OptimumBank Holdings, Inc.
For the period ended Jun 30, 2026. Filed Aug 10, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 10, 2026
OPHC$8.83+1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-12.
0001493152-26-022399
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001493152-26-036825
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 37 previous paragraphs and 44 current paragraphs.
16 unchanged; 14 reworded; 13 added; 7 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Our strategic plan is focused on generating sustainable long-term growth through the expansion of full-service banking relationships, growth in earning assets, core transaction deposits, treasury management fee income, and disciplined expense management. We continue to expand our presence throughout South Florida while selectively pursuing specialized lines of business through OptimumFunding, LLC and OptimumFinance, LLC that complement our relationship-based banking model and leverage the Company’s existing expertise.
Current report
We believe long-term client relationships are built by delivering personalized financial solutions that meet the evolving needs of business owners and individuals. Our approach is centered on providing responsive, relationship-driven service supported by experienced bankers, modern technology, and tailored financial solutions. We believe this strategy strengthens client relationships, promotes customer retention, and supports profitable growth that enhances long-term shareholder value.
Current report
Our primary focus remains developing full-service banking relationships with business customers throughout Florida, and selected markets across the United States. We believe a strong and diversified core deposit base provides the foundation for continued loan growth and supports our ability to capitalize on opportunities within South Florida’s commercial real estate market and our specialized industry verticals, including skilled nursing facilities and merchant cash advance providers. We continue to invest in experienced banking professionals, treasury management capabilities, and enhancements to our technology platform, including upgrades to our core banking system and digital banking applications. These investments are intended to enhance the client experience while allowing us to continue delivering personalized service, improve operating efficiency, expand relationships with local small businesses, diversify our customer base and balance sheet, and increase utilization of our branch network.
Current report
We believe investments in technology and product enhancements complement, rather than replace, our relationship-based banking model by making it easier for clients to conduct business while continuing to receive personalized service from experienced bankers. Together with our Treasury Cash Management platform, these investments have expanded our ability to serve specialized industries, including skilled nursing facilities, through commercial real estate, asset-based lending (“ABL”), and operating deposit relationships. We have also expanded our Small Business Administration (“SBA”) lending platform, entering the market in late 2023 and achieving Preferred Lender Program (“PLP”) status during the first quarter of 2025. Under the program, the Bank offers SBA-guaranteed 7(a) loans generally secured by accounts receivable, inventory, equipment, or real estate. These initiatives have contributed to continued growth in our loan portfolio through relationship-based commercial banking activities, primarily within the commercial real estate, owner-occupied commercial real estate, multifamily, and commercial and industrial sectors throughout Florida.
Current report
Treasury management services remain an important component of our broader commercial banking strategy. While we continue to serve our established merchant cash advance customer base and related electronic funds transfer business, our primary strategic focus is expanding full-service banking relationships with business customers. These relationships provide opportunities to grow operating deposits, treasury management services, and commercial lending relationships while strengthening long-term customer relationships. We continue to invest in automation and technology designed to improve efficiency, enhance the client experience, and support the continued growth of our treasury management platform throughout 2026 and beyond.
Current report
Our strategic plan continues to emphasize disciplined underwriting, prudent risk management, and a comprehensive credit culture that has supported the Company’s strong credit performance. As we pursue additional growth opportunities through our subsidiaries and existing banking platform, management remains committed to maintaining the underwriting standards, credit administration processes, and risk management practices that have supported the quality of our loan portfolio while positioning the Company for continued profitable growth.
Current report
The Company continued to generate strong balance sheet growth during the first six months of 2026. Total assets increased by approximately $289.3 million to $1.4 billion at June 30, 2026, from $1.1 billion at December 31, 2025, primarily driven by continued growth in the loan portfolio.
Current report
Net Income. Net income for the six months ended June 30, 2026, were 11.3 million or $0.79 per basic share and $0.48 per diluted share compared to net income of $7.5 million or $0.64 per basic share and $0.32 per diluted share for the six months ended June 30, 2025. The Company’s strong financial performance during the first six months of 2026 was primarily driven by growth in net interest income and noninterest income, reflecting continued execution of its relationship-based banking strategy.
Current report
Interest income. Interest income increased by $10.6 to $41.2 million for the six months ended June 30, 2026, compared to $30.6 million for the six months ended June 30, 2025, due primarily to increases in average balances of interest earning assets.
Current report
***Interest expense.***Interest expense increased by $2.4 million to $13.3 million for the six months ended June 30, 2026, compared to $10.9 million for the six months ended June 30, 2025, primarily due to an increase in average interest-bearing liability balances, and a decrease in the cost of interest-bearing liabilities.
Current report
Credit loss expense. The Company recorded a credit loss expense of $0.7 million for the six months ended June 30, 2026, compared to $0.9 million for the six months ended June 30, 2025. The decrease primarily reflects the continued strength of the Company’s credit quality and management’s evaluation of the factors used to estimate expected credit losses, partially offset by continued growth in the loan portfolio. Expected credit losses are charged to earnings to maintain the allowance for credit losses at a level management believes is appropriate to absorb estimated losses inherent in the loan portfolio. Management’s periodic evaluation of the adequacy of the allowance for credit losses considers historical loss experience, the volume and composition of the loan portfolio, adverse situations that may affect borrowers’ ability to repay, the estimated value of underlying collateral, general economic conditions, particularly within the Company’s market areas, and other factors affecting the estimated collectability of loans. Net charge-offs during the six months ended June 30, 2026 totaled $14,000 million and were limited to the consumer loan portfolio.
Current report
Noninterest income. Total noninterest income was $4.3 million for the six months ended June 30, 2026 compared to $3.1 million for the six months ended June 30, 2025. The increase reflects consistent performance in wire transfer and ACH fees, and gains on the sale of government guaranteed SBA loans.
Current report
Noninterest expenses. Total noninterest expenses $16.4 million for the six months ended June 30, 2026, compared to $11.8 million for the six months ended June 30, 2025, primarily due to employee compensation and benefits, data processing fees, and other expenses.
Removed paragraphs (7)
Previous report
Our key strategic initiatives are designed to generate continued growth in earning assets, core transaction deposits, treasury management fee income, while operating with an efficient cost structure. Continued emphasis on expansion of our South Florida customer base, along with and exploring additional niche lines of business through OptimumFunding, LLC and OptimumFinance, LLC, are also part of our strategic plan.
Previous report
We believe providing our clients with reasonable solutions that meet their business and personal needs fosters stability in our client base, builds full-service banking relationships, and allows for profitable growth that enhances shareholder returns. We intend to deliver the solutions to clients in a very personalized manner while investing in talent and leveraging modern technology to facilitate efficiency and decrease client pain points while enhancing our competitiveness.
Previous report
We are focused on full-service banking relationships, continuing to identify deposit growth opportunities among our existing customer base and prospects throughout South Florida, Florida, and the United States. Improving our core funding capabilities is foundational to the ability to support our opportunity to capitalize on the strong business and real estate market in South Florida and with our niche skilled nursing facility and merchant cash advance markets. We will accomplish this through the addition of experienced and skilled bankers to our business development and retail banking teams, and we are modernizing and improving our products and digital services to better support our personalized business model. This includes upgrading our core banking system, including our online banking and mobile banking applications. We believe adding this talent and upgrading our core banking system and client facing applications will allow us to better service local area small businesses that will add granularity and diversification to our customer base and balance sheet, while improving the utilization of our local area branches.
Previous report
Modernizing our technology and improving our products and services allows us to better support our personalized business model to our niche business owner-operator client base with less friction, a human touch, and we believe better convenience than the large banks. In coordination with our Treasury Cash Management capabilities this has allowed us to enter niche businesses including banking services to Skilled Nursing Facilities in the areas of CRE and Asset-Based Lending (“ABL”) while capturing the business operating accounts. In addition, we have built capabilities in Small Business Administration (SBA) lending, entering the space in late 2023 and being designated as a Preferred Lender under the SBA’s Preferred Lenders Program (“PLP”) in the first quarter of 2025. Under the program the Bank offers SBA-guaranteed 7A loans generally secured by accounts receivable, inventory, equipment, or real estate. Management has implemented initiatives that have enabled us to grow our loan portfolio primarily with South Florida and Florida generated relationships in the commercial real estate, owner-occupied commercial real estate, multifamily, and commercial and industrial sectors.
Previous report
In treasury management services, our primary focus will remain on merchant cash advance providers and the related electronic funds transfer line of business. For this revenue source to increase further in a meaningful way, automation will be necessary to further improve efficiency. We are currently investing in the necessary technology and expect efficiencies to occur throughout 2026 and beyond.
Previous report
Our strategic plan emphasizes and builds upon initiatives focused on strengthening credit oversight and credit administrative processes and procedures. Moreover, management continues to identify loan growth opportunities through our subsidiaries that are designed to improve overall profitability without sacrificing credit quality and underwriting standards. This growth oriented strategic direction is expected to be facilitated by maintaining credit administration objectives including a risk-based and comprehensive credit culture and a credit administrative infrastructure that reinforces appropriate risk management practices.
Previous report
As of March 31, 2026 and December 31, 2025, the Bank is well capitalized under regulatory guidelines.
Reworded paragraphs (14)
Previous wording
In early 2026, the Company formed OptimumFinance LLC, a wholly owned non-bank, asset-based lending subsidiary. The subsidiary was created to expand the company’s commercial real estate lending capabilities through flexible bridge and transitional financing solutions. Through OptimumFinance, the Company is able to provide flexible, short-term financing to acquire and reposition assets, and provides a single platform to support clients from bridge origination through permanent financing.
Current wording
In early 2026, the Company formed OptimumFinance LLC, a wholly owned non-bank financing subsidiary, to expand the Company’s commercial real estate lending capabilities through flexible bridge and transitional financing solutions. OptimumFinance enables the Company to provide short-term financing for the acquisition and repositioning of commercial real estate while supporting clients through the transition to permanent financing, further strengthening our ability to serve customers throughout the life cycle of their financing needs.
Previous wording
In late 2025, the Company formed OptimumHUD Loans, LLC (d/b/a) as OptimumFunding, LLC, a wholly owned non-bank subsidiary. When the subsidiary commences operations, it is expected to support a focused suite of financing solutions, including bridge-to Housing and Urban Development (“HUD”) financing to support acquisitions, refinancing and repositioning to facilitate a transition to long-term HUD or Federal Housing Administration (“FHA”) financing and FHA and HUD loan origination capability for multifamily and healthcare properties. The platform will deliver specialized expertise serving skilled nursing facilities, senior housing, and multifamily assets, building upon the Company’s established lending relationships and sector knowledge.
Current wording
In late 2025, the Company formed OptimumHUD Loans, LLC (d/b/a OptimumFunding, LLC), a wholly owned non-bank subsidiary. Upon commencement of operations, the subsidiary is expected to provide specialized financing solutions, bridge-to Housing and Urban Development (“HUD”) financing, Federal Housing Administration (“FHA”) and HUD loan originations, and financing for acquisitions, refinancing, and repositioning of multifamily and healthcare properties. The platform is expected to build upon the Company’s established lending relationships and sector expertise while expanding our ability to serve clients in the skilled nursing, senior housing, and multifamily sectors.
Previous wording
Refer to Note 10 in the condensed consolidated financial statements, which presents the Bank’s actual and required minimum capital ratios under Prompt Corrective Action Regulations (“CBLR Framework”).
Current wording
Refer to Note 11 in the condensed consolidated financial statements, which presents the Bank’s actual and required minimum capital ratios to be well capitalized under prompt corrective action regulations.
Previous wording
The Company’s total assets increased by approximately $157.1 million to $1.3 billion at March 31, 2026, from $1.1 billion at December 31, 2025, primarily due to increases in loans. Net loans increased by $131.2 million to $1.1 billion at March 31, 2026, from $947.3 million at December 31, 2025. Deposits grew by approximately $161.1 million to $1.1 billion at March 31, 2026, from $931.8 million at December 31, 2025. Total stockholders’ equity increased by approximately $5 million to $126.8 million at March 31, 2026, from $ 121.9 million at December 31, 2025, primarily due to net income and stock-based compensation.
Current wording
The Company’s total assets increased by approximately $289.3 million to $1.4 billion at June 30, 2026, from $1.1 billion at December 31, 2025, primarily due to increases in loans. Net loans increased by $257.1 million to $1.2 billion at June 30, 2026, from $947.3 million at December 31, 2025. Deposits grew by approximately $282.3 million to $1.2 billion at June 30, 2026, from $931.8 million at December 31, 2025. Total stockholders’ equity increased by approximately $12.5 million to $134.4 million at June 30, 2026, from $ 121.9 million at December 31, 2025, primarily due to net income, stock-based compensation, and common stock shares sold under the ATM program.
Previous wording
(1) Annualized for the three months ended March 31, 2026.
Current wording
(1) Annualized for the six months ended June 30, 2026.
Previous wording
Our liquidity is derived primarily from our deposit base, scheduled amortization and prepayments of loans and debt securities, funds provided by operations, and capital. The Company’s liquidity position is also maintained by selling equity and cash flow generation from our subsidiaries. Additionally, as a commercial bank, we are expected to maintain an adequate liquidity position. The Company’s liquidity position may consist of cash on hand, cash on demand deposit with correspondent banks, federal funds sold, and unpledged marketable securities such as United States government securities, collateralized mortgage obligations, and mortgage-backed securities. Some of our securities are pledged to the Federal Reserve Bank to secure borrowing capacity. The market value of securities pledged to the Federal Reserve Bank was $52.1 million at March 31, 2026.
Current wording
Our liquidity is derived primarily from our deposit base, scheduled amortization and prepayments of loans and debt securities, funds provided by operations, and capital. The Company’s liquidity position is further supported by equity issuances and cash flow generated by its subsidiaries. As a commercial bank, maintaining adequate liquidity remains a core financial objective. The Company’s liquidity consists of cash on hand, balances maintained with correspondent banks, federal funds sold, and unpledged marketable securities, including U.S. government securities, collateralized mortgage obligations, and mortgage-backed securities. Certain securities are pledged to the Federal Reserve Bank to support borrowing capacity. The Bank has a $58.7 million line of credit with the Federal Reserve Bank, which is secured by debt securities and loans with carrying value of $92.8 million as of June 30, 2026.
Previous wording
Deposits increased by approximately $161.1 million during the three-month period ended March 31, 2026. The increase in deposits provided funding for new loan originations and repayment of Federal Home Loan Bank advances.
Current wording
Deposits increased by approximately $282.3 million during the six-month period ended June 30, 2026, providing a strong source of funding for continued loan growth while also supporting the repayment of Federal Home Loan Bank advances.
Previous wording
In addition to obtaining funds from depositors, the Company had borrowing capacity of $293.4 million in established borrowing capacity with the FHLB. The Company’s borrowing facility is subject to collateral and stock ownership requirements, as well as prior FHLB consent to each advance. As of March 31, 2026, first mortgage loans with a carrying value of $579.9 million were pledged to FHLB. At March 31, 2026, the Company also had available lines of credit amounting to $76.5 million with five correspondent banks, disbursements on the lines of credit are subject to the approval of the correspondent banks. As of March 31, 2026, debt securities with a fair value of $52.1 million were pledged as collateral to the Federal Reserve Bank. The Company monitor its liquidity position on daily basis and believes its current funding sources, including deposits, borrowing capacity, unencumbered liquid assets, and access to the federal funds market, are adequate to meet its ongoing operating needs.
Current wording
In addition to obtaining funds from depositors, the Company had borrowing capacity of $355.5 million in established borrowing capacity with the FHLB. The Company’s borrowing facility is subject to collateral and stock ownership requirements, as well as prior FHLB consent to each advance. As of June 30, 2026, first mortgage loans with a carrying value of $688.8 million were pledged to FHLB. At June 30, 2026, the Company also had available lines of credit amounting to $76.5 million with five correspondent banks, disbursements on the lines of credit are subject to the approval of the correspondent banks. As of June 30, 2026, debt securities and loans with a carrying amount of $92.8 million were pledged as collateral to the Federal Reserve Bank. The Company monitor its liquidity position on daily basis and believes its current funding sources, including deposits, borrowing capacity, unencumbered liquid assets, and access to the federal funds market, are adequate to meet its ongoing operating needs.
Previous wording
Net Income. Net income for the three months ended March 31, 2026, were $4.7 million or $0.39 per basic share and $0.20 per diluted share compared to net income of $3.9 million or $0.33 per basic share and $0.17 per diluted share for the three months ended March 31, 2025. The increase in net income during the three months ended March 31, 2026, compared to three months ended March 31, 2025, is primarily attributed to an increase in net interest income and noninterest income.
Current wording
Net income. Net income for the three months ended June 30, 2026, were 6.7 million or $.40 per basic share and $.28 per diluted share compared to net income of $3.6 million or $.31 per basic share and $.15 per diluted share for the three months ended June 30, 2025. The Company’s strong financial performance during the quarter was primarily driven by growth in net interest income and noninterest income, reflecting continued execution of its relationship-based banking strategy.
Previous wording
Interest income. Interest income increased by $4.4 million to $19.5 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, the increase was primarily attributed to the increase in average balances of interest earning assets.
Current wording
Interest income. Interest income increased to $21.7 million for the three months ended June 30, 2026, compared to $15.6 million for the three months ended June 30, 2025 due primarily to increases in average balances of interest earning assets.
Previous wording
***Interest expense.***Interest expense increased by $0.7 million to $6.3 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to an increase in average interest-bearing liability balances.
Current wording
***Interest expense.***Interest expense increased to $7.0 million for the three months ended June 30, 2026, compared to $5.3 million for the three months ended June 30, 2025, primarily due to an increase in average interest-bearing liability balances, and a decrease in the cost of interest-bearing liabilities.
Previous wording
Credit loss expense. The Company recorded a credit loss expense of $0.8 million for the three months ended March 31, 2026, compared to a credit loss reversal of ($0.2) million for the three months ended March 31, 2025. The expected credit loss expense is charged to earnings as losses are expected to have occurred in order to bring the total allowance for credit losses to a level deemed appropriate by management to absorb losses expected. Management’s periodic evaluation of the adequacy of the allowance for credit losses is based upon historical experience, the volume and type of lending conducted by the Company, adverse situations that may affect the borrower’s ability to repay, estimated value of the underlying collateral, general economic conditions, particularly as they relate to our market areas, and other factors related to the estimated collectability of our loan portfolio. The allowance for credit losses totaled $11.1 million or 1.01% of loans outstanding at March 31, 2026, compared to $10.3 million or 1.07% of loans outstanding at December 31, 2025. During the three-months ended March 31, 2026, the net charge-off amounting to $3,000 resulted from consumer lending.
Current wording
Credit loss expense. The Company recorded a credit loss recovery of $37,000 and a $1.0 million expense for the three months ended June 30, 2026, and 2025, respectively. The improvement primarily reflects the continued strength of the Company’s credit quality and management’s evaluation of the factors used to estimate expected credit losses, partially offset by continued growth in the loan portfolio. Expected credit losses are charged to earnings to maintain the allowance for credit losses at a level deemed appropriate by management to absorb losses expected. Management’s periodic evaluation of the adequacy of the allowance for credit losses is based upon historical experience, the volume and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of the underlying collateral, general economic conditions, particularly within the Company’s market areas, and other factors affecting the estimated collectability of loans. The allowance for credit losses totaled $11.0 million, or 0.91% of total loans outstanding, at June 30, 2026, compared to $10.3 million, or 1.07% of total loans outstanding, at December 31, 2025. Net charge-offs during the three months ended June 30, 2026 totaled $11,000 and were limited to the consumer loan portfolio.
Previous wording
Noninterest income. Total noninterest income was $1.8 million for the three months ended March 31, 2026, compared to $1.2 for the three months ended March 31, 2025. The increase reflects an increase in service charges and fees related to banking services.
Current wording
Noninterest income. Total noninterest income was $2.5 million for the three months ended June 30, 2026, compared to $1.8 for the three months ended June 30, 2025. The increase reflects consistent performance in wire transfer and ACH fees, and gains on the sale of government guaranteed SBA loans.
Previous wording
Noninterest expenses. Total noninterest expenses increased to $8.0 million for the three months ended March 31, 2026, compared to $5.6 million for the three months ended March 31, 2025, primarily due prior quarter adjustments to year-end incentive compensation combined with seasonal increases in payroll taxes and other employee benefits and continued investments in personnel.
Current wording
Noninterest expenses. Total noninterest expenses increased to $8.4 million for the three months ended June 30, 2026, compared to $6.2 million for the three months ended June 30, 2025, primarily due to employee compensation and benefits, data processing fees, and other expenses.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Comparison of the six-month periods ended June 30, 2026, and 2025