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(OPHC) - 2025 Q1 - Quarterly Report