OptimumBank Holdings, Inc.

OptimumBank reported record second-quarter net income of $6.7 million, up 43% from Q1 and 85% from Q2 last year. Net income was $6.66 million, or $0.40 per basic share and $0.28 per diluted share. Net interest income increased to $14.7 million, up about $1.5 million sequentially and $4.5 million year over year, while net interest margin expanded to 4.57% versus 4.49% in Q1 and 4.14% a year ago. Pre-tax income was $8.84 million, with a $37,000 reversal of credit loss expense and noninterest income of $2.49 million. Gross loans were about $1.22 billion at June 30, deposits were about $1.21 billion, total assets were $1.4 billion, equity was $134.4 million, and tangible book value per diluted share was $5.65. For the first half of 2026, pre-tax income was $15 million, net income was $11.3 million, basic EPS was $0.79, and diluted EPS was $0.48. Management said the quarterly run rate of about $0.28 per share supports raising annual earnings expectations to approximately $1.00 to $1.15 per share.

Moishe Gubin framed the quarter as evidence that the bank’s relationship-driven model is scaling, saying OptimumBank has become “a stronger and more profitable bank” as assets surpassed $1.4 billion. He emphasized disciplined underwriting, conservative risk management, and the growing earnings power from loan growth and new platforms like OptimumFunding and OptimumFinance. His tone was notably optimistic, saying he believes the company is still in the early stages of its long-term growth opportunity.

Elliot Nunez detailed the quarter’s financial progression: total interest income rose to $21.7 million, net interest income to $14.7 million, net interest margin to 4.57%, and pre-tax income to $8.84 million. He noted a $37,000 reversal of credit loss expense versus a $770,000 provision in Q1, noninterest income of $2.49 million, and noninterest expense of $8.38 million due to investment in personnel and technology. On credit and capital, he said the allowance for credit losses was 0.91% of loans, nonperforming assets were 0.22% of total assets, net charge-offs were 0%, and the Tier 1 leverage ratio was 10.54%.

Analysts pressed management on the new $1.00 to $1.15 annual earnings range, whether the $0.28 quarterly result was recurring, and what drove the upside versus earlier expectations. Gubin said the quarter was “a nice clean month,” that the $0.28 run rate should be repeatable if conditions stay constant, and that future earnings could rise further as more loans are put out at higher yields. Questions also focused on OptimumFinance, deposit growth, concentration risk, the adequacy of the 0.91% allowance, and the post-preferred exchange EPS share count. Management said OptimumFinance is already producing an over-18% average yield on roughly 24.1% portfolio growth, that deposit growth has come from deeper existing relationships and new treasury customers, that lending decisions are driven by borrower quality and pricing rather than concentration alone, and that the normalized share count is roughly 24.8 million.