OptimumBank(OPHC)

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OptimumBank Holdings Inc. (OPHC) Choses IBN to Lead Its Corporate Communications Strategy
Yahoo Finance· 2025-09-27 14:26
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]
OptimumBank Holdings, Inc., Issues Second Quarter Earnings Transcript and Clarification on Projected Asset Growth
Globenewswire· 2025-08-12 12:00
Core Viewpoint - OptimumBank Holdings, Inc. is on a strong growth trajectory, aiming to exceed $1.2 billion in total assets by the end of 2025 and projecting total assets to reach between $1.5 billion and $1.6 billion by the end of 2026, driven by a consistent annual growth rate of 25% to 30% [2][3][35] Financial Performance - The company reported net earnings of $3.6 million for Q2 2025, slightly lower than Q1 2025's $3.8 million but higher than $3.5 million in Q2 2024 [12] - Year-to-date net earnings for the first half of 2025 reached $7.4 million, compared to $5.8 million in the same period last year [12] - Net interest income increased to $10.2 million in Q2 2025, up from $9.4 million in Q1 2025 and $8.7 million in Q2 2024 [14] Asset Growth and Projections - Current total assets are nearing the $1 billion milestone, with a compound annual growth rate of 34.74% since 2021 [11][12] - The company aims to surpass $1.2 billion in total assets by the end of 2025 and projects reaching between $1.5 billion and $1.6 billion by the end of 2026 [2][3] Loan Portfolio and Asset Quality - The gross loan portfolio totaled $784 million, reflecting a slight decrease of $15 million quarter-over-quarter, primarily due to loan payoffs [16] - Non-accrual loans decreased to $3.2 million from $7.5 million in the prior quarter, indicating improved asset quality [16] - The company recorded a $19,000 net recovery on its allowance for loan losses, with total allowance standing at $9.34 million, representing 1.19% of the portfolio [16] Strategic Focus - The bank emphasizes maintaining strong relationships with borrowers and a disciplined approach to lending, which has resulted in minimal losses year-over-year [21][24] - OptimumBank is investing in technology and talent to enhance its operational efficiency and support its growth strategy [17][29] Market Position - OptimumBank focuses on traditional in-person banking services in South Florida, differentiating itself from larger financial institutions by offering lower fees and specialized expertise in real estate and commercial lending [4][5] - The bank's employee count has increased significantly from 38 in 2021 to 88 as of June 30, 2025, supporting its operational scale [14]
OptimumBank(OPHC) - 2025 Q2 - Quarterly Report
2025-08-08 20:24
[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for the reporting period [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements and detailed notes for the periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's financial position, including assets, liabilities, and equity, at specific dates **Condensed Consolidated Balance Sheets (Dollars in thousands):** | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change ($ thousands) | Change (%) | | :------------------------------------------ | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Total Assets | 999,127 | 932,933 | 66,194 | 7.1% | | Total Cash and Cash Equivalents | 181,754 | 93,630 | 88,124 | 94.1% | | Loans, net of allowance for credit losses | 774,548 | 794,985 | (20,437) | (2.6)% | | Total Deposits | 878,865 | 772,195 | 106,670 | 13.8% | | Total Stockholders' Equity | 111,348 | 103,184 | 8,164 | 7.9% | [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) This statement details the company's revenues, expenses, and net earnings over specific reporting periods **Condensed Consolidated Statements of Earnings (Dollars in thousands, except per share amounts):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Interest Income | 15,588 | 15,188 | 30,595 | 28,654 | | Total Interest Expense | 5,346 | 6,446 | 10,927 | 12,161 | | Net Interest Income | 10,242 | 8,742 | 19,668 | 16,493 | | Credit Loss Expense | 1,040 | 195 | 875 | 1,253 | | Net Earnings | 3,602 | 3,496 | 7,472 | 5,873 | | Net Earnings per share - Basic | 0.31 | 0.36 | 0.64 | 0.68 | | Net Earnings per share - Diluted | 0.29 | 0.34 | 0.61 | 0.66 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents net earnings and other comprehensive income components, reflecting total changes in equity from non-owner sources **Condensed Consolidated Statements of Comprehensive Income (Dollars in thousands):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net earnings | 3,602 | 3,496 | 7,472 | 5,873 | | Total other comprehensive (loss) income | (252) | 246 | 165 | (136) | | Comprehensive income | 3,350 | 3,742 | 7,637 | 5,737 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement outlines changes in equity accounts, including net earnings, stock issuance, and other comprehensive income, over the period - Total stockholders' equity increased to **$111,348 thousand** at June 30, 2025, from **$103,184 thousand** at December 31, 2024. This increase was primarily driven by **net earnings of $7,472 thousand**, proceeds from common stock sales of **$231 thousand**, and stock-based compensation of **$296 thousand** during the six months ended June 30, 2025[7](index=7&type=chunk)[14](index=14&type=chunk)[17](index=17&type=chunk) - The net change in unrealized gain on debt securities available for sale contributed **$166 thousand** to equity for the six months ended June 30, 2025, compared to a loss of **$137 thousand** in the prior year period[14](index=14&type=chunk)[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes cash inflows and outflows from operating, investing, and financing activities for the reporting period **Condensed Consolidated Statements of Cash Flows (Dollars in thousands):** | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | 9,292 | 5,640 | | Net cash provided by (used in) investing activities | 21,931 | (81,447) | | Net cash provided by financing activities | 56,901 | 103,200 | | Net increase in cash and cash equivalents | 88,124 | 27,393 | | Cash and cash equivalents at end of the period | 181,754 | 104,056 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [(1) General](index=11&type=section&id=%281%29%20General) This note describes the company's business operations and the basis of presentation for the financial statements - OptimumBank Holdings, Inc. is a one-bank holding company operating OptimumBank, a Florida-chartered community bank. The Bank provides community banking services in Broward and Miami-Dade Counties, Florida, and offers national deposit and electronic funds transfer services to merchant cash advance providers[22](index=22&type=chunk) - The company is evaluating the impact of ASU 2024-03, "Expense Disaggregation Disclosures," effective for fiscal years beginning after December 15, 2026[27](index=27&type=chunk) [(2) Debt Securities](index=12&type=section&id=%282%29%20Debt%20Securities) This note provides details on the company's debt securities, including their fair value and unrealized gains or losses **Debt Securities Available for Sale (Dollars in thousands, at June 30, 2025):** | Category | Amortized Cost | Gross Unrealized Losses | Fair Value | | :----------------------------- | :------------- | :---------------------- | :--------- | | SBA Pool Securities | 512 | (12) | 500 | | Collateralized mortgage obligations | 121 | (14) | 107 | | Taxable municipal securities | 16,635 | (4,654) | 11,981 | | Mortgage-backed securities | 12,360 | (2,570) | 9,790 | | **Total** | **29,628** | **(7,250)** | **22,378** | - Unrealized losses on debt securities are primarily due to interest-rate changes, and the Company does not intend to sell these investments, nor does it believe a credit loss expense is necessary[33](index=33&type=chunk)[34](index=34&type=chunk) - No sales of debt securities occurred during the six-month periods ended June 30, 2025, and 2024[30](index=30&type=chunk) [(3) Loans](index=13&type=section&id=%283%29%20Loans) This note details the composition of the loan portfolio, allowance for credit losses, and credit quality classifications **Loan Segments (Dollars in thousands):** | Loan Type | June 30, 2025 | December 31, 2024 | | :---------------------- | :-------------- | :---------------- | | Residential real estate | 66,602 | 74,064 | | Multi-family real estate | 68,321 | 64,001 | | Commercial real estate | 478,224 | 485,671 | | Land and construction | 61,126 | 77,295 | | Commercial | 50,351 | 52,810 | | Consumer | 59,940 | 50,399 | | **Total loans** | **784,564** | **804,240** | - The allowance for credit losses increased to **$9,338 thousand** (**1.19%** of loans outstanding) at June 30, 2025, from **$8,660 thousand** (**1.08%**) at December 31, 2024[36](index=36&type=chunk)[120](index=120&type=chunk) **Nonaccrual Loans (Dollars in thousands):** | Loan Type | June 30, 2025 | December 31, 2024 | | :---------------------- | :-------------- | :---------------- | | Commercial | 2,614 | 1,374 | | Consumer | 605 | 605 | | Land and construction | - | 5,597 | | **Total Nonaccrual** | **3,219** | **7,576** | - The Company defines internal loan grades as Pass, OLEM (Other Loan Especially Mentioned), Substandard, Doubtful, and Loss, reflecting increasing levels of credit risk[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [(4) Earnings Per Share](index=23&type=section&id=%284%29%20Earnings%20Per%20Share) This note presents the calculation of basic and diluted earnings per share, including the impact of convertible securities **Earnings Per Share (Dollars in thousands, except per share amounts):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $0.31 | $0.36 | $0.64 | $0.68 | | Diluted EPS | $0.29 | $0.34 | $0.61 | $0.66 | | Weighted Average Shares (Basic) | 11,751,082 | 9,639,503 | 11,727,974 | 8,627,904 | | Weighted Average Shares (Diluted) | 12,276,723 | 10,165,144 | 12,253,615 | 8,902,247 | - The dilutive effect on EPS is primarily due to **525,641** outstanding Series C Convertible Preferred shares, calculated using the if-converted method[64](index=64&type=chunk)[65](index=65&type=chunk) [(5) Stock-Based Compensation](index=23&type=section&id=%285%29%20Stock-Based%20Compensation) This note outlines the company's stock-based compensation plans, related expenses, and shares available for grant - The Company issued **62,171 shares** to employees for services, recording **$296,000** in compensation expense during the six months ended June 30, 2025[67](index=67&type=chunk) - As of June 30, 2025, **861,488 shares** remain available for grant under the 2018 Equity Incentive Plan[66](index=66&type=chunk) [(6) Fair Value Measurements](index=24&type=section&id=%286%29%20Fair%20Value%20Measurements) This note describes the methodologies and inputs used to determine the fair value of financial instruments **Fair Value Measurements Using Significant Other Observable Inputs (Level 2) for Debt Securities Available for Sale (Dollars in thousands, at June 30, 2025):** | Category | Fair Value | Level 2 Inputs | | :----------------------------- | :--------- | :------------- | | SBA Pool Securities | 500 | 500 | | Collateralized mortgage obligations | 107 | 107 | | Taxable municipal securities | 11,981 | 11,981 | | Mortgage-backed securities | 9,790 | 9,790 | | **Total** | **22,378** | **22,378** | [(7) Financial Instruments](index=24&type=section&id=%287%29%20Financial%20Instruments) This note provides information on the carrying amounts and fair values of various financial instruments **Fair Value of Financial Instruments (Dollars in thousands, at June 30, 2025):** | Financial Instrument | Carrying Amount | Fair Value | Level | | :-------------------------------- | :-------------- | :--------- | :---- | | Cash and cash equivalents | 181,754 | 181,754 | 1 | | Debt securities available for sale | 22,378 | 22,378 | 2 | | Debt securities held-to-maturity | 260 | 232 | 2 | | Loans | 774,548 | 691,943 | 3 | | Federal Home Loan Bank stock | 658 | 658 | 3 | | Accrued interest receivable | 3,138 | 3,138 | 3 | | Deposit liabilities | 878,865 | 866,058 | 3 | | Federal Home Loan Bank advances | - | - | 3 | [(8) Off-Balance Sheet Financial Instruments](index=25&type=section&id=%288%29%20Off-Balance%20Sheet%20Financial%20Instruments) This note details the company's commitments to extend credit and other off-balance sheet arrangements **Off-Balance Sheet Financial Instruments (Dollars in thousands, at June 30, 2025):** | Instrument | Contractual Amount | | :----------------------------- | :----------------- | | Commitments to extend credit | 13,450 | | Unused lines of credit | 52,777 | | Standby letters of credit | 3,779 | - The Company manages credit risk for off-balance sheet instruments using the same credit policies as for on-balance sheet instruments and generally holds collateral[74](index=74&type=chunk)[76](index=76&type=chunk) [(9) Regulatory Matters](index=25&type=section&id=%289%29%20Regulatory%20Matters) This note discusses the company's compliance with regulatory capital requirements and its capital adequacy status **Bank Capital Adequacy (Dollars in thousands, at June 30, 2025):** | Metric | Actual Amount | Actual % | To Be Well Capitalized (CBLR Framework) Amount | To Be Well Capitalized (CBLR Framework) % | | :----------------------------- | :------------ | :------- | :--------------------------------------------- | :---------------------------------------- | | Tier 1 Capital to Total Assets | 116,277 | 11.89% | 88,011 | 9.00% | - The Bank meets all capital adequacy requirements and is considered **well-capitalized** under regulatory guidelines[78](index=78&type=chunk) [(10) Series B and C Preferred Stock and ATM offering program](index=26&type=section&id=%2810%29%20Series%20B%20and%20C%20Preferred%20Stock%20and%20ATM%20offering%20program) This note describes the terms of preferred stock, conversion rights, and the at-the-market equity offering program - Series B Preferred Stock is convertible into **11,113,889 common shares**, subject to shareholder and regulatory approvals, and has preferential liquidation rights[80](index=80&type=chunk)[82](index=82&type=chunk) - **525,641 shares** of Series C Preferred Stock are outstanding, each convertible into one common share, subject to a **9.9%** ownership limit[83](index=83&type=chunk) - The ATM Program generated **$231,000** in net proceeds from the sale of **52,819 common shares** during the six months ended June 30, 2025, intended to facilitate growth[84](index=84&type=chunk) [(11) Contingencies](index=27&type=section&id=%2811%29%20Contingencies) This note addresses potential future obligations arising from legal claims or other uncertain events - Management believes no current legal claims will have a material effect on the Company's condensed consolidated financial statements[87](index=87&type=chunk) [(12) Borrowings](index=27&type=section&id=%2812%29%20Borrowings) This note details the company's borrowing arrangements, including FHLB advances and lines of credit - As of June 30, 2025, the Company had no outstanding FHLB advances, having repaid **$10 million** borrowed during the period[88](index=88&type=chunk) - The Company maintains **$244.3 million** in FHLB borrowing capacity, collateralized by **$458 million** in first mortgage loans, and has **$49.5 million** in lines of credit with correspondent banks[89](index=89&type=chunk)[90](index=90&type=chunk) - A line of credit with the Federal Reserve Bank is secured by investment securities with a fair value of **$1.7 million**[89](index=89&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, strategic initiatives, and liquidity for the reporting periods [Strategic Plan](index=28&type=section&id=Strategic%20Plan) This section outlines the company's strategic objectives for growth, efficiency, and market expansion - The strategic plan focuses on generating growth in earning assets, core transaction deposits, and treasury management fee income, while maintaining an efficient cost structure[94](index=94&type=chunk) - Key initiatives include expanding the South Florida footprint, exploring niche lines of business (Skilled Nursing Facilities, Merchant Cash Advance, SBA lending), investing in talent, and modernizing technology, including a core banking system upgrade in 2025[94](index=94&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) - The Company achieved Preferred Lender status under the SBA's PLP in Q1 2025, enhancing its SBA-guaranteed 7A loan offerings[97](index=97&type=chunk) [Financial Condition at June 30, 2025 and December 31, 2024](index=29&type=section&id=Financial%20Condition%20at%20June%2030%2C%202025%20and%20December%2031%2C%202024) This section analyzes the company's financial position, including assets, liabilities, and equity, at the specified dates [Capital Levels](index=29&type=section&id=Capital%20Levels) This subsection reviews the company's regulatory capital adequacy and overall capital strength - The Bank remained **well-capitalized** under regulatory guidelines as of June 30, 2025, and December 31, 2024[100](index=100&type=chunk) [Overview](index=29&type=section&id=Overview) This subsection provides a high-level summary of changes in total assets, deposits, and loans - Total assets increased by approximately **$66.2 million** to **$999.1 million** at June 30, 2025, primarily due to increases in cash and cash equivalents[102](index=102&type=chunk) - Deposits grew by approximately **$106.7 million** to **$878.9 million**, while net loans decreased by **$20.4 million**[102](index=102&type=chunk) **Selected Financial Information:** | Metric | Six Months Ended June 30, 2025 | Year Ended December 31, 2024 | | :-------------------------------- | :----------------------------- | :--------------------------- | | Average equity as a percentage of average assets | 11.2% | 9.3% | | Equity to total assets at end of period | 11.1% | 11.1% | | Return on average assets (annualized) | 1.6% | 1.4% | | Return on average equity (annualized) | 13.9% | 7.3% | | Noninterest expenses to average assets (annualized) | 2.5% | 2.1% | [Liquidity and Sources of Funds](index=29&type=section&id=Liquidity%20and%20Sources%20of%20Funds) This subsection discusses the company's liquidity position and its primary funding sources - Liquidity is primarily derived from customer deposits, loan repayments, earnings, and access to borrowing arrangements, including **$244.3 million** in FHLB capacity and **$49.5 million** in correspondent bank lines of credit[104](index=104&type=chunk)[105](index=105&type=chunk)[108](index=108&type=chunk) - Deposits increased by approximately **$106.7 million** during the six-month period ended June 30, 2025, providing funding for new loan originations and repayment of FHLB advances[106](index=106&type=chunk) [Off-Balance Sheet Arrangements](index=30&type=section&id=Off-Balance%20Sheet%20Arrangements) This subsection refers to disclosures regarding the company's off-balance sheet commitments and contingencies - Details on off-balance sheet arrangements are provided in Note 8 to the condensed consolidated financial statements[109](index=109&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including net earnings, interest income, and expenses, for the reporting periods [Comparison of the three-month periods ended June 30, 2025, and 2024](index=33&type=section&id=Comparison%20of%20the%20three-month%20periods%20ended%20June%2030%2C%202025%2C%20and%202024) This subsection compares key financial performance metrics for the three-month periods, highlighting changes and drivers - Net earnings increased by **3%** to **$3.6 million**, driven by a **17%** increase in net interest income and a **53%** increase in noninterest income[117](index=117&type=chunk) - Credit loss expense significantly increased by **433%** to **$1.0 million**, primarily due to estimated collectability on individually analyzed loans[117](index=117&type=chunk)[120](index=120&type=chunk) - Total noninterest expenses rose by **22%** to **$6.2 million**, mainly due to employee compensation and benefits, and professional fees[117](index=117&type=chunk)[122](index=122&type=chunk) - Interest expense decreased by **17%** to **$5.3 million**, attributed to reduced deposit rates and repayment of borrowings[117](index=117&type=chunk)[119](index=119&type=chunk) [Comparison of the six-month periods ended June 30, 2025, and 2024](index=34&type=section&id=Comparison%20of%20the%20six-month%20periods%20ended%20June%2030%2C%202025%2C%20and%202024) This subsection compares key financial performance metrics for the six-month periods, highlighting changes and drivers - Net earnings increased by **27%** to **$7.5 million**, primarily due to a **19%** increase in net interest income and a **26%** increase in noninterest income[124](index=124&type=chunk) - Credit loss expense decreased by **30%** to **$875,000**, reflecting improvements in loan portfolio quality and reassessment of collectability factors[124](index=124&type=chunk)[126](index=126&type=chunk) - Total noninterest expenses increased by **21%** to **$11.8 million**, mainly driven by employee compensation and benefits[124](index=124&type=chunk)[128](index=128&type=chunk) - Interest expense decreased by **10%** to **$10.9 million**, due to a reduction in deposit rates and changes in deposit composition[124](index=124&type=chunk)[125](index=125&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable to the current report, indicating no material market risk disclosures are required - Not applicable[129](index=129&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management assessed the effectiveness of disclosure controls and internal control over financial reporting as of June 30, 2025 - The Principal Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were **effective** as of June 30, 2025[130](index=130&type=chunk) - There have been no **significant changes** in the Company's internal control over financial reporting during the quarter ended June 30, 2025[131](index=131&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes disclosures on legal proceedings, risk factors, equity sales, defaults, and exhibits [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings that would significantly impact its financial statements - The Company is not currently a party to any **material legal proceedings**[134](index=134&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable to the current report, indicating no new material risk factors are disclosed - Not applicable[135](index=135&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section is not applicable to the current report, indicating no unregistered equity sales or proceeds to disclose - Not applicable[136](index=136&type=chunk) [Item 3. Defaults Upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section is not applicable to the current report, indicating no defaults on senior securities - Not applicable[137](index=137&type=chunk) [Item 4. Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the current report, as the company is not involved in mining operations - Not applicable[138](index=138&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) This section is not applicable to the current report, indicating no other material information to disclose - Not applicable[139](index=139&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including corporate documents and officer certifications - The exhibit index includes Amended and Restated Articles of Incorporation, Bylaws, Description of Securities, Form of Stock Certificate, Certifications of Principal Executive Officer and Chief Financial Officer (Rule 13a-14(a)/15d-14(a) and Section 32), and various Inline XBRL documents[147](index=147&type=chunk) [SIGNATURES](index=36&type=section&id=SIGNATURES) This section contains the official signatures of the company's principal executive and financial officers - The report was signed on August 8, 2025, by Timothy Terry, Principal Executive Officer, and Elliot Nunez, Chief Financial Officer[144](index=144&type=chunk) [EXHIBIT INDEX](index=37&type=section&id=EXHIBIT%20INDEX) This section provides a comprehensive list and description of all exhibits accompanying the report - A comprehensive list of exhibits filed with the Form 10-Q, including corporate documents, certifications, and XBRL files[147](index=147&type=chunk)
OptimumBank(OPHC) - 2025 Q2 - Quarterly Results
2025-08-06 20:06
[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) Q2 2025 net earnings were $3.60 million, slightly up YoY but down QoQ; six-month earnings rose significantly, diluted EPS declined Net Earnings and EPS Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | Change (6M YoY) | | :-------------------- | :------ | :------ | :------ | :------ | :------ | :-------------- | | Net Earnings (in millions) | $3.60 | $3.87 | $3.50 | $7.47 | $5.87 | +$1.60 million | | Basic EPS | $0.31 | $0.33 | $0.36 | $0.64 | $0.68 | -$0.04 | | Diluted EPS | $0.29 | $0.32 | $0.34 | $0.61 | $0.66 | -$0.05 | - The **$1.6 million increase** in six-month earnings (YoY) was primarily driven by a **$3.18 million improvement** in net interest income and **$0.63 million** in noninterest income, partially offset by increased noninterest expenses and income taxes[1](index=1&type=chunk) - Diluted earnings per share declined due to an average increase of **3,351,368 common and preferred shares**[1](index=1&type=chunk) [Key Financial Highlights (Q2 2025)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Q2%202025%29) The company achieved significant growth in total deposits and assets during Q2 2025, while gross loans decreased, and key performance ratios showed mixed trends Q2 2025 Key Financial Highlights | Metric | Q2 2025 Value | Q1 2025 Value | Change (QoQ) | | :-------------------------- | :------------ | :------------ | :----------- | | Net earnings | $3.60 million | $3.87 million | -$0.27 million | | Diluted EPS | $0.29 | $0.32 | -$0.03 | | ROAA | 1.48% | 1.62% | -0.14% | | Net interest margin | 4.32% | 4.06% | +0.26% | | Total assets | $999.13 million | $977.47 million | +$21.66 million | | Total deposits | $878.87 million | $852.93 million | +$25.93 million | | Gross loans | $784.56 million | $800.24 million | -$15.68 million | | Total stockholders' equity | $111.35 million | $108.00 million | +$3.35 million | - Total deposits grew by **$25.93 million** from March 31, 2025, to **$878.87 million** at June 30, 2025, reflecting an annualized growth rate of approximately **12.16%**. This also represents a growth of **$116.22 million** since Q2 2024[2](index=2&type=chunk)[3](index=3&type=chunk) - Total assets grew by **$21.66 million** to **$999.13 million** from March 31, 2025, an annualized increase of approximately **8.86%**[3](index=3&type=chunk) [Management Commentary & Strategic Outlook](index=2&type=section&id=Management%20Commentary%20%26%20Strategic%20Outlook) Management attributes strong performance to disciplined deposit pricing, targeted lending, and improved operating leverage, reinforcing balance sheet strength and growth - The company delivered **meaningful core earnings** through disciplined deposit pricing, targeted growth in consumer and multi-family lending, and improved operating leverage[4](index=4&type=chunk) - Overall **loan balances declined** due to the payoff of older, lower-yielding loans, but the company is well-positioned to redeploy capital into higher-return opportunities[4](index=4&type=chunk) - Average borrowings were significantly **reduced from $32.22 million in Q1 to $2.22 million in Q2**, reinforcing emphasis on core funding and balance sheet strength[8](index=8&type=chunk) - Capital levels remain strong, with a Tier 1 Capital to Total Assets of **11.89%**, well above regulatory minimums, supporting continued growth and earnings momentum[9](index=9&type=chunk) - The company continues to **invest in technology, talent, and targeted growth strategies** to reinforce its position as a dynamic and rapidly growing community bank in South Florida[10](index=10&type=chunk) [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) [Quarterly Financial Trends (Table)](index=3&type=section&id=Quarterly%20Financial%20Trends%20%28Table%29) This section presents a consolidated overview of the company's quarterly financial performance, including selected balance sheet data, earnings highlights, performance ratios, and other operating measures, showing trends from Q2 2024 to Q2 2025 Selected Quarterly Financial Trends (Q2 2024 - Q2 2025) | Metric (in thousands) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2Q25 change vs 1Q25 | 2Q25 change vs 2Q24 | | :-------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | :------------------ | :------------------ | | Total assets | $999,127 | $977,468 | $932,933 | $945,192 | $899,778 | $21,659 | $99,349 | | Total gross loans | $784,564 | $800,244 | $804,240 | $778,058 | $761,072 | $(15,680) | $23,492 | | Total deposits | $878,865 | $852,934 | $772,195 | $806,506 | $762,646 | $25,931 | $116,219 | | Net earnings | $3,602 | $3,870 | $3,949 | $3,302 | $3,496 | $(268) | $106 | | Diluted EPS | $0.29 | $0.32 | $0.36 | $0.32 | $0.34 | $(0.03) | $(0.05) | | Net interest income | $10,242 | $9,426 | $9,235 | $8,962 | $8,742 | $816 | $1,500 | | Net interest margin | 4.32% | 4.06% | 4.19% | 3.96% | 3.79% | 0.26% | 0.53% | | ROAA | 1.48% | 1.62% | 1.62% | 1.42% | 1.48% | (0.14)% | 0.00% | | ROAE | 13.10% | 14.66% | 16.19% | 14.74% | 16.65% | (1.56)% | (3.55)% | | Tangible book value per share | $9.48 | $9.19 | $8.87 | $9.26 | $8.99 | $0.28 | $0.49 | [Statement of Earnings](index=4&type=section&id=Statement%20of%20Earnings) Net earnings decreased QoQ due to credit loss expense but increased YoY, driven by strong net interest income and margin expansion [Net Earnings](index=4&type=section&id=Net%20Earnings) Net earnings for Q2 2025 were $3.60 million, a decrease from Q1 2025 primarily due to a credit loss expense, but an increase compared to Q2 2024 Net Earnings (in millions) | Period | Net Earnings | | :----- | :----------- | | 2Q25 | $3.60 | | 1Q25 | $3.87 | | 2Q24 | $3.50 | - The decrease from Q1 2025 was primarily due to a **credit loss expense of $1.04 million** in Q2 2025, compared to a **reversal of $0.2 million** in Q1 2025[12](index=12&type=chunk) - Compared to Q2 2024, net earnings **increased by approximately $0.1 million**[12](index=12&type=chunk) [Interest Income](index=4&type=section&id=Interest%20Income) Total interest income increased sequentially and year-over-year, primarily driven by higher average loan balances and improved loan yields Total Interest Income (in millions) | Period | Total Interest Income | | :----- | :-------------------- | | 2Q25 | $15.59 | | 1Q25 | $15.01 | | 2Q24 | $15.19 | - Sequential increase was driven by a **$6.33 million rise** in average loan balances and a higher loan yield (from **6.83% to 6.99%**)[13](index=13&type=chunk) - Year-over-year increase was primarily due to a **$49.45 million increase** in average loan balances and a rise in loan yield (from **6.87% to 6.99%**)[13](index=13&type=chunk) [Interest Expense](index=4&type=section&id=Interest%20Expense) Interest expense decreased both quarter-over-quarter and year-over-year, mainly due to a reduction in the cost of interest-bearing liabilities and a significant decrease in average borrowings Total Interest Expense (in millions) | Period | Total Interest Expense | | :----- | :--------------------- | | 2Q25 | $5.35 | | 1Q25 | $5.58 | | 2Q24 | $6.45 | - QoQ decrease was primarily due to a **10 basis points** decrease in the cost of interest-bearing liabilities (from **3.59% to 3.49%**) and repayment of borrowings, which declined from **$32.22 million to $2.22 million**[14](index=14&type=chunk) - YoY decrease was substantial, driven by a **57 basis points** decrease in the cost of interest-bearing liabilities (from **4.06% to 3.49%**) and a significant reduction in average borrowings outstanding[14](index=14&type=chunk) [Net Interest Income & Margin](index=5&type=section&id=Net%20Interest%20Income%20%26%20Margin) Net interest income and net interest margin both expanded significantly quarter-over-quarter and year-over-year, driven by improved yields on earning assets and lower funding costs Net Interest Income and Margin | Metric | 2Q25 | 1Q25 | 2Q24 | | :------------------ | :-------- | :-------- | :-------- | | Net Interest Income | $10.24 million | $9.43 million | $8.74 million | | Net Interest Margin | 4.32% | 4.06% | 3.79% | - QoQ increase in net interest income was driven by **higher yields on earning assets (loans up 11 bps)** and growth in the average loan portfolio, supported by a modest decrease in funding costs[15](index=15&type=chunk) - YoY increase in net interest income was attributable to a **$69.81 million rise** in average loan balances and a **12 basis points** increase in loan yields, further supported by lower funding costs[15](index=15&type=chunk) - Net interest margin expanded by **26 basis points QoQ (from 4.06% to 4.32%)** due to **improved yields on interest-earning assets (up from 6.46% to 6.57%)** and **decreased interest-bearing liabilities cost (down from 3.59% to 3.49%)**[16](index=16&type=chunk) - The cost of interest-bearing liabilities decreased to **3.49%** in Q2 2025, down from **3.59%** in Q1 2025 and **4.06%** in Q2 2024, reflecting effective balance sheet management and reduced reliance on higher-cost borrowings[17](index=17&type=chunk) [Credit Loss Expense](index=5&type=section&id=Credit%20Loss%20Expense) Credit loss expense increased significantly in Q2 2025 compared to the prior quarter (which saw a reversal) and the prior year, primarily due to a specific reserve on an individually analyzed commercial loan. Despite this, net recoveries were reported due to modest gross charge-offs and higher recoveries Credit Loss Expense (in millions) | Period | Credit Loss Expense (Reversal) | | :----- | :----------------------------- | | 2Q25 | $1.04 | | 1Q25 | $(0.20) | | 2Q24 | $0.20 | - The increase from Q1 2025 was primarily attributable to **estimated collectability on a loan individually analyzed**[18](index=18&type=chunk) - Gross charge-offs remained modest at **$72,000**, while recoveries totaled **$97,000**, resulting in **net recoveries of $25,000** during Q2 2025[18](index=18&type=chunk) - The **allowance for credit losses stood at $9.34 million**, or **1.19%** of total loans, as of June 30, 2025[18](index=18&type=chunk) [Noninterest Income](index=6&type=section&id=Noninterest%20Income) Noninterest income grew quarter-over-quarter and year-over-year, mainly driven by increased gains on sales of government guaranteed loans and loan prepayment fees, as well as higher service charges and fee-based revenue Total Noninterest Income (in millions) | Period | Total Noninterest Income | | :----- | :----------------------- | | 2Q25 | $1.83 | | 1Q25 | $1.23 | | 2Q24 | $1.20 | - The QoQ increase of **$0.6 million** was primarily driven by growth in other income, attributed to **higher gains on sales of government guaranteed loans and loan prepayment fees**[19](index=19&type=chunk) - The YoY increase of **$0.63 million** was largely due to **higher gains on sales of government guaranteed loans, higher service charges, and fee-based revenue**, supported by expanded deposit relationships and increased transaction volumes[19](index=19&type=chunk) [Noninterest Expenses](index=6&type=section&id=Noninterest%20Expenses) Noninterest expenses increased both quarter-over-quarter and year-over-year, primarily due to higher salaries and employee benefits reflecting staff growth, as well as investments in infrastructure and growth initiatives Total Noninterest Expenses (in millions) | Period | Total Noninterest Expenses | | :----- | :------------------------- | | 2Q25 | $6.18 | | 1Q25 | $5.63 | | 2Q24 | $5.08 | - The QoQ increase of **$0.55 million** was primarily due to higher salaries and employee benefits, which **increased by $0.36 million to $3.74 million**, reflecting staff growth and seasonal compensation[20](index=20&type=chunk) - The YoY increase of **$1.10 million** was driven by **staffing-related trends**, as well as increases in occupancy, data processing, and other operating expenses, as the Company **invested in infrastructure and growth initiatives**[20](index=20&type=chunk) [Income Tax Expense](index=6&type=section&id=Income%20Tax%20Expense) Income tax expense slightly decreased quarter-over-quarter but increased year-over-year, with the effective tax rate seeing a minor increase due to shifts in taxable income mix and fewer discrete tax benefits Income Tax Expense (in millions) | Period | Income Tax Expense | | :----- | :----------------- | | 2Q25 | $1.25 | | 1Q25 | $1.33 | | 2Q24 | $1.17 | Effective Tax Rate | Period | Effective Tax Rate | | :----- | :----------------- | | 2Q25 | **25.8%** | | 1Q25 | **25.5%** | | 2Q24 | **25.0%** | - The slight increase in the effective tax rate was attributable to **shifts in the mix of taxable income and fewer discrete tax benefits** during the quarter[21](index=21&type=chunk) [Balance Sheet Analysis](index=6&type=section&id=Balance%20Sheet%20Analysis) Total assets and deposits grew, approaching $1 billion, driven by interest-bearing deposits; gross loans decreased QoQ but increased YoY [Total Assets](index=6&type=section&id=Total%20Assets) Total assets grew quarter-over-quarter and year-over-year, primarily driven by a significant rise in interest-bearing deposits with banks, partially offset by a decline in net loans Total Assets (in millions) | Date | Total Assets | | :----------- | :----------- | | June 30, 2025 | $999.13 | | March 31, 2025 | $977.47 | | June 30, 2024 | $899.78 | - The **quarter-over-quarter growth of $21.66 million** was primarily attributable to a **$43.01 million rise** in interest-bearing deposits with banks, partially offset by a **$16.68 million decline** in net loans[22](index=22&type=chunk) [Cash and Cash Equivalents](index=7&type=section&id=Cash%20and%20Cash%20Equivalents) Cash and cash equivalents increased significantly both quarter-over-quarter and year-over-year, primarily driven by growth in interest-bearing deposits with banks Cash and Cash Equivalents (in millions) | Date | Cash and Cash Equivalents | | :----------- | :------------------------ | | June 30, 2025 | $181.75 | | March 31, 2025 | $143.46 | | June 30, 2024 | $104.06 | - The increase was primarily driven by the **growth in interest-bearing deposits with banks**[23](index=23&type=chunk) [Investment Securities](index=7&type=section&id=Investment%20Securities) Investment securities saw a slight decrease quarter-over-quarter and year-over-year, with no sales of debt securities reported during these periods Investment Securities (in millions) | Date | Investment Securities | | :----------- | :-------------------- | | June 30, 2025 | $22.64 | | March 31, 2025 | $23.31 | | June 30, 2024 | $23.86 | - Investment securities **decreased by $0.67 million QoQ and $1.22 million YoY**[24](index=24&type=chunk) - **No sales of debt securities** were reported during these periods[24](index=24&type=chunk) [Total Gross Loans](index=7&type=section&id=Total%20Gross%20Loans) Total gross loans decreased quarter-over-quarter due to payoffs and the resolution of a nonperforming loan, but increased year-over-year, reflecting overall growth over the past year. Loan portfolio dynamics showed expansion in consumer and multi-family segments, offset by declines in land and construction and residential real estate loans Total Gross Loans (in millions) | Date | Total Gross Loans | | :----------- | :---------------- | | June 30, 2025 | $784.56 | | March 31, 2025 | $800.24 | | June 30, 2024 | $761.07 | - Gross loans **decreased by $15.68 million QoQ**, primarily due to larger payoffs and the resolution of a **$5.6 million nonperforming loan**[7](index=7&type=chunk)[25](index=25&type=chunk) - **Consumer and multi-family segments expanded by $7.99 million and $4.71 million**, respectively, offset by **declines in land and construction loans ($19.21 million) and residential real estate loans ($5.04 million)**[7](index=7&type=chunk) - Compared to June 30, 2024, the gross loan portfolio **increased by $23.49 million**[25](index=25&type=chunk) [Allowance for Credit Losses](index=7&type=section&id=Allowance%20for%20Credit%20Losses) The Allowance for Credit Losses (ACL) increased quarter-over-quarter and year-over-year, primarily driven by a credit loss expense and updates to forward-looking loss assumptions, despite net recoveries from charge-offs and recoveries Allowance for Credit Losses (in millions) | Date | ACL | % of Total Loans | | :----------- | :------ | :--------------- | | June 30, 2025 | $9.34 | 1.19% | | March 31, 2025 | $8.27 | 1.03% | | June 30, 2024 | $8.21 | - | - The QoQ increase of **$1.07 million** was primarily driven by a **credit loss expense of $1.04 million** during Q2 2025, reflecting estimated collectability on an individually analyzed loan and updates to forward-looking loss assumptions[26](index=26&type=chunk) - **Net recoveries of $25,000** (gross charge-offs of $72,000 and recoveries of $97,000) also contributed to the increase[26](index=26&type=chunk) [Nonaccrual Loans & Nonperforming Assets](index=7&type=section&id=Nonaccrual%20Loans%20%26%20Nonperforming%20Assets) Nonaccrual loans decreased significantly quarter-over-quarter due to the resolution of a nonaccrual land and construction loan, indicating strong asset quality. The company reported no loans 90 days or more past due and still accruing interest, and no real estate owned (OREO) Nonaccrual Loans (in millions) | Date | Nonaccrual Loans | | :----------- | :--------------- | | June 30, 2025 | $3.22 | | March 31, 2025 | $7.51 | | June 30, 2024 | $2.78 | - The decrease from the prior quarter was primarily due to the **resolution of a nonaccrual land and construction loan**[27](index=27&type=chunk) - The company reported **no loans 90 days or more past due** and still accruing interest, and **no real estate owned (OREO)** outstanding[27](index=27&type=chunk)[28](index=28&type=chunk) [Total Deposits](index=8&type=section&id=Total%20Deposits) Total deposits increased quarter-over-quarter and year-over-year, driven by increases in noninterest-bearing demand deposits and savings, NOW, and money-market deposits. Noninterest-bearing deposits represent a significant portion of the diverse and stable funding base Total Deposits (in millions) | Date | Total Deposits | | :----------- | :------------- | | June 30, 2025 | $878.87 | | March 31, 2025 | $852.93 | | June 30, 2024 | $762.65 | - The QoQ increase was attributable to increases in **noninterest-bearing demand deposits (from $235.78 million to $259.82 million)** and savings, NOW, and money-market deposits, partially offset by a decrease in time deposits[29](index=29&type=chunk) - Noninterest-bearing deposits accounted for **29.56%** of total deposits at June 30, 2025[29](index=29&type=chunk) [Accumulated Other Comprehensive Loss (AOCL)](index=8&type=section&id=Accumulated%20Other%20Comprehensive%20Loss%20%28AOCL%29) Accumulated other comprehensive loss (AOCL) widened quarter-over-quarter due to adverse movements in long-term interest rates impacting available-for-sale securities, but slightly narrowed year-over-year. These unrealized losses have no impact on reported earnings Accumulated Other Comprehensive Loss (in millions) | Date | AOCL | | :----------- | :------- | | June 30, 2025 | $(5.41) | | March 31, 2025 | $(5.15) | | June 30, 2024 | $(5.45) | - The unrealized loss in AOCL **widened by $(0.26) million QoQ**, primarily due to **adverse movements in long-term interest rates** impacting the fair value of available-for-sale securities[30](index=30&type=chunk) - Year-over-year, AOCL **slightly narrowed by $0.04 million**[30](index=30&type=chunk) [Shareholders' Equity & Tangible Book Value](index=8&type=section&id=Shareholders%27%20Equity%20%26%20Tangible%20Book%20Value) Shareholders' equity increased quarter-over-quarter and significantly year-over-year, primarily driven by net earnings. Both non-diluted and fully diluted tangible book value per share also increased, reflecting strong quarterly earnings performance and overall capital strength, with the Bank remaining well capitalized Shareholders' Equity and Tangible Book Value | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Shareholders' Equity (in millions) | $111.35 | $108.00 | $86.97 | | Non-diluted TBV per share | $9.48 | $9.19 | $8.99 | | Fully diluted TBV per share | $4.76 | $4.62 | $4.08 | - The quarter increase in shareholders' equity was principally attributable to **Q2 net earnings of $3.60 million**, partially offset by an increase in accumulated other comprehensive loss and a slight decrease in additional paid-in capital[31](index=31&type=chunk) - The increase in both non-diluted and fully diluted tangible book value per share reflects **strong quarterly earnings performance and overall capital strength**[35](index=35&type=chunk) - The Bank remains well capitalized with a Tier 1 Capital to Total Assets ratio of **11.89%**, well above regulatory minimums[35](index=35&type=chunk) [Non-GAAP Financial Measures](index=16&type=section&id=Non-GAAP%20Financial%20Measures) [Explanation of Non-GAAP Measures](index=16&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company uses non-GAAP financial measures to provide useful supplemental information and a clearer understanding of its performance, believing these enhance investors' understanding and facilitate comparisons with other financial institutions. It acknowledges the limitations and provides reconciliations to GAAP measures - Management uses **non-GAAP financial measures** to provide useful supplemental information and a clearer understanding of the Company's performance[52](index=52&type=chunk) - These measures are **useful in understanding performance trends and facilitating comparisons** with other financial institutions[52](index=52&type=chunk) - The Company provides **reconciliations between GAAP and these non-GAAP measures**, emphasizing that these disclosures should not be considered an alternative to GAAP[52](index=52&type=chunk) [Non-GAAP Reconciliations](index=17&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations for key non-GAAP measures, specifically Pre-tax, Pre-provision earnings and Tangible Book Value per Common Share and Per Fully Diluted Share, detailing their calculation from GAAP figures Pre-tax, Pre-provision earnings (Non-GAAP) (in thousands) | Metric | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Net Earnings (GAAP) | $3,602 | $3,870 | $3,949 | $3,302 | $3,496 | | Plus: Income Tax Expense | $1,253 | $1,326 | $1,359 | $1,133 | $1,168 | | Plus: Credit Loss Expense (Reversal) | $1,040 | $(165) | $613 | $357 | $195 | | Pre-tax, Pre-provision earnings (Non-GAAP) | $5,895 | $5,031 | $5,921 | $4,792 | $4,859 | Tangible Book Value per Common Share and Per Fully Diluted Share (Non-GAAP) | Metric (in thousands, except per share data) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | | :------------------------------------------- | :-------- | :-------- | :--------- | :-------- | :-------- | | Total Stockholders' (GAAP) and Tangible Common Equity | $111,348 | $108,003 | $103,184 | $92,695 | $86,971 | | Common Shares Outstanding | 11,751 | 11,751 | 11,636 | 10,007 | 9,677 | | Effect of Conversion of Series B Preferred Shares | 11,114 | 11,114 | 11,114 | 11,114 | 11,114 | | Effect of Conversion of Series C Preferred Shares | 526 | 526 | 526 | 526 | 526 | | Total Fully Diluted Shares (Non-GAAP) | 23,391 | 23,391 | 23,276 | 21,646 | 21,317 | | Tangible Book Value per Common Share | $9.48 | $9.19 | $8.87 | $9.26 | $8.99 | | Tangible Book Value per Fully Diluted Share (Non-GAAP) | $4.76 | $4.62 | $4.43 | $4.28 | $4.08 | [FORWARD-LOOKING STATEMENTS](index=9&type=section&id=FORWARD-LOOKING%20STATEMENTS) Forward-looking statements are subject to significant risks and uncertainties, and actual results may differ materially, with no obligation to update - Forward-looking statements are based on current beliefs and expectations and are subject to **significant risks and uncertainties**, many of which are beyond the company's control[36](index=36&type=chunk) - Actual results, performance, or achievements may be **materially different** from those expressed or implied by forward-looking statements[36](index=36&type=chunk) - The company undertakes **no obligation to update or revise** any forward-looking statements for events or circumstances that arise after the statement is made, except as required by law[36](index=36&type=chunk) [Investor Relations Contact](index=9&type=section&id=Investor%20Relations%20Contact) This section provides contact information for investor and corporate relations inquiries - Contact for Investor Relations & Corporate Relations: **Seth Denison**, Telephone: **(305) 401-4140**, Email: **SDenison@OptimumBank.com**[37](index=37&type=chunk) [Consolidated Financial Statements (Tables)](index=9&type=section&id=Consolidated%20Financial%20Statements%20%28Tables%29) [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) This table presents the consolidated balance sheet of OptimumBank Holdings, Inc. for various quarterly periods, detailing assets, liabilities, and stockholders' equity, along with quarter-over-quarter and year-over-year changes Consolidated Balance Sheet (Dollars in thousands) | Metric (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total assets | $999,127 | $977,468 | $932,933 | $945,192 | $899,778 | | Total deposits | $878,865 | $852,934 | $772,195 | $806,506 | $762,646 | | Total liabilities | $887,779 | $869,465 | $829,749 | $852,497 | $812,807 | | Total stockholders' equity | $111,348 | $108,003 | $103,184 | $92,695 | $86,971 | [Consolidated Statements of Earnings - Quarterly](index=11&type=section&id=Consolidated%20Statements%20of%20Earnings%20-%20Quarterly) This table provides a detailed breakdown of the company's consolidated statements of earnings on a quarterly basis, including interest income and expense, noninterest income and expense, and net earnings per share, with quarter-over-quarter and year-over-year changes Consolidated Statements of Earnings - Quarterly (Dollars in thousands, except per share amounts) | Metric (in thousands) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | | :-------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Total interest income | $15,588 | $15,007 | $15,642 | $15,334 | $15,188 | | Total interest expense | $5,346 | $5,581 | $6,407 | $6,372 | $6,446 | | Net interest income | $10,242 | $9,426 | $9,235 | $8,962 | $8,742 | | Credit loss expense (reversal) | $1,040 | $(165) | $613 | $357 | $195 | | Total noninterest income | $1,834 | $1,231 | $1,068 | $1,115 | $1,201 | | Total noninterest expenses | $6,181 | $5,626 | $4,382 | $5,285 | $5,084 | | Net earnings | $3,602 | $3,870 | $3,949 | $3,302 | $3,496 | | Net earnings per share - Basic | $0.31 | $0.33 | $0.38 | $0.34 | $0.36 | | Net earnings per share - Diluted | $0.29 | $0.32 | $0.36 | $0.32 | $0.34 | [Consolidated Statements of Earnings - Year-to-Date](index=12&type=section&id=Consolidated%20Statements%20of%20Earnings%20-%20Year-to-Date) This table presents the consolidated statements of earnings for the six months ended June 30, 2025, and 2024, highlighting year-over-year changes in key income and expense categories Consolidated Statements of Earnings - Year-to-Date (Dollars in thousands, except per share amounts) | Metric (in thousands) | 6M 2025 | 6M 2024 | Change | | :-------------------- | :-------- | :-------- | :-------- | | Total interest income | $30,595 | $28,654 | $1,941 | | Total interest expense | $10,927 | $12,161 | $(1,234) | | Net interest income | $19,668 | $16,493 | $3,175 | | Credit loss expense | $875 | $1,253 | $(378) | | Total noninterest income | $3,065 | $2,440 | $625 | | Total noninterest expenses | $11,807 | $9,792 | $2,015 | | Net earnings | $7,472 | $5,873 | $1,599 | | Net earnings per share - Basic | $0.64 | $0.68 | $(0.04) | | Net earnings per share - Diluted | $0.61 | $0.66 | $(0.05) | [Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (QTD)](index=13&type=section&id=Consolidated%20Average%20Balances%2C%20Interest%20Income%20and%20Expenses%2C%20Yields%20and%20Rates%20%28QTD%29) This table provides a quarterly analysis of average balances, interest income and expenses, and corresponding yields and rates for interest-earning assets and interest-bearing liabilities, along with net interest income, interest-rate spread, and net interest margin Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (QTD) (Dollars in thousands) | Metric | 2Q25 Average Balance | 2Q25 Interest/Dividends | 2Q25 Yield/Rate | 1Q25 Average Balance | 1Q25 Interest/Dividends | 1Q25 Yield/Rate | 2Q24 Average Balance | 2Q24 Interest/Dividends | 2Q24 Yield/Rate | | :-------------------------- | :------------------- | :---------------------- | :-------------- | :------------------- | :---------------------- | :-------------- | :------------------- | :---------------------- | :-------------- | | Loans | $803,171 | $14,026 | 6.99% | $796,846 | $13,601 | 6.83% | $753,726 | $12,948 | 6.87% | | Total interest-earning assets | $949,109 | $15,588 | 6.57% | $929,686 | $15,007 | 6.46% | $923,822 | $15,188 | 6.58% | | Total interest-bearing liabilities | $612,794 | $5,346 | 3.49% | $621,350 | $5,581 | 3.59% | $634,535 | $6,446 | 4.06% | | Net interest income | - | $10,242 | - | - | $9,426 | - | - | $8,742 | - | | Interest-rate spread | - | - | 3.08% | - | - | 2.87% | - | - | 2.52% | | Net interest margin | - | - | 4.32% | - | - | 4.06% | - | - | 3.79% | [Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (YTD)](index=15&type=section&id=Consolidated%20Average%20Balances%2C%20Interest%20Income%20and%20Expenses%2C%20Yields%20and%20Rates%20%28YTD%29) This table provides a year-to-date analysis of average balances, interest income and expenses, and corresponding yields and rates for interest-earning assets and interest-bearing liabilities, along with net interest income, interest-rate spread, and net interest margin Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (YTD) (Dollars in thousands) | Metric | 6M 2025 Average Balance | 6M 2025 Interest/Dividends | 6M 2025 Yield/Rate | 6M 2024 Average Balance | 6M 2024 Interest/Dividends | 6M 2024 Yield/Rate | | :-------------------------- | :---------------------- | :------------------------- | :----------------- | :---------------------- | :------------------------- | :----------------- | | Loans | $800,008 | $27,627 | 6.91% | $730,202 | $24,784 | 6.79% | | Total interest-earning assets | $939,398 | $30,595 | 6.51% | $880,530 | $28,654 | 6.51% | | Total interest-bearing liabilities | $617,073 | $10,927 | 3.54% | $606,659 | $12,161 | 4.01% | | Net interest income | - | $19,668 | - | - | $16,493 | - | | Interest-rate spread | - | - | 2.97% | - | - | 2.50% | | Net interest margin | - | - | 4.19% | - | - | 3.75% | [Loans Segments Analysis](index=16&type=section&id=Loans%20Segments%20Analysis) This table provides a detailed breakdown of the loan portfolio by segment, showing balances and changes across various quarterly periods, highlighting shifts in lending focus Loans Segments Analysis (Dollars in thousands) | Loan Segment | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Residential real estate | $66,602 | $71,638 | $74,064 | $75,877 | $76,721 | | Multi-family real estate | $68,321 | $63,615 | $64,001 | $62,280 | $63,432 | | Commercial real estate | $478,224 | $482,113 | $485,671 | $479,038 | $485,439 | | Land and construction | $61,126 | $80,338 | $77,295 | $72,729 | $64,862 | | Commercial | $50,351 | $50,585 | $52,810 | $39,957 | $36,133 | | Consumer | $59,940 | $51,955 | $50,399 | $48,177 | $34,485 | | Total loans | $784,564 | $800,244 | $804,240 | $778,058 | $761,072 | [Allowance for Credit Losses Analysis](index=16&type=section&id=Allowance%20for%20Credit%20Losses%20Analysis) This table details the components and changes in the Allowance for Credit Losses (ACL) over several quarters, including beginning balances, credit loss expense (reversal), charge-offs, and recoveries, leading to the ending balance Allowance for Credit Losses Analysis (Dollars in thousands) | Metric (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Beginning balance | $8,270 | $8,660 | $8,337 | $8,208 | $8,281 | | Credit loss expense (reversal) - funded | $1,043 | $(144) | $569 | $409 | $263 | | Charge-offs | $(72) | $(325) | $(336) | $(366) | $(440) | | Recoveries | $97 | $79 | $90 | $86 | $104 | | Ending balance | $9,338 | $8,270 | $8,660 | $8,337 | $8,208 |
OptimumBank Holdings, Inc., to Announce Second Quarter 2025 Results and Host Earnings Webcast on August 7, 2025
Newsfile· 2025-08-04 13:00
Core Viewpoint - OptimumBank Holdings, Inc. will announce its financial results for the second quarter of 2025 on August 7, 2025, and will host a conference call and live webcast to discuss these results and provide a business update [1]. Company Overview - OptimumBank was founded in 2000 in Fort 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 continue capitalizing on this momentum [3]. Financial Solutions - OptimumBank offers a range of business and financial solutions, including Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking [4].
OptimumBank Holdings, Inc. Financial Performance for the First Quarter of 2025
Newsfile· 2025-05-13 12:55
Core Insights - OptimumBank Holdings, Inc. reported a net income of $3.9 million for Q1 2025, reflecting a 63% increase year-over-year, driven by stronger net interest income and credit loss reversals [1][5][6] Financial Performance - Net interest income for Q1 2025 reached $9.43 million, a 21.6% increase from $7.75 million in Q1 2024, with a net interest margin improvement to 4.06% from 3.70% [7][9] - Noninterest income remained stable at $1.23 million, slightly down from $1.24 million in the same quarter last year [10] - Total noninterest expenses increased by 19.5% to $5.63 million, primarily due to investments in personnel and infrastructure [13][16] Asset and Deposit Growth - Gross loans increased by 5.9% year-over-year to $800.2 million, while total deposits grew by 6.8% to $852.9 million [17][20] - Noninterest-bearing demand deposits rose by 8.2% to $235.8 million, while time deposits surged by 24.9% to $327.4 million [20] Capital Position - The Bank's Tier 1 capital ratio improved to 11.71% as of March 31, 2025, up from 10.20% a year earlier, indicating a strengthened capital base [3][22] - Tier 1 capital totaled $112.3 million, reflecting a growth of $24 million from the previous year [22] Recent Developments - The Bank successfully resolved a non-performing loan, reducing non-performing assets by approximately $5.6 million, which was nearly 75% of the total NPA balance as of March 31, 2025 [4]
OptimumBank(OPHC) - 2025 Q1 - Quarterly Report
2025-05-12 16:34
Financial Performance - Return on average assets increased to 1.6% for the three months ended March 31, 2025, compared to 1.4% for the previous period[99] - Return on average equity increased to 14.7% for the three months ended March 31, 2025, compared to 7.3% for the previous period[99] - Net interest income for the three months ended March 31, 2025, was $9,426 thousand, compared to $7,751 thousand for the same period in 2024[107] - Total interest income increased by $1.5 million to $15 million for the three months ended March 31, 2025, representing an 11% increase compared to the same period in 2024[110][111] - Net interest income rose by $1.7 million to $9.4 million, marking a 22% increase year-over-year[110] - Net earnings for the three months ended March 31, 2025, were $3.9 million, or $0.33 per basic share, reflecting a 63% increase from $2.4 million, or $0.31 per basic share, in 2024[110] - Net earnings before income taxes increased by $2.0 million to $5.2 million, a 61% increase compared to the prior year[110] - Income taxes for the three months ended March 31, 2025, were $1.3 million, up 57% from $847,000 in the same period of 2024[110] Asset and Liability Management - Total assets increased by approximately $44.6 million to $977.5 million at March 31, 2025, from $932.9 million at December 31, 2024[98] - Deposits grew by approximately $80.7 million to $852.9 million at March 31, 2025, from $772.2 million at December 31, 2024[98] - Net loans decreased by $3.7 million to $791.2 million at March 31, 2025, from $794.9 million at December 31, 2024[98] - The Company had outstanding borrowings of $10 million against its $233.2 million in established borrowing capacity with the FHLB as of March 31, 2025[104] - Total stockholders' equity increased by approximately $4.8 million to $108 million at March 31, 2025, from $103.2 million at December 31, 2024[98] Credit Quality - The allowance for credit losses totaled $8.3 million, or 1.03% of loans outstanding, as of March 31, 2025, down from $8.7 million, or 1.08%, at the end of 2024[113] - The company recorded a credit loss reversal of $0.2 million for the three months ended March 31, 2025, compared to a credit loss expense of $1.1 million in the same period of 2024, indicating a significant improvement in credit quality[113] Noninterest Income and Expenses - Total noninterest expenses increased to $5.6 million, a 19% rise from $4.7 million in the same period last year, primarily due to higher employee compensation and professional fees[116] - Total noninterest income remained stable at $1.2 million for both periods, indicating consistent performance in wire transfer and ACH fees[115] Management and Controls - The company’s management confirmed the effectiveness of disclosure controls and procedures as of the end of the reporting period[118] Loan Portfolio - The SBA loan portfolio totaled $9.9 million, or 1.2% of total loans, up from $9 million, or 1.1% of loans at December 31, 2024[93] Interest Rate Metrics - The interest rate spread increased to 2.87% for the three months ended March 31, 2025, compared to 2.48% for the previous period[109]
OptimumBank Celebrates Record Year and Bold Outlook at 2025 Annual Shareholder Meeting
Newsfile· 2025-05-02 12:55
Core Insights - OptimumBank Holdings, Inc. reported its strongest performance in nearly 25 years during its Annual Shareholder Meeting, aiming to surpass $1 billion in assets [1][2] - The bank's financial highlights for 2024 include total assets rising 18% to nearly $933 million, equity increasing 47% to $103 million, and net earnings reaching $13.1 million [7] Financial Performance - Return on equity (ROE) stands at 15.28%, with core ROE exceeding 23% [3] - Net interest margin hit a 10-year high of 3.83% [7] - Loans surpassed $800 million, driven by a six-fold increase in SBA production [7] Employee and Shareholder Engagement - A majority of OptimumBank employees are also shareholders, indicating strong internal alignment and motivation [4] - The bank's stock is currently trading below book value, with management expressing confidence that the market will recognize its high performance [5] Strategic Outlook - The bank is focused on anti-dilution strategies and plans to raise capital only above book value, with potential capital raises of $10 to $30 million in 2025 [5][8] - The bank is selective in its M&A approach, seeking partners that align with its culture and contribute long-term [8] Technology and Innovation - A new open-architecture, API-capable core banking platform is set to launch in October, promising a significantly improved customer experience [9] - The bank is also upgrading its website and rolling out new front-end features [9] Business Focus - OptimumBank specializes in traditional banking services, including business banking, business lending, SBA lending solutions, treasury management, and personal banking [11]
OptimumBank Holdings, Inc. Reports Best Year in Company History; To Present Shareholder Deck Highlighting 23%+ Core ROAE at April 29, 2025 Annual Meeting
Newsfile· 2025-04-28 12:55
Core Insights - OptimumBank Holdings, Inc. reported its best year in company history, achieving a Core Return on Average Equity (ROAE) exceeding 23% for fiscal year 2024 [1] - The company will present updated performance data through Q1 2025 during its Annual Shareholder Meeting and Investor Day on April 29, 2025 [1][2] Company Overview - Founded in 2000 in Ft. Lauderdale, Florida, OptimumBank focuses on traditional in-person banking services for businesses and consumers in South Florida [3] - The bank offers a trusted alternative to larger financial institutions, emphasizing expertise in real estate and commercial lending [3] - OptimumBank has experienced significant growth over the past decade and aims to continue this momentum in the future [3] Financial Solutions - The bank's business and financial solutions include Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking [4]
OptimumBank Holdings, Inc. to Hold Annual Shareholder Meeting and Investor Day, on April 29, 2025
Newsfile· 2025-03-31 12:55
Company Overview - OptimumBank Holdings, Inc. was founded in 2000 and is based in Ft. Lauderdale, Florida, focusing on traditional in-person banking for businesses and consumers in South Florida [2] - 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 [2] - The company has experienced significant growth in the past decade and plans to continue capitalizing on this momentum in the future [2] Financial Solutions - OptimumBank offers a range of business and financial solutions, including Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking [3] Upcoming Events - The company will hold its Annual Shareholder Meeting and Investor Day on April 29, 2025, at its headquarters and virtually, starting at 10:00 am ET [1] - Shareholders of record as of March 21, 2025, will be eligible to vote at the meeting [1] - Interested participants can register for the event through a provided link or by contacting the company directly [1]