OptimumBank (OPHC) investor relations material

Executive summary

• Net income for Q1 2026 was $4.7 million, up 20.5% year-over-year, with EPS of $0.39 basic and $0.20 diluted, though down $0.2 million sequentially due to higher noninterest and credit loss expenses.

• Total assets increased by $157.1 million to $1.3 billion at March 31, 2026, driven by loan growth and deposit inflows.

• Strategic initiatives focused on expanding earning assets, core deposits, treasury management fee income, and continued investment in technology and talent.

• Subsidiaries OptimumFinance LLC and OptimumHUD Loans, LLC were formed to expand lending capabilities and specialized financing, with the first loan closed through OptimumFinance in April 2026.

• Shareholders’ equity increased to $126.8 million, reflecting earnings retention and stock issuance.

Financial highlights

• Net interest income rose 39.9% to $13.2 million compared to Q1 2025, supported by higher loan yields and lower funding costs.

• Net interest margin expanded to 4.49% for Q1 2026, up from 4.06% in Q1 2025 and 10 bps from Q4 2025.

• Noninterest income grew 44.9% to $1.8 million, mainly from higher service charges and fees.

• Noninterest expenses increased 42.3% to $8.0 million, mainly due to higher compensation and investments in personnel and data processing.

• Allowance for credit losses was $11.1 million (1.01% of loans) at March 31, 2026.

Outlook and guidance

• Management expects continued growth in earning assets and deposits, leveraging technology upgrades and expanded product offerings.

• The company is investing in automation and digital services to enhance efficiency and support further expansion.

• Expansion into new financial verticals began in April 2026.

• Ranked in the top 1.4% of U.S. community banks by S&P Global Market Intelligence.