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].

Core Viewpoint - OptimumBank has launched a limited-time financing promotion for owner-occupied commercial real estate, offering competitive loan terms to support growing businesses [1][2][3] Group 1: Promotion Details - The promotion allows qualified borrowers to secure up to 80 percent loan-to-value at an interest rate of SOFR plus 2.67 percent, with a one-quarter point fee [1][3] - The promotional pricing is available for loan applications completed and submitted by March 31, 2026 [2][3] Group 2: Eligibility and Requirements - To qualify, the minimum purchase price must be one million dollars, and borrowers must establish deposit relationships with OptimumBank [4] - All loans are subject to credit approval and underwriting guidelines, with additional restrictions potentially applying [4][5] Group 3: Company Background - OptimumBank, founded in 2000 in Ft. Lauderdale, Florida, focuses on service-oriented banking with reasonable fees, aiming to support economic development and community partnerships [6]

Core Viewpoint - OptimumBank Holdings, Inc. has successfully completed a comprehensive modernization of its capital structure, establishing a transparent and high-performance equity foundation to support future asset growth [1]. Group 1: Capital Structure Modernization - The Company has amended and restated the terms of its Series B Preferred Stock to enhance clarity, consistency, and transparency for investors [5]. - The Series B Preferred Stock was unified into a single series, eliminating historical sub-series and simplifying disclosure, which improves comparability and transparency across reporting periods [6]. - The Series B Preferred Stock does not provide dividend income or additional economic participation, and its amendment was aimed at reducing complexity and enhancing financial reporting clarity [7]. Group 2: Institutional Investment and Support - AllianceBernstein has increased its economic exposure to the Company through open-market purchases, direct investments, and conversions of common stock into preferred stock, reflecting long-term confidence in the Company [2][3]. - The conversion of 350,000 shares of common stock into preferred stock allows AllianceBernstein to maintain appropriate governance alignment while increasing its economic stake [3][4]. - The non-voting shares held by AllianceBernstein are fully exchangeable into voting common stock, providing flexibility while supporting the Company's growth [4]. Group 3: Future Growth and Strategy - The Company aims to push past its current $1.1 billion asset milestone, with a streamlined capital structure and strong institutional participation positioning it well for continued growth [10]. - The coordinated efforts between major institutional partners and the Board reflect a unified conviction in the Company's future and its commitment to long-term value creation [10].

Core Viewpoint - OptimumBank has demonstrated strong financial performance, with insider buying indicating confidence in the company's future growth potential [2][3]. Financial Performance - OptimumBank reported net earnings of $4.32 million, equating to $0.37 per basic share, marking its strongest quarter ever [3]. - The increase in net interest income contributed significantly to this financial success, reflecting effective execution of the company's business strategy [3]. Insider Activity - Director Michael Blisko purchased 7,600 shares of OptimumBank common stock at an average price of $4.09 per share on December 4, 2025, totaling approximately $31,084 [2]. - This transaction increases Mr. Blisko's direct ownership stake, showcasing insider confidence in the company's future prospects [2]. Company Overview - OptimumBank, founded in 2000, focuses on community and business banking across Florida, emphasizing service orientation and reasonable fees compared to larger financial institutions [4]. - The bank is committed to economic development and social progress through responsible banking and community partnerships, offering various financial solutions including Business Banking, Business Lending, and Personal Banking [4].

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

Financial Data and Key Metrics Changes - Net earnings for Q3 increased by over $700,000 to approximately $4.3 million compared to roughly $3.6 million in Q2 [5] - Net interest income rose by about $800,000 quarter over quarter, from just over $10.2 million to just over $11 million [6] - Pre-tax, pre-provision income reached approximately $17.35 million year to date, representing an annualized run rate of about $23.1 million [7] - Core return on average equity (ROE) was approximately 22.6% for the quarter, one of the highest levels among community banks nationwide [8] - Total assets grew by $83.9 million to $1.08 billion as of September 30, 2025 [16] Business Line Data and Key Metrics Changes - Gross loans ended the quarter at $813.7 million, up from $784.6 million last quarter, representing a strong acceleration of loan growth [14] - Total deposits grew to $959.5 million, with $80.6 million in new deposits during Q3 [15] - Non-interest income increased nearly $1.5 million year over year, with service charges contributing approximately $3.4 million year to date [15] Market Data and Key Metrics Changes - The bank's net interest margin (NIM) for Q3 increased to 4.37%, while year-to-date NIM stands at 4.24% [23] - The allowance for credit losses to loans ratio stands at 1.23%, above the national peer average of 1.17% [16] - Non-performing assets to total assets ratio is at 0.33%, well below the national peer average of 0.56% [16] Company Strategy and Development Direction - The company aims to reinforce its position as one of the most dynamic and rapidly growing community banks in South Florida while maintaining a relationship-driven culture [19] - The bank is actively searching for mergers and acquisitions to support growth alongside organic expansion [35] - The focus remains on utilizing strong capital and a dedicated team to enhance community relationships and operational efficiency [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth, particularly in commercial real estate, with $50 million in new loans funded in October [29] - The bank's strategy includes managing funding costs effectively while expanding high-quality loan growth [13] - Management believes that the current political situation in New York will not significantly impact the bank's operations, as the customer base is already established [43] Other Important Information - The bank celebrated its 25th anniversary, highlighting its growth from a single branch to a $1.1 billion institution [2] - The employee base has expanded to close to 100 people from about 73 a year ago, reflecting a culture of momentum and talent [8] Q&A Session Summary Question: What drove the expansion in Q3 NIM, and how does year-to-date performance compare with margin levels going forward? - The expansion in NIM was driven by older loans at lower interest rates running off and newer loans being issued at higher rates [24] Question: What is driving the deposit growth, and how is the deposit mix evolving? - The growth is attributed to a loyal customer base, with about one-third of deposits being non-interest-bearing [25][26] Question: Which loan segments are driving growth, and how do you feel about overall credit risk? - The majority of growth is in commercial real estate, with strong asset quality maintained [29] Question: How does management evaluate capital adequacy relative to regulatory requirements and internal targets? - The bank's capital structure is robust, ending the quarter at 11.71%, well above the community bank leverage ratio requirement [34] Question: How is the bank positioning itself competitively amid regional CRE dynamics and deposit competition? - The bank differentiates itself through a relationship-driven approach and high-quality service, focusing on customer loyalty rather than just rates [37][38] Question: Can the bank attract New York City depositors given recent events? - The bank has opportunities to expand its customer base beyond South Florida, leveraging its strong relationships and service model [41][43]

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