Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] |
Note 2 – Discontinued Operations
On March 29, 2024, Quaint Oak Bank sold its 51% interest in OCH. The decision was based on a number of strategic priorities and other factors. As a result of this action, the Company classified the operations of OCH as discontinued operations under ASC 205-20. The Consolidated Balance Sheets, Consolidated Statements of Income and Consolidated Statements of Cash Flows present discontinued operations for the current period and retrospectively for prior periods.
No assets or liabilities for OCH were held at September 30, 2024. The following is a summary of the assets and liabilities of the discontinued operations of OCH at December 31, 2023 (in thousands):
| | At December 31, | |
| | 2023 | |
| | (Unaudited) | |
Assets from Discontinued Operations | | | | |
Cash and cash equivalents | | $ | 4,121 | |
Loans held for sale | | | 9,580 | |
Premises and equipment, net | | | 277 | |
Goodwill | | | 2,058 | |
Prepaid expenses and other assets | | | 3,939 | |
Total Assets from Discontinued Operations | | $ | 19,975 | |
| | | | |
Liabilities and Stockholders’ Equity from Discontinued Operations | | | | |
Liabilities from Discontinued Operations | | | | |
Other short-term borrowings | | $ | 5,549 | |
Accrued interest payable | | | 565 | |
Accrued expenses and other liabilities | | | 7,052 | |
Total Liabilities from Discontinued Operations | | | 13,166 | |
Total Stockholders’ Equity from Discontinued Operations | | | 6,809 | |
Total Liabilities and Stockholders’ Equity from Discontinued Operations | | $ | 19,975 | |
The following presents operating results of the discontinued operations OCH for the three and nine months ended September 30, 2024 and September 30, 2023 (in thousands):
| | For the Three Months Ended | | | For the Nine Months Ended | |
| | September 30, | | | September 30, | |
| | 2024 | | | 2023 | | | 2024 | | | 2023 | |
| | (In thousands, except for share data) | |
Interest and Dividend Income | | | | | | | | | | | | | | | | |
Interest on loans, including fees | | $ | - | | | $ | 145 | | | $ | 70 | | | $ | 423 | |
Interest and dividends on time deposits, investment securities, interest-bearing deposits with others, and Federal Home Loan Bank stock | | | - | | | | - | | | | - | | | | - | |
Total Interest and Dividend Income | | | - | | | | 145 | | | | 70 | | | | 423 | |
| | | | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | | | | |
Interest on other borrowings | | | - | | | | 434 | | | | 295 | | | | 1,376 | |
Total Interest Expense | | | - | | | | 434 | | | | 295 | | | | 1,376 | |
Net Interest Loss | | | - | | | | (289 | ) | | | (225 | ) | | | (953 | ) |
| | | | | | | | | | | | | | | | |
Non-Interest Income | | | | | | | | | | | | | | | | |
Mortgage banking, equipment lending and title abstract fees | | | - | | | | 281 | | | | 404 | | | | 1,390 | |
Other fees and services charges | | | - | | | | 254 | | | | 197 | | | | 556 | |
Net loan servicing income | | | - | | | | 801 | | | | 726 | | | | 3,008 | |
Net gain on sale of loans | | | - | | | | 671 | | | | 366 | | | | 1,796 | |
Gain on sale of OCH (1) | | | - | | | | - | | | | 1,378 | | | | - | |
Total Non-Interest Income | | | - | | | | 2,007 | | | | 3,071 | | | | 6,750 | |
| | | | | | | | | | | | | | | | |
Non-Interest Expense | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | - | | | | 1,995 | | | | 1,681 | | | | 5,741 | |
Occupancy and equipment | | | - | | | | 212 | | | | 219 | | | | 608 | |
Professional fees | | | - | | | | 22 | | | | 31 | | | | 81 | |
Advertising | | | - | | | | 36 | | | | 146 | | | | 306 | |
Other | | | - | | | | 269 | | | | 987 | | | | 731 | |
Total Non-Interest Expense | | | - | | | | 2,534 | | | | 3,064 | | | | 7,467 | |
Total net loss from discontinued operations | | $ | - | | | $ | (816 | ) | | $ | (218 | ) | | $ | (1,670 | ) |
Loss attributable to non-controlling interest | | | - | | | | (399 | ) | | | (782 | ) | | | (818 | ) |
Net (loss) gain from discontinued operations | | $ | - | | | $ | (417 | ) | | $ | 564 | | | $ | (852 | ) |
(1) Gain on sale of OCH has been reclassified from prior periods from continuing operations to discontinued operations.
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