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 Holdings, Inc. Financial Performance for the First Quarter of 2025