Quaint Oak earnings returned to profit in the third quarter of 2026, as lower interest expenses and higher fee income helped offset rising operating costs. The bank holding company reported net income of $635,000, compared with a $41,000 loss a year earlier.

Key Takeaways

  • Third-quarter earnings were $0.24 per basic and diluted share, compared with a loss of $0.02 per share a year earlier.
  • Non-performing loans increased to $11.4 million at September 30 from $7.3 million at the end of 2025.

Quaint Oak earnings benefit from lower funding costs

For the nine months ended September 30, 2026, net income rose to $1.3 million, or $0.48 per basic and diluted share, from $148,000, or $0.06 per share, in the same period of 2025.

Chief Executive Officer Robert T. Strong said the repayment of Federal Home Loan Bank borrowings and declining deposit costs helped strengthen the net interest margin. The margin rose to 3.17% in the third quarter from 2.77% a year earlier.

Interest expense fell $951,000, while non-interest income rose $750,000. Those gains were partly offset by a $630,000 increase in non-interest expense and a $531,000 decline in interest and dividend income.

Loan sales and servicing support fee income

Strong attributed fee-income growth in part to expanded Small Business Administration lending and increased loan production through Oakmont Commercial. Quaint Oak originates and sells loans into the secondary market.

Oakmont Commercial is a commercial real estate financing subsidiary of Quaint Oak Bank. During the first nine months of 2026, it originated $52.0 million of commercial real estate loans and sold $58.1 million of loans in the secondary market.

The company said third-quarter non-interest income benefited from a $412,000 increase in net loan servicing income and a $113,000 increase in gains on SBA loan sales. Retaining servicing on certain loan sales contributed to the servicing-income increase.

Non-performing loans and deposits

Non-performing loans represented 2.27% of total loans receivable, net of the allowance for credit losses, at September 30, compared with 1.36% at December 31, 2025. Strong said the company was working to resolve the loans and was adding staff resources to support that effort. He said the loans were either well-collateralized or adequately reserved.

Total deposits fell to $554.0 million at September 30 from $597.3 million at the end of 2025. Total assets declined to $634.1 million from $675.9 million over the same period, primarily reflecting a decrease in net loans receivable.

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