Fort Lauderdale, FL, July 24, 2026 (GLOBE NEWSWIRE) -- OptimumBank Holdings, Inc. (NYSE American: OPHC) (the "Company") is a financial holding company and owns 100% of OptimumBank (the "Bank"), a Florida-chartered commercial bank, OptimumHUD Loans, LLC (d/b/a as OptimumFunding, LLC), a wholly owned non-bank Bridge and HUD-lender and OptimumFinance, LLC, a non-bank, wholly owned financing subsidiary. The Company is pleased to announce net income of $6.7 million, or $0.40 per basic share, and $0.28 per diluted share, for the second quarter of 2026, compared to $4.7 million, or $0.39 per basic share, and $0.20 per diluted share in the first quarter of 2026 and $3.6 million, or $0.31 per basic share, and $0.15 per diluted share, for the comparable quarter last year. For the six months ended June 30, 2026, net income was $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 increase of $3.8 million in net income for the six-month ended June 30, 2026, compared to the same period in 2025, was primarily driven by a $8.2 million improvement in net interest income and $1.2 million increase in noninterest income, partially offset by a $4.6 million increase in noninterest expenses and the corresponding increase in income tax expense. Diluted shares include the impact of the exchange of Series B and C preferred shares to nonvoting common stock that occurred during the second quarter of 2026.
The Company will host a webcast call to discuss the results of the second quarter of 2026 on August 13, 2026, at 1:00pm ET. Those interested in viewing the Company's presentation are encouraged to register for the live Webcast, at the following link: https://events.q4inc.com/attendee/432597526/guest?t=1784670390505. Company management will also be available to respond to questions at the conclusion of the presentation.
The Company continued with strong growth throughout the second quarter of 2026. The gross loan portfolio increased by $126.2 million, or 11.6%, from March 31, 2026 to $1.2 billion at June 30, 2026. Total deposits increased by $121.2 million from March 31, 2026, totaling $1.2 billion at June 30, 2026, or 11.1% from the prior quarter. This also represents growth of $335.2 million in total deposits since June 30, 2025, or an increase of 38.1%.
Highlights for the Second Quarter of 2026
● | Net income of $6.7 million, or $0.40 per basic share, and $0.28 per diluted share ("diluted EPS") for the quarter-ended June 30, 2026. | |
● | Return on Average Assets ("ROAA") was 2.04% for the second quarter of 2026, compared to 1.56% in the first quarter of 2026 (both annualized). | |
● | Return on Average Equity ("ROAE") was 20.34% for the second quarter of 2026, compared to 15.12% in the first quarter of 2026 (both annualized). | |
● | Net interest margin was 4.57%, reflecting an 8 basis point increase from 4.49% in the first quarter of 2026. | |
● | Total assets grew by $132.2 million to $1.4 billion from March 31, 2026. | |
● | Total deposits increased by $121.2 million to $1.2 billion from March 31, 2026. | |
● | Gross loans increased by $126.2 million during the quarter to $1.2 billion, compared to $1.1 billion at March 31, 2026. | |
● | Total stockholders' equity increased by $7.5 million to $134.4 million as of June 30, 2026, up from $126.9 million as of March 31, 2026, reflecting continued earnings retention. |
During the second quarter, the Company successfully completed its previously announced leadership transition. Effective May 1, 2026, Moishe Gubin, who has served as Chairman of the Board for more than sixteen years, assumed the additional role of Chief Executive Officer. Having played a central role in the Company's strategic direction, governance, and growth over the past decade and a half, Mr. Gubin brings deep institutional knowledge and a thorough understanding of the Bank's operations, customers, and long-term objectives. At the same time, Braden R. Smith joined the Bank as President, while Timothy Terry retired following thirteen years of dedicated service and continues to support the orderly transition of responsibilities. Together, the Company's experienced leadership team remains focused on executing its strategic growth initiatives and delivering long-term shareholder value.
"Our momentum continued to accelerate during the second quarter as we delivered another record quarter while executing on the strategic initiatives that position the Company for continued long-term growth," said Chairman of the Board and Chief Executive Officer Moishe Gubin. "We delivered record quarterly earnings while continuing to generate exceptional loan and deposit growth, expand our net interest margin, and maintain strong credit quality. At the same time, we have begun executing on our strategy to expand into complementary financial services through OptimumFinance, further diversifying our platform for future growth. We remain focused on creating long-term value for our shareholders."
Net interest income for the quarter-ended June 30, 2026 increased to $14.7 million, up by $1.5 million from the first quarter of 2026 and $4.5 million from the second quarter of 2025, supported by higher yields on loans and securities and lower costs on interest-bearing liabilities. The cost of interest-bearing liabilities was 3.30%, down by 19 basis points from 3.49% in the second quarter of 2025, while interest-earning asset yields rose 22 basis points to 6.75%. The Company's net interest margin rose 25 basis points from the second quarter of 2025 to 4.57% as of quarter-ended June 30, 2026, a reflection of disciplined loan and deposit pricing strategy, prudent liquidity management, and balance sheet optimization.
Noninterest income for the quarter-ended June 30, 2026 increased to $2.5 million, or by $0.7 million from the prior quarter, primarily driven by an increase in gains on the sale of government guaranteed SBA loans and increases in service charges and fees related to banking services. Noninterest expenses increased to $8.4 million, or $0.4 million from the first quarter, primarily relating to an increase in employee compensation expenses. The Company's efficiency ratio (non-GAAP measure) was 48.78% for the second quarter of 2026, consistent with prudent cost management amid balance sheet expansion and associated revenue expansion.
Credit loss reversal for the quarter-ended June 30, 2026 was $0.4 million, primarily due to improvements in the credit quality of the loan portfolio and the evaluation of factors used to determine the credit loss, partially offset by the growth in the loan portfolio. Gross charge-offs remained modest at $50,000 while recoveries totaled $39,000 resulting in net charge-offs of only $11,000 during the second quarter of 2026. The allowance for credit losses stood at $11.0 million as of June 30, 2026, or 0.91% of total loans.
Loan portfolio growth remained strong in the second quarter of 2026. Gross loans increased by $126.2 million from the prior quarter. Commercial real estate continued to expand, growing by $114.9 million in the second quarter. Additionally, there were increases in the consumer, land and construction, commercial, and residential portfolio segments, up $6.7 million, $5.3 million, $5.3 million, and $5.1 million, respectively. These gains were partially offset by a decline of $11.1 million in multi-family real estate.
The continued growth experienced in the loan portfolio is due to the implementation of our relationship-based banking model and the success of our lenders in competing for new business, as well as OptimumFinance, LLC commencing activity in the second quarter of 2026. OptimumFinance, LLC completed its first loan in the second quarter of 2026 for $14.2 million, and is expected to continue growing through 2026. During the quarter, OptimumFinance, LLC issued a $14.0 million note payable to fund its first loan which is guaranteed by the Company. OptimumFinance leveraged their balance sheet to attain the highest yield they could earn for the risk they took in the loan they made.
On the funding side, total deposits increased by $121.2 million to $1.2 billion from the first quarter of 2026, with strong sequential growth across all deposit categories. The Company had $25.0 million in Federal Home Loan Bank ("FHLB") advances outstanding at June 30, 2026, a decrease of $15.0 million from March 31, 2026.
The Bank's capital levels remain strong, with a Tier 1 Leverage Ratio of 10.54%, well above regulatory minimums. The Company remains well positioned to support continued growth and earnings momentum. The modest decline from the prior quarter of 20 basis points reflects strong asset growth, as capital deployment into earning assets outpaced retained earnings, while capital levels remain well above regulatory requirements.
The Company's outlook remains constructive. During the first quarter of 2026, OptimumBank was ranked number 49 out of 3,465 U.S. community banks by S&P Global Market Intelligence, placing the Company among the top 1.4% nationwide. During the second quarter of 2026, the Company was named among the top 10% of publicly traded community banks in the nation in the Raymond James Community Bankers Cup. The Company's growing visibility within the investment community was further demonstrated during the quarter as Alliance Global Partners and Brean Capital initiated equity research coverage with Buy ratings, while Compass Point upgraded its rating on the Company from Neutral to Buy. As a result, all three independent equity research firms currently covering the Company maintain Buy ratings. The Company continues to invest in technology, talent, and targeted growth initiatives that reinforce its position as one of the most dynamic and rapidly growing community banks in South Florida. We remain grateful for the trust and partnership of our shareholders, customers, and employees.
The following table presents the Company's quarterly trends of the consolidated financial highlights (unaudited) for the periods presented (see below for a summary of non-GAAP reconciliation):
Quarterly Trends | 2Q26 change vs | |||||||||||||||||||||||||||
2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q26 | 2Q25 | ||||||||||||||||||||||
Selected Balance Sheet Data | ||||||||||||||||||||||||||||
Total assets | $ | 1,400,937 | $ | 1,268,735 | $ | 1,111,678 | $ | 1,083,043 | $ | 999,127 | $ | 132,202 | $ | 401,810 | ||||||||||||||
Total gross loans | $ | 1,217,083 | $ | 1,090,894 | $ | 958,793 | $ | 813,722 | $ | 784,564 | $ | 126,190 | $ | 432,519 | ||||||||||||||
Total deposits | $ | 1,214,045 | $ | 1,092,883 | $ | 931,750 | $ | 959,487 | $ | 878,865 | $ | 121,162 | $ | 335,180 | ||||||||||||||
Earnings Highlights | ||||||||||||||||||||||||||||
Net income | $ | 6,655 | $ | 4,663 | $ | 4,853 | $ | 4,323 | $ | 3,602 | $ | 1,992 | $ | 3,053 | ||||||||||||||
Diluted earnings per share (EPS) | $ | 0.28 | $ | 0.20 | $ | 0.21 | $ | 0.18 | $ | 0.15 | $ | 0.08 | $ | 0.13 | ||||||||||||||
Net interest income | $ | 14,697 | $ | 13,190 | $ | 11,871 | $ | 11,048 | $ | 10,242 | $ | 1,507 | $ | 4,455 | ||||||||||||||
Performance Ratios | ||||||||||||||||||||||||||||
Net interest margin | 4.57 | % | 4.49 | % | 4.39 | % | 4.37 | % | 4.32 | % | 0.08 | % | 0.25 | % | ||||||||||||||
Net interest spread | 3.45 | % | 3.36 | % | 3.11 | % | 2.98 | % | 3.08 | % | 0.09 | % | 0.37 | % | ||||||||||||||
Cost of interest-bearing liabilities | 3.30 | % | 3.26 | % | 3.34 | % | 3.48 | % | 3.49 | % | 0.05 | % | (0.19 | )% | ||||||||||||||
Efficiency ratio | 48.78 | % | 53.47 | % | 49.59 | % | 50.68 | % | 51.18 | % | (4.69 | )% | (2.40 | )% | ||||||||||||||
Loan-to-deposit ratio | 99.20 | % | 98.69 | % | 101.67 | % | 83.67 | % | 88.13 | % | 0.52 | % | 11.07 | % | ||||||||||||||
Return on (annualized) | ||||||||||||||||||||||||||||
Average assets (ROAA) | 2.04 | % | 1.56 | % | 1.77 | % | 1.68 | % | 1.48 | % | 0.47 | % | 0.55 | % | ||||||||||||||
Average equity (ROAE) | 20.34 | % | 15.12 | % | 16.23 | % | 15.17 | % | 13.10 | % | 5.22 | % | 7.24 | % | ||||||||||||||
Average tangible assets (ROTA) | 2.04 | % | 1.56 | % | 1.77 | % | 1.68 | % | 1.48 | % | 0.47 | % | 0.55 | % | ||||||||||||||
Pre-tax pre-provision net revenue (PPNR) | $ | 8,801 | $ | 6,968 | $ | 6,855 | $ | 6,426 | $ | 5,895 | $ | 1,833 | $ | 2,906 | ||||||||||||||
Other Operating Measures | ||||||||||||||||||||||||||||
Common Shares outstanding - Voting | 12,340,785 | 12,166,858 | 11,533,943 | 11,883,943 | 11,751,082 | 173,927 | 589,703 | |||||||||||||||||||||
Common Shares outstanding - Nonvoting | 11,458,351 | - | - | - | - | 11,458,351 | 11,458,351 | |||||||||||||||||||||
Fully diluted shares outstanding | 23,799,136 | 23,625,209 | 23,523,473 | 23,523,473 | 23,390,612 | 177,053 | 408,524 | |||||||||||||||||||||
Fully diluted tangible book value per share | $ | 5.65 | $ | 5.37 | $ | 5.18 | $ | 4.97 | $ | 4.76 | $ | 0.28 | $ | 0.89 | ||||||||||||||
Tier 1 Capital to total assets | 10.54 | % | 10.74 | % | 11.39 | % | 11.71 | % | 11.89 | % | (0.20 | )% | (1.35 | )% |
Financial Results
Statement of Income
Net income was $6.7 million for the second quarter of 2026, compared to net income of $4.7 million for the first quarter of 2026, and $3.6 million for the second quarter of 2025. The increase from the first quarter of 2026 was primarily due to an increase in interest income to $21.7 million, compared to $19.5 million in the first quarter, primarily driven by an increase in interest income on loans. Additionally, there was a $0.8 million decline in credit loss expense and a $0.7 million increase in noninterest income, partially offset by increases of $0.7 million and $0.4 million in interest expense and noninterest expense, respectively.
Total interest income was $21.7 million for the second quarter of 2026, compared to $19.5 million in the first quarter of 2026 and $15.6 million in the second quarter of 2025. The sequential growth was driven by a $2.3 million increase in interest income from loans. Compared to the second quarter of 2025, the increase was primarily due to a $338.6 million increase in average loan balances.
The following table depicts the components of interest income (unaudited) for the quarterly periods presented:
Quarterly Trends | 2Q26 change vs | |||||||||||||||||||||||||||
2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q26 | 2Q25 | ||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||
Loans | $ | 20,386 | $ | 18,114 | $ | 15,437 | $ | 14,082 | $ | 14,026 | $ | 2,272 | $ | 6,360 | ||||||||||||||
Debt securities | 204 | 191 | 164 | 153 | 158 | 13 | 46 | |||||||||||||||||||||
Other | 1,134 | 1,148 | 1,837 | 2,086 | 1,404 | (14 | ) | (270 | ) | |||||||||||||||||||
Total interest income | $ | 21,724 | $ | 19,453 | $ | 17,438 | $ | 16,321 | $ | 15,588 | $ | 2,271 | $ | 6,136 |
Interest expense totaled $7.0 million for the second quarter of 2026, compared to $6.3 million for the first quarter of 2026 and $5.3 million for the second quarter of 2025. Compared to the first quarter of 2026, the increase in interest expense was primarily attributable to a $73.8 million increase in average interest-bearing liability balances, and a four basis point increase in the cost of interest-bearing liabilities from 3.26% to 3.30%. Compared to the second quarter of 2025, there was a $158.9 million increase in average interest-bearing liability balances, with a 19 basis point decrease in the cost of interest-bearing liabilities, from 3.49% to 3.30%.
Net interest income was $14.7 million in the second quarter of 2026, up from $13.2 million in the first quarter of 2026 and $10.2 million in the second quarter of 2025. The quarter-over-quarter increase was primarily driven by growth in the average interest-earning assets of $98.2 million, partially offset by the increase in average interest-bearing liability balances and the higher cost on interest-bearing liabilities. On a year-over-year basis, the growth in net interest income was primarily attributable to a $338.6 million increase in average loan balances.
Net interest margin expanded to 4.57% for the second quarter of 2026, compared to 4.49% for the first quarter of 2026 and 4.32% for the second quarter of 2025. Compared to the first quarter of 2026, net interest margin increased by eight basis points, primarily driven by the increase in interest-bearing assets. Compared to the second quarter of 2025, net interest margin increased by 25 basis points, primarily attributable to a decrease in the cost of interest-bearing liabilities and an increase in loan yields.
The cost of interest-bearing liabilities was 3.30% in the second quarter of 2026, up from 3.26% in the first quarter of 2026 and down from 3.49% in the second quarter of 2025. The increase from the first quarter of 2026 was primarily due to a note payable issued by the OptimumFinance, LLC subsidiary during the quarter at 10.00% with an average balance of $10.9 million and modestly higher yields on savings, NOW, and money market deposits. Excluding the note payable impact, the cost of interest-bearing liabilities was 3.21%, or five basis points lower from the first quarter of 2026. Compared to the same quarter last year, the cost of interest-bearing liabilities decreased by 19 basis points. This reduction was due to a decrease in yields across the deposit portfolio with disciplined pricing following rate reductions partially offset by an increase in borrowings.
Credit loss expense was a $0.4 million reversal during the second quarter of 2026, compared to $0.8 million of expense in the first quarter of 2026, and $1.0 million of expense for the second quarter of 2025. The decrease in credit loss expense from the first quarter was primarily attributable to improvements in the credit quality of the loan portfolio and the evaluation of factors used to determine the credit loss, partially offset by the $132.1 million increase in gross loan balances. Gross charge-offs remained modest at $50,000 while recoveries totaled $39,000, resulting in net charge-offs of $11,000 during the second quarter of 2026. The Company's allowance for credit losses stood at $11.0 million, or 0.91% of total loans, as of June 30, 2026 compared to 1.01% at March 31, 2026 and 1.19% at June 30, 2025.
Noninterest income totaled $2.5 million for the second quarter of 2026, up from $1.8 million in the prior quarter and $1.8 million in the second quarter of 2025. The quarter-over-quarter increase of $0.7 million was primarily driven by an increase in gains on the sale of government guaranteed SBA loans and increases in service charges and fees related to banking services. Compared to the same quarter last year, the $0.7 million increase in noninterest income was primarily related to increases in wire transfers, ACH fees on deposit payment transactions and gains on the sale of government guaranteed SBA loans.
Noninterest expenses totaled $8.4 million for the second quarter of 2026, compared to $8.0 million in the first quarter of 2026 and $6.2 million in the second quarter of 2025. Compared to the first quarter of 2026, the increase of $0.4 million primarily relates to a $0.3 million increase in employee compensation expenses. Compared to the second quarter of 2025, the increase of $2.2 million includes increases of $1.5 million, $0.4 million, and $0.2 million in employee compensation expenses, data processing, and other expenses, respectively.
The following table depicts the components of noninterest expenses (unaudited) for the quarterly periods presented:
Quarterly Trends | 2Q26 change vs | |||||||||||||||||||||||||||
(Dollars in thousands) | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q26 | 2Q25 | |||||||||||||||||||||
Noninterest expenses | ||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 5,279 | $ | 4,988 | $ | 3,672 | $ | 4,004 | $ | 3,738 | $ | 291 | $ | 1,541 | ||||||||||||||
Professional fees | 363 | 295 | 333 | 276 | 275 | 68 | 88 | |||||||||||||||||||||
Occupancy and equipment | 354 | 338 | 328 | 327 | 294 | 16 | 60 | |||||||||||||||||||||
Data processing | 986 | 914 | 794 | 788 | 625 | 72 | 361 | |||||||||||||||||||||
Regulatory assessment | 196 | 179 | 161 | 126 | 202 | 17 | (6 | ) | ||||||||||||||||||||
Losses on sale and write-downs of other real estate owned | - | 5 | 54 | - | - | (5 | ) | - | ||||||||||||||||||||
Other | 1,204 | 1,287 | 1,401 | 1,083 | 1,047 | (83 | ) | 157 | ||||||||||||||||||||
Total noninterest expenses | $ | 8,382 | $ | 8,006 | $ | 6,743 | $ | 6,604 | $ | 6,181 | $ | 376 | $ | 2,201 |
Income tax expense was $2.2 million for the second quarter of 2026 compared to $1.5 million in the first quarter of 2026 and $1.3 million in the second quarter of 2025. The effective tax rate for the quarter was 24.7%, compared to 24.8% in the prior quarter and 25.8% from the prior year comparative quarter.
Balance Sheet
Total assets were $1.40 billion as of June 30, 2026, increasing from $1.27 billion at March 31, 2026, and up from $999.1 million at June 30, 2025. The quarter-over-quarter growth of $132.2 million was primarily attributable to a $125.8 million increase in net loans and a $6.2 million increase in cash and cash equivalents.
Cash and cash equivalents at June 30, 2026, were $146.2 million, which increased from $140.0 million at March 31, 2026, and decreased from $181.8 million at June 30, 2025.
Investment securities (debt securities available for sale and held-to-maturity) at June 30, 2026, were $26.9 million, compared to $27.3 million at March 31 2026, and $22.6 million at June 30, 2025. There were no debt security purchases during the second quarter of 2026. No sales of debt securities were reported during these periods.
Total gross loans at June 30, 2026, were $1.22 billion, an increase from $1.09 million at March 31, 2026, and up from $784.6 million at June 30, 2025. Gross loans increased during the quarter reflecting growth in commercial real estate, consumer, land and construction, commercial, consumer, and residential loans. Compared to June 30, 2025, the gross loan portfolio increased by $432.5 million, reflecting growth primarily in commercial real estate.
The allowance for credit losses ("ACL") was $11.0 million as of June 30, 2026, representing 0.91% of total loans, compared to 1.01% at March 31, 2026. The ACL balance saw a decrease from $11.1 million at March 31, 2026 and increased from $9.3 million at June 30, 2025, respectively. The quarter-over-quarter decrease of $41,000 million was, primarily driven by improvements in the credit quality of the loan portfolio and the evaluation of factors used to determine the credit loss, partially offset by the growth in the loan portfolio. The ACL ratio reflects continued credit discipline and a well-diversified loan portfolio.
The following table presents the components of the ACL (unaudited) as of the dates indicated:
June 30, 2026 change vs | ||||||||||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | June 30, | ||||||||||||||||||||||
2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
Beginning balance | $ | 11,061 | $ | 10,273 | $ | 10,018 | $ | 9,338 | $ | 8,270 | $ | 788 | $ | 2,791 | ||||||||||||||
Credit loss expense (reversal) – funded | (30 | ) | 791 | 389 | 639 | 1,043 | (821 | ) | (1,073 | ) | ||||||||||||||||||
Charge-offs | (50 | ) | (44 | ) | (201 | ) | (129 | ) | (72 | ) | (6 | ) | 22 | |||||||||||||||
Recoveries | 39 | 41 | 67 | 170 | 97 | (2 | ) | (58 | ) | |||||||||||||||||||
Ending balance | $ | 11,020 | $ | 11,061 | $ | 10,273 | $ | 10,018 | $ | 9,338 | $ | (41 | ) | $ | 1,682 |
Nonaccrual loans totaled $2.1 million at June 30, 2026, compared to $2.2 million at March 31, 2026, and $3.2 million at June 30, 2025. The decrease from the prior year was primarily due to a decrease in commercial, and consumer nonaccrual loans of $1.1 million. As of June 30, 2026, there were no loans accruing interest that were 90 days or more past due. Subsequent to June 30, 2026, a nonaccrual loan with a balance of $1.0 million was settled. Additionally, the Company did not report any modified loans to borrowers experiencing financial difficulty during the second quarter of 2026.
Nonperforming assets ("NPA") reflected strong asset quality at June 30, 2026. Nonaccrual loans decreased to $2.1 million from $2.2 million at March 31, 2026 and $3.2 million at June 30, 2025. The $0.1 million decrease from March 31, 2026 was due to payments received on nonaccrual loans. The $1.1 million decrease from June 30, 2025 included payoffs from previously recorded nonaccrual loans, along with the sale of other real estate owned.
Total deposits at June 30, 2026, were $1.21 billion, an increase from $1.09 billion at March 31, 2026, and an increase from $878.9 million at June 30, 2025. The increase from March 31, 2026, was attributable to increases in all deposit categories, with a 15.6% increase in time deposits and a $14.5 million, or 4.8% increase in noninterest-bearing demand deposits. The increase from June 30, 2025 was also attributable to increases in all deposit categories, most notably a 60.7% increase in time deposits and a 22.9% increase in noninterest-bearing demand deposits. The Company continues to maintain a diverse and stable funding base.
Accumulated other comprehensive loss ("AOCL") was $4.8 million at June 30, 2026, compared to $4.7 million at March 31, 2026, and $5.4 million at June 30, 2025. The AOCL increased by $0.1 million quarter-over-quarter, primarily due to the increase in mid to long-term interest rates impacting the fair value of available-for-sale securities. Year-over-year, AOCL improved by $0.6 million, reflecting the net impact of favorable fair value changes over the trailing twelve months, resulting in unrealized gains. All AOCL amounts represent unrealized gains and losses, net of applicable income taxes, and have no impact on reported earnings or regulatory capital.
Shareholders' equity was $134.4 million as of June 30, 2026, compared to $126.8 million as of March 31, 2026, and $111.3 million as of June 30, 2025. The increase during the second quarter was principally attributable to net income of $6.7 million, $0.9 million in additional equity through the Company's ongoing at-the-market ("ATM") offering, and $0.1 million related to the exchange of Series B and C Preferred shares for nonvoting common stock, partially offset by the $0.1 million increase in AOCL.
Earnings Per Share ("EPS") for the quarter-ended June 30, 2026, the Company reported $0.40 per basic share and $0.28 diluted EPS, compared to $0.39 and $0.20 per basic share and diluted EPS, respectively, for the quarter-ended March 31, 2026, and $0.31 and $0.15 per basic share and diluted EPS, respectively, for the quarter-ended June 30, 2025. The increase was primarily driven by strong growth in net income, which increased from $3.6 million for the quarter-ended June 30, 2025, to $6.7 million for the quarter-ended June 30, 2026. Diluted earnings per share for prior periods have been retrospectively adjusted to reflect the amended conversion rights of the Series B Convertible Preferred Stock, which became effective during the third quarter of 2025, to ensure comparability. Additionally, during the second quarter of 2026, the Company amended its Articles of Incorporation to authorize a new class of Nonvoting Common Stock and exchanged all outstanding Series B and Series C Convertible Preferred Stock for an aggregate of 11,458,351 shares of Nonvoting Common Stock. Because the Series B and Series C Convertible Preferred Stock had already been reflected in the Company's diluted weighted-average share count under the if-converted method, the exchange did not materially affect diluted earnings per share or dilute existing shareholders' ownership interests. The primary impact was on the weighted-average common shares used in the calculation of basic earnings per share, as the exchange occurred during the quarter and basic EPS reflects the timing of the conversion. Accordingly, this release presents both basic and diluted earnings per share to facilitate comparability with prior periods and to reflect the transition in the Company's capital structure during the quarter. Absent future dilutive securities or other changes in the Company's capital structure, the Company expects basic and diluted earnings per share to be identical in future filings.
Although GAAP accounting generally presents book value based on common shares outstanding, the Company believes a more comprehensive measure of shareholder value is on a fully diluted basis.
Tangible book value per diluted share at June 30, 2026, was $5.65 at June 30, 2026, up $0.28 per share, or 20.9% annualized from $5.37 at March 31, 2026 on a fully diluted basis, and up $0.89, or 18.7% from $4.76 at June 30, 2025. This is based on total common shares outstanding of 23,799,136 at June 30, 2026 (up from 23,625,209 shares on a fully diluted basis at March 31, 2026, and up from 23,390,612 shares on a fully diluted basis at June 30, 2025). Additional common shares totaling 174,348 common shares were issued in the quarter-ended June 30, 2026 through the Company's ATM offering. During the second quarter of 2026, the Company exchanged all outstanding Preferred Stock shares, or 1,295 and 875,641 shares of related party Series B Convertible Preferred Stock and Series C Convertible Preferred Stock, respectively, for a total of 11,458,351 shares of Nonvoting Common Stock (see below for further information). This exchange did not change the ownership interests of existing shareholders or result in economic dilution, but rather simplified the Company's capital structure and future financial reporting by replacing the convertible preferred shares with an equivalent number of nonvoting common shares.
The increase in tangible book value per diluted share reflects strong quarterly earnings performance and overall capital strength.
FORWARD-LOOKING STATEMENTS
Certain statements made in this report which are not statements of historical fact are forward-looking statements within the meaning of, and subject to the protection of, the federal securities laws. Forward looking statements include, among others, statements with respect to our beliefs, plans, objectives, goals, targets, expectations, anticipations, assumptions, estimates, intentions and future performance and involve known and unknown risks, many of which are beyond our control and which may our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements made in this report. You can identify forward-looking statements through our use of words such as "believes," "anticipates," "expects," "may," "will," "assumes," "should," "predicts," "could," "should," "would," "intends," "targets," "estimates," "projects," "plans," "potential" and other similar words and expressions. Forward-looking statements are based on our current beliefs and expectations and are subject to significant risks and uncertainties. Accordingly, we caution you not to place undue reliance on such statements. We undertake no obligation to update or revise any of our forward-looking statements for events or circumstances that arise after the statement is made, except as otherwise may be required by law.
Investor Relations & Corporate Relations
Contact: Seth Denison
Telephone: (305) 401-4140
Email: SDenison@OptimumBank.com
OptimumBank Holdings, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
June 30, 2026 change vs | ||||||||||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | June 30, | ||||||||||||||||||||||
2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Cash and due from banks | $ | 14,637 | $ | 15,074 | $ | 9,349 | $ | 9,271 | $ | 8,833 | $ | (437 | ) | $ | 5,804 | |||||||||||||
Interest-bearing deposits with banks | 131,601 | 124,942 | 105,210 | 225,815 | 172,921 | 6,659 | (41,320 | ) | ||||||||||||||||||||
Total cash and cash equivalents | 146,238 | 140,016 | 114,559 | 235,086 | 181,754 | 6,222 | (35,516 | ) | ||||||||||||||||||||
Debt securities available for sale | 26,646 | 27,044 | 25,184 | 22,926 | 22,378 | (398 | ) | 4,268 | ||||||||||||||||||||
Debt securities held-to-maturity | 208 | 212 | 214 | 246 | 260 | (4 | ) | (52 | ) | |||||||||||||||||||
Loans, net of allowance for credit losses | 1,204,381 | 1,078,533 | 947,294 | 802,812 | 774,548 | 125,848 | 429,833 | |||||||||||||||||||||
Federal Home Loan Bank stock | 1,966 | 2,678 | 3,028 | 658 | 658 | (712 | ) | 1,308 | ||||||||||||||||||||
Premises and equipment, net | 3,132 | 2,797 | 2,490 | 2,308 | 2,426 | 335 | 706 | |||||||||||||||||||||
Other real estate owned | - | - | 551 | - | - | |||||||||||||||||||||||
Right-of-use lease assets | 2,405 | 2,511 | 2,617 | 2,725 | 2,552 | (106 | ) | (147 | ) | |||||||||||||||||||
Accrued interest receivable | 4,862 | 3,994 | 3,621 | 3,171 | 3,138 | 868 | 1,724 | |||||||||||||||||||||
Deferred tax asset | 3,143 | 3,116 | 3,108 | 3,238 | 3,135 | 27 | 8 | |||||||||||||||||||||
Other assets | 7,956 | 7,834 | $ | 9,012 | $ | 9,873 | $ | 8,278 | 122 | (322 | ) | |||||||||||||||||
Total assets | $ | 1,400,937 | $ | 1,268,735 | 1,111,678 | 1,083,043 | 999,127 | $ | 132,202 | $ | 401,810 | |||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 319,375 | $ | 304,887 | $ | 266,520 | $ | 313,973 | $ | 259,816 | $ | 14,488 | $ | 59,559 | ||||||||||||||
Savings, NOW and money-market deposits | 383,297 | 345,494 | 306,921 | 309,087 | 300,907 | 37,803 | 82,390 | |||||||||||||||||||||
Time deposits | 511,373 | 442,502 | 358,309 | 336,427 | 318,142 | 68,871 | 193,231 | |||||||||||||||||||||
Total deposits | 1,214,045 | 1,092,883 | 931,750 | 959,487 | 878,865 | 121,162 | 335,180 | |||||||||||||||||||||
Federal Home Loan Bank advances | 25,000 | 40,000 | 50,000 | - | - | (15,000 | ) | 25,000 | ||||||||||||||||||||
Operating lease liabilities | 2,547 | 2,647 | 2,745 | 2,846 | 2,661 | (100 | ) | (114 | ) | |||||||||||||||||||
Other Borrowings | 14,000 | - | - | - | - | 14,000 | 14,000 | |||||||||||||||||||||
Other liabilities | 10,965 | 6,357 | 5,286 | 3,822 | 6,253 | 4,608 | 4,712 | |||||||||||||||||||||
Total liabilities | 1,266,557 | 1,141,887 | 989,781 | 966,155 | 887,779 | 124,670 | 378,778 | |||||||||||||||||||||
Stockholders' equity | ||||||||||||||||||||||||||||
Preferred stock | - | |||||||||||||||||||||||||||
Series B Convertible Preferred | - | - | - | - | - | - | - | |||||||||||||||||||||
Series C Convertible Preferred | - | - | - | - | - | - | - | |||||||||||||||||||||
Common stock | 124 | 122 | 115 | 119 | 118 | 2 | 6 | |||||||||||||||||||||
Nonvoting Common stock | 115 | - | - | - | - | 115 | 115 | |||||||||||||||||||||
Additional paid-in capital | 113,832 | 112,993 | 112,578 | 112,574 | 112,010 | 839 | 1,822 | |||||||||||||||||||||
Retained earnings (accumulated deficit) | 25,119 | 18,464 | 13,801 | 8,948 | 4,625 | 6,655 | 20,494 | |||||||||||||||||||||
Accumulated other comprehensive loss | (4,810 | ) | (4,731 | ) | (4,597 | ) | (4,753 | ) | (5,405 | ) | (79 | ) | 595 | |||||||||||||||
Total stockholders' equity | 134,380 | 126,848 | 121,897 | 116,888 | 111,348 | 7,532 | 23,032 | |||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,400,937 | $ | 1,268,735 | $ | 1,111,678 | $ | 1,083,043 | $ | 999,127 | $ | 132,202 | $ | 401,810 |
OptimumBank Holdings, Inc.
Consolidated Statements of Earnings - Quarterly (Unaudited)
(Dollars in thousands, except per share amounts)
Quarterly Trends | 2Q26 change vs | |||||||||||||||||||||||||||
2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q26 | 2Q25 | ||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||
Loans | $ | 20,386 | 18,114 | 15,437 | 14,082 | 14,026 | $ | 2,272 | $ | 6,360 | ||||||||||||||||||
Debt securities | 204 | 191 | 164 | 153 | 158 | 13 | 46 | |||||||||||||||||||||
Other | 1,134 | 1,148 | 1,837 | 2,086 | 1,404 | (14 | ) | (270 | ) | |||||||||||||||||||
Total interest income | 21,724 | 19,453 | 17,438 | 16,321 | 15,588 | 2,271 | 6,136 | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Deposits | 6,633 | 6,176 | 5,561 | 5,273 | 5,322 | 457 | 1,311 | |||||||||||||||||||||
Borrowings | 394 | 87 | 6 | - | 24 | 307 | 370 | |||||||||||||||||||||
Total interest expense | 7,027 | 6,263 | 5,567 | 5,273 | 5,346 | 764 | 1,681 | |||||||||||||||||||||
Net interest income | 14,697 | 13,190 | 11,871 | 11,048 | 10,242 | 1,507 | 4,455 | |||||||||||||||||||||
Credit loss expense (reversal) | (37 | ) | 770 | 398 | 763 | 1,040 | (807 | ) | (1,077 | ) | ||||||||||||||||||
Net interest income after credit loss expense (reversal) | 14,734 | 12,420 | 11,473 | 10,285 | 9,202 | 700 | 3,378 | |||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Service charges and fees | 1,551 | 1,313 | 1,268 | 1,252 | 1,099 | 238 | 452 | |||||||||||||||||||||
Other | 935 | 471 | 459 | 730 | 735 | 464 | 200 | |||||||||||||||||||||
Total noninterest income | 2,486 | 1,784 | 1,727 | 1,982 | 1,834 | 702 | 652 | |||||||||||||||||||||
Noninterest expenses | ||||||||||||||||||||||||||||
Salaries and employee benefits | 5,279 | 4,988 | 3,672 | 4,004 | 3,738 | 291 | 1,541 | |||||||||||||||||||||
Professional fees | 363 | 295 | 333 | 276 | 275 | 68 | 88 | |||||||||||||||||||||
Occupancy and equipment | 354 | 338 | 328 | 327 | 294 | 16 | 60 | |||||||||||||||||||||
Data processing | 986 | 914 | 794 | 788 | 625 | 72 | 361 | |||||||||||||||||||||
Regulatory assessment | 196 | 179 | 161 | 126 | 202 | 17 | (6 | ) | ||||||||||||||||||||
Losses on sale and write-downs of other real estate owned | - | 5 | 54 | - | - | (5 | ) | - | ||||||||||||||||||||
Other | 1,204 | 1,287 | 1,401 | 1,083 | 1,047 | (83 | ) | 157 | ||||||||||||||||||||
Total noninterest expenses | 8,382 | 8,006 | 6,743 | 6,604 | 6,181 | 376 | 2,201 | |||||||||||||||||||||
Income before income taxes | 8,838 | 6,198 | 6,457 | 5,663 | 4,855 | 2,640 | 3,983 | |||||||||||||||||||||
Income taxes | 2,183 | 1,535 | 1,604 | 1,340 | 1,253 | 648 | 930 | |||||||||||||||||||||
Net Income | $ | 6,655 | 4,663 | 4,853 | 4,323 | 3,602 | $ | 1,992 | $ | 3,053 | ||||||||||||||||||
Earnings per share - Basic | $ | 0.40 | 0.39 | 0.42 | 0.37 | 0.31 | $ | 0.01 | $ | 0.10 | ||||||||||||||||||
Earnings per share - Diluted | $ | 0.28 | 0.20 | 0.21 | 0.18 | 0.15 | $ | 0.08 | $ | 0.13 |
OptimumBank Holdings, Inc.
Consolidated Statements of Earnings - Quarterly (Unaudited)
(Dollars in thousands, except per share amounts)
Six Months Ended | ||||||||||||
June 30, | ||||||||||||
2026 | 2025 | Change | ||||||||||
Interest income | ||||||||||||
Loans | $ | 38,501 | $ | 27,627 | $ | 10,874 | ||||||
Debt securities | 396 | 318 | 78 | |||||||||
Other | 2,282 | 2,650 | (368 | ) | ||||||||
Total interest income | 41,179 | 30,595 | 10,584 | |||||||||
Interest expense | ||||||||||||
Deposits | 12,808 | 10,600 | 2,208 | |||||||||
Borrowings | 481 | 327 | 154 | |||||||||
Total interest expense | 13,289 | 10,927 | 2,362 | |||||||||
Net interest income | 27,890 | 19,668 | 8,222 | |||||||||
Credit loss expense | 733 | 875 | (142 | ) | ||||||||
Net interest income after credit loss expense | 27,157 | 18,793 | 8,364 | |||||||||
Noninterest income | ||||||||||||
Service charges and fees | 2,863 | 2,137 | 726 | |||||||||
Other | 1,406 | 928 | 478 | |||||||||
Total noninterest income | 4,269 | 3,065 | 1,204 | |||||||||
Noninterest expenses | ||||||||||||
Salaries and employee benefits | 10,268 | 7,119 | 3,149 | |||||||||
Professional fees | 658 | 522 | 136 | |||||||||
Occupancy and equipment | 693 | 576 | 117 | |||||||||
Data processing | 1,900 | 1,158 | 742 | |||||||||
Regulatory assessment | 375 | 400 | (25 | ) | ||||||||
Other | 2,496 | 2,032 | 462 | |||||||||
Total noninterest expenses | 16,390 | 11,807 | 4,583 | |||||||||
Income before income taxes | 15,036 | 10,051 | 4,985 | |||||||||
Income taxes | 3,718 | 2,579 | 1,139 | |||||||||
Net Income | $ | 11,318 | $ | 7,472 | $ | 3,846 | ||||||
Earnings per share - Basic | $ | 0.79 | $ | 0.64 | $ | 0.16 | ||||||
Earnings per share - Diluted | $ | 0.48 | $ | 0.32 | $ | 0.16 |
OptimumBank Holdings, Inc.
Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (QTD) (Unaudited)
(Dollars in thousands, except average yields/rates)
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
2Q26 | 1Q26 | 2Q25 | ||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||
Average | and | Yield/ | Average | and | Yield/ | Average | and | Yield/ | ||||||||||||||||||||||||||||
Balance | Dividends | Rate(1) | Balance | Dividends | Rate(1) | Balance | Dividends | Rate(1) | ||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||
Loans | $ | 1,141,791 | 20,386 | 7.16 | % | $ | 1,041,583 | $ | 18,114 | 7.05 | % | $ | 803,171 | $ | 14,026 | 6.99 | % | |||||||||||||||||||
Securities | 27,042 | 204 | 3.03 | % | 26,527 | 191 | 2.92 | % | 22,684 | 158 | 2.79 | % | ||||||||||||||||||||||||
Other (2) | 121,282 | 1,134 | 3.75 | % | 123,845 | 1,148 | 3.76 | % | 123,254 | 1,404 | 4.56 | % | ||||||||||||||||||||||||
Total interest-earning assets/interest income | 1,290,115 | 21,724 | 6.75 | % | 1,191,955 | 19,453 | 6.62 | % | 949,109 | 15,588 | 6.57 | % | ||||||||||||||||||||||||
Cash and due from banks | 14,702 | 10,656 | 12,833 | |||||||||||||||||||||||||||||||||
Premises and equipment | 2,825 | 2,684 | 2,336 | |||||||||||||||||||||||||||||||||
Other | 4,025 | 4,641 | 8,421 | |||||||||||||||||||||||||||||||||
Total assets | $ | 1,311,667 | $ | 1,209,936 | $ | 972,699 | ||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Savings, NOW and money-market deposits | $ | 367,750 | 2,168 | 2.36 | % | $ | 334,816 | $ | 1,896 | 2.30 | % | $ | 280,454 | $ | 1,742 | 2.48 | % | |||||||||||||||||||
Time deposits | 462,792 | 4,465 | 3.87 | % | 436,205 | 4,280 | 3.98 | % | 330,118 | 3,580 | 4.34 | % | ||||||||||||||||||||||||
Borrowings (3) | 23,455 | 394 | 3.37 | % | 9,224 | 87 | 3.83 | % | 2,222 | 24 | 4.32 | % | ||||||||||||||||||||||||
Notes Payable | 10,770 | 276 | 10.28 | % | - | - | - | - | - | - | ||||||||||||||||||||||||||
Total interest-bearing liabilities/interest expense | 853,997 | 7,027 | 3.30 | % | 780,245 | 6,263 | 3.26 | % | 612,794 | 5,346 | 3.49 | % | ||||||||||||||||||||||||
Noninterest-bearing demand deposits | 314,858 | 296,750 | 241,457 | |||||||||||||||||||||||||||||||||
Other liabilities | 11,584 | 7,852 | 8,502 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 131,228 | 125,089 | 109,946 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,311,667 | $ | 1,209,936 | $ | 972,699 | ||||||||||||||||||||||||||||||
Net interest income | 14,697 | $ | 13,190 | $ | 10,242 | |||||||||||||||||||||||||||||||
Interest-rate spread (4) | 3.45 | % | 3.36 | % | 3.08 | % | ||||||||||||||||||||||||||||||
Net interest margin (5) | 4.57 | % | 4.49 | % | 4.32 | % | ||||||||||||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 1.51 | 1.53 | 1.55 |
(1 | ) | Annualized. |
(2 | ) | Includes interest-earning deposits with banks and Federal Home Loan Bank stock dividends. |
(3 | ) | Includes Federal Home Loan Bank |
(4 | ) | Interest rate spread represents the difference between average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
(5 | ) | Net interest margin is net interest income divided by average interest-earning assets. |
OptimumBank Holdings, Inc.
Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (YTD) (Unaudited)
(Dollars in thousands, except average yields/rates)
Six Months Ended June 30, | ||||||||||||||||||||||||
2026 | 2025 | |||||||||||||||||||||||
Interest | Average | |||||||||||||||||||||||
Average | Average | and | Yield/ | |||||||||||||||||||||
Balance | Balance | Dividends | Rate(1) | |||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||
Loans | $ | 1,091,687 | 38,501 | 7.11 | % | $ | 800,008 | $ | 27,627 | 6.91 | % | |||||||||||||
Securities | 26,784 | 396 | 2.98 | % | 22,831 | 318 | 2.79 | % | ||||||||||||||||
Other (2) | 122,562 | 2,282 | 3.75 | % | 116,559 | 2,650 | 4.55 | % | ||||||||||||||||
Total interest-earning assets/interest income | 1,241,033 | 41,179 | 6.69 | % | 939,398 | 30,595 | 6.51 | % | ||||||||||||||||
Cash and due from banks | 12,679 | 13,504 | ||||||||||||||||||||||
Premises and equipment | 2,754 | 2,238 | ||||||||||||||||||||||
Other | 4,321 | 8,134 | ||||||||||||||||||||||
Total assets | $ | 1,260,787 | $ | 963,274 | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Savings, NOW and money-market deposits | $ | 351,283 | 4,063 | 2.33 | % | $ | 278,733 | $ | 3,493 | 2.51 | % | |||||||||||||
Time deposits | 449,498 | 8,745 | 3.92 | % | 321,117 | 7,107 | 4.43 | % | ||||||||||||||||
Borrowings (3) | 16,340 | 209 | 3.85 | % | 17,223 | 327 | 3.80 | % | ||||||||||||||||
Notes Payable | 5,385 | 272 | 10.18 | % | - | - | - | |||||||||||||||||
Total interest-bearing liabilities/interest expense | 817,121 | 13,289 | 3.28 | % | 617,073 | 10,927 | 3.54 | % | ||||||||||||||||
Noninterest-bearing demand deposits | 305,803 | 230,330 | ||||||||||||||||||||||
Other liabilities | 9,705 | 8,102 | ||||||||||||||||||||||
Stockholders' equity | 128,158 | 107,769 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,260,787 | $ | 963,274 | ||||||||||||||||||||
Net interest income | 27,890 | $ | 19,668 | |||||||||||||||||||||
Interest-rate spread (4) | 3.41 | % | 2.97 | % | ||||||||||||||||||||
Net interest margin 5) | 4.53 | % | 4.19 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 1.52 | 1.52 |
(1 | ) | Annualized. |
(2 | ) | Includes interest-earning deposits with banks and Federal Home Loan Bank stock dividends. |
(3 | ) | Includes Federal Home Loan Bank |
(4 | ) | Interest rate spread represents the difference between average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
(5 | ) | Net interest margin is net interest income divided by average interest-earning assets. |
OptimumBank Holdings, Inc.
Segments of Loans Analysis (Unaudited)
(Dollars in thousands)
June 30, 2026 change vs | ||||||||||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | June 30, | ||||||||||||||||||||||
2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
Residential real estate | $ | 78,268 | $ | 73,130 | $ | 74,018 | $ | 66,723 | $ | 66,602 | $ | 5,138 | $ | 11,666 | ||||||||||||||
Multi-family real estate | 52,551 | 63,655 | 65,693 | 67,435 | 68,321 | (11,104 | ) | (15,770 | ) | |||||||||||||||||||
Commercial real estate | 905,174 | 790,238 | 666,508 | 524,865 | 478,224 | 114,936 | 426,950 | |||||||||||||||||||||
Land and construction | 46,290 | 41,000 | 36,212 | 43,364 | 61,126 | 5,290 | (14,836 | ) | ||||||||||||||||||||
Commercial | 51,389 | 46,127 | 48,196 | 45,604 | 50,351 | 5,262 | 1,038 | |||||||||||||||||||||
Consumer | 83,411 | 76,744 | 68,166 | 65,731 | 59,940 | 6,667 | 23,471 | |||||||||||||||||||||
Total loans | 1,217,083 | 1,090,894 | 958,793 | 813,722 | 784,564 | 126,190 | 432,519 | |||||||||||||||||||||
Deduct: | ||||||||||||||||||||||||||||
Net deferred loan fees and costs | (1,683 | ) | (1,300 | ) | (1,227 | ) | (892 | ) | (678 | ) | (383 | ) | (1,005 | ) | ||||||||||||||
Allowance for credit losses | (11,020 | ) | (11,061 | ) | (10,273 | ) | (10,018 | ) | (9,338 | ) | 41 | (1,682 | ) | |||||||||||||||
Loans, net | $ | 1,204,380 | $ | 1,078,533 | $ | 947,293 | $ | 802,812 | $ | 774,548 | $ | 125,848 | $ | 429,832 |
Explanation of Certain Unaudited Non-GAAP Financial Measures
This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles ("GAAP"). Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.
Non-GAAP Reconciliations
Pre-tax, Pre-provision earnings
(Dollars in thousands) | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | |||||||||||||||
Net Income (GAAP) | $ | 6,655 | $ | 4,663 | $ | 4,853 | $ | 4,323 | $ | 3,602 | ||||||||||
Plus: Income Tax Expense | 2,183 | 1,535 | 1,604 | 1,340 | 1,253 | |||||||||||||||
Plus: Credit Loss Expense (Reversal) | (37 | ) | 770 | 398 | 763 | 1,040 | ||||||||||||||
Pre-tax, Pre-provision earnings (Non-GAAP) | 8,801 | 6,968 | 6,855 | 6,426 | 5,895 |
Tangible Book Value Per Common Share and Per Fully Diluted Share (Unaudited)
(Dollars in thousands, except per share amounts) | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | |||||||||||||||
Total Stockholders' (GAAP) and Tangible Common Equity | $ | 134,380 | $ | 126,848 | $ | 121,897 | $ | 116,888 | $ | 111,348 | ||||||||||
Common Shares Outstanding - Voting | 12,341 | 12,167 | 11,534 | 11,884 | 11,751 | |||||||||||||||
Common Shares Outstanding - Nonvoting | 11,458 | - | - | - | - | |||||||||||||||
Total Common Shares | 23,799 | 12,167 | 11,534 | 11,884 | 11,751 | |||||||||||||||
Effect of conversion of series B preferred shares if converted | - | 10,582 | 11,114 | 11,114 | 11,114 | |||||||||||||||
Effect of conversion of series C preferred shares if converted | - | 876 | 876 | 526 | 526 | |||||||||||||||
Total Diluted Shares | 23,799 | 23,625 | 23,524 | 23,524 | 23,391 | |||||||||||||||
Tangible Book Value per Share - Diluted | $ | 5.65 | $ | 5.37 | $ | 5.18 | $ | 4.97 | $ | 4.76 |