v3.26.1
Note 21 - Operating Segments
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 21 – Operating Segments

 

ASC Topic 820 – Segment Reporting identifies operating segments as components of an enterprise which are evaluated regularly by the Company’s Chief Operating Decision Maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company has applied the aggregation criterion set forth in this codification to the results of its operations. The Company's operations currently consist of two reportable operating segments: Banking and Oakmont Commercial. The Company offers different products and services through its two segments. The accounting policies of the segments are generally the same as those of the consolidated company.

 

The Banking Segment generates its revenues primarily from its lending, deposit gathering and fee business activities. The profitability of this segment's operations depends primarily on its net interest income after provision for credit losses, which is the difference between interest earned on interest earning assets and interest paid on interest bearing liabilities less provision for credit losses. The provision for credit losses is almost entirely dependent on changes in the Banking Segment's loan portfolio and management’s assessment of the collectability of the loan portfolio as well as prevailing economic and market conditions. The profitability of this segment’s operations also depends on the generation of non-interest income which includes fees and commissions generated by Quaint Oak Bank and its wholly-owned subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, and Quaint Oak Properties, LLC, which are included in the Banking Segment for segment reporting purposes. The Banking Segment is also subject to an extensive system of laws and regulations that are intended primarily for the protection of depositors and other customers, federal deposit insurance funds and the banking system as a whole. These laws and regulations govern such areas as capital, permissible activities, allowance for loan and lease losses, loans and investments, and rates of interest that can be charged on loans. For segment reporting purposes, Quaint Oak Bancorp, Inc. is included as part of the Company’s Banking segment.

 

The Oakmont Commercial Segment originates commercial real estate loans which are sold into the secondary market along with the loans’ servicing rights. The profitability of this segment’s operations depends primarily on the gains realized from the sale of loans and processing fees. The Oakmont Commercial Segment is also subject to an extensive system of laws and regulations that are intended primarily for the protection of consumers.

 

 

The following table presents summary financial information for the reportable segments (in thousands):

 

  

As of or for the Year Ended December 31,

 
  

2025

  

2024

 
  

Quaint Oak Bank(1)

  

Oakmont Commercial, LLC

  

Consolidated

  

Quaint Oak Bank(2)

  

Oakmont Commercial, LLC

  

Consolidated

 

Net Interest Income

 $16,737  $1,166  $17,903  $17,045  $772  $17,817 

Provision for (Recovery of) Credit Losses

  1,217   -   1,217   1,969   (435)  1,534 

Net Interest Income after Provision for (Recovery of) Credit Losses

  15,520   1,166   16,686   15,076   1,207   16,283 
                         

Non-Interest Income

                        

Mortgage banking, equipment lending and title abstract fees

  947   -   947   909   -   909 

Real estate sales commissions, net

  -   -   -   20   -   20 

Insurance commissions

  820   -   820   744   -   744 

Other fees and services charges

  (11)  99   88   593   135   728 

Income from bank-owned life insurance

  128   -   128   118   -   118 

Net gain on sale of loans

  2,038   1,707   3,745   2,187   1,512   3,699 

Gain on the sale of SBA loans

  1,431   -   1,431   453   -   453 

Gain on the sale-leaseback transaction

  -   -   -   1,485   -   1,485 

Total Non-Interest Income

  5,353   1,806   7,159   6,509   1,647   8,156 
                         

Non-Interest Expense

                        

Salaries and employee benefits

  13,882   1,276   15,158   13,195   1,441   14,636 

Directors’ fees and expenses

  263   -   263   201   -   201 

Occupancy and equipment

  1,796   3   1,799   1,418   -   1,418 

Data processing

  1,760   -   1,760   1,298   -   1,298 

Professional fees

  1,709   139   1,848   1,006   81   1,087 

FDIC deposit insurance assessment

  530   -   530   614   -   614 

Advertising

  270   24   294   277   25   302 

Amortization of other intangible

  48   -   48   49   -   49 

Other

  1,459   42   1,501   1,376   37   1,413 

Total Non-Interest Expense

  21,717   1,484   23,201   19,434   1,584   21,018 

Pretax Segment (Loss) Profit

 $(844) $1,488  $644  $2,151  $1,270  $3,421 

Income from Discontinued Operations

 $-  $-  $-  $564  $-  $564 

Income Tax from Discontinued Operations

 $-  $-  $-  $158  $-  $158 

Net Income from Discontinued Operations

 $-  $-  $-  $406  $-  $406 

Segment Assets

 $620,182  $55,671  $675,853  $632,644  $52,524  $685,168 

___________________

(1)

Includes Quaint Oak Bancorp, Inc. and the Bank’s subsidiaries, Quaint Oak Mortgage, Quaint Oak Abstract, Quaint Oak Insurance Agency, and QOB Properties.

(2)

Includes Quaint Oak Bancorp, Inc. and the Bank’s subsidiaries, Quaint Oak Mortgage, Quaint Oak Real Estate, Quaint Oak Abstract, Quaint Oak Insurance Agency, and QOB Properties.