OptimumBank Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for the third quarter of 2026 was $7.2 million ($0.30 per basic and diluted share), an increase from $6.7 million ($0.28 diluted EPS) in the second quarter of 2026 and $4.3 million ($0.18 diluted EPS) in the third quarter of 2025.
• Net income for the nine months ended September 30, 2026, was $18.5 million ($1.05 basic, $0.78 diluted EPS), compared to $11.8 million ($1.00 basic, $0.50 diluted EPS) for the same period in 2025.
• Net interest income increased to $16.8 million in Q3 2026 from $14.7 million in Q2 2026 and $11.0 million in Q3 2025.
• Noninterest income was $2.8 million in Q3 2026, up from $2.4 million in Q2 2026 and $2.0 million in Q3 2025.
• Noninterest expenses rose to $9.0 million in Q3 2026 from $8.4 million in Q2 2026 and $6.6 million in Q3 2025.
• The efficiency ratio improved to 45.86% in Q3 2026 from 48.78% in Q2 2026 and 50.68% in Q3 2025.
• Net interest margin expanded to 4.63% in Q3 2026 from 4.57% in Q2 2026 and 4.37% in Q3 2025.
• Return on average assets (ROAA) was 1.95% for Q3 2026, compared to 2.04% in Q2 2026 and 1.68% in Q3 2025.
• Return on average equity (ROAE) was 19.99% for Q3 2026, compared to 20.34% in Q2 2026 and 15.17% in Q3 2025.
• Credit loss expense was $1.1 million in Q3 2026, compared to a $37,000 reversal in Q2 2026 and $0.8 million expense in Q3 2025.
• Net charge-offs were $11,000 in Q3 2026, with gross charge-offs of $40,000 and recoveries of $29,000.
• The allowance for credit losses stood at $12.1 million (0.89% of total loans) as of September 30, 2026.
• Total assets grew to $1.58 billion as of September 30, 2026, from $1.40 billion at June 30, 2026.
• Total deposits increased to $1.34 billion as of September 30, 2026, from $1.21 billion at June 30, 2026.
• Total stockholders' equity increased to $149.4 million as of September 30, 2026, from $134.4 million at June 30, 2026.
• Tangible book value per fully diluted share was $5.98 as of September 30, 2026, up from $5.65 at June 30, 2026.

Guidance and Future Outlook:

• Management expects to begin seeing benefits from identified opportunities to improve operating efficiency and limit expenses over the next several quarters.
• The Company remains focused on technology, talent, and targeted growth initiatives to support continued growth and long-term shareholder value.
• The outlook remains constructive with expectations for continued earnings momentum and balance sheet expansion.

Business Segments and Product Lines:

• Gross loans increased by $150.2 million to $1.37 billion in Q3 2026, with growth across all segments.
• Commercial real estate loans grew by $91.4 million; residential real estate increased by $28.8 million.
• Land and construction loans increased by $11.5 million; commercial loans by $7.8 million; consumer loans by $6.5 million; and multifamily loans by $4.3 million.
• OptimumFinance, LLC grew its loan portfolio to $26.7 million in Q3 2026 from $14.2 million in Q2 2026.
• Noninterest-bearing demand deposits increased by $62.3 million (19.5%) to $381.7 million in Q3 2026.
• Savings, NOW, and money market deposits increased by $34.2 million (8.9%) in Q3 2026.
• Time deposits increased by 61.6% compared to September 30, 2025.

Market and Competitive Landscape:

• The Company reported increased visibility within the investment community, accompanied by significantly greater trading activity and liquidity.
• Average daily trading volume increased approximately 235% from 35,600 shares in Q2 2026 to 119,300 shares in Q3 2026.
• The Company's share price increased approximately 49% from $5.84 on June 30, 2026, to $8.72 on September 30, 2026.
• OptimumBank continues to benefit from Buy ratings from all three independent equity research firms currently covering the Company.

Risks and Challenges:

• Forward-looking statements note risks including changes in interest rates and economic conditions, particularly in Florida.
• Risks include concentration of the loan portfolio in commercial real estate, credit quality, and the adequacy of the allowance for credit losses.
• Potential challenges involve the ability to manage growth, deposit concentrations, liquidity, and the ability to service subordinated notes and borrowings of non-bank subsidiaries.
• Regulatory and legal changes and competition are cited as potential factors affecting results.

Management Commentary and Tone:

• Chairman and CEO Moishe Gubin stated he was "very pleased" with the results in his first full quarter as CEO, citing record quarterly earnings, strong loan and deposit growth, and an expanded net interest margin.
• Management emphasized maintaining strong credit quality and a strengthened capital position while identifying opportunities to improve operating efficiency.
• The tone was confident regarding the Company's ability to realize efficiencies while maintaining growth momentum and building long-term shareholder value.

Other Key Points:

• The Company completed a $35.0 million subordinated debt offering in Q3 2026, consisting of 7.50% Fixed-to-Floating Rate Subordinated Notes due 2036.
• A $31.0 million capital contribution was made to the Bank following the subordinated debt issuance.
• The Company exchanged all outstanding preferred stock for common stock on April 29, 2026, resulting in no preferred stock outstanding during Q3 2026.
• In Q2 2026, the Company authorized a new class of Nonvoting Common Stock and exchanged Series B and Series C Convertible Preferred Stock for 11,458,351 shares of Nonvoting Common Stock.
• Total stockholders' equity growth in Q3 2026 was driven by net income of $7.2 million, $5.1 million in equity from private stock sales, and $3.4 million from the ATM program.
• Nonperforming assets (nonaccrual loans) decreased to $1.8 million at September 30, 2026, from $2.2 million at June 30, 2026.
• The Company had $10.0 million in FHLB advances outstanding at September 30, 2026, a decrease of $15.0 million from June 30, 2026.
• The Tier 1 Leverage Ratio was 12.23% at September 30, 2026, an increase of 169 basis points from the prior quarter.