Quaint Oak Bancorp Reports $685.2 Million in Total Assets and Decline in Net Income for 2024

Quaint Oak Bancorp, Inc. reported a total asset value of $685.2 million and total deposits of $553.3 million as of December 31, 2024. The company’s stockholders’ equity stood at $52.6 million, representing 7.7% of total assets. The net loan portfolio was $534.7 million, accounting for approximately 78% of total assets. The bank's primary lending activities include commercial real estate loans, which comprised 55% of the total loan portfolio, and commercial business loans, which made up 21.1%. The company experienced a decrease in total loans from $625.2 million in 2023 to $541.6 million in 2024, reflecting a strategic shift in focus and market conditions.

In terms of profitability, Quaint Oak Bancorp's financial performance showed a decline in net income, attributed to a decrease in loan originations and increased credit losses. The company originated $322.9 million in loans during the fiscal year, down from $565.3 million in the previous year. The decrease in loan originations was primarily due to a significant reduction in commercial business loans, which fell from $371.8 million in 2023 to $77.8 million in 2024. The allowance for credit losses was reported at $6.5 million, with non-performing loans increasing to 1.18% of total loans, up from 0.07% in the prior year.

Strategically, Quaint Oak Bancorp made significant changes by selling its 51% interest in Oakmont Capital Holdings, LLC, and discontinuing the operations of Quaint Oak Real Estate, LLC. These decisions were made to streamline operations and focus on core banking activities. The company also established international correspondent banking operations, which accounted for $57.9 million, or 10.5%, of total deposits as of year-end. However, following the fiscal year, the bank exited one of its correspondent banking relationships, indicating a cautious approach to international operations.

Operationally, Quaint Oak Bancorp reported a total employee headcount of 131 as of December 31, 2024. The bank's primary market area includes Bucks, Montgomery, and Philadelphia Counties in Pennsylvania, as well as the Lehigh Valley area. The company aims to enhance its market presence through improved customer service and operational efficiency. However, the bank faces significant competition from larger financial institutions and must navigate regulatory scrutiny, particularly concerning its commercial real estate lending practices, which have been flagged for increased oversight due to concentration risks.

Looking ahead, Quaint Oak Bancorp anticipates challenges related to economic conditions, interest rate fluctuations, and regulatory changes. The company has expressed concerns about the potential impact of rising interest rates on its loan portfolio and deposit retention. Management remains focused on maintaining adequate capital levels and liquidity to support future growth while addressing the risks associated with its concentrated lending practices. The bank's ability to adapt to changing market conditions and regulatory requirements will be critical to its ongoing financial performance and stability.