OPHC

OptimumBank is a small Florida state-chartered commercial bank firing on the fundamentals that matter for a lender. FY2025 net income rose 26.9% to $16.6M, diluted EPS grew 12.7% to $0.71, and total assets expanded 19.2% to $1.11B while equity grew 18.1% to $122M. The result is a 13.7% return on equity and $17.8M of operating cash flow that exceeds reported earnings — a clean, cash-backed profit. The earnings trajectory is the standout: net income has gone $6.3M → $4.0M → $6.3M → $13.1M → $16.6M over FY2021–2025, a genuine inflection rather than a one-year pop, and retained earnings only just turned meaningfully positive ($13.8M, up 585%), signaling the bank has finally worked through a legacy accumulated deficit.

The valuation is where the case sharpens. At $5.85, OPHC trades at 8.2x EPS, but the more striking number is price-to-book: 12.2M shares times $5.85 is ~$71M of market cap against $122M of stockholders' equity, i.e. ~0.58x book, or roughly $10/share of book value versus a $5.85 price. A bank compounding equity at high-teens rates and earning a 13.7% ROE does not normally sit at well under book; that gap is the upside. Credit quality supports the book's integrity — per the 10-K, nonperforming loans were just $2.9M, or 0.3% of gross loans, the allowance is 1.07% of loans, and net charge-offs have fallen (charge-offs $727K in 2025 vs $1,777K in 2024) while credit loss expense declined to $1.93M.