QNTO 10-Q Quarterly Report Sept. 30, 2025

QUAINT OAK BANCORP INC

10-Ks and 10-Qs

10-Q	Quarter ended Sept. 30, 2025
10-Q	Quarter ended June 30, 2025
10-Q	Quarter ended March 31, 2025
10-K	Fiscal year ended Dec. 31, 2024
10-Q	Quarter ended Sept. 30, 2024
10-Q	Quarter ended June 30, 2024
10-Q	Quarter ended March 31, 2024
10-K	Fiscal year ended Dec. 31, 2023
10-Q	Quarter ended Sept. 30, 2023
10-Q	Quarter ended June 30, 2023
10-Q	Quarter ended March 31, 2023
10-K	Fiscal year ended Dec. 31, 2022
10-Q	Quarter ended Sept. 30, 2022
10-Q	Quarter ended June 30, 2022
10-Q	Quarter ended March 31, 2022
10-K	Fiscal year ended Dec. 31, 2021
10-Q	Quarter ended Sept. 30, 2021
10-Q	Quarter ended June 30, 2021
10-Q	Quarter ended March 31, 2021
10-K	Fiscal year ended Dec. 31, 2020
10-Q	Quarter ended Sept. 30, 2020
10-Q	Quarter ended June 30, 2020
10-Q	Quarter ended March 31, 2020
10-K	Fiscal year ended Dec. 31, 2019
10-Q	Quarter ended Sept. 30, 2019
10-Q	Quarter ended June 30, 2019
10-Q	Quarter ended March 31, 2019
10-K	Fiscal year ended Dec. 31, 2018
10-Q	Quarter ended Sept. 30, 2018
10-Q	Quarter ended June 30, 2018
10-Q	Quarter ended March 31, 2018
10-K	Fiscal year ended Dec. 31, 2017
10-Q	Quarter ended Sept. 30, 2017
10-Q	Quarter ended June 30, 2017
10-Q	Quarter ended March 31, 2017
10-K	Fiscal year ended Dec. 31, 2016
10-Q	Quarter ended Sept. 30, 2016
10-Q	Quarter ended June 30, 2016
10-Q	Quarter ended March 31, 2016
10-K	Fiscal year ended Dec. 31, 2015
10-Q	Quarter ended Sept. 30, 2015
10-Q	Quarter ended June 30, 2015
10-Q	Quarter ended March 31, 2015
10-K	Fiscal year ended Dec. 31, 2014
10-Q	Quarter ended Sept. 30, 2014
10-Q	Quarter ended June 30, 2014
10-Q	Quarter ended March 31, 2014
10-K	Fiscal year ended Dec. 31, 2013
10-Q	Quarter ended Sept. 30, 2013
10-Q	Quarter ended June 30, 2013
10-Q	Quarter ended March 31, 2013
10-K	Fiscal year ended Dec. 31, 2012
10-Q	Quarter ended Sept. 30, 2012
10-Q	Quarter ended June 30, 2012
10-Q	Quarter ended March 31, 2012
10-K	Fiscal year ended Dec. 31, 2011
10-Q	Quarter ended Sept. 30, 2011
10-Q	Quarter ended June 30, 2011
10-Q	Quarter ended March 31, 2011
10-K	Fiscal year ended Dec. 31, 2010
10-Q	Quarter ended Sept. 30, 2010
10-Q	Quarter ended June 30, 2010
10-Q	Quarter ended March 31, 2010
10-K	Fiscal year ended Dec. 31, 2009

PROXIES

DEF 14A	Filed on May 14, 2025
DEF 14A	Filed on April 9, 2025
DEF 14A	Filed on May 8, 2024
DEF 14A	Filed on April 3, 2024
DEF 14A	Filed on May 10, 2023
DEF 14A	Filed on April 5, 2023
DEF 14A	Filed on May 11, 2022
DEF 14A	Filed on April 6, 2022
DEF 14A	Filed on April 7, 2021
DEF 14A	Filed on April 8, 2020
DEF 14A	Filed on April 5, 2019
DEF 14A	Filed on April 6, 2018
DEF 14A	Filed on April 7, 2017
DEF 14A	Filed on April 8, 2016
DEF 14A	Filed on April 10, 2015
DEF 14A	Filed on April 11, 2014
DEF 14A	Filed on April 8, 2013
DEF 14A	Filed on April 4, 2012
DEF 14A	Filed on April 11, 2011
DEF 14A	Filed on April 12, 2010

qnto20250930_10q.htm


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

September 30, 2025

OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission file number:

000-52694

QUAINT OAK BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Pennsylvania		35-2293957
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

501 Knowles Avenue , Southampton , Pennsylvania		18966
(Address of Principal Executive Offices)		(Zip Code)

( 215 ) 364-4059

(Registrant’s Telephone Number, Including Area Code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: None

Title of each Class	Trading Symbol(s)	Name of each exchange on which registered

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of November 10, 2025, 2,635,559 shares of the issuer’s common stock were issued and outstanding.

INDEX

PART I - FINANCIAL INFORMATION	Page
Item 1 - Financial Statements
Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 (Unaudited)	1
Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited)	2
Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited)	4
Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited)	5
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (Unaudited)	7
Notes to the Unaudited Consolidated Financial Statements	9
Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations	32

Item 3 - Quantitative and Qualitative Disclosures About Market Risk	46

Item 4 - Controls and Procedures	46

PART II - OTHER INFORMATION

Item 1 - Legal Proceedings	46

Item 1A - Risk Factors	47

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds	47

Item 3 - Defaults Upon Senior Securities	47

Item 4 - Mine Safety Disclosures	47

Item 5 - Other Information	47

Item 6 - Exhibits	48

SIGNATURES

ITEM 1. FINANCIAL STATEMENTS

Quaint Oak Bancorp, Inc.

Consolidated Balance Sheets (Unaudited)

	At September 30,			At December 31,
	2025			2024
	(In thousands, except share and per share data)
Assets
Due from banks, non-interest-bearing	$	967		$	345
Due from banks, interest-bearing		51,325			62,644
Cash and cash equivalents		52,292			62,989
Investment in interest-earning time deposits		912			912
Investment securities available for sale		1,071			1,666
Loans held for sale		54,508			64,281
Loans receivable, net of allowance for credit losses (2025 $ 6,492 ; 2024 $ 6,476 )		547,116			534,693
Accrued interest receivable		4,339			3,961
Investment in Federal Home Loan Bank stock, at cost		2,091			2,214
Bank-owned life insurance		4,542			4,447
Premises and equipment, net		1,587			1,626
Goodwill		515			515
Other intangible, net of accumulated amortization		40			77
Prepaid expenses and other assets		8,118			7,787
Total Assets	$	677,131		$	685,168

Liabilities and Stockholders ’ Equity
Liabilities
Deposits:
Non-interest bearing	$	76,134		$	59,783
Interest-bearing		478,060			493,469
Total deposits		554,194			553,252
Federal Home Loan Bank borrowings		45,000			47,855
Senior debt, net of unamortized costs		9,575			-
Subordinated debt		8,000			22,000
Accrued interest payable		786			937
Advances from borrowers for taxes and insurance		1,975			3,122
Accrued expenses and other liabilities		5,428			5,385
Total Liabilities		624,958			632,551

Stockholders ’ Equity
Preferred stock – $ 0.01 par value, 1,000,000 shares authorized; none issued or outstanding		-			-
Common stock – $ 0.01 par value; 9,000,000 shares authorized; 3,108,993 issued as of both September 30, 2025 and December 31, 2024; 2,636,079 and 2,626,535 outstanding at September 30, 2025 and December 31, 2024, respectively		31			31
Additional paid-in capital		23,123			22,976
Treasury stock, at cost: 472,914 and 482,458 shares at September 30, 2025 and December 31, 2024, respectively		( 3,542	)		( 3,588	)
Accumulated other comprehensive income		3			-
Retained earnings		32,558			33,198
Total Stockholders' Equity		52,173			52,617
Total Liabilities and Stockholders ’ Equity	$	677,131		$	685,168

See accompanying notes to the unaudited consolidated financial statements.

Quaint Oak Bancorp, Inc.

Consolidated Statements of Operations (Unaudited)

		For the Three Months Ended					For the Nine Months Ended
		September 30,					September 30,
		2025		2024			2025			2024
		(Unaudited)					(Unaudited)
Interest and Dividend Income
Interest on loans, including fees	$	9,808		$	9,895		$	29,026		$	30,445
Interest and dividends on time deposits, investment securities, interest-bearing deposits with others, and Federal Home Loan Bank stock		362			577			1,264			3,046
Total Interest and Dividend Income		10,170			10,472			30,290			33,491
Interest Expense
Interest on deposits		4,789			5,641			14,116			17,795
Interest on FHLB borrowings		536			94			1,669			503
Interest on senior debt		170			-			672			-
Interest on subordinated debt		281			489			790			1,461
Total Interest Expense		5,776			6,224			17,247			19,759
Net Interest Income		4,394			4,248			13,043			13,732
Provision for Credit Losses – Loans		433			143			1,223			1,227
(Recovery of) Provision for Credit Losses – Unfunded Commitments		( 8	)		( 20	)		80			( 9	)
Total Provision for Credit Losses		425			123			1,303			1,218
Net Interest Income after Provision for Credit Losses		3,969			4,125			11,740			12,514

Non-Interest Income
Mortgage banking, equipment lending and title abstract fees		289			237			715			627
Real estate sales commissions, net		-			-			-			20
Insurance commissions		196			198			577			526
Other fees and services charges		14			116			( 73	)		582
Net loan servicing income		-			2			5			5
Income from bank-owned life insurance		33			30			95			87
Net gain on sale of loans		950			503			3,052			1,998
Gain on the sale of SBA loans		266			124			1,084			251
Total Non-Interest Income		1,748			1,210			5,455			4,096

Non-Interest Expense
Salaries and employee benefits		3,993			3,483			11,285			10,818
Directors' fees and expenses		66			52			196			153
Occupancy and equipment		489			330			1,352			996
Data processing		436			321			1,277			894
Professional fees		134			26			531			323
FDIC deposit insurance assessment		131			158			387			494
Advertising		28			42			227			202
Amortization of other intangible		12			12			36			36
Other		439			500			1,514			1,368
Total Non-Interest Expense		5,728			4,924			16,805			15,284
(Loss) Income from Continuing Operations Before Income Taxes	$	( 11	)	$	411		$	390		$	1,326
Income Taxes		30			168			242			516
Net (Loss) Income from Continuing Operations	$	( 41	)	$	243		$	148		$	810
Income from Discontinued Operations		-			-			-			564
Income Taxes		-			-			-			158
Net Income from Discontinued Operations	$	-		$	-		$	-			406
Net (Loss) Income	$	( 41	)	$	243		$	148		$	1,216

See accompanying notes to the unaudited consolidated financial statements.

Quaint Oak Bancorp, Inc.

Consolidated Statements of Operations (Unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2025			2024		2025		2024
Per Common Share Data:	(Unaudited)					(Unaudited)
Earnings per share from continuing operations – basic	$	( 0.02	)	$	0.09	$	0.06	$	0.32
Earnings per share from discontinued operations – basic	$	-		$	-	$	-	$	0.15
Earnings per share, net – basic	$	( 0.02	)	$	0.09	$	0.06	$	0.47
Average shares outstanding – basic		2,635,983			2,631,048		2,631,227		2,560,993
Earnings per share from continuing operations – diluted	$	( 0.02	)	$	0.09	$	0.06	$	0.32
Earnings per share from discontinued operations – diluted	$	-		$	-	$	-	$	0.15
Earnings per share, net – diluted	$	( 0.02	)	$	0.09	$	0.06	$	0.47
Average shares outstanding - diluted		2,635,983			2,631,048		2,631,227		2,560,993
Book value per share, end of period	$	19.79		$	19.52	$	19.79	$	19.52
Shares outstanding, end of period		2,636,079			2,633,374		2,636,079		2,633,374

See accompanying notes to the unaudited consolidated financial statements.

Quaint Oak Bancorp, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(In thousands)
Net (Loss) Income from Continuing Operations	$	( 41	)	$	243		$	148		$	810

Other Comprehensive Income:
Unrealized gains on investment securities available-for-sale		1			4			4			14
Income tax effect		( 1	)		( 1	)		( 1	)		( 3	)
Other comprehensive income		-			3			3			11

Total Comprehensive (Loss) Income	$	( 41	)	$	246		$	151		$	821
Comprehensive Income from Discontinued Operations	$	-		$	-		$	-		$	406
Comprehensive (Loss) Income Attributable to Quaint Oak Bancorp, Inc.	$	( 41	)	$	246		$	151		$	1,227

See accompanying notes to the unaudited consolidated financial statements.

Quaint Oak Bancorp, Inc.

Consolidated Statements of Stockholders ’ Equity (Unaudited)

For the Three Months Ended September 30, 2025
	Common Stock
	Number of Shares Outstanding			Amount		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Income		Retained Earnings			Total Stockholders’ Equity
	(In thousands, except share and per share data)
BALANCE – JUNE 30, 2025		2,635,866		$	31	$	23,057	$	( 3,538	)	$	3	$	32,704		$	52,257

Treasury stock purchase		( 1,301	)						( 14	)							( 14	)

Reissuance of treasury stock under 401(k) plan		1,514					5		10								15

Stock based compensation expense							61										61

Cash dividends declared ( $ 0.04 per share)														( 105	)		( 105		)

Net loss														( 41	)		( 41		)

BALANCE – SEPTEMBER 30, 2025		2,636,079		$	31	$	23,123	$	( 3,542	)	$	3	$	32,558		$	52,173

For the Three Months Ended September 30, 2024
	Common Stock
	Number of Shares Outstanding			Amount		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Stockholders’ Equity
	(In thousands, except share and per share data)
BALANCE – JUNE 30, 2024		2,629,289		$	31	$	22,828	$	( 3,527	)	$	( 2	)	$	32,060		$	51,390

Treasury stock purchase		( 333	)						( 4	)								( 4	)

Reissuance of treasury stock under 401(k) Plan		4,418					16		29									45

Stock based compensation expense							60											60

Cash dividends declared ($ 0.13 per share)															( 342	)		( 342	)

Net income															243			243

Other comprehensive income, net												3						3

BALANCE – SEPTEMBER 30, 2024		2,633,374		$	31	$	22,904	$	( 3,502	)	$	1		$	31,961		$	51,395

See accompanying notes to the unaudited consolidated financial statements.

Quaint Oak Bancorp, Inc.

Consolidated Statements of Stockholders ’ Equity (Unaudited)

For the Nine Months Ended September 30, 2025
	Common Stock
	Number of Shares Outstanding			Amount		Additional Paid-in Capital			Treasury Stock			Accumulated Other Comprehensive Income		Retained Earnings			Total Stockholders’ Equity
				(In thousands, except share and per share data)
BALANCE – DECEMBER 31, 2024		2,626,535		$	31	$	22,976		$	( 3,588	)	$	-	$	33,198		$	52,617

Treasury stock purchase		( 4,221	)							( 45	)							( 45	)

Reissuance of treasury stock under 401(k) Plan		5,265					21			35								56

Reissuance of treasury stock under stock incentive plan		8,500					( 56	)		56								-

Stock based compensation expense							182											182

Cash dividends declared ($ 0.30 per share)															( 788	)		( 788	)

Net income															148			148

Other comprehensive income													3					3

BALANCE – SEPTEMBER 30, 2025		2,636,079		$	31	$	23,123		$	( 3,542	)	$	3	$	32,558		$	52,173

For the Nine Months Ended September 30, 2024
	Common Stock
	Number of Shares Outstanding			Amount		Additional Paid-in Capital			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Stockholders’ Equity
	(In thousands, except share and per share data)
BALANCE – DECEMBER 31, 2023		2,407,048		$	29	$	20,299		$	( 3,568	)	$	( 10	)	$	31,741		$	48,491

Treasury stock purchase		( 4,575	)							( 48	)								( 48	)

Issued from authorized and unallocated		213,318			2		2,446												2,448

Reissuance of treasury stock under 401(k) Plan		8,583					35			56									91

Reissuance of treasury stock under stock incentive plan		9,000					( 58	)		58

Stock based compensation expense							182												182

Cash dividends declared ($ 0.39 per share)																( 996	)		( 996	)

Net income																1,216			1,216

Other comprehensive income													11						11

BALANCE – SEPTEMBER 30, 2024		2,633,374		$	31	$	22,904		$	( 3,502	)	$	1		$	31,961		$	51,395

See accompanying notes to the unaudited consolidated financial statements.

Quaint Oak Bancorp, Inc.

Consolidated Statements of Cash Flows (Unaudited)

	For the Nine Months
	Ended September 30,
	2025			2024
	(In Thousands)
Cash Flows from Operating Activities
Net income from continuing operations	$	148		$	810
Net income from discontinued operations		-			406
Net income	$	148		$	1,216
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		1,303			1,218
Depreciation expense		527			433
Amortization, net		323			44
Accretion of deferred loan fees and costs, net		( 151	)		( 411	)
Stock-based compensation expense		182			182
Net gain sale of loans		( 3,052	)		( 1,998	)
Loans held for sale-originations		( 129,613	)		( 99,590	)
Loans held for sale-proceeds		142,438			95,128
Gain on the sale of SBA loans		( 1,084	)		( 251	)
Increase in the cash surrender value of bank-owned life insurance		( 95	)		( 87	)
Changes in assets and liabilities which provided (used) cash:
Accrued interest receivable		( 379	)		( 899	)
Prepaid expenses and other assets		( 513	)		21
Accrued interest payable		( 151	)		( 34	)
Accrued expenses and other liabilities		44			116
Net Cash Provided by (Used in) Operating Activities of Continuing Operations		9,927			( 4,912	)
Net Cash Provided by Operating Activities of Discontinued Operations		-			32,350
Net Cash Provided by Operating Activities		9,927			27,438
Cash Flows from Investing Activities
Redemption of interest-earning time deposits		-			1,000
Principal repayments of investment securities available for sale		597			514
Net decrease (increase) in loans receivable		( 12,491	)		8,980
Proceeds from the sale of Oakmont Capital Holdings, LLC		-			4,300
Purchase of Federal Home Loan Bank stock		( 4,206	)		( 2,627	)
Redemption of Federal Home Loan Bank stock		4,329			2,247
Purchase of premises and equipment		( 488	)		( 708	)
Net Cash (Used in) Provided by Investing Activities		( 12,259	)		13,706
Cash Flows from Financing Activities
Net decrease in demand deposits, money markets, and savings accounts		( 55,959	)		( 65,928	)
Net increase in certificate accounts		56,901			17,648
Decrease in advances from borrowers for taxes and insurance		( 1,147	)		( 856	)
Net (decrease) increase in Federal Home Loan Bank borrowings		( 2,855	)		9,833
Net repayments from subordinated debt		( 14,103	)		-
Net proceeds from senior debt		9,575			-
Dividends paid		( 788	)		( 996	)
Proceeds from the reissuance of treasury stock under 401(k) plan		56			91
Proceeds from shares issued from authorized and unallocated		-			2,448
Acquisition of treasury stock		( 45	)		( 48	)
Net Cash Used in Financing Activities	$	( 8,365	)	$	( 37,808	)
Net (Decrease) Increase in Cash and Cash Equivalents		( 10,697	)		3,336
Cash and Cash Equivalents – Beginning of Year		62,989			58,006
Cash and Cash Equivalents – End of Year	$	52,292		$	61,342

See accompanying notes to the unaudited consolidated financial statements.

Quaint Oak Bancorp, Inc.

Consolidated Statements of Cash Flows (Unaudited)

	For the Nine Months
	Ended September 30,
	2025		2024
	(In Thousands)
Supplementary Disclosure of Cash Flow and Non-Cash Information:
Cash payments for interest	$	17,398	$	19,792
Cash payments for income taxes	$	540	$	630
Transfer of loans from Oakmont Capital Holdings, LLC	$	-	$	4,388
Transfer of loans held for investment to loans held for sale	$	49,502	$	-

See accompanying notes to the unaudited consolidated financial statements.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 1 – Financial Statement Presentation and Significant Accounting Policies

Basis of Financial Presentation. The consolidated financial statements include the accounts of Quaint Oak Bancorp, Inc., a Pennsylvania chartered corporation (the “Company” or “Quaint Oak Bancorp”) and its wholly owned subsidiary, Quaint Oak Bank, a Pennsylvania chartered stock savings bank (the “Bank”), along with its wholly owned subsidiaries. At September 30, 2025, the Bank has five wholly-owned subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Abstract, LLC, QOB Properties, LLC, Quaint Oak Insurance Agency, LLC, and Oakmont Commercial, LLC, each a Pennsylvania limited liability company. Quaint Oak Mortgage offers mortgage banking in the Lehigh Valley, Delaware Valley and Philadelphia County regions of Pennsylvania and began operations in February, 2019. Quaint Oak Abstract offers title abstract services primarily in the Lehigh Valley region of Pennsylvania and began operation in July 2009. QOB Properties, LLC began operations in July 2012 and holds Bank properties acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure. Quaint Oak Insurance Agency, LLC began operations in August 2016 and provides a broad range of personal and commercial insurance coverage solutions. Oakmont Commercial, LLC was formed in October 2021 and operates as a nationwide specialty commercial real estate financing company. On March 29, 2024, Quaint Oak Bank sold its 51 % interest in Oakmont Capital Holdings, LLC (“OCH”), a multi-state equipment finance company based in West Chester, Pennsylvania. The decision was based on a number of strategic priorities and other factors. As a result of this action, Quaint Oak Bancorp classified the operations of OCH as discontinued operations under ASC 205 - 20 and ceased all equipment loan originations. Also on March 29, 2024, the Company discontinued the operations of Quaint Oak Real Estate, LLC (“Quaint Oak Real Estate”), a 100% wholly owned subsidiary of the Bank. Quaint Oak Real Estate was engaged in the real estate brokerage business. All significant intercompany balances and transactions have been eliminated.

The Bank is subject to regulation by the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation. Pursuant to the Bank’s election under Section 10 (l) of the Home Owners’ Loan Act, the Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. The market area served by the Bank is principally Bucks, Montgomery and Philadelphia Counties in Pennsylvania and the Lehigh Valley area in Pennsylvania, although the Bank has customers in all fifty states, the District of Columbia and Puerto Rico. The Bank has three regional offices located in the Delaware Valley, Lehigh Valley and Philadelphia markets. The principal deposit products offered by the Bank are money market accounts, certificates of deposit, non-interest bearing checking accounts for businesses and consumers, and savings accounts. The principal loan products offered by the Bank are fixed and adjustable rate residential and commercial mortgages, construction loans, commercial business loans, home equity loans, and lines of credit.

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) for interim information and with the instructions to Form 10 -Q, as applicable to a smaller reporting company. Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements.

The foregoing consolidated financial statements are unaudited; but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation thereof. The balances as of December 31, 2024 have been derived from the audited financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in Quaint Oak Bancorp’s 2024 Annual Report on Form 10 -K. The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 1 – Financial Statement Presentation and Significant Accounting Policies (Continued)

Use of Estimates in the Preparation of Financial Statements. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Company’s most significant estimates are the determination of the allowance for credit losses and the valuation of deferred tax assets.

Critical Accounting Policies. The Company’s critical accounting policies involving significant judgments and assumptions used in the preparation of the consolidated financial statements as of September 30, 2025 have remained unchanged from the disclosures presented in our Annual Report on Form 10 -K.

Accounting Pronouncements Not Yet Adopted . In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures, which provides for improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This guidance is effective for public business entities for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this new guidance on its financial statements.

Reclassifications. Certain items in the prior period consolidated financial statements have been reclassified to conform to the presentation in the current period consolidated financial statements. Such reclassifications did not have a material impact on the presentation of the overall financial statements. The reclassifications had no effect on net income or stockholders’ equity.

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 Statements of Operations and Consolidated Statements of Cash Flows present discontinued operations for the current period and retrospectively for prior periods.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 2 – Discontinued Operations (Continued)

The following presents operating results of the discontinued operations OCH for the nine months ended September 30, 2025 and September 30, 2024 ( in thousands):

	For the Nine Months Ended
	September 30,
	2025		2024
	(In thousands, except for share data)
Interest and Dividend Income
Interest on loans, including fees	$	-	$	70
Interest and dividends on time deposits, investment securities, interest-bearing deposits with others, and Federal Home Loan Bank stock		-		-
Total Interest and Dividend Income		-		70

Interest Expense
Interest on other borrowings		-		295
Total Interest Expense		-		295
Net Interest Loss		-		( 225	)

Non-Interest Income
Mortgage banking, equipment lending and title abstract fees		-		404
Other fees and services charges		-		197
Net loan servicing income		-		726
Net gain on sale of loans		-		366
Gain on sale of OCH		-		1,378
Total Non-Interest Income		-		3,071

Non-Interest Expense
Salaries and employee benefits		-		1,681
Occupancy and equipment		-		219
Professional fees		-		31
Advertising		-		146
Other		-		987
Total Non-Interest Expense		-		3,064
Total net loss from discontinued operations	$	-	$	( 218	)
Income attributable to non-controlling interest		-		782
Net income from discontinued operations	$	-	$	564

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 3 – Earnings Per Share

Earnings per share (“EPS”) consists of two separate components, basic EPS and diluted EPS. Basic EPS is computed based on the weighted average number of shares of common stock outstanding for each period presented. Diluted EPS is calculated based on the weighted average number of shares of common stock outstanding plus dilutive common stock equivalents (“CSEs”). CSEs consist of shares that are assumed to be purchased with the proceeds from the exercise of stock options, as well as unvested restricted stock (RRP) shares. Common stock equivalents which are considered antidilutive are not included for the purposes of this calculation. For the three and nine months ended September 30, 2025 and September 30, 2024, all unvested restricted stock program awards and outstanding stock options representing shares were anti-dilutive.

The following table sets forth the composition of the weighted average shares (denominator) used in the basic and dilutive earnings per share computations.

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2025			2024		2025		2024
Net (Loss) Income Attributable to Quaint Oak Bancorp, Inc.	$	( 41,000	)	$	243,000	$	148,000	$	1,216,000

Weighted average shares outstanding – basic		2,635,983			2,631,048		2,631,227		2,560,993
Effect of dilutive common stock equivalents		-			-		-		-
Adjusted weighted average shares outstanding – diluted		2,635,983			2,631,048		2,631,227		2,560,993

Basic earnings per share from continuing operations	$	( 0.02	)	$	0.09	$	0.06	$	0.32
Basic earnings per share from discontinued operations	$	-		$	-	$	-	$	0.15
Basic earnings per share, net	$	( 0.02	)	$	0.09	$	0.06	$	0.47
Diluted earnings per share from continuing operations	$	( 0.02	)	$	0.09	$	0.06	$	0.32
Diluted earnings per share from discontinued operations	$	-		$	-	$	-	$	0.15
Diluted earnings per share, net	$	( 0.02	)	$	0.09	$	0.06	$	0.47

Note 4 – Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and nine months ended September 30, 2025 and 2024 (in thousands):

	Unrealized Gains (Losses) on Investment Securities Available for Sale (1)
	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2025		2024			2025		2024
Balance at the beginning of the period	$	3	$	( 2	)	$	-	$	( 10	)
Other comprehensive income		-		3			3		11
Balance at the end of the period	$	3	$	1		$	3	$	1

_________________

( 1 ) All amounts are net of tax. Amounts in parentheses indicate debits.

There were no reclassifications from accumulated other comprehensive income by component for the three or nine months ended September 30, 2025 and 2024.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 5 – Investment Securities Available for Sale

The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale at September 30, 2025 and December 31, 2024 are summarized below (in thousands):

	September 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale:
Mortgage-backed securities:
Government National Mortgage Association securities	$	1,035	$	2	$	-	$	1,037
Federal National Mortgage Association securities		33		1		-		34
Total available-for-sale-securities	$	1,068	$	3	$	-	$	1,071

	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale:
Mortgage-backed securities:
Government National Mortgage Association securities	$	1,631	$	1	$	( 2	)	$	1,630
Federal National Mortgage Association securities		35		1		-			36
Total available-for-sale-securities	$	1,666	$	2	$	( 2	)	$	1,666

The amortized cost and fair value of mortgage-backed securities at September 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):

	Available for Sale
	Amortized Cost		Fair Value
Due after ten years	$	1,068	$	1,071
Total	$	1,068	$	1,071

There were no securities in a loss position at September 30, 2025.

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2024 ( in thousands):

	December 31, 2024
		Less than Twelve Months				Twelve Months or Greater					Total
	Number of Securities	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Government National Mortgage Association securities	8	$	376	$	-	$	718	$	( 2	)	$	1,094	$	( 2	)

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 5 – Investment Securities Available for Sale (Continued)

The Company’s mortgage-backed securities have contractual terms that generally do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. The change in fair value of these securities is attributable to changes in interest rates and not credit quality, and the Company does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost. Therefore, the Company does not have an allowance for credit losses for these investments as of September 30, 2025.

There were no credit losses recognized during the three and nine months ended September 30, 2025 and 2024. There were no sales during the three and nine months ended September 30, 2025 and 2024.

Note 6 - Loans Receivable, Net and Allowance for Credit Losses

The composition of net loans receivable is as follows (in thousands):

	September 30, 2025			December 31, 2024
Real estate loans:
One-to-four family residential:
Owner occupied	$	43,078		$	25,927
Non-owner occupied		31,447			33,573
Total one-to-four family residential		74,525			59,500
Multi-family (five or more) residential		41,121			45,412
Commercial real estate		307,489			297,627
Construction		23,484			18,320
Home equity		5,412			5,739
Total real estate loans		452,031			426,598

Commercial business		100,969			114,921
Other consumer		37			46
Total Loans		553,037			541,565

Deferred loan (fees) and costs, net		571			( 396	)
Allowance for credit losses		( 6,492	)		( 6,476	)
Net Loans	$	547,116		$	534,693

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - Loans Receivable, Net and Allowance for Credit Losses (Continued)

The following table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of September 30, 2025 ( in thousands):

	Term Loans Amortized Cost by Origination Year
As of September 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total
One-to-four family residential owner occupied
Risk rating
Pass	$	19,244	$	7,147	$	5,137	$	4,608	$	2,731	$	3,912	$	-	$	42,779
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		299		-		299
Doubtful		-		-		-		-		-		-		-		-
Total one-to-four family residential owner occupied	$	19,244	$	7,147	$	5,137	$	4,608	$	2,731	$	4,211	$	-	$	43,078
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

One-to-four family residential non-owner occupied
Risk rating
Pass	$	630	$	1,285	$	1,899	$	5,912	$	11,654	$	9,970	$	-	$	31,350
Special mention		-		-		-		-		-		97		-		97
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total one-to-four family residential non-owner occupied	$	630	$	1,285	$	1,899	$	5,912	$	11,654	$	10,067		-	$	31,447
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Multi-family residential
Risk rating
Pass	$	-	$	5,257	$	909	$	12,462	$	10,145	$	12,348	$	-	$	41,121
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total multi-family residential	$	-	$	5,257	$	909	$	12,462	$	10,145	$	12,348	$	-	$	41,121
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial real estate
Risk rating
Pass	$	26,904	$	34,358	$	41,234	$	75,441	$	52,591	$	59,477	$	9,643	$	299,648
Special mention		-		124		-		678		-		3,443		-		4,245
Substandard		-		919		1,115		1,124		264		-		174		3,596
Doubtful		-		-		-		-		-		-		-		-
Total commercial real estate	$	26,904	$	35,401	$	42,349	$	77,243	$	52,855	$	62,920	$	9,817	$	307,489
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Risk rating
Pass	$	16,426	$	5,641	$	102	$	1,218	$	-	$	-	$	-	$	23,387
Special mention		-		-		97		-		-		-		-		97
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total construction	$	16,426	$	5,641	$	199	$	1,218	$	-	$	-	$	-	$	23,484
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - Loans Receivable, Net and Allowance for Credit Losses (Continued)

	Term Loans Amortized Cost by Origination Year
As of September 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total
Home equity
Risk rating
Pass	$	-	$	524	$	495	$	-	$	108	$	143	$	4,142	$	5,412
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total home equity	$	-	$	524	$	495	$	-	$	108	$	143	$	4,142	$	5,412
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial business
Risk rating
Pass	$	5,005	$	14,529	$	2,792	$	31,365	$	11,614	$	2,659	$	22,605	$	90,569
Special mention		-		538		435		763		1,065		1,037		463		4,301
Substandard		-		1,245		-		2,035		2,123		390		306		6,099
Doubtful		-		-		-		-		-		-		-		-
Total commercial business	$	5,005	$	16,312	$	3,227	$	34,163	$	14,802	$	4,086	$	23,374	$	100,969
Current period gross charge-offs	$	-	$	799	$	-	$	473	$	-	$	29	$	-	$	1,301

Other consumer
Risk rating
Pass	$	-	$	-	$	37	$	-	$	-	$	-	$	-	$	37
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total other consumer	$	-	$	-	$	37	$	-	$	-	$	-	$	-	$	37
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk rating
Pass	$	68,209	$	68,741	$	52,605	$	131,006	$	88,843	$	88,509	$	36,390	$	534,303
Special mention		-		662		532		1,441		1,065		4,577		463		8,740
Substandard		-		2,164		1,115		3,159		2,387		689		480		9,994
Doubtful		-		-		-		-		-		-		-		-
Total	$	68,209	$	71,567	$	54,252	$	135,606	$	92,295	$	93,775	$	37,333	$	553,037
Current period gross charge-offs	$	-	$	799	$	-	$	473	$	-	$	29	$	-	$	1,301

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - Loans Receivable, Net and Allowance for Credit Losses (Continued)

The following table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of December 31, 2024 ( in thousands):

	Term Loans Amortized Cost by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
One-to-four family residential owner occupied
Risk rating
Pass	$	7,290	$	5,508	$	5,078	$	3,719	$	1,632	$	2,401	$	-	$	25,628
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		299		-		-		-		-		299
Doubtful		-		-		-		-		-		-		-		-
Total one-to-four family residential owner occupied	$	7,290	$	5,508	$	5,377	$	3,719	$	1,632	$	2,401	$	-	$	25,927
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

One-to-four family residential non- owner occupied
Risk rating
Pass	$	1,363	$	1,920	$	6,049	$	11,949	$	1,835	$	10,457	$	-	$	33,573
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total one-to-four family residential non-owner occupied	$	1,363	$	1,920	$	6,049	$	11,949	$	1,835	$	10,457		-	$	33,573
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Multi-family residential
Risk rating
Pass	$	5,274	$	923	$	12,713	$	13,087	$	4,068	$	9,347	$	-	$	45,412
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total multi-family residential	$	5,274	$	923	$	12,713	$	13,087	$	4,068	$	9,347	$	-	$	45,412
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial real estate
Risk rating
Pass	$	35,478	$	47,329	$	80,933	$	57,927	$	22,637	$	46,912	$	4,394	$	295,610
Special mention		-		746		333		116		-		-		50		1,245
Substandard		-		-		772		-		-		-		-		772
Doubtful		-		-		-		-		-		-		-		-
Total commercial real estate	$	35,478	$	48,075	$	82,038	$	58,043	$	22,637	$	46,912	$	4,444	$	297,627
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Risk rating
Pass	$	4,498	$	3,748	$	5,546	$	4,113	$	-	$	-	$	-	$	17,905
Special mention		-		415		-		-		-		-		-		415
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total construction	$	4,498	$	4,163	$	5,546	$	4,113	$	-	$	-	$	-	$	18,320
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	187	$	-	$	187

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 – Loans Receivable, Net and Allowance for Credit Losses (Continued)

	Term Loans Amortized Cost by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Home equity
Risk rating
Pass	$	529	$	364	$	-	$	114	$	-	$	169	$	4,563	$	5,739
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total home equity	$	529	$	364	$	-	$	114	$	-	$	169	$	4,563	$	5,739
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial business
Risk rating
Pass	$	16,655	$	4,056	$	48,619	$	18,554	$	3,205	$	1,826	$	17,854	$	110,769
Special mention		-		-		-		-		574		-		100		674
Substandard		296		-		702		2,387		33		-		60		3,478
Doubtful		-		-		-		-		-		-		-		-
Total commercial business	$	16,951	$	4,056	$	49,321	$	20,941	$	3,812	$	1,826	$	18,014	$	114,921
Current period gross charge-offs	$	388	$	-	$	1,167	$	56	$	-	$	-	$	-	$	1,611

Other consumer
Risk rating
Pass	$	46	$	-	$	-	$	-	$	-	$	-	$	-	$	46
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total other consumer	$	46	$	-	$	-	$	-	$	-	$	-	$	-	$	46
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk rating
Pass	$	71,133	$	63,848	$	158,938	$	109,463	$	33,377	$	71,112	$	26,811	$	534,682
Special mention		-		1,161		333		116		574		-		150		2,334
Substandard		296		-		1,773		2,387		33		-		60		4,549
Doubtful		-		-		-		-		-		-		-		-
Total	$	71,429	$	65,009	$	161,044	$	111,966	$	33,984	$	71,112	$	27,021	$	541,565
Current period gross charge-offs	$	388	$	-	$	1,167	$	56	$	-	$	187	$	-	$	1,798

The following tables present non-performing loans by classes of the loan portfolio as of September 30, 2025 and December 31, 2024 ( in thousands):

	September 30, 2025
	Non-accrual loans
	With a Related Allowance		Without a Related Allowance		Total		90 Days or More Past Due and Accruing ⁽¹⁾		Total Non-Performing
One-to-four family residential owner-occupied	$	-	$	299	$	299	$	390	$	689
Commercial real estate		-		1,501		1,501		1,170		2,671
Commercial business		1,005		1,425		2,430		539		2,969
Total	$	1,005	$	3,225	$	4,230	$	2,099	$	6,329

__________________________

( 1 )

These loans are well secured and in the process of collection.

As part of the discontinued operations of OCH, the Bank retained approximately 60 commercial business loans totaling $ 4.4 million, which were classified as non-accrual. As of September 30, 2025, the value of these total $ 860,000 , made up of approximately 24 loans. The Bank continues to monitor these loans for collectability.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - Loans Receivable, Net and Allowance for Credit Losses (Continued)

	December 31, 2024
	Non-accrual loans
	With a Related Allowance		Without a Related Allowance		Total		90 Days or More Past Due and Accruing		Total Non-Performing
One-to-four family residential owner occupied	$	-	$	299	$	299	$	395	$	694
Commercial real estate		-		1,519		1,519		167		1,686
Commercial business		1,097		2,680		3,777		164		3,941
Total	$	1,097	$	4,498	$	5,595	$	726	$	6,321

For the three and nine months ended September 30, 2025 and September 30, 2024 there was no interest income recognized on non-accrual loans on a cash basis. There was $ 54,000 and $ 346,000 of interest income foregone on non-accrual loans for the three and nine months ended September 30, 2025, and $ 124,000 and $ 279,000 for the three and nine months ended September 30, 2024.

Occasionally, the Bank modifies loans to borrowers in financial distress by providing principal forgiveness and term extensions. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Bank provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.

As of September 30, 2025, there was one commercial business loan with an amortized cost of $ 34,000 which was granted a term extension resulting in a change in the maturity date, from August 2027 to February 2030 in addition to principal forgiveness of $ 2,000 . This loan represented 0.01 % of loans receivable, net.

Following is a summary, by loan portfolio class, of changes in the allowance for credit losses for the three and nine months ended September 30, 2025 ( in thousands):

	September 30, 2025
	1-4 Family Residential Owner Occupied		1-4 Family Residential Non-Owner Occupied			Multi-Family Residential			Commercial Real Estate		Construction		Home Equity			Commercial Business and Other Consumer			Total
For the Three Months Ended September 30, 2025
Allowance for credit losses:
Beginning balance	$	270	$	168		$	311		$	2,364	$	403	$	75		$	2,735		$	6,326
Charge-offs		-		-			-			-		-		-			( 278	)		( 278	)
Recoveries		-		-			-			-		-		-			11			11
Provision		45		( 4	)		( 8	)		134		86		( 21	)		201			433
Ending balance	$	315	$	164		$	303		$	2,498	$	489	$	54		$	2,669		$	6,492

For the Nine Months Ended September 30, 2025
Allowance for credit losses:
Beginning balance	$	177	$	178		$	442		$	2,337	$	156	$	56		$	3,130		$	6,476
Charge-offs		-		-			-			-		-		-			( 1,301	)		( 1,301	)
Recoveries		-		-			-			-		-		-			96			96
Provision		138		( 14	)		( 139	)		161		333		( 2	)		744			1,221
Ending balance	$	315	$	164		$	303		$	2,498	$	489	$	54		$	2,669		$	6,492

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - Loans Receivable, Net and Allowance for Credit Losses (Continued)

The Bank allocated decreased allowance for credit loss provisions to the multi-family residential loan portfolio classes for the three and nine months ended September 30, 2025, due primarily to changes in quantitative factors and qualitative factors associated with the current economic environment in this portfolio class. The Bank allocated increased allowance for credit loss provisions to the commercial real estate loan portfolio class for the three and nine months ended September 30, 2025, due primarily to changes in qualitative and quantitative factors associated with the current economic environment in this portfolio class. The Bank allocated increased allowance for credit loss provisions to the construction loan portfolio classes for the three and nine months ended September 30, 2025, due primarily to changes in qualitative factors associated with the current economic environment in this portfolio class. The Bank allocated increased allowance for credit loss provisions to the commercial business loan portfolio class for the three and nine months ended September 30, 2025, due primarily to changes in qualitative factors associated with the current economic environment in this portfolio class.

Following is a summary, by loan portfolio class, of changes in the allowance for credit losses for the three and nine months ended September 30, 2024 ( in thousands):

	September 30, 2024
For the Three Months Ended September 30, 2024	1-4 Family Residential Owner Occupied		1-4 Family Residential Non-Owner Occupied			Multi-Family Residential		Commercial Real Estate			Construction			Home Equity			Commercial Business and Other Consumer			Total
Allowance for credit losses:
Beginning balance	$	166	$	210		$	427	$	2,881		$	563		$	66		$	3,191		$	7,504
Charge-offs		-		-			-		-			-			-			( 114	)		( 114	)
Recoveries		-		-			-		-			-			-			3			3
Provision		13		( 4	)		374		( 112	)		( 104	)		( 3	)		( 164	)		-
Ending balance	$	179	$	206		$	801	$	2,769		$	459		$	63		$	2,916		$	7,393

For the Nine Months Ended September 30, 2024
Allowance for credit losses
Beginning balance	$	153	$	219		$	420	$	2,784		$	583		$	61		$	2,538		$	6,758
Charge-offs		-		-			-		-			-			-			( 452	)		( 452	)
Recoveries		-		-			-		-			-			-			3			3
Provision		26		( 13	)		381		( 15	)		( 124	)		2			827			1,084
Ending balance	$	179	$	206		$	801	$	2,769		$	459		$	63		$	2,916		$	7,393

The Bank allocated decreased allowance for credit loss provisions to the commercial real estate loan portfolio classes for the three and nine months ended September 30, 2024, due primarily to changes in qualitative factors associated with the current economic environment in this portfolio class. The Bank allocated decreased allowance for credit loss provisions to the construction loan portfolio class for the three and nine months ended September 30, 2024, due primarily to decrease in loan balances and changes in qualitative factors associated with the current economic environment in this portfolio class. The Bank allocated increased allowance for credit loss provisions to the multi-family residential loan portfolio classes for the three and nine months ended September 30, 2024, due primarily to changes in qualitative factors associated with the current economic environment in this portfolio class. The Bank allocated increased allowance for credit loss provisions to the commercial business loan portfolio classes for the nine months ended September 30, 2024, due primarily to changes in qualitative factors in this portfolio class. The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - Loans Receivable, Net and Allowance for Credit Losses (Continued)

The following tables present the classes of the loan portfolio summarized by the past due status as of September 30, 2025 and December 31, 2024 ( in thousands):

	September 30, 2025
	30-89 Days Past Due		90 Days or More Past Due		Current		Total Loans Receivable
One-to-four family residential owner occupied	$	663	$	689	$	41,726	$	43,078
One-to-four family residential non-owner occupied		404		-		31,043		31,447
Multi-family residential		1,870		-		39,251		41,121
Commercial real estate		7,563		2,671		297,255		307,489
Construction		97		-		23,387		23,484
Home equity		-		-		5,412		5,412
Commercial business		1,318		2,969		96,682		100,969
Other consumer		-		-		37		37
Total	$	11,915	$	6,329	$	534,793	$	553,037

	December 31, 2024
	30-89 Days Past Due		90 Days or More Past Due		Current		Total Loans Receivable
One-to-four family residential owner occupied	$	209	$	694	$	25,024	$	25,927
One-to-four family residential non-owner occupied		569		-		33,004		33,573
Multi-family residential		85		-		45,327		45,412
Commercial real estate		10,063		1,686		285,878		297,627
Construction		4,528		-		13,792		18,320
Home equity		35		-		5,704		5,739
Commercial business		873		3,941		110,107		114,921
Other consumer		-		-		46		46
Total	$	16,362	$	6,321	$	518,882	$	541,565

For the delinquent loans in our portfolio, we have considered our ability to collect the past due interest, as well as the principal balance of the loan, in order to determine whether specific loans should be placed on non-accrual status. In cases where our evaluations have determined that the principal and interest balances are collectible, we have continued to accrue interest.

As of September 30, 2025, the Company has initiated formal foreclosure proceedings on $699,000 of one -to- four family residential owner occupied loans and commercial real estate loans, which have not yet been transferred into foreclosed assets.

Note 7 – Goodwill and Other Intangible, Net

On August 1, 2016, Quaint Oak Insurance Agency, LLC began operations by acquiring the renewal rights to a book of business produced and serviced by an independent insurance agency located in New Britain, Pennsylvania, that provides a broad range of personal and commercial insurance coverage solutions. The Company paid $ 1.0 million for these rights. Based on a valuation, $ 515,000 of the purchase price was determined to be goodwill and $ 485,000 was determined to be related to the renewal rights to the book of business and deemed to be an other intangible asset. This other intangible asset is being amortized over a ten year period based upon the annual retention rate of the book of business. The balance of other intangible asset at September 30, 2025 and 2024 was $ 40,000 , and $ 89,000 , respectively, which is net of accumulated amortization of $ 445,000 and $ 396,000 , respectively. Amortization expense for both the three and nine months ended September 30, 2025 and 2024 amounted to approximately $ 12,000 and $ 36,000 , respectively.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 8 – Deposits

Deposits consist of the following classifications (in thousands):

	September 30, 2025		December 31, 2024
Non-interest bearing checking accounts	$	61,133	$	59,783
Interest bearing checking accounts ⁽¹⁾		40,860		47,802
Savings accounts		729		492
Money market accounts ⁽²⁾		111,681		162,285
Certificates of deposit		339,791		282,890
Total deposits	$	554,194	$	553,252

_______________________________

( 1 )

The Company has identified five interest bearing brokered checking account deposit customers that accounted for approximately 7.4 % of total deposits at September 30, 2025, and one major interest bearing checking account deposit customer, a different customer than the brokered checking account deposit customer, that accounted for approximately 8.6 % of total deposits at December 31, 2024. At September 30, 2025, the outstanding balance of the five deposit customer’s interest bearing brokered checking account totaled approximately $ 40.9 million. At December 31, 2024, the outstanding balance of the major deposit customer’s interest bearing checking account totaled approximately $ 47.8 million.

( 2 )

The Company has identified one major money market deposit customer, a separate customer than the interest bearing checking account deposit customer referred to above in footnote ( 1 ), that accounted for approximately 6.3 % and 18.1 % of total deposits at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025 and December 31, 2024, the combined outstanding balances of the major deposit customer’s money market accounts totaled approximately $ 35.0 million and $ 100.0 million, respectively.

Note 9 – Borrowings

Federal Home Loan Bank (“FHLB”) advances consist of the following at September 30, 2025 and December 31, 2024 ( in thousands):

	September 30, 2025					December 31, 2024
	Amount		Weighted Interest Rate			Amount		Weighted Interest Rate
FHLB Borrowings	$	45,000		4.69	%	$	47,855		4.50	%

The following table presents the balance and unamortized issuance costs of the subordinated debt and senior debt at September 30, 2025 are as follows (in thousands):

	Principal		Unamortized Debt Issuance Costs		Net
6.5 % subordinated notes, due December 31, 2028	$	8,000	$	-	$	8,000
11.0 % senior notes, due March 1, 2028	$	9,750	$	414	$	9,336
11.0 % senior notes, due March 1, 2028	$	250	$	11	$	239

The balance of senior debt, net of unamortized debt issuance costs, was $ 9.6 million at September 30, 2025.

The balance of subordinated debt was $ 8.0 million and $ 22.0 million at September 30, 2025 and December 31, 2024, respectively.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 10 – Stock Compensation Plans

Employee Stock Ownership Plan

The Company maintains an Employee Stock Ownership Plan (ESOP) for the benefit of employees who meet the eligibility requirements of the plan. The Bank may make cash contributions to the ESOP on a quarterly basis which are allocated to participant accounts on an annual basis.

During the three and nine months ended September 30, 2025 and 2024, the Company did not make a discretionary contribution of shares to the ESOP. During the nine months ended September 30, 2025 and 2024, the Company recognized $ 108,000 and $ 94,000 of ESOP expense, respectively.

Stock Incentive Plans – Share Awards

In May 2018, the shareholders of Quaint Oak Bancorp approved the adoption of the 2018 Stock Incentive Plan (the “2018 Stock Incentive Plan”). The 2018 Stock Incentive Plan approved by shareholders in May 2018 covered a total of 155,000 shares, of which 38,750 , or 25 %, may be restricted stock awards, for a balance of 116,250 stock options assuming all the restricted shares are awarded.

In May 2023, the shareholders of Quaint Oak Bancorp approved the adoption of the 2023 Stock Incentive Plan (the “2023 Stock Incentive Plan”). The 2023 Stock Incentive Plan approved by shareholders in May 2023 covered a total of 175,000 shares, of which 43,750 , or 25 %, may be restricted stock awards, for a balance of 131,250 stock options assuming all the restricted shares are awarded. In September 2025, 12,500 shares that were available under the 2023 Stock Incentive Plan were granted.

As of September 30, 2025, a total of 38,000 share awards were unvested under the 2018 and 2023 Stock Incentive Plan and no share awards were available for future grant under the 2023 Stock Incentive Plan and the 2018 Stock Incentive Plan. The 2018 and 2023 Stock Incentive Plan share awards have vesting periods of five years.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 10 – Stock Compensation Plans

Stock Incentive Plans – Share Awards

A summary of share award activity under the Company’s 2018 and 2023 Stock Incentive Plans as of September 30, 2025 and changes during the nine months ended September 30, 2025 is as follows:

	September 30, 2025
	Number of Shares			Weighted Average Grant Date Fair Value
Unvested at the beginning of the period		36,000		$	18.00
Granted		12,500			10.15
Vested		( 8,500	)		18.00
Forfeited		( 2,000	)		18.00
Unvested at the end of the period		38,000		$	15.42

Compensation expense on the restricted stock awards is recognized ratably over the five -year vesting period in an amount which is equal to the fair value of the common stock at the date of grant. During both the three months ended September 30, 2025 and 2024, the Company recognized approximately $ 41,000 of compensation expense. During both the three months ended September 30, 2025 and 2024, the Company recognized a tax benefit of approximately $ 9,000 . During both the nine months ended September 30, 2025 and 2024, the Company recognized approximately $ 122,000 of compensation expense. During both the nine months ended September 30, 2025 and 2024, the Company recognized a tax benefit of approximately $ 26,000 . As of September 30, 2025, approximately $ 552,000 in additional compensation expense will be recognized over the remaining service period of approximately 3.8 years.

Stock Incentive Plans – Stock Options

The 2018 Stock Incentive Plan approved by shareholders in May 2018 covered a total of 155,000 shares, of which 116,250 may be stock options assuming all the restricted shares are awarded. The outstanding options granted in 2018 remain exercisable until May 2028, to the extent still outstanding. In May 2023, the shareholders of Quaint Oak Bancorp approved the adoption of the 2023 Stock Incentive Plan. The 2023 Stock Incentive Plan approved by shareholders in May 2018 covered a total of 175,000 shares, of which 131,250 may be stock options assuming all the restricted shares are awarded.

All incentive stock options issued under the 2018 and 2023 Stock Incentive Plans are intended to comply with the requirements of Section 422 of the Internal Revenue Code. Options will become vested and exercisable over a five -year period and are generally exercisable for a period of ten years after the grant date.

In September 2025, 42,000 shares that were available under the 2023 Stock Incentive Plan were granted. As of September 30, 2025, a total of 254,033 grants of stock options were outstanding under the 2018 and 2023 Stock Incentive Plans and no stock options were available for future grant under the 2018 and 2023 Stock Incentive Plans. Options will become vested and exercisable over a five -year period and are generally exercisable for a period of ten years after the grant date.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 10 – Stock Compensation Plans (Continued)

Stock Incentive Plans – Stock Options

A summary of option activity under the Company’s 2018 and 2023 Stock Incentive Plans as of September 30, 2025 and changes during the nine months ended September 30, 2025 is as follows:

	September 30, 2025
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)
Outstanding at the beginning of the period		224,033		$	15.98		6.3
Granted		42,000			10.15		9.9
Exercised		-			-		-
Forfeited		( 12,000	)		15.65		6.3
Outstanding at end of period		254,033		$	15.03		6.3
Exercisable at end of period		136,533		$	15.05		4.5

During both the three months ended September 30, 2025 and 2024, the Company recognized approximately $ 20,000 of compensation expense on stock options. During both three months ended September 30, 2025 and 2024, the Company recognized a tax benefit of approximately $ 1,000 . During both the nine months ended September 30, 2025 and 2024, the Company recognized approximately $ 60,000 of compensation expense on stock options. During both the nine months ended September 30, 2025 and 2024, the Company recognized a tax benefit of approximately $ 4,000 . As of September 30, 2025, approximately $ 313,000 in additional compensation expense will be recognized over the remaining service period of approximately 3.8 years.

Note 11 – Fair Value Measurements and Fair Values of Financial Instruments

Fair value estimates are based on quoted market prices, if available, quoted market prices of similar assets or liabilities, or the present value of expected future cash flows and other valuation techniques. These valuations are significantly affected by discount rates, cash flow assumptions, and risk assumptions used. Therefore, fair values estimates may not be substantiated by comparison to independent markets and are not intended to reflect the proceeds that may be realizable in an immediate settlement of the instruments.

Fair value is determined at one point in time and is not representative of future value. These amounts do not reflect the total value of a going concern organization. Management does not have the intention to dispose of a significant portion of its assets and liabilities and therefore, the unrealized gains or losses should not be interpreted as a forecast of future earnings and cash flows.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 11 – Fair Value Measurements and Fair Values of Financial Instruments (Continued)

The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. The three broad levels of pricing are as follows:

Level I:	Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
Level II:	Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.
Level III:	Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

This hierarchy requires the use of observable market data when available.

The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 20 of the Company’s 2024 Annual Report on Form 10 -K, as the fair value of loans, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit and non-performance risk. Loans are considered a Level 3 classification.

The following is a discussion of assets and liabilities measured at fair value on a recurring and non-recurring basis and valuation techniques applied:

Investment Securities Available For Sale: The fair value of securities available for sale are determined by using matrix pricing (Level 2 ), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices.

We may be required from time to time to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 11 – Fair Value Measurements and Fair Values of Financial Instruments (Continued)

Individually Evaluated Loans: Individually evaluated loans are carried at the lower of cost or the fair value of the collateral for collateral-dependent loans less estimated costs to sell. The use of independent appraisals, discounted cash flow models and management’s best judgment are significant inputs in arriving at the fair value measure of the underlying collateral and impaired loans are therefore classified within Level 3 of the fair value hierarchy.

The following table presents the collateral-dependent loans by portfolio segment and collateral type at September 30, 2025:

	September 30, 2025
	Real Estate		Business Assets		Total
One-to-four family residential owner occupied	$	299	$	-	$	299
Commercial real estate		1,500		-		1,500
Commercial business		-		1,426		1,426
Total	$	1,799	$	1,426	$	3,225

The table below sets forth the financial assets and liabilities that were accounted for on a recurring and nonrecurring basis by level within the fair value hierarchy as of September 30, 2025 ( in thousands):

	September 30, 2025
	Fair Value Measurements Using:
	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Recurring fair value measurements:
Investment securities available for sale
Government National Mortgage Association mortgage-backed securities	$	1,037	$	-	$	1,037	$	-
Federal National Mortgage Association mortgage- backed securities		34		-		34		-
Total investment securities available for sale	$	1,071	$	-	$	1,071	$	-
Total recurring fair value measurements	$	1,071	$	-	$	1,071	$	-

Nonrecurring fair value measurements
Collateral-dependent loans	$	3,225	$	-	$	-	$	3,225
Total nonrecurring fair value measurements	$	3,225	$	-	$	-	$	3,225

The table below sets forth the financial assets and liabilities that were accounted for on a recurring and nonrecurring basis by level within the fair value hierarchy as of December 31, 2024 ( in thousands):

	December 31, 2024
	Fair Value Measurements Using:
	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Recurring fair value measurements:
Investment securities available for sale
Government National Mortgage Association mortgage-backed securities	$	1,630	$	-	$	1,630	$	-
Federal National Mortgage Association mortgage- backed securities		36		-		36		-
Total investment securities available for sale	$	1,666	$	-	$	1,666	$	-
Total recurring fair value measurements	$	1,666	$	-	$	1,666	$	-

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 11 – Fair Value Measurements and Fair Values of Financial Instruments (Continued)

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has used Level 3 inputs to determine fair value as of September 30, 2025 ( in thousands):

September 30, 2025

Quantitative Information About Level 3 Fair Value Measurements

Total Fair Value

Valuation Techniques

Unobservable Input

Range (Weighted Average)

Collateral-dependent loans

3,225

Appraisal of collateral (1)

Appraisal adjustments (2)

(8%

)

_______________

( 1 )

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are identifiable.

( 2 )

Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal.

The fair values of the Company’s financial instruments that are not required to be measured or reported at fair value were as follows at September 30, 2025 and December 31, 2024 (in thousands):

					Fair Value Measurements at
					September 30, 2025
	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Financial Assets
Investment in interest-earning time deposits	$	912	$	951	$	-	$	-	$	951
Loans held for sale		54,508		56,970		-		56,970		-
Loans receivable, net		547,116		540,252		-		-		540,252

Financial Liabilities
Deposits		554,194		561,506		214,402		-		347,104
Senior Debt		9,575		9,817		-		-		9,817
Subordinated debt		8,000		7,840		-		-		7,840

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 11 – Fair Value Measurements and Fair Values of Financial Instruments (Continued)

					Fair Value Measurements at
					December 31, 2024
	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Financial Assets
Investment in interest-earning time deposits	$	912	$	964	$	-	$	-	$	964
Loans held for sale		64,281		65,624		-		65,624		-
Loans receivable, net		534,693		518,295		-		-		518,295

Financial Liabilities
Deposits		553,252		560,701		270,361		-		290,340
FHLB long-term borrowings		2,855		2,848		-		-		2,848
Subordinated debt		22,000		21,733		-		-		21,733

For cash and cash equivalents, accrued interest receivable, investment in FHLB stock, bank-owned life insurance, accrued interest payable, FHLB short term borrowings, and advances from borrowers for taxes and insurance, the carrying value is a reasonable estimate of the fair value and are considered Level 1 measurements.

Note 12 – 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, and Quaint Oak Insurance Agency, LLC, which are included in the Banking Segment for segment reporting purposes as the operating results are monitored by the Chief Operating Decision Maker collectively. 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 credit 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.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 12 – Operating Segments (Continued)

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 tables presents summary financial information for the reportable segments (in thousands):

	As of or for the Three Months Ended September 30,
	2025								2024
	Quaint Oak Bank(1)			Oakmont Commercial, LLC		Consolidated			Quaint Oak Bank(2)			Oakmont Commercial, LLC			Consolidated
Net Interest Income	$	4,193		$	201	$	4,394		$	3,902		$	346		$	4,248
Provision for (Recovery of) Credit Losses		425			-		425			504			( 381	)		123
Net Interest Income after Provision for (Recovery of) Credit Losses		3,768			201		3,969			3,398			727			4,125

Non-Interest Income
Mortgage banking, equipment lending and title abstract fees		289			-		289			237			-			237
Insurance commissions		196			-		196			198			-			198
Other fees and services charges		( 6	)		20		14			106			10			116
Net loan servicing income		-			-		-			2			-			2
Income from bank-owned life insurance		33			-		33			30			-			30
Net gain on loans held for sale		633			317		950			503			-			503
Gain on the sale of SBA loans		266			-		266			124			-			124
Total Non-Interest Income		1,411			337		1,748			1,200			10			1,210

Non-Interest Expense
Salaries and employee benefits		3,692			301		3,993			3,308			175			3,483
Directors’ fees and expenses		66			-		66			52			-			52
Occupancy and equipment		488			1		489			330			-			330
Data processing		436			-		436			321			-			321
Professional fees		119			15		134			17			9			26
FDIC deposit insurance assessment		131			-		131			158			-			158
Advertising		25			3		28			39			3			42
Amortization of other intangible		12			-		12			12			-			12
Other		436			3		439			491			9			500
Total Non-Interest Expense		5,405			323		5,728			4,728			196			4,924
Pretax Segment Profit (Loss)	$	( 226	)	$	215	$	( 11	)	$	( 130	)	$	541		$	411
Segment Assets	$	628,171		$	48,960	$	677,131		$	628,521		$	73,084		$	701,605

____________________________

( 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.

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 12 – Operating Segments (Continued)

	As of or for the Nine Months Ended September 30,
	2025								2024
	Quaint Oak Bank(1)			Oakmont Commercial, LLC		Consolidated			Quaint Oak Bank(2)			Oakmont Commercial, LLC			Consolidated
Net Interest Income	$	12,208		$	835	$	13,043		$	13,011		$	721		$	13,732
Provision for (Recovery of) Credit Losses		1,303			-		1,303			1,514			( 296	)		1,218
Net Interest Income after Provision for (Recovery of) Credit Losses		10,905			835		11,740			11,497			1,017			12,514

Non-Interest Income
Mortgage banking, equipment lending and title abstract fees		715			-		715			627			-			627
Real estate sales commissions, net		-			-		-			20			-			20
Insurance commissions		577			-		577			526			-			526
Other fees and services charges		( 96	)		23		( 73	)		452			130			582
Net loan servicing income		5			-		5			5			-			5
Income from bank-owned life insurance		95			-		95			87			-			87
Net gain on loans held for sale		1,633			1,419		3,052			1,669			329			1,998
Gain on the sale of SBA loans		1,084			-		1,084			251			-			251
Total Non-Interest Income		4,013			1,442		5,455			3,637			459			4,096

Non-Interest Expense
Salaries and employee benefits		10,337			948		11,285			9,923			895			10,818
Directors’ fees and expenses		196			-		196			153			-			153
Occupancy and equipment		1,350			2		1,352			996			-			996
Data processing		1,277			-		1,277			894			-			894
Professional fees		486			45		531			298			25			323
FDIC deposit insurance assessment		387			-		387			494			-			494
Advertising		209			18		227			191			11			202
Amortization of other intangible		36			-		36			36			-			36
Other		1,494			20		1,514			1,343			25			1,368
Total Non-Interest Expense		15,772			1,033		16,805			14,328			956			15,284
Pretax Segment (Loss) Profit	$	( 854	)	$	1,244	$	390		$	806		$	520		$	1,326
Net Loss Attributable to Noncontrolling Interest	$	-		$	-	$	-		$	( 406	)	$	-		$	( 406	)
Segment Assets	$	628,171		$	48,960	$	677,131		$	628,521		$	73,084		$	701,605

__________________________________

( 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.

ITEM 2. MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements Are Subject to Change

This Quarterly Report contains certain forward-looking statements (as defined in the Securities Exchange Act of 1934 and the regulations thereunder). Forward-looking statements are not historical facts but instead represent only the beliefs, expectations or opinions of the Company and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, or words of similar meaning, or future or conditional terms such as “will”, “would”, “should”, “could”, “may”, “likely”, “probably”, or “possibly.” Forward-looking statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks, uncertainties and assumptions, many of which are difficult to predict and generally are beyond the control of and its management, that could cause actual results to differ materially from those expressed in, or implied or projected by, forward-looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) economic and competitive conditions which could affect the volume of loan originations, deposit flows and real estate values; (2) the levels of non-interest income and expense and the amount of credit losses; (3) competitive pressure among depository institutions increasing significantly; (4) changes in the interest rate environment causing reduced interest margins; (5) general economic conditions, either nationally or in the markets in which the Company is or will be doing business, being less favorable than expected; (6) political and social unrest, including acts of war or terrorism or (7) legislation or changes in regulatory requirements adversely affecting the business in which the Company is or will be engaged. 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.

General

The Company was formed in connection with the Bank’s conversion to a stock savings bank completed on July 3, 2007. The Company’s results of operations are dependent primarily on the results of the Bank, which is a wholly owned subsidiary of the Company, along with the Bank’s wholly owned subsidiaries. The Bank’s results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on its loan and investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by provisions for credit losses, fee income and other non-interest income and non-interest expense. Non-interest expense principally consists of compensation, directors’ fees and expenses, office occupancy and equipment expense, data processing expense, professional fees, advertising expense, FDIC deposit insurance assessment, and other expenses. Our results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities. Future changes in applicable law, regulations or government policies may materially impact our financial condition and results of operations.

At September 30, 2025 the Bank has five wholly-owned subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Abstract, LLC, QOB Properties, LLC, Quaint Oak Insurance Agency, LLC, and Oakmont Commercial, LLC, each a Pennsylvania limited liability company. Quaint Oak Mortgage offers mortgage banking in the Lehigh Valley, Delaware Valley and Philadelphia County regions of Pennsylvania and began operations in February, 2019. Quaint Oak Abstract offers title abstract services primarily in the Lehigh Valley region of Pennsylvania and began operation in July 2009. QOB Properties, LLC began operations in July 2012 and holds Bank properties acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure. Quaint Oak Insurance Agency, LLC began operations in August 2016 and provides a broad range of personal and commercial insurance coverage solutions. Oakmont Commercial, LLC was formed in October 2021 and operates as a nationwide specialty commercial real estate financing company. On March 29, 2024, Quaint Oak Bank sold its 51% interest in Oakmont Capital Holdings, LLC (“OCH”), a multi-state equipment finance company based in West Chester, Pennsylvania. The decision was based on a number of strategic priorities and other factors. As a result of this action, Quaint Oak Bancorp classified the operations of OCH as discontinued operations under ASC 205-20 and ceased all equipment loan originations. Also on March 29, 2024, the Company discontinued the operations of Quaint Oak Real Estate, LLC (“Quaint Oak Real Estate”), a 100% wholly owned subsidiary of the Bank. Quaint Oak Real Estate was engaged in the real estate brokerage business. All significant intercompany balances and transactions have been eliminated.

Critical Accounting Policies

The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Accordingly, the consolidated financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable, based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. Critical accounting policies comprise those that management believe are the most critical to aid in fully understanding and evaluating our reported financial results. These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the current period, or in future periods.

Our critical accounting policies involving significant judgments and assumptions used in the preparation of the consolidated financial statements as of September 30, 2025 have remained unchanged from the disclosures presented in our 2024 Annual Report on Form 10-K.

Comparison of Financial Condition at September 30, 2025 and December 31, 2024

General . The Company’s total assets at September 30, 2025 were $677.1 million, a decrease of $8.0 million, or 1.2%, from $685.2 million at December 31, 2024. This decrease in total assets was primarily due to a $10.7 million, or 17.0%, decrease in cash and cash equivalents, a $9.8 million, or 15.2%, decrease in loans held for sale, and a $595,000, or 35.7%, decrease in investment securities available for sale. Also contributing to the decrease in assets was a $123,000, or 5.6%, decrease in investment in Federal Home Loan Bank stock, at cost, a $39,000, or 2.4%, decrease in premises and equipment, net, and a $37,000, or 48.1%, decrease in other intangible, net of accumulated amortization. Partially offsetting the decrease in total assets was a $12.4 million, or 2.3%, increase in loans receivable, net of allowance for credit losses, a $378,000, or 9.5%, increase in accrued interest receivable, a $331,000, or 4.3%, increase in prepaid expenses and other assets, and a $95,000, or 2.1%, increase in bank-owned life insurance.

Cash and Cash Equivalents. Cash and cash equivalents decreased $10.7 million, or 17.0%, from $63.0 million at December 31, 2024 to $52.3 million at September 30, 2025, as a result of reduced correspondent banking activity and reduction in a money market deposit through a deposit placement agreement as the Company exited one of its correspondent banking relationships.

Investment in Interest-Earning Time Deposits. Investment in interest-earning time deposits remained at $912,000 at both September 30, 2025 and December 31, 2024.

Investment Securities Available for Sale. Investment securities available for sale decreased $595,000, or 35.7%, from $1.7 million at December 31, 2024 to $1.1 million at September 30, 2025, due primarily to the principal repayments on these securities during the nine months ended September 30, 2025.

Loans Held for Sale. Loans held for sale decreased $9.8 million, or 15.2%, from $64.3 million at December 31, 2024 to $54.5 million at September 30, 2025 as the Bank’s commercial real estate subsidiary, Oakmont Commercial, LLC, originated $32.7 million of commercial real estate loans during the nine months ended September 30, 2025 and sold $37.5 million of loans in the secondary market during this same period. The Bank’s mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $88.3 million of one-to-four family residential loans during the nine months ended September 30, 2025 and sold $89.5 million of loans in the secondary market. Additionally, the Bank originated $10.4 million of SBA loans and sold $14.2 million of SBA loans in the secondary market in the same period.

Loans Receivable, Net . Loans receivable, net, increased $12.4 million, or 2.3%, to $547.1 million at September 30, 2025 from $534.7 million December 31, 2024. The largest increases within the loan portfolio occurred in one-to-four family owner occupied loans which increased $17.2 million, or 66.2%, construction loans which increased $5.2 million, or 28.2%, and commercial real estate loans, which increased $9.9 million, or 3.3%. Partially offsetting these increases were commercial business loans which decreased $14.0 million, or 12.1%, multi-family residential loans which decreased $4.3 million, or 9.5%, one-to-four family non-owner occupied loans which decreased $2.1 million, or 6.3%, and home equity loans which decreased $327,000, or 5.7%.

The following table summarizes the industry concentrations within the multi-family and commercial real estate portfolios:

	September 30, 2025		December 31, 2024
	(in Thousands)
Real Estate Rental and Leasing	$	129,026	$	135,874
Health Care and Social Assistance		36,712		35,864
Accommodation and food services		33,352		33,811
Construction		23,150		25,087
Manufacturing		22,529		16,515
Other services (except public administration)		20,032		21,321
Retail trade		15,828		24,657
Wholesale trade		15,224		8,349
Arts, entertainment, and recreation		14,564		14,497
Finance and insurance		11,105		6,162
Administrative and support – waste services		9,635		4,612
Professional, scientific and technical services		7,198		5,686
Transportation and warehousing		4,343		5,901
Other		5,912		4,703
Total	$	348,610	$	343,039

The commercial real estate and multi-family portfolio consists of 56% owner occupied commercial real estate loans and 44% of non-owner occupied commercial real estate loans as of September 30, 2025.

The following table summarizes the non-owner occupied commercial real estate portfolio and the percent of total loans receivable, net.

	September 30, 2025					December 31, 2024
	Balance		Percent of Total Loans Receivable, net			Balance		Percent of Total Loans Receivable, net
	(Dollars in Thousands)
Real estate rental and leasing	$	118,188		21.6	%	$	123,103		23.0	%
Construction		11,079		2.0			14,987		2.8
Health care and social assistance		5,022		0.9			8,345		1.6
Finance and insurance		4,836		0.9			4,948		0.9
Other services (except public administration)		4,208		0.8			4,347		0.8
Retail Trade		2,550		0.5			2,153		0.4
Accommodation and Food Services		1,602		0.3			1,733		0.3
Other		2,094		0.4			2,172		0.5
Total	$	149,579		27.4	%	$	161,788		30.3	%

The following table summarizes the non-owner occupied commercial real estate rental and leasing loan portfolio outstanding balance, total commitment and loan to value (“LTV”) ratio by geographic location:

	September 30, 2025							December 31, 2024
	Balance		Total Commitment		Weighted Average LTV			Balance		Total Commitment		Weighted Average LTV
	(Dollars in Thousands)
Pennsylvania ⁽¹⁾	$	40,253	$	81,307		49.5	%	$	44,959	$	86,035		52.3	%
Philadelphia		36,883		75,760		48.7			36,142		77,810		46.4
Delaware		15,287		32,125		47.6			15,583		32,125		48.5
New Jersey		9,368		19,315		48.5			9,705		19,315		50.2
Ohio		6,768		10,100		67.0			6,914		10,100		68.5
New York		6,008		10,410		57.7			6,133		10,410		58.9
Other		3,621		6,020		60.2			3,667		6,020		60.9
Total	$	118,188	$	235,037		50.3	%	$	123,103	$	241,815		50.9	%

_______________________

(1)

Pennsylvania excluding Philadelphia

The following table summarizes the non-owner occupied commercial real estate construction loan portfolio outstanding balance, total commitment and LTV ratio by geographic location:

	September 30, 2025								December 31, 2024
	Balance		Total Commitment		Weighted Average LTV			Balance		Total Commitment		Weighted Average LTV
	(Dollars in Thousands)
Pennsylvania ⁽¹⁾	$	6,394	$	11,567		55.3	%	$	7,477	$	13,996		53.4	%
Philadelphia		4,685		9,685		48.4			4,782		9,685		49.4
New Jersey		-		-		-			2,728		8,200		33.3
Total	$	11,079	$	21,252		52.1	%	$	14,987	$	31,881		47.0	%

___________________

(1)

Pennsylvania excluding Philadelphia

Deposits. Total deposits increased $942,000, or 0.2%, to $554.2 million at September 30, 2025 from $553.3 million at December 31, 2024. This increase in deposits was primarily attributable to an increase of $56.9 million, or 20.1%, in certificates of deposit, an increase of $1.4 million, or 2.3%, in non-interest bearing checking accounts, and a $237,000, or 48.2%, increase in savings accounts. These increases in deposits were partially offset by a decrease of $50.6 million, or 31.2%, in money market accounts, and a decrease of $6.9 million, or 14.5%, in interest bearing checking accounts as the Company reduced its correspondent banking activity and exited one of its correspondent banking relationships.

The total amount of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) was $250.4 million, or 45.2% of total deposits at September 30, 2025.

Borrowings. Total Federal Home Loan Bank (FHLB) borrowings decreased $2.9 million, or 6.0%, to $45.0 million at September 30, 2025 from $47.9 million at December 31, 2024 as the Bank paid down $2.9 million of borrowings.

Senior debt. Senior debt, net of unamortized debt issuance costs, increased $9.5 million from none at December 31, 2024 as the Company entered into a Senior Unsecured Note Purchase Agreement with certain institutional accredited investors pursuant to which the Company issued an aggregate of $9.75 million in aggregate principal amount of Fixed Rate Unsecured Senior Notes due March 1, 2028 (the “Senior Debt Notes”) in a private placement. The Company issued to an accredited individual investor an additional $250,000 in principal amount of the Senior Debt Notes as of March 4, 2025 for a total of $10.0 million in aggregate principal amount. The Senior Debt Notes bear interest at a fixed annual rate of 11.00%, payable semi-annually in arrears on March 1 and September 1 of each year, beginning September 1, 2025. The maturity date of the Senior Debt Notes is March 1, 2028.

Subordinated debt. Subordinated debt, net of unamortized debt issuance costs, decreased $14.0 million, or 63.6%, to $8.0 million at September 30, 2025 from $22.0 million at December 31, 2024 as the Company used the net proceeds from the sale of the Senior Debt Notes to repay a portion of the outstanding $14.0 million aggregate principal amount of its 8.5% Fixed Rate Subordinated Notes upon their maturity on March 15, 2025. The remaining $8.0 million of subordinated debt matures on December 31, 2028.

Stockholders ’ Equity . Total stockholders’ equity from continuing operations decreased $444,000, or 0.8%, to $52.2 million at September 30, 2025 from $52.6 million at December 31, 2024. Contributing to the decrease were dividends paid of $788,000, and purchase of treasury stock of $45,000. The decrease in stockholders’ equity was partially offset by net income for the nine months ended September 30, 2025 of $148,000, amortization of stock awards and options under our stock compensation plans of $182,000, the reissuance of treasury stock under the Bank’s 401(k) Plan of $56,000, and other comprehensive income, net of $3,000.

Asset Quality. Non-performing loans at September 30, 2025, totaled $6.3 million, or 1.16%, of total loans receivable, net of allowance for credit losses, consisting of $4.2 million of loans on non-accrual status and $2.1 million of loans 90-days or more delinquent. Non-accrual loans consist of one one-to-four family residential owner occupied loan, nine commercial real estate loans, and 18 commercial business loans. Included in the 18 commercial business loans is one pool of equipment loans. Loans 90-days or more past due include one one-to-four family residential owner occupied loan, one one-to-four family residential non-owner occupied loan, one commercial real estate loan, and one commercial business loan, all of which are still accruing. All non-performing loans are either well-collateralized or adequately reserved for. During the nine months ended September 30, 2025, 21 commercial business loans totaling $1.3 million that were previously on non-accrual were charged-off through the allowance for credit losses. Non-performing loans at December 31, 2024, totaled $5.7 million, or 1.07%, of total loans receivable, net of allowance for credit losses, consisting of $3.9 million of loans on non-accrual status and $1.8 million of loans 90-days or more delinquent. Non-accrual loans consisted of one commercial real estate loan, and ten commercial business loans. Included in the ten commercial business loans is one pool of equipment loans. Loans 90-days or more past due included one one-to-four family residential owner occupied loan and two commercial real estate loans, all of which were still accruing. All non-performing loans were either well-collateralized or adequately reserved for. During the year ended December 31, 2024, 19 commercial business loans totaling $1.6 million, and one construction loan of $187,000, that were previously on non-accrual were charged-off through the allowance for credit losses.

Comparison of Operating Results for the Three Months Ended September 30, 2025 and 2024

General. Net loss amounted to $41,000 for the three months ended September 30, 2025, a decrease of $284,000, or 116.9%, compared to net income of $243,000 for the three months ended September 30, 2024. The decrease in net income on a comparative quarterly basis was primarily the result of an increase in non-interest expense of $804,000, a decrease in interest and dividend income of $302,000, and an increase in the provision for credit losses of $302,000, partially offset by an increase in non-interest income of $538,000, a decrease in interest expense of $448,000, and a decrease in the net provision for income taxes from continuing operations of $138,000.

Net Interest Income. Net interest income increased $146,000, or 3.4% to $4.4 million for the three months ended September 30, 2025 from $4.3 million for the three months ended September 30, 2024. The increase was driven by a $448,000, or 7.2%, decrease in interest expense, partially offset by a $302,000, or 2.9%, decrease in interest and dividend income.

Interest and Dividend Income. The $302,000, or 2.9%, decrease in interest and dividend income for the quarter was primarily due to a $15.0 million decrease in the average balance of due from banks – interest earning, which decreased from $45.9 million for the three months ended September 30, 2024 to $30.8 million for the three months ended September 30, 2025, and had the effect of decreasing interest income $167,000, a decrease in the average balance of loans receivable, net, which decreased $8.3 million from $607.6 million for the three months ended September 30, 2024 to $599.3 million for the three months ended September 30, 2025 and had the effect of decreasing interest income $136,000, and a 99 basis point decrease in the average yield on due from banks – interest earning, which decreased from 4.42% for the three months ended September 30, 2024 to 3.43% for the three months ended September 30, 2025 and had the effect of decreasing interest income $78,000. Partially offsetting the decrease in interest and dividend income was a four basis point increase in the average yield on loans receivable, net from 6.51% for the three months ended September 30, 2024 to 6.55% for the three months ended September 30, 2025, and had the effect of increasing interest income $49,000. The $15.0 million decrease in the average balance of due from banks – interest bearing was due to a higher level of balances during 2024 due to proceeds from the sale of the Bank’s 51% ownership of Oakmont Capital Holdings, LLC on March 29, 2024.

Interest Expense. The $448,000, or 7.2%, decrease in interest expense for the three months ended September 30, 2025 over the comparable period in 2024 was driven by an $852,000, or 15.1%, decrease in interest expense on deposits, which was primarily attributable to a $95.7 million decrease in the average balance of money market deposits which decreased from $212.2 million for the three months ended September 30, 2024 to $116.5 million for the three months ended September 30, 2025, and a $60.6 million decrease in the average balance of business checking accounts which decreased from $85.7 million for the three months ended September 30, 2024 to $25.1 million for the three months ended September 30, 2025. The decrease in average balances of interest-bearing deposits was a result of reduced correspondent banking activity and reduction in a money market deposit through a deposit placement agreement. Also contributing to the decrease in interest expense for the three months ended September 30, 2025 was a $319,000, or 65.2%, decrease in interest expense on subordinated debt. These decreases in interest expense were partially offset by a $1.1 million increase in the interest expense for certificates of deposit due to a $104.0 million increase in the average balance of certificates of deposit which increased from $223.6 million at September 30, 2024 to $327.7 million at September 30, 2025. Also partially offsetting these decreases in interest expense was a $442,000, or 470.2%, increase in the interest expense on Federal Home Loan Bank borrowings due to a $31.6 million, or 332.4%, increase in the average balance of Federal Home Loan Bank borrowings which increased from $9.5 million for the three months ended September 30, 2024 to $41.1 million for the three months ended September 30, 2025, and a $281,000 increase in interest expense on senior debt. The $104.0 million increase in the average balance of certificates of deposits was primarily due to the Bank’s competitive rate offerings in our market area. The average interest rate spread increased from 1.87% for the three months ended September 30, 2024 to 2.07% for the three months ended September 30, 2025 and the net interest margin increased from 2.58% for the three months ended September 30, 2024 to 2.77% for the three months ended September 30, 2025.

Average Balances, Net Interest Income, Yields Earned and Rates Paid. The following table shows for the periods indicated the total dollar amount of interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. All average balances are based on daily balances.

	Three Months Ended September 30,
	2025							2024
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Due from banks, interest-earning	$	30,830	$	264		3.43	%	$	45,870	$	507		4.42	%
Investment in interest-earning time deposits		912		9		3.95			912		9		3.95
Investment securities available for sale		1,180		31		10.51			1,962		39		7.95
Loans receivable, net (1) (2)		599,322		9,808		6.55			607,648		9,895		6.51
Investment in FHLB stock		1,983		58		11.70			837		22		10.51
Total interest-earning assets		634,227		10,170		6.41	%		657,229		10,472		6.37	%
Non-interest-earning assets		17,996							15,370
Total assets	$	652,223						$	672,599
Interest-bearing liabilities:
Savings accounts	$	808	$	-		0.00	%	$	642	$	-		0.00	%
Money market accounts		116,526		948		3.25			212,229		2,437		4.59
Checking accounts		29,186		339		4.64			85,727		819		3.82
Certificate of deposit accounts		327,673		3,502		4.27			223,645		2,385		4.27
Total deposits		474,193		4,789		4.07			522,243		5,641		4.32
FHLB borrowings		41,109		536		5.22			9,508		94		3.95
Subordinated debt		8,000		170		8.50			22,000		489		8.89
Senior debt		9,550		281		11.77			-		-		-
Total interest-bearing liabilities		532,852		5,776		4.34	%		553,751		6,224		4.50	%
Non-interest-bearing liabilities		67,236							67,983
Total liabilities		600,088							621,734
Stockholders’ Equity		52,135							50,865
Total liabilities and Stockholders’ Equity	$	652,223						$	672,599
Net interest-earning assets	$	101,375						$	103,478
Net interest income; average interest rate spread			$	4,394		2.07	%			$	4,248		1.87	%
Net interest margin (3)						2.77	%						2.58	%
Average interest-earning assets to average interest-bearing liabilities						119.03	%						118.69	%

________________________

(1) Includes loans held for sale.

(2) Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts, loans in process and allowance for credit losses.

(3) Equals net interest income divided by average interest-earning assets.

Provision for Credit Losses. The $302,000, or 245.5%, increase in the provision for credit losses for the three months ended September 30, 2025 over the three months ended September 30, 2024 was primarily due to an increase in non-performing loans during the three months ended September 30, 2025.

Non-Interest Income. The $538,000, or 44.5%, increase in non-interest income for the three months ended September 30, 2025 over the comparable period in 2024 was primarily attributable to a $447,000, or 88.9%, increase in net gain on sale of loans, a $142,000, or 114.5%, increase in gain on sale of SBA loans, and a $52,000, or 21.9%, increase in mortgage banking, equipment lending and title abstract fees. These increases were partially offset by a $102,000, or 87.9%, decrease in other fees and service charges, a $2,000, or 1.0%, decrease in insurance commissions and a $2,000 decrease in net loan servicing income. The reduction in other fees and service charges is attributable to reduced correspondent banking activities.

Non-Interest Expense. The $804,000, or 16.3%, increase in non-interest expense for the three months ended September 30, 2025 over the comparable period in 2024 was primarily due to a $510,000, or 14.6%, increase in salaries and employee benefits expense, a $159,000, or 48.2%, increase in occupancy and equipment expense, a $115,000, or 35.8%, increase in data processing expense, a $108,000, or 415.4%, increase in professional fees, and a $14,000, or 26.9%, increase in directors’ fees and expenses. These increases were partially offset by a $61,000, or 12.2%, decrease in other expense, a $27,000, or 17.1%, decrease in FDIC deposit insurance assessment, and a $14,000, or 33.3%, decrease in advertising expense. The increases in salaries and employee benefits expense, professional fees, occupancy and equipment expense, data processing expense, and other expense were primarily due to implementing the Bank’s international correspondent banking initiative.

Provision for Income Tax. The provision for income tax from continuing operations decreased $138,000, or 82.1%, from $168,000 for the three months ended September 30, 2024 to $30,000 for the three months ended September 30, 2025 due primarily to a decrease in pre-tax income.

Comparison of Operating Results for the Nine Months Ended September 30, 2025 and 2024

General. Net income amounted to $148,000 for the nine months ended September 30, 2025, a decrease of $1.1 million, or 87.8%, compared to net income of $1.2 million for the nine months ended September 30, 2024. The decrease in net income on a comparative year to date basis was primarily the result of a decrease in interest and dividend income of $3.2 million, an increase in non-interest expense of $1.5 million, a decrease in net income from discontinued operations of $406,000, and an increase in the provision for credit losses of $85,000, partially offset by a decrease in interest expense of $2.5 million, an increase in non-interest income of $1.4 million, and a decrease in the net provision for income taxes from continuing operations of $432,000.

Net Interest Income. Net interest income decreased $689,000, or 5.0% to $13.0 million for the nine months ended September 30, 2025 from $13.7 million for the nine months ended September 30, 2024. The decrease was driven by a $3.2 million, or 9.6%, decrease in interest and dividend income, partially offset by a $2.5 million, or 12.7%, decrease in interest expense.

Interest and Dividend Income. The $3.2 million, or 9.6%, decrease in interest and dividend income was primarily due to a decrease in the average balance of loans receivable, net, which decreased $32.4 million from $624.9 million for the nine months ended September 30, 2024 to $592.5 million for the nine months ended September 30, 2025 and had the effect of decreasing interest income $1.6 million, a $38.2 million decrease in the average balance of due from banks – interest earning, which decreased from $72.7 million for the nine months ended September 30, 2024 to $34.6 million for the nine months ended September 30, 2025, and had the effect of decreasing interest income $1.5 million, and a 123 basis point decrease in the average yield on due from banks - interest earning from 5.13% for the nine months ended September 30, 2024 to 3.90% for the nine months ended September 30, 2025, and had the effect of decreasing interest income $317,000. Similar to the quarter, the $38.2 million decrease in the average balance of due from banks – interest bearing was due to a higher level of balances during 2024 due to proceeds from the sale of the Bank’s 51% ownership of Oakmont Capital Holdings, LLC on March 29, 2024.

Interest Expense. The $2.5 million, or 12.7%, decrease in interest expense for the nine months ended September 30, 2025 over the comparable period in 2024 was driven by a $3.7 million, or 20.7%, decrease in interest expense on deposits, which was primarily attributable to a $75.6 million decrease in the average balances of money market deposits which decreased from $215.1 million for the nine months ended September 30, 2024 to $139.5 million for the nine months ended September 30, 2025, and a $65.9 million decrease in the average balances of business checking accounts which decreased from $102.5 million for the nine months ended September 30, 2024 to $36.6 million for the nine months ended September 30, 2025. The decrease in average balances of interest-bearing deposits was a result of reduced correspondent banking activity and reduction in a money market deposit through a deposit placement agreement. Also contributing to the decrease in interest expense for the nine months ended September 30, 2025 was a $671,000, or 45.9% decrease in interest expense on subordinated debt. These decreases in interest expense were partially offset by $2.5 million increase in the interest expense on certificates of deposit due to an $83.1 million increase in the average balance of certificates of deposit which increased from $223.2 million for the nine months ended September 30, 2024 to $306.2 million for the nine months ended September 30, 2025. These decreases in interest expense were also partially offset by a $1.2 million, or 231.8% increase in the interest expense on Federal Home Loan Bank borrowings due to a $29.9 million, or 171.0%, increase in the average balance of Federal Home Loan Bank borrowings which increased from $17.5 million for the nine months ended September 30, 2024 to $47.4 million for the nine months ended September 30, 2025, and a $672,000 increase in interest expense on senior debt. Similar to the quarter, the $83.1 million increase in the average balance of certificates of deposits was primarily due to the Bank’s competitive rate offerings in our market area. The average interest rate spread increased from 1.83% for the nine months ended September 30, 2024 to 2.22% for the nine months ended September 30, 2025 while the net interest margin increased from 2.61% for the nine months ended September 30, 2024 to 2.75% for the nine months ended September 30, 2025.

	Nine Months Ended September 30,
	2025							2024
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Due from banks, interest-earning	$	34,576	$	1,012		3.90	%	$	72,735	$	2,796		5.13	%
Investment in interest-earning time deposits		912		44		6.43			1,075		35		4.34
Investment securities available for sale		1,379		95		9.19			2,133		116		7.25
Loans receivable, net (1) (2)		592,519		29,026		6.53			624,873		30,445		6.50
Investment in FHLB stock		2,298		113		6.56			1,077		99		12.26
Total interest-earning assets		631,684		30,290		6.39	%		701,893		33,491		6.36	%
Non-interest-earning assets		19,201							17,238
Total assets	$	650,885						$	719,131
Interest-bearing liabilities:
Savings accounts	$	607	$	1		0.22	%	$	788	$	1		0.17	%
Money market accounts		139,453		3,656		3.50			215,079		7,344		4.55
Checking accounts		36,580		693		2.53			102,486		3,615		4.70
Certificate of deposit accounts		306,235		9,766		4.25			223,175		6,835		4.08
Total deposits		482,875		14,116		3.90			541,528		17,795		4.96
FHLB short-term borrowings		47,447		1,668		4.69			17,510		503		3.77
FRB long-term borrowings		16		1		8.33			-		-		-
Subordinated debt		11,495		790		9.16			21,995		1,461		8.86
Senior debt		9,582		672		9.35			-		-		-
Total interest-bearing liabilities		551,415		17,247		4.17	%		581,033		19,759		4.53	%
Non-interest-bearing liabilities		46,771							87,561
Total liabilities		598,186							668,594
Stockholders’ Equity		52,699							50,537
Total liabilities and Stockholders’ Equity	$	650,885						$	719,131
Net interest-earning assets	$	80,269						$	120,860
Net interest income; average interest rate spread			$	13,043		2.22	%			$	13,732		1.83	%
Net interest margin (3)						2.75	%						2.61	%
Average interest-earning assets to average interest-bearing liabilities						114.56	%						120.80	%

________________________

(1)	Includes loans held for sale.

(2)	Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts, loans in process and allowance for credit losses.

(3)	Equals net interest income divided by average interest-earning assets.

Provision for Credit Losses. The $85,000, or 7.0%, increase in the provision for credit losses for the nine months ended September 30, 2025 over the nine months ended September 30, 2024 was primarily due to an increase in loans receivable, net, and an increase in charge-offs during the nine months ended September 30, 2025.

Non-Interest Income. The $1.4 million, or 33.2%, increase in non-interest income for the nine months ended September 30, 2025 over the comparable period in 2024 was primarily attributable to a $1.1 million, or 52.8%, increase in net gain on sale of loans, an $833,000, or 331.9%, increase in gain on sale of SBA loans, an $88,000, or 14.0%, increase in mortgage banking, equipment lending and title abstract fees, and a $51,000, or 9.7%, increase in insurance commissions. These increases were partially offset by a $655,000, or 112.5%, decrease in other fees and service charges, and a $20,000, or 100.0%, decrease in real estate sales commissions, net.

Non-Interest Expense. The $1.5 million, or 10.0%, increase in non-interest expense for the nine months ended September 30, 2025 over the comparable period in 2024 was primarily due to a $467,000, or 4.3%, increase in salaries and employee benefits expense, a $383,000, or 42.8%, increase in data processing expense, a $356,000, or 35.7%, increase in occupancy and equipment expense, a $208,000, or 64.4%, increase in professional fees, a $146,000, or 10.7%, increase in other expense, a $43,000, or 28.1%, increase in directors’ fees and expenses, and a $25,000, or 12.4%, increase in advertising expense. These increases were partially offset by a $107,000, or 21.7%, decrease in FDIC deposit insurance assessment. The increases in salaries and employee benefits expense, professional fees, occupancy and equipment expense, data processing expense, and other expense were primarily due to implementing the Bank’s international correspondent banking initiative.

Provision for Income Tax. The provision for income tax from continuing operations decreased $274,000, or 53.1%, from $516,000 for the nine months ended September 30, 2024 to $242,000 for the nine months ended September 30, 2025 due primarily to a decrease in pre-tax income.

Operating Segments

The Company’s operations consist of two reportable operating segments: Banking and Oakmont Commercial. Our Banking Segment generates revenues primarily from its lending, deposit gathering and fee business activities. Our 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, processing fees, and service fees. Detailed segment information appears in Note 12 in the Notes to Unaudited Consolidated Financial Statements.

Our Banking Segment reported a pre-tax segment loss (“PTSL”) for the three months ended September 30, 2025 of $226,000, a $96,000, or 73.8%, increase from the same period in 2024. This increase in PTSL was primarily due to a $677,000, or 14.3%, increase in non-interest expense. This decrease was partially offset by a $291,000, or 7.5%, increase in net interest income, a $211,000, or 17.6%, increase in non-interest income, and a $79,000, or 15.7%, decrease in the provision for credit losses. The increase in non-interest expense was primarily due to a $384,000, or 11.6%, increase in salaries and employee benefits expense, a $158,000, or 47.9% increase in occupancy and equipment expense, a $115,000, or 35.8%, increase in data processing expense, and a $102,000, or 600.0%, increase in professional fees expense, partially offset by a $55,000, or 11.2% decrease in other expenses. The increase in non-interest income is primarily attributable to a $142,000, or 114.5%, increase in gain on sale of SBA loans, a $130,000, or 25.8%, increase in the net gain on loans held for sale, and a $52,000, or 21.9%, increase in mortgage banking, equipment lending and title abstract fees, partially offset by a $112,000, or 105.7% decrease in other fees and service charges.

Our Oakmont Commercial, LLC Segment reported a pre-tax segment profit (“PTSP”) for the three months ended September 30, 2025 of $215,000, a $326,000, or 60.3%, decrease from the same period in 2024. The decrease in PTSP was primarily due to a $381,000, recovery in the provision for credit losses for the 2024 period, a $145,000, or 41.9%, decrease in net interest income, and a $127,000, or 64.8%, increase in non-interest expense, partially offset by a $327,000, or 3,270.0%, increase in non-interest income. The increase in non-interest income was primarily due to a $317,000, or 100.0%, increase net gain on loans held for sale, and a $10,000, or 50.0%, increase in other fees and service charges. The increase in non-interest expense was primarily due to a $126,000, or 72.0%, increase in salaries and employee benefits expense, and a $6,000, or 66.7% increase in professional fees, partially offset by a $6,000, or 66.7%, decrease in other non-interest expense.

Our Banking Segment reported a pre-tax segment loss (“PTSL”) for the nine months ended September 30, 2025 of $854,000, a $1.7 million, or 206.0%, decrease from the same period in 2024. This increase in PTSL was primarily due to a $1.4 million, or 10.1%, increase in non-interest expense, an $803,000, or 6.2%, decrease in net interest income, and a $211,000, or 13.9%, decrease in the provision for credit losses partially offset by a $376,000, or 10.3%, increase in non-interest income. The increase in non-interest expense was primarily due to a $414,000, 4.2%, increase in salaries and employee benefits expense, a $383,000, or 42.8%, increase in data processing expense, a $354,000, or 35.5% increase in occupancy and equipment expense, a $188,000, or 63.1%, increase in professional fees, a $151,000, or 11.2%, increase in other non-interest expense, and a $43,000, or 28.1%, increase in directors' fees and expenses. The increase in non-interest income is primarily attributable to a $833,000, or 331.9%, increase in gain on sale of SBA loans, an $88,000, or 14.0%, increase in mortgage banking, equipment lending and title abstract fees, and a $51,000, or 9.7%, increase in insurance commissions, partially offset by a $548,000, or 121.2% decrease in other fees and service charges, and a $36,000, or 2.2%, decrease in the net gain on loans held for sale.

Our Oakmont Commercial, LLC Segment reported a pre-tax segment profit (“PTSP”) for the nine months ended September 30, 2025 of $1.2 million, a $724,000 increase from the same period in 2024. The increase in PTSP was primarily due to a $983,000, or 214.2%, increase in non-interest income, a $296,000, recovery of the provision for credit losses for the 2024 period, and a $114,000, or 15.8%, increase in net interest income, partially offset by a $77,000, or 8.1%, increase in non-interest expense. The increase in non-interest income was primarily due to a $1.1 million, or 331.3%, increase net gain on loans held for sale, partially offset by a $107,000, or 82.3%, decrease in other fees and service charges. The increase in non-interest expense was primarily due to a $53,000, 5.9%, increase in salaries and employee benefits expense, a $20,000, or 80.0% increase in professional fees, a $7,000, or 63.6%, increase in advertising expense, and a $2,000, or 100.0%, increase in occupancy and equipment expense, partially offset by a $5,000, or 20.0%, decrease in other non-interest expense.

Liquidity and Capital Resources

The Company’s primary sources of funds are deposits, amortization and prepayment of loans and to a lesser extent, loan sales and other funds provided from operations. While scheduled principal and interest payments on loans are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition. The Company sets the interest rates on its deposits to maintain a desired level of total deposits. Borrowings may also be used on a short-term basis to compensate for reductions in the availability of funds from other sources and on a longer-term basis for general business purposes. In addition, the Company invests excess funds in short-term interest-earning assets that provide additional liquidity. At September 30, 2025, the Company's cash and cash equivalents amounted to $52.3 million.

The Company uses its liquidity to fund existing and future loan commitments, to fund deposit outflows, to invest in other interest-earning assets and to meet operating expenses. At September 30, 2025, Quaint Oak Bank had outstanding commitments to originate loans of $18.7 million, commitments under unused lines of credit of $50.8 million, and $1.1 million under standby letters of credit.

At September 30, 2025, certificates of deposit scheduled to mature in one year or less totaled $238.5 million. Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case.

In addition to cash flow from loan payments and prepayments and deposits, the Company has significant borrowing capacity available to fund liquidity needs. If the Company requires funds beyond its ability to generate them internally, borrowing agreements exist with the Federal Home Loan Bank of Pittsburgh (FHLB), which provide an additional source of funds. As of September 30, 2025, we had $45.0 million of borrowings from the FHLB and had $268.8 million in borrowing capacity. Under terms of the collateral agreement with the FHLB of Pittsburgh, we pledge residential mortgage loans as well as Quaint Oak Bank’s FHLB stock as collateral for such advances. In addition, as of September 30, 2025, Quaint Oak Bank had $27.5 million in borrowing capacity with the Federal Reserve Bank of Philadelphia. We also use brokered deposits as a funding source. As of September 30, 2025, the Company had $72.9 million of brokered deposits, $25.1 million of which were sourced from one brokered interest-bearing checking account deposit relationship.

The Company identified one major money market deposit customer that accounted for approximately 6.3% of total deposits at September 30, 2025. The outstanding balance of the major deposit customer totaled approximately $35.0 million at September 30, 2025. The Company identified five major interest bearing brokered checking deposit customers that accounted for approximately 7.4% of total deposits at September 30, 2025. The outstanding balance of the major deposit customers’ interest bearing brokered checking account totaled approximately $40.9 million at September 30, 2025. If these deposits were to be withdrawn in whole or in part, replacement of the funds may require us to pay higher interest rates on retail deposits or brokered deposits which would have an adverse effect on our net interest income and net income. The replacement of these deposits with other sources of funding such as borrowings could also increase our overall cost of funds and would negatively impact our results of operations. The Company has significant borrowing capacity available to fund liquidity needs, including borrowing agreements with the Federal Home Loan Bank of Pittsburgh and the Federal Reserve Bank of Philadelphia described above.

Any requirements that we increase our capital ratios or liquidity could require our seeking additional sources of capital through a capital raise that would necessitate issuing additional securities, which could dilute our outstanding shares of our common stock. We may also raise capital through the issuance of preferred stock and senior or subordinated debt, or liquidate certain assets, perhaps on terms that are unfavorable to us or contrary to our business plan. In March 2024, we sold our 51% ownership interest in OCH, and recognized a $1.4 million gain on sale. In December 2024, the Company recorded a pre-tax gain, after deduction of transaction-related expenses, of $1.5 million in connection with a sale/leaseback transaction on its property that it owned at 1710 Union Blvd, Allentown, PA 18109.

The Company and Quaint Oak Bank are subject to the regulation and supervision of the Board of Governors of the Federal Reserve System (the “FRB”), the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking and Securities, each of which may impose restrictions on our ability to pay dividends, repurchase shares or incur additional indebtedness. As the subsidiary of a stock saving and loan holding company, Quaint Oak must file a notice with the appropriate Federal Reserve Bank at least 20 days before a proposed declaration of a dividend to the Company. Under applicable banking regulations, Quaint Oak Bank must file an application for FDIC approval of a capital distribution if: the total capital distributions for the calendar year exceed the sum of Quaint Oak Bank’s net income for that year to date plus the retained net income for the preceding two years; Quaint Oak Bank would not be at least adequately capitalized following the distribution; the distribution would violate any applicable statute, regulation, agreement or FDIC-imposed condition; or Quaint Oak Bank is not otherwise eligible for expedited treatment of its filings with the FDIC. The inability to pay dividends from Quaint Oak Bank to the Company could negatively impact our ability to pay dividends to shareholders, pay interest on our debt or engage in stock repurchases. The Company currently is restricted in declaring or paying dividends, engaging in share repurchases or directly or indirectly, incurring, increasing, or guaranteeing any debt, including any interest payments due on subordinated debentures, without the prior written approval of the FRB. To date, the FRB has approved all requests to pay dividends and interest on subordinated debt, however, no assurance can be given that such approvals will be received in the future.

The following table summarizes the Company's primary and secondary sources of liquidity which were available at September 30, 2025 (dollars in thousands).

	September 30, 2025
	(Dollars in thousands)

Cash and cash equivalents	$	52,292
Unpledged investment securities, amortized cost		1,071
FHLB advance availability		268,798
Federal Reserve discount window availability		27,549
Total primary and secondary sources of available liquidity	$	349,710

Total stockholders’ equity from continuing operations decreased $444,000, or 0.8%, to $52.2 million at September 30, 2025 from $52.6 million at December 31, 2024. Contributing to the decrease were dividends paid of $788,000, and purchase of treasury stock of $45,000. The decrease in stockholders’ equity was partially offset by net income for the nine months ended September 30, 2025 of $148,000, amortization of stock awards and options under our stock compensation plans of $182,000, the reissuance of treasury stock under the Bank’s 401(k) Plan of $56,000, and other comprehensive income, net of $3,000.

For further discussion of the stock compensation plans, see Note 10 in the Notes to Unaudited Consolidated Financial Statements contained elsewhere herein.

Quaint Oak Bank is required to maintain regulatory capital sufficient to meet tier 1 leverage, common equity tier 1 capital, tier 1 risk-based and total risk-based capital ratios of at least 4.00%, 4.50%, 6.00%, and 8.00%, respectively. At September 30, 2025, Quaint Oak Bank exceeded each of its capital requirements with ratios of 10.11%, 12.31%, 12.31% and 13.56%, respectively. As a small savings and loan holding company eligible for exemption, the Company is not currently subject to any regulatory capital requirements.

Off-Balance Sheet Arrangements

In the normal course of operations, we engage in a variety of financial transactions that, in accordance with generally accepted accounting principles are not recorded in our financial statements. These transactions involve, to varying degrees, elements of credit, interest rate, and liquidity risk. Such transactions are used primarily to manage customers' requests for funding and take the form of loan commitments and lines of credit. Our exposure to credit loss from non-performance by the other party to the above-mentioned financial instruments is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. In general, we do not require collateral or other security to support financial instruments with off–balance sheet credit risk.

Commitments. At September 30, 2025, we had unfunded commitments under lines of credit of $50.8 million, $18.7 million of commitments to originate loans, and $1.1 million under standby letters of credit. We had no commitments to advance additional amounts pursuant to outstanding lines of credit or undisbursed construction loans.

The ACL for off balance sheet credit exposures is recorded in other liabilities on the Consolidated Balance Sheet. This ACL represents management’s estimate of expected losses in its unfunded loan commitments and other off balance sheet credit exposures, such as letters of credit and credit recourse on sold residential mortgage loans. The balance of off balance sheet credit exposures was a provision of $80,000 at September 30, 2025.

Impact of Inflation and Changing Prices

The consolidated financial statements and related financial data presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America which generally require the measurement of financial position and operating results in terms of historical dollars, without considering changes in relative purchasing power over time due to inflation. Unlike most industrial companies, virtually all of the Company’s assets and liabilities are monetary in nature. As a result, interest rates generally have a more significant impact on the Company’s performance than does the effect of inflation. Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services, since such prices are affected by inflation to a larger extent than interest rates.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

ITEM 4. CONTROLS AND PROCEDURES

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of September 30, 2025. Based on their evaluation of the Company’s disclosure controls and procedures, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and regulations are operating in an effective manner.

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15(d)-15(f) under the Securities Exchange Act of 1934) occurred during the second fiscal quarter of fiscal 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II

ITEM 1. LEGAL PROCEEDINGS

The Company is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business, which involve amounts in the aggregate believed by management to be immaterial to the financial condition and operating results of the Company.

ITEM 1A. RISK FACTORS

There have been no material changes in the Risk Factors previously disclosed in Item 1A of our 2024 Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a)

Not applicable.

(b)

Not applicable.

(c)

Purchases of Equity Securities

The Company’s repurchases of its common stock made during the quarter ended September 30, 2025 including stock-for-stock option exercises of outstanding stock options, are set forth in the table below:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
July 1, 2025 – July 31, 2025		-	$	-		-		24,375
August 1, 2025 – August 31, 2025		1,301		10.15		-		24,375
September 1, 2025 – September 30, 2025		-		-		-		24,375
Total		1,301	$	10.15		-		24,375

Notes to this table:

(1)

On December 12, 2018, the Board of Directors of Quaint Oak Bancorp approved its fifth share repurchase program which provides for the repurchase of up to 50,000 shares, or approximately 2.5% of the Company’s then issued and outstanding shares of common stock and announced the fifth repurchase program on Form 8-K filed on December 13, 2018. The repurchase program does not have an expiration date.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

No.		Description
31.1		Rule 13a-14(d) and 15d-14(d) Certification of the Chief Executive Officer.
31.2		Rule 13a-14(d) and 15d-14(d) Certification of the Chief Financial Officer.
32.0		Section 1350 Certification.
101.INS		Inline XBRL Instance Document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		Inline XBRL Taxonomy Extension Definitions Linkbase Document.
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



Date: November 13, 2025	By:	/s/ Robert T. Strong
		Robert T. Strong
		Chief Executive Officer



Date: November 13, 2025	By:	/s/ John J. Augustine
		John J. Augustine
		Executive Vice President and Chief Financial Officer

TABLE OF CONTENTS

Part I - Financial Information Item 1 - Financial Statements Item 2 - Management S Discussion and Analysis Of Financial Condition and Results Of Operations 32 Item 2 - Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 3 - Quantitative and Qualitative Disclosures About Market Risk 46 Item 3 - Quantitative and Qualitative Disclosures About Market Risk Item 4 - Controls and Procedures 46 Item 4 - Controls and Procedures Part II - Other Information Item 1 - Legal Proceedings 46 Item 1 - Legal Proceedings Item 1A - Risk Factors 47 Item 1A - Risk Factors Item 2 - Unregistered Sales Of Equity Securities and Use Of Proceeds 47 Item 2 - Unregistered Sales Of Equity Securities and Use Of Proceeds Item 3 - Defaults Upon Senior Securities 47 Item 3 - Defaults Upon Senior Securities Item 4 - Mine Safety Disclosures 47 Item 4 - Mine Safety Disclosures Item 5 - Other Information 47 Item 5 - Other Information Item 6 - Exhibits 48 Item 6 - Exhibits Item 1. Financial Statements Note 1 Financial Statement Presentation and Significant Accounting Policies Note 1 Financial Statement Presentation and Significant Accounting Policies (continued)Note 2 Discontinued Operations Note 2 Discontinued Operations (continued)Note 3 Earnings Per Share Note 4 Accumulated Other Comprehensive Income (loss)Note 5 Investment Securities Available For Sale Note 5 Investment Securities Available For Sale (continued)Note 6 - Loans Receivable, Net and Allowance For Credit Losses Note 6 - Loans Receivable, Net and Allowance For Credit Losses (continued)Note 6 Loans Receivable, Net and Allowance For Credit Losses (continued)Note 7 Goodwill and Other Intangible, Net Note 8 Deposits Note 9 Borrowings Note 10 Stock Compensation Plans Note 10 Stock Compensation Plans (continued)Note 11 Fair Value Measurements and Fair Values Of Financial Instruments Note 11 Fair Value Measurements and Fair Values Of Financial Instruments (continued)Note 12 Operating Segments Note 12 Operating Segments (continued)Item 2. Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 2. Management Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Not Applicable Item 5. Other Information Item 6. Exhibits

Exhibits

31.1 Rule 13a-14(d) and 15d-14(d) Certification of the Chief Executive Officer. 31.2 Rule 13a-14(d) and 15d-14(d) Certification of the Chief Financial Officer. 32.0 Section 1350 Certification.

QNTO 10-Q Quarter ended Sept. 30, 2025

Exhibits