Optimumbank Holdings (OPHC) AI Stock Analysis

• Market Cap: $64.73M
• Dividend Yield: N/A
• Average Volume (3M): 12.23K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.60
• Revenue Growth: 14.91%
• EPS Growth: 0.81%
• Country: US
• Employees: 73
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.21
• Shares Outstanding: 11,533,943
• 10 Day Avg. Volume: 10,619
• 30 Day Avg. Volume: 12,234
• PEG Ratio: 1.39
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 2.80
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 0.82
• Enterprise Value/Ebitda: 60.22
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.86
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $6.00 ▲(38.89% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by improved fundamentals (stronger profitability, better cash generation, and a materially cleaner 2025 balance sheet), supported by a low P/E valuation and constructive price momentum. The main offset is the 2025 revenue decline and some inconsistency in reported 2025 income statement fields, which reduce confidence in the latest margin detail.

Positive Factors

Improving Profitability

OptimumBank moved from losses in 2020 to materially higher net margins (roughly 16%–26% in 2022–2025) with net income up to $16.6M in 2025. This sustained earnings improvement strengthens internal capital, supports dividend/capex flexibility, and underpins durable credit capacity.

De‑risked balance sheet

A materially lower debt load and very low leverage in 2025 reduce funding and solvency risk, improving resilience to rate or credit shocks. A larger equity base gives headroom for lending growth and regulatory ratios, supporting sustainable expansion over the medium term.

Strategic HUD/FHA lending expansion

Creating OptimumFunding to originate bridge-to-HUD and FHA/HUD-insured loans leverages bank expertise in healthcare and multifamily finance. This structural product expansion diversifies revenue, deepens client relationships, and creates a durable origination-to-servicing franchise in regulated, government‑insured lending.

Negative Factors

2025 Revenue Decline

Revenue contraction in 2025 (-6.3%) contrasts with rising net income, suggesting reliance on margin or one-off items. A falling top line can limit sustainable growth, compress future operating leverage, and complicate long-range forecasting of core banking revenues and fee streams.

Reporting inconsistencies

Inconsistent or incomplete 2025 income statement figures reduce transparency, making it harder to validate margin trends and cash conversion. That uncertainty raises the risk of future restatements, weaker investor confidence, and challenges for precise capital and credit planning over coming quarters.

Historical leverage volatility

Prior years' high leverage indicates the balance sheet can re‑leverage rapidly under funding or growth pressure. The 2025 de‑risking may prove temporary if capital needs or loan growth accelerate, potentially increasing funding costs and credit risk sensitivity in the medium term.

Optimumbank Holdings Business Overview & Revenue Model

Company Description

OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides various consumer and commercial banking services to individuals and businesses. It accepts demand interest-bearing and noninterest-bearing, savings, money market, NOW, and time deposit accounts, as well as certificates of deposit; and offers residential and commercial real estate, multi-family real estate, commercial, land and construction, and consumer loans, as well as lending lines for working capital needs. The company also provides debit and ATM cards; investment, cash management, notary, and night depository services; and direct deposits, money orders, cashier's checks, domestic collections, and banking by mail, as well as internet banking services. It operates through two banking offices located in Broward County, Florida. The company was founded in 2000 and is based in Fort Lauderdale, Florida.

How the Company Makes Money

Optimumbank Holdings generates revenue through multiple streams. The primary source is interest income from loans issued to customers, including personal, mortgage, and business loans. Additionally, the bank earns fee income from various services such as account maintenance fees, transaction fees, and wealth management services. Investment income from the bank's securities portfolio also contributes to revenue. Strategic partnerships with financial technology firms enhance the bank’s offerings and attract a broader customer base, further supporting its earnings. Overall, the company’s diversified approach to financial services allows it to capitalize on various market opportunities and mitigate risks.

Optimumbank Holdings Financial Statement Overview

Summary

Multi-year profitability improvement (losses in 2020 to ~16%–26% net margins in 2022–2025) with net income rising to $16.6M in 2025 and operating/free cash flow improving (FCF $17.8M in 2025). Balance sheet de-risked in 2025 with sharply lower debt (~$2.7M) and very low leverage, though 2025 revenue turned negative (-6.3%) and some 2025 income statement fields appear inconsistent, reducing transparency.

Income Statement

Profitability has improved meaningfully over time, with net margins strengthening from losses in 2020 (-11.2%) to solid profitability in 2022–2025 (roughly 16%–26%), and net income rising from $4.0M (2022) to $16.6M (2025). Revenue growth was strong in 2021–2023, but momentum faded in 2024 and turned negative in 2025 (-6.3%), which is the key concern. Reported operating profit metrics in 2025 appear inconsistent (e.g., gross profit and margins shown as 0), limiting confidence in margin trend analysis for the latest year.

Balance Sheet

The balance sheet shows a notable de-risking in 2025, with debt dropping sharply to $2.7M and leverage falling to very low levels (debt-to-equity ~0.02) while equity increased to $121.9M. Returns on equity have generally trended upward (from ~6% in 2022 to ~13.7% in 2025), supporting improved profitability on a larger capital base. The main weakness is historical leverage volatility—debt-to-equity was high in 2023 (~1.80) and near 1.0 in 2024—so the sustainability of the 2025 step-change is an important watch item.

Cash Flow

Cash generation is solid and improving, with operating cash flow rising to $17.8M in 2025 (from $15.6M in 2024) and free cash flow also reaching $17.8M, up ~5.3% year over year. Free cash flow has generally tracked net income well (near ~0.90–1.00 in most years), suggesting earnings quality is reasonable. The key caution is data volatility/consistency: earlier years show very low cash flow-to-debt service coverage figures despite positive cash flow, and 2020 included negative operating and free cash flow, indicating sensitivity under stress.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.35M	64.25M	39.23M	22.84M	11.82M
Gross Profit	0.00	37.09M	23.12M	15.33M	9.66M
EBITDA	884.00K	18.23M	9.02M	5.96M	3.37M
Net Income	16.65M	13.12M	6.28M	4.02M	6.30M
Balance Sheet
Total Assets	1.11B	932.93M	791.25M	585.22M	351.88M
Cash, Cash Equivalents and Short-Term Investments	34.53M	116.40M	101.02M	96.94M	93.36M
Total Debt	2.75M	102.77M	126.25M	22.17M	37.77M
Total Liabilities	989.78M	829.75M	721.25M	522.64M	313.37M
Stockholders Equity	121.90M	103.18M	70.01M	62.58M	38.51M
Cash Flow
Free Cash Flow	17.84M	14.62M	6.21M	10.04M	3.38M
Operating Cash Flow	17.84M	15.61M	6.88M	10.36M	3.76M
Investing Cash Flow	-156.68M	-125.47M	-199.66M	-229.80M	-108.76M
Financing Cash Flow	159.77M	126.83M	197.61M	232.31M	109.34M

Optimumbank Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPHC, the sentiment is Positive. The current price of 4.32 is below the 20-day moving average (MA) of 5.14, below the 50-day MA of 4.72, and below the 200-day MA of 4.40, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 66.57 is Neutral, neither overbought nor oversold. The STOCH value of 36.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPHC.

Optimumbank Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPHC	78 Outperform	$64.73M	5.30	15.03%	―	14.91%	0.81%
HFBL	78 Outperform	$58.46M	11.21	8.21%	3.21%	0.32%	37.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASRV	66 Neutral	$62.78M	11.19	4.54%	3.87%	6.89%	―
TCBS	55 Neutral	$48.68M	19.64	4.74%	1.10%	12.12%	―
BAFN	48 Neutral	$27.21M	-1.12	-11.14%	4.10%	1.63%	-508.72%

Optimumbank Holdings Corporate Events

OptimumBank Launches OptimumFunding HUD and FHA Lending Platform

On February 23, 2026, OptimumBank Holdings, Inc. announced the formation of OptimumFunding, LLC, a wholly owned subsidiary created to launch a HUD and FHA lending platform. The new unit extends the company’s long-standing focus on skilled nursing, senior housing, and multifamily real estate by adding bridge-to-HUD, FHA- and HUD-insured loan origination, and servicing under a single integrated, relationship-driven platform.

Backed by a dedicated capital investment from the holding company, OptimumFunding is structured to operate independently while aligned with OptimumBank’s governance and risk frameworks. Management expects the initiative to diversify revenue via government-insured lending, enhance the bank’s national presence in healthcare and multifamily finance, and give borrowers a seamless path from short-term bridge loans to long-term HUD/FHA solutions, with potential benefits for profitability and shareholder value.

The most recent analyst rating on (OPHC) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Optimumbank Holdings stock, see the OPHC Stock Forecast page.

OptimumBank Posts Record 2025 Results and Strategic Expansion

On February 2, 2026, OptimumBank Holdings reported record unaudited results for the fourth quarter and full year ended December 31, 2025, highlighted by strong earnings growth, robust loan expansion and improved profitability metrics. Fourth-quarter net income rose to $4.85 million, with return on average assets climbing to 1.77% and net interest margin edging up to 4.39% on higher net interest income and disciplined balance sheet management. For 2025, net earnings increased to $16.64 million from $13.12 million in 2024, driven by a $7.90 million rise in net interest income and a $2.15 million gain in noninterest income, while total assets grew 19% to $1.11 billion, deposits rose 21% to $931.75 million, and gross loans expanded by $155 million to $958.79 million. Credit quality remained solid, with modest net charge-offs and an allowance for credit losses at 1.07% of total loans, supporting a Tier 1 leverage ratio of 11.39% and an 18.71 million increase in stockholders’ equity, including a 16.9% jump in fully diluted tangible book value per share. Management characterized 2025 as the best year in the company’s history and underscored its strategic shift into adjacent financial verticals, including a newly formed subsidiary aimed at bridge-to-HUD and FHA/HUD-insured lending for multifamily and healthcare properties, a move that could broaden revenue streams and deepen its niche in healthcare and multifamily finance while reinforcing its growth trajectory in the South Florida community banking market.

The most recent analyst rating on (OPHC) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Optimumbank Holdings stock, see the OPHC Stock Forecast page.

OptimumBank restructures capital with preferred-for-common exchange

On January 27, 2026, OptimumBank Holdings, Inc. completed a securities exchange transaction in which investor Michael Blisko swapped 65 shares of the company’s Series B Convertible Preferred Stock for 531,178 newly issued shares of common stock. The deal, executed under an exemption from registration provided by the Securities Act of 1933, effectively increased the company’s common share count while retiring a portion of its preferred equity, modestly reshaping its capital structure and potentially affecting common and preferred shareholders’ relative positions.

The most recent analyst rating on (OPHC) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Optimumbank Holdings stock, see the OPHC Stock Forecast page.

OptimumBank Releases Preliminary 2025 Financial Results Presentation

On January 20, 2026, OptimumBank Holdings, Inc. announced that it had released a presentation detailing its unaudited results of operations and financial condition for, and at the end of, the year ended December 31, 2025. The disclosure provides investors and other stakeholders with an early view of the bank’s 2025 performance and balance-sheet position ahead of audited figures, offering preliminary insight into the company’s recent financial trajectory and operational health.

The most recent analyst rating on (OPHC) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Optimumbank Holdings stock, see the OPHC Stock Forecast page.