# EDGAR Filing Document

**Accession Number:** 0001288855
**File Stem:** 0001641172-25-022422
**Filing Date:** 2025-8
**Character Count:** 48942
**Document Hash:** ef54c49e9246153b921f37f76acbadb4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-022422.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0001641172-25-022422

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250806

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** OptimumBank Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001288855
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42447
- **FILM NUMBER:** 251189495

**BUSINESS ADDRESS:**
- **STREET 1:** 2477 EAST COMMERCIAL BOULEVARD
- **CITY:** FORT LAUDERDALE
- **STATE:** FL
- **ZIP:** 33308
- **BUSINESS PHONE:** 954 776-2332

**MAIL ADDRESS:**
- **STREET 1:** 2477 EAST COMMERCIAL BOULEVARD
- **CITY:** FORT LAUDERDALE
- **STATE:** FL
- **ZIP:** 33308

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT** 

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) **August 6, 2025**

**OPTIMUMBANK HOLDINGS, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Florida** | **001-42447** | **55-0865043** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> file number) | (IRS employer<br> identification no.) |
| **2929 East Commercial Boulevard** |  | **33308** |
| **Ft. Lauderdale, Florida** |  | (Zip Code) |
| (Address of principal executive offices) |  |  |

---

**(954) 776-2332**

(Registrant's telephone number, including area code)

**Not Applicable**

**(Former name or former address, if changed since last report)** 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class registered | Trading Symbol(s) | Name of exchange on which registered |
| **Common Stock** | **OPHC** | **NYSE American** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1933 (§240.12b-2 of this chapter)

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. ☐

**Item 2.02. Results of Operations and Financial Condition.**

On August 6, 2025, OptimumBank Holdings, Inc. issued a press release reporting its results of operations and financial condition for the period ending and as of June 30, 2025.

**Item 9.01 Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits

---

| | | |
|:---|:---|:---|
| **Exhibit Number** | <br> **Exhibit Name** | **Filed Herewith** |
| 99.1 | [Press release for the period ended June 30, 2025](ex99-1.htm) | \* |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | \* |

---

The information in this report (including the exhibits) shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**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 hereunto duly authorized.

---

| | |
|:---|:---|
| **OPTIMUMBANK HOLDINGS, INC.** | **OPTIMUMBANK HOLDINGS, INC.** |
| Date: | August 6, 2025 |
| By: | */s/ Moishe Gubin* |
|  | Moishe Gubin |
|  | Chairman of the Board of Directors |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**OptimumBank Holdings, Inc. Financial Performance for the Second Quarter of 2025**

**Fort Lauderdale, FL, August 7, 2025** — OptimumBank Holdings, Inc. (NYSE American: OPHC) (the "Company") is a one-bank holding company and owns 100% of OptimumBank (the "Bank"). The Company is pleased to announce net earnings of $3.60 million, or $0.31 per basic share, and $0.29 per diluted share, for the second quarter of 2025. This compares to net income of $3.87 million, or $0.33 per basic share, and $0.32 per diluted share, for the first quarter of 2025, and $3.50 million net earnings, or $0.36 per basic share, and $0.34 per diluted share, for the comparable quarter last year. For the six months ended June 30, 2025, net earnings was $7.47 million, or $0.64 per basic share, and $0.61 per diluted share, compared to net earnings of $5.87 million, or $0.68 per basic share, and $0.66 per diluted share, for the six months ended June 30, 2024. The increase of $1.6 million in earnings for the six-month ended June 30, 2025, compared to the same period in 2024, was primarily driven by a $3.18 million improvement in net interest income and $0.63 million in noninterest income, partially offset by an increase in noninterest expenses and income taxes. The decline in diluted earnings per share is the result of the average increase in both common and preferred shares by 3,351,368 shares.

The Company has demonstrated continued progress during the second quarter of 2025. Total deposits grew by $25.93 million from March 31, 2025, reaching $878.87 million at June 30, 2025, reflecting an annualized growth rate of approximately 12.16%. This also represents a growth of $116.22 million in total deposits since the second quarter of 2024. The gross loan portfolio decreased by $15.68 million during the second quarter of 2025 to $784.56 million.

**Highlights for the Second Quarter of 2025**

● Net earnings of $3.60 million, or $0.31 per basic share, and $0.29 diluted earnings per share ("diluted EPS").

● Return on Average Assets (ROAA) was 1.48% for the second quarter of 2025, compared to 1.62% for the first quarter of 2025.

● Net interest margin was 4.32%, reflecting an increase from 4.06% for the first quarter of 2025.

● Total assets grew by $21.66 million to $999.13 million from March 31, 2025, an annualized increase of approximately 8.86%.

● Total deposits grew by $25.93 million to $878.87 million from March 31, 2025, representing an annualized increase of approximately 12.16%.

● Gross loans decreased by $15.68 million during the quarter.

● Total stockholders' equity increased by $3.35 million to $111.35 million as of June 30, 2025, up from $108 million as of March 31, 2025, reflecting continued earnings retention.

"We are proud to report strong and resilient performance during the second quarter of 2025," said Moishe Gubin, Chairman of the Board. "While industry headwinds continue, our team at OptimumBank delivered meaningful core earnings through disciplined deposit pricing, targeted growth in consumer and multi-family lending, and improved operating leverage. Although overall loan balances declined this quarter due to the payoff of older, lower-yielding loans, we remain well positioned to redeploy capital into higher-return opportunities. Our results demonstrate our ability to manage a growing asset base while maintaining solid credit quality and capital strength."

Net interest income increased to $10.24 million, up $0.8 million from the first quarter of 2025 and $1.50 million from the second quarter of 2024, supported by higher yields on loans and other earning assets and lower costs on interest-bearing liabilities. The cost of interest-bearing liabilities improved to 3.49%, down from 3.59% in the first quarter, while interest-earning asset yields expanded to 6.57%. The Company's net interest margin rose to 4.32%, a reflection of disciplined deposit pricing strategy and balance sheet optimization.

Noninterest income grew to $1.83 million, a quarterly increase of $0.6 million, driven by increases in gains on sales of government guaranteed loans and loan prepayment fees. Noninterest expenses increased to $6.18 million, primarily due to higher staffing and infrastructure investments supporting long-term scalability. The Company maintained an efficiency ratio of 51.18%, consistent with prudent cost management amid balance sheet expansion.

Credit loss expense increased to $1.04 million, largely due to a specific reserve booked on an individual commercial loan. Gross charge-offs remained modest at $72,000, while recoveries totaled $97,000, resulting in net recoveries of $25,000, reflecting a well-managed and granular loan portfolio. The allowance for credit losses stood at $9.34 million as of June 30, 2025, or 1.19% of total loans.

Loan portfolio dynamics were mixed in the second quarter of 2025. Gross loans decreased by $15.68 million, primarily due to the payoff of several loans and the resolution of a $5.60 million nonperforming loan. Consumer and multi-family segments continued to expand, growing by $7.99 million and $4.71 million, respectively. These gains were offset by a $19.21 million decline in land and construction loans and a $5.04 million decline in residential real estate loans, consistent with the stabilization of and migration of construction to permanent loans status and other evolving market conditions. This shift provides an opportunity to redeploy capital into potentially higher-yielding segments of the portfolio.

On the funding side, total deposits increased by $25.93 million to $878.87 million from the first quarter of 2025, while core noninterest-bearing demand deposits increased to $259.82 million. The Company also significantly reduced its average borrowings from $32.22 million in the first quarter to $2.22 million in the second quarter, reinforcing its emphasis on core funding and balance sheet strength.

Capital levels remain strong, with a Tier 1 Capital to Total Assets of 11.89%, well above regulatory minimums. The Company remains well positioned to support continued growth and earnings momentum through the remainder of 2025.

The Company's outlook remains constructive. The Company continues to invest in technology, talent, and targeted growth strategies that reinforce its position as one of the most dynamic and rapidly growing community banks in South Florida. We remain grateful for the trust and partnership of our shareholders, customers, and employees.

The following table presents the Company's quarterly trends of the consolidated financial highlights (unaudited) for the periods presented:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **2Q25 change vs** | **2Q25 change vs** |
|  | **2Q25** | **1Q25** | **4Q24** | **3Q24** | **2Q24** | **1Q25** | **2Q24** |
| **Selected Balance Sheet Data** |  |  |  |  |  |  |  |
| Total assets | $999127 | $977468 | $932933 | $945192 | $899778 | $21659 | $99349 |
| Total gross loans | 784564 | 800244 | 804240 | 778058 | 761072 | (15680) | 23492 |
| Total deposits | 878865 | 852934 | 772195 | 806506 | 762646 | 25931 | 116219 |
| **Earnings Highlights** |  |  |  |  |  |  |  |
| Net earnings | $3602 | $3870 | $3949 | $3302 | $3496 | $(268) | $106 |
| Diluted earnings per share (EPS) | $0.29 | $0.32 | $0.36 | $0.32 | $0.34 | $(0.03) | $(0.05) |
| Net interest income | $10242 | $9426 | $9235 | $8962 | $8742 | $816 | $1500 |
| **Performance Ratios** |  |  |  |  |  |  |  |
| Net interest margin | 4.32% | 4.06% | 4.19% | 3.96% | 3.79% | 0.26% | 0.53% |
| Net interest spread | 3.08% | 2.87% | 2.90% | 2.61% | 2.52% | 0.21% | 0.56% |
| Cost of interest-bearing liabilities | 3.49% | 3.59% | 4.02% | 4.17% | 4.06% | (0.10)% | (0.57)% |
| Efficiency ratio | 51.18% | 52.79% | 42.53% | 52.45% | 51.13% | (1.61)% | 0.05% |
| Loan-to-deposit ratio | 88.13% | 92.77% | 102.95% | 95.34% | 98.59% | (4.64)% | (10.46)% |
| **Return on (annualized)** |  |  |  |  |  |  |  |
| Average assets (ROAA) | 1.48% | 1.62% | 1.62% | 1.42% | 1.48% | (0.14)% | 0.00% |
| Average equity (ROAE) | 13.10% | 14.66% | 16.19% | 14.74% | 16.65% | (1.56)% | (3.55)% |
| Average tangible assets (ROTA) | 1.48% | 1.62% | 1.62% | 1.42% | 1.48% | (0.14)% | 0.00% |
| Pre-tax pre-provision net revenue (PPNR) | $5895 | $5031 | $5921 | $4792 | $4859 | $864 | $1036 |
| **Other Operating Measures** |  |  |  |  |  |  |  |
| Common shares outstanding | 11751082 | 11751082 | 11636092 | 10006960 | 9677431 |  | 2073651 |
| Non-diluted tangible book value per share | $9.48 | $9.19 | $8.87 | $9.26 | $8.99 | $0.28 | $0.49 |
| Fully diluted shares outstanding | 23390612 | 23390612 | 23275622 | 21646490 | 21316961 |  | 2073651 |
| Fully diluted tangible book value per share | $4.76 | $4.62 | $4.43 | $4.28 | $4.08 | $0.14 | $0.68 |
| Tangible common equity to tangible assets | 11.14% | 11.05% | 11.06% | 9.81% | 9.67% | 0.09% | 1.47% |
| Tier 1 Capital to total assets | 11.89% | 11.71% | 10.91% | 10.38% | 9.68% | 0.18% | 2.21% |

---

**<u>Financial Results</u>**

***Statement of Earnings***

 

Net earnings was $3.60 million for the second quarter of 2025, compared to net earnings of $3.87 million for the first quarter of 2025, and $3.50 million for the second quarter of 2024. The decrease from the first quarter of 2025 was primarily due to a credit loss expense of $1.04 million, compared to a reversal of $0.2 million in the first quarter. Compared to the second quarter of 2024, net earnings increased by approximately $0.1 million.

Total interest income was $15.59 million for the second quarter of 2025, compared to $15.01 million in the first quarter of 2025 and $15.19 million in the second quarter of 2024. The sequential increase was driven by both a $6.33 million rise in average loan balances and a higher loan yield, which increased from 6.83% to 6.99% and higher average balances in interest-earning deposits with banks. Compared to the second quarter of 2024, the increase was primarily due to a $49.45 million increase in average loan balances and a rise in loan yield from 6.87% to 6.99%.

The following table depicts the components of interest income for the quarterly periods presented:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **2Q25 change vs** | **2Q25 change vs** |
|  | **2Q25** | **1Q25** | **4Q24** | **3Q24** | **2Q24** | **1Q25** | **2Q24** |
| **Interest income** |  |  |  |  |  |  |  |
| Loans | $14026 | $13601 | $13679 | $13588 | $12948 | $425 | $1078 |
| Debt securities | 158 | 160 | 154 | 163 | 165 | (2) | (7) |
| Other | 1404 | 1246 | 1809 | 1583 | 2075 | 158 | (671) |
| **Total interest income** | $15588 | $15007 | $15642 | $15334 | $15188 | $581 | $400 |

---

**Interest expense** totaled $5.35 million for the second quarter of 2025, compared to $5.58 million for the first quarter of 2025 and $6.45 million for the second quarter of 2024. Compared to the first quarter of 2025, the decrease in interest expense was primarily attributable to a 10 basis points decrease in the cost of interest-bearing liabilities, from 3.59% to 3.49%, largely driven by the continued in the cost of time deposits due to repricing and the repayment of borrowings, which declined from $32.22 million in average balance in the first quarter of 2025 to just $2.22 million in the second quarter of 2025. Compared to the second quarter of 2024, the decrease in interest expense was substantial, primarily due to a 57 basis points decrease in the cost of interest-bearing liabilities, from 4.06% to 3.49% and a significant reduction in average borrowings outstanding. This reduction in funding costs in conjunction with the growth in total deposits and reflects disciplined deposit pricing and management of funding sources.

**Net interest income** was $10.24 million in the second quarter of 2025, up from $9.43 million in the first quarter of 2025 and $8.74 million in the second quarter of 2024. The quarter-over-quarter increase was driven by higher yields on earning assets, particularly loans, where average yields improved by 11 basis points, as well as growth in the average loan portfolio. A modest decrease in funding costs also contributed to the improvement. On a year-over-year basis, the increase in net interest income was primarily attributable to a $69.81 million rise in average loan balances and a 12 basis points increase in loan yields, further supported by lower funding costs.

**Net interest margin** expanded to 4.32% for the second quarter of 2025, compared to 4.06% and 3.79% for the first and second quarters of 2025 and 2024, respectively. Compared to the first quarter of 2025, net interest margin increased by 26 basis points, principally driven by improved yields on interest-earning assets (up from 6.46% to 6.57%) combined with decrease in interest-bearing liabilities cost (down from 3.59% to 3.49%). Compared to the second quarter of 2024, net interest margin expanded by 53 basis points, primarily attributable to a significant decrease in the average cost of interest-bearing liabilities and an increase in total earning assets yields.

**The cost of interest-bearing liabilities** was 3.49% in the second quarter of 2025, down from 3.59% in the first quarter of 2025 and down from 4.06% in the second quarter of 2024. The decrease from the first quarter of 2025 was primarily due to continued repricing in the time deposit portfolio, coupled with a notable reduction in borrowings outstanding during the quarter. Compared to the same quarter last year, the cost of interest-bearing liabilities decreased substantially by 57 basis points. This improvement in funding costs reflects effective balance sheet management, including disciplined deposit pricing and a reduced reliance on higher-cost borrowings, allowing the Company to optimize its funding mix amidst ongoing competitive pressures and industry-wide shifts in deposit behavior.

**Credit loss expense (reversal)** was $1.04 million during the second quarter of 2025, compared to a reversal of $0.2 million in the first quarter of 2025, and an expense of $0.2 million for the second quarter of 2024. The increase in credit loss expense from the first quarter was primarily attributable to estimated collectability on a loan individually analyzed. Gross charge-offs remained modest at $72,000, while recoveries totaled $97,000, resulting in net recoveries of $25,000 during the second quarter of 2025. The Company's allowance for credit losses stood at $9.34 million, or 1.19% of total loans, as of June 30, 2025.

**Noninterest income** totaled $1.83 million for the second quarter of 2025, up from $1.23 million in the prior quarter and $1.20 million in the second quarter of 2024. The quarter-over-quarter increase of $0.6 million was primarily driven by growth in other income, which increased by $0.5 million to $0.7 million. This increase is primarily attributed to higher gains on sales of government guaranteed loans and loan prepayment fees. Compared to the same quarter last year, the $0.63 million increase in noninterest income was largely due to higher gains on sales of government guaranteed loans, higher service charges and fee-based revenue, supported by expanded deposit relationships and increased transaction volumes.

**Noninterest expenses** totaled $6.18 million for the second quarter of 2025, compared to $5.63 million in the first quarter of 2025 and $5.08 million in the second quarter of 2024. The quarter-over-quarter increase of $0.55 million was primarily due to higher salaries and employee benefits, which increased by $0.36 million to $3.74 million from $3.38 million in the prior quarter, reflecting staff growth and seasonal compensation. Compared to the second quarter of 2024, the increase of $1.10 million was driven by the same staffing-related trends, as well as increases in occupancy, data processing, and other operating expenses, as the Company continued investing in infrastructure and growth initiatives.

The following table depicts the components of *noninterest expenses* for the quarterly periods presented:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **2Q25 change vs** | **2Q25 change vs** |
|  | **2Q25** | **1Q25** | **4Q24** | **3Q24** | **2Q24** | **1Q25** | **2Q24** |
| **Noninterest expenses** |  |  |  |  |  |  |  |
| Salaries and employee benefits | $3738 | $3381 | $2145 | $3078 | $3031 | $357 | $707 |
| Professional fees | 275 | 247 | 374 | 266 | 238 | 28 | 37 |
| Occupancy and equipment | 294 | 282 | 243 | 234 | 202 | 12 | 92 |
| Data processing | 625 | 533 | 570 | 574 | 575 | 92 | 50 |
| Regulatory assessment | 202 | 198 | 204 | 241 | 231 | 4 | (29) |
| Other | 1047 | 985 | 846 | 892 | 807 | 62 | 240 |
| **Total noninterest expenses** | $6181 | $5626 | $4382 | $5285 | $5084 | $555 | $1097 |

---

**Income tax expense** was $1.25 million for the second quarter of 2025, down slightly from $1.33 million in the first quarter of 2025 and $1.17 million in the second quarter of 2024. The effective tax rate for the quarter was 25.8%, compared to 25.5% in the prior quarter and 25.0% from the prior year comparative quarter. The slight increase in the effective tax rate was attributable to shifts in the mix of taxable income and fewer discrete tax benefits during the quarter.

***Balance Sheet***

 ****

**Total assets** were $999.13 million as of June 30, 2025, increasing from $977.47 million at March 31, 2025, and up from $899.78 million at June 30, 2024. The quarter-over-quarter growth of $21.66 million was primarily attributable to a $43.01 million rise in interest-bearing deposits with banks. This increase was partially offset by a decrease in cash and due from banks, and a $16.68 million decline in net loans.

**Cash and cash equivalents** at June 30, 2025, was $181.75 million, up significantly from $143.46 million at March 31, 2025, and up from $104.06 million at June 30, 2024. The increase was primarily driven by the growth in interest-bearing deposits with banks.

**Investment securities** (debt securities available for sale and held-to-maturity) at June 30, 2025, were $22.64 million, compared to $23.31 million at March 31, 2025, and $23.86 million at June 30, 2024. Compared to March 31, 2025, investment securities decreased by $0.67 million, and compared to June 30, 2024, decreased by $1.22 million. No sales of debt securities were reported during these periods.

**Total gross loans** at June 30, 2025, were $784.56 million, a decrease from $800.24 million at March 31, 2025, but up from $761.07 million at June 30, 2024. Gross loans decreased during the quarter due to larger pay off experience in the quarter and the resolution of a $5.6 million nonperforming loan. Compared to June 30, 2024, the gross loan portfolio increased by $23.49 million, reflecting growth over the past year.

**The allowance for credit losses ("ACL")** was $9.34 million as of June 30, 2025, representing 1.19% of total loans, increasing from 1.03% at March 31, 2025, and up from $8.27 million and $8.21 million at March 31, 2025, and June 30, 2024, respectively. The quarter-over-quarter increase of $1.07 million was primarily driven by a credit loss expense of $1.04 million during the second quarter of 2025, reflecting estimated collectability on a loan individually analyzed and updates to forward-looking loss assumptions. The increase was further supported by net recoveries of $25,000, as gross charge-offs remained modest at $72,000 and recoveries totaled $97,000. The ACL ratio reflects continued credit discipline and a well-diversified loan portfolio.

The following table presents the components of the ACL as of the dates indicated:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | **June 30, 2025 change **vs** | **June 30, 2025 change **vs** |
|  |<br>**June 30,**<br>**2025** |<br>**March 31,**<br>**2025** |<br>**December 31,**<br>**2024** |<br>**September 30,**<br>**2024** |<br>**June 30,**<br>**2024** | **March 31,**<br>**2025** | **June 30,**<br>**2024** |
| **Beginning balance** | $**8270** | $**8660** | $**8337** | $**8208** | $**8281** | $**(390)** | $**(11)** |
| Credit loss expense (reversal) - funded | 1043 | (144) | 569 | 409 | 263 | 1187 | 780 |
| Charge-offs | (72) | (325) | (336) | (366) | (440) | 253 | 368 |
| Recoveries | 97 | 79 | 90 | 86 | 104 | 18 | (7) |
| **Ending balance** | $**9338** | $**8270** | $**8660** | $**8337** | $**8208** | $**1068** | $**1130** |

---

**Nonaccrual loans** totaled $3.22 million at June 30, 2025, compared to $7.51 million at March 31, 2025, and $2.78 million at June 30, 2024. The decrease from the prior quarter was primarily due to the resolution of a nonaccrual land and construction loan. There were no loans 90 days or more past due and still accruing interest as of June 30, 2025. Additionally, the Company did not report any modified loans to borrowers experiencing financial difficulty during the second quarter of 2025.

**Nonperforming assets (NPA)** reflected strong asset quality at June 30, 2025. Nonaccrual loans, a key component of NPA, decreased to $3.22 million from $7.58 million at December 31, 2024. Furthermore, the Company reported no real estate owned (OREO) outstanding.

**Total deposits** at June 30, 2025, were $878.87 million, an increase from $852.93 million at March 31, 2025, and from $762.65 million at June 30, 2024. The increase from March 31, 2025, was attributable to increases in noninterest-bearing demand deposits and savings, NOW and money-market deposits, partially offset by a decrease in time deposits. Noninterest-bearing demand deposits notably rose from $235.78 million to $259.82 million. Noninterest-bearing deposits accounted for 29.56% of total deposits at June 30, 2025, compared to 27.64% at March 31, 2025 and 30.28% at June 30, 2024. The Company continues to maintain a diverse and stable funding base.

**Accumulated other comprehensive loss (AOCL)** was $(5.41) million at June 30, 2025. This compares to $(5.15) million at March 31, 2025, and $(5.45) million at June 30, 2024. The unrealized loss in AOCL widened by $(0.26) million quarter-over-quarter, primarily due to adverse movements in long-term interest rates impacting the fair value of available-for-sale securities, as the Company recorded an unrealized loss of $(0.34 million) on these securities during the period. Year-over-year, AOCL slightly narrowed by $0.04 million, reflecting the net impact of fair value changes over the trailing twelve months. All AOCL amounts represent unrealized losses and have no impact on reported earnings.

**Shareholders' equity** was $111.35 million as of June 30, 2025, compared to $108.00 million as of March 31, 2025, and $86.97 million as of June 30, 2024. The quarter increase was principally attributable to second quarter net earnings of $3.60 million, partially offset by an increase in accumulated other comprehensive loss and a slight decrease in additional paid-in capital.

**Tangible book value** per share at June 30, 2025, was $9.48, up from $9.19 at March 31, 2025, and $8.99 at June 30, 2024. This non-diluted measure is based on common shares outstanding, which were 11,751,082 at June 30, 2025 (unchanged from March 31, 2025, and up from 9,677,431 at June 30, 2024).

However, while GAAP accounting generally presents book value based on common shares outstanding, the Company believes a more comprehensive measure of shareholder value, particularly given its capital structure, is on a fully diluted basis. This is because its preferred shares convert without accumulating a coupon, essentially acting as nonvoting common equity.

On a fully diluted basis, tangible book value per share was $4.76 at June 30, 2025, up from $4.62 at March 31, 2025, and $4.08 at June 30, 2024. This is based on fully diluted shares outstanding of 23,390,612 at June 30, 2025 (unchanged from March 31, 2025, and up from 21,316,961 at June 30, 2024).

The increase in both non-diluted and fully diluted tangible book value per share reflects strong quarterly earnings performance and overall capital strength. The Bank remains well capitalized with a Tier 1 Capital to Total Assets ratio of 11.89%, which is well above regulatory minimums.

**FORWARD-LOOKING STATEMENTS** 

Certain statements made in this report which are not statements of historical fact are forward-looking statements within the meaning of, and subject to the protection of, the federal securities laws. Forward looking statements include, among others, statements with respect to our beliefs, plans, objectives, goals, targets, expectations, anticipations, assumptions, estimates, intentions and future performance and involve known and unknown risks, many of which are beyond our control and which may our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements made in this report. You can identify forward-looking statements through our use of words such as "believes," "anticipates," "expects," "may," "will," "assumes," "should," "predicts," "could," "should," "would," "intends," "targets," "estimates," "projects," "plans," "potential" and other similar words and expressions. Forward-looking statements are based on our current beliefs and expectations and are subject to significant risks and uncertainties. Accordingly, we caution you not to place undue reliance on such statements. We undertake no obligation to update or revise any of our forward-looking statements for events or circumstances that arise after the statement is made, except as otherwise may be required by law.

**Investor Relations & Corporate Relations**

Contact: Seth Denison

Telephone: (305) 401-4140

Email: <u>SDenison@OptimumBank.com</u>

OptimumBank Holdings, Inc.

Consolidated Balance Sheet

*(Dollars in thousands)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | **June 30, 2025 change vs** | **June 30, 2025 change vs** |
|  |<br>**June 30,**<br>**2025** |<br>**March 31,**<br>**2025** |<br>**December 31,**<br>**2024** |<br>**September 30,**<br>**2024** |<br>**June 30,**<br>**2024** | **March 31,**<br>**2025** | **June 30,**<br>**2024** |
| **Assets** |  |  |  |  |  |  |  |
| Cash and due from banks | $8833 | $13542 | $13982 | $15357 | $11923 | $(4709) | $(3090) |
| Interest-bearing deposits with banks | 172921 | 129914 | 79648 | 116242 | 92133 | 43007 | 80788 |
| Total cash and cash equivalents | 181754 | 143456 | 93630 | 131599 | 104056 | 38298 | 77698 |
| Debt securities available for sale | 22378 | 23043 | 22773 | 24495 | 23540 | (665) | (1162) |
| Debt securities held-to-maturity | 260 | 269 | 281 | 300 | 315 | (9) | (55) |
| Loans, net of allowance for credit losses | 774548 | 791232 | 794985 | 768914 | 751903 | (16684) | 22645 |
| Federal Home Loan Bank stock | 658 | 1128 | 2929 | 2454 | 2691 | (470) | (2033) |
| Premises and equipment, net | 2426 | 2249 | 2062 | 1938 | 1877 | 177 | 549 |
| Right-of-use lease assets | 2552 | 2647 | 2679 | 1950 | 2021 | (95) | 531 |
| Accrued interest receivable | 3138 | 3287 | 3348 | 3147 | 2994 | (149) | 144 |
| Deferred tax asset | 3135 | 2777 | 3001 | 2788 | 3024 | 358 | 111 |
| Other assets | 8278 | 7380 | 7245 | 7607 | 7357 | 898 | 921 |
| **Total assets** | $999127 | $977468 | $932933 | $945192 | $899778 | $21659 | $99349 |
| **Liabilities and Stockholders' Equity** |  |  |  |  |  |  |  |
| **Liabilities** |  |  |  |  |  |  |  |
| Noninterest-bearing demand deposits | $259816 | $235779 | $211900 | $202373 | $230947 | $24037 | $28869 |
| Savings, NOW and money-market deposits | 300907 | 289768 | 278355 | 318402 | 300378 | 11139 | 529 |
| Time deposits | 318142 | 327387 | 281940 | 285731 | 231321 | (9245) | 86821 |
| Total deposits | 878865 | 852934 | 772195 | 806506 | 762646 | 25931 | 116219 |
| Federal Home Loan Bank advances |  | 10000 | 50000 | 40000 | 45000 | (10000) | (45000) |
| Operating lease liabilities | 2661 | 2746 | 2774 | 2056 | 2122 | (85) | 539 |
| Other liabilities | 6253 | 3785 | 4780 | 3935 | 3039 | 2468 | 3214 |
| **Total liabilities** | 887779 | 869465 | 829749 | 852497 | 812807 | 18314 | 74972 |
| **Stockholders' equity** |  |  |  |  |  |  |  |
| Preferred stock |  |  |  |  |  |  |  |
| Series B Convertible Preferred |  |  |  |  |  |  |  |
| Series C Convertible Preferred |  |  |  |  |  |  |  |
| Common stock | 118 | 118 | 116 | 99 | 96 |  | 22 |
| Additional paid-in capital | 112010 | 112015 | 111485 | 103878 | 102424 | (5) | 9586 |
| Retained earnings (accumulated deficit) | 4625 | 1023 | (2847) | (6796) | (10098) | 3602 | 14723 |
| Accumulated other comprehensive loss | (5405) | (5153) | (5570) | (4486) | (5451) | (252) | 46 |
| **Total stockholders' equity** | 111348 | 108003 | 103184 | 92695 | 86971 | 3345 | 24377 |
| **Total liabilities and stockholders' equity** | $999127 | $977468 | $932933 | $945192 | $899778 | $21659 | $99349 |

---

OptimumBank Holdings, Inc.

Consolidated Statements of Earnings - Quarterly

*(Dollars in thousands, except per share amounts)*

 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **Quarterly Trends** | **2Q25 change vs** | **2Q25 change vs** |
|  | **2Q25** | **1Q25** | **4Q24** | **3Q24** | **2Q24** | **1Q25** | **2Q24** |
| **Interest income** |  |  |  |  |  |  |  |
| Loans | $14026 | $13601 | $13679 | $13588 | $12948 | $425 | $1078 |
| Debt securities | 158 | 160 | 154 | 163 | 165 | (2) | (7) |
| Other | 1404 | 1246 | 1809 | 1583 | 2075 | 158 | (671) |
| **Total interest income** | 15588 | 15007 | 15642 | 15334 | 15188 | 581 | 400 |
| **Interest expense** |  |  |  |  |  |  |  |
| Deposits | 5322 | 5278 | 6005 | 5962 | 5919 | 44 | (597) |
| Borrowings | 24 | 303 | 402 | 410 | 527 | (279) | (503) |
| **Total interest expense** | 5346 | 5581 | 6407 | 6372 | 6446 | (235) | (1100) |
| **Net interest income** | 10242 | 9426 | 9235 | 8962 | 8742 | 816 | 1500 |
| Credit loss expense (reversal) | 1040 | (165) | 613 | 357 | 195 | 1205 | 845 |
| **Net interest income after credit loss expense (reversal)** | 9202 | 9591 | 8622 | 8605 | 8547 | 2021 | 2345 |
| **Noninterest income** |  |  |  |  |  |  |  |
| Service charges and fees | 1099 | 1038 | 958 | 990 | 864 | 61 | 235 |
| Other | 735 | 193 | 110 | 125 | 337 | 542 | 398 |
| **Total noninterest income** | 1834 | 1231 | 1068 | 1115 | 1201 | 603 | 633 |
| **Noninterest expenses** |  |  |  |  |  |  |  |
| Salaries and employee benefits | 3738 | 3381 | 2145 | 3078 | 3031 | 357 | 707 |
| Professional fees | 275 | 247 | 374 | 266 | 238 | 28 | 37 |
| Occupancy and equipment | 294 | 282 | 243 | 234 | 202 | 12 | 92 |
| Data processing | 625 | 533 | 570 | 574 | 575 | 92 | 50 |
| Regulatory assessment | 202 | 198 | 204 | 241 | 231 | 4 | (29) |
| Other | 1047 | 985 | 846 | 892 | 807 | 62 | 240 |
| **Total noninterest expenses** | 6181 | 5626 | 4382 | 5285 | 5084 | 555 | 1097 |
| **Net earnings before income taxes** | 4855 | 5196 | 5308 | 4435 | 4664 | (341) | 191 |
| Income taxes | 1253 | 1326 | 1359 | 1133 | 1168 | (73) | 85 |
| **Net earnings** | $3602 | $3870 | $3949 | $3302 | $3496 | $(268) | $106 |
| Net earnings per share - Basic | $0.31 | $0.33 | $0.38 | $0.34 | $0.36 | $(0.02) | $(0.05) |
| Net earnings per share - Diluted | $0.29 | $0.32 | $0.36 | $0.32 | $0.34 | $(0.03) | $(0.05) |

---

OptimumBank Holdings, Inc.

Consolidated Statements of Earnings - Year-to-Date

*(Dollars in thousands, except per share amounts)*

 

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** | |
|  | **June 30,** | **June 30,** | |
|  | **2025** | **2024** |<br>**Change** |
| **Interest income** |  |  |  |
| Loans | $27627 | $24784 | $2843 |
| Debt securities | 318 | 336 | (18) |
| Other | 2650 | 3534 | (884) |
| **Total interest income** | 30595 | 28654 | 1941 |
| **Interest expense** |  |  |  |
| Deposits | 10600 | 10997 | (397) |
| Borrowings | 327 | 1164 | (837) |
| **Total interest expense** | 10927 | 12161 | (1234) |
| **Net interest income** | 19668 | 16493 | 3175 |
| Credit loss expense | 875 | 1253 | (378) |
| **Net interest income after credit loss expense** | 18793 | 15240 | 3553 |
| **Noninterest income** |  |  |  |
| Service charges and fees | 2137 | 1832 | 305 |
| Other | 928 | 608 | 320 |
| **Total noninterest income** | 3065 | 2440 | 625 |
| **Noninterest expenses** |  |  |  |
| Salaries and employee benefits | 7119 | 5879 | 1240 |
| Professional fees | 522 | 433 | 89 |
| Occupancy and equipment | 576 | 408 | 168 |
| Data processing | 1158 | 1129 | 29 |
| Regulatory assessment | 400 | 352 | 48 |
| Other | 2032 | 1591 | 441 |
| **Total noninterest expenses** | 11807 | 9792 | 2015 |
| **Net earnings before income taxes** | 10051 | 7888 | 2163 |
| Income taxes | 2579 | 2015 | 564 |
| **Net earnings** | $7472 | $5873 | $1599 |
| Net earnings per share - Basic | $0.64 | $0.68 | $(0.04) |
| Net earnings per share - Diluted | $0.61 | $0.66 | $(0.05) |

---

OptimumBank Holdings, Inc.

Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (QTD)

*(Dollars in thousands, except average yields/rates)*

 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2Q25** | **2Q25** | **2Q25** | **1Q25** | **1Q25** | **1Q25** | **2Q24** | **2Q24** | **2Q24** |
|  |<br>**Average**<br>**Balance** | **Interest**<br>**and**<br>**Dividends** | **Average**<br>**Yield/**<br>**Rate<sup>(5)</sup>** |<br>**Average**<br>**Balance** | **Interest**<br>**and**<br>**Dividends** | **Average**<br>**Yield/**<br>**Rate<sup>(5)</sup>** |<br>**Average**<br>**Balance** | **Interest**<br>**and**<br>**Dividends** | **Average**<br>**Yield/**<br>**Rate<sup>(5)</sup>** |
| **Interest-earning assets** |  |  |  |  |  |  |  |  |  |
| Loans | $803171 | $14026 | 6.99% | $796846 | $13601 | 6.83% | $753726 | $12948 | 6.87% |
| Securities | 22684 | 158 | 2.79% | 22977 | 160 | 2.79% | 23491 | 165 | 2.81% |
| Other (1) | 123254 | 1404 | 4.56% | 109863 | 1246 | 4.54% | 146605 | 2075 | 5.66% |
| **Total interest-earning assets/interest income** | 949109 | 15588 | 6.57% | 929686 | 15007 | 6.46% | 923822 | 15188 | 6.58% |
| Cash and due from banks | 12833 |  |  | 14177 |  |  | 12871 |  |  |
| Premises and equipment | 2336 |  |  | 2139 |  |  | 1729 |  |  |
| Other | 8421 |  |  | 7862 |  |  | 7091 |  |  |
| **Total assets** | $972699 |  |  | $953864 |  |  | $945513 |  |  |
| **Interest-bearing liabilities** |  |  |  |  |  |  |  |  |  |
| Savings, NOW and money-market deposits | $280454 | $1742 | 2.48% | $277012 | $1751 | 2.53% | $325734 | $2550 | 3.13% |
| Time deposits | 330118 | 3580 | 4.34% | 312116 | 3527 | 4.52% | 258325 | 3369 | 5.22% |
| Borrowings (2) | 2222 | 24 | 4.32% | 32222 | 303 | 3.76% | 50476 | 527 | 4.18% |
| **Total interest-bearing liabilities/interest expense** | 612794 | 5346 | 3.49% | 621350 | 5581 | 3.59% | 634535 | 6446 | 4.06% |
| Noninterest-bearing demand deposits | 241457 |  |  | 219204 |  |  | 220942 |  |  |
| Other liabilities | 8502 |  |  | 7719 |  |  | 6041 |  |  |
| Stockholders' equity | 109946 |  |  | 105591 |  |  | 83995 |  |  |
| **Total liabilities and stockholders' equity** | $972699 |  |  | $953864 |  |  | $945513 |  |  |
| **Net interest income** |  | $10242 |  |  | $9426 |  |  | $8742 |  |
| **Interest-rate spread (3)** |  |  | 3.08% |  |  | 2.87% |  |  | 2.52% |
| **Net interest margin (4)** |  |  | 4.32% |  |  | 4.06% |  |  | 3.79% |
| **Ratio of average interest-earning assets to average interest-bearing liabilities** | 1.55 |  |  | 1.50 |  |  | 1.46 |  |  |

---

(1) Includes
 interest-earning deposits with banks and Federal Home Loan Bank stock dividends.

(2) Includes
 Federal Home Loan Bank advances and Federal Reserve Bank advances.

(3) Interest-rate
 spread represents the difference between the 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.

(5) Annualized.

OptimumBank Holdings, Inc.

Consolidated Average Balances, Interest Income and Expenses, Yields and Rates (YTD)

*(Dollars in thousands, except average yields/rates)*

 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | | **Interest** | **Average** | | **Interest** | **Average** |
|  | **Average** | **and** | **Yield/** | **Average** | **and** | **Yield/** |
|  | **Balance** | **Dividends** | **Rate<sup>(5)</sup>** | **Balance** | **Dividends** | **Rate<sup>(5)</sup>** |
| **Interest-earning assets** |  |  |  |  |  |  |
| Loans | $800008 | $27627 | 6.91% | $730202 | $24784 | 6.79% |
| Securities | 22831 | 318 | 2.79% | 23828 | 336 | 2.82% |
| Other (1) | 116559 | 2650 | 4.55% | 126500 | 3534 | 5.59% |
| **Total interest-earning assets/interest income** | 939398 | 30595 | 6.51% | 880530 | 28654 | 6.51% |
| Cash and due from banks | 13504 |  |  | 14018 |  |  |
| Premises and equipment | 2238 |  |  | 1602 |  |  |
| Other | 8134 |  |  | 6272 |  |  |
| **Total assets** | $963274 |  |  | $902422 |  |  |
| **Interest-bearing liabilities** |  |  |  |  |  |  |
| Savings, NOW and money-market deposits | $278733 | $3493 | 2.51% | $322360 | $4906 | 3.04% |
| Time deposits | 321117 | 7107 | 4.43% | 229791 | 6091 | 5.30% |
| Borrowings (2) | 17223 | 327 | 3.80% | 54508 | 1164 | 4.27% |
| **Total interest-bearing liabilities/interest expense** | 617073 | 10927 | 3.54% | 606659 | 12161 | 4.01% |
| Noninterest-bearing demand deposits | 230330 |  |  | 211878 |  |  |
| Other liabilities | 8102 |  |  | 5732 |  |  |
| Stockholders' equity | 107769 |  |  | 78153 |  |  |
| **Total liabilities and stockholders' equity** | $963274 |  |  | $902422 |  |  |
| **Net interest income** |  | $19668 |  |  | $16493 |  |
| **Interest-rate spread (3)** |  |  | 2.97% |  |  | 2.50% |
| **Net interest margin (4)** |  |  | 4.19% |  |  | 3.75% |
| **Ratio of average interest-earning assets to average interest-bearing liabilities** | 1.52 |  |  | 1.45 |  |  |

---

(1) Includes
 interest-earning deposits with banks and Federal Home Loan Bank stock dividends.

(2) Includes
 Federal Home Loan Bank advances and Federal Reserve Bank advances.

(3) Interest-rate
 spread represents the difference between the 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.

(5) Annualized.

OptimumBank Holdings, Inc.

Loans Segments Analysis

*(Dollars in thousands)*

 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | **June 30, 2025 change vs** | **June 30, 2025 change vs** |
|  |<br>**June 30,**<br>**2025** |<br>**March 31,**<br>**2025** |<br>**December 31,**<br>**2024** |<br>**September 30,**<br>**2024** |<br>**June 30,**<br>**2024** | **March 31,**<br>**2025** | **June 30,**<br>**2024** |
| Residential real estate | $66602 | $71638 | $74064 | $75877 | $76721 | $(5036) | $(10119) |
| Multi-family real estate | 68321 | 63615 | 64001 | 62280 | 63432 | 4706 | 4889 |
| Commercial real estate | 478224 | 482113 | 485671 | 479038 | 485439 | (3889) | (7215) |
| Land and construction | 61126 | 80338 | 77295 | 72729 | 64862 | (19212) | (3736) |
| Commercial | 50351 | 50585 | 52810 | 39957 | 36133 | (234) | 14218 |
| Consumer | 59940 | 51955 | 50399 | 48177 | 34485 | 7985 | 25455 |
| **Total loans** | 784564 | 800244 | 804240 | 778058 | 761072 | (15680) | 23492 |
| Deduct: |  |  |  |  |  |  |  |
| Net deferred loan fees and costs | (678) | (742) | (595) | (807) | (961) | 64 | 283 |
| Allowance for credit losses | (9338) | (8270) | (8660) | (8337) | (8208) | (1068) | (1130) |
| **Loans, net** | $774548 | $791232 | $794985 | $768914 | $751903 | $(16684) | $22645 |

---

OptimumBank Holdings, Inc.

Allowance for Credit Losses Analysis

*(Dollars in thousands)*

 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | **June 30, 2025 change vs** | **June 30, 2025 change vs** |
|  |<br>**June 30,**<br>**2025** |<br>**March 31,**<br>**2025** |<br>**December 31,**<br>**2024** |<br>**September 30,**<br>**2024** |<br>**June 30,**<br>**2024** | **March 31,**<br>**2025** | **June 30,**<br>**2024** |
| **Beginning balance** | $**8270** | $**8660** | $**8337** | $**8208** | $**8281** | $**(390)** | $**(11)** |
| Credit loss expense (reversal) - funded | 1043 | (144) | 569 | 409 | 263 | 1187 | 780 |
| Charge-offs | (72) | (325) | (336) | (366) | (440) | 253 | 368 |
| Recoveries | 97 | 79 | 90 | 86 | 104 | 18 | (7) |
| **Ending balance** | $**9338** | $**8270** | $**8660** | $**8337** | $**8208** | $**1068** | $**1130** |

---

 

**Explanation of Certain Unaudited Non-GAAP Financial Measures** 

This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles ("GAAP"). Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.

Non-GAAP Reconciliations

Pre-tax, Pre-provision earnings

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars in thousands) | **2Q25** | **1Q25** | **4Q24** | **3Q24** | **2Q24** |
| Net Earnings (GAAP) | $3602 | $3870 | $3949 | $3302 | $3496 |
| Plus: Income Tax Expense | 1253 | 1326 | 1359 | 1133 | 1168 |
| Plus: Credit Loss Expense (Reversal) | 1040 | (165) | 613 | 357 | 195 |
| Pre-tax, Pre-provision earnings (Non-GAAP) | $5895 | $5031 | $5921 | $4792 | $4859 |

---

Tangible Book Value Per Common Share and Per Fully Diluted Share

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars in thousands, except per share data) | **6/30/2025** | **3/31/2025** | **12/31/2024** | **9/30/2024** | **6/30/2024** |
| Total Stockholders' (GAAP) and Tangible Common Equity | $111348 | $108003 | $103184 | $92695 | $86971 |
| Common Shares Outstanding | 11751 | 11751 | 11636 | 10007 | 9677 |
| Effect of Conversion of Series B Preferred Shares | 11114 | 11114 | 11114 | 11114 | 11114 |
| Effect of Conversion of Series C Preferred Shares | 526 | 526 | 526 | 526 | 526 |
| Total Fully Diluted Shares (Non-GAAP) | 23391 | 23391 | 23276 | 21646 | 21317 |
| Tangible Book Value per Common Share | $9.48 | $9.19 | $8.87 | $9.26 | $8.99 |
| Tangible Book Value per Fully Diluted Share (Non-GAAP) | $4.76 | $4.62 | $4.43 | $4.28 | $4.08 |

---