SOUTHAMPTON, PA — Quaint Oak Bancorp, Inc. (OTCQB: QNTO), the parent company of Quaint Oak Bank, announced a net loss of $83,000, or $(0.03) per share, for the first quarter of 2025, compared to net income of $873,000, or $0.36 per share, during the same period in 2024.
“First quarter results historically are not the best of our calendar year. Our first quarter results of this year certainly proved true with slightly less than a breakeven performance,” said Robert T. Strong, Chief Executive Officer. He attributed the results to broader economic challenges, noting, “The trends in the country’s real gross domestic product shrinkage of -0.3% in the first quarter 2025 from growth of 2.4% in the fourth quarter of 2024 is a testament to the reality we have experienced.”
The company experienced declines in interest and dividend income, as well as increased non-interest expenses, impacting quarterly performance. The mortgage banking business saw muted activity amid a struggling housing market, and small business lending was also slow, reflecting economic uncertainties.
“Uncertainty of the country’s direction in world trade and other domestic issues have had the effect of slowing commitments in the business sector,” Strong explained. However, he expressed optimism about the future, stating, “On a more positive note, the Bank’s pipeline for commercial loans, SBA loans and mortgage loans is relatively strong which would indicate that as the uncertainty in political direction is clarified, our prospects for loan closings should improve.”
The company highlighted stable financial metrics, including a Total Risk-Based Capital Ratio of 13.92%, up from 13.61% a year earlier, and improvement in the Texas Ratio to 9.22% from 11.96% in Q1 2024. Meanwhile, non-performing loans were 1.13% of total loans, slightly higher than the previous quarter but down compared to last year.
“Our current and continued business strategy focuses on long-term profitability and maintaining healthy capital ratios both of which reflect our strong commitment to shareholder value,” Strong concluded.
Despite challenges in the first quarter, Quaint Oak remains focused on navigating economic headwinds while leveraging its strong loan pipeline and capital position for future growth.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.