QUAINT OAK BANCORP, INC. COMPLETES $12.0 MILLION SUBORDINATED DEBT OFFERING
Quaint Oak Bancorp, Inc. (OTCQB: QNTO) announced the successful completion of a private offering totaling $12 million in subordinated notes, maturing on March 15, 2025. The notes carry a fixed interest rate of 8.50%, with interest payments scheduled for March 15 and September 15 starting this year. Proceeds will be used for general corporate purposes. The company can redeem these notes in full beginning on March 15, 2024. CEO Robert T. Strong expressed satisfaction with the transaction's positive response. This offering aims to strengthen the bank's capital base and support its operations.
- Successful completion of a $12 million subordinated debt offering.
- Fixed interest rate of 8.50% supports capital raising efforts.
- Proceeds intended for general corporate purposes, indicating strategic planning.
- Potential risks associated with interest rate fluctuations affecting net income.
- Dependence on market conditions that could impact loan demand and asset quality.
Southampton, Pa., March 02, 2023 (GLOBE NEWSWIRE) -- Quaint Oak Bancorp, Inc. (OTCQB: QNTO) (the “Company”), the holding company for Quaint Oak Bank (the “Bank”) announced the completion of a private offering of
The Notes bear interest at a fixed annual rate of
Robert T. Strong, President and Chief Executive Officer, stated “We are very pleased to announce the completion of our
PNC FIG Advisory, part of PNC Capital Markets LLC, served as sole placement agent for the offering. Silver, Freedman, Taff & Tiernan LLP served as legal counsel to the Company, and Pillar+Aught served as legal counsel to the placement agent.
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, Quaint Oak Real Estate, LLC, and Oakmont Commercial, LLC, a specialty commercial real estate financing company. All companies are multi-state operations with the exception of Quaint Oak Real Estate, LLC, which operates solely in Pennsylvania. Quaint Oak Bank also has a majority equity position in Oakmont Capital Holdings, LLC, a multi-state equipment finance company based in West Chester, Pennsylvania with a second significant facility located in Albany, Minnesota.
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; the scope and duration of the COVID-19 pandemic; the effects of the COVID-19 pandemic, including on the Company’s credit quality and operations as well as its impact on general economic conditions; legislative and regulatory changes including actions taken by governmental authorities in response to the COVID-19 pandemic; 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, in each case as may be affected by the COVID-19 pandemic, competition, changes in the quality or composition of the Company’s loan, investment and mortgage-backed securities portfolios; geographic concentration of the Company’s business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees.
FAQ
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