OptimumBank Holdings, Inc. (OPHC): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of OptimumBank Holdings, Inc., and honestly, what we see in their Q3 2025 numbers paints a clear picture: this is a high-octane community bank engine, defintely firing on all cylinders in South Florida. With a loan book hitting $813.72 million and a Core ROAE near 22.6%, their value proposition isn't just talk-it's relationship-driven lending backed by a solid $959.5 million in deposits. If you want to see exactly how they are balancing that aggressive growth with disciplined funding costs and a new tech platform rollout, you'll want to check out the full breakdown below.

OptimumBank Holdings, Inc. (OPHC) - Canvas Business Model: Key Partnerships

You're looking at the external relationships that fuel OptimumBank Holdings, Inc.'s growth engine as of late 2025. These aren't just vendor agreements; they are strategic alignments supporting a bank that just crossed the $1.08 billion total asset mark as of September 30, 2025.

InvestorBrandNetwork (IBN) for Corporate Communications and Investor Outreach

The partnership with InvestorBrandNetwork (IBN), initiated in September 2025, is designed to amplify your bank's visibility. IBN leverages its distribution network to enhance market presence and shareholder value. This network includes access to over 5,000 key syndication outlets, various newsletters, and wire services via InvestorWire. IBN reports a collective audience that generates 5+ Million Monthly Impressions and has 2+ Million Social Media Followers. This outreach supports a company that posted nine-month 2025 net earnings of $11.80 million.

Small Business Administration (SBA) for Preferred Lender Program Lending

OptimumBank Holdings, Inc. achieved the prestigious SBA Preferred Lender Program (PLP) designation in February 2025. This status grants the bank autonomous authority to make final credit decisions on behalf of the SBA, significantly accelerating the loan approval timeline from weeks to just days. The bank rapidly scaled its SBA lending program from zero, a testament to market demand. SBA 7(a) loans are offered up to $5 million. For context, in the 2025 fiscal year, preferred lenders collectively approved over 50,000 SBA 7(a) loans totaling more than $31 billion.

Technology Vendors for the Late 2025 Core Banking Platform Rollout

The bank is executing a technology modernization plan, targeting an October 2025 transition to a new open-architecture, API-capable core banking platform. This upgrade is intended to enable paperless processing and streamlined onboarding for customers. The goal is to enhance scalability while preserving the relationship-based service that delivered a Core ROAE of approximately 22.6% in Q3 2025. This move positions the bank to scale toward a projected $1.5 to $1.6 billion in assets by year-end 2026.

Local South Florida Non-Profits like Habitat for Humanity of Broward

In mid-2025, OptimumBank partnered with Habitat for Humanity of Broward to address housing affordability. This collaboration involves providing zero interest mortgage loans to six local families. The program includes post-closing education and financial skills training for these families. This community focus supports the bank's mission while it works to maintain a strong capital position with Tier 1 capital well above regulatory minimums.

Here's a quick look at the scale of these key external relationships:

The bank's treasury and liquidity management relies on its stable core funding base, which includes a growing percentage of noninterest-bearing demand deposits. This internal strength supports the external partnerships you see here.

OptimumBank Holdings, Inc. (OPHC) - Canvas Business Model: Key Activities

You're looking at the core engine driving OptimumBank Holdings, Inc. as of late 2025. The activities here are all about disciplined growth and technological upgrade.

Relationship-driven commercial and real estate lending is central to how OptimumBank Holdings, Inc. builds its balance sheet. This focus means they are prioritizing local, known relationships over purely transactional business, which is key for a community bank model. This strategy is showing up in the loan mix shift that continued through the third quarter of 2025.

Disciplined deposit pricing to maintain a low cost of funds is definitely a major operational focus. This discipline helped expand the net interest margin (NIM) to 4.37% as of Q3 2025. The cost of interest-bearing liabilities came in at 3.48% for the same period, which is a tailwind when long-term rates are falling. You see the result of this discipline in the deposit base, which hit $959.49 million by September 30, 2025.

For scaling the SBA lending program for small business financing, remember the momentum from last year; in 2024, SBA production saw a six-fold growth. While Q3 2025 results highlight growth in commercial real estate and consumer lending, the SBA solutions remain a core part of their business and financial offerings.

The activity of rolling out a next-generation core banking platform for efficiency is a significant near-term investment. The plan was to transition to this new open-architecture, API-capable core banking platform in October 2025. This tech investment is happening while noninterest expenses rose to $6.60 million quarter-over-quarter in Q3 2025, driven by higher staffing and data processing to support this scaling.

You need to track the actual asset base, which is the result of all these activities. Here's a quick look at the balance sheet as of September 30, 2025, compared to the prior quarter:

The management of the loan portfolio itself shows specific shifts you should note:

• Commercial real estate and consumer loans grew during Q3 2025.
• Land & construction loans declined by $17.76 million quarter-over-quarter.
• Commercial loans also saw a decline of $4.75 million quarter-over-quarter.
• The allowance for credit losses stood at $10.02 million, or 1.23% of total loans on September 30, 2025.

The operational efficiency is also reflected in the firm's profitability metrics for the nine-month period ended September 30, 2025:

• Net earnings reached $11.80 million for the nine-month period.
• Net interest income improved by $5.26 million for the nine-month period compared to the same period in 2024.
• The efficiency ratio remained around 51%, despite rising noninterest expenses to $6.60 million q/q.

Finance: draft 13-week cash view by Friday.

OptimumBank Holdings, Inc. (OPHC) - Canvas Business Model: Key Resources

You're looking at the bedrock of OptimumBank Holdings, Inc.'s operations as of late 2025. These are the assets that make their business model work, from the balance sheet strength to the technology they run on.

The foundation is definitely the capital position. It's what allows for the growth strategy. As of the third quarter of 2025, the bank maintained a very strong capital buffer.

That deposit base is a critical resource, showing strong customer trust. Total deposits hit $959.49 million by September 30, 2025. What's more, the mix is getting better for the bank; noninterest-bearing deposits grew substantially to 32.72% of the total.

The bank's core competency is deeply rooted in its geographic focus. OptimumBank Holdings, Inc. has built its reputation on unmatched expertise in a specific area.

• Focus area: Traditional in-person banking for businesses and consumers residing in South Florida.
• Specialized skill: Unmatched expertise in real estate and commercial lending.
• Recent Loan Mix (Sep 30, 2025): Commercial Real Estate loans stood at $524.865 million.
• Recent Loan Mix (Sep 30, 2025): Consumer loans grew to $65.731 million.

To support this growth and modernize operations, technology is a key resource being deployed right now. The management team is actively transitioning the infrastructure.

The planned rollout of a next-generation core banking platform is scheduled for late 2025. This is an open-architecture, API-capable system designed to make the customer experience paperless and intuitive, supporting scalability.

Finally, the people running the show are essential assets. The leadership is clearly focused on a dual strategy for expansion.

The experienced management team, featuring Chairman Moishe Gubin and CEO Tim Terry, is driving the current strategy. Their focus is on two main avenues for scaling the institution:

• Prioritizing organic growth, with a target of exceeding $1.2 billion in total assets by the end of 2025.
• Actively exploring accretive mergers and acquisitions (M&A) to scale operations.

Finance: draft 13-week cash view by Friday.

OptimumBank Holdings, Inc. (OPHC) - Canvas Business Model: Value Propositions

Relationship-driven banking as an alternative to large, impersonal institutions

OptimumBank Holdings, Inc. offers traditional in-person banking to businesses and consumers residing in South Florida. Customers have found the institution a trusted alternative to larger financial institutions by avoiding exorbitant fees experienced elsewhere. The bank was founded by local Broward County businessmen to reverse the trend of out-of-state mega-banks. The belief is that a combination of internet and traditional community bank service is the optimum way to bank. The bank focuses on building long-term relationships rather than transactional banking.

Expertise in commercial real estate and multi-family lending

OptimumBank Holdings, Inc. deploys capital primarily through commercial real estate and business loans. The bank highlights unmatched expertise in real estate and commercial lending. The financing options cover specific commercial lending products.

Competitive deposit products and treasury management services

The bank offers a range of personal and business banking solutions, including Treasury Management services. The deposit gathering focus supports the core business model of earning a strong Net Interest Margin. The total deposit base reflects customer confidence in the institution.

• Personal Banking Deposit Products: Simply Free Checking, Direct Interest Checking, 50 + Interest Checking, Ultimate Interest Checking, Optimum Money Market, Regular Savings, CDs and IRAs.
• Business Banking Deposit Products: Simply Free Business, Commercial Checking, Business Interest, Not For Profit Checking, IOLTA, Optimum Money Market.

High profitability demonstrated by a Core ROAE of approximately 22.6% (Q3 2025)

The operational performance for the third quarter ended September 30, 2025, demonstrates strong core profitability. This high return is supported by an expanding Net Interest Margin and disciplined funding costs. The bank successfully crossed the $1 billion total asset mark during this period.

Accessible, local decision-making in the South Florida market

OptimumBank focuses on traditional, in-person banking for businesses and consumers in South Florida. This local focus implies accessible, local decision-making to provide responsive service. The bank has expanded its physical footprint to enhance community banking services in the region.

OptimumBank Holdings, Inc. (OPHC) - Canvas Business Model: Customer Relationships

You're building a community bank that competes by being closer to the client than the big national players. OptimumBank Holdings, Inc. grounds its customer relationships in a model that explicitly rejects the impersonal service and high fees often found at larger financial institutions.

Dedicated, personal service through in-person and phone channels

OptimumBank delivers its relationship-based banking through a mix of channels, making sure you have access whether you prefer face-to-face interaction or digital convenience. The bank provides relationship-based banking through in-person, phone, and online services to both businesses and consumers in South Florida. This approach is a core differentiator, especially as the bank continues to grow its asset base, which reached $1.08 billion as of the third quarter of 2025.

High-touch, relationship-based model for commercial clients

For commercial clients, the relationship focus translates directly into specialized lending expertise and faster local decision-making. The bank specializes in real estate and commercial lending, which is reflected in the deployment of its capital. The gross loan portfolio stood at $813.72 million in Q3 2025, with growth during that quarter driven specifically by increases in commercial real estate loans (up $46.64 million) and consumer loans (up $5.79 million). This targeted lending is supported by a strong, locally-sourced funding base, which is key to maintaining that high-touch service level without relying on wholesale funding sources; total deposits reached $959.49 million in Q3 2025, with noninterest-bearing demand deposits making up 32.7% of that total.

The bank's operational framework is built on this localized approach, which allows for quicker execution than larger competitors. This focus on relationship banking is what Chairman Moishe Gubin credits for the bank's strong performance, noting that discipline in deposit pricing and targeted lending drives results.

Community engagement and local sponsorship to build trust

Building trust in the South Florida community is a stated commitment for OptimumBank Holdings, Inc. The bank is dedicated to supporting the local community through various initiatives, including investing in local businesses and economic development projects, and promoting financial literacy and education. For instance, the bank demonstrated this commitment through a specific partnership with Habitat for Humanity of Broward.

• Partnered to provide zero interest mortgage loans to six local families.
• Included comprehensive post-closing education and financial skills training for recipient families.
• This initiative aligns with the bank's goal of supporting economic empowerment through homeownership.

Also, the bank's focus on efficient scaling is evidenced by achieving SBA Preferred Lender status in just over two years, showing deep engagement with the small business segment of the community.

Proactive communication on financial performance to investors

For investors, OptimumBank Holdings, Inc. maintains a proactive communication stance to keep stakeholders informed about its growth and profitability, which saw net earnings of $4.32 million in Q3 2025. The bank has taken steps to enhance its outreach efforts.

• Engaged InvestorWire (IBN) in September 2025 to lead its corporate communications strategy.
• IBN's distribution network reaches over 5,000 key syndication outlets.
• Held the Annual Shareholder Meeting and Investor Day on April 29, 2025, both in-person and virtually.
• The bank's Q3 2025 diluted Earnings Per Share (EPS) of $0.18 surpassed consensus estimates by $0.03.

This effort is designed to ensure investors have access to the latest company updates, supporting shareholder value alongside the bank's strong Return on Equity metrics that reportedly exceed industry averages.

OptimumBank Holdings, Inc. (OPHC) - Canvas Business Model: Channels

You're looking at how OptimumBank Holdings, Inc. reaches its customers and communicates its value proposition as of late 2025. It's a blend of traditional brick-and-mortar presence in a specific geographic area and the expected digital interfaces.

The physical channel relies on a focused footprint in South Florida, which is key to their community bank identity. As of the latest location data, OptimumBank has 3 convenient locations to serve you. This includes the new North Miami Beach location, alongside branches in Fort Lauderdale and Deerfield Beach.

For digital reach, OptimumBank Holdings, Inc. offers online and mobile banking for both consumer and business accounts, which is critical given that 77% of banking interactions happen via digital channels in the broader market. While OptimumBank Holdings, Inc. specific digital adoption rates for 2025 aren't public, the market trend shows 64% of U.S. adults prefer mobile apps.

The commercial and real estate lending activities are supported by a direct sales approach, evidenced by their focus on these areas and the growth in related products. As of the third quarter of 2025, the Gross Loans balance stood at $813.72 million. Furthermore, the SBA lending initiative, which started in 2024, had a pipeline of $40 million.

Investor relations and corporate communications utilize standard public company channels. OptimumBank Holdings, Inc. announced its Second Quarter 2025 results on August 7, 2025, and its Third Quarter 2025 results on November 12, 2025. The company also held its Annual Shareholder Meeting and Investor Day on April 29, 2025, and rang the NYSE opening bell on October 24, 2025.

Here's a breakdown of the scale of the bank as of late 2025, which contextualizes the reach of these channels:

The bank's customer base, as reported in late 2024, was approximately 9,000 customers, serving businesses and consumers residing in South Florida.

The specific service delivery points through which OptimumBank Holdings, Inc. interacts with its customer base include:

• Physical branch locations in Fort Lauderdale, Deerfield Beach, and North Miami Beach.
• Online Banking access for personal and business clients.
• Mobile Banking application access for personal and business clients.
• Direct sales engagement for Commercial and Real Estate loan origination.
• Investor communications via press releases and virtual/in-person events.

The bank's ATM network access is also a channel component, utilizing the Publix Presto! Network and the STAR/CIRRUS Network for cash withdrawals and balance checks.

OptimumBank Holdings, Inc. (OPHC) - Canvas Business Model: Customer Segments

OptimumBank Holdings, Inc. serves a defined set of clients primarily concentrated in South Florida, focusing on relationship-based banking as it scaled its total assets to $1.08 billion as of September 30, 2025.

The lending activity, which totaled $813.72 million in gross loans at the end of Q3 2025, shows the composition of the core customer base.

The bank's loan portfolio composition, as detailed from the March 31, 2025 figures, provides insight into the commercial segments:

The strategic shift in the loan mix as of Q3 2025 indicated that commercial real estate and consumer loans grew, while land & construction loans declined. Management specifically noted targeted growth in consumer and multi-family lending during Q2 2025.

The customer segments are served through the following concentrations:

• Small to medium-sized businesses (SMBs) in South Florida: Supported by the overall commercial lending focus in the Fort Lauderdale, Florida headquarters region.
• Commercial real estate investors and developers: Represented by the significant holdings in Investor-Owned Office, Hotel, and Retail Center loans detailed above.
• Affluent consumers seeking personalized banking services: Supported by the growth in consumer lending and the bank's community-banking model centered on relationship banking.
• Local and international clients seeking an alternative to mega-banks: Indicated by the $153.20MM in loans outside of Florida, which accounted for 19% of the total loan portfolio as of March 31, 2025.
• Multi-family and consumer loan borrowers: Directly addressed by the stated growth in consumer lending.

The funding base supporting these customers shows a reliance on core, relationship-based deposits, with noninterest-bearing demand deposits comprising 32.7% of total deposits of $959.49 million as of Q3 2025.

OptimumBank Holdings, Inc. (OPHC) - Canvas Business Model: Cost Structure

You're looking at the cost side of the OptimumBank Holdings, Inc. equation as of late 2025. For a community bank scaling up, managing these costs against net interest income is key to maintaining that efficiency ratio, which management kept at 50.68% in Q3 2025.

The primary cost drivers fall into two buckets: the cost of money (interest expense) and the cost of running the bank (noninterest expense). Here's a quick look at the major components based on the third quarter of 2025 results.

Interest expense on deposits and other borrowings (funding costs)

This is what OptimumBank Holdings, Inc. pays to attract and retain its funding base. For the third quarter of 2025, total interest expense was $5.27 million. The bank noted a tailwind from a reduced cost of interest-bearing liabilities, which stood at 3.48% in the quarter. You'll want to note that the bank reported having no borrowings outstanding during Q3 2025, meaning all funding costs relate to deposits. The funding mix is improving, as noninterest-bearing demand deposits grew to $313.97 million, making up 32.7% of total deposits of $959.49 million.

Noninterest expense, which was $6.60 million in Q3 2025

Noninterest expenses climbed to $6.60 million in the third quarter of 2025, up from $6.18 million in the second quarter of 2025 and $5.29 million in the third quarter of 2024. This sequential increase reflects the bank's scaling efforts. Honestly, this rise in operating expense pressure is what management needs to watch to keep that efficiency ratio in check.

The increase in noninterest expenses was driven by investments supporting growth and scalability. You can see the specific areas management called out:

• Salaries, benefits, and staffing costs for an expanding employee base
• Technology and data processing costs for core platform investment
• General and administrative costs for branch operations and compliance

The report explicitly stated the $6.60 million noninterest expense was due to higher staffing and data processing as the bank scales. Furthermore, the increase was primarily attributed to higher staffing and infrastructure investments supporting long-term scalability and data processing. While specific dollar amounts for each sub-category aren't itemized here, the context points directly to these operational expansions as the source of the quarter-over-quarter increase.

OptimumBank Holdings, Inc. (OPHC) - Canvas Business Model: Revenue Streams

You're looking at the core ways OptimumBank Holdings, Inc. makes money as of late 2025. The bank's revenue streams are heavily weighted toward traditional lending activities, but noninterest income is showing growth, too.

Net interest income (NII), which is the difference between the interest earned on assets and the interest paid on liabilities, is the primary driver. For the third quarter of 2025, NII reached $11.05 million. This was an increase of $800,000 quarter-over-quarter. The Net Interest Margin (NIM) for the quarter expanded to 4.37%.

The earning assets supporting this include the loan portfolio. As of September 30, 2025, the gross loan portfolio stood at $813.72 million. Total interest income for Q3 2025 was $16.32 million. The average yield on loans improved to 7.04% in Q3 2025.

The second major component is noninterest income, which totaled $1.98 million for the third quarter of 2025. This stream is comprised of several fee-based and transactional sources. For the nine-month period ended September 30, 2025, noninterest income saw an increase of $1.49 million compared to the same period in 2024.

Here's a quick look at how the key income metrics stacked up for Q3 2025:

The growth in noninterest income for the quarter was specifically attributed to several activities:

• Service charges and fee-based revenue growth
• Gains on sales of government guaranteed loans
• Loan prepayment fees

These transactional items show OptimumBank Holdings, Inc. is realizing gains from moving assets off the balance sheet. For the nine months ended September 30, 2025, the company reported aggregate net earnings of $11.80 million. This compares to $9.17 million for the first nine months of 2024. The overall earnings improvement for the nine-month period was primarily driven by the $5.26 million improvement in net interest income.

Finance: draft 13-week cash view by Friday.