Financial Data and Key Metrics Changes - Net earnings for Q3 increased by over $700,000 to approximately $4.3 million compared to roughly $3.6 million in Q2 [5] - Net interest income rose by about $800,000 quarter-over-quarter, from just over $10.2 million to just over $11 million [6] - Core return on average equity (ROE) was approximately 22.6% for the quarter, one of the highest levels among community banks nationwide [8] - Total assets grew by $83.9 million to $1.08 billion as of September 30, 2025 [16] Business Line Data and Key Metrics Changes - Gross loans ended the quarter at $813.7 million, up from $784.6 million last quarter, representing a strong acceleration of loan growth [14] - Total deposits grew to $959.5 million, with $80.6 million in new deposits during Q3 [15] - Non-interest income increased nearly $1.5 million year-over-year, with service charges contributing approximately $3.4 million year-to-date [15] Market Data and Key Metrics Changes - The bank's net interest margin (NIM) for Q3 increased to 4.37%, while year-to-date NIM stands at 4.24% [23] - The allowance for credit losses to loans ratio stands at 1.23%, above the national peer average of 1.17% [16] Company Strategy and Development Direction - The company aims to reinforce its position as a rapidly growing community bank in South Florida while maintaining a relationship-driven culture [19] - The bank is actively searching for mergers and acquisitions to support growth alongside organic expansion [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth and profitability, driven by a disciplined approach to lending and cost management [11][12] - The leadership emphasized the importance of community relationships and customer loyalty in driving deposit growth [25][26] Other Important Information - The company celebrated its 25th anniversary, highlighting its growth from a single branch to a $1.1 billion institution [2] - The bank's efficiency ratio remains competitive at 50.7%, well below the peer average of 68.02% [18] Q&A Session Summary Question: What drove the expansion in Q3 NIM, and how does year-to-date performance compare with margin levels going forward? - Management indicated that the expansion was due to older loans at lower interest rates running off and being replaced by newer loans at higher rates [24] Question: What is driving the deposit growth, and how is the deposit mix evolving? - Management noted that a loyal customer base contributes to deposit growth, with a historical mix of one-third non-interest-bearing deposits [25][26] Question: Which loan segments are driving growth, and how do you feel about overall credit risk? - The majority of growth is in commercial real estate, with strong asset quality maintained through high underwriting standards [29] Question: How does management evaluate capital adequacy relative to regulatory requirements and internal targets? - The bank's capital structure is robust, well above regulatory requirements, and management expects capital to remain above 10% [34] Question: How is the bank positioning itself competitively amid regional CRE dynamics and deposit competition? - The bank differentiates itself through strong customer relationships and service, focusing on quality over rate competition [37][38] Question: Can the bank attract New York City depositors given recent events? - Management believes there is potential for growth beyond South Florida, but emphasizes the importance of knowing the customer [41][43]

OptimumBank Holdings (NYSEAM:OPHC) Q3 2025 Earnings Call November 13, 2025 10:00 AM ET Company ParticipantsSeth Denison - Managing Director of Investor RelationsElliot Nunez - CFOMoishe Gubin - ChairmanTim Terry - President and CEOOperatorLadies and gentlemen, thank you for joining us, and welcome to OptimumBank Holdings Q3 Earnings Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's ca ...

Financial Data and Key Metrics Changes - Net earnings for Q3 2025 increased by over $700,000 to approximately $4.3 million compared to roughly $3.6 million in Q2 2025 [6][7] - Net interest income rose by about $800,000 quarter over quarter, from just over $10.2 million to just over $11 million [7] - Pre-tax, pre-provision income reached approximately $17.35 million year to date, representing an annualized run rate of about $23.1 million [8][10] - Core return on average equity (ROE) was approximately 22.6% for the quarter, one of the highest levels among community banks nationwide [8] Business Line Data and Key Metrics Changes - Gross loans ended the quarter at $813.7 million, up from $784.6 million last quarter, representing a strong acceleration of loan growth [14] - Total deposits grew to $959.5 million, with $80.6 million in new deposits during Q3 2025 [15][18] - Non-interest income increased nearly $1.5 million year over year, driven by service charges and fees [14][16] Market Data and Key Metrics Changes - Total assets grew by $83.9 million to $1.08 billion as of September 30, 2025 [17][18] - The efficiency ratio remained highly competitive at 50.7%, well below the peer average of 68.02% [19] Company Strategy and Development Direction - The company aims to reinforce its position as one of the most dynamic and rapidly growing community banks in South Florida while maintaining a relationship-driven culture [20][21] - The focus remains on utilizing strong capital and a dedicated team to support growth and expansion [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth and profitability, emphasizing the importance of community relationships [20][39] - The company is actively searching for mergers and acquisitions to further enhance growth [36] Other Important Information - The company celebrated its 25th anniversary, highlighting its growth from a single branch to a $1.1 billion institution [3][6] - The allowance for credit losses to loans ratio stands at 1.23%, above the national peer average of 1.17% [17] Q&A Session Summary Question: What drove the expansion in Q3 NIM, and how does year-to-date performance compare with margin levels going forward? - The expansion in NIM was driven by older loans running off at lower interest rates and newer loans being issued at higher rates [26] Question: What is driving the deposit growth, and how is the deposit mix evolving? - The growth is attributed to a loyal customer base, with a historical mix of one-third non-interest-bearing deposits [27][28] Question: Which loan segments are driving growth, and how do you feel about overall credit risk? - The majority of growth is in commercial real estate, with strong asset quality maintained [30][31] Question: How does management evaluate capital adequacy relative to regulatory requirements and internal targets? - The company has a robust capital structure, well above regulatory requirements, and is actively seeking growth opportunities [34][36] Question: How is the bank positioning itself competitively amid regional CRE dynamics and deposit competition? - The bank differentiates itself through strong customer relationships and service quality rather than competing solely on rates [38][39] Question: Can the bank attract New York City depositors given recent events? - The bank's customer base is not limited to South Florida, and there are opportunities to expand beyond current markets [42][44]

Core Insights - OptimumBank Holdings, Inc. reported net earnings of $4.32 million for Q3 2025, an increase from $3.60 million in Q2 2025 and $3.30 million in Q3 2024, driven by improved net interest income and noninterest income [1][11][18] Financial Performance - Net interest income rose to $11.05 million in Q3 2025, up from $10.24 million in Q2 2025 and $8.96 million in Q3 2024, supported by higher yields on loans and lower costs on interest-bearing liabilities [4][14] - Noninterest income increased to $1.98 million in Q3 2025, compared to $1.83 million in Q2 2025 and $1.12 million in Q3 2024, driven by service charges and fee-based revenue [5][18] - Total deposits grew by $80.62 million to $959.49 million from Q2 2025, representing a 9.17% increase quarter-over-quarter and an 18.97% increase year-over-year [2][30] - Total assets reached $1.08 billion as of September 30, 2025, up from $999.13 million at June 30, 2025, reflecting a quarter-over-quarter increase of $83.92 million [22] Loan Portfolio and Credit Quality - The gross loan portfolio increased by $29.16 million to $813.72 million in Q3 2025, with growth in commercial real estate and consumer loans [2][25] - Credit loss expense decreased to $0.76 million in Q3 2025, down from $1.04 million in Q2 2025, indicating effective management of the loan portfolio [6][17] - The allowance for credit losses stood at $10.02 million, or 1.23% of total loans, reflecting a well-managed credit risk profile [26] Capital and Efficiency - Total stockholders' equity increased to $116.89 million as of September 30, 2025, up from $111.35 million at June 30, 2025, driven by retained earnings [32] - The efficiency ratio was maintained at 50.68%, indicating prudent cost management amid growth [5][19] Market Position and Outlook - The company continues to invest in technology and talent, reinforcing its position as a rapidly growing community bank in South Florida [9] - The outlook remains positive, with expectations for continued growth and earnings momentum through the remainder of 2025 [9]

Financial Performance - Total assets increased by approximately $150.1 million to $1.08 billion at September 30, 2025, from $932.9 million at December 31, 2024[107] - Net loans increased by $7.8 million to $802.8 million at September 30, 2025, from $795.0 million at December 31, 2024[107] - Deposits grew by approximately $187.3 million to $959.5 million at September 30, 2025, from $772.2 million at December 31, 2024[107] - Return on average assets increased to 1.6% for the nine months ended September 30, 2025, compared to 1.4% for the previous year[108] - Return on average equity increased to 14.3% for the nine months ended September 30, 2025, compared to 7.3% for the previous year[108] - Net earnings for the three months ended September 30, 2025, were $4.3 million, an increase of 31% compared to $3.3 million for the same period in 2024[123] - For the nine months ended September 30, 2025, net earnings were $11.8 million, a 29% increase from $9.2 million in 2024[131] Income and Expenses - Net interest income for the three months ended September 30, 2025, was $11.048 million, compared to $8.962 million for the same period in 2024[116] - Total interest income increased to $16.3 million for the three months ended September 30, 2025, up 6% from $15.3 million in 2024, primarily due to higher average balances of interest-earning assets[124] - Total interest expense decreased by $1.1 million to $5.3 million for the three months ended September 30, 2025, a reduction of 17% compared to $6.4 million in 2024[125] - Total noninterest income for the three months ended September 30, 2025, was $2.0 million, an increase of 78% from $1.1 million in 2024, driven by higher wire transfer and ACH fees[127] - Total noninterest expenses increased to $18.4 million for the nine months ended September 30, 2025, compared to $15.1 million in 2024, primarily due to employee compensation and benefits[136] Credit and Allowance - Credit loss expense was recorded at $0.76 million for the three months ended September 30, 2025, compared to $0.36 million in 2024, indicating a 114% increase[126] - The allowance for credit losses totaled $10.0 million or 1.23% of loans outstanding at September 30, 2025, compared to $8.7 million or 1.08% at December 31, 2024[134] Strategic Initiatives - The company plans to upgrade its core banking system in 2025, including online and mobile banking applications[101] - The company entered the Small Business Administration (SBA) lending space in late 2023 and was designated as a Preferred Lender in Q1 2025[102] - The company is investing $10 million in research and development for new technologies aimed at enhancing user experience[153] - The company is considering strategic acquisitions to bolster its market position, with a budget of $30 million allocated for potential deals[149] Market and User Growth - The company reported a significant increase in revenue, reaching $500 million, representing a 20% year-over-year growth[149] - User data showed a total of 1.5 million active users, up from 1.2 million in the previous quarter, indicating a 25% increase[150] - The company provided guidance for the next quarter, projecting revenue between $520 million and $540 million, which reflects a growth rate of approximately 4% to 8%[151] - New product launches are expected to contribute an additional $50 million in revenue over the next fiscal year[152] - Market expansion efforts include entering two new regions, which are projected to increase user base by 15%[154] - Customer retention rate improved to 85%, indicating strong user satisfaction and loyalty[151] Operational Efficiency - The interest rate spread increased to 2.98% for the three months ended September 30, 2025, compared to 2.61% for the same period in 2024[117] - The overall operating margin improved to 35%, up from 30% in the previous year, reflecting better cost management[150] - The company plans to enhance its digital marketing strategy, allocating an additional $5 million to increase brand visibility[152]

Core Viewpoint - OptimumBank Holdings, Inc. will release its financial results for Q3 2025 on November 13, 2025, and will host a conference call to discuss the results and provide a business update [1]. Company Overview - OptimumBank was founded in 2000 in Ft. Lauderdale, Florida, focusing on traditional in-person banking for businesses and consumers in South Florida [3]. - The bank aims to provide competitive services without the high fees associated with larger financial institutions, leveraging its expertise in real estate and commercial lending [3]. - The company has experienced significant growth in the past decade and plans to capitalize on this momentum in the future [3]. Business Solutions - OptimumBank offers a range of financial solutions, including Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking [4].

Core Points - OptimumBank will celebrate its 25th anniversary by ringing the Opening Bell at the New York Stock Exchange on October 27, 2025 [1][2] - The event signifies the bank's growth from a small community bank to a billion-dollar institution, highlighting its commitment to community service [3] - OptimumBank has surpassed $1 billion in assets in 2025 and continues to rank among the best-performing financial institutions in South Florida [3][4] Company Overview - Founded in 2000 in Fort Lauderdale, Florida, OptimumBank has evolved from a single-branch startup to a significant independent bank in the region [3][5] - The bank focuses on personal, relationship-driven service while integrating technology to enhance customer experience [4] - OptimumBank offers a range of financial solutions including Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking [5]

Core Insights - The latest episode of The GotStocks Podcast features Moishe Gubin, Chairman of OptimumBank Holdings Inc., discussing the bank's community focus and growth trajectory [2][3] - OptimumBank has achieved significant growth, breaking the billion-dollar mark in total assets and expecting continued growth of 30-40% over the next few years [3][4] - The bank operates with a net income of approximately $20 to $25 million annually, allowing for potential growth of about $200 million per year due to a 10% capital rate and a debt-free balance sheet [4] Company Overview - OptimumBank Holdings Inc. is a single bank holding company that owns 100% of OptimumBank, a community bank based in Fort Lauderdale, Florida [2][7] - The bank focuses on traditional in-person banking services for businesses and consumers in South Florida, emphasizing customer service and relationship-building [7][8] - OptimumBank has not experienced any bad loans in many years, with a lending philosophy centered on local borrowers who are familiar with the bank [5] Growth Strategy - The bank is positioned for sustainable expansion, with opportunities to bring in preferred debt or equity to support its growth [4] - OptimumBank's business solutions include Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking [8] - The company aims to capitalize on its momentum and continue its explosive growth trajectory in the coming months and years [7]

[FORM 8-K Filing Details](index=1&type=section&id=FORM%208-K%20Filing%20Details) This section details the registrant's identity, securities registration, and emerging growth company status for the FORM 8-K filing [Registrant Information](index=1&type=section&id=Registrant%20Information) This section identifies OptimumBank Holdings, Inc. as the registrant, detailing its incorporation state, commission file number, address, and contact information - **Registrant**: OPTIMUMBANK HOLDINGS, INC[1](index=1&type=chunk) - **Incorporation**: Florida[1](index=1&type=chunk) - **Address**: 2929 East Commercial Boulevard, Ft. Lauderdale, Florida 33308[1](index=1&type=chunk) [Securities Registration and Emerging Growth Status](index=1&type=section&id=Securities%20Registered%20pursuant%20to%20Section%2012(b)%20of%20the%20Act) This section outlines the registrant's securities registered under Section 12(b) of the Act and confirms its status regarding emerging growth company provisions Registered Securities | Title of each class registered | Trading Symbol(s) | Name of exchange on which registered | | :--- | :--- | :--- | | Common Stock | OPHC | NYSE American | - The registrant is **not an emerging growth company**[3](index=3&type=chunk) [Current Report Items](index=2&type=section&id=Current%20Report%20Items) This section covers the release of unaudited financial results, Regulation FD disclosure, and a list of accompanying exhibits [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition.) This item reports the release of a presentation detailing OptimumBank Holdings, Inc.'s unaudited financial results for the nine-month period ended September 30, 2025 - OptimumBank Holdings, Inc. released a presentation on **October 16, 2025**[4](index=4&type=chunk) - The presentation details unaudited results of operations and financial condition for the **nine-month period ended September 30, 2025**[4](index=4&type=chunk) [Item 7.01 Regulation FD Disclosure](index=2&type=section&id=Item%207.01%20Regulation%20FD%20Disclosure.) This item indicates that the financial presentation released on October 16, 2025, also serves as a Regulation FD disclosure - A presentation detailing unaudited results, released on **October 16, 2025**, serves as a Regulation FD disclosure[4](index=4&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits.) This item lists the exhibits accompanying the 8-K filing, including a presentation dated October 16, 2025, and the Cover Page Interactive Data File, along with a disclaimer regarding their filing status Exhibits List | Exhibit Number | Exhibit Name | Filed Herewith | | :--- | :--- | :--- | | 99.1 | Presentation dated October 16, 2025 | * | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | * | - The information in this report, including exhibits, is not considered 'filed' under Section 18 of the Securities Exchange Act of 1934 and is not subject to its liability, nor incorporated by reference into other filings unless expressly stated[5](index=5&type=chunk) [Signatures](index=3&type=section&id=SIGNATURES) This section confirms the due authorization and signing of the report on behalf of OptimumBank Holdings, Inc. by its Chairman of the Board of Directors - The report was signed on **October 16, 2025**[8](index=8&type=chunk) - Signed by **Moishe Gubin**, Chairman of the Board of Directors, on behalf of OptimumBank Holdings, Inc[8](index=8&type=chunk)

Group 1 - OptimumBank Holdings Inc. (NYSE: OPHC) has garnered significant interest from hedge funds, earning a place on the list of the 10 Best Bank Penny Stocks to Buy Right Now [1] - The company has selected IBN to lead its corporate communications strategy, aiming to enhance market visibility and strengthen brand presence [2][3] - IBN's extensive distribution network, which includes over 5,000 syndication outlets, is expected to amplify awareness of OptimumBank's relationship-based banking model, distinguishing it from larger institutions [3] Group 2 - OptimumBank provides consumer and commercial banking services, positioning itself as one of the Best Penny Stocks [4] - While there is potential for investment in OPHC, certain AI stocks are noted to offer greater upside potential and less downside risk [4]