OPHC · OptimumBank Holdings, Inc.

OptimumBank Holdings reported solid Q1 2026 results with net income of $4.7 million, slightly below the prior quarter's $4.9 million due to higher noninterest expenses of $8.0 million, driven by employee compensation amid growth, and increased credit loss expense of $0.8 million tied to robust loan expansion. This was offset by strong net interest income growth to $13.2 million, fueled by higher loan yields (up 17 bps to 6.62%) and lower funding costs (down 8 bps to 3.26%), expanding the net interest margin to 4.49%. Noninterest income edged up to $1.8 million from service fees. Balance sheet growth was impressive: total assets hit $1.27 billion (up $157 million), gross loans reached $1.09 billion (up 13.8% QoQ, led by $123.7 million in commercial real estate), and deposits grew 17.3% to $1.09 billion across all categories. Credit quality held firm with net charge-offs at just $3,000 and allowance at 1.01% of loans. Capital remains strong at 10.74% Tier 1 leverage. Management highlighted sustained momentum, entry into new verticals via OptimumFinance's first loan in April, and top 1.4% ranking among U.S. community banks, with new analyst coverage initiated. No forward guidance provided, but outlook is constructive with focus on shareholder value.