SOUTHAMPTON, PA — Quaint Oak Bancorp, Inc. (OTCQB: QNTO) recently reported first-quarter net income of $166,000, reversing a year-earlier loss, as lower interest expenses and reduced credit loss provisions offset higher operating costs.
The company posted earnings of $0.06 per diluted share for the three months ended March 31, 2026, compared with a net loss of $83,000, or $(0.03) per share, a year earlier.
The improvement stemmed primarily from a $580,000 decline in interest expense and a $345,000 reduction in the provision for credit losses, along with a $53,000 increase in non-interest income, partially offset by higher operating expenses and income taxes.
Interest expense fell as balances of money market deposits and borrowings declined, including the elimination of Federal Home Loan Bank borrowings, while deposit pricing eased. These gains were partly offset by higher balances in certificates of deposit and business checking accounts.
Net interest margin rose to 2.90% from 2.63% a year earlier, and the interest rate spread increased to 2.26% from 2.13%.
Non-interest income increased due to higher gains on the sale of SBA loans and loan servicing income, partly offset by lower fee income and write-downs of SBA servicing assets and deferred origination costs.
Non-interest expense rose $580,000, led by higher salaries, professional fees and software-related costs, including compliance and regulatory remediation activities.
Provision for income taxes increased to $120,000 from $2,000 due to higher pre-tax income.
Total assets declined 4.8% to $643.2 million from year-end 2025, reflecting decreases in loans, loans held for sale and cash balances.
Loans held for sale decreased to $51.9 million as the company sold $21.1 million in commercial real estate loans, $20.5 million in residential loans and $9.8 million in SBA loans during the quarter.
Total deposits fell 5.3% to $565.4 million, driven by declines in checking accounts and certificates of deposit amid competitive deposit pricing.
Non-performing loans increased to $9.9 million, or 1.87% of total loans, from $7.3 million, or 1.36%, at year-end 2025. Non-performing assets rose to 1.59% of total assets from 1.20%.
Stockholders’ equity increased slightly to $52.5 million, supported by net income and stock-based compensation, partially offset by dividends and share repurchases.
Quaint Oak Bancorp is the parent of Quaint Oak Bank, which operates in the Delaware Valley, Lehigh Valley and Philadelphia markets.
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