Thu, May 15, 4:31 PM (29 days ago)
### Summary of Quaint Oak Bancorp, Inc. (QNTO) Q1 2025 Financial Performance **Company Overview:** Quaint Oak Bancorp, Inc. (QNTO) is a Pennsylvania-based financial holding company, primarily operating through its subsidiary, Quaint Oak Bank. The company offers a range of banking services, including mortgage banking, title abstract services, insurance, and commercial real estate financing. **Q1 2025 Financial Highlights:** - **Revenue:** Total revenue for Q1 2025 was $10.4 million, down from $12.1 million in Q1 2024. - **Net Income:** QNTO reported a net loss of $83,000 for Q1 2025, compared to a net income of $873,000 in Q1 2024. - **Interest Income:** Interest income decreased by $2.2 million, primarily due to a decrease in the average balance of loans receivable and a reduction in the average yield on loans. - **Interest Expense:** Interest expense decreased by $930,000, driven by a reduction in interest expense on deposits and Federal Home Loan Bank long-term borrowings. - **Non-Interest Income:** Increased by $178,000, mainly due to gains on the sale of SBA loans and an increase in insurance commissions. - **Non-Interest Expense:** Increased by $419,000, primarily due to higher occupancy and equipment expenses, data processing costs, and professional fees. - **Provision for Credit Losses:** Decreased by $695,000, reflecting a reduction in loans receivable and an increase in charge-offs. - **Capital Ratios:** QNTO maintained strong capital ratios, with tier 1 leverage, common equity tier 1 capital, tier 1 risk-based, and total risk-based capital ratios well above regulatory requirements. **Operating Segments:** - **Banking Segment:** Reported a pre-tax segment loss of $635,000, driven by a decrease in net interest income and an increase in non-interest expense. - **Oakmont Commercial Segment:** Reported a pre-tax segment profit of $554,000, primarily due to an increase in non-interest income from gains on the sale of loans. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** Decreased by $14.1 million to $48.9 million. - **Deposits:** Total deposits decreased by $45.7 million, primarily due to a reduction in interest-bearing checking accounts. - **Borrowings:** Increased by $17.1 million, with a significant portion from Federal Home Loan Bank short-term borrowings. - **Stockholders' Equity:** Decreased by $353,000, primarily due to dividends paid and net loss for the period. **Risk Factors and Uncertainties:** - **Economic Conditions:** The company's performance is sensitive to general economic conditions, interest rates, and competitive pressures. - **Regulatory Environment:** QNTO is subject to extensive regulation by the Federal Reserve, FDIC, and Pennsylvania Department of Banking and Securities, which may impact its ability to pay dividends or incur additional indebtedness. **Future Outlook:** QNTO faces challenges in maintaining its deposit base and managing interest rate fluctuations. The company is focused on optimizing its loan portfolio, controlling expenses, and ensuring compliance with regulatory requirements. Despite these challenges, QNTO aims to leverage its strong capital position and strategic initiatives to drive future growth and profitability. **Conclusion:** Quaint Oak Bancorp, Inc. reported a challenging Q1 2025, with a net loss and decreased revenue. However, the company maintains a strong capital position and is focused on strategic initiatives to drive future growth. Investors should monitor the company's ability to manage interest rate risks, control expenses, and navigate the regulatory environment.