Quaint Oak Bancorp Reports 172% Increase in Q2 Net Income, Total Assets Decline

Quaint Oak Bancorp, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $272,000, a significant increase of 172% compared to $100,000 in the same period last year. The rise in net income was primarily attributed to a $1.1 million decrease in interest expenses, which offset a $703,000 decline in interest and dividend income. For the first half of 2025, net income was $189,000, down 80.6% from $973,000 in the prior year, largely due to a decrease in interest and dividend income and an increase in non-interest expenses.

Total assets for Quaint Oak Bancorp decreased by $14.4 million, or 2.1%, to $670.8 million as of June 30, 2025, compared to $685.2 million at the end of 2024. This decline was driven by a $14.1 million drop in cash and cash equivalents and an $8.3 million reduction in loans held for sale. However, loans receivable increased by $7 million, or 1.3%, to $541.7 million, with notable growth in one-to-four family owner-occupied loans and home equity loans. The company’s total deposits also fell by $21.1 million, or 3.8%, to $532.2 million, primarily due to a significant decrease in money market accounts.

In terms of operational developments, Quaint Oak Bancorp has continued to focus on its core banking and commercial real estate lending activities. The company’s mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $55.3 million in one-to-four family residential loans during the first half of 2025. Additionally, the Oakmont Commercial, LLC segment reported a pre-tax segment profit of $1.0 million for the six months ended June 30, 2025, reflecting a substantial increase from the previous year, driven by higher non-interest income and net interest income.

The company’s strategic decisions included the issuance of $10 million in senior unsecured notes to enhance liquidity, which contributed to a $12.1 million increase in Federal Home Loan Bank borrowings. The subordinated debt decreased significantly from $22 million to $8 million as the company repaid a portion of its outstanding notes. Looking ahead, Quaint Oak Bancorp anticipates continued challenges in the economic environment, particularly regarding interest rates and competitive pressures, which may impact future performance. The company remains focused on maintaining its capital ratios and liquidity to navigate these conditions effectively.