OptimumBank Holdings Reports 63% Increase in Net Earnings for Q1 2025

OptimumBank Holdings, Inc. reported a significant increase in financial performance for the first quarter of 2025, with net earnings reaching $3.87 million, or $0.33 per basic share, compared to $2.38 million, or $0.31 per basic share, in the same period last year. This represents a 63% increase in net earnings year-over-year, primarily driven by a rise in net interest income, which increased by 22% to $9.43 million from $7.75 million. Total interest income also saw an 11% increase, rising to $15 million, while interest expense decreased slightly to $5.58 million, reflecting a reduction in deposit rates and repayment of borrowings.

The company's total assets grew by approximately $44.6 million to $977.5 million as of March 31, 2025, up from $932.9 million at the end of 2024. This growth was largely attributed to an increase in cash and cash equivalents, which rose to $143.5 million from $93.6 million. Total deposits increased by $80.7 million to $852.9 million, while net loans decreased slightly by $3.7 million to $791.2 million. Stockholders' equity also improved, rising to $108 million from $103.2 million, bolstered by net earnings and proceeds from common stock sales.

In terms of operational developments, OptimumBank has focused on expanding its footprint in South Florida and enhancing its product offerings. The bank has entered the Small Business Administration (SBA) lending space, achieving designation as a Preferred Lender under the SBA’s Preferred Lenders Program in the first quarter of 2025. The SBA loan portfolio totaled $9.9 million, representing 1.2% of total loans, an increase from 1.1% at the end of 2024. Additionally, the bank is investing in technology upgrades to improve its core banking system and enhance customer service.

The filing also highlighted a strategic emphasis on strengthening credit oversight and improving credit administration processes. The allowance for credit losses decreased to $8.27 million, or 1.03% of loans outstanding, down from $8.66 million, indicating a positive trend in credit quality. The bank recorded a credit loss reversal of $165,000 for the quarter, contrasting with a credit loss expense of $1.06 million in the previous year.

Looking ahead, OptimumBank aims to continue its growth trajectory by enhancing its core funding capabilities and expanding its service offerings. The management is focused on building full-service banking relationships and capitalizing on the strong business and real estate market in South Florida. The bank's strategic initiatives are expected to facilitate further growth in earning assets and core transaction deposits while maintaining a commitment to credit quality and risk management.