Quaint Oak Bancorp Reports $166,000 Net Income in Q1 2026, Significant Turnaround from Loss

Quaint Oak Bancorp, Inc. reported a net income of $166,000 for the first quarter of 2026, a significant turnaround from a net loss of $83,000 in the same period last year. This improvement is attributed to a $580,000 decrease in interest expenses and a $345,000 reduction in the provision for credit losses, despite a slight decline in interest and dividend income. The company's net interest income rose to $4.7 million, reflecting a 13.2% increase from the previous year, driven by lower interest expenses, which fell to $5.2 million from $5.8 million.

Total assets for Quaint Oak Bancorp decreased by 4.8% to $643.2 million as of March 31, 2026, down from $675.9 million at the end of 2025. This decline was primarily due to a $14.3 million reduction in net loans receivable and a $9.1 million decrease in loans held for sale. The company’s cash and cash equivalents also fell by 16.6% to $44.7 million, as excess liquidity was utilized to fund loans. The total deposits decreased by 5.3% to $565.4 million, driven by declines in interest-bearing checking accounts and certificates of deposit.

Operationally, Quaint Oak Bancorp's loan portfolio saw a decrease in commercial business loans and construction loans, while one-to-four family owner-occupied loans experienced a slight increase. The company’s non-performing loans rose to $9.9 million, representing 1.87% of total loans, compared to $7.3 million, or 1.36%, at the end of 2025. The increase in non-performing loans was primarily due to a rise in loans on non-accrual status, which included various commercial real estate and business loans.

Strategically, Quaint Oak Bancorp continues to focus on its core banking operations and has maintained its capital ratios well above regulatory requirements, with a tier 1 leverage ratio of 10.45% as of March 31, 2026. The company has also been actively managing its liquidity, with total primary and secondary sources of available liquidity amounting to $297.7 million. Looking ahead, the company anticipates that ongoing economic conditions and competitive pressures will influence its operations, particularly in terms of loan origination volumes and deposit flows.