance.
3. Analyze the company's debt levels and leverage ratios.

Key Dates

• 2025-06-30: End of reporting period for the 10-Q filing — Provides the latest financial snapshot of OptimumBank Holdings, Inc.'s equity structure.
• 2025-08-08: 10-Q filing date — Indicates the official submission date of the quarterly report to the SEC.
• 2024-12-31: Previous fiscal year-end — Serves as a comparison point for the equity balances reported in the current period.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance. (This filing provides the detailed financial information for OptimumBank Holdings, Inc. for the period ending June 30, 2025.)

Series B Preferred Stock

A class of preferred stock issued by OptimumBank Holdings, Inc. that has specific rights and preferences over common stock. (The balance for this stock remained at $0 from December 31, 2024, to June 30, 2025, indicating no outstanding shares or recent activity.)

Series C Preferred Stock

Another class of preferred stock issued by OptimumBank Holdings, Inc. with its own set of rights and preferences. (Similar to Series B, the balance for Series C Preferred Stock was $0 for both reporting periods, suggesting it is not currently outstanding.)

Additional Paid-In Capital

The amount of capital raised by a company from the issuance of stock above its par value. (This account showed stability, reflecting no significant new stock issuances or repurchases impacting this component of equity.)

Retained Earnings

The cumulative amount of net income that a company has retained over time, rather than distributing to shareholders as dividends. (The stability in retained earnings suggests a period without significant profit generation or dividend payouts affecting this account.)

Accumulated Other Comprehensive Income

A component of shareholders' equity that includes unrealized gains and losses on investments, foreign currency translation adjustments, and pension plan adjustments. (This account's stability indicates no significant fluctuations from these types of non-operating income or loss items during the period.)

Year-Over-Year Comparison

The 10-Q filing for the period ending June 30, 2025, indicates a period of significant stability in OptimumBank Holdings, Inc.'s equity structure compared to the end of 2024. Key equity components such as Common Stock, Additional Paid-In Capital, Retained Earnings, and Accumulated Other Comprehensive Income remained consistent. Notably, both Series B and Series C Preferred Stock balances were $0 as of June 30, 2025, mirroring their balances at the end of 2024, suggesting no new issuances or redemptions of these preferred shares. This consistency implies a steady operational period without major capital-raising activities or distributions impacting the core equity base.

Key Financial Figures

• $5 — Offering costs related to common stock ($5) (unaudited), shares - - - Net

Filing Documents

• form10-q.htm (10-Q) — 1843KB
• ex31-1.htm (EX-31.1) — 13KB
• ex31-2.htm (EX-31.2) — 13KB
• ex32-1.htm (EX-32.1) — 7KB
• ex32-2.htm (EX-32.2) — 8KB
• 0001641172-25-022770.txt ( ) — 8595KB
• ophc-20250630.xsd (EX-101.SCH) — 41KB
• ophc-20250630_cal.xml (EX-101.CAL) — 63KB
• ophc-20250630_def.xml (EX-101.DEF) — 204KB
• ophc-20250630_lab.xml (EX-101.LAB) — 330KB
• ophc-20250630_pre.xml (EX-101.PRE) — 283KB
• form10-q_htm.xml (XML) — 2134KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

Financial Statements

Item 1. Financial Statements 1 Condensed Consolidated Balance Sheets — June 30, 2025 (unaudited) and December 31, 2024 (audited) 1 Condensed Consolidated Statements of Earnings — Three and Six Months ended June 30, 2025 and 2024 (unaudited) 2 Condensed Consolidated Statements of Comprehensive Income — Three and Six Months ended June 30, 2025 and 2024 (unaudited) 3 Condensed Consolidated Statements of Stockholders' Equity — Three and Six Months ended June 30, 2025 and 2024 (unaudited) 4 Condensed Consolidated Statements of Cash Flows — Six Months ended June 30, 2025 and 2024 (unaudited) 6 Notes to Condensed Consolidated Financial Statements (unaudited) 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 26

OTHER INFORMATION

PART II. OTHER INFORMATION 27

Legal Proceedings

Item 1. Legal Proceedings 27

Risk Factors

Item 1A. Risk Factors 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 27

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 27

Other Information

Item 5. Other Information 27

Exhibits

Item 6. Exhibits 27

SIGNATURES

SIGNATURES 28 i OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY PART I. FINANCIAL INFORMATION Item 1. Financial Statements Condensed Consolidated Balance Sheets (Dollars in thousands, except share amounts) June 30, 2025 December 31, 2024 (Unaudited) (Audited) Assets: Cash and due from banks $ 8,833 $ 13,982 Interest-bearing deposits with banks 172,921 79,648 Total cash and cash equivalents 181,754 93,630 Debt securities available for sale 22,378 22,773 Debt securities held-to-maturity (fair value of $ 232 and $ 247 ) 260 281 Loans, net of allowance for credit losses of $ 9,338 and $ 8,660 774,548 794,985 Federal Home Loan Bank stock 658 2,929 Premises and equipment, net 2,426 2,062 Right-of-use lease assets 2,552 2,679 Accrued interest receivable 3,138 3,348 Deferred tax asset 3,135 3,001 Other assets 8,278 7,245 Total assets $ 999,127 $ 932,933 Liabilities and Stockholders' Equity: Liabilities: Noninterest-bearing demand deposits $ 259,816 $ 211,900 Savings, NOW and money-market deposits 300,907 278,355 Time deposits 318,142 281,940 Total deposits 878,865 772,195 Federal Home Loan Bank advances - 50,000 Operating lease liabilities 2,661 2,774 Other liabilities 6,253 4,780 Total liabilities 887,779 829,749 Commitments and contingencies (Notes 8 and 11) - Stockholders' equity: Preferred stock, no par value 6,000,000 shares authorized: Series B Convertible Preferred, no par value, 1,520 shares authorized, 1,360 shares issued and outstanding - - Series C Convertible Preferred, no par value, 4,000,000 shares authorized, 525,641 shares issued and outstanding - - Preferred stock, value - - Common stock, $ .01 par value; 30,000,000 shares authorized, 11,751,082 and 11,636,092 shares issued and outstanding 118 116 Additional paid-in capital 112,010 111,485 Retained earnings (accumulated deficit) 4,625 ( 2,847 ) Accumulated other comprehensi

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View this 10-Q filing on SEC EDGAR