OptimumBank's Net Earnings Soar 28% on Strong Interest Income Growth

TL;DR

**OPHC is growing deposits and loans, driving strong earnings, but watch that diluted EPS dip.**

AI Summary

OptimumBank Holdings, Inc. (OPHC) reported a significant increase in net earnings for the nine months ended September 30, 2025, reaching $11.795 million, up from $9.173 million in the prior year, representing a 28.58% increase. This was driven by a robust 20.68% increase in net interest income to $30.716 million, compared to $25.453 million in the same period of 2024. Total assets grew by 16.09% to $1.083 billion from $932.933 million at December 31, 2024, primarily due to a substantial increase in interest-bearing deposits with banks, which surged by 183.53% to $225.815 million. Total deposits also saw a healthy rise of 24.25% to $959.487 million. However, diluted earnings per share for the nine months decreased slightly to $0.50 from $0.45, due to an amendment to Series B Preferred shares rights, which was retrospectively applied. The company also increased its allowance for credit losses to $10.018 million from $8.660 million, reflecting a proactive risk management approach.

Why It Matters

OptimumBank's strong earnings growth and significant asset expansion indicate a healthy operational environment, which is crucial for investor confidence in the regional banking sector. The substantial increase in deposits and interest-bearing assets suggests effective capital deployment and customer acquisition, potentially signaling a competitive edge in its Florida markets. For employees, this growth could mean job security and expansion opportunities. Customers benefit from a stable and growing bank, while the broader market sees a positive indicator for regional financial health, especially given the proactive increase in the allowance for credit losses, which could mitigate future risks.

Risk Assessment

Risk Level: medium — While net earnings increased, diluted EPS for the nine months ended September 30, 2025, decreased to $0.50 from $0.45 in 2024, primarily due to the restatement reflecting the impact of the Series B Preferred shares amendment. This dilution, coupled with an increase in the allowance for credit losses to $10.018 million from $8.660 million, suggests potential underlying credit quality concerns or a more conservative lending outlook, warranting investor scrutiny.

Analyst Insight

Investors should closely monitor OPHC's future diluted EPS trends and the underlying reasons for the Series B Preferred shares amendment's impact. While the overall financial health appears strong, a deeper dive into the loan portfolio's credit quality and the effectiveness of the increased allowance for credit losses is recommended before making significant investment decisions.

Key Numbers

• $11.795M — Net Earnings (Increased 28.58% for nine months ended Sept 30, 2025, from $9.173M in 2024.)
• $30.716M — Net Interest Income (Increased 20.68% for nine months ended Sept 30, 2025, from $25.453M in 2024.)
• $1.083B — Total Assets (Increased 16.09% from $932.933M at Dec 31, 2024.)
• $959.487M — Total Deposits (Increased 24.25% from $772.195M at Dec 31, 2024.)
• $225.815M — Interest-Bearing Deposits with Banks (Increased 183.53% from $79.648M at Dec 31, 2024.)
• $0.50 — Diluted EPS (Decreased from $0.45 for nine months ended Sept 30, 2024, due to restatement.)
• $10.018M — Allowance for Credit Losses (Increased from $8.660M at Dec 31, 2024.)
• 11,883,943 — Common Shares Outstanding (As of September 30, 2025, up from 11,636,092 at December 31, 2024.)

Key Players & Entities

• OptimumBank Holdings, Inc. (company) — registrant
• OptimumBank (company) — subsidiary bank
• Federal Deposit Insurance Corporation (regulator) — insures deposits
• NYSE American (regulator) — exchange where OPHC is registered
• $11.795 million (dollar_amount) — net earnings for nine months ended Sept 30, 2025
• $9.173 million (dollar_amount) — net earnings for nine months ended Sept 30, 2024
• $1.083 billion (dollar_amount) — total assets as of Sept 30, 2025
• $932.933 million (dollar_amount) — total assets as of Dec 31, 2024
• $0.50 (dollar_amount) — diluted EPS for nine months ended Sept 30, 2025
• $0.45 (dollar_amount) — diluted EPS for nine months ended Sept 30, 2024

FAQ

Filing Documents

• form10-q.htm (10-Q) — 1802KB
• ex31-1.htm (EX-31.1) — 12KB
• ex31-2.htm (EX-31.2) — 12KB
• ex32-1.htm (EX-32.1) — 6KB
• ex32-2.htm (EX-32.2) — 6KB
• 0001493152-25-021417.txt ( ) — 8397KB
• ophc-20250930.xsd (EX-101.SCH) — 41KB
• ophc-20250930_cal.xml (EX-101.CAL) — 62KB
• ophc-20250930_def.xml (EX-101.DEF) — 197KB
• ophc-20250930_lab.xml (EX-101.LAB) — 325KB
• ophc-20250930_pre.xml (EX-101.PRE) — 278KB
• form10-q_htm.xml (XML) — 2066KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

Financial Statements

Item 1. Financial Statements 1 Condensed Consolidated Balance Sheets — September 30, 2025 (unaudited) and December 31, 2024 (audited) 1 Condensed Consolidated Statements of Earnings — Three and Nine Months ended September 30, 2025 and 2024 (unaudited) 2 Condensed Consolidated Statements of Comprehensive Income — Three and Nine Months ended September 30, 2025 and 2024 (unaudited) 3 Condensed Consolidated Statements of Stockholders' Equity — Three and Nine Months ended September 30, 2025 and 2024 (unaudited) 4 Condensed Consolidated Statements of Cash Flows — Nine Months ended September 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) September 30, December 31, 2025 2024 (Unaudited) (Audited) Assets: Cash and due from banks $ 9,271 $ 13,982 Interest-bearing deposits with banks 225,815 79,648 Total cash and cash equivalents 235,086 93,630 Debt securities available for sale 22,926 22,773 Debt securities held-to-maturity (fair value of $ 221 and $ 247 ) 246 281 Loans, net of allowance for credit losses of $ 10,018 and $ 8,660 802,812 794,985 Federal Home Loan Bank stock 658 2,929 Premises and equipment, net 2,308 2,062 Right-of-use lease assets 2,725 2,679 Accrued interest receivable 3,171 3,348 Deferred tax asset 3,238 3,001 Other assets 9,873 7,245 Total assets $ 1,083,043 $ 932,933 Liabilities and Stockholders' Equity: Liabilities: Noninterest-bearing demand deposits $ 313,973 $ 211,900 Savings, NOW and money-market deposits 309,087 278,355 Time deposits 336,427 281,940 Total deposits 959,487 772,195 Federal Home Loan Bank advances - 50,000 Operating lease liabilities 2,846 2,774 Other liabilities 3,822 4,780 Total liabilities 966,155 829,749 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, 11,883,943 and 11,636,092 shares issued and outstanding 119 116 Additional paid-in capital 112,574 111,485 Retained earnings (accumulated deficit) 8,948 ( 2,847 ) Accumulated ot

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