Quaint Oak Bancorp, Inc. reported a net loss of $83,000, or $(0.03) per basic and diluted share, for the quarter ended March 31, 2025. This compares to net income of $873,000, or $0.36 per share, for the same period in 2024, reflecting a challenging business sector and housing market. Interest and dividend income decreased by $2.2 million, primarily due to lower average loan balances and yields.
Despite the net loss, the Company executed a significant financing event by issuing $10.0 million in Fixed Rate Unsecured Senior Notes at an 11.00% fixed annual rate. The proceeds from these notes were used to repay $14.0 million of maturing 8.50% subordinated notes, reducing subordinated debt by 63.6% to $8.0 million. This restructuring aims to optimize the Company's funding mix.
Total deposits decreased by $45.7 million, or 8.3%, to $507.6 million, largely due to exiting a correspondent banking relationship. However, the Bank's Total Risk-Based Capital Ratio improved to 13.92% at March 31, 2025, from 13.61% a year prior. The Texas Ratio also improved to 9.22% from 11.96% in the prior year.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.