Quaint Oak Bancorp, Inc. Announces First Quarter Earnings

Core Points - Quaint Oak Bancorp reported a net loss of $83,000 for Q1 2025, a significant decline from a net income of $873,000 in Q1 2024, reflecting a decrease of 109.5% [1][3] - The decrease in net income was primarily driven by a $2.2 million (18.1%) drop in interest and dividend income, alongside a $419,000 (8.2%) increase in non-interest expenses [3][4][9] - The company's Total Risk-Based Capital Ratio improved to 13.92% as of March 31, 2025, compared to 13.61% a year earlier, indicating a stronger capital position [2] Financial Performance - Interest and dividend income decreased by $2.2 million, primarily due to a reduction in the average balance of loans receivable, which fell by $69.8 million from $658.4 million in Q1 2024 to $588.7 million in Q1 2025 [4] - Interest expense decreased by $930,000 (13.9%), largely due to a $1.3 million (21.0%) reduction in interest on deposits [5][6] - Non-interest income increased by $178,000 (11.3%), driven by a significant rise in gains from the sale of SBA loans [8] Asset Quality and Loan Portfolio - Non-performing loans totaled $5.9 million, or 1.13% of total loans receivable, showing an increase from $5.7 million (1.07%) at the end of Q4 2024 [19] - The Texas Ratio improved to 9.22% from 11.96% a year earlier, indicating better asset quality [2][29] - The provision for credit losses decreased by $695,000 (61.2%) compared to Q1 2024, reflecting a decrease in loans receivable [7] Balance Sheet Highlights - Total assets decreased by $34.8 million (5.1%) to $650.4 million as of March 31, 2025, primarily due to declines in cash and cash equivalents and loans held for sale [11] - Total deposits fell by $45.7 million (8.3%) to $507.6 million, mainly due to a $47.8 million decrease in interest-bearing checking accounts [13][14] - Federal Home Loan Bank borrowings increased by $17.1 million (35.8%) to $65.0 million, reflecting the company's funding strategy [15] Capital Structure - Senior debt increased to $9.5 million from none at the end of Q4 2024, following the issuance of Fixed Rate Unsecured Senior Notes [16] - Subordinated debt decreased by $14.0 million (63.6%) to $8.0 million as the company repaid a portion of its outstanding subordinated notes [17] - Total stockholders' equity decreased by $353,000 (0.7%) to $52.3 million, impacted by dividends paid and the net loss for the period [18]