0000927089-26-000044
SEC filingQuaint Oak Bancorp reported FY 2025 net income of $322K, a significant decline from the prior year. The company generated $40.6M in total interest and dividend income, offset by $22.7M in interest expense, resulting in net interest income of $17.9M. Non-interest income contributed $7.2M, primarily from net gains on loans held for sale ($3.7M) and gain on SBA loan sales ($1.4M). Total non-interest expense was $23.2M, with salaries and employee benefits accounting for $15.2M. The company ended the year with $675.9M in total assets, $597.3M in total deposits, and $52.3M in stockholders' equity, representing 7.7% of total assets. Net cash provided by operating activities was $4.2M, while investing activities used $3.9M and financing activities used $9.7M, resulting in a net decrease in cash of $9.4M.
Quaint Oak Bancorp reported FY 2025 net income of $322K, with basic and diluted earnings per share of $0. The company generated $40.6M in total interest and dividend income, primarily from interest on loans ($39.0M) and investment securities ($1.6M). Interest expense totaled $22.7M, resulting in net interest income of $17.9M. After a $1.2M provision for credit losses, net interest income after provision was $16.7M. Non-interest income contributed $7.2M, driven by net gains on loans held for sale ($3.7M) and gain on SBA loan sales ($1.4M). Total non-interest expense was $23.2M, with salaries and employee benefits representing the largest component at $15.2M.
The company's revenue is primarily derived from interest income on loans, which totaled $39.0M for FY 2025. The loan portfolio is concentrated in commercial real estate (56.7% or $309.7M), commercial business (17.6% or $96.3M), and one-to-four family residential loans (12.9% or $70.5M). Non-interest revenue sources include mortgage banking activities, with Quaint Oak Mortgage LLC originating $112.3M of residential loans for sale and realizing $2.0M in gains from sales. The company also generates income from insurance commissions ($820K) and bank-owned life insurance ($128K).
Net interest margin was impacted by higher interest expense on deposits ($19.0M) and borrowings ($3.8M). The provision for credit losses was $1.2M, reflecting ongoing credit risk management. Non-interest expense ratio remains elevated at $23.2M, with compensation costs representing 65.5% of total non-interest expense. The company's efficiency ratio (non-interest expense divided by total revenue) would be approximately 48.5%, indicating room for operational improvement.
Operating activities generated $4.2M in cash, primarily from net income adjustments including $1.2M provision for credit losses and $3.7M net gain on loans sold. Investing activities used $3.9M, with net decrease in loans receivable of $6.0M partially offset by redemption of FHLB stock of $6.1M. Financing activities used $9.7M, driven by net decrease in demand deposits ($27.8M) offset by net increase in certificate accounts ($71.8M). The balance sheet shows total assets of $675.9M, with loans receivable net of allowance of $540.7M (80.0% of assets). Total liabilities were $623.5M, primarily deposits of $597.3M. Stockholders' equity was $52.3M, with a double leverage ratio of 128.4%.
The company faces several risk factors including concentration in commercial real estate lending (56.7% of portfolio), liquidity risk with 61.3% of deposits in certificates, and regulatory scrutiny of correspondent banking relationships. Management has implemented enhanced AML/CFT programs following consent orders with regulators. The company maintains adequate capital ratios with common equity Tier 1 capital ratio of 12.36% and total risk-based capital ratio of 13.55%, well above regulatory minimums. Strategic priorities include managing commercial real estate concentration risk, maintaining liquidity through diverse funding sources, and enhancing risk management frameworks.