Quaint Oak Bancorp, Inc. reported a net loss of $83,000 for the first quarter of 2025, a significant decline from a net income of $873,000 in the same period last year. This downturn was primarily attributed to a $2.2 million decrease in interest income, which fell to $9.9 million, alongside a $419,000 increase in non-interest expenses, totaling $5.5 million. The company's net interest income also decreased by 23.4% to $4.1 million, driven by a reduction in the average balance of loans receivable and a decline in the average yield on those loans.
In terms of financial position, Quaint Oak Bancorp's total assets decreased by 5.1% to $650.4 million as of March 31, 2025, down from $685.2 million at the end of 2024. This decline was influenced by a 22.4% drop in cash and cash equivalents, a 20.7% decrease in loans held for sale, and a 1.6% reduction in net loans receivable. Total deposits also fell by 8.3% to $507.6 million, largely due to the exit from a correspondent banking relationship that resulted in a complete withdrawal of interest-bearing checking accounts.
Operationally, the company has made strategic adjustments, including the sale of its 51% interest in Oakmont Capital Holdings, LLC, which was classified as discontinued operations. This decision was part of a broader strategy to streamline operations and focus on core banking activities. The company continues to operate through its five wholly-owned subsidiaries, which include Quaint Oak Mortgage and Quaint Oak Insurance Agency, among others.
Looking ahead, Quaint Oak Bancorp's management expressed cautious optimism, noting that while the current economic environment presents challenges, the company is well-positioned to navigate these conditions. The bank's capital ratios remain strong, with a common equity tier 1 capital ratio of 12.67%, exceeding regulatory requirements. However, the company acknowledged the potential impact of economic fluctuations on loan originations and deposit flows, which could affect future performance.
About QUAINT OAK BANCORP INC
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