OptimumBank Holdings Inc.
11/10/2025 | Press release | Distributed by Public on 11/10/2025 07:31
Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Comparison of the nine-month periods ended September 30, 2025, and 2024
| Nine Months Ended | Increase / | |||||||||||||||
| (Dollars in thousands, except per share | September 30, | (Decrease) | ||||||||||||||
| amounts) | 2025 | 2024 | Amount | Percentage | ||||||||||||
| Total interest income | $ | 46,916 | $ | 43,986 | $ | 2,930 | 7 | % | ||||||||
| Total interest expense | 16,200 | 18,533 | (2,333 | ) | (13 | )% | ||||||||||
| Net interest income | 30,716 | 25,453 | 5,263 | 21 | % | |||||||||||
| Credit loss expense | 1,638 | 1,610 | 28 | 2 | % | |||||||||||
| Net interest income after credit loss expense | 29,078 | 23,843 | 5,235 | 22 | % | |||||||||||
| Total noninterest income | 5,047 | 3,555 | 1,492 | 42 | % | |||||||||||
| Total noninterest expenses | 18,411 | 15,078 | 3,333 | 22 | % | |||||||||||
| Net earnings before income taxes | 15,714 | 12,320 | 3,394 | 28 | % | |||||||||||
| Income taxes | 3,919 | 3,147 | 772 | 25 | % | |||||||||||
| Net earnings | $ | 11,795 | $ | 9,173 | 2,622 | 29 | % | |||||||||
| Net earnings per share - Basic | $ | 1.00 | $ | 1.02 | ||||||||||||
| Net earnings per share - Diluted(1) | $ | 0.50 | $ | 0.45 | ||||||||||||
| (1) | On October 1, 2025, the Company amended the terms of the Series B preferred shares, as detailed in Note 10 to the consolidated financial statements. This amendment affected the calculation of diluted earnings per share, and accordingly, all periods diluted EPS figures have been restated to reflect the new dilution structure. This ensures a consistent basis of comparison. |
Net earnings. Net earnings for the nine months ended September 30, 2025, were $11.8 million or $1.00 per basic share and $.50 per diluted share compared to net earnings of $9.2 million or $1.02 per basic share and $.45 per diluted share for the nine months ended September 30, 2024. The increase in net earnings during the nine months ended September 30, 2025 compared to nine months ended September 30, 2024 is primarily attributed to an increase in net interest income and noninterest income.
Interest income. Interest income increased to $46.9 million for the nine months ended September 30, 2025 compared to $44.0 million for the nine months ended September 30, 2024. The increase is due primarily to the growth in the average balances of interest earning assets.
Interest expense. Interest expense decreased by $2.3 million to $16.2 million for the nine months ended September 30, 2025, compared to $18.5 million for the nine months ended September 30, 2024, primarily due to a reduction in deposit rates and changes in the composition of deposits.
Credit loss expense. The Company recorded a credit loss expense of $1.64 million for the nine months ended September 30, 2025, compared to $1.61 million for the nine months ended September 30, 2024, respectively. 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 $10.0 million or 1.23% of loans outstanding at September 30, 2025, compared to $8.7 million or 1.08% of loans outstanding at December 31, 2024. During the nine-months ended September 30, 2025, the net charge off amounting to $181,000 resulted from consumer lending.
Noninterest income. Total noninterest income increased to $5.0 million for the nine months ended September 30, 2025, compared to $3.6 million for the nine months ended September 30, 2024, due to increased wire transfer and ACH fees during the nine months ended September 30, 2025.
Noninterest expenses. Total noninterest expenses increased to $18.4 million for the nine months ended September 30, 2025, compared to $15.1 million for the nine months ended September 30, 2024, primarily due to employee compensation and benefits, occupancy and equipment, and other expenses.
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