OptimumBank Holdings, Inc 10-Q for FY2026 Q3
OptimumBank Holdings, Inc. (OPHC)
About this 10-Q
OptimumBank Holdings, Inc filed this 10-Q on November 13, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
OptimumBank Holdings, Inc. reported net income of $18.5 million for the nine months ended September 30, 2026, up 57%, while total assets reached $1.6 billion. AI summary
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Net income
- $7.17M
- up 65.9% from net income of $4.32M a year earlier
- Diluted EPS
- $0.30
- up 66.7% from $0.18 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For
the quarterly period ended
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from __________ to _________
Commission
File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
(Address of principal executive offices, Zip Code)
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data
File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant was required to submit and post such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
| Large accelerated filer ☐ | Accelerated filer ☐ | |
| Smaller reporting company | ||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: shares of voting common stock, $ par value, issued and outstanding as of November 13, 2026. shares of nonvoting common stock, $ par value, issued and outstanding as of November 13, 2026.
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
INDEX
| i |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets: | ||||||||
| Cash and due from banks | $ | $ | ||||||
| Interest-bearing deposits with banks | ||||||||
| Total cash and cash equivalents | ||||||||
| Debt securities available for sale | ||||||||
| Debt securities held-to-maturity (fair value of $ | ||||||||
| Loans, net of allowance for credit losses of $ | ||||||||
| Federal Home Loan Bank stock | ||||||||
| Premises and equipment, net | ||||||||
| Other real estate owned | ||||||||
| Right-of-use lease assets | ||||||||
| Accrued interest receivable | ||||||||
| Deferred tax asset | ||||||||
| Other assets | ||||||||
| Total assets | $ | $ | ||||||
| Liabilities and Stockholders’ Equity: | ||||||||
| Liabilities: | ||||||||
| Noninterest-bearing demand deposits | $ | $ | ||||||
| Savings, NOW and money-market deposits | ||||||||
| Time deposits | ||||||||
| Total deposits | ||||||||
| Federal Home Loan Bank advances | ||||||||
| Operating lease liabilities | ||||||||
| Subordinated Debt | ||||||||
| Other Borrowings | ||||||||
| Other liabilities | ||||||||
| Total liabilities | ||||||||
| Commitments and contingencies (Notes 9 and 13) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | ||||||||
| Series B Convertible Preferred, | ||||||||
| Series C Convertible Preferred, | ||||||||
| Preferred stock, value | ||||||||
| Common stock, $ par value; shares authorized, and shares issued and outstanding | ||||||||
| Nonvoting Common stock, $ par value; and shares authorized, and shares issued and outstanding | ||||||||
| Additional paid-in capital | ||||||||
| Retained earnings | ||||||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
| Total stockholders’ equity | ||||||||
| Total liabilities and stockholders’ equity | $ | $ | ||||||
See accompanying notes to condensed consolidated financial statements.
| 1 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (Unaudited)
(Dollars in thousands, except per share amounts)
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Interest income: | ||||||||||||||||
| Loans | $ | $ | $ | |||||||||||||
| Debt securities | ||||||||||||||||
| Other | ||||||||||||||||
| Total interest income | ||||||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | ||||||||||||||||
| Borrowings | ||||||||||||||||
| Interest on subordinated debt | ||||||||||||||||
| Total interest expense | ||||||||||||||||
| Net interest income | ||||||||||||||||
| Credit loss expense | ||||||||||||||||
| Net interest income after credit loss expense | ||||||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges and fees | ||||||||||||||||
| Other | ||||||||||||||||
| Total noninterest income | ||||||||||||||||
| Noninterest expenses: | ||||||||||||||||
| Salaries and employee benefits | ||||||||||||||||
| Professional fees | ||||||||||||||||
| Occupancy and equipment | ||||||||||||||||
| Data processing | ||||||||||||||||
| Regulatory assessment | ||||||||||||||||
| Other | ||||||||||||||||
| Total noninterest expenses | ||||||||||||||||
| Income before income taxes | ||||||||||||||||
| Income taxes | ||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||
| Earnings per share - Basic | $ | $ | $ | $ | ||||||||||||
| Earnings per share - Diluted(1) | $ | $ | $ | $ | ||||||||||||
| (1) |
See accompanying notes to condensed consolidated financial statements.
| 2 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(Dollars in thousands)
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Three Months ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net Income | $ | $ | $ | $ | ||||||||||||
| Other comprehensive (loss) income: | ||||||||||||||||
| Change in unrealized loss on debt securities: | ||||||||||||||||
| Unrealized (loss) gain arising during the period | ( | ) | ( | ) | ||||||||||||
| Amortization of unrealized loss on debt securities transferred to held-to-maturity | ||||||||||||||||
| Other comprehensive income before income taxes | ( | ) | ( | ) | ||||||||||||
| Deferred income tax expense | ( | ) | ( | ) | ||||||||||||
| Total other comprehensive (loss) income | ( | ) | ( | ) | ||||||||||||
| Comprehensive income | $ | $ | $ | $ | ||||||||||||
See accompanying notes to condensed consolidated financial statements.
| 3 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)
Three and Nine Months Ended September 30, 2026 and 2025
(Dollars in thousands, except share amounts)
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Capital | earnings | Loss | Equity | |||||||||||||||||||||||||||||||||||||
| Three months ended September 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred Stock | Nonvoting | Additional | Other | |||||||||||||||||||||||||||||||||||||||||||||
| Series B | Series C | Common Stock | Common Stock | Paid-In | Retained | Comprehensive | Stockholders’ | |||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Capital | earnings | Loss | Equity | |||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 (Unaudited) | $ | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||||||||||||
| Proceeds from sale of common stock (net of offering costs of $ | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
| Net change in unrealized (loss) on debt securities available for sale (Unaudited) | - | - | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||
| Amortization of unrealized loss on debt securities transferred to held-to-maturity (Unaudited) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
| Net Income (Unaudited) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2026 (Unaudited) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||
| Nine months ended September 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred Stock | Nonvoting | Additional | Other | |||||||||||||||||||||||||||||||||||||||||||||
| Series B | Series C | Common Stock | Common Stock | Paid-In | Retained | Comprehensive | Stockholders’ | |||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Capital | earnings | Loss | Equity | |||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||
| Exchange of preferred stock for common stock (Unaudited) | ( | ) | - | - | ( | ) | ||||||||||||||||||||||||||||||||||||||||||
| Proceeds from sale of common stock (net of offering costs of $ | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
| Proceeds from sale of common stock (net of offering costs) (Unaudited) | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
| Exchange of preferred stock for Nonvoting common stock (Unaudited) | ( | ) | ( | ) | - | ( | ) | |||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation (Unaudited) | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
| Net change in unrealized loss on debt securities available for sale (Unaudited) | - | - | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||
| Amortization of unrealized loss on debt securities transferred to held-to-maturity (Unaudited) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
| Net income (Unaudited) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2026 (Unaudited) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||
| 4 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)
Three and Nine Months Ended September 30, 2026 and 2025
(Dollars in thousands, except share amounts)
| Three months ended September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||
| Preferred Stock | Additional | Accumulated Other | ||||||||||||||||||||||||||||||||||||||
| Series B | Series C | Common Stock | Paid-In | Retained | Comprehensive | Stockholders’ | ||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Capital | Earnings | Loss | Equity | |||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||||||||||||
| Offering costs related to common stock ($ | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||
| Stock-based Compensation | - | - | ||||||||||||||||||||||||||||||||||||||
| Net change in unrealized loss on debt securities available for sale | - | - | - | |||||||||||||||||||||||||||||||||||||
| Amortization of unrealized loss on debt securities transferred to held-to-maturity | - | - | - | |||||||||||||||||||||||||||||||||||||
| Net Income | - | - | - | |||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||||||||||||
| Nine months ended September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||
| Preferred Stock | Additional | Accumulated Other | ||||||||||||||||||||||||||||||||||||||
| Series B | Series C | Common Stock | Paid-In | Retained | Comprehensive | Stockholders’ | ||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Capital | Earnings | Loss | Equity | |||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||||||||||||
| Proceeds from sale of common stock (net of offering costs of $ | - | - | ||||||||||||||||||||||||||||||||||||||
| Proceeds from sale of common stock (net of offering costs) | - | - | ||||||||||||||||||||||||||||||||||||||
| Stock-based Compensation | - | - | ||||||||||||||||||||||||||||||||||||||
| Net change in unrealized loss on debt securities available for sale | - | - | - | |||||||||||||||||||||||||||||||||||||
| Net Income | - | - | - | |||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||||||||||||
See accompanying notes to condensed consolidated financial statements.
| 5 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)
| Nine Months ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | $ | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Credit loss expense | ||||||||
| Depreciation and amortization | ||||||||
| Gain on sale of other real estate owned | ( | ) | ||||||
| Deferred income tax expense (benefit) | ( | ) | ||||||
| Net amortization (accretion) of fees, premiums and discounts | ( | ) | ( | ) | ||||
| Stock-based compensation expense | ||||||||
| (Increase) decrease in accrued interest receivable | ( | ) | ||||||
| Amortization of right-of-use lease assets | ||||||||
| Net decrease in operating lease liabilities | ( | ) | ( | ) | ||||
| Decrease (increase) in other assets | ( | ) | ||||||
| Increase (decrease) in other liabilities | ( | ) | ||||||
| Net cash provided by operating activities | ||||||||
| Cash flows from investing activities: | ||||||||
| Principal repayments of debt securities available for sale | ||||||||
| Principal repayments of debt securities held-to-maturity | ||||||||
| Purchase of debt securities available for sale | ( | ) | ||||||
| Net (increase) decrease in loans | ( | ) | ( | ) | ||||
| Proceeds from sale of other real estate owned | ||||||||
| Purchases of premises and equipment | ( | ) | ( | ) | ||||
| Redemption of FHLB stock | ||||||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net increase in deposits | ||||||||
| Net decrease in FHLB Advances | ( | ) | ( | ) | ||||
| Increase in other borrowings | ||||||||
| Proceeds from sale of common stock, net | ||||||||
| Proceeds from the issuance of subordinated debt, net of issuance costs | ||||||||
| Net cash provided by financing activities | ||||||||
| Net increase in cash and cash equivalents | ||||||||
| Cash and cash equivalents at beginning of the period | ||||||||
| Cash and cash equivalents at end of the period | $ | $ | ||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | $ | ||||||
| Income taxes | $ | $ | ||||||
| Supplemental noncash transactions: | ||||||||
| Net change in unrealized gain (loss) on debt securities available for sale, net of income taxes | $ | ( | ) | $ | ||||
| Amortization of unrealized loss on debt securities transferred to held-to-maturity | $ | $ | ||||||
| Right-of-use lease assets obtained in exchange for operating lease liabilities | $ | $ | ||||||
See accompanying notes to condensed consolidated financial statements.
| 6 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(1)
General. OptimumBank Holdings, Inc. (the “Company”) is a financial holding company and owns
Basis of Presentation. In the opinion of management, the accompanying condensed consolidated financial statements of the Company contain all adjustments (consisting principally of normal recurring accruals) necessary to present fairly the financial position at September 30, 2026, the results of operations for the three-month and nine-month ended September 30, 2026 and 2025, and cash flows for the nine-month periods ended September 30, 2026 and 2025. All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three-month and nine-month ended September 30, 2026, are not necessarily indicative of the results to be expected for the full year of 2026.
Comprehensive Income. Accounting Principles Generally Accepted in the United States of America (“U.S. GAAP”) requires recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale debt securities are reported as a separate component of the equity section of the condensed consolidated balance sheets, such items along with net income, are components of comprehensive income.
Accumulated other comprehensive loss consists of the following (dollars in thousands):
Schedule of Accumulated Other Comprehensive Loss
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Unrealized loss on debt securities available for sale | $ | ( | ) | $ | ( | ) | ||
| Unamortized portion of unrealized loss related to debt securities available for sale transferred to securities held-to-maturity | ( | ) | ( | ) | ||||
| Income tax benefit | ||||||||
| Accumulated other comprehensive loss | $ | ( | ) | $ | ( | ) | ||
Accounting Pronouncements Not Yet Adopted:
Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”. This ASU amends the disclosure or presentation requirements related to various subtopics in the FASB ASC. The amendments in this ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company does not expect the adoption of ASU 2023-06 to have a material impact on its condensed consolidated financial statements and related disclosures.
FASB ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures”. This amendment requires enhanced disaggregation of certain expense categories within the income statement to provide more detailed information about the nature and function of expenses. The objective is to improve the transparency and usefulness of financial statements for users by offering greater insight into the components of operating expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. These changes may be applied prospectively or retroactively. Early adoption is permitted. The Company is currently evaluating the impact on its disclosures.
(continued)
| 7 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(1) General, Continued.
FASB ASU 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity”. The amendments improve the requirements for determining the accounting acquirer in certain acquisition transactions involving a variable interest entity. The amendments are effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual reporting periods, and are applied prospectively to acquisition transactions occurring after the initial application date. Early adoption is permitted. The Company does not expect the adoption of the amendments to have a material impact on its condensed consolidated financial statements.
FASB ASU 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Capitalization and Disclosure Improvements”. This amendment provides updated guidance on the capitalization of costs related to internal-use software and expands the required disclosures. The objective is to clarify when capitalization is appropriate and to enhance the transparency of financial reporting related to internal-use software development. The amendments in this update are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. The Company is evaluating the impact of this guidance; adoption is not expected to have a material effect on the Company’s condensed consolidated financial statements.
FASB ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. ASU 2025-11 clarifies interim disclosure requirements and provides a comprehensive list of interim disclosures that are required by GAAP. The ASU also includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The standard is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact of the changes to its condensed consolidated financial statements and existing disclosures.
(2) Debt Securities. Debt securities have been classified according to management’s intent. The amortized cost of debt securities and fair values are as follows (dollars in thousands):
Schedule of Amortized Cost and Approximate Fair Values of Debt Securities
| Gross | Gross | |||||||||||||||
| Amortized | Unrealized | Unrealized | Fair | |||||||||||||
| Cost | Gains | Losses | Value | |||||||||||||
| At September 30, 2026: | ||||||||||||||||
| Available for sale: | ||||||||||||||||
| SBA Pool Securities | $ | $ | $ | ( | ) | $ | ||||||||||
| Collateralized mortgage obligations | ( | ) | ||||||||||||||
| Taxable municipal securities | ( | ) | ||||||||||||||
| Mortgage-backed securities | ( | ) | ||||||||||||||
| Total | $ | $ | $ | ( | ) | $ | ||||||||||
| Held-to-maturity: | ||||||||||||||||
| Collateralized mortgage obligations | $ | $ | $ | ( | ) | $ | ||||||||||
| Total | $ | $ | $ | ( | ) | $ | ||||||||||
| At December 31, 2025: | ||||||||||||||||
| Available for sale: | ||||||||||||||||
| SBA Pool Securities | $ | $ | $ | ( | ) | $ | ||||||||||
| Collateralized mortgage obligations | ( | ) | ||||||||||||||
| Taxable municipal securities | ( | ) | ||||||||||||||
| Mortgage-backed securities | ( | ) | ||||||||||||||
| Total | $ | $ | $ | ( | ) | $ | ||||||||||
| Held-to-maturity: | ||||||||||||||||
| Collateralized mortgage obligations | $ | $ | $ | ( | ) | $ | ||||||||||
| Total | $ | $ | $ | ( | ) | $ | ||||||||||
(continued)
| 8 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(2) Debt Securities, Continued.
As
of September 30, 2026, debt securities with a carrying amount of $
Debt securities available for sale with gross unrealized losses, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position, is as follows (dollars in thousands):
Schedule of Debt Securities Available for Sale with Gross Unrealized Losses, by Investment Category
| Over Twelve Months | Less Than Twelve Months | |||||||||||||||
| Gross | Gross | |||||||||||||||
| Unrealized | Fair | Unrealized | Fair | |||||||||||||
| Losses | Value | Losses | Value | |||||||||||||
| At September 30, 2026: | ||||||||||||||||
| Available for Sale: | ||||||||||||||||
| SBA Pool Securities | $ | ( | ) | $ | $ | $ | ||||||||||
| Collateralized mortgage obligation | ( | ) | ||||||||||||||
| Taxable municipal securities | ( | ) | ||||||||||||||
| Mortgage-backed securities | ( | ) | ( | ) | ||||||||||||
| Total | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
| Over Twelve Months | Less Than Twelve Months | |||||||||||||||
| Gross | Gross | |||||||||||||||
| Unrealized | Fair | Unrealized | Fair | |||||||||||||
| Losses | Value | Losses | Value | |||||||||||||
| At December 31, 2025: | ||||||||||||||||
| Available for Sale: | ||||||||||||||||
| SBA Pool Securities | $ | ( | ) | $ | $ | $ | ||||||||||
| Collateralized mortgage obligation | ( | ) | ||||||||||||||
| Taxable municipal securities | ( | ) | ||||||||||||||
| Mortgage-backed securities | ( | ) | ||||||||||||||
| Total | $ | ( | ) | $ | $ | $ | ||||||||||
At
September 30, 2026 and December 31, 2025, the unrealized losses on
The Company performed an analysis that determined that the mortgage-backed securities, collateralized mortgage obligations, and SBA pool securities, have a zero expected credit loss as they have the full faith and credit backing of the U.S. government or one of its agencies. Municipal securities that do not have a zero expected credit loss are evaluated at least quarterly to determine whether there is a credit loss associated with a decline in fair value. At September 30, 2026 and December 31, 2025 all municipal securities were rated as investment grade. All debt securities in an unrealized loss position as of September 30, 2026 and December 31, 2025 continue to perform as scheduled and the Company does not believe that there is a credit loss or that credit loss expense is necessary. Also, as part of our evaluation of our intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers our investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. The Company does not currently intend to sell the investments within the portfolio, and it is not more-likely-than-not that a sale will be required.
Management continues to monitor all of our investments with a high degree of scrutiny. There can be no assurance that in a future period, conditions may exist at that time indicating that some or all of the Company’s securities may be sold that would require a charge to earnings as credit loss expense in such period.
The majority of the Company’s debt securities available-for-sale and held-to-maturity have contractual maturity dates which are greater than ten years as of September 30, 2026. Expected maturities of these debt securities will differ from contractual maturities because borrowers have the right to call or repay obligations with or without call or prepayment penalties
(continued)
| 9 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(3) Loans. The segments of loans are as follows (dollars in thousands):
Schedule of Components of Loans
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Residential real estate | $ | $ | ||||||
| Multi-family real estate | ||||||||
| Commercial real estate | ||||||||
| Land and construction | ||||||||
| Commercial | ||||||||
| Consumer | ||||||||
| Total loans | ||||||||
| Deduct: | ||||||||
| Net deferred loan fees and costs | ( | ) | ( | ) | ||||
| Allowance for credit losses | ( | ) | ( | ) | ||||
| Loans, net | $ | $ | ||||||
An analysis of the change in the allowance for credit losses follows (dollars in thousands):
Schedule of Changes in Allowance for Loan Losses
| Residential Real | Multi-Family Real | Commercial | Land and | |||||||||||||||||||||||||
| Estate | Estate | Real Estate | Construction | Commercial | Consumer | Total | ||||||||||||||||||||||
| Three Months Ended September 30, 2026: | ||||||||||||||||||||||||||||
| Beginning balance (June 30, 2026) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Credit loss expense (reversal) | ( | ) | ||||||||||||||||||||||||||
| Charge-offs | ( | ) | ( | ) | ||||||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||
| Ending balance (September 30, 2026) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Three Months Ended September 30, 2025: | ||||||||||||||||||||||||||||
| Beginning balance (June 30, 2025) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Credit loss (reversal) expense | ( | ) | ( | ) | ||||||||||||||||||||||||
| Charge-offs | ( | ) | ( | ) | ||||||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||
| Ending balance (September 30, 2025) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
(continued)
| 10 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(3) Loans, Continued.
| Residential Real | Multi-Family Real | Commercial | Land and | |||||||||||||||||||||||||
| Estate | Estate | Real Estate | Construction | Commercial | Consumer | Total | ||||||||||||||||||||||
| Nine Months Ended September 30, 2026: | ||||||||||||||||||||||||||||
| Beginning balance (December 31, 2025) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Credit loss expense (reversal) | ( | ) | ( | ) | ||||||||||||||||||||||||
| Charge-offs | ( | ) | ( | ) | ||||||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||
| Ending balance (September 30, 2026) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Nine Months Ended September 30, 2025: | ||||||||||||||||||||||||||||
| Beginning balance (December 31, 2024) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Beginning balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Credit loss (reversal) expense | ( | ) | ||||||||||||||||||||||||||
| Charge-offs | ( | ) | ( | ) | ||||||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||
| Ending balance (September 30, 2025) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Reconciliation of Credit Loss Expense (Reversal)
The following table provides a reconciliation of the credit loss expense (reversal) on the condensed consolidated statements of earnings between the funded and unfunded components at the dates indicated:
Schedule of Reconciliation of Credit Loss Expense (Reversal)
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Credit loss expense – funded | $ | $ | $ | $ | ||||||||||||
| Credit loss reversal- unfunded | ( | ) | ( | ) | ||||||||||||
| Total credit loss expense | $ | $ | $ | $ | ||||||||||||
(continued)
| 11 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(3) Loans, Continued.
The Company has divided the loan portfolio into six portfolio segments, each with different risk characteristics and methodologies for assessing risk. All loans are underwritten based upon standards set forth in the policies approved by the Bank’s Board of Directors. The Company identifies the portfolio segments as follows:
Residential Real Estate, Multi-Family Real Estate, Commercial Real Estate, Land and Construction. Residential real estate loans are underwritten based on repayment capacity and source, value of the underlying property, credit history and stability. The Company offers first and second one-to-four family mortgage loans; the collateral for these loans is generally the clients’ owner-occupied residences. Although these types of loans present lower levels of risk than commercial real estate loans, risks do still exist because of possible fluctuations in the value of the real estate collateral securing the loan, as well as changes in the borrowers’ financial condition. Multi-family and commercial real estate loans are secured by the subject property. Underwriting standards include, among other factors, loan to value limits, cash flow coverage and general creditworthiness of the obligors. Construction loans to borrowers finance the construction of owner occupied and leased properties. These loans are categorized as construction loans during the construction period, later converting to commercial or residential real estate loans after the construction is complete and amortization of the loan begins. Real estate development and construction loans are approved based on an analysis of the borrower and guarantor, the viability of the project and an acceptable percentage of the appraised value of the property securing the loan. Real estate development and construction loan funds are disbursed periodically based on the percentage of construction completed. The Company carefully monitors these loans with on-site inspections and requires the receipt of lien waivers on funds advanced. Development and construction loans are typically secured by the properties under development or construction, and personal guarantees are typically obtained. Further, to assure that reliance is not placed solely on the value of the underlying property, the Company considers the market conditions and feasibility of proposed projects, the financial condition and reputation of the borrower and guarantors, the amount of the borrower’s equity in the project, independent appraisals, cost estimates and pre-construction sales information. The Company also makes loans on occasion for the purchase of land for future development by the borrower. Land loans are extended for future development for either commercial or residential use by the borrower. The Company carefully analyses the intended use of the property and the viability thereof.
Commercial. Commercial business loans and lines of credit consist of loans to small- and medium-sized companies. Commercial loans are generally used for working capital purposes or for acquiring equipment, inventory or furniture. Primarily all of the Company’s commercial loans are secured loans, along with a small amount of unsecured loans. The Company’s underwriting analysis consists of a review of the financial statements of the borrower, the lending history of the borrower, the debt service capabilities of the borrower, the projected cash flows of the business, the value of the collateral, if any, and whether the loan is guaranteed by the principals of the borrower. These loans are generally secured by accounts receivable, inventory and equipment. Commercial loans are typically made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business, which makes them of higher risk than residential loans and the collateral securing loans may be difficult to appraise and may fluctuate in value based on the success of the business. The Company mitigates these risks through its underwriting standards.
Consumer. Consumer loans are extended for various purposes, including purchases of automobiles, recreational vehicles, and boats. Also offered are home improvement loans, lines of credit, personal loans, and deposit account collateralized loans. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Loans to consumers are extended after a credit evaluation, including the creditworthiness of the borrower(s), the purpose of the credit, and the secondary source of repayment. Consumer loans are made at fixed and variable interest rates. Risk is mitigated by the fact that the loans are of smaller individual amounts.
(continued)
| 12 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(3) Loans, Continued.
Age analysis of past-due loans is as follows (dollars in thousands):
Schedule of Age Analysis of Past-due Loans
| Accruing Loans | ||||||||||||||||||||||||||||
| 30-59 Days | 60-89 Days | Greater Than 90 Days | Total | Nonaccrual | Total | |||||||||||||||||||||||
| Past Due | Past Due | Past Due | Past Due | Current | Loans | Loans | ||||||||||||||||||||||
| At September 30, 2026: | ||||||||||||||||||||||||||||
| Residential real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Multi-family real estate | ||||||||||||||||||||||||||||
| Commercial real estate | ||||||||||||||||||||||||||||
| Land and construction | ||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| At December 31, 2025: | ||||||||||||||||||||||||||||
| Residential real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Multi-family real estate | ||||||||||||||||||||||||||||
| Commercial real estate | ||||||||||||||||||||||||||||
| Land and construction | ||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
The Company has not made any modifications of loans to borrowers experiencing financial difficulties during the nine-month periods ended September 30, 2026 and 2025.
The following table presents the amortized costs basis of loans on nonaccrual status, as of September 30, 2026 and December 31, 2025. As of September 30, 2026 and December 31, 2025 there were no loans 90 days or more past due and still accruing.
Schedule of Amortized Costs Basis of Loans on Nonaccrual Status
| September 30, 2026 | ||||||||||||
| Nonaccrual | Nonaccrual | Total | ||||||||||
| (dollars in thousands) | Without ACL | With ACL | Nonaccrual | |||||||||
| Commercial | $ | | $ | | $ | | ||||||
| December 31, 2025 | ||||||||||||
| Nonaccrual | Nonaccrual | Total | ||||||||||
| (dollars in thousands) | Without ACL | With ACL | Nonaccrual | |||||||||
| Commercial | $ | | $ | | $ | | ||||||
(continued)
| 13 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(3) Loans, Continued.
Collateral-Dependent Loans
The following table presents the amortized cost basis of non-accruing collateral-dependent loans by class of loans and type of collateral identified as of September 30, 2026 and December 31, 2025 under the current expected credit loss model:
Schedule of Amortized Costs Basis of Loans on Nonaccrual Status Collateral Dependent Loans
| September 30, 2026 | ||||||||||||
| (dollars in thousands) | Real Estate | Other | Total | |||||||||
| Commercial | $ | $ | $ | |||||||||
| December 31, 2025 | ||||||||||||
| (dollars in thousands) | Real Estate | Other | Total | |||||||||
| Commercial | $ | $ | $ | |||||||||
Internally assigned loan grades are defined as follows:
Pass — a Pass loan’s primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary. These are loans that conform in all aspects to bank policy and regulatory requirements, and no repayment risk has been identified.
OLEM — an Other Loan Especially Mentioned has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date.
Substandard — a Substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Included in this category are loans that are current on their payments, but the Bank is unable to document the source of repayment. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
Doubtful — a loan classified as Doubtful has all the weaknesses inherent in one classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The Company charges off the estimated loss on any loan classified as Doubtful.
Loss — a loan classified Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The Company fully charges off any loan classified as loss.
(continued)
| 14 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(3) Loans, Continued.
Schedule of Amortized Cost Basis
| (Dollars in thousands) | Year 5 | Year 4 | Year 3 | Year 2 | Year 1 | Prior | Revolving Loans (Amortized Cost Basis) | Revolving Loans Converted to Term Loans (Amortized Cost Basis) | Subtotal loans | |||||||||||||||||||||||||||
| Term Loans | Revolving Loans | Revolving Converted to Term Loans | ||||||||||||||||||||||||||||||||||
| Amortized Cost Basis by Origination Year | (Amortized | (Amortized | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | September 30, 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Cost Basis) | Cost Basis) | Total | |||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Multi-family real estate | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Commercial real estate (CRE) | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Land and construction | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period gross write-offs | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | |||||||||||||||||||
(continued)
| 15 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(3) Loans, Continued.
| (Dollars in thousands) | Year 5 | Year 4 | Year 3 | Year 2 | Year 1 | Prior | Revolving Loans (Amortized Cost Basis) | Revolving Loans Converted to Term Loans (Amortized Cost Basis) | Subtotal loans | |||||||||||||||||||||||||||
| Term Loans | Revolving Loans (Amortized | Revolving Loans Converted to Term Loans (Amortized | ||||||||||||||||||||||||||||||||||
| Amortized Cost Basis by Origination Year | Cost | Cost | ||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Basis) | Basis) | Total | |||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period Gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Multi-family real estate | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period Gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Commercial real estate (CRE) | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period Gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Land and construction | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period Gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Commercial business loans | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period Gross write-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| OLEM (Other Loans Especially Mentioned) | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||||||||||||||
| Subtotal loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current period Gross write-offs | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | |||||||||||||||||
(continued)
| 16 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(4) Other Real Estate Owned (OREO).
As
of September 30, 2026, the Company had no loans secured by residential real estate for which foreclosure was in process, and no residential
real estate property in other real estate owned. During 2025, the Company acquired real estate located in the State of Florida through
foreclosure. The property was previously collateral for a consumer home equity line of credit (“HELOC”) that became delinquent
and was placed on nonaccrual status prior to foreclosure. As of December 31, 2025, the property was carried at $
Schedule of Real Estate Properties
| At September 30, | At December 31, | |||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| OREO recorded value at acquisition | $ | $ | | |||||
| Subsequent valuation write-down | ( | ) | ||||||
| OREO carrying value | $ | $ | ||||||
Basic
earnings per share have been computed on the basis of the weighted-average number of shares of common stock outstanding during the periods.
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (Dollars in thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Basic EPS: | ||||||||||||||||
| Net Income | $ | $ | $ | $ | ||||||||||||
| Average Voting Common Shares Outstanding | ||||||||||||||||
| Average Nonvoting Common Shares Outstanding | ||||||||||||||||
| Average Voting and Nonvoting Common Shares outstanding | ||||||||||||||||
| Net income per share | $ | $ | $ | $ | ||||||||||||
| Diluted EPS: | ||||||||||||||||
| Net Income | $ | $ | $ | $ | ||||||||||||
| Average Common Shares Outstanding | ||||||||||||||||
| Effect of conversion of series B & C preferred shares | ||||||||||||||||
| Average diluted shares outstanding | ||||||||||||||||
| Net income per share | $ | $ | $ | $ | ||||||||||||
(continued)
| 17 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
The Company is authorized to grant stock options, stock grants and other forms of equity-based compensation under its 2018 Equity Incentive Plan (the “2018 Plan”). The plan has been approved by the shareholders. At the Company’s annual shareholders meeting held on April 29, 2025, shareholders approved an amendment to the Plan to increase the number of shares authorized for issuance by shares, increasing the total number of shares authorized under the Plan from shares. The Company is currently authorized to issue up to shares of common stock under the 2018 Plan. At September 30, 2026, shares remain available for grant.
During the nine-month periods ended September 30, 2026 and 2025, the Company issued and shares, respectively, to employees for services performed and recorded compensation expense of $and $, respectively. During the nine-month period ended September 30, 2025, the Company issued shares to a director and recorded compensation expense of $.
(7) Fair Value Measurements.
Debt securities available for sale measured at fair value on a recurring basis are summarized below (dollars in thousands):
Schedule of Debt Securities Available for Sale Measured at Fair Value on Recurring Basis
| Fair Value Measurements Using | ||||||||||||||||
Quoted Prices In Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
| Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
| At September 30, 2026: | ||||||||||||||||
| SBA Pool Securities | $ | $ | $ | $ | ||||||||||||
| Collateralized mortgage obligations | ||||||||||||||||
| Taxable municipal securities | ||||||||||||||||
| Mortgage-backed securities | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| At December 31, 2025: | ||||||||||||||||
| SBA Pool Securities | $ | $ | $ | $ | ||||||||||||
| Collateralized mortgage obligations | ||||||||||||||||
| Taxable municipal securities | ||||||||||||||||
| Mortgage-backed securities | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Debt securities available for sale | $ | $ | $ | $ | ||||||||||||
(continued)
| 18 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(8) Financial Instruments. The estimated fair values and fair value measurement method with respect to the Company’s financial instruments were as follows (dollars in thousands):
Schedule of Estimated Fair Value of Financial Instruments
| At September 30, 2026 | At December 31, 2025 | |||||||||||||||||||||||
| Carrying Amount | Fair Value | Level | Carrying Amount | Fair Value | Level | |||||||||||||||||||
| Financial assets: | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | 1 | $ | $ | 1 | ||||||||||||||||||
| Debt securities available for sale | 2 | 2 | ||||||||||||||||||||||
| Debt securities held-to-maturity | 2 | 2 | ||||||||||||||||||||||
| Loans | 3 | 3 | ||||||||||||||||||||||
| Federal Home Loan Bank stock | 3 | 3 | ||||||||||||||||||||||
| Accrued interest receivable | 3 | 3 | ||||||||||||||||||||||
| Financial liabilities: | ||||||||||||||||||||||||
| Deposit liabilities | 3 | 3 | ||||||||||||||||||||||
| Federal Home Loan Bank advances | 3 | 3 | ||||||||||||||||||||||
| Subordinated Debt | 3 | 3 | ||||||||||||||||||||||
| Other Borrowings | 3 | 3 | ||||||||||||||||||||||
(9) Commitments And Contingencies
Off- Balance Sheet Financial Instruments. The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit, unused lines of credit, and standby letters of credit and may involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the condensed consolidated balance sheets. The contract amounts of these instruments reflect the extent of involvement the Company has in these financial instruments.
The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments.
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the counterparty.
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit to customers is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting those commitments. Standby letters of credit generally have expiration dates within one year.
Commitments to extend credit, unused lines of credit, and standby letters of credit typically result in loans with a market interest rate when funded. A summary of the contractual amounts of the Company’s financial instruments with off-balance sheet risk at September 30, 2026 follows (dollars in thousands):
Schedule of Off-Balance Sheet Risks of Financial Instruments
| Commitments to extend credit | $ | |||
| Unused lines of credit | $ | |||
| Standby letters of credit | $ |
(continued)
| 19 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(9) Commitments And Contingencies, Continued
Guarantees. The Company has entered into credit enhancement arrangements pursuant to which it guarantees certain borrowings of its financing subsidiary from third-party lenders.
Under these arrangements, the Company may, on a loan-by-loan basis, guarantee the repayment of amounts borrowed by the financing subsidiary. The guarantees are intended to enhance the subsidiary’s ability to obtain financing and generally remain in effect until the underlying borrowings are repaid.
If the financing subsidiary fails to perform under the terms of the underlying borrowing arrangements, the Company may be required to make payments to lenders for amounts outstanding under such borrowings.
As
of September 30, 2026, the aggregate outstanding principal amount of borrowings subject to these guarantees was approximately $
The Company evaluates these arrangements in accordance with ASC 460, Guarantees, and ASC 450, Contingencies, and establishes accruals when losses are considered probable and reasonably estimable. If a loss is reasonably possible but not probable, or if the amount of loss cannot be reasonably estimated, the Company discloses the nature of the contingency.
In the opinion of management, there are no matters as of September 30, 2026 that are expected to have a material effect on the Company’s condensed consolidated financial statements.
(10) Related Party Transactions.
The Company engages in transactions with directors, executive officers, and their affiliates in the ordinary course of business. These transactions include lending, deposit, and other financial service arrangements and are conducted on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unaffiliated parties.
Related Party Lending Arrangement. During the period, a member of the Company’s Board of Directors (the “Related Party”) provided financing to the Company’s financing subsidiary in connection with the subsidiary’s lending activities.
Under this arrangement, the Related Party provides funds to the financing subsidiary, which are used to originate loans to third-party borrowers. The Company guarantees the financing subsidiary’s repayment obligations under the arrangement.
As
of September 30, 2026, the outstanding balance of borrowings from the Related Party was approximately $
The borrowings are subject to customary terms and conditions, including stated interest rates, repayment provisions, and maturity dates. These terms are comparable to those that could be obtained from unaffiliated third parties.
The Company has established policies and procedures for the review, approval, and monitoring of related party transactions. All such transactions are reviewed and approved in accordance with the Company’s governance policies.
Related
Party Line of Credit. At September 30, 2026, the Company had an available related-party line of credit of $
(11) Regulatory Matters.
The Bank is subject to various regulatory capital requirements administered by the bank regulatory agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
(continued)
| 20 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(11) Regulatory Matters, Continued
As of September 30, 2026, and December 31, 2025, the Bank met all capital adequacy requirements to which it was subject. The Bank has elected to use the Community Bank Leverage Ratio (“CBLR”) framework. Effective July 1, 2026, the minimum CBLR requirement for qualifying community banks was reduced from greater than 9.0% to greater than 8.0%. A qualifying community banking organization that elects the CBLR framework and satisfies the applicable requirements is considered to have met the generally applicable risk-based and leverage capital requirements and the well-capitalized requirements under the prompt corrective action framework. The Bank’s actual capital amounts and percentages are presented in the table below (dollars in thousands):
Schedule of Capital Amounts, Ratios and Regulatory Thresholds
| Actual | To Be Well Capitalized Under Prompt Corrective Action Regulations | |||||||||||||||
| Amount | % | Amount | % | |||||||||||||
| As of September 30, 2026: | ||||||||||||||||
| Tier 1 Capital to Total Assets | $ | % | $ | % | ||||||||||||
| As of December 31, 2025: | ||||||||||||||||
| Tier 1 Capital to Total Assets | $ | % | $ | % | ||||||||||||
(12) Series B and C Preferred Stock, ATM offering program and Common Stock
On March 8, 2024, the Company’s Board of Directors approved the issuance of up to of Series C Preferred Stock. Each share of the Series C Preferred Stock was convertible into one share of common stock, at the option of the holder, provided that certain regulatory-required conditions are met.
On
August 9, 2024, the Company filed a Form S-3 registration statement with Securities and Exchange Commission, registering for sale of
up to an aggregate of $
On October 1, 2025, the Company filed an Amended and Restated Certificate of Designation of Series B Preferred Stock, which amended and restated the rights, preferences, powers, and limitations of the Company’s previously outstanding Series B-1, Series B-2, and Series B-3 Preferred Stock and consolidated such shares into a single class designated as Series B Preferred Stock. At that date, shares of Series B Preferred Stock were outstanding. Except in the event of liquidation, if the Company declared or paid a dividend or distribution on the common stock, the Company shall simultaneously declare and pay a dividend on the Series B Preferred Stock on a pro rata basis with the common stock determined on an as-converted basis assuming all shares of Series B Preferred Stock had been converted immediately prior to the record date of the applicable dividend. The Series B Preferred stock did not carry a stated dividend rate, and dividends were payable only if and when declared on the common stock. The Series B Preferred Stock had preferential liquidation rights over common stockholders. The liquidation price was the greater of (i) a stated liquidation preference per share or (ii) the amount that would have been received had all shares of Series B Stock been converted into common stock immediately prior to a liquidation. The Series B Preferred Stock generally had no voting rights except as provided in the Certificate of Designation.
As a result of the amendment, each share of Series B Preferred Stock was convertible, at the option of the holder, into shares of the Company’s common stock, par value $ per share, subject to adjustment for stock splits, stock dividends, combinations, mergers, or similar transactions, as provided in the Certificate of Designation. Conversion was subject to applicable ownership limitations and required federal and state banking regulatory approvals. In addition, conversion occurs automatically upon certain permitted transfers, as defined in the Certificate of Designation. The amendment represented a modification of the conversion rights of the outstanding Series B Preferred Stock and did not result in the issuance or redemption of any equity securities.
On January 27, 2026, the Company and Michael Blisko, a Director of the Company, entered into, and consummated the transaction contemplated by, an Exchange Agreement (the “Exchange Agreement”). Pursuant to the agreement, Mr. Blisko exchanged shares of Company Series B Convertible Preferred Stock for newly issued shares of Company common stock.
(continued)
| 21 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(12) Series B and C Preferred Stock and ATM offering program., Continued
On January 27, 2026, the Board and subsequently on April 28, 2026 the Shareholders approved an amendment to the Company’s Articles of Incorporation (the “Articles Amendment”) to authorize a new class of capital stock designated as Nonvoting Common Stock, par value $ per share (the “Nonvoting Common Stock”). The Articles Amendment authorizes the issuance of up to shares of Nonvoting Common Stock. In May 2026, in accordance with the Articles Amendment, the Company exchanged all outstanding shares, or and shares of related party Series B Convertible Preferred Stock and Series C Convertible Preferred Stock, respectively, for a total of shares of Nonvoting Common Stock in the second quarter of 2026. Subsequent to the exchange, the Company undesignated the Series B Convertible Preferred Stock and Series C Convertible Preferred Stock.
The shares of Nonvoting Common Stock are identical with the Common Stock in all respects, except as described below.
Voting Rights. Holders of Nonvoting Common Stock are not entitled to vote on matters submitted to shareholders, except as required by Florida law. Under the Florida law, holders of a class of shares are entitled to vote as a separate voting group on an amendment to the Articles of Incorporation if the amendment would:
| ● | Alter or change the powers, preferences, or special rights of the shares so as to affect them adversely; | |
| ● | Increase or decrease the number of authorized shares of that class; or | |
| ● | Otherwise require a class vote under applicable law. |
Dividend Rights. Holders of Nonvoting Common Stock are entitled to receive dividends, if and when declared by the Board, on the same per-share basis as holders of the Company’s Common Stock, subject to the preferential rights of any outstanding preferred stock.
Liquidation Rights. Upon any voluntary or involuntary liquidation, dissolution, or winding up of the Company, holders of Nonvoting Common Stock will be entitled to share ratably with holders of Common Stock in the Company’s net assets available for distribution, after payment of liabilities and subject to the rights of any outstanding preferred stock.
Other Rights. Nonvoting Common Stock does not have cumulative voting rights, preemptive rights, subscription rights, redemption rights, or sinking fund provisions, unless otherwise provided in the Articles of Incorporation required by law.
(13) Litigation.
Various claims arise from time to time in the normal course of business. In the opinion of management, none have occurred that will have a material effect on the Company’s condensed consolidated financial statements.
(14) FHLB advances and Lines of Credit.
The table below presents FHLB advances outstanding as follows (dollars in thousands):
Schedule of Maturities and Interest Rates on Federal Home Loan Bank and Federal Reserve Bank Advances
| Interest | September 30, | December 31, | ||||||||||||
| Maturity |
Rate |
2026 | 2025 | |||||||||||
| FHLB | Oct-26 | % | ||||||||||||
| FHLB | Jan-26 | % | ||||||||||||
| $ | $ | |||||||||||||
FHLB advances were structured as advances with potential calls on a quarterly basis.
FHLB
advances were collateralized by a blanket lien requiring the Company to maintain certain first mortgage loans as pledged collateral.
At September 30, 2026, the Company had credit availability of $
In
addition, the Bank has a $
At
September 30, 2026, the Company also had unsecured lines of credit amounting to $
(continued)
| 22 |
OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
(15) Subordinated Debt.
On
August 19, 2026, the Company entered into a Subordinated Note Purchase Agreement (the “Purchase Agreement”) with certain
institutional accredited investors and qualified institutional buyers (the “Purchasers”). Pursuant to the Purchase Agreement,
the Company sold and issued $
The
Company issued the Notes under an Indenture, also dated August 19, 2026 (the “Indenture”), by and between the Company and
UMB Bank, National Association, as trustee (the “Trustee”). The Notes are not subject to any sinking fund and are not convertible
into or exchangeable for any other securities or assets of the Company or any of its subsidiaries. The Notes have a stated maturity of
The
Notes may be included in the Company’s Tier 2 capital (with certain limitations applicable) under current regulatory guidelines
and interpretations. The Notes will bear interest at a fixed rate of
At
September 30, 2026, the outstanding principal amount of the Notes was $
The subordinated notes contain customary affirmative and restrictive covenants, including restrictions on dividends and distributions, requirements relating to the preservation of the Company and its significant subsidiaries, and restrictions on actions that would result in the Company owning less than 100% of the Bank. At September 30, 2026, the Company was in compliance with all applicable covenants.
(continued)
| 23 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto presented elsewhere in this report. For additional information, refer to the consolidated financial statements and footnotes for the year ended December 31, 2025, in the Annual Report on Form 10-K.
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the control of the Company, including adverse changes in economic, political and market conditions, losses from the Company’s lending activities, increases in interest rates, the possible loss of key personnel, the impact of increasing competition, the impact of changes in government regulation, the possibility of liabilities arising from violations of federal and state securities laws and the impact of changes in technology in the banking industry. Although the Company believes that its forward-looking statements are based upon reasonable assumptions regarding its business and future market conditions, there can be no assurances that the Company’s actual results will not differ materially from any results expressed or implied by the Company’s forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that any forward-looking statements are not guarantees of future performance.
Strategic Plan
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.
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.
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.
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.
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.
(continued)
| 24 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
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.
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.
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.
Financial Condition at September 30, 2026 and December 31, 2025
Capital Levels
The Company continued to generate strong balance sheet growth during the first nine months of 2026. Total assets increased by approximately $464.4 million to $1.6 billion at September 30, 2026, from $1.1 billion at December 31, 2025, primarily driven by continued growth in the loan portfolio.
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.
Overview
The Company’s total assets increased by approximately $464.4 million to $1.6 billion at September 30, 2026, from $1.1 billion at December 31, 2025, primarily due to increases in loans. Net loans increased by $405.5 million to $1.4 billion at September 30, 2026, from $947.3 million at December 31, 2025. Deposits grew by approximately $411.1 million to $1.3 billion at September 30, 2026, from $931.8 million at December 31, 2025. Total stockholders’ equity increased by approximately $27.5 million to $149.4 million at September 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 and private placements.
The following table shows selected information for the period/year ended or at the dates indicated:
| Nine Months Ended | Year Ended | |||||||
| September 30, 2026 | December 31, 2025 | |||||||
| Average equity as a percentage of average assets | 10.01 | % | 11.08 | % | ||||
| Equity to total assets at end of period | 9.48 | % | 10.97 | % | ||||
| Return on average assets (1) | 1.86 | % | 1.64 | % | ||||
| Return on average equity (1) | 18.60 | % | 14.83 | % | ||||
| Noninterest expenses to average assets (1) | 2.56 | % | 2.48 | % | ||||
(1) Annualized for the nine months ended September 30, 2026.
(continued)
| 25 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Liquidity and Sources of Funds
The Company’s sources of funds include customer deposits, loan repayments, earnings, federal funds market, subordinated debt, and access to various borrowing arrangements. These includes borrowing capacity with Federal Home Loan Bank of Atlanta (“FHLB”), the Federal Reserve Bank, and five correspondent banks. On August 19, 2026, the Company issued $35.0 million of 7.50% Fixed-to-Floating Rate Subordinated Notes due 2036 and contributed $31.0 million of the net proceeds to the Bank as capital. Interest on the Notes is payable semi-annually beginning March 1, 2027. At September 30, 2026, Optimum Finance had $26.6 million of borrowings outstanding, including approximately $23 million from a director, which are guaranteed by the Company (see Notes 9, 10 and 15). The Company’s principal sources of funds to service these obligations are [its cash on hand.
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 financial holding company, 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, taxable municipal securities and mortgage-backed securities. Certain securities are pledged to the Federal Reserve Bank to support borrowing capacity. The Bank has a $68.2 million line of credit with the Federal Reserve Bank, which is secured by debt securities and loans with carrying value of $106.4 million as of September 30, 2026.
Deposits increased by approximately $411.1 million during the nine-month period ended September 30, 2026, providing a strong source of funding for continued loan growth while also supporting the repayment of Federal Home Loan Bank advances.
In addition to obtaining funds from depositors, the Company had borrowing capacity of $406 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 September 30, 2026, first mortgage loans with a carrying value of $818.9 million were pledged to FHLB. At September 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 September 30, 2026, debt securities and loans with a carrying amount of $106.4 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.
Off-Balance Sheet Arrangements
Refer to Note 9 in the condensed consolidated financial statements for Off-Balance Sheet Arrangements.
Results of Operations
The following table sets forth, for the periods indicated, information regarding (i) the total dollar amount of interest and dividend income of the Company from interest-earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average cost; (iii) net interest income; (iv) interest-rate spread; (v) net interest margin; and (vi) the ratio of average interest-earning assets to average interest-bearing liabilities.
(continued)
| 26 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
| Three Months Ended September 30, | ||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||
| Interest | Average | Interest | Average | |||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
| (dollars in thousands) | Balance | Expense | Rate(1) | Balance | Expense | Rate(1) | ||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans | $ | 1,257,377 | $ | 23,451 | 7.40 | % | $ | 800,336 | $ | 14,082 | 7.04 | % | ||||||||||||
| Securities | 26,397 | 201 | 3.02 | % | 22,695 | 153 | 2.70 | % | ||||||||||||||||
| Other interest-earning assets (2) | 154,139 | 1,460 | 3.76 | % | 188,109 | 2,086 | 4.44 | % | ||||||||||||||||
| Total interest-earning assets | 1,437,913 | 25,112 | 6.93 | % | 1,011,140 | 16,321 | 6.46 | % | ||||||||||||||||
| Cash and due from banks | 15,072 | 9,557 | ||||||||||||||||||||||
| Premises and equipment | 3,114 | 2,414 | ||||||||||||||||||||||
| Other | 4,776 | 5,209 | ||||||||||||||||||||||
| Total assets | $ | 1,460,875 | $ | 1,028,320 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Savings, NOW and money-market deposits | 403,727 | 2,470 | 2.43 | % | $ | 286,156 | 1,800 | 2.52 | % | |||||||||||||||
| Time deposits | 493,478 | 4,864 | 3.91 | % | 320,800 | 3,473 | 4.33 | % | ||||||||||||||||
| Subordinated debt | 16,080 | 317 | 7.82 | % | ||||||||||||||||||||
| Federal Home Loan Bank advances | 9,674 | 97 | 3.98 | % | - | - | 0.00 | % | ||||||||||||||||
| Other Borrowings | 22,904 | 583 | 10.10 | % | - | - | - | |||||||||||||||||
| Total interest-bearing liabilities | $ | 945,863 | 8,331 | 3.49 | % | $ | 606,956 | 5,273 | 3.48 | % | ||||||||||||||
| Noninterest-bearing demand deposits | 359,783 | 298,670 | ||||||||||||||||||||||
| Other liabilities | 12,867 | 8,687 | ||||||||||||||||||||||
| Stockholders’ equity | 142,362 | 114,007 | ||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,460,875 | $ | 1,028,320 | ||||||||||||||||||||
| Net interest income | $ | 16,781 | $ | 11,048 | ||||||||||||||||||||
| Interest rate spread (3) | 3.43 | % | 2.98 | % | ||||||||||||||||||||
| Net interest margin (4) | 4.63 | % | 4.37 | % | ||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 1.52 | 1.67 | ||||||||||||||||||||||
| (1) | Annualized. |
| (2) | Includes interest-earning deposits with banks and Federal Home Loan Bank stock dividends. |
| (3) | Interest rate spread represents the difference between average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
| (4) | Net interest margin is net interest income divided by average interest-earning assets. |
(continued)
| 27 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
| Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||
| Interest | Average | Interest | Average | |||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
| (dollars in thousands) | Balance | Expense | Rate(1) | Balance | Expense | Rate(1) | ||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans | $ | 1,146,917 | $ | 61,953 | 7.22 | % | $ | 800,117 | $ | 41,709 | 6.95 | % | ||||||||||||
| Securities | 26,655 | 597 | 2.99 | % | 22,785 | 471 | 2.76 | % | ||||||||||||||||
| Other interest-earning assets (2) | 133,089 | 3,742 | 3.76 | % | 143,171 | 4,736 | 4.41 | % | ||||||||||||||||
| Total interest-earning assets | 1,306,661 | 66,292 | 6.78 | % | 966,073 | 46,916 | 6.48 | % | ||||||||||||||||
| Cash and due from banks | 13,436 | 12,078 | ||||||||||||||||||||||
| Premises and equipment | 2,874 | 2,297 | ||||||||||||||||||||||
| Other | 4,473 | 4,383 | ||||||||||||||||||||||
| Total assets | $ | 1,327,444 | $ | 984,831 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Savings, NOW and money-market deposits | $ | 368,765 | 6,533 | 2.37 | % | $ | 281,207 | 5,293 | 2.51 | % | ||||||||||||||
| Time deposits | 464,158 | 13,610 | 3.92 | % | 321,011 | 10,580 | 4.39 | % | ||||||||||||||||
| Subordinated debt | 5,360 | 317 | 7.91 | % | ||||||||||||||||||||
| Federal Home Loan Bank advances | 10,481 | 305 | 3.89 | % | 11,482 | 327 | 3.80 | % | ||||||||||||||||
| Other Borrowings | 11,263 | 856 | 10.16 | % | - | - | - | |||||||||||||||||
| Total interest-bearing liabilities | 860,027 | 21,621 | 3.36 | % | 613,700 | 16,200 | 3.52 | % | ||||||||||||||||
| Noninterest-bearing demand deposits | 323,757 | 253,000 | ||||||||||||||||||||||
| Other liabilities | 10,766 | 8,284 | ||||||||||||||||||||||
| Stockholders’ equity | 132,894 | 109,847 | ||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,327,444 | $ | 984,831 | ||||||||||||||||||||
| Net interest income | $ | 44,671 | $ | 30,716 | ||||||||||||||||||||
| Interest rate spread (3) | 3.42 | % | 2.96 | % | ||||||||||||||||||||
| Net interest margin (4) | 4.57 | % | 4.24 | % | ||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 1.52 | 1.57 | ||||||||||||||||||||||
| (1) | Annualized. |
| (2) | Includes interest-earning deposits with banks and Federal Home Loan Bank stock dividends. |
| (3) | Interest rate spread represents the difference between average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
| (4) | Net interest margin is net interest income divided by average interest-earning assets. |
(continued)
| 28 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Comparison of the three-month periods ended September 30, 2026, and 2025
| Three Months Ended | Increase / | |||||||||||||||
| September 30, | (Decrease) | |||||||||||||||
| (dollars in thousands, except per share amounts) | 2026 | 2025 | Amount | Percentage | ||||||||||||
| Total interest income | $ | 25,112 | $ | 16,321 | $ | 8,791 | 54 | % | ||||||||
| Total interest expense | 8,331 | 5,273 | 3,058 | 58 | % | |||||||||||
| Net interest income | 16,781 | 11,048 | 5,733 | 52 | % | |||||||||||
| Credit loss expense | 1,066 | 763 | 303 | 40 | % | |||||||||||
| Net interest income after credit loss expense | 15,715 | 10,285 | 5,430 | 53 | % | |||||||||||
| Total noninterest income | 2,836 | 1,982 | 854 | 43 | % | |||||||||||
| Total noninterest expenses | 8,996 | 6,604 | 2,392 | 36 | % | |||||||||||
| Income before income taxes | 9,555 | 5,663 | 3,892 | 69 | % | |||||||||||
| Income taxes | 2,383 | 1,340 | 1,043 | 78 | % | |||||||||||
| Net income | $ | 7,172 | $ | 4,323 | 2,849 | 66 | % | |||||||||
| Earnings per share - Basic | $ | 0.30 | $ | 0.37 | ||||||||||||
| Earnings per share - Diluted(1) | $ | 0.30 | $ | 0.18 | ||||||||||||
(1) On October 1, 2025, the Company amended the terms of the Series B preferred shares, as detailed in Note 12 to the condensed 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 income. Net income for the three months ended September 30, 2026, was $7.2 million or $0.30 per basic and per diluted earnings per share, compared to net income of $4.3 million or $0.37 per basic earnings per share and $0.18 per diluted earnings per share for the three months ended September 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.
Interest income. Interest income increased to $25.1 million for the three months ended September 30, 2026, compared to $16.3 million for the three months ended September 30, 2025 due primarily to increases in average balances of interest earning assets.
Interest expense. Interest expense increased to $8.3 million for the three months ended September 30, 2026, compared to $5.3 million for the three months ended September 30, 2025, primarily due to an increase in average interest-bearing liability balances, and in the cost of interest-bearing liabilities.
Credit loss expense. The Company recorded a credit loss expense of $1.1 million and a $0.76 million expense for the three months ended September 30, 2026, and 2025, respectively. The increase primarily reflects continued growth in the loan portfolio and management’s evaluation of the qualitative and quantitative factors used to estimate expected credit losses. 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 $12.1 million, or 0.89% of total loans outstanding, at September 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 September 30, 2026 totaled $11,000 and were limited to the consumer loan portfolio.
Noninterest income. Total noninterest income was $2.8 million for the three months ended September 30, 2026, compared to $2.0 million for the three months ended September 30, 2025. The increase was primarily due to $0.9 million of nonrecurring late fees collected on the payoff of a nonaccrual loan and higher wire transfer and ACH fees, partially offset by lower gains on the sale of government guaranteed SBA loans.
Noninterest expenses. Total noninterest expenses increased to $9 million for the three months ended September 30, 2026, compared to $6.6 million for the three months ended September 30, 2025, primarily due to employee compensation and benefits, data processing fees, and other expenses.
(continued)
| 29 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Comparison of the nine-month periods ended September 30, 2026, and 2025
| Nine Months Ended | Increase / | |||||||||||||||
| (Dollars in thousands, except per share | September 30, | (Decrease) | ||||||||||||||
| amounts) | 2026 | 2025 | Amount | Percentage | ||||||||||||
| Total interest income | $ | 66,292 | $ | 46,916 | $ | 19,376 | 41 | % | ||||||||
| Total interest expense | 21,621 | 16,200 | 5,421 | 33 | % | |||||||||||
| Net interest income | 44,671 | 30,716 | 13,955 | 45 | % | |||||||||||
| Credit loss expense | 1,799 | 1,638 | 161 | 10 | % | |||||||||||
| Net interest income after credit loss expense | 42,872 | 29,078 | 13,794 | 47 | % | |||||||||||
| Total noninterest income | 7,106 | 5,047 | 2,059 | 41 | % | |||||||||||
| Total noninterest expenses | 25,387 | 18,411 | 6,976 | 38 | % | |||||||||||
| Income before income taxes | 24,591 | 15,714 | 8,877 | 56 | % | |||||||||||
| Income taxes | 6,101 | 3,919 | 2,182 | 56 | % | |||||||||||
| Net income | $ | 18,490 | $ | 11,795 | 6,695 | 57 | % | |||||||||
| Earnings per share - Basic | $ | 1.05 | $ | 1.00 | ||||||||||||
| Earnings per share - Diluted | $ | 0.78 | $ | 0.50 | ||||||||||||
Net Income. Net income for the nine months ended September 30, 2026, was $18.5 million or $1.05 per basic share and $0.78 per diluted share compared to net income of $11.8 million or $1.00 per basic share and $0.50 per diluted share for the nine months ended September 30, 2025. The Company’s strong financial performance during the first nine months of 2026 was primarily driven by growth in net interest income and noninterest income, reflecting continued execution of its relationship-based banking strategy.
Interest income. Interest income increased by $19.4 million to $66.3 million for the nine months ended September 30, 2026, compared to $46.9 million for the nine months ended September 30, 2025, due primarily to increases in average balances of interest earning assets.
Interest expense. Interest expense increased by $5.4 million to $21.6 million for the nine months ended September 30, 2026, compared to $16.2 million for the nine months ended September 30, 2025, primarily due to an increase in average interest-bearing liability balances, offset by a decrease in the cost of interest-bearing liabilities.
Credit loss expense. The Company recorded a credit loss expense of $1.8 million for the nine months ended September 30, 2026, compared to $1.6 million for the nine months ended September 30, 2025. The increase primarily reflects continued growth in the loan portfolio and management’s evaluation of the qualitative and quantitative factors used to estimate expected credit losses. 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 nine months ended September 30, 2026 totaled $25,000 and were limited to the consumer loan portfolio.
Noninterest income. Total noninterest income was $7.1 million for the nine months ended September 30, 2026 compared to $5.0 million for the nine months ended September 30, 2025. The increase was primarily due to higher wire transfer and ACH fees, $0.9 million of nonrecurring late fees collected in the third quarter on the payoff of a nonaccrual loan, and gains on the sale of government guaranteed SBA loans.
Noninterest expenses. Total noninterest expenses was $25.4 million for the nine months ended September 30, 2026, compared to $18.4 million for the nine months ended September 30, 2025, primarily due to employee compensation and benefits, data processing fees, and other expenses.
Item 3. Quantitative and Qualitative Disclosures about Market Risks
Not applicable.
Item 4. Controls and Procedures
The Company’s management evaluated the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report, and based on this evaluation, the Principal Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures are effective.
There were no changes in the Company’s internal control over financial reporting during the quarter ended September 30, 2026, that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.
(continued)
| 30 |
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
We are not currently a party to any material legal proceedings.
Item 1A. Risk Factors
Not applicable.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
During the three months ended September 30, 2026, the Company sold 733,466 shares of common stock to [accredited investors] in private placements for net cash proceeds of approximately $5.1 million, in reliance on [Section 4(a)(2)] of the Securities Act of 1933, as amended.
In May 2026, the Company issued 11,458,351 shares of Nonvoting Common Stock in exchange for all outstanding shares of its Series B and Series C Convertible Preferred Stock. See Note 12.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Not applicable.
Item 6. Exhibits
The exhibits listed in the Exhibit Index following the signature page are filed or furnished with or incorporated by reference into this report.
| 31 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| OPTIMUMBANK HOLDINGS, INC. | ||
| (Registrant) | ||
| Date: November 13, 2026 | By: | /s/ Moishe Gubin |
| Moishe Gubin | ||
| Chief Executive Officer | ||
| Date: November 13, 2026 | By: | /s/ Elliot Nunez |
| Elliot Nunez | ||
| Chief Financial Officer | ||
| 32 |
EXHIBIT INDEX
| 33 |
EXHIBIT 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
REQUIRED BY RULE 13a-14(a)/15d-14(a)
UNDER THE SECURITIES EXCHANGE ACT OF 1934
I certify that:
| 1. | I have reviewed this Quarterly Report on Form 10-Q of OptimumBank Holdings, Inc. (the “Company”); |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within that entity, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
| 5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| /s/ Moishe Gubin | |
| Moishe Gubin | |
| Principal Executive Officer | |
| Date: November 13, 2026 |
EXHIBIT 31.2
CERTIFICATION OF Principal FINANCIAL OFFICER
REQUIRED BY RULE 13a-14(a)/15d-14(a)
UNDER THE SECURITIES EXCHANGE ACT OF 1934
I certify that:
| 1. | I have reviewed this Quarterly Report on Form 10-Q of OptimumBank Holdings, Inc. (the “Company”); |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within that entity, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
| 5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| /s/ Elliot Nunez | |
| Elliot Nunez | |
| Principal Financial Officer | |
| Date: November 13, 2026 |
EXHIBIT 32.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED BY
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of OptimumBank Holdings, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2026, as filed with the Securities and Exchange Commission (the “Report”), I, as Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted by § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
| 1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
| /s/ Moishe Gubin | |
| Moishe Gubin | |
| Chief Executive Officer | |
| Date: November 13, 2026 |
EXHIBIT 32.2
CERTIFICATION OF Chief FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED BY
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of OptimumBank Holdings, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2026, as filed with the Securities and Exchange Commission (the “Report”), I, as Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted by § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
| 1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
| /s/ Elliot Nunez | |
| Elliot Nunez | |
| Chief Financial Officer | |
| Date: November 13, 2026 |