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QUAINT OAK BANCORP, INC. ANNOUNCES THIRD QUARTER EARNINGS

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Quaint Oak Bancorp (OTCQB: QNTO) reported net income of $243,000 ($0.09 per share) for Q3 2024, compared to a net loss of $255,000 in Q3 2023. For the nine months ended September 30, 2024, net income was $1.2 million ($0.47 per share), up 38.5% from $878,000 in the same period of 2023. The company sold its 51% interest in Oakmont Capital Holdings and discontinued Quaint Oak Real Estate operations. Total assets decreased 7% to $701.6 million, with loans receivable declining 11.4%. Non-performing loans represented 0.99% of total loans, with the allowance for credit losses at 1.24%.

Quaint Oak Bancorp (OTCQB: QNTO) ha riportato un utile netto di 243.000 dollari (0,09 dollari per azione) per il terzo trimestre del 2024, rispetto a una perdita netta di 255.000 dollari nel terzo trimestre del 2023. Per i nove mesi conclusisi il 30 settembre 2024, l'utile netto è stato di 1,2 milioni di dollari (0,47 dollari per azione), con un incremento del 38,5% rispetto ai 878.000 dollari nello stesso periodo del 2023. L'azienda ha venduto il suo 51% di partecipazione in Oakmont Capital Holdings e ha interrotto le operazioni di Quaint Oak Real Estate. Il totale degli attivi è diminuito del 7% a 701,6 milioni di dollari, con un calo dei prestiti di 11,4%. I prestiti non performanti rappresentavano lo 0,99% del totale dei prestiti, con il fondo per perdite su crediti allo 1,24%.

Quaint Oak Bancorp (OTCQB: QNTO) reportó un ingreso neto de 243.000 dólares (0,09 dólares por acción) para el tercer trimestre de 2024, en comparación con una pérdida neta de 255.000 dólares en el tercer trimestre de 2023. Para los nueve meses que terminaron el 30 de septiembre de 2024, el ingreso neto fue de 1,2 millones de dólares (0,47 dólares por acción), un aumento del 38,5% respecto a los 878.000 dólares en el mismo período de 2023. La empresa vendió su participación del 51% en Oakmont Capital Holdings y descontinuó las operaciones de Quaint Oak Real Estate. Los activos totales disminuyeron un 7%, alcanzando los 701,6 millones de dólares, mientras que los préstamos pendientes cayeron un 11,4%. Los préstamos no productivos representaron el 0,99% del total de préstamos, con una reserva para pérdidas crediticias del 1,24%.

Quaint Oak Bancorp (OTCQB: QNTO)는 2024년 3분기에 243,000달러의 순이익 (주당 0.09달러)를 보고했으며, 이는 2023년 3분기에 255,000달러의 순손실에 비해 증가한 수치입니다. 2024년 9월 30일로 종료된 9개월 동안의 순이익은 120만 달러 (주당 0.47달러)이며, 이는 2023년 같은 기간의 878,000달러에 비해 38.5% 증가한 것입니다. 회사는 Oakmont Capital Holdings의 51% 지분을 매각하고 Quaint Oak Real Estate 운영을 중단했습니다. 총 자산은 7% 감소하여 7억 1,600만 달러에 이르고, 대출 채권은 11.4% 감소했습니다. 부실 대출은 총 대출의 0.99%를 차지하며, 신용 손실을 대비한 적립금은 1.24%입니다.

Quaint Oak Bancorp (OTCQB: QNTO) a annoncé un résultat net de 243.000 dollars (0,09 dollar par action) pour le troisième trimestre 2024, comparé à une perte nette de 255.000 dollars au troisième trimestre 2023. Pour les neuf mois se terminant le 30 septembre 2024, le résultat net s'élevait à 1,2 million de dollars (0,47 dollar par action), en hausse de 38,5 % par rapport à 878.000 dollars pour la même période de 2023. L'entreprise a vendu sa participation de 51 % dans Oakmont Capital Holdings et a cessé ses opérations de Quaint Oak Real Estate. L'actif total a diminué de 7 % pour atteindre 701,6 millions de dollars, avec une baisse des prêts de 11,4 %. Les prêts non performants représentaient 0,99 % du total des prêts, avec une provision pour pertes de crédit de 1,24 %.

Quaint Oak Bancorp (OTCQB: QNTO) meldete einen Nettoertrag von 243.000 US-Dollar (0,09 US-Dollar pro Aktie) für das 3. Quartal 2024, im Vergleich zu einem Nettoverlust von 255.000 US-Dollar im 3. Quartal 2023. Für die neun Monate bis zum 30. September 2024 betrug der Nettoertrag 1,2 Millionen US-Dollar (0,47 US-Dollar pro Aktie), was einem Anstieg von 38,5% gegenüber 878.000 US-Dollar im gleichen Zeitraum 2023 entspricht. Das Unternehmen verkaufte sein 51%iges Interesse an Oakmont Capital Holdings und stellte die Aktivitäten von Quaint Oak Real Estate ein. Die Gesamta Vermögenswerte verringerten sich um 7% auf 701,6 Millionen US-Dollar, während die Forderungen aus Krediten um 11,4% sanken. Ausfallende Kredite stellten 0,99% der Gesamtkredite dar, wobei die Rückstellungen für Kreditausfälle 1,24% betrugen.

Positive
  • Net income increased to $243,000 in Q3 2024 from a loss of $255,000 in Q3 2023
  • Nine-month net income grew 38.5% to $1.2 million
  • Non-interest income increased by $2.4 million (78.4%) for the nine-month period
  • Total stockholders' equity increased by $2.9 million (6.0%)
  • Non-performing loans remain below 1% of total loans receivable
Negative
  • Total assets decreased 7% to $701.6 million
  • Loans receivable declined 11.4%
  • Total deposits decreased $48.3 million (7.6%)
  • Net interest margin decreased from 2.62% to 2.61% for the nine-month period
  • Interest expense increased by $849,000 (4.5%) for the nine-month period

Southampton, PA , Oct. 31, 2024 (GLOBE NEWSWIRE) -- Quaint Oak Bancorp, Inc. (the “Company”) (OTCQB: QNTO), the holding company for Quaint Oak Bank (the “Bank”), announced today net income for the quarter ended September 30, 2024 of $243,000, or $0.09 per basic and diluted share, compared to net loss of $255,000, or $(0.11) per basic and diluted share, net, for the same period in 2023. Net income for the nine months ended September 30, 2024 of $1.2 million, or $0.47 per basic and diluted share, net, compared to net income of $878,000, or $0.40 per basic and $0.39 per diluted share, for the same period in 2023.

Robert T. Strong, President and Chief Executive Officer stated, “Our earnings for the quarter ended September 30, 2024, have improved over the same period of one year ago. Although we have not yet achieved our historic levels, this report signals a significant improvement. Similarly, our net income for the nine months ended September 30, 2024, registers a 38.5% improvement over the same period of one year ago.”

Mr. Strong added, “We are pleased to have experienced significant improvement in non-interest income during the quarter ended September 30, 2024, and the nine-month period ended September 30, 2024, when compared to the same periods of one year ago, excluding discontinued operations.”

Mr. Strong continued, “Although, there appears to be some market weakness in the small business lending category and although we have increased our allowance for credit losses as a percent of total loans receivable to 1.24% at September 30, 2024; our non-performing loans as a percent of total loans receivable, net along with our non-performing assets as a percent of total assets both remain below 1.00%.”

Mr. Strong commented, “We are pleased to report that our total risk-based capital ratio at this quarter end is 13.86%. Additionally, total stockholder equity increased $2.9 million at September 30, 2024, when compared to that of year end December 31, 2023. As previously reported, our Board of Directors approved the payment of a dividend, in the amount of $0.13 per share to shareholders of record on October 28, 2024, payable on November 12, 2024.”

Mr. Strong concluded, “As always, our current and continued business strategy focuses on maintaining healthy capital ratios coupled with long-term profitability and payment of dividends, each of which reflect our strong commitment to shareholder value.”

On March 29, 2024, Quaint Oak Bank sold its 51% interest in Oakmont Capital Holdings, LLC (“OCH”). The decision was based on a number of strategic priorities and other factors. As a result of this action, the Company classified the operations of OCH as discontinued operations under ASC 205-20. The Consolidated Balance Sheets and Consolidated Statements of Income present discontinued operations for the current period and retrospectively for prior periods.

Also on March 29, 2024, the Company discontinued the operations of Quaint Oak Real Estate, LLC (“Quaint Oak Real Estate”), a 100% wholly owned subsidiary of the Bank. Quaint Oak Real Estate was engaged in the real estate brokerage business. The Bank agreed to cease operations of Quaint Oak Real Estate and discontinue utilizing the services of the real estate agents it had been doing business with and had developed relationships with.

Comparison of Quarter-over-Quarter Operating Results

Net income amounted to $243,000 for the three months ended September 30, 2024, an increase of $498,000, or 195.3%, compared to net loss of $255,000 for the three months ended September 30, 2023. The increase in net income on a comparative quarterly basis was primarily the result of a decrease in interest expense of $427,000, a decrease in net loss from discontinued operations of $300,000, a decrease in non-interest expense of $221,000, an increase in non-interest income of $188,000, and a decrease in the provision for credit losses of $134,000, partially offset by a decrease in interest income of $639,000, and an increase in the net provision for income taxes of $133,000.

The $639,000, or 5.8%, decrease in interest income was primarily due to a decrease in the average balance of loans receivable, net, which decreased $114.7 million from $722.4 million for the three months ended September 30, 2023 to $607.6 million for the three months ended September 30, 2024 and had the effect of decreasing interest income $1.7 million. This decrease was partially offset by a 50 basis point increase in the average yield on loans receivable, net from 6.01% for the three months ended September 30, 2023 to 6.51% for the three months ended September 30, 2024, and had the effect of increasing interest income $767,000, and a $39.3 million increase in the average balance of due from banks – interest earning, which increased from $6.6 million for the three months ended September 30, 2023 to $45.9 million for the three months ended September 30, 2024, and had the effect of increasing interest income $413,000.

The $427,000, or 6.4%, decrease in interest expense for the three months ended September 30, 2024 over the comparable period in 2023 was driven by a $751,000, or 95.9%, decrease in the interest on Federal Home Loan Bank short-term borrowings due to a $52.4 million, or 97.1%, decrease in the average balance of Federal Home Loan Bank short-term borrowings which decreased from $54.0 million for the three months ended September 30, 2023 to $1.6 million for the three months ended September 30, 2024. Also contributing to the decreases in interest expense for the three months ended September 30, 2024 was $310,000, or 83.3%, decrease in the interest on Federal Home Loan Bank long-term borrowings due to a $33.7 million, or 81.0%, decrease in the average balance of Federal Home Loan Bank long-term borrowings which decreased from $41.7 million for the three months ended September 30, 2023 to $8.0 million for the three months ended September 30, 2024. Partially offsetting these decreases in interest expense for the three months ended September 30, 2024 was a $573,000, or 11.3%, increase in interest expense on deposits, primarily attributable to a 92 basis point increase in average rate of certificates of deposit, which increased from 3.35% for the three months ended September 30, 2023 to 4.27% for the three months ended September 30, 2024, and had the effect of increasing interest expense by $513,000. The average interest rate spread increased from 1.73% for the three months ended September 30, 2023 to 1.87% for the three months ended September 30, 2024 while the net interest margin increased from 2.42% for the three months ended September 30, 2023 to 2.58% for the three months ended September 30, 2024.

The $134,000, or 52.1%, decrease in the provision for credit losses for the three months ended September 30, 2024 over the three months ended September 30, 2023 was due to a decrease in loans receivable, net, partially offset by an increase in individually evaluated loans which increased the provision for credit losses by $259,000.

The $188,000, or 18.4%, increase in non-interest income for the three months ended September 30, 2024 over the comparable period in 2023 was primarily attributable to a $122,000, or 32.0%, increase in net gain on sale of loans, a $79,000, or 50.0%, increase in mortgage banking, equipment lending, and title abstract fees, a $29,000, or 30.5%, increase in gain on sale of SBA loans, and an $8,000, or 4.2%, increase in insurance commissions. These increases were partially offset by a $38,000, or 24.7%, decrease in other fees and service charges, and a $16,000, or 100.0%, decrease in real estate sales commissions, net.

The $221,000, or 4.3%, decrease in non-interest expense for the three months ended September 30, 2024 over the comparable period in 2023 was primarily due to a $229,000, or 89.8%, decrease in professional fees, a $116,000, or 26.0%, decrease in occupancy and equipment expense, a $56,000, or 51.9%, decrease in directors’ fees and expenses, and a $39,000, or 19.8%, decrease in FDIC deposit insurance assessment. These decreases were partially offset by a $182,000, or 5.5%, increase in salaries and employee benefits expense, a $27,000, or 5.7%, increase in other expense, and a $10,000, or 3.2%, increase in data processing expense. The decrease in professional fees was due to a $98,000 recovery of legal fees due to a loan payoff.

The provision for income tax from continuing operations increased $133,000, or 380.0%, from $35,000 for the three months ended September 30, 2023 to $168,000 for the three months ended September 30, 2024 due primarily to an increase in taxable income from continuing operations.

Comparison of Nine-Month Operating Results

Net income amounted to $1.2 million for the nine months ended September 30, 2024, an increase of $338,000, or 38.5%, compared to net income of $878,000 for the nine months ended September 30, 2023. The increase in net income on a comparative quarterly basis was primarily the result of an increase in non-interest income of $2.4 million, a decrease in non-interest expense of $207,000, and a decrease in net loss from discontinued operations of $28,000, partially offset by an increase in interest expense of $849,000, an increase in the provision for credit losses of $758,000, a decrease in interest income of $442,000, and an increase in the net provision for income taxes from continuing operations of $254,000.

The $442,000, or 1.3%, decrease in interest income was primarily due to a decrease in the average balance of loans receivable, net, which decreased $123.7 million from $748.6 million for the nine months ended September 30, 2023 to $624.9 million for the nine months ended September 30, 2024 and had the effect of decreasing interest income $5.5 million. These decreases were partially offset by a 59 basis point increase in the yield on average loans receivable, net, including loans held for sale, which increased from 5.91% for the nine months ended September 30, 2023 to 6.50% for the nine months ended September 30, 2024, and had the effect of increasing interest income $2.7 million, and a $66.7 million increase in the average balance of due from banks – interest earning, which increased from $6.1 million for the nine months ended September 30, 2023 to $72.7 million for the nine months ended September 30, 2024, and had the effect of increasing interest income $2.1 million, and a 93 basis point increase in the average yield on due from banks – interest earning which increased from 4.20% for the nine months ended September 30, 2023 to 5.13% for the nine months ended September 30, 2024, and had the effect of increasing interest income $504,000.

The $849,000, or 4.5%, increase in interest expense for the nine months ended September 30, 2024 over the comparable period in 2023 was driven by a $4.5 million, or 34.1%, increase in interest on average deposits. Also contributing to the increase in interest expense was a 51 basis point increase in the rate on average money market accounts which increased from 4.04% for the nine months ended September 30, 2023 to 4.55% for the nine months ended September 30, 2024 and had the effect of increasing interest expense by $828,000. Partially offsetting the increase in interest expense for the nine months ended September 30, 2024 was a $3.6 million, or 99.1%, decrease in the interest on Federal Home Loan Bank short-term borrowings due to an $89.3 million, or 99.0%, decrease in the average balance of Federal Home Loan Bank short-term borrowings which decreased from $90.1 million for the nine months ended September 30, 2023 to $861,000 for the nine months ended September 30, 2024. The average interest rate spread decreased from 2.03% for the nine months ended September 30, 2023 to 1.83% for the nine months ended September 30, 2024 while the net interest margin decreased from 2.62% for the nine months ended September 30, 2023 to 2.61% for the nine months ended September 30, 2024.

The $758,000, or 164.8%, increase in the provision for credit losses for the nine months ended September 30, 2024 over the nine months ended September 30, 2023 was due to an increase in the amount of non-performing loans. There were nineteen individually evaluated loans which increased the provision for credit losses by $913,000. This increase was partially offset by a decrease in the average balance of loans receivable, net.

The $2.4 million, or 78.4%, increase in non-interest income for the nine months ended September 30, 2024 over the comparable period in 2023 was primarily attributable to a $1.4 million gain on sale of Oakmont Capital Holdings, LLC, a $789,000, or 65.3%, increase in net gain on sale of loans, a $286,000, or 96.6%, increase in other fees and services charges, a $206,000, or 48.9%, increase in mortgage banking, equipment lending, and title abstract fees, and a $40,000, or 8.2%, increase in insurance commissions. These increases were partially offset by a $142,000 or 96.6%, decrease in net loan servicing income, a $95,000, or 27.5%, decrease in gain on sale of SBA loans, and a $68,000, or 77.3%, decrease in real estate sales commissions, net.

The $207,000, or 1.3%, decrease in non-interest expense for the nine months ended September 30, 2024 over the comparable period in 2023 was primarily due to a $274,000, or 45.9%, decrease in professional fees, a $175,000, or 26.2%, decrease in FDIC deposit insurance assessment, a $162,000, or 51.4%, decrease in directors’ fees and expenses, and a $142,000, or 12.5%, decrease in occupancy and equipment expense. The decrease in directors’ fees and expenses was primarily due to a reduction in director rates for the nine months ended September 30, 2024. The decrease in non-interest expense was partially offset by a $394,000, or 3.8%, increase in salaries and employee benefits expense, and a $157,000, or 21.3%, increase in data processing expense.

The provision for income tax on continuing operations increased $254,000, or 39.2%, from $648,000 for the nine months ended September 30, 2023 to $902,000 for the nine months ended September 30, 2024 due primarily to an increase in taxable income from continuing operations.

Comparison of Financial Condition

The Company’s total assets at September 30, 2024 were $701.6 million, a decrease of $52.5 million, or 7.0%, from $754.1 million at December 31, 2023. This decrease in total assets was primarily due to a $70.4 million, or 11.4%, decrease in loans receivable, net of allowance for credit losses. The largest decreases within the loan portfolio occurred in commercial real estate loans which decreased $31.0 million, or 9.4%, commercial business loans which decreased $23.4 million, or 16.5%, construction loans which decreased $11.7 million, or 32.9%, and one-to-four family non-owner occupied loans which decreased $6.2 million, or 15.3%. Partially offsetting these decreases were one-to-four family owner occupied loans which increased $1.5 million, or 6.4%, and multi-family residential which increased $783,000, or 1.7%. Partially offsetting the decrease in total assets was a $34.4 million, or 94.4%, increase in loans held for sale, a $3.3 million, or 5.8%, increase in cash and cash equivalents, an $899,000, or 25.7%, increase in accrued interest receivable, a $380,000, or 25.8%, increase in investment in Federal Home Loan Bank stock, at cost, and a $275,000, or 10.4%, increase in premises and equipment, net.

Loans held for sale increased $34.4 million, or 94.4%, from $36.4 million at December 31, 2023 to $70.9 million at September 30, 2024 as the Bank originated $51.6 million in equipment loans held for sale and sold $71.6 million of equipment loans during the nine months ended September 30, 2024. Partially offsetting this increase was $8.5 million of loan amortization and prepayments. On March 29, 2024, the Bank transferred $4.4 million of equipment loans held for sale into loans receivable as part of the discontinued operations of OCH. Additionally, the Bank’s mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $99.6 million of one-to-four family residential loans during the nine months ended September 30, 2024 and sold $93.1 million of loans in the secondary market during this same period. In the third quarter of 2024, management identified $51.0 million of commercial real estate loans and $9.9 million of SBA loans within the loan portfolio and transferred to loans held for sale at amortized cost.

Total deposits decreased $48.3 million, or 7.6%, to $583.4 million at September 30, 2024 from $631.7 million at December 31, 2023. This decrease in deposits was primarily attributable to a decrease of $36.5 million, or 35.0%, in interest bearing checking accounts, a decrease of $23.8 million, or 25.8%, in non-interest bearing checking accounts, a decrease of $5.5 million, or 2.5%, in money market accounts, and a $236,000, or 28.1%, decrease in savings accounts. These decreases in deposits were partially offset by an increase of $17.6 million, or 8.2%, in certificates of deposit. The total decrease in interest bearing checking accounts was due to reduced correspondent banking activity.

Total Federal Home Loan Bank (FHLB) borrowings increased $9.8 million, or 33.9%, to $38.9 million at September 30, 2024 from $29.0 million at December 31, 2023. During the nine months ended September 30, 2024, the Company borrowed $65.0 million of FHLB short-term borrowings, paid down $25.2 million of FHLB long-term borrowings, and paid down $30.0 million of FHLB short-term borrowings.

Total stockholders’ equity from continuing operations increased $2.9 million, or 6.0%, to $51.4 million at September 30, 2024 from $48.5 million at December 31, 2023. Contributing to the increase was net income for the nine months ended September 30, 2024 of $1.2 million, shares issued of $2.4 million, amortization of stock awards and options under our stock compensation plans of $182,000, the reissuance of treasury stock under the Bank’s 401(k) Plan of $91,000, and other comprehensive income, net of $10,000. The increase in stockholders’ equity was partially offset by dividends paid of $996,000, and $48,000 purchase of treasury stock. In addition, there was a $3.1 million, or 100.0%, decrease in noncontrolling interest from discontinued operations. The $2.5 million of shares issued were due to two private placement offerings to two investors.

Non-performing loans at September 30, 2024 totaled $5.4 million, or 0.99%, of total loans receivable, net of allowance for credit losses, consisting of $5.0 million of loans on non-accrual status and $400,000 of loans 90-days or more delinquent. Non-accrual loans consist of one commercial real estate loan, one pool of equipment loans, and nine commercial business loans. Loans 90-days or more past due include one commercial real estate loan, which is still accruing. All non-performing loans are either well-collateralized or adequately reserved for. During the nine months ended September 30, 2024, 13 commercial business loans totaling $907,000, and one construction loan of $187,000, that were previously on non-accrual were charged-off through the allowance for credit losses. The allowance for credit losses as a percent of total loans receivable was 1.24% at September 30, 2024 and 1.11% at December 31, 2023. Non-performing loans at December 31, 2023 consisted of one SBA loan on non-accrual status in the amount of $51,000 and one one-to-four family owner occupied loan that was 90 days or more past due but still accruing in the amount of $401,000. During the year ended December 31, 2023, two commercial business loans, one SBA loan, one multi-family residential loan, and two equipment loans totaling $272,000 that were previously on non-accrual were charged-off through the allowance for credit losses. In addition, there was one commercial business loan in the amount of $652,000 that was partially charged off by $603,000.

Quaint Oak Bancorp, Inc., a Financial Services Company, is the parent company for the Quaint Oak Family of Companies. Quaint Oak Bank, a Pennsylvania-chartered stock savings bank and wholly-owned subsidiary of the Company, is headquartered in Southampton, Pennsylvania and conducts business through three regional offices located in the Delaware Valley, Lehigh Valley and Philadelphia markets. Quaint Oak Bank’s subsidiary companies include Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, Quaint Oak Mortgage, LLC, and Oakmont Commercial, LLC, a specialty commercial real estate financing company. All companies are multi-state operations.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Factors which could result in material variations include, but are not limited to, changes in interest rates which could affect net interest margins and net interest income, competitive factors which could affect net interest income and noninterest income, changes in demand for loans, deposits and other financial services in the Company's market area; changes in asset quality, general economic conditions as well as other factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, competition, changes in the quality or composition of the Companys loan, investment and mortgage-backed securities portfolios; geographic concentration of the Companys business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Companys financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Companys operations, markets, products, services and fees.


QUAINT OAK BANCORP, INC.
Consolidated Balance Sheets
(In Thousands)


  At September 30,  At December 31,  
  2024  2023 
  (Unaudited)  (Unaudited) 
Assets        
Cash and cash equivalents $61,342  $58,006 
Investment in interest-earning time deposits  912   1,912 
Investment securities available for sale at fair value  1,841   2,341 
Loans held for sale  70,855   36,448 
Loans receivable, net of allowance for credit losses (2024: $6,897; 2023: $6,758)  547,303   617,701 
Accrued interest receivable  4,401   3,502 
Investment in Federal Home Loan Bank stock, at cost  1,854   1,474 
Bank-owned life insurance  4,416   4,329 
Premises and equipment, net  2,931   2,656 
Goodwill  515   515 
Other intangible, net of accumulated amortization  89   125 
Prepaid expenses and other assets  5,146   5,134 
Assets from discontinued operations  -   19,975 
Total Assets $701,605  $754,118 
         
Liabilities and Stockholders Equity         
Liabilities        
Deposits        
Non-interest bearing $68,459  $92,215 
Interest-bearing  514,960   539,484 
Total deposits  583,419   631,699 
Federal Home Loan Bank short-term borrowings  35,000   - 
Federal Home Loan Bank long-term borrowings  3,855   29,022 
Subordinated debt  22,000   21,957 
Accrued interest payable  508   541 
Advances from borrowers for taxes and insurance  2,874   3,730 
Accrued expenses and other liabilities  2,554   2,438 
Liabilities from discontinued operations  -   13,166 
Total Liabilities  650,210   702,553 
Total Quaint Oak Bancorp, Inc. Stockholders Equity  51,395   48,491 
Noncontrolling Interest from Discontinued Operations  -   3,074 
Total Stockholders Equity  51,395   51,565 
Total Liabilities and Stockholders Equity $701,605  $754,118 

  

  At December 31,  
  2023 
  (Unaudited) 
Assets from Discontinued Operations    
Cash and cash equivalents $4,121 
Loans held for sale  9,580 
Premises and equipment, net  277 
Goodwill  2,058 
Prepaid expenses and other assets  3,939 
Total Assets from Discontinued Operations $19,975 
     
Liabilities and Stockholders Equity from Discontinued Operations    
Liabilities from Discontinued Operations    
Other short-term borrowings $5,549 
Accrued interest payable  565 
Accrued expenses and other liabilities  7,052 
Total Liabilities from Discontinued Operations  13,166 
Total Stockholders Equity from Discontinued Operations  6,809 
Total Liabilities and Stockholders Equity from Discontinued Operations $19,975 


QUAINT OAK BANCORP, INC.
Consolidated Statements of Income
(In Thousands, except share data)

   For the Three Months Ended   For the Nine Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
      (Unaudited)         (Unaudited) 
Interest and Dividend Income                 
Interest on loans, including fees $9,895  $10,851  $30,445  $33,183 
Interest and dividends on time deposits, investment securities, interest-bearing deposits with others, and Federal Home Loan Bank stock  577   260   3,046   750 
Total Interest and Dividend Income  10,472   11,111   33,491   33,933 
Interest Expense                
Interest on deposits  5,641   5,068   17,795   13,273 
Interest on Federal Home Loan Bank short-term borrowings  32   783   32   3,583 
Interest on Federal Home Loan Bank long-term borrowings  62   372   471   1,003 
Interest on Federal Reserve Bank long-term borrowings  -   11   -   30 
Interest on subordinated debt  489   417   1,461   1,021 
Total Interest Expense  6,224   6,651   19,759   18,910 
Net Interest Income  4,248   4,460   13,732   15,023 
Provision for Credit Losses Loans  143   270   1,227   279 
(Recovery of) Provision for Credit Losses Unfunded Commitments  (20)  (13)  (9)  181 
Total Provision for Credit Losses  123   257   1,218   460 
Net Interest Income after Provision for Credit Losses  4,125   4,203   12,514   14,563 
Non-Interest Income                 
Mortgage banking, equipment lending and title abstract fees  237   158   627   421 
Real estate sales commissions, net  -   16   20   88 
Insurance commissions  198   190   526   486 
Other fees and services charges  116   154   582   296 
Net loan servicing income  2   2   5   147 
Income from bank-owned life insurance  30   26   87   75 
Net gain on sale of loans  503   381   1,998   1,209 
Gain on sale of Oakmont Capital, LLC  -   -   1,378   - 
Gain on the sale of SBA loans  124   95   251   346 
Total Non-Interest Income  1,210   1,022   5,474   3,068 
                 
Non-Interest Expense                
Salaries and employee benefits  3,483   3,301   10,818   10,424 
Directors' fees and expenses  52   108   153   315 
Occupancy and equipment  330   446   996   1,138 
Data processing  321   311   894   737 
Professional fees  26   255   323   597 
FDIC deposit insurance assessment  158   197   494   669 
Advertising  42   42   202   208 
Amortization of other intangible  12   12   36   36 
Other  500   473   1,368   1,367 
Total Non-Interest Expense  4,924   5,145   15,284   15,491 
Income from Continuing Operations Before Income Taxes $411  $80  $2,704  $2,140 
Income Taxes  168   35   902   648 
Net Income from Continuing Operations $243  $45  $1,802  $1,492 
Loss from Discontinued Operations  -   (417)  (814)  (852)
Income Tax Benefit  -   (117)  (228)  (238)
Net Loss from Discontinued Operations $-  $(300) $(586) $(614)
Net Income (Loss) $243  $(255) $1,216  $878 


  

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
  2024  2023  2024  2023 
  (Unaudited)  (Unaudited) 
Per Common Share Data:                
Earnings per share from continuing operations – basic $0.09  $0.02  $0.70  $0.68 
Earnings per share from discontinued operations – basic $-  $(0.13) $(0.23) $(0.28)
Earnings per share, net – basic $0.09  $(0.11) $0.47  $0.40 
Average shares outstanding – basic  2,631,048   2,244,163   2,560,993   2,221,441 
Earnings per share from continuing operations – diluted $0.09  $0.02  $0.70  $0.66 
Earnings per share from discontinued operations – diluted $-  $(0.13) $(0.23) $(0.27)
Earnings per share, net – diluted $0.09  $(0.11) $0.47  $0.39 
Average shares outstanding - diluted  2,631,048   2,244,163   2,560,993    2,255,315 
Book value per share, end of period $19.52  $20.12  $19.52  $20.12 
Shares outstanding, end of period  2,633,374   2,273,051   2,633,374   2,273,051 


  Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
  2024  2023  2024  2023 
  (Unaudited)  (Unaudited) 
Selected Operating Ratios:                
Average yield on interest-earning assets  6.37%  6.02%  6.36%  5.91%
Average rate on interest-bearing liabilities  4.50%  4.29%  4.53%  3.88%
Average interest rate spread  1.87%  1.73%  1.83%  2.03%
Net interest margin  2.58%  2.42%  2.61%  2.62%
Average interest-earning assets to average interest-bearing liabilities  118.69%  118.94%  120.80%  118.01%
Efficiency ratio  90.22%  101.55%  79.59%  85.63%
                 
Asset Quality Ratios (1)                
Non-performing loans as a percent of total loans receivable, net  0.99%  0.02%  0.99%  0.02%
Non-performing assets as a percent of total assets  0.77%  0.02%  0.77%  0.02%
Allowance for credit losses as a percent of non-performing loans  126.88% n/m   126.88% n/m 
Allowance for credit losses as a percent of total loans receivable  1.24%  1.11%  1.24%  1.11%
Texas Ratio (2)  8.42%  0.22%  8.42%  0.22%

(1)   Asset quality ratios are end of period ratios.
(2)   Total non-performing assets divided by tangible common equity plus the allowance for loan losses.
n/m – not meaningful

 

  

FAQ

What was QNTO's net income for Q3 2024?

Quaint Oak Bancorp reported net income of $243,000, or $0.09 per share, for Q3 2024.

How much did QNTO's total assets decrease in September 2024?

QNTO's total assets decreased by $52.5 million (7.0%) to $701.6 million as of September 30, 2024.

What was QNTO's allowance for credit losses ratio in Q3 2024?

QNTO's allowance for credit losses as a percent of total loans receivable was 1.24% as of September 30, 2024.

What strategic changes did QNTO make in March 2024?

In March 2024, QNTO sold its 51% interest in Oakmont Capital Holdings and discontinued operations of Quaint Oak Real Estate.

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