OptimumBank(OPHC) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Second Quarter 2025 Performance Overview 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] - Diluted earnings per share declined due to an average increase of 3,351,368 common and preferred shares[1] Key Financial Highlights (Q2 2025) 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][3] - Total assets grew by $21.66 million to $999.13 million from March 31, 2025, an annualized increase of approximately 8.86%[3] Management Commentary & Strategic Outlook 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] - 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] - 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] - 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] - 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] Financial Performance Analysis Quarterly Financial Trends (Table) 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 Net earnings decreased QoQ due to credit loss expense but increased YoY, driven by strong net interest income and margin expansion Net Earnings 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] - Compared to Q2 2024, net earnings increased by approximately $0.1 million[12] Interest Income 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] - 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] Interest Expense 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] - 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] Net Interest Income & Margin 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] - 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] - 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] - 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] Credit Loss Expense 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] - Gross charge-offs remained modest at $72,000, while recoveries totaled $97,000, resulting in net recoveries of $25,000 during Q2 2025[18] - The allowance for credit losses stood at $9.34 million, or 1.19% of total loans, as of June 30, 2025[18] Noninterest Income 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] - 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] Noninterest Expenses 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] - 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] Income Tax Expense 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] Balance Sheet Analysis Total assets and deposits grew, approaching $1 billion, driven by interest-bearing deposits; gross loans decreased QoQ but increased YoY Total Assets 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] Cash and Cash Equivalents 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] Investment Securities 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] - No sales of debt securities were reported during these periods[24] Total Gross Loans 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][25] - 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] - Compared to June 30, 2024, the gross loan portfolio increased by $23.49 million[25] Allowance for Credit Losses 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] - Net recoveries of $25,000 (gross charge-offs of $72,000 and recoveries of $97,000) also contributed to the increase[26] Nonaccrual Loans & Nonperforming Assets 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] - The company reported no loans 90 days or more past due and still accruing interest, and no real estate owned (OREO) outstanding[27][28] Total Deposits 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] - Noninterest-bearing deposits accounted for 29.56% of total deposits at June 30, 2025[29] Accumulated Other Comprehensive Loss (AOCL) 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] - Year-over-year, AOCL slightly narrowed by $0.04 million[30] Shareholders' Equity & Tangible Book Value 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] - The increase in both non-diluted and fully diluted tangible book value per share reflects strong quarterly earnings performance and overall capital strength[35] - The Bank remains well capitalized with a Tier 1 Capital to Total Assets ratio of 11.89%, well above regulatory minimums[35] Non-GAAP Financial Measures Explanation of Non-GAAP Measures 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] - These measures are useful in understanding performance trends and facilitating comparisons with other financial institutions[52] - The Company provides reconciliations between GAAP and these non-GAAP measures, emphasizing that these disclosures should not be considered an alternative to GAAP[52] Non-GAAP Reconciliations 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 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] - Actual results, performance, or achievements may be materially different from those expressed or implied by forward-looking statements[36] - 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] Investor Relations Contact 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] Consolidated Financial Statements (Tables) Consolidated Balance Sheet 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 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 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) 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) 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 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 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 |