- OptimumBank Holdings, Inc. posted Q2 2025 net earnings of $3.6 million, or $0.31 per basic share.
- Net interest margin rose to 4.32%, reflecting improved deposit pricing and asset yields.
- Total deposits increased by $25.93 million in the quarter, reaching $878.87 million.
- Noninterest income rose to $1.83 million, supported by loan sales and prepayment fees.
- Capital levels remain strong, with Tier 1 Capital to Total Assets at 11.89%.
OptimumBank Holdings (NYSE American: OPHC), a single bank holding company that owns 100% of community bank OptimumBank, headquartered in Fort Lauderdale, Florida, reported higher earnings and positive financial results for the second quarter of 2025, highlighting steady growth in deposits and improved margins.
According to the company’s latest financial update, net earnings for the quarter totaled $3.6 million, or $0.31 per basic share and $0.29 per diluted share. While this was slightly below the $3.87 million posted in the first quarter, it exceeded the $3.5 million recorded in the same period last year (https://ibn.fm/cyTyR).
For the first half of 2025, OptimumBank generated $7.47 million in earnings, an increase of $1.6 million compared with the same period in 2024. The improvement was largely driven by $3.18 million in higher net interest income and a $0.63 million boost in noninterest income.
Net interest income rose to $10.24 million in Q2, supported by stronger yields on loans and lower costs on interest-bearing liabilities. The bank’s net interest margin expanded to 4.32%, up from 4.06% in Q1. Yields on interest-earning assets increased to 6.57%, while the cost of interest-bearing liabilities declined to 3.49%.
This combination reflects management’s focus on disciplined deposit pricing and balance sheet optimization. Return on average assets came in at 1.48% for the quarter, slightly below 1.62% in the previous quarter but still consistent with strong profitability metrics for a community bank.
Deposits grew by $25.93 million in the quarter, reaching $878.87 million by June 30, 2025. Compared with the same quarter in 2024, deposits are up $116.22 million. Noninterest-bearing demand deposits also grew, reaching $259.82 million.
At the same time, the company reduced reliance on borrowings, cutting average borrowings from $32.22 million in Q1 to $2.22 million in Q2. This shift underscores the bank’s emphasis on core funding and balance sheet strength.
While overall gross loans declined by $15.68 million in the quarter, portfolio composition is shifting. Consumer and multifamily lending segments expanded, with balances growing by $7.99 million and $4.71 million respectively. These gains were offset by declines of $19.21 million in land and construction loans and $5.04 million in residential real estate lending.
The reduction was tied to loan payoffs and the resolution of a $5.6 million nonperforming loan. Management indicated that the changes create opportunities to redeploy capital into higher-yielding segments of the portfolio.
Noninterest income reached $1.83 million, a quarterly increase of $0.6 million, primarily driven by gains on sales of government-guaranteed loans and loan prepayment fees. Noninterest expenses also rose, totaling $6.18 million, reflecting higher staffing and infrastructure investments aimed at long-term scalability.
The bank’s efficiency ratio stood at 51.18%, showing continued cost discipline even as operating expenses increased. Credit quality remained solid in Q2. Credit loss expense increased to $1.04 million due to a reserve on a specific commercial loan, but net recoveries of $25,000 were recorded as charge-offs remained modest. The allowance for credit losses totaled $9.34 million, or 1.19% of total loans.
Capital levels were strong, with stockholders’ equity rising to $111.35 million and Tier 1 Capital to Total Assets at 11.89%, well above regulatory requirements.
OptimumBank reported total assets of $999 million at the end of the second quarter, just shy of the $1 billion milestone. Since quarter-end, the Bank has surpassed that threshold, underscoring its position as one of the fastest-growing community banks in South Florida. Its relationship-based business model, complemented by ongoing technology investments, continues to drive growth. Later this year, the Bank plans to launch a new open-architecture core banking platform, with API-driven features designed to streamline paperless processes, enhance onboarding, and strengthen treasury management capabilities.
Chairman Moishe Gubin emphasized the bank’s resilience despite industry headwinds. “Although overall loan balances declined this quarter due to the payoff of older, lower-yielding loans, we remain well positioned to redeploy capital into higher-return opportunities,” he said in the earnings release. “Our results demonstrate our ability to manage a growing asset base while maintaining solid credit quality and capital strength.”
For more information, visit the company’s website at OptimumBankInvestors.com.
NOTE TO INVESTORS: The latest news and updates relating to OPHC are available in the company’s newsroom at https://ibn.fm/OPHC
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