Quaint Oak Bancorp Inc. reported unaudited consolidated financial results for the fourth quarter and year ended December 31, 2013. For the quarter, interest and dividend income was $1,681,000 against $1,488,000 a year ago. Net interest income was $1,289,000 against $1,062,000 a year ago. Income before income taxes was $400,000 against $301,000 a year ago. Net income was $258,000 or $0.28 per diluted share against $190,000 or $0.21 per basic and diluted share a year ago. The increase in net income on a comparative quarterly basis was primarily the result of increases in net interest income of $227,000 and non-interest income of $47,000, offset by an increase in the provision for loan losses of $98,000, an increase in non-interest expense of $77,000, and an increase in the provision for income taxes of $31,000. The $227,000, or 21.4% increase in net interest income for the three months ended December 31, 2013 over the comparable period in 2012 was driven by a $193,000, or 13.0% increase in interest income and a $34,000, or 8.0% decrease in interest expense. The increase in interest income was primarily due to a $17.0 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $86.1 million for the three months ended December 31, 2012 to an average balance of $103.1 million for the three months ended December 31, 2013, which had the effect of increasing interest income $279,000. Also contributing to the increase was a 33 basis point increase on the yield on average short-term investments and investment securities available for sale, from 1.41% for the three months ended December 31, 2012 to 1.74% for the three months ended December 31, 2013, which had the effect of increasing interest income by $11,000.

For the year, interest and dividend income was $6,290,000 against $5,836,000 a year ago. Net interest income was $4,608,000 against $4,116,000 a year ago. Income before income taxes was $1,119,000 against $1,573,000 a year ago. Net income was $702,000 or $0.76 per diluted share against $981,000 or $1.10 per basic and diluted share a year ago. Tangible book value per share as on December 31, 2013 was $17.92 against $17.11 as on December 31, 2012. The decrease in net income was primarily the result of an increase in non-interest expense of $855,000, an increase of $78,000 in the provision for loan losses, and a decrease in non-interest income of $13,000, offset by an increase in net interest income of $492,000 and a decrease in the provision for income taxes of $175,000. The $492,000, or 12.0% increase in net interest income for the year ended December 31, 2013, over the comparable period in 2012 was driven by a $454,000, or 7.8% increase in interest income and a $38,000, or 2.2% decrease in interest expense. The increase in interest income was primarily due to a $14.0 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $82.4 million for the year ended December 31, 2012 to an average balance of $96.4 million for the year ended December 31, 2013, which had the effect of increasing interest income $924,000.