Fort Lauderdale, Florida--(Newsfile Corp. - March 23, 2026) -  OptimumBank (NYSE American: OPHC) ("Bank") today announced that it has been named to the S&P Global Market Intelligence 2025 Top 100 Best-Performing U.S. Community Banks under $3 billion in assets, ranking #49 nationwide and placing the Bank among the top 1.4% of its 3,465 eligible peers.OptimumBank was the only Florida-based institution included in the Top 100, further highlighting its differentiated performance within one of the most competit ...

Loan Performance and Credit Quality - As of December 31, 2025, the Bank's nonperforming loans were approximately $2.9 million, or 0.3% of the gross loan portfolio[101] - The total loans outstanding increased to $958.8 million in 2025, up from $804.2 million in 2024, representing a growth of 19.2%[102] - The allowance for credit losses increased to $10.3 million in 2025, up from $8.7 million in 2024, reflecting a rise of 18.5%[104] - The allowance for credit losses represented 1.07% of total loans outstanding as of December 31, 2025, compared to 1.08% in 2024[104] - Credit loss expense for 2025 was $2.0 million, compared to $2.2 million in 2024, indicating a decrease of 9.1%[103] - The average recorded investment in collateral-dependent loans was $3.8 million in 2025, significantly higher than $2.1 million in 2024[107] - The Bank actively monitors local market conditions in Florida to manage risks associated with nonperforming assets[108] Loan Composition and Business Focus - The Bank's primary business is making business loans, with commercial real estate loans comprising 69.6% of the total loan portfolio as of December 31, 2025[102] - The total loans amount to $958,793,000, with residential real estate loans comprising $74,018,000[123] - The Company’s total loan maturities by type at December 31, 2025, amounted to $958.793 million, with commercial real estate loans comprising the largest portion at $666.508 million[125] - Commitments to extend credit totaled $7.775 million, with unused lines of credit at $72.940 million and standby letters of credit at $3.779 million as of December 31, 2025[129] Deposits and Funding - The Bank's liquidity position is supported by a deposit base, with outstanding borrowings of $50.0 million from the Federal Home Loan Bank of Atlanta as of December 31, 2025[112] - Total deposits increased by $159.6 million in 2025, with noninterest-bearing demand deposits rising by $54.6 million and time deposits increasing by $76.4 million[131] - The distribution of deposits by product showed noninterest-bearing demand deposits at $266.520 million, representing 28.6% of total deposits[132] - Brokered deposits comprised 9% of total deposits at December 31, 2025, down from 19% in 2024, indicating a shift in funding strategy[133] - Time deposits of $250,000 or more totaled $95.011 million at December 31, 2025, an increase from $74.780 million in 2024[134] Interest Rate Risk and Sensitivity - The total rate-sensitive assets amount to $1,092,429,000, while total rate-sensitive liabilities are $715,230,000, resulting in a gap of $377,199,000[123] - The cumulative gap as a percentage of total assets is 33.9% as of December 31, 2025[123] - The Bank's interest rate sensitivity gap indicates a negative gap of $152,679,000 for the less than one year category, suggesting potential vulnerability to rising interest rates[121] - The Bank actively monitors its interest rate risk exposure to minimize the potential adverse impact on net interest income and capital[118] - The Bank's management emphasizes the origination of adjustable-rate loans to better match the maturities and repricing terms of its interest-earning assets and interest-bearing liabilities[122] - The yield on collateralized mortgage obligations is 3.02%, while mortgage-backed securities yield 2.59% as of December 31, 2025[115] - The Bank does not engage in securities trading or hedging activities, focusing instead on managing interest rate risk through its lending and deposit-taking activities[116] Financial Performance - The Company’s total interest-earning assets amounted to $994.866 million, generating interest income of $64.354 million at an average yield of 6.47% for the year ended December 31, 2025[137] - Net interest income for 2025 was $42.587 million, reflecting an interest rate spread of 3.00% and a net interest margin of 4.28%[137] - Total interest income rose by $4.7 million, reaching $64.4 million for the year ended December 31, 2025, a 7.9% increase from the previous year[146] - Net interest income increased by $7.9 million to $42.6 million, representing a 22.8% growth year-over-year[146] - Total noninterest income grew by $2.2 million to $6.8 million, a 46.5% increase compared to the prior year[150] - The Company's net income for the year ended December 31, 2025, was $16.6 million, up 26.9% from $13.1 million in 2024[147] - Total noninterest expenses rose by $5.7 million to $25.2 million, a 29.3% increase, driven by higher salaries and employee benefits[151] Asset and Liability Management - The Company's total assets increased by $178.7 million to $1.1 billion as of December 31, 2025, compared to December 31, 2024[141] - Total liabilities increased by $160.0 million to $989.8 million, primarily due to a $159.6 million rise in total deposits[142] - The Company had a Tier 1 leverage ratio of 11.39% as of December 31, 2025[144] - The Company’s operating lease liabilities amounted to $3.135 million, with total contractual obligations of $53.135 million as of December 31, 2025[130] Employee Growth - The headcount of full-time equivalent employees increased from 73 to 98, reflecting the growth of the Bank[151]

Core Viewpoint - The formation of OptimumFunding, a wholly owned subsidiary of OptimumBank Holdings, Inc., marks a significant milestone in the company's strategic growth plan, aimed at expanding its HUD and FHA lending initiatives [1][9]. Company Overview - OptimumFunding has been established to enhance the company's commercial real estate lending capabilities by offering bridge-to-HUD financing and FHA- and HUD-insured loan origination [2][4]. - The company has a long history of supporting the healthcare sector, particularly skilled nursing facilities, and is now extending its services into government-insured lending [4][8]. Strategic Development - The launch of OptimumFunding is seen as a natural progression for the company, which has built deep expertise in healthcare and multifamily lending [3][8]. - The new subsidiary will provide a suite of financing solutions, including short-term transitional financing and government-insured financing for multifamily and healthcare properties [5][8]. Operational Structure - Loan origination and servicing will be managed by a dedicated team with extensive experience in healthcare and multifamily finance, ensuring a consistent client experience [6]. - OptimumFunding will operate independently but remain aligned with the company's governance and risk management frameworks [7]. Management Insights - The Chairman of the company emphasized that the formation of OptimumFunding will enhance profitability and shareholder value while better serving clients in the healthcare and multifamily sectors [8]. - The company anticipates that OptimumFunding will diversify revenue streams and strengthen its national presence in healthcare and multifamily finance [9]. Future Outlook - The company plans to provide updates regarding program approvals, staffing, and pipeline activity as OptimumFunding develops [9].

Financial Data and Key Metrics Changes - As of December 31, 2025, the company surpassed $1.1 billion in total assets, achieving record quarterly and annual earnings, with full-year net income of approximately $16.65 million, reflecting a nearly 27% increase compared to 2024 [2][9][18] - The return on average equity reached nearly 15% on a GAAP basis and 21.6% on a core basis, indicating strong profitability metrics [9][10] - Net income for the fourth quarter was $4.85 million, an increase of about $500,000 from the third quarter and over $900,000 from the prior year's quarter [10][11] - Earnings per share grew from $0.18 in the fourth quarter of the previous year to $0.21 in the latest quarter [11][17] Business Line Data and Key Metrics Changes - Net interest income rose by more than $800,000 quarter-over-quarter to $11.87 million, supported by higher loan balances and improved funding costs [11][16] - Non-interest income totaled $1.73 million for the quarter, remaining well above year-ago levels despite lower loan prepayment activity [12][16] - Total non-interest income for the year was $6.77 million, representing a 46.5% year-over-year growth [20] Market Data and Key Metrics Changes - Gross loans ended the year at $958.79 million, reflecting a year-over-year growth of $154.55 million or 19.2% [19] - Total deposits reached $931.75 million, representing year-over-year growth of 20.7% [19] - The allowance for credit losses to loans ratio stood at 1.07%, with non-performing assets to total assets ratio at 0.32%, indicating strong credit quality [21][22] Company Strategy and Development Direction - The company aims to roll out a new subsidiary for HUD and FHA-insured financing solutions in early 2026, targeting multifamily and healthcare properties to diversify revenue [3][4] - The strategy includes maintaining disciplined loan growth and enhancing client relationships, particularly in the skilled nursing and senior housing sectors [3][4][32] - The company is focused on prudent capital deployment and investing in infrastructure to support sustainable long-term value for shareholders [26][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability and growth, with expectations of loan portfolio growth of 25% or higher [40][43] - The company anticipates that its operational efficiency will improve as it scales, with no significant increase in the cost of doing business expected [57] - Management highlighted the importance of relationships with clients, which contribute to stable loan performance and growth [54] Other Important Information - The company celebrated its 25th anniversary in 2025, marking a significant milestone in its history [2][3] - The capital structure has been simplified to enhance transparency for investors, allowing for clearer modeling of earnings power [6][49] Q&A Session Summary Question: Opportunities in bridge to HUD financing - Management discussed the potential for significant growth in the skilled nursing and senior housing sectors, with expectations to reach $250 million in two to three years [31][33] Question: EPS guidance assumptions - Management indicated that the EPS guidance of $0.18-$0.21 is based on current performance and expectations of loan growth and stable margins [40][41] Question: Long-term loan growth rate without compromising credit quality - Management expects sustainable loan growth of 25% or higher, supported by strong relationships with loyal customers [43] Question: AllianceBernstein's increased economic exposure - Management clarified that the preferred stock structure is designed to simplify ownership for insiders and that conversions to common stock are anticipated [44][45] Question: Sectors driving loan growth and potential stress - Management emphasized that strong relationships with clients mitigate stress in their portfolios, contributing to stable loan performance [54] Question: Regulatory thresholds influencing growth - Management reassured investors that the infrastructure is in place to support growth without significant additional costs, indicating readiness for scaling beyond $1 billion in assets [57][58]

Financial Data and Key Metrics Changes - As of December 31, 2025, the company surpassed $1.1 billion in total assets, achieving record quarterly and annual earnings, with full-year net income of approximately $16.65 million, reflecting a nearly 27% increase compared to 2024 [2][9][18] - The return on average equity reached nearly 15% on a GAAP basis and 21.6% on a core basis, indicating strong profitability metrics [9][10] - Net income for the fourth quarter was $4.85 million, an increase of about $500,000 from the third quarter and over $900,000 from the prior year's quarter [10][11] Business Line Data and Key Metrics Changes - Net interest income rose by more than $800,000 quarter-over-quarter to $11.87 million, supported by higher loan balances and improved funding costs [11][16] - Non-interest income totaled $1.73 million for the quarter, remaining well above year-ago levels despite lower loan prepayment activity [12][16] - Gross loans ended the year at $958.79 million, reflecting a year-over-year growth of 19.2% [19] Market Data and Key Metrics Changes - Total deposits reached $931.75 million, representing year-over-year growth of 20.7% [19] - Non-interest income for 2025 was $6.77 million, showing a 46.5% year-over-year growth [20] - The allowance for credit losses to loans ratio stood at 1.07%, with non-performing assets to total assets ratio at 0.32%, indicating strong credit quality [21][22] Company Strategy and Development Direction - The company aims to roll out a new subsidiary for HUD and FHA-insured financing solutions in early 2026, targeting multifamily and healthcare properties to diversify revenue [3][4] - The focus remains on disciplined growth, conservative risk management, and building long-term relationships with customers [26] - The company is positioned for the next phase of disciplined growth, with expectations to maintain profitability while expanding its asset base [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a quarterly earnings per share range of $0.18-$0.21, driven by loan growth and stable funding costs [40][41] - The company anticipates loan growth of 25% or higher, supported by strong relationships with loyal customers [43][56] - Management highlighted that the infrastructure is in place to support growth without significantly increasing costs, indicating a positive outlook for scaling operations [57][58] Other Important Information - The company celebrated its 25th anniversary in 2025, marking a milestone in its evolution into a high-performing institution [2][3] - The largest institutional investor, AllianceBernstein, increased its economic ownership in the company, reflecting confidence in its strategy and governance [4][5] Q&A Session Summary Question: Opportunities for bridge to HUD financing - Management discussed the potential for growth in the skilled nursing and senior housing sectors, expecting to reach $250 million in two to three years, with long-term goals of $1 billion to $2 billion [31][33] Question: EPS guidance assumptions - Management indicated that the EPS guidance of $0.18-$0.21 is based on current performance, with expectations for loan growth and stable margins [40][41] Question: Loan growth sustainability - Management expects sustainable loan growth of 25% or higher, supported by strong customer relationships [43] Question: AllianceBernstein's increased exposure - Management clarified that the preferred equity structure is designed to simplify ownership and that further conversions to common stock are anticipated [44][45] Question: Sectors driving loan growth - Management emphasized that strong relationships with customers mitigate stress in portfolios, driving consistent loan growth [54][56] Question: Regulatory thresholds impacting growth - Management reassured investors that the infrastructure is in place to support growth without significant cost increases, indicating readiness for scaling beyond $1 billion in assets [57][58]

Financial Data and Key Metrics Changes - As of December 31, 2025, total assets surpassed $1.1 billion, marking a significant milestone for the company [2][14] - Full-year net income reached approximately $16.65 million, a 27% increase compared to 2024 [17][18] - The return on average equity was nearly 15% on a GAAP basis and 21.6% on a core basis [9][10] - Net interest income for the fourth quarter was $11.87 million, up by over $800,000 from the previous quarter [11][16] - The efficiency ratio stood at 49.59%, significantly lower than the peer average of 67.3% [24] Business Line Data and Key Metrics Changes - Gross loans ended the year at $958.79 million, reflecting a year-over-year growth of 19.2% [19] - Total deposits reached $931.75 million, representing a 20.7% increase year-over-year [19] - Non-interest income totaled $6.77 million for 2025, showing a year-over-year growth of 46.5% [20] Market Data and Key Metrics Changes - The company achieved a net interest margin of 4.28%, up 45 basis points from 2024 [14][24] - The allowance for credit losses to loans ratio was 1.07%, indicating strong credit risk management [21] - Non-performing assets to total assets ratio was 0.32%, well below national peer levels [21] Company Strategy and Development Direction - The company aims to expand its lending capabilities through a new wholly-owned subsidiary focused on HUD and FHA-insured financing solutions [3][4] - The strategy includes maintaining disciplined loan growth while enhancing client relationships [3][10] - The company plans to continue investing in personnel and technology to support growth [12][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability and growth, expecting to achieve quarterly earnings per share in the range of $0.18 to $0.21 [40][41] - The company anticipates loan growth of 25% or higher, supported by strong relationships with borrowers [43] - Management highlighted the importance of maintaining a strong capital position to support future growth initiatives [52][59] Other Important Information - The company celebrated its 25th anniversary in 2025, coinciding with its strongest financial performance to date [2][26] - AllianceBernstein increased its economic ownership in the company, reflecting confidence in its strategy and governance [4][44] Q&A Session Summary Question: Can you expand on the opportunities for the bridge to HUD financing? - Management indicated that the bank is well-positioned in the skilled nursing space and expects significant growth in this vertical, potentially reaching $250 million in two to three years [31][33] Question: What assumptions underpin the EPS guidance of $0.18-$0.21? - Management explained that the guidance is based on maintaining current loan growth and margins, with expectations of flat staffing costs [40][41] Question: What is the sustainable long-term growth rate for loans without compromising credit quality? - Management expects loan growth to be 25% or higher, supported by strong relationships with loyal customers [43] Question: How should investors interpret AllianceBernstein's increased exposure? - Management clarified that the preferred stock structure allows for greater ownership without regulatory issues, and further conversions are expected [44][46] Question: Which sectors are driving loan growth today? - Management noted that growth is driven by strong relationships with clients, particularly in South Florida, and there are no significant stresses affecting loan quality [55] Question: What balance sheet or regulatory thresholds should investors be mindful of? - Management indicated that the infrastructure is in place to support growth beyond $1 billion in assets without significant additional costs [58][59]

Core Insights - OptimumBank Holdings, Inc. reported net earnings of $4.85 million for Q4 2025, an increase from $4.32 million in Q3 2025 and $3.95 million in Q4 2024, driven by improved net interest income and noninterest income [1][15][22]. Financial Performance - Net interest income for Q4 2025 was $11.87 million, up from $11.05 million in Q3 2025 and $9.24 million in Q4 2024, supported by higher loan yields and lower costs on interest-bearing liabilities [5][17]. - Noninterest income decreased to $1.73 million in Q4 2025 from $1.98 million in Q3 2025, primarily due to fewer loan prepayment fees [6][22]. - Total noninterest expenses increased to $6.74 million in Q4 2025, compared to $6.60 million in Q3 2025 and $4.38 million in Q4 2024, reflecting higher employee compensation and marketing expenses [6][23][24]. Balance Sheet Highlights - Total assets grew to $1.11 billion as of December 31, 2025, up from $1.08 billion at September 30, 2025, and $932.93 million at December 31, 2024 [7][26]. - Total gross loans increased to $958.79 million at December 31, 2025, from $813.72 million at September 30, 2025, and $804.24 million at December 31, 2024, driven by growth in commercial and residential real estate [2][29]. - Total deposits decreased to $931.75 million at December 31, 2025, from $959.49 million at September 30, 2025, but increased from $772.20 million at December 31, 2024 [10][34]. Capital and Credit Quality - The allowance for credit losses was $10.27 million, or 1.07% of total loans, as of December 31, 2025, reflecting a well-managed loan portfolio [8][30]. - Nonaccrual loans decreased to $2.90 million at December 31, 2025, from $7.58 million at December 31, 2024, indicating improved asset quality [33]. Strategic Outlook - The Company plans to expand into new financial verticals that complement its banking operations, with a new subsidiary expected to launch in 2026 [5][12].

Summary of OptimumBank Holdings Conference Call Company Overview - **Company Name**: OptimumBank Holdings - **Ticker Symbol**: OPHC - **Founded**: 2000 - **Location**: Fort Lauderdale, South Florida - **Total Assets**: $1.1 billion as of December 31, 2023 [3] - **Market Capitalization**: Approximately $90 million, trading below book value [4] Financial Performance - **Net Earnings**: $16.6 million for 2025, a 27% increase from 2024 [6] - **Earnings Per Share (EPS)**: $0.72, up from $0.63 the previous year [6] - **Return on Equity (ROE)**: GAAP ROE at 14.83%, core ROE at 21.6% [4][34] - **Net Interest Margin (NIM)**: 4.28%, expected to rise further [5][8] - **Loan Portfolio Growth**: Grew nearly 20% in 2025, with expectations of 25%-30% growth in 2026 [10][11] Key Business Highlights - **Loan-to-Deposit Ratio**: Just over 100% [3] - **Gross Loan Portfolio**: Approximately $959 million [3] - **Deposits**: $932 million [3] - **Non-Interest Income**: Increased by 46% from the previous year [6] - **Commercial Real Estate Focus**: Portfolio primarily consists of owner-occupied properties, average loan size around $5 million [9][10] Growth Strategy - **Geographic Expansion**: Plans to expand into the Tampa area and beyond, focusing on where customer relationships exist [23] - **Vertical Integration**: Intent to create sister companies to support the bank, including HUD and bridge lending [24] - **Capital Raising**: Plans to attract new investors to grow the capital base, aiming for $15-20 million to support growth [27] Customer Relationship Management - **Customer Base**: Strong loyalty with a "cult following," leading to organic growth in deposits and loans [10][12] - **Service Approach**: Emphasis on providing a "white glove" service to all customers, regardless of wealth [12] Technology and Innovation - **Technology Upgrades**: Significant investment in technology improvements, with a new product launch expected in March or April 2024 [32][33] Risk Management - **Credit Risk**: No significant bad loans reported; proactive management of borrower relationships to mitigate risks [19][20] - **Economic Resilience**: Strong customer relationships expected to provide stability during economic downturns [38] Future Outlook - **Market Positioning**: Aiming for a market cap of $75 million to facilitate capital raises and increase trading volume [44][46] - **Sustainable Growth**: Focus on controlled and stable growth, with a strong emphasis on customer care [43] Additional Considerations - **Dividend Policy**: Discussions on potential dividends based on shareholder interest, balancing growth needs with shareholder returns [29][30] - **Investor Engagement**: Encouragement for potential investors to engage with the bank and its offerings [46]

Company Overview - OptimumBank Holdings, Inc. released its unaudited results for the year ended December 31, 2025, on January 20, 2026[4]. - The company is listed on the NYSE American under the trading symbol OPHC[3]. - The address of the principal executive offices is located in Ft. Lauderdale, Florida[1]. Financial Reporting - The financial presentation includes key aspects of the company's operations and financial condition[4]. - The report is filed under Form 8-K as per the Securities Exchange Act of 1934[4]. - The report includes a cover page interactive data file embedded within the Inline XBRL document[5]. - The financial statements and exhibits are not deemed "filed" for liability purposes under the Exchange Act[5]. - The report does not provide specific numerical data or performance metrics in the available content[4]. Corporate Governance - The report was signed by Moishe Gubin, Chairman of the Board of Directors[8]. - No emerging growth company status was indicated in the filing[3].

Core Viewpoint - OptimumBank Holdings, Inc. has been invited to present at the Emerging Growth Conference on January 21, 2026, providing an opportunity for direct engagement with the investment community [1][2]. Group 1: Conference Details - The Emerging Growth Conference will take place on January 21, 2026, featuring a live, interactive online format [1]. - Mr. Moishe Gubin, the Company's Chairman, will deliver a corporate presentation at 9:40 AM Eastern time, followed by a live Q&A session [2]. - Investors can submit questions in advance or ask during the event, with the session lasting for 30 minutes [2]. Group 2: About the Emerging Growth Conference - The conference serves as a platform for public companies to present new products, services, and major announcements efficiently [3]. - It focuses on companies with strong management teams and long-term growth potential across various growth sectors [3]. Group 3: About OptimumBank Holdings, Inc. - OptimumBank Holdings, Inc. is the parent company of OptimumBank, established in 2004, with its banking operations starting in 2000 in Ft. Lauderdale, Florida [5]. - The bank emphasizes service orientation with reasonable fees and is committed to economic development and community partnerships [5]. - OptimumBank offers a range of financial solutions, including Business Banking, Business Lending, SBA Lending Solutions, Treasury Management, and Personal Banking [5].