SOUTHAMPTON, PA — Quaint Oak Bancorp, Inc. (OTCQB: QNTO), the holding company for Quaint Oak Bank, has reported a return to profitability for the third quarter ending September 30, 2024. The company posted a net income of $243,000, or $0.09 per share, a notable turnaround from a net loss of $255,000 during the same period in 2023. This improvement underscores a significant financial rebound as the company navigates market challenges.
For the first nine months of 2024, Quaint Oak recorded a net income of $1.2 million, marking a 38.5% increase from the $878,000 reported in the previous year. CEO Robert T. Strong expressed satisfaction with the results, stating, “Our earnings for the quarter ended September 30, 2024, have improved over the same period of one year ago. Although we have not yet achieved our historic levels, this report signals a significant improvement.”
The company’s non-interest income saw significant gains in both the third quarter and the nine-month period, contributing positively to the financial results. However, there was a noted decrease in interest income due to a reduced average balance of loans receivable, which was offset by improved yields and an increase in holdings from banks.
Despite some market weaknesses in small business lending, the company increased its allowance for credit losses to 1.24%. However, non-performing loans and assets remained below 1% of totals, reflecting relatively strong credit quality.
Strategically, Quaint Oak made decisive moves by discontinuing operations of Oakmont Capital Holdings, LLC, and Quaint Oak Real Estate, LLC, in March 2024. These decisions are aligned with the company’s focus on core banking operations and long-term profitability.
The company’s total risk-based capital ratio at the end of the third quarter was 13.86%, and stockholder equity increased by $2.9 million since the end of 2023. As part of its commitment to shareholder value, the board approved a dividend of $0.13 per share.
Looking ahead, Strong emphasized the company’s focus on maintaining healthy capital ratios and profitability, stating, “As always, our current and continued business strategy focuses on maintaining healthy capital ratios coupled with long-term profitability and payment of dividends, each of which reflect our strong commitment to shareholder value.”
Overall, Quaint Oak Bancorp’s third-quarter results highlight its strategic focus and financial health as it adapts to changing market conditions.
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