- OptimumBank reported Q3 2025 net earnings of $4.32 million, an increase from both the prior quarter and the same period last year.
- Total deposits grew 9.17% from Q2 and nearly 19% year-over-year, reaching $959.49 million.
- Loans expanded during the quarter, driven by growth in commercial real estate and consumer lending.
- Net interest margin rose to 4.37%, supported by higher asset yields and improved funding costs.
- Leadership emphasized continued growth, strong capital levels, and a community-banking model centered on relationship banking.
OptimumBank Holdings (NYSE American: OPHC), a bank holding company that owns 100% of community bank OptimumBank, headquartered in Fort Lauderdale, Florida, reported another period of higher earnings, loan expansion, and deposit growth in the third quarter of 2025. The bank posted net income of $4.32 million, or $0.37 per basic share, according to its latest update (https://ibn.fm/6jUHu).
The results mark an increase from both the second quarter’s $3.60 million and the $3.30 million earned in the same period last year. For the first nine months of 2025, net income reached $11.8 million, driven by a $5.26 million improvement in net interest income and higher noninterest revenue.
Total assets rose to $1.08 billion, an $83.92 million increase from June 30. The bank’s funding profile also strengthened, with deposits reaching $959.49 million. That reflects a quarterly increase of $80.62 million and nearly $153 million more than a year earlier.
Chairman Moishe Gubin said the bank’s performance reflects discipline in balancing deposit pricing, lending growth, and operating efficiency. “As we celebrate OptimumBank’s 25th anniversary, we are proud to report another quarter of strong performance and steady growth,” he said. “Our momentum continues to build as we expand our customer base, strengthen our core earnings, and deliver meaningful value to our shareholders.”
Net interest income rose to $11.05 million, supported by higher yields on loans and interest-earning deposits. The cost of funding declined slightly from the prior quarter, while yields on earning assets increased to 6.46%. The bank’s net interest margin improved to 4.37%, up from 4.32% in the second quarter and significantly higher than the 3.96% reported a year ago.
Noninterest income totaled $1.98 million, helped by service charges, fee-based revenues, gains on sales of government-guaranteed loans, and loan prepayment fees. Noninterest expenses increased to $6.60 million, driven by staffing and infrastructure investments. OptimumBank held its efficiency ratio at 50.68%, consistent with recent quarters.
Loan activity remained largely constructive. Gross loans increased by $29.16 million, or 3.72%, during the quarter. Commercial real estate and consumer loans grew by $46.64 million and $5.79 million, respectively. Those increases were partially offset by declines in land, construction, and commercial loans, reflecting project completions and shifting market conditions.
Deposit growth also showed strong momentum. Noninterest-bearing demand deposits rose to $313.97 million, up from $259.82 million in the second quarter. The bank ended Q3 with no outstanding borrowings, and capital ratios remained comfortably above regulatory minimums, including an 11.71% Tier 1 Capital to Total Assets ratio.
Asset quality indicators improved. Nonaccrual loans decreased from $3.22 million to $2.98 million during the quarter, with no loans 90 days past due and still accruing. Net recoveries totaled $41,000. The allowance for credit losses stood at $10.02 million, or 1.23% of total loans.
The bank also increased liquidity, with cash and cash equivalents rising to $235.09 million from $181.75 million in the previous quarter.
OptimumBank’s growth strategy continues to center on traditional relationship banking for businesses and consumers in South Florida. In a recent interview, Gubin underscored the importance of community-focused operations. “We are a community bank that services businesses and individuals,” he said, adding that the institution emphasizes personal service over the broad, technology-driven approach of national banks. “Our customers are truly like family members; they’re known to the bank.” The lending portfolio reflects that positioning. “We haven’t had a bad loan in many, many years,” Gubin noted, pointing to a borrower base concentrated among familiar, longstanding clients.
In discussing the bank’s growth trajectory, he emphasized the institution’s long-term path. “We’ve achieved 30–40% growth over the last 5–6 years, and we expect that to continue,” he said. OptimumBank passed the $1 billion asset level in Q3, nearly 25 years after it began trading publicly on the NYSE American.
Looking ahead, Gubin said the bank has the ability to support significant further expansion. Management said the fourth quarter outlook remains constructive, with continued investment in technology, staffing and deposit-gathering initiatives intended to support growth across South Florida. The bank’s financial position provides capacity to absorb expansion in lending and to respond to competitive shifts in regional deposit markets.
“Despite ongoing industry headwinds, our team’s disciplined approach to deposit pricing, targeted lending, and operating efficiency continues to drive results. With a growing foundation of loyal customers and a well-capitalized balance sheet, we are entering our next chapter with confidence, agility, and excitement for the opportunities ahead,” Gubin underlined in the Q3 release.
For more information, visit the bank’s website at www.OptimumBank.com.
NOTE TO INVESTORS: The latest news and updates relating to OPHC are available in the newsroom at https://ibn.fm/OPHC
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