“OptimumBank Holdings, Inc. achieved net earnings of $4.85 million in the fourth quarter of 2025, marking a significant increase from prior periods, with total assets expanding to $1.11 billion, gross loans surging to $958.79 million, and a robust net interest margin of 4.39%. For the full year, net earnings reached $16.64 million, driven by strong growth in net interest income and operational efficiency, positioning the company for continued expansion in community banking.”
Q4 2025 Earnings Overview
OptimumBank Holdings, Inc., a bank holding company overseeing a Florida-chartered commercial bank, reported impressive financial gains in the final quarter of 2025. Net earnings climbed to $4.85 million, translating to $0.42 per basic share and $0.21 per diluted share. This performance outpaced the third quarter’s net earnings of $4.32 million ($0.37 basic, $0.18 diluted) and surpassed the fourth quarter of the previous year’s $3.95 million ($0.38 basic, $0.18 diluted).
The full-year results were equally strong, with net earnings totaling $16.64 million, or $1.42 per basic share and $0.71 per diluted share. This represented a substantial improvement over the prior year’s $13.12 million ($1.39 basic, $0.63 diluted), fueled by a $7.90 million rise in net interest income and a $2.15 million boost in noninterest income. These gains were partially tempered by higher noninterest expenses and tax obligations.
Balance Sheet Expansion and Asset Quality
Total assets expanded to $1.11 billion by the end of the quarter, reflecting a $28.64 million increase from the prior quarter and a $178.75 million year-over-year growth, equivalent to a 19.16% rise. This expansion underscores the company’s strategic focus on scaling operations while maintaining financial stability.
Gross loans experienced remarkable growth, rising by $145.07 million, or 17.83%, to $958.79 million. Key contributors included a $141.64 million increase in commercial real estate loans and a $7.30 million uptick in residential real estate loans. Commercial and consumer loans also advanced by $2.59 million and $2.44 million, respectively, though land and construction loans dipped by $7.15 million and multi-family real estate by $1.74 million. This diversified loan growth highlights the effectiveness of the company’s relationship-driven lending approach in attracting new business.
The allowance for credit losses stood at $10.27 million, representing 1.07% of total loans, a prudent level given the portfolio’s quality. Gross charge-offs were minimal at $201,000, with recoveries of $67,000 yielding net charge-offs of $134,000. Credit loss expense moderated to $0.40 million, benefiting from enhanced credit metrics and portfolio assessments.
On the liability side, total deposits eased to $931.75 million, a $27.74 million decline from the third quarter, primarily due to a $47.45 million drop in noninterest-bearing demand deposits to $266.52 million, influenced by seasonal year-end fluctuations in business accounts. Despite the quarterly dip, deposits grew $159.56 million annually, a 20.66% increase. The company supplemented funding with $50 million in Federal Home Loan Bank advances.
Stockholders’ equity strengthened to $121.90 million, up $5.00 million from the prior quarter and $18.71 million year-over-year, driven by retained earnings. Fully diluted tangible book value per share advanced to $5.18, a 16.9% improvement, signaling enhanced shareholder value.
Income Statement Breakdown
Net interest income for the quarter reached $11.87 million, marking an $0.82 million increase from the third quarter and a $2.64 million gain from the same period last year. This uplift stemmed from higher yields on loans and earning assets, coupled with reduced costs on interest-bearing liabilities. The cost of interest-bearing liabilities fell to 3.34%, down 14 basis points from the prior quarter, while yields on interest-earning assets held steady at 6.45%. Consequently, the net interest margin improved to 4.39%, up two basis points sequentially and 20 basis points annually.
For the full year, net interest margin averaged 4.28%, a 45 basis point enhancement over the previous year, reflecting disciplined pricing and balance sheet management amid fluctuating interest rates.
Noninterest income totaled $1.73 million, down $0.26 million from the third quarter, largely due to reduced loan prepayment fees. Noninterest expenses rose to $6.74 million, attributed to heightened marketing efforts, though offset by lower staffing costs. The efficiency ratio remained solid at 49.59%, demonstrating effective cost controls alongside revenue growth.
Pre-tax pre-provision net revenue stood at $6.86 million for the quarter, up from $6.43 million in the third quarter, highlighting operational resilience.
Performance Metrics and Ratios
Return on average assets hit 1.77% for the quarter (annualized), an improvement from 1.68% in the prior quarter and 1.62% in the same period last year. For the year, it averaged 1.64%, up from 1.42% previously.
Return on average equity reached 16.23% (annualized), compared to 15.17% in the third quarter. Return on average tangible assets mirrored the ROAA at 1.77%.
The net loan-to-deposit ratio climbed to 101.67%, reflecting robust lending activity relative to deposits. Capital adequacy remained strong, with a Tier 1 leverage ratio of 11.39%, well exceeding regulatory thresholds.
The net interest spread widened to 3.11%, up 13 basis points sequentially, while the efficiency ratio improved by 1.09 points.
Quarterly Trends Table
The following table outlines key consolidated financial highlights across recent quarters:
Strategic Initiatives and Outlook
| Metric (Dollars in thousands except per share amounts) | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q4 2025 vs Q3 2025 Change | Q4 2025 vs Q4 2024 Change |
|---|---|---|---|---|---|---|---|
| Selected Balance Sheet Data | |||||||
| Total assets | 1,111,678 | 1,083,043 | 999,127 | 977,468 | 932,933 | 28,635 | 178,745 |
| Total gross loans | 958,793 | 813,722 | 784,564 | 800,244 | 804,240 | 145,071 | 154,553 |
| Total deposits | 931,750 | 959,487 | 878,865 | 852,934 | 772,195 | (27,737) | 159,555 |
| Earnings Highlights | |||||||
| Net earnings | 4,853 | 4,323 | 3,602 | 3,870 | 3,949 | 530 | 904 |
| Diluted earnings per share (EPS) | 0.21 | 0.18 | 0.15 | 0.17 | 0.18 | 0.02 | 0.03 |
| Net interest income | 11,871 | 11,048 | 10,242 | 9,426 | 9,235 | 823 | 2,636 |
| Performance Ratios | |||||||
| Net interest margin | 4.39% | 4.37% | 4.32% | 4.06% | 4.19% | 0.02% | 0.20% |
| Net interest spread | 3.11% | 2.98% | 3.08% | 2.87% | 2.90% | 0.13% | 0.21% |
| Cost of interest-bearing liabilities | 3.34% | 3.48% | 3.49% | 3.59% | 4.02% | (0.14)% | (0.68)% |
| Efficiency ratio | 49.59% | 50.68% | 51.18% | 52.79% | 42.53% | (1.09)% | 7.05% |
| Net loan-to-deposit ratio | 101.67% | 83.67% | 88.13% | 92.77% | 102.95% | 18.00% | (1.28)% |
| Return on (annualized) | |||||||
| Average assets (ROAA) | 1.77% | 1.68% | 1.48% | 1.62% | 1.62% | 0.09% | 0.15% |
| Average equity (ROAE) | 16.23% | 15.17% | 13.10% | 14.66% | 16.19% | 1.08% | 0.04% |
| Average tangible assets (ROTA) | 1.77% | 1.68% | 1.48% | 1.62% | 1.62% | 0.09% | 0.15% |
| Pre-tax pre-provision net revenue (PPNR) | 6,855 | 6,426 | 5,895 | 5,031 | 5,921 | 429 | 934 |
| Other Operating Measures | |||||||
| Common shares outstanding | 11,533,943 | 11,883,943 | 11,751,082 | 11,751,082 | 11,636,092 | (350,000) | (102,149) |
| Non-diluted tangible book value per share | 10.57 | 9.84 | 9.50 | 9.12 | 8.87 | 0.73 | 1.70 |
The company’s performance reflects a commitment to core banking principles, with plans to broaden into complementary financial services. A new subsidiary, funded via a bank dividend, aims to provide specialized financing options, such as bridge-to-HUD loans and FHA/HUD-insured originations for multifamily and healthcare properties. This initiative, set for rollout in the coming year, leverages existing expertise in skilled nursing, senior housing, and multifamily sectors.
Investments in technology and talent continue to bolster the company’s position as a leading community bank in its market, with a focus on sustainable growth and customer relationships.
Disclaimer: This news report is for informational purposes only and does not constitute financial advice, investment recommendations, or tips. Sources include public financial disclosures.