OptimumBank Holdings Reports Increased Net Earnings and Asset Growth in Q2 2025

OptimumBank Holdings, Inc. reported a significant increase in its financial performance for the second quarter of 2025, with net earnings reaching $3.6 million, or $0.31 per basic share, compared to $3.5 million, or $0.36 per basic share, in the same period last year. For the six months ended June 30, 2025, net earnings totaled $7.5 million, up from $5.9 million in the prior year. The company’s total interest income increased by 3% to $15.6 million for the quarter, driven by higher average balances of interest-earning assets, while total interest expense decreased by 17% to $5.3 million due to lower deposit rates and reduced borrowings.

In terms of overall financial health, OptimumBank's total assets grew by approximately $66.2 million to $999.1 million as of June 30, 2025, compared to $932.9 million at the end of 2024. This growth was primarily attributed to an increase in cash and cash equivalents. However, net loans decreased by $20.4 million to $774.5 million, reflecting a strategic decision to manage credit risk more conservatively. Deposits saw a notable increase of $106.7 million, reaching $878.9 million, which provided a solid foundation for funding new loan originations.

Operationally, the bank has made strides in expanding its customer base and enhancing its service offerings. The company reported a significant increase in noninterest income, which rose by 53% to $1.8 million, largely due to improved performance in wire transfer and ACH fees. Additionally, the bank has been focusing on modernizing its technology and upgrading its core banking system, which is expected to enhance customer service and operational efficiency. The strategic emphasis on expanding its footprint in South Florida and entering niche markets, such as skilled nursing facilities and merchant cash advance services, is also part of its growth strategy.

The company’s credit loss expense increased to $1.0 million for the quarter, compared to $195,000 in the prior year, reflecting a proactive approach to managing potential credit risks. The allowance for credit losses stood at $9.3 million, or 1.19% of loans outstanding, as of June 30, 2025. This increase in the allowance is indicative of the bank's commitment to maintaining a robust risk management framework amid changing market conditions.

Looking ahead, OptimumBank Holdings, Inc. remains optimistic about its growth trajectory. The company plans to continue investing in technology and talent to enhance its service offerings and operational capabilities. Management is focused on maintaining a strong capital position, with the bank meeting all regulatory capital requirements as of June 30, 2025. The strategic initiatives aimed at expanding the customer base and improving product offerings are expected to drive future profitability and shareholder value.