Quaint Oak Bancorp, Inc. (the “Company”), the holding company for Quaint Oak Bank, reported net income of $635,000 for the third quarter ended September 30, 2026. This figure represents $0.24 per basic and diluted share, a significant turnaround from the net loss of $41,000, or $(0.02) per share, reported for the same period in 2025.
For the nine months ended September 30, 2026, the Company reported net income of $1.3 million, or $0.48 per share, compared to net income of $148,000, or $0.06 per share, for the same period in 2025.
The improvement in profitability was driven by a decrease in interest expense of $951,000 and an increase in non-interest income of $750,000. A net decrease in the provision for credit losses of $381,000 also contributed to the results. These gains were partially offset by an increase in non-interest expense of $630,000 and a decrease in interest and dividend income of $531,000.
The Company noted that the decrease in interest expense was largely due to the repayment of all Federal Home Loan Bank (“FHLB”) borrowings, which decreased from $41.1 million in the prior year to none in the current quarter. Additionally, the average rate on certificates of deposit decreased by 31 basis points, and the average rate on money market deposits decreased by 103 basis points.
Conversely, interest and dividend income decreased by $531,000, primarily due to a $38.1 million decrease in the average balance of loans receivable, which fell from $599.3 million to $561.3 million. The Company also noted that the average interest rate spread increased from 2.07% to 2.52%, and the net interest margin increased from 2.77% to 3.17%.
In other business developments, the Company’s Board of Directors approved a program to repurchase or redeem an aggregate principal amount not to exceed $5.0 million of its 11.00% Fixed Rate Senior Unsecured Notes due 2028. The program may be discontinued at the Board’s discretion and does not commit the Company to any specific repurchase amount.
Robert T. Strong, Chief Executive Officer, stated that the return to improved profitability reflects the Company’s focus on reducing the cost of funds and managing operating expenses. He also noted that the Company is encouraged by consistent growth in fee income, driven by SBA lending activities and increased loan production through its subsidiary, Oakmont Commercial, LLC.
