SOUTHAMPTON, PA — Quaint Oak Bancorp, Inc. (OTCQB: QNTO) reported sharply lower earnings for the fourth quarter and full year of 2025, reflecting a deliberate shift toward long-term investment as the community bank enters its 100th year in operation.
The holding company for Quaint Oak Bank posted net income of $174,000, or $0.07 per share, for the quarter ended December 31, 2025, down from $1.6 million, or $0.60 per share, in the same quarter a year earlier. For the full year, net income fell to $322,000, or $0.12 per share, compared with $2.8 million, or $1.08 per share, in 2024.
Chief Executive Officer Robert T. Strong said the start of the bank’s centennial year marks a moment shaped by resilience and disciplined leadership, emphasizing that recent results reflect intentional investments rather than operational weakness. He said the organization has focused on adapting to industry shifts and evolving customer needs while laying groundwork for future profitability.
Non-interest expense rose $2.2 million year over year, driven largely by expanded technology platforms, compliance infrastructure, and personnel additions. Strong said those investments positioned the bank to move “from investment to activation” in 2026, particularly within its international correspondent banking business line.
During 2025, the bank’s SBA lending platform gained momentum, with $36.2 million in SBA loans originated, nearly double the $18.5 million produced in 2024. Management said fourth-quarter activity was temporarily affected by a government shutdown but has since normalized. Oakmont Commercial, the bank’s specialty real estate lending subsidiary, also shifted to an originate-and-sell model, which management expects to generate higher fee income while limiting balance sheet growth.
For the fourth quarter, net income declined 89 percent from a year earlier, primarily due to a $2.4 million drop in non-interest income and a $662,000 increase in non-interest expense. The prior-year quarter included a $1.5 million gain from the sale and leaseback of the bank’s Allentown office building. Those declines were partially offset by higher net interest income, lower interest expense, and reduced tax and credit loss provisions.
Net interest margin improved to 3.04 percent in the fourth quarter from 2.54 percent a year earlier, while the full-year margin rose to 2.83 percent from 2.59 percent. Average loan yields increased, and deposit costs declined as the bank exited certain correspondent banking relationships and reduced money market balances.
Total assets stood at $675.9 million at December 31, 2025, down 1.4 percent from a year earlier. Loans receivable increased modestly, led by growth in owner-occupied residential, commercial real estate, and construction loans. Total deposits rose 8 percent to $597.3 million, driven by growth in certificates of deposit and checking accounts, while money market balances declined sharply.
The bank fully repaid $47.9 million in Federal Home Loan Bank borrowings during the year and issued $10.0 million in senior unsecured notes due in 2028 to restructure its debt profile. Stockholders’ equity edged down to $52.3 million, reflecting dividends and treasury stock purchases, partially offset by net income and other comprehensive income.
Non-performing loans totaled $7.3 million, or 1.36 percent of total loans, at year-end, up slightly from $6.3 million a year earlier. Management said all non-performing assets remain well-collateralized or adequately reserved.
Strong said Quaint Oak exits 2025 in a stronger strategic position despite lower earnings, with a focus on long-term profitability, disciplined growth, and maintaining healthy capital ratios as it begins its second century of operation.
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