Quaint Oak Bancorp, Inc. (the "Company") (OTCBB:QNTO), the holding
company for Quaint Oak Bank (the "Bank"), announced today that net
income for the quarter ended June 30, 2011 was $117,000, or $0.12
per basic and diluted share, compared to $139,000, or $0.13 per
basic and diluted share for the same period in 2010. Net income for
the six months ended June 30, 2011 was $274,000, or $0.28 per basic
and diluted share compared to $292,000, or $0.27 per basic and
diluted share for the same period in 2010.
Robert T. Strong, President and Chief Executive Officer stated,
"During the first half of the year, the Company continued to face
challenges in the local real estate market but succeeded in
maintaining loan production at levels consistent with the prior
year. We have continued to meet the challenges with additional
lending staff and other operational initiatives that we trust will
be beneficial to the Company going forward."
Mr. Strong continued, "We are pleased to report that our capital
increased over $300,000 at June 30, 2011, compared to December 31,
2010, and we increased our quarterly dividend, all of which
reflects our business strategy of long term profitability, the
continued payment of dividends and commitment to building
shareholder value."
Net income amounted to $117,000 for the three months ended June
30, 2011, a decrease of $22,000, or 15.8%, compared to net income
of $139,000 for three months ended June 30, 2010. The decrease in
net income on a comparative quarterly basis was primarily the
result of an increase in non-interest expense of $113,000, offset
by increases in net interest income of $54,000 and non-interest
income of $26,000, and a decrease in the provision for income taxes
of $12,000.
The $54,000, or 6.4% increase in net interest income for the
three months ended June 30, 2011 over the comparable period in 2010
was driven by a $52,000, or 3.9% increase in interest income and a
$2,000, or 0.4% decrease in interest expense. The average interest
rate spread increased from 3.24% for the three months ended June
30, 2010, to 3.36% for the same period in 2011, while the net
interest margin decreased slightly from 3.59% for the three months
ended June 30, 2010, to 3.57% for same period in 2011.
The $26,000, or 34.2% increase in non-interest income for the
three months ended June 30, 2011 over the comparable period in 2010
was primarily attributable to an increase in fee income generated
by Quaint Oak Bank's mortgage banking, title abstract and real
estate sales subsidiaries.
The $113,000, or 17.2% increase in non-interest expense for the
three months ended June 30, 2011 compared to the same period in
2010 was primarily attributable to a $100,000 increase in salaries
and employee benefits expense, a $20,000 increase in expenses
related to other real estate owned, an $18,000 increase in
occupancy and equipment expense, and a $3,000 increase in
directors' fees and expenses. Offsetting these increases was a
$15,000 decrease in professional fees, and a $7,000 decrease in
advertising. The increase in salaries and employee benefits
expense on a quarter-over-quarter basis was primarily attributable
to increased staff as the Company expanded its mortgage banking and
lending operations and implemented employee health care
benefits.
The $12,000, or 12.9% decrease in the provision for income taxes
for the three months ended June 30, 2011 over the three month
period ended June 30, 2010 was due primarily to the decrease in
pre-tax income as our effective tax rate remained relatively
consistent at 40.9% for the 2011 period compared to 40.1% for the
comparable period in 2010.
For the six months ended June 30, 2011, net income amounted to
$274,000 compared to $292,000 for the six months ended June 30,
2010. The $18,000 decrease was primarily the result of a
$182,000 increase in non-interest expense, offset by a $126,000
increase in net interest income, a $34,000 increase in non-interest
income, and a $3,000 decrease in the provision for income
taxes.
The $126,000, or 7.6% increase in net interest income for the
six months ended June 30, 2011 over the comparable period in 2010
was driven by a $102,000, or 3.9% increase in interest income and a
$24,000, or 2.5% decrease in interest expense. The average interest
rate spread increased from 3.26% for the six months ended June 30,
2010, to 3.38% for the same period in 2011, while the net interest
margin decreased slightly from 3.62% for the six months ended June
30, 2010, to 3.61% for same period in 2011.
As was the case for the quarter, the $34,000, or 23.1% increase
in non-interest income for the six months ended June 30, 2011 over
the comparable period in 2010 was primarily attributable to an
increase in fee income generated by Quaint Oak Bank's mortgage
banking, title abstract and real estate sales subsidiaries.
The $182,000, or 14.4% increase in non-interest expense for the
six months ended June 30, 2011 compared to the same period in 2010
was primarily attributable to a $164,000 increase in salaries and
employee benefits expense, a $25,000 increase in expenses related
to other real estate owned, a $17,000 increase in occupancy and
equipment expense, a $9,000 increase in directors' fees and
expenses, and a $1,000 increase in FDIC deposit insurance
assessment. Offsetting these increases was a $28,000 decrease
in professional fees, and a $6,000 decrease in advertising. As
was the case for the quarter, the increase in salaries and employee
benefits expense was primarily attributable to increased staff as
the Company expanded its mortgage banking and lending operations
and implemented employee health care benefits.
The $3,000, or 1.6% decrease in the provision for income taxes
for the six months ended June 30, 2011 over the six month period
ended June 30, 2010 was due primarily to the decrease in pre-tax
income as our effective tax rate remained relatively consistent at
40.7% for the 2011 period compared to 39.5% for the comparable
period in 2010.
The Company's total assets at June 30, 2011 were $106.1 million,
an increase of $4.0 million, or 3.9%, from $102.1 million at
December 31, 2010. This increase was primarily due to growth in
cash and cash equivalents of $5.3 million, loans held for sale of
$1.1 million, and investment securities available for sale of
$97,000. Offsetting these increases was a decrease in loans
receivable, net of the allowance for loan losses, of $1.2 million,
principal payments from mortgage-backed securities held to maturity
of $807,000, and a decrease in investment in interest-earning time
deposits of $526,000. Asset growth for the six months ended
June 30, 2011 was funded by a $4.9 million increase in
deposits.
Total interest-bearing deposits increased $4.9 million, or 6.2%,
to $84.6 million at June 30, 2011 from $79.7 million at December
31, 2010. This growth in deposits was attributable to increases in
certificates of deposit and eSavings accounts of $4.5 million and
$758,000, respectively. These increases were offset by a
decrease of $254,000 in statement savings accounts and $107,000 in
passbook savings accounts. The increase in certificates of deposit
was primarily due to the competitive interest rates offered by the
Bank and investors continuing to seek the safety of insured bank
deposits.
Total stockholders' equity increased $314,000 to $15.5 million
at June 30, 2011 from $15.2 million at December 31, 2010.
Contributing to the increase was net income for the six months
ended June 30, 2011 of $274,000, amortization of stock awards and
options under our stock compensation plans of $60,000, common stock
earned by participants in the employee stock ownership plan of
$35,000, and a decrease in accumulated other comprehensive loss of
$13,000. These increases were offset by dividends paid of
$65,000 and the purchase of 310 shares of the Company's stock as
part of the Company's stock repurchase program for an aggregate
purchase price of $3,000.
Non-performing loans amounted to $2.1 million, or 2.85% of net
loans receivable at June 30, 2011, consisting of twenty-three
loans, fourteen of which are on non-accrual status and nine of
which are 90 days or more past due and accruing interest.
Comparably, non-performing loans amounted to $1.5 million, or 2.02%
of net loans receivable at December 31, 2010, consisting of
thirteen loans, seven of which were on non-accrual status and six
of which were 90 days or more past due and accruing
interest. The non-performing loans at June 30, 2011 include
ten one-to-four family non-owner occupied residential loans, six
home equity loans, six one-to-four family owner occupied
residential loans, and one multi-family residential loan, and all
are generally well-collateralized or adequately reserved for.
Management does not anticipate any significant losses on these
loans. During the quarter ended June 30, 2011, three loans were
placed on non-accrual status resulting in the reversal of $5,000 of
previously accrued interest income. Also during the quarter, one
loan previously on non-accrual status was transferred to other real
estate owned. Not included in non-performing loans are performing
troubled debt restructurings which totaled $610,000 at June 30,
2011 compared to $430,000 at December 31, 2010. The allowance for
loan losses as a percent of total loans receivable was 1.02% at
June 30, 2011 and 1.15% at December 31, 2010.
Other real estate owned amounted to $1.2 million at June 30,
2011, consisting of six properties, none of which had a carrying
value greater than $375,000. This compares to five properties
totaling $1.2 million at December 31, 2010 and seven properties at
March 31, 2011. Non-performing assets amounted to $3.3
million, or 3.10% of total assets at June 30, 2011 compared to $2.7
million, or 2.64% of total assets at December 31, 2010 and $3.8
million, or 3.69% at March 31, 2011. During the quarter ended
June 30, 2011, one one-to-four family owner occupied residential
loan with an outstanding loan balance of $468,000 previously
classified as non-accrual, was transferred into other real estate
owned at a fair value of approximately $375,000. In
conjunction with this transfer, $93,000 of the outstanding loan
balance was charged-off through the allowance for loan
losses. Also during the quarter, the Company sold two other
real estate owned properties and realized gains on each transaction
which totaled $63,000. The Company financed the purchase of
both properties. As of June 30, 2011, the gains were deferred.
The Company also anticipates loan closings on two additional other
real estate owned properties currently under agreement of sale
sometime in the early part of the third quarter. A minimal
loss is expected on these two transactions.
Quaint Oak Bancorp, Inc. is the holding company for Quaint Oak
Bank. Quaint Oak Bank is a Pennsylvania-chartered stock savings
bank headquartered in Southampton, Pennsylvania and conducts
business through its two banking offices located in Bucks County
and Lehigh County, Pennsylvania.
The Quaint Oak Bancorp, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4654
Statements contained in this news release which are not
historical facts may be forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to risks and
uncertainties which could cause actual results to differ materially
from those currently anticipated due to a number of factors.
Factors which could result in material variations include, but are
not limited to, changes in interest rates which could affect net
interest margins and net interest income, competitive factors which
could affect net interest income and noninterest income, changes in
demand for loans, deposits and other financial services in the
Company's market area; changes in asset quality, general economic
conditions as well as other factors discussed in documents filed by
the Company with the Securities and Exchange Commission from time
to time. The Company undertakes no obligation to update these
forward-looking statements to reflect events or circumstances that
occur after the date on which such statements were made.
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|
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QUAINT OAK BANCORP,
INC. |
|
|
Consolidated Balance
Sheets |
|
|
(In Thousands) |
|
|
|
|
|
|
At June 30,
2011 |
At December 31,
2010 |
Assets |
(Unaudited) |
(Unaudited) |
Cash and cash equivalents |
$13,932 |
$8,650 |
Investment in interest-earning time
deposits |
5,475 |
6,001 |
Investment securities available for sale at
fair value (cost-2011 $3,368; 2010 $3,290) |
3,368 |
3,271 |
Mortgage-backed securities held to maturity
(fair value-2011 $5,013; 2010 $5,810) |
4,599 |
5,406 |
Loans held for sale |
1,139 |
-- |
Loans receivable, net of allowance for loan
losses (2011: $759; 2010: $871) |
73,465 |
74,710 |
Accrued interest receivable |
454 |
423 |
Investment in Federal Home Loan Bank stock,
at cost |
683 |
757 |
Premises and equipment, net |
1,116 |
1,073 |
Other real estate owned, net |
1,191 |
1,191 |
Prepaid expenses and other assets |
689 |
619 |
Total Assets |
$106,111 |
$102,101 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Liabilities |
|
|
Deposits, interest-bearing |
$84,607 |
$79,691 |
Federal Home Loan Bank advances and other
borrowings |
5,012 |
6,023 |
Accrued interest payable |
96 |
107 |
Advances from borrowers for taxes and
insurance |
663 |
746 |
Accrued expenses and other
liabilities |
228 |
343 |
Total Liabilities |
90,606 |
86,910 |
|
|
|
Stockholders' Equity |
15,505 |
15,191 |
Total Liabilities and
Stockholders' Equity |
$106,111 |
$102,101 |
|
QUAINT OAK BANCORP,
INC. |
Consolidated Statements
of Income |
(In Thousands, except share
data) |
|
|
|
|
|
|
For the Three
Months Ended June 30, |
For the Six
Months Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
|
(Unaudited) |
(Unaudited) |
Interest Income |
$1,378 |
$1,326 |
$2,735 |
$2,633 |
Interest Expense |
482 |
484 |
948 |
972 |
Net Interest Income |
896 |
842 |
1,787 |
1,661 |
Provision for Loan Losses |
29 |
28 |
56 |
57 |
Net Interest Income after
Provision for Loan Losses |
867 |
814 |
1,731 |
1,604 |
Non-Interest Income |
102 |
76 |
181 |
147 |
Non-Interest Expense |
771 |
658 |
1,450 |
1,268 |
Income before Income
Taxes |
198 |
232 |
462 |
483 |
Income Taxes |
81 |
93 |
188 |
191 |
Net Income |
$117 |
$139 |
$274 |
$292 |
|
|
|
|
|
Per Common Share Data: |
Three Months
Ended June 30, |
Six Months Ended
June 30, |
|
2011 |
2010 |
2011 |
2010 |
Earnings per share - basic |
$0.12 |
$0.13 |
$0.28 |
$0.27 |
Average shares outstanding - basic |
974,110 |
1,042,956 |
971,029 |
1,083,942 |
Earnings per share - diluted |
$0.12 |
$0.13 |
$0.28 |
$0.27 |
Average shares outstanding -
diluted |
979,067 |
1,047,902 |
977,375 |
1,089,524 |
|
|
|
|
|
|
Three Months
Ended June 30, |
Six Months
Ended June 30, |
|
2011 |
2010 |
2011 |
2010 |
Selected Operating
Ratios: |
(Unaudited) |
(Unaudited) |
Average yield on interest-earning
assets |
5.50% |
5.65% |
5.52% |
5.74% |
Average rate on interest-bearing
liabilities |
2.14% |
2.41% |
2.14% |
2.48% |
Average interest rate spread |
3.36% |
3.24% |
3.38% |
3.26% |
Net interest margin |
3.57% |
3.59% |
3.61% |
3.62% |
Average interest-earning assets to
average interest-bearing liabilities |
114.42% |
116.82% |
112.06% |
116.76% |
Efficiency ratio |
77.25% |
71.68% |
73.68% |
70.13% |
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios
(1): |
|
|
|
|
Non-performing loans as a percent
of total loans receivable, net |
2.85% |
3.27% |
2.85% |
3.27% |
Non-performing assets as a percent
of total assets |
3.10% |
3.39% |
3.10% |
3.39% |
Allowance for loan losses as a
percent of non-performing loans |
36.20% |
36.21% |
36.20% |
36.21% |
Allowance for loan losses as a
percent of total loans receivable |
1.02% |
1.17% |
1.02% |
1.17% |
|
|
|
|
|
(1) Asset quality ratios are end of period
ratios. |
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CONTACT: Quaint Oak Bancorp, Inc.
Robert T. Strong, President and Chief Executive Officer
(215) 364-4059
Quaint Oak Bancorp (QB) (USOTC:QNTO)
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