10-Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 _______________________________

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

OR

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

For the transition period from to

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)

(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)

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.
[X]  Yes	[   ]  No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).
[X]  Yes	[   ]  No

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

Large accelerated filer	[   ]	Accelerated filer	[   ]
Non-accelerated filer	[   ]	Smaller reporting company	[X]
(Do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
[   ]  Yes	[X]  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 8, 2016, 1,879,243 shares of the Registrant's common stock were issued and outstanding.

INDEX

PART I - FINANCIAL INFORMATION	Page
Item 1 -                Financial Statements
Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015 (Unaudited)	1
Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2016 and 2015 (Unaudited)	2
Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2016 and 2015 (Unaudited)	3
Consolidated Statement of Stockholders' Equity for the Nine Months Ended September 30, 2016 (Unaudited)	4
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2016 and 2015 (Unaudited)	5
Notes to Unaudited Consolidated Financial Statements	6
Item 2 -                Management's Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3 -                Quantitative and Qualitative Disclosures About Market Risk	46
Item 4 -                Controls and Procedures	46
PART II - OTHER INFORMATION
Item 1 -                Legal Proceedings	47
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	48
Item 6 -                Exhibits	48
SIGNATURES

ITEM 1. FINANCIAL STATEMENTS

Quaint Oak Bancorp, Inc.

Consolidated Balance Sheets (Unaudited)

	At September 30,			At December 31,
	2016			2015
	(In thousands, except share data)
Assets
Due from banks, non-interest-bearing	$	460		$	43
Due from banks, interest-bearing		17,220			17,163
Cash and cash equivalents		17,680			17,206
Investment in interest-earning time deposits		6,063			6,136
Investment securities available for sale		10,055			3,005
Loans held for sale		4,247			5,064
Loans receivable, net of allowance for loan losses (2016 $1,485; 2015 $1,313)		161,627			143,305
Accrued interest receivable		932			983
Investment in Federal Home Loan Bank stock, at cost		593			618
Bank-owned life insurance		3,705			3,638
Premises and equipment, net		1,744			1,834
Intangibles, net of accumulated amortization		1,044			45
Other real estate owned, net		720			1,410
Prepaid expenses and other assets		1,078			924
Total Assets	$	209,488		$	184,168
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing	$	4,203		$	2,407
Interest-bearing		170,448			146,822
Total deposits		174,651			149,229
Federal Home Loan Bank short-term borrowings		6,000			6,000
Federal Home Loan Bank long-term borrowings		6,500			7,500
Accrued interest payable		136			123
Advances from borrowers for taxes and insurance		1,437			1,859
Accrued expenses and other liabilities		466			421
Total Liabilities		189,190			165,132
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; 2,777,250 issued;
1,879,284 and 1,841,475 outstanding at September 30, 2016 and  December 31, 2015, respectively		28			28
Additional paid-in capital		14,178			14,013
Treasury stock, at cost: 2016 897,966 shares; 2015 935,775 shares		(4,670	)		(4,859	)
Unallocated common stock held by:
Employee Stock Ownership Plan (ESOP)		(337	)		(387	)
Recognition & Retention Plan Trust (RRP)		(47	)		(70	)
Accumulated other comprehensive loss		(2	)		(12	)
Retained earnings		11,148			10,323
Total Stockholders' Equity		20,298			19,036
Total Liabilities and Stockholders' Equity	$	209,488		$	184,168

See accompanying notes to the unaudited consolidated financial statements.

1

Quaint Oak Bancorp, Inc.

Consolidated Statements of Income (Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
	(In thousands, except for share data)
Interest Income
Interest on loans	$	2,213		$	2,095		$	6,497		$	6,106
Interest and dividends on short-term investments and investment securities		96			47			244			156
Total Interest Income		2,309			2,142			6,741			6,262
Interest Expense
Interest on deposits		638			511			1,774			1,448
Interest on Federal Home Loan Bank borrowings		34			27			100			70
Total Interest Expense		672			538			1,874			1,518
Net Interest Income		1,637			1,604			4,867			4,744
Provision for Loan Losses		61			71			172			280
Net Interest Income after Provision for Loan Losses		1,576			1,533			4,695			4,464
Non-Interest Income
Mortgage banking and title abstract fees		129			114			409			334
Other fees and services charges		(20	)		22			32			93
Insurance commissions		60			-			60			-
Income from bank-owned life insurance		23			23			67			66
Net gain on the sale of residential mortgage loans		531			357			1,289			993
Gain on sale of SBA loans		51			-			108			7
Loss on sale of investment securities available for sale		-			(75	)		-			(75	)
Loss on sales and write-downs of other real estate owned		(54	)		(2	)		(126	)		(4	)
Other		13			11			36			27
Total Non-Interest Income		733			450			1,875			1,441
Non-Interest Expense
Salaries and employee benefits		1,132			942			3,321			2,980
Directors' fees and expenses		48			49			155			153
Occupancy and equipment		167			167			479			453
Professional fees		94			129			291			301
FDIC deposit insurance assessment		35			32			103			90
Other real estate owned expense		13			14			32			17
Advertising		23			21			84			83
Other		145			130			412			383
Total Non-Interest Expense		1,657			1,484			4,877			4,460
Income before Income Taxes		652			499			1,693			1,445
Income Taxes		250			189			650			552
Net Income	$	402		$	310		$	1,043		$	893
Earnings per share - basic	$	0.22		$	0.18		$	0.59		$	0.52
Average shares outstanding - basic		1,792,673			1,706,946			1,774,343			1,714,689
Earnings per share - diluted	$	0.21		$	0.16		$	0.54		$	0.48
Average shares outstanding - diluted		1,950,413			1,888,113			1,935,757			1,876,708

See accompanying notes to the unaudited consolidated financial statements.

2

Quaint Oak Bancorp, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
	(In thousands)
Net Income	$	402		$	310		$	1,043		$	893
Other Comprehensive Income  (Loss):
Unrealized gains (losses) on investment securities available-for-sale		(5	)		(14	)		15			(21	)
Income tax effect		2			4			(5	)		7
Reclassification adjustment for losses on sale of investment securities      included in net income		-			75			-			75
Income tax effect		-			(25	)		-			(25	)
Other comprehensive income (loss)		(3	)		40			10			36
Total Comprehensive Income	$	399		$	350		$	1,053		$	929

See accompanying notes to the unaudited consolidated financial statements.

3

Quaint Oak Bancorp, Inc.

Consolidated Statements of Stockholders' Equity (Unaudited)

For the Nine Months Ended September 30, 2016

												Unallocated
	Common Stock											Common			Accumulated
	Number of					Additional						Stock Held			Other						Total
	Shares					Paid-in			Treasury			by Benefit			Comprehensive			Retained			Stockholders'
	Outstanding			Amount		Capital			Stock			Plans			Income (Loss)			Earnings			Equity
								(In thousands, except share data)
BALANCE – DECEMBER 31, 2015	1,841,475		$	28	$	14,013		$	(4,859	)	$	(457	)	$	(12	)	$	10,323		$	19,036
Common stock allocated by ESOP						78						51									129
Treasury stock purchased	(1,097	)							(13	)											(13	)
Reissuance of treasury stock under 401(k) Plan	6,992					46			36												82
Reissuance of treasury stock for share   awards	5,396					(28	)		28												-
Reissuance of treasury stock for exercised stock options	26,518					(5	)		138												133
Stock based compensation expense						96															96
Release of 4,864 vested RRP shares						(22	)					22									-
Cash dividends declared ($0.118 per   share)																		(218	)		(218	)
Net income																		1,043			1,043
Other comprehensive income, net															10						10
BALANCE – September 30, 2016	1,879,284		$	28	$	14,178		$	(4,670	)	$	(384	)	$	(2	)	$	11,148		$	20,298

See accompanying notes to the unaudited consolidated financial statements.

4

Quaint Oak Bancorp, Inc.

Consolidated Statements of Cash Flows (Unaudited)

		For the Nine Months Ended September 30,
		2016			2015
		(In Thousands)
Cash Flows from Operating Activities
Net income	$	1,043		$	893
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		172			280
Depreciation expense		140			132
Amortization of intangibles		22			3
Net amortization of securities premiums		14			-
Accretion of deferred loan fees and costs, net		(227	)		(247	)
Stock-based compensation expense		225			211
Realized loss on sale of investment securities available for sale		-			75
Net gain on the sale of loans		(1,289	)		(993	)
Gain on the sale of SBA loans		(108	)		(7	)
Net loss on sale and write-downs of other real estate owned		126			4
Increase in the cash surrender value of bank-owned life insurance		(67	)		(66	)
Changes in assets and liabilities which provided (used) cash:
Loans held for sale-originations		(47,942	)		(38,029	)
Loans held for sale-proceeds		50,048			39,291
Accrued interest receivable		51			(141	)
Prepaid expenses and other assets		(159	)		(175	)
Accrued interest payable		13			4
Accrued expenses and other liabilities		45			18
Net Cash Provided by Operating Activities		2,107			1,253

Cash Flows from Investing Activities
Net decrease in investment in interest-earning time deposits	73		524
Purchase of investment securities available for sale	(7,833	)	(35	)
Principal repayments of investment securities available for sale	784		-
Proceeds from sale of investment securities available for sale	-		1,720
Net increase in loans receivable	(18,159	)	(19,351	)
Net decrease (increase) in investment in Federal Home Loan Bank stock	25		(91	)
Proceeds from the sale of other real estate owned	844		160
Capitalized expenditures on other real estate owned	(280	)	(109	)
Purchase of premises and equipment	(50	)	(315	)
Purchase of intangibles	(1,021	)	(1	)
Net Cash Used in Investing Activities	(25,617	)	(17,498	)

Cash Flows from Financing Activities
Net increase in demand deposits and savings accounts		3,273			2,875
Net increase in certificate accounts		22,149			13,526
Proceeds from Federal Home Loan Bank short-term borrowings		-			1,000
Repayment of Federal Home Loan Bank short-term borrowings		-			(2,000	)
Proceeds from Federal Home Loan Bank long-term borrowings		-			3,000
Repayment of Federal Home Loan Bank long-term borrowings		(1,000	)		-
Dividends paid		(218	)		(182	)
Purchase of treasury stock		(13	)		(9	)
Proceeds from the reissuance of treasury stock		82			40
Proceeds from the exercise of stock options		133			25
Decrease in advances from borrowers for taxes and insurance		(422	)		(420	)
Net Cash Provided by Financing Activities		23,984			17,855
Net Increase in Cash and Cash Equivalents		474			1,610
Cash and Cash Equivalents – Beginning of Year		17,206			13,937
Cash and Cash Equivalents – End of Year	$	17,680		$	15,547
Cash payments for interest	$	1,861		$	1,514
Cash payments for income taxes	$	560		$	665
Transfer of loans to other real estate owned	$	-		$	670

See accompanying notes to the unaudited consolidated financial statements.

5

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. (the "Company") and its wholly-owned subsidiary, Quaint Oak Bank (the "Bank") along with its wholly-owned subsidiaries.  At September 30, 2016, the Bank has five wholly-owned subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Real Estate, LLC, Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, and QOB Properties, LLC, each a Pennsylvania limited liability company.  The mortgage, real estate and abstract companies offer mortgage banking, real estate sales and title abstract services, respectively, 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.  On August 1, 2016, Quaint Oak Insurance Agency, LLC began operations by acquiring the renewal rights to the book of business produced and serviced by Signature Insurance Services, LLC, an independent insurance agency located in New Britain, Pennsylvania, that provides a broad range of personal and commercial insurance coverage solutions.  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's two regional offices includes Bucks, Montgomery, Lehigh and Northampton Counties, Pennsylvania, and northeast Philadelphia and the surrounding area.  The principal deposit products offered by the Bank are certificates of deposit, passbook savings accounts, savings accounts and money market accounts.  Loan products offered are fixed and adjustable rate residential and commercial mortgages, construction loans, home equity loans, auto 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, 2015 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 2015 Annual Report on Form 10-K.  The results of operations for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

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 loan losses, the assessment of other-than-temporary impairment of investment and mortgage-backed securities, valuation of other real estate owned, and the valuation of deferred tax assets.

6

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

Loans Receivable.  Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees and costs.  Interest income is accrued on the unpaid principal balance.  Loan origination fees and costs are deferred and recognized as an adjustment of the yield (interest income) of the related loans.  The Bank is generally amortizing these amounts over the contractual life of the loan.

The loans receivable portfolio is segmented into residential loans, commercial real estate loans, construction loans and consumer loans.  The residential loan segment has two classes: one-to-four family residential owner occupied loans and one-to-four residential family non-owner occupied loans.  The commercial real estate loan segment consists of the following classes: multi-family (five or more) residential, commercial real estate and commercial lines of credit.  Construction loans are generally granted for the purpose of building a single residential home.  Commercial business loans are loans to businesses primarily for purchase of business essential equipment. Business essential equipment is equipment necessary for a business to support or assist with the day-to-day operation or profitability of the business.  The consumer loan segment consists of the following classes: home equity loans and other consumer loans.  Included in the home equity class are home equity loans and home equity lines of credit.  Included in the other consumer are loans secured by saving accounts and auto loans.

The accrual of interest is generally discontinued when principal or interest has become 90 days past due unless the loan is in the process of collection and is either guaranteed or well secured.  When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses.  Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management's judgment as to the collectability of principal.  Generally, a loan is restored to accrual status when the obligation is brought current, it has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Allowance for Loan Losses.  The allowance for loan losses represents management's estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans receivable. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses.

The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company's past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower's ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.

7

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

The allowance consists of specific, general and unallocated components. The specific component relates to loans that are designated as impaired. For loans that are designated as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These significant factors may include changes in lending policies and procedures, changes in existing general economic and business conditions affecting our primary lending areas, credit quality trends, collateral value, loan volumes and concentrations, seasoning of the loan portfolio, recent loss experience in particular segments of the portfolio, duration of the current business cycle and bank regulatory examination results. The applied loss factors are reevaluated quarterly to ensure their relevance in the current economic environment.  Residential owner occupied mortgage lending generally entails a lower risk of default than other types of lending. Consumer loans and commercial real estate loans generally involve more risk of collectability because of the type and nature of the collateral and, in certain cases, the absence of collateral. It is the Company's policy to establish a specific reserve for loss on any delinquent loan when it determines that a loss is probable. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral if the loan is collateral dependent.  An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company's impaired loans are measured based on the estimated fair value of the loan's collateral.

A loan is identified as a troubled debt restructuring ("TDR") if the Company, for economic or legal reasons related to a debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider. Concessions granted under a TDR typically involve a temporary or permanent reduction in payments or interest rate or an extension of a loan's stated maturity date at less than a current market rate of interest. Loans identified as TDRs are designated as impaired.

8

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower's overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for all loans (except one-to-four family residential owner-occupied loans) where the total amount outstanding to any borrower or group of borrowers exceeds $500,000, or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans criticized as special mention have potential weaknesses that deserve management's close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition, Federal regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management's comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate.

Loans Held for Sale.  Loans originated by the Bank's mortgage banking subsidiary, Quaint Oak Mortgage, LLC, are intended for sale in the secondary market and are carried at the lower of cost or fair value (LOCOM). Gains and losses on loan sales (sales proceeds minus carrying value) are recorded in noninterest income, and direct loan origination costs, commissions and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan.

Federal Home Loan Bank Stock.  Federal law requires a member institution of the Federal Home Loan Bank (FHLB) system to hold restricted stock of its district Federal Home Loan Bank according to a predetermined formula.  FHLB stock is carried at cost and evaluated for impairment. When evaluating FHLB stock for impairment, its value is determined based on the ultimate recoverability of the par value of the stock. We evaluate our holdings of FHLB stock for impairment each reporting period. No impairment charges were recognized on FHLB stock during the three or nine months ended September 30, 2016 and 2015.

Bank Owned Life Insurance (BOLl).  The Company purchases bank owned life insurance as a mechanism for funding various employee benefit costs.  The Company is the beneficiary of these policies that insure the lives of certain officers of its subsidiaries. The Company has recognized the cash surrender value under the insurance policies as an asset in the consolidated balance sheets. Changes in the cash surrender value are recorded in non-interest income in the consolidated statements of income.

9

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

Other Real Estate Owned.Other real estate owned or foreclosed assets are comprised of property acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure and loans classified as in-substance foreclosures.  A loan is classified as in-substance foreclosure when the Bank has taken possession of the collateral regardless of whether formal foreclosure proceedings take place.  Other real estate properties are initially recorded at fair value, net of estimated selling costs at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of cost or fair value less estimated costs to sell.  Net revenue and expenses from operations and additions to the valuation allowance are included in other expenses.  The Company has one one-to-four family residential non-owner occupied loan and one multi-family loan for which foreclosure proceedings are in process at September 30, 2016.  The total recorded investment is $385,000.

Intangible Assets.  Intangible assets on the consolidated balance sheets are comprised of the acquisition by Quaint Oak Insurance Agency of the renewal rights to the book of business produced and serviced by Signature Insurance Services, LLC on August 1, 2016 at a total cost of $1.0 million. These renewal rights are being amortized over a ten year period based upon the annual retention rate of the book of business.  This amortization is included in non-interest expense.  Also included in intangible assets are mortgage servicing rights recognized as separate assets when mortgage loans are sold and the servicing rights are retained. These capitalized mortgage servicing rights are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing period of the underlying mortgage loans.

Share-Based Compensation.  Compensation expense for share-based compensation awards is based on the grant date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award.

At September 30, 2016, the Company has three share-based plans: the 2008 Recognition and Retention Plan ("RRP"), the 2008 Stock Option Plan, and the 2013 Stock Incentive Plan.  Awards under these plans were made in May 2008 and 2013.  These plans are more fully described in Note 11.

The Company also has an employee stock ownership plan ("ESOP").  This plan is more fully described in Note 11.  As ESOP shares are committed to be released and allocated among participants, the Company recognizes compensation expense equal to the average market price of the shares over the period earned.

Comprehensive Income (Loss).  Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income.  Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the consolidated balance sheet and  along with net income, are components of comprehensive income.

Earnings per Share.  Amounts reported in earnings per share reflect earnings available to common stockholders' for the period divided by the weighted average number of shares of common stock outstanding during the period, exclusive of unearned ESOP shares, unvested restricted stock (RRP) shares and treasury shares.  Stock options and unvested restricted stock are regarded as potential common stock and are considered in the diluted earnings per share calculations to the extent they would have a dilutive effect if converted to common stock, computed using the "treasury stock" method.

10

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

Recent Accounting Pronouncements.  In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update's core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period.  The Company is evaluating the effect of adopting this new accounting Update.

In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606). The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year.  Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.  All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019.  The Company is evaluating the effect of adopting this new accounting Update.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10):  Recognition and Measurement of Financial Assets and Financial Liabilities.  This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments.  Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (g) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (h) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets.  For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  For all other entities including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the a  mendments in this Update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

11

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).  The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet.  A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.  A short-term lease id defined as one in which: (a) the lease term is 12 months or less, and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise.  For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis.  For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years.  For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020.  The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606).  The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity's ordinary activities) in exchange for consideration.  The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year.  The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718). The amendments in this Update affect all entities that issue share-based payment awards to their employees. The standards in this Update provide simplification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as with equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition to those simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. This should not result in a change in practice because the guidance that is being superseded was never effective. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

12

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606).  The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance.  The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year.  The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606), which among other things clarifies the objective of the collectability criterion in Topic 606, as well as certain narrow aspects of Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which changes the impairment model for most financial assets. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations.  The underlying premise of the ASU is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management's current estimate of credit losses that are expected to occur over the remaining life of a financial asset.  The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted.  The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

13

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230):  Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"), which addresses eight specific cash flow issues with the objective of reducing diversity in practice.  Among these include recognizing cash payments for debt prepayment or debt extinguishment as cash outflows for financing activities; cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; and cash proceeds received from the settlement of bank-owned life insurance policies should be classified as cash inflows from investing activities while the cash payments for premiums on bank-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities.  The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact the adoption of the standard will have on the Company's statement of cash flows.

Reclassifications.  Certain items in the 2015 consolidated financial statements have been reclassified to conform to the presentation in the 2016 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 – Stock Split

On August 13, 2015, the Company's Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend effective for shareholders of record on August 24, 2015 that was distributed on September 8, 2015. All per share amounts in this report have been restated to reflect this stock split. An amount equal to the par value of the additional common shares issued pursuant to the stock split was reflected as a transfer from additional paid-in capital to common stock on the consolidated financial statements as of the year ended December 31, 2015.

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 have been 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 months and nine months ended September 30, 2016 and 2015, all unvested restricted stock program awards and outstanding stock options representing shares were dilutive.

14

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 3 – Earnings Per Share (Continued)

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,
	2016		2015		2016		2015
Net Income	$	402,000	$	310,000	$	1,043,000	$	893,000
Weighted average shares outstanding – basic		1,792,673		1,706,946		1,774,343		1,714,689
Effect of dilutive common stock equivalents		157,740		181,167		161,414		162,019
Adjusted weighted average shares outstanding – diluted		1,950,413		1,888,113		1,935,757		1,876,708
Basic earnings per share	$	0.22	$	0.18	$	0.59	$	0.52
Diluted earnings per share	$	0.21	$	0.16	$	0.54	$	0.48

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 months and the nine months ended September 30, 2016 and 2015 (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,
	2016			2015			2016			2015
Balance at the beginning of the period	$	1		$	(40	)	$	(12	)	$	(36	)
Other comprehensive income (loss) before classifications		(3	)		(10	)		10			(14	)
Amount reclassified from accumulated other comprehensive income		-			50			-			50
Total other comprehensive income (loss)		(3	)		40			10			36
Balance at the end of the period	$	(2	)	$	-		$	(2	)	$	-
_________________

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

The following table presents significant amounts reclassified out of each component of accumulated other comprehensive loss for the three months and the nine months ended September 30, 2016 and 2015 (in thousands):

	Amount Reclassified from Accumulated Other Comprehensive Loss (1)
	For the Three Months Ended September 30,					For the Nine Months Ended September 30,					Affected Line Item in the
Details About Other Comprehensive Loss	2016		2015			2016		2015			Statement of Income
Unrealized losses on investment securities     available for sale	$	-	$	(75	)	$	-	$	(75	)	Loss on sales of investment securities
		-		25			-		25		Income taxes
	$	-	$	(50	)	$	-	$	(50	)	Net of tax
____________________

(1)  Amounts in parentheses indicate debits.

15

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 5 – Investment in Interest-Earning Time Deposits

The investment in interest-earning time deposits as of September 30, 2016 and December 31, 2015, by contractual maturity, are shown below:

	September 30, 2016		December 31, 2015
	(In Thousands)
Due in one year or less	$	3,107	$	3,585
Due after one year through five years		2,956		2,551
	$	6,063	$	6,136

Note 6 – 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, 2016 and December 31, 2015 are summarized below (in thousands): 

	September 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale:
Mortgage-backed securities:
Governmental National Mortgage Association securities	$	6,902	$	10	$	(6	)	$	6,906
Federal Home Loan Mortgage Corporation securities		1,928		2		(1	)		1,929
Federal National Mortgage Association securities		868		-		(7	)		861
Total mortgage-backed securities		9,698		12		(14	)		9,696
Federal Home Loan Mortgage Corporation Medium Term Note Step		360		-		(1	)		359
Total available-for-sale-securities	$	10,058	$	12	$	(15	)	$	10,055

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale:
Mortgage-backed securities:
Governmental National Mortgage Association securities	$	2,003	$	-	$	(13	)	$	1,990
Federal Home Loan Mortgage Corporation securities		1,020		-		(5	)		1,015
Total mortgage-backed securities	$	3,023	$	-	$	(18	)	$	3,005

16

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 – Investment Securities Available for Sale (Continued)

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 September 30, 2016 and December 31, 2015 (in thousands):

	September 30, 2016
			Less than Twelve Months					Twelve Months or Greater				Total
	Number of Securities		Fair Value		GrossUnrealized Losses			Fair Value		GrossUnrealized Losses		Fair Value		GrossUnrealized Losses
Governmental National Mortgage Association securities		5	$	3,946	$	(6	)	$	-	$	-	$	3,946	$	(6	)
Federal Home Loan Mortgage Corporation securities		1		984		(1	)		-		-		984		(1	)
Federal National Mortgage Association securities		1		861		(7	)		-		-		861		(7	)
Federal Home Loan Mortgage Corporation Medium Term Note Step		1		359		(1	)		-		-		359		(1	)
		8	$	6,150	$	(15	)	$	-	$	-	$	6,150	$	(15	)

	December 31, 2015
			Less than Twelve Months					Twelve Months or Greater				Total
	Number ofSecurities		Fair Value		GrossUnrealizedLosses			Fair Value		GrossUnrealizedLosses		Fair Value		GrossUnrealizedLosses
Governmental National Mortgage   Association mortgage-backed    securities		2	$	1,990	$	(13	)	$	-	$	-	$	1,990	$	(13	)
Federal Home Loan Mortgage   Corporation mortgage-backed   security		1		1,015		(5	)		-		-		1,015		(5	)
Total		3	$	3,005	$	(18	)	$	-	$	-	$	3,005	$	(18	)

At September 30, 2016, there were eight securities in an unrealized loss position that at such date had an aggregate depreciation of 0.24% from the Company's amortized cost basis. Management believes that the estimated fair value of the securities disclosed above is primarily dependent on the movement of market interest rates.  Management evaluated the length of time and the extent to which the fair value has been less than cost and the financial condition and near term prospects of the issuer, including any specific events which may influence the operations of the issuer.  The Company has the ability and intent to hold the securities until the anticipated recovery of fair value occurs. Management does not believe any individual unrealized loss as of September 30, 2016 represents an other-than-temporary impairment. There were no impairment charges recognized during the three and nine months ended September 30, 2016 or 2015.

In September 2015 the Company sold its investment securities available for sale portfolio consisting of two bond funds totaling $1.7 million and realized gross losses of $75,000 on the transaction.  There were no realized gross gains on the transaction.

17

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 7 - Loans Receivable, Net and Allowance for Loan Losses

The composition of net loans receivable is as follows:

	September 30, 2016			December 31, 2015
	(In Thousands)
Real estate loans:
One-to-four family residential:
Owner occupied	$	5,710		$	5,777
Non-owner occupied		53,191			51,036
Total one-to-four family residential		58,901			56,813
Multi-family (five or more) residential		12,252			12,402
Commercial real estate		63,869			47,550
Commercial lines of credit		2,201			2,215
Construction		15,889			16,100
Home equity loans		4,886			7,409
Total real estate loans		157,998			142,489
Commercial business		5,716			2,576
Other consumer		28			71
Total Loans		163,742			145,136
Deferred loan fees and costs		(630	)		(518	)
Allowance for loan losses		(1,485	)		(1,313	)
Net Loans	$	161,627		$	143,305

The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company's internal risk rating system as of September 30, 2016 and December 31, 2015(in thousands):

	September 30, 2016
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	5,710	$	-	$	-	$	-	$	5,710
One-to-four family residential non-owner occupied		52,072		106		1,013		-		53,191
Multi-family residential		12,252		-		-		-		12,252
Commercial real estate and lines of credit		64,630		117		1,323		-		66,070
Construction		14,015		-		1,874		-		15,889
Home equity		4,886		-		-		-		4,886
Commercial business		5,716		-		-		-		5,716
Other consumer		28		-		-		-		28
	$	159,309	$	223	$	4,210	$	-	$	163,742

18

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 7 - Loans Receivable, Net and Allowance for Loan Losses (Continued)

	December 31, 2015
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	5,777	$	-	$	-	$	-	$	5,777
One-to-four family residential non-owner occupied		49,457		331		1,248		-		51,036
Multi-family residential		12,402		-		-		-		12,402
Commercial real estate and lines of credit		48,185		262		1,318		-		49,765
Construction		14,621		-		1,479		-		16,100
Home equity		7,409		-		-		-		7,409
Commercial business		2,576		-		-		-		2,576
Other consumer		71		-		-		-		71
	$	140,498	$	593	$	4,045	$	-	$	145,136

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2016 as well as the average recorded investment and related interest income for the period then ended (in thousands):

	September 30, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		1,110		1,122		-		1,183		21
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		262		262		-		262		-
Construction		-		-		-		-		-
Home equity		50		50		-		83		5
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		96		96		30		197		12
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		133		11		133		7
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		1,206		1,218		30		1,380		33
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		395		395		11		395		7
Construction		-		-		-		-		-
Home equity		50		50		-		83		5
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	1,651	$	1,663	$	41	$	1,858	$	45

19

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 7 - Loans Receivable, Net and Allowance for Loan Losses (Continued)

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2015 as well as the average recorded investment and related interest income for the year then ended (in thousands):

	December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	828	$	15
One-to-four family residential non-owner occupied		653		659		-		1,464		62
Multi-family residential		-		-		-		66		5
Commercial real estate and lines of credit		-		-		-		1,085		77
Construction		-		-		-		-		-
Home equity		84		84		-		87		7
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		321		321		33		556		22
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		133		7		332		9
Construction		-		-		-		-		-
Home equity		-		-		-		45		4
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	828	$	15
One-to-four family residential non-owner occupied		974		980		33		2,020		84
Multi-family residential		-		-		-		66		5
Commercial real estate and lines of credit		133		133		7		1,417		86
Construction		-		-		-		-		-
Home equity		84		84		-		132		11
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	1,191	$	1,197	$	40	$	4,463	$	201

The loan portfolio also includes certain loans that have been modified in a troubled debt restructuring, where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from loss mitigation activities and could include reductions in the interest rate, payment extensions, forbearance, or other actions.  At September 30, 2016, the Company had eight loans totaling $737,000 that were identified as troubled debt restructurings.  All eight of these loans were performing in accordance with their modified terms.  At December 31, 2015, the Company had nine loans totaling $781,000 that were identified as troubled debt restructurings.  If a TDR is placed on non-accrual it is not reverted back to accruing status until the borrower makes timely payments as contracted for at least nine months and future collection under the revised terms is probable.

20

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 7 - Loans Receivable, Net and Allowance for Loan Losses (Continued)

The following tables present the Company's TDR loans as of September 30, 2016 and December 31, 2015 (dollar amounts in thousands):

	September 30, 2016
	Number of Contracts		Recorded Investment		Non- Accrual		Accruing		Related Allowance
One-to-four family residential owner occupied		-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		5		554		-		554		30
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		1		133		-		133		11
Construction		-		-		-		-		-
Home equity		2		50		-		50		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		8	$	737	$	-	$	737	$	41

	December 31, 2015
	Number of Contracts		Recorded Investment		Non- Accrual		Accruing		Related Allowance
One-to-four family residential owner occupied		-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		5		564		-		564		25
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		1		133		-		133		7
Construction		-		-		-		-		-
Home equity		3		84		-		84		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		9	$	781	$	-	$	781	$	32

The contractual aging of the TDRs in the table above as of September 30, 2016 and December 31, 2015 is as follows (in thousands):

	September 30, 2016
	Accruing Past Due Less than 30 Days		Past Due 30-89 Days		Greater than 90 Days		Non-Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		554		-		-		-		554
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		-		-		-		133
Construction		-		-		-		-		-
Home equity		50		-		-		-		50
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	737	$	-	$	-	$	-	$	737

21

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 7 - Loans Receivable, Net and Allowance for Loan Losses (Continued)

	December 31, 2015
	Accruing Past Due Less than 30 Days		Past Due 30-89 Days		Greater than 90 Days		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		564		-		-		-		564
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		-		-		-		133
Construction		-		-		-		-		-
Home equity		84		-		-		-		84
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	781	$	-	$	-	$	-	$	781

During the three and nine months ended September 30, 2016 there were no new loans identified as TDRs and one loan previously identified as a TDR was paid-off in the second quarter of 2016.

Any reserve for an impaired TDR loan is based upon the present value of the future expected cash flows discounted at the loan's original effective rate or upon the fair value of the collateral less costs to sell, if the loan is deemed collateral dependent. At September 30, 2016 there were no commitments to lend additional funds to debtors whose loan terms have been modified as TDRs.

The general practice of the Bank is to work with borrowers so that they are able to pay back their loan in full. If a borrower continues to be delinquent or cannot meet the terms of a TDR modification and the loan is determined to be uncollectible, the loan will be charged off.  The Company did not have any troubled debt restructurings default within the nine months ended September 30, 2016.

22

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 7 - Loans Receivable, Net and Allowance for Loan Losses (Continued)

Following is a summary, by loan portfolio class, of changes in the allowance for loan losses for the three and nine months ended September 30, 2016 and recorded investment in loans receivable as of September 30, 2016 (in thousands):

	September 30, 2016
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non-Owner Occupied		Multi-Family Residential			Commercial  Real Estate and Lines of Credit		Construction			Home Equity			Commercial Business and Other Consumer		Unallocated			Total
For the Three Months Ended September 30, 2016
Allowance for loan losses:
Beginning balance	$	46		$	525	$	66		$	484	$	115		$	51		$	37	$	100		$	1,424
Charge-offs		-			-		-			-		-			-			-		-			-
Recoveries		-			-		-			-		-			-			-		-			-
Provision		(9	)		25		(11	)		63		28			(19	)		14		(30	)		61
Ending balance	$	37		$	550	$	55		$	547	$	143		$	32		$	51	$	70		$	1,485
For the Nine Months Ended September 30, 2016
Allowance for loan losses:
Beginning balance	$	55		$	486	$	81		$	389	$	153		$	50		$	18	$	81		$	1,313
Charge-offs		-			-		-			-		-			-			-		-			-
Recoveries		-			-		-			-		-			-			-		-			-
Provision		(18	)		64		(26	)		158		(10	)		(18	)		33		(11	)		172
Ending balance	$	37		$	550	$	55		$	547	$	143		$	32		$	51	$	70		$	1,485
Ending balance evaluated
for impairment:
Individually	$	-		$	30	$	-		$	11	$	-		$	-		$	-	$	-		$	41
Collectively	$	37		$	520	$	55		$	536	$	143		$	32		$	51	$	70		$	1,444
Loans receivable:
Ending balance:	$	5,710		$	53,191	$	12,252		$	66,070	$	15,889		$	4,886		$	5,744	$	-		$	163,742
Ending balance evaluated
for impairment:
Individually	$	-		$	1,206	$	-		$	395	$	-		$	50		$	-	$	-		$	1,651
Collectively	$	5,710		$	51,985	$	12,252		$	65,675	$	15,889		$	4,836		$	5,744	$	-		$	162,091

The Bank allocated increased allowance for loan loss provisions to the commercial real estate and lines of credit, the 1-4 family residential non-owner occupied, and the commercial business loans portfolio classes for the three and nine months ended September 30, 2016, due primarily to increased balances in these portfolio classes. The Bank allocated increased allowance for loan loss provisions to the construction loan portfolio class for the three months ended September 30, 2016, due primarily to an increase in delinquencies in this portfolio class.

23

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 7 - Loans Receivable, Net and Allowance for Loan Losses (Continued)

Following is a summary, by loan portfolio class, of changes in the allowance for loan losses for the three and nine months ended September 30, 2015 (in thousands):

	September 30, 2015
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non-Owner Occupied			Multi- Family Residential		Commercial  Real Estate  and Lines of Credit			Construction			Home Equity			Commercial Business and Other Consumer			Unallocated			Total
For the Three Months Ended September 30, 2015
Allowance for loan losses:
Beginning balance	$	60		$	369		$	65	$	412		$	203		$	73		$	23		$	71		$	1,276
Charge-offs		-			(12	)		-		(21	)		-			(45	)		-			-			(78	)
Recoveries		-			-			-		21			-			-			-			-			21
Provision		(1	)		140			1		(53	)		(35	)		15			(5	)		9			71
Ending balance	$	59		$	497		$	66	$	359		$	168		$	43		$	18		$	80		$	1,290
For the Nine Months Ended September 30, 2015
Allowance for loan losses:
Beginning balance	$	75		$	418		$	60	$	324		$	122		$	46		$	7		$	96		$	1,148
Charge-offs		-			(93	)		-		(21	)		-			(45	)		-			-			(159	)
Recoveries		-			-			-		21			-			-			-			-			21
Provision		(16	)		172			6		35			46			42			11			(16	)		280
Ending balance	$	59		$	497		$	66	$	359		$	168		$	43		$	18		$	80		$	1,290
Ending balance evaluated
for impairment:
Individually	$	-		$	21		$	-	$	7		$	-		$	-		$	-		$	-		$	28
Collectively	$	59		$	476		$	66	$	352		$	168		$	43		$	18		$	80		$	1,262

The Bank allocated increased allowance for loan loss provisions to the one-to-four family residential non-owner occupied portfolio class for the three months and nine months ended September 30, 2015 due primarily to increased balances and specific reserves needed on impaired loans.  The Bank allocated increased allowance for loan loss provisions to the commercial real estate and lines of credit and construction portfolio classes for the nine months ended September 30, 2015, due primarily to increased balances in these portfolio classes.

24

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 7 - Loans Receivable, Net and Allowance for Loan Losses (Continued)

Following is a summary, by loan portfolio class, of changes in the allowance for loan losses for the year ended December 31, 2015 and recorded investment in loans receivable as of December 31, 2015 (in thousands):

	December 31, 2015
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non-Owner Occupied			Multi- Family Residential		Commercial Real Estate and Lines of Credit			Construction		Home Equity			Commercial Business and Other Consumer		Unallocated			Total
Allowance for loan losses:
Beginning balance	$	75		$	418		$	60	$	324		$	122	$	46		$	7	$	96		$	1,148
Charge-offs		-			(110	)		-		(21	)		-		(45	)		-		-			(176	)
Recoveries		-			-			-		21			-		-			-		-			21
Provision		(20	)		178			21		65			31		49			11		(15	)		320
Ending balance	$	55		$	486		$	81	$	389		$	153	$	50		$	18	$	81		$	1,313
Ending balance evaluated
for impairment
Individually	$	-		$	33		$	-	$	7		$	-	$	-		$	-	$	-		$	40
Collectively	$	55		$	453		$	81	$	382		$	153	$	50		$	18	$	81		$	1,273
Loans receivable:
Ending balance	$	5,777		$	51,036		$	12,402	$	49,765		$	16,100	$	7,409		$	2,647	$	-		$	145,136
Ending balance evaluated
for impairment
Individually	$	-		$	974		$	-	$	133		$	-	$	84		$	-	$	-		$	1,191
Collectively	$	5,777		$	50,062		$	12,402	$	49,632		$	16,100	$	7,325		$	2,647	$	-		$	143,945

The following table presents nonaccrual loans by classes of the loan portfolio as of September 30, 2016 and December 31, 2015 (in thousands):

	September 30, 2016		December 31, 2015
One-to-four family residential owner occupied	$	-	$	-
One-to-four family residential non-owner occupied		652		186
Multi-family residential		-		-
Commercial real estate and lines of credit		262		-
Construction		-		-
Home equity		-		-
Commercial business		-		-
Other consumer		-		-
	$	914	$	186

Non-performing loans, which consist of non-accruing loans plus accruing loans 90 days or more past due, amounted to $1.5 million and $852,000 at September 30, 2016 and December 31, 2015, respectively.  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.

For the three and nine months ended September 30, 2016 and 2015 there was no interest income recognized on non-accrual loans on a cash basis.  Interest income foregone on non-accrual loans was approximately $82,000 and $48,000 for the nine months ended September 30, 2016 and 2015, respectively.

25

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 7 - Loans Receivable, Net and Allowance for Loan Losses (Continued)

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. The following tables present the classes of the loan portfolio summarized by the past due status as of September 30, 2016 and December 31, 2015 (in thousands):

	September 30, 2016
	30-90 Days Past  Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable > 90 Days and Accruing
One-to-four family residential owner occupied	$	323	$	-	$	323	$	5,387	$	5,710	$	-
One-to-four family residential non-owner occupied		1,033		870		1,903		51,288		53,191		218
Multi-family residential		-		-		-		12,252		12,252		-
Commercial real estate and lines of credit		979		660		1,639		64,431		66,070		398
Construction		1,063		-		1,063		14,826		15,889		-
Home equity		171		-		171		4,715		4,886		-
Commercial business		-		-		-		5,716		5,716		-
Other consumer		-		-		-		28		28		-
	$	3,569	$	1,530	$	5,099	$	158,643	$	163,742	$	616

	December 31, 2015
	30-90 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable > 90 Days and Accruing
One-to-four family residential owner occupied	$	253	$	-	$	253	$	5,524	$	5,777	$	-
One-to-four family residential non-owner occupied		1,227		590		1,817		49,219		51,036		404
Multi-family residential		-		-		-		12,402		12,402		-
Commercial real estate and lines of credit		894		262		1,156		48,609		49,765		262
Construction		558		-		558		15,542		16,100		-
Home equity		55		-		55		7,354		7,409		-
Commercial business		-		-		-		2,576		2,576		-
Other consumer		-		-		-		71		71		-
	$	2,987	$	852	$	3,839	$	141,297	$	145,136	$	666

Note 8 – Intangibles, Net

On August 1, 2016, Quaint Oak Insurance Agency, LLC began operations by acquiring the renewal rights to the book of business produced and serviced by Signature Insurance Services, LLC, 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.  This intangible asset is being amortized over ten years, which is the remaining life of the purchased book of business.  The accumulated amortization for the three and the nine months ended September 30, 2016 was $17,000.

26

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 8 – Intangibles, Net (Continued)

Also included in intangible assets are mortgage servicing rights recognized as separate assets when mortgage loans are sold and the servicing rights are retained. The total mortgage servicing rights intangibles at September 30, 2016 and December 31, 2015 totaled $61,000 and $45,000, respectively.  During the three and nine months ended September 30, 2016, approximately $2,000 and $5,000 in amortization was recognized, respectively.  During the three and nine months ended September 30, 2015, approximately $1,000 and $3,000 in amortization was recognized, respectively.

Note 9 – Deposits

Deposits consist of the following classifications (in thousands):

	September 30, 2016		December 31, 2015
Non-interest bearing checking accounts	$	4,203	$	2,407
Passbook accounts		1,161		1,185
Savings accounts		1,984		3,275
Money market accounts		29,363		26,571
Certificates of deposit		137,940		115,791
Total deposits	$	174,651	$	149,229

Note 10 – Borrowings

Federal Home Loan Bank advances consist of the following at September 30, 2016 and December 31, 2015 (in thousands):

		September 30, 2016				December 31, 2015
		Amount	Weighted Interest Rate			Amount	Weighted Interest Rate
Short-term borrowings	$	6,000	0.46	%	$	6,000	0.45	%
Fixed rate borrowings maturing:
2016		-	-	%	$	1,000	0.88	%
2017		2,500	1.15			2,500	1.15
2018		3,000	1.46			3,000	1.46
2019		1,000	2.02			1,000	2.02
Total  FHLB long-term debt	$	6,500	1.42	%	$	7,500	1.35	%

27

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 11 – Stock Compensation Plans

Employee Stock Ownership Plan

The Company adopted an Employee Stock Ownership Plan (ESOP) during fiscal 2007 for the benefit of employees who meet the eligibility requirements of the plan.  Using proceeds from a loan from the Company, the ESOP purchased 8%, or 222,180 shares of the Company's then outstanding common stock in the open market at an average price of $4.68 (split-adjusted) for a total of $1.0 million.  The Bank makes cash contributions to the ESOP on a quarterly basis sufficient to enable the ESOP to make the required loan payments to the Company.  The loan bears an interest rate of 7.75% per annum, with principal and interest to be paid quarterly in equal installments over 15 years. The loan is secured by the unallocated shares of common stock held by the ESOP.

Shares of the Company's common stock purchased by the ESOP are held in a suspense account and reported as unallocated common stock held by the ESOP in stockholders' equity until released for allocation to participants.  As the debt is repaid, shares are released from collateral and are allocated to each eligible participant based on the ratio of each such participant's base compensation to the total base compensation of eligible plan participants.  As the unearned shares are committed to be released and allocated among participants, the Company recognizes compensation expense equal to the average market value of the shares, and the shares become outstanding for earnings per share computations.  During the three and nine months ended September 30, 2016, the Company recognized $43,000 and $129,000 of ESOP expense, respectively.  During the three and nine months ended September 30, 2015, the Company recognized $42,000 and $115,000 of ESOP expense, respectively.

Recognition & Retention and Stock Incentive Plans

In May 2008, the shareholders of Quaint Oak Bancorp approved the adoption of the 2008 Recognition and Retention Plan (the "RRP") and Trust Agreement.  In order to fund the RRP, the 2008 Recognition and Retention Plan Trust acquired 111,090 shares of the Company's stock in the open market at an average price of $4.68 (split adjusted) totaling $520,000.  In May 2013, the shareholders of Quaint Oak Bancorp approved the adoption of the 2013 Stock Incentive Plan (the "Stock Incentive Plan").  The Stock Incentive Plan provides that no more than 48,750, or 25%, of the shares may be granted as share awards.

As of September 30, 2016, a total of 20,524 share awards were unvested under the RRP and Stock Incentive Plan and up to 21,968 share awards were available for future grant under the Stock Incentive Plan and none under the RRP.  The RRP and Stock Incentive Plan share awards have vesting periods from five to seven years.

A summary of the status of the share awards under the RRP and Stock Incentive Plan as of September 30, 2016 and 2015 and changes during the nine months ended September 30, 2016 and 2015 is as follows:

	September 30, 2016					September 30, 2015
	Number of Shares			Weighted Average Grant Date Fair Value		Number of Shares			Weighted Average Grant Date Fair Value
Unvested at the beginning of the period		30,784		$	8.10		41,966		$	8.09
Granted		-			-		-			-
Vested		(10,260	)		8.10		(10,582	)		7.73
Forfeited		-			-		(800	)		8.10
Unvested at the end of the period		20,524		$	8.10		30,584		$	8.21

28

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 11 – Stock Compensation Plans (Continued)

Recognition & Retention and Stock Incentive Plans (Continued)

Compensation expense on the share awards is recognized ratably over the five to seven year vesting period in an amount which is equal to the fair value of the common stock at the date of grant.  During the three and nine months ended September 30, 2016, approximately $21,000 and $62,000 in compensation expense was recognized, respectively. A tax benefit of approximately $7,000 and $21,000, respectively, was recognized during each of these periods.  During the three and nine months ended September 30, 2015, approximately $19,000 and $62,000 in compensation expense was recognized, respectively. A tax benefit of approximately $6,000 and $15,000, respectively, was recognized during each of these periods.  As of September 30, 2016, approximately $136,000 in additional compensation expense will be recognized over the remaining service period of approximately 1.6 years.

Stock Option and Stock Incentive Plans

In May 2008, the shareholders of Quaint Oak Bancorp approved the adoption of the 2008 Stock Option Plan (the "Option Plan").  The Option Plan authorizes the grant of stock options to officers, employees and directors of the Company to acquire 277,726 shares of common stock with an exercise price no less than the fair market value on the date of the grant.  The Stock Incentive Plan approved by shareholders in May 2013 covered a total of 195,000 shares, of which 48,750 may be share awards, for a balance of 146,250 stock options assuming all the share awards are granted.

For grants in May 2008, the Compensation Committee of the Board of Directors determined to grant the stock options at an exercise price equal to $5.00 per share (split-adjusted) which is higher than the fair market value of the common stock on the grant date.  Stock options granted in May 2013 have an exercise price of $8.10 per share (split adjusted), the fair market value of the common stock on the date of grant. All incentive stock options issued under the Option Plan and the Stock Incentive Plan are intended to comply with the requirements of Section 422 of the Internal Revenue Code.

As of September 30, 2016, a total of 327,748 grants of stock options were outstanding under the Option Plan and Stock Incentive Plan and 56,276 stock options were available for future grant under the Stock Incentive Plan and none under the Option Plan.  Options will become vested and exercisable over a five to seven year period and are generally exercisable for a period of ten years after the grant date.

A summary of option activity under the Company's Option Plan and Stock Incentive Plan of September 30, 2016 and 2015 and changes during the nine months ended September 30, 2016 and 2015 is as follows:

	2016							2015
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Number  of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual  Life (in years)
Outstanding at the beginning of the year		354,266		$	6.33		4.7		369,140		$	6.30		5.7
Granted		-			-		-		-			-		-
Exercised		(26,518	)		5.00		-		(4,960	)		5.00		-
Forfeited		-			-		-		(1,920	)		8.10		-
Outstanding at end of period		327,748		$	6.44		4.0		362,260		$	6.30		4.8
Exercisable at end of  period		266,148		$	6.06		1.6		271,780		$	5.70		2.6

29

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 11 – Stock Compensation Plans (Continued)

Stock Option and Stock Incentive Plans  (Continued)

During the three and nine months ended September 30, 2016 and 2015, approximately $12,000 and $34,000 in compensation expense was recognized, respectively.  A tax benefit of approximately $1,000 and $3,000, respectively, was recognized during each of these periods.  As of September 30, 2016, approximately $73,000 in additional compensation expense will be recognized over the remaining service period of approximately 1.6 years.

Note 12 – 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 value 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.

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

Investment Securities Available-For-Sale: The fair value of securities available for sale are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or 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.

30

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 12 – Fair Value Measurements and Fair Values of Financial Instruments (Continued)

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.

Impaired Loans: Impaired loans are carried at the lower of cost or the fair value of the collateral for collateral-dependent loans less estimated costs to sell. Collateral is primarily in the form of real estate. 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.

Other Real Estate Owned: Other real estate owned is carried at the lower of the investment in the real estate or the fair value of the real estate less estimated selling costs. The use of independent appraisals and management's best judgment are significant inputs in arriving at the fair value measure of the underlying collateral and therefore other real estate owned is classified within level 3 of the fair value hierarchy.

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, 2016 (in thousands):

	September 30, 2016
	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
Governmental National Mortgage Association mortgage-backed securities	$	6,906	$	-	$	6,906	$	-
Federal Home Loan Mortgage Corporation mortgage-backed securities		1,929		-		1,929		-
Federal National Mortgage Association mortgage-backed securities		861		-		861		-
Federal Home Loan Mortgage Corporation Medium Term Note Step		359		-		359		-
Total investment securities available for sale	$	10,055	$	-	$	10,055	$	-
Total recurring fair value measurements	$	10,055	$	-	$	10,055	$	-
Nonrecurring fair value measurements
Impaired loans	$	1,610	$	-	$	-	$	1,610
Other real estate owned		720		-		-		720
Total nonrecurring fair value measurements	$	2,330	$	-	$	-	$	2,330

31

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 12 – Fair Value Measurements and Fair Values of Financial Instruments (Continued)

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, 2015 (in thousands):

	December 31, 2015
	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
Governmental National Mortgage Association mortgage-backed securities	$	1,990	$	-	$	1,990	$	-
Federal Home Loan Mortgage Corporation mortgage-backed securities		1,015		-		1,015		-
Total investment securities available for sale	$	3,005	$	-	$	3,005	$	-
Total recurring fair value measurements	$	3,005	$	-	$	3,005	$	-
Nonrecurring fair value measurements
Impaired loans	$	1,151	$	-	$	-	$	1,151
Other real estate owned		1,410		-		-		1,410
Total nonrecurring fair value measurements	$	2,561	$	-	$	-	$	2,561

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, 2016 and December 31, 2015 (in thousands):

	September 30, 2016
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	1,610	Appraisal of collateral (1)	Appraisal adjustments (2)		0%-31% (3%)
Other real estate owned	$	720	Appraisal of collateral (1)	Appraisal adjustments (2)		0%-29% (8%)

	December 31, 2015
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	1,151	Appraisal of collateral (1)	Appraisal adjustments (2)		0%-25% (3%)
Other real estate owned	$	1,410	Appraisal of collateral (1)	Appraisal adjustments (2)		0% -29% (5%)

________________

(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.

32

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 12 – Fair Value Measurements and Fair Values of Financial Instruments (Continued)

The estimated fair values of the Company's financial instruments were as follows at September 30, 2016 and December 31, 2015 (in thousands):

					Fair Value Measurements at
					September 30, 2016
	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
Cash and cash equivalents	$	17,680	$	17,680	$	17,680	$	-	$	-
Investment in interest-earning time deposits		6,063		6,112		-		-		6,112
Investment securities available for sale		10,055		10,055		-		10,055		-
Loans held for sale		4,247		4,419		-		4,419		-
Loans receivable, net		161,627		163,450		-		-		163,450
Accrued interest receivable		932		932		932		-		-
Investment in FHLB stock		593		593		593		-		-
Bank-owned life insurance		3,705		3,705		3,705		-		-
Financial Liabilities
Deposits		174,651		176,620		36,712		-		139,908
FHLB short-term borrowings		6,000		6,000		6,000		-		-
FHLB long-term borrowings		6,500		6,544		-		-		6,544
Accrued interest payable		136		136		136		-		-

					Fair Value Measurements at
					December 31, 2015
	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
Cash and cash equivalents	$	17,206	$	17,206	$	17,206	$	-	$	-
Investment in interest-earning time deposits		6,136		6,206		-		-		6,206
Investment securities available for sale		3,005		3,005		-		3,005		-
Loans held for sale		5,064		5,244		-		5,244		-
Loans receivable, net		143,305		145,134		-		-		145,134
Accrued interest receivable		983		983		983		-		-
Investment in FHLB stock		618		618		618		-		-
Bank-owned life insurance		3,638		3,638		3,638		-		-
Financial Liabilities
Deposits		149,229		150,644		33,438		-		117,206
FHLB short-term borrowings		6,000		6,000		6,000		-		-
FHLB long-term borrowings		7,500		7,479		-		-		7,479
Accrued interest payable		123		123		123		-		-

33

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 12 – Fair Value Measurements and Fair Values of Financial Instruments (Continued)

The following methods and assumptions were used to measure the fair value of financial instruments recorded at cost on the Company's consolidated balance sheets:

Cash and Cash Equivalents.  The carrying amounts reported in the consolidated balance sheets for cash and short-term instruments approximate those assets' fair values.

Interest-Earning Time Deposits. Fair values for interest-earning time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. The Company generally purchases amounts below the insured limit, limiting the amount of credit risk on these time deposits.

Loans Held for Sale.  Fair values of loans held for sale are based on commitments on hand from investors at prevailing market rates.

Loans Receivable, Net.  The fair values of loans are estimated using discounted cash flow methodology.  The discount rates take into account interest rates currently being offered to customers for loans with similar terms, the credit risk associated with the loan and market factors, including liquidity.  The valuation of the loan portfolio reflects discounts that the Company believes are consistent with transactions occurring in the market place for both performing and distressed loan types.  The carrying value that fair value is compared to is net of the allowance for loan losses and other associated premiums and discounts.  Due to the significant judgment involved in evaluating credit quality, loans are classified with Level 3 of the fair value hierarchy.

Accrued Interest Receivable.  The carrying amount of accrued interest receivable approximates its fair value.

Investment in Federal Home Loan Bank Stock.  The carrying amount of restricted investment in Federal Home Loan Bank stock approximates fair value, and considers the limited marketability of such securities.

Bank-Owned Life Insurance.  The carrying amount of the investment in bank-owned life insurance approximates its cash surrender value under the insurance policies.

Deposits.  The carrying amount is considered a reasonable estimate of fair value for demand savings deposit accounts.  The fair value of fixed maturity certificates of deposit is estimated by a discounted cash flow method using the rates currently offered for deposits of similar maturities.

Federal Home Loan Bank Borrowings.  Fair values of FHLB borrowings are estimated based on rates currently available to the Company for similar terms and remaining maturities.

Accrued Interest Payable.  The carrying amount of accrued interest payable approximates its fair value.

Off-Balance Sheet Financial Instruments.  Off-balance sheet financial instruments consist of commitments to extend credit.  Fair values for commitments to extend credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and the present credit standing of the counterparties.  The estimated fair value of the commitments to extend credit are insignificant and therefore are not presented in the above table.

34

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

Forward-Looking Statements Are Subject to Change

We make certain statements in this document as to what we expect may happen in the future. These statements usually contain the words "believe," "estimate," "project," "expect," "anticipate," "intend" or similar expressions. Because these statements look to the future, they are based on our current expectations and beliefs. Actual results or events may differ materially from those reflected in the forward-looking statements. You should be aware that our current expectations and beliefs as to future events are subject to change at any time, and we can give you no assurances that the future events will actually occur.

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.  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 loan 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, professional fees, 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, 2016 the Bank had five subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Real Estate, LLC, Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, and QOB Properties, LLC, each a Pennsylvania limited liability company.  The mortgage, real estate and abstract companies offer mortgage banking, real estate sales and title abstract services, respectively, 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.  On August 1, 2016, Quaint Oak Insurance Agency, LLC began operations by acquiring the renewal rights to the book of business produced and serviced by Signature Insurance Services, LLC, an independent insurance agency located in New Britain, Pennsylvania, that provides a broad range of personal and commercial insurance coverage solutions.  The aggregate purchase price was $1.0 million and this intangible asset is being amortized over ten years, which is the remaining life of the purchased book of business.

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. The following accounting policies comprise those that management believes 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 period or in future periods.

35

Allowance for Loan Losses.  The allowance for loan losses represents management's estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans receivable. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses.

The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company's past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower's ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.

The allowance consists of specific, general and unallocated components. The specific component relates to loans that are designated as impaired. For loans that are designated as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These significant factors may include changes in lending policies and procedures, changes in existing general economic and business conditions affecting our primary lending areas, credit quality trends, collateral value, loan volumes and concentrations, seasoning of the loan portfolio, recent loss experience in particular segments of the portfolio, duration of the current business cycle and bank regulatory examination results. The applied loss factors are reevaluated quarterly to ensure their relevance in the current economic environment.  Residential owner occupied mortgage lending generally entails a lower risk of default than other types of lending. Consumer loans and commercial real estate loans generally involve more risk of collectability because of the type and nature of the collateral and, in certain cases, the absence of collateral. It is the Company's policy to establish a specific reserve for loss on any delinquent loan when it determines that a loss is probable. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral if the loan is collateral dependent.  An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company's impaired loans are measured based on the estimated fair value of the loan's collateral.

36

A loan is identified as a troubled debt restructuring ("TDR") if the Company, for economic or legal reasons related to a debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider. Concessions granted under a TDR typically involve a temporary or permanent reduction in payments or interest rate or an extension of a loan's stated maturity date at less than a current market rate of interest. Loans identified as TDRs are designated as impaired.

For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property.

The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower's overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for all loans (except one-to-four family residential owner-occupied loans) where the total amount outstanding to any borrower or group of borrowers exceeds $500,000, or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans criticized special mention have potential weaknesses that deserve management's close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition, Federal regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management's comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate.

Income Taxes.  Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method.  Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various assets and liabilities and net operating loss carryforwards and gives current recognition to changes in tax rates and laws.  The realization of our deferred tax assets principally depends upon our achieving projected future taxable income.  We may change our judgments regarding future profitability due to future market conditions and other factors.  We may adjust our deferred tax asset balances if our judgments change.

37

Comparison of Financial Condition at September 30, 2016 and December 31, 2015

General. The Company's total assets at September 30, 2016 were $209.5 million, an increase of $25.3 million, or 13.7%, from $184.2 million at December 31, 2015. This growth in total assets was primarily due to an $18.3 million, or 12.8%, increase in loans receivable, net, a $7.1 million, or 234.6% increase in investment securities available for sale, a $999,000 increase in intangible assets, net of accumulated amortization, and a $474,000, or 2.8% increase in cash and cash equivalents. These increases were partially offset by an $817,000, or 16.1% decrease in loans held for sale and a $690,000, or 48.9% decrease in other real estate owned, net.

Cash and Cash Equivalents. Cash and cash equivalents increased $474,000, or 2.8%, from $17.2 million at December 31, 2015 to $17.7 million at September 30, 2016 as excess deposits, not used to fund loans or investment securities available for sale, were invested in overnight funds with the Federal Reserve Bank.

Investment Securities Available for Sale.  Investment securities available for sale increased $7.1 million, or 234.6%, from $3.0 million at December 31, 2015 to $10.1 million at September 30, 2016, as the Company purchased $7.8 million of GNMA, FNMA and FHLMC mortgage-backed securities and a Federal Home Loan Mortgage Corporation Medium Term Note Step with excess liquidity.  Principal repayments on these securities totaled $784,000 during the nine months ended September 30, 2016.

Loans Held for Sale.  Loans held for sale decreased $817,000, or 16.1%, from $5.1 million at December 31, 2015 to $4.2 million at September 30, 2016 as the Bank's mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $47.9 million of one-to-four family residential loans during the nine months ended September 30, 2016 and sold $48.8 million of loans in the secondary market during this same period.

Loans Receivable, Net.  Loans receivable, net, increased $18.3 million, or 12.8%, to $161.6 million at September 30, 2016 from $143.3 million December 31, 2015.  This increase was funded primarily from deposits and excess liquidity in cash and cash equivalents.  Increases within the portfolio occurred in commercial real estate loans which increased $16.3 million, or 34.3%, commercial business loans which increased $3.1 million, or 121.9%, and one-to-four family residential non-owner occupied loans which increased $2.2 million, or 4.2%. These increases were partially offset by decreases of $2.5 million, or 34.1%, in home equity loans, $211,000, or 1.3%, in construction loans, $150,000, or 1.2%, in multi-family residential loans, $67,000, or 1.2%, in one-to-four family residential owner occupied loans, $43,000, or 0.63% in other consumer loans, and $14,000, or 0.6%, in commercial lines of credit.  The Company continues its strategy of diversifying its loan portfolio with higher yielding and shorter-term loan products and selling substantially all of its newly originated one-to-four family owner-occupied loans into the secondary market.

Other Real Estate Owned, Net.  Other real estate owned (OREO), net, amounted to $720,000 at September 30, 2016, consisting of five properties. This compares to seven properties totaling $1.4 million at December 31, 2015.  During the quarter ended September 30, 2016 one property with a carrying value of $790,000 was sold and a loss of $14,000 realized on the transaction, and one property was written-down $40,000. The Company is in the process of marketing the other properties for sale.  Non-performing assets amounted to $2.2 million, or 1.07% of total assets at September 30, 2016 compared to $2.3 million, or 1.23% of total assets at December 31, 2015.

Deposits.  Total deposits increased $25.4 million, or 17.0%, to $174.7 million at September 30, 2016 from $149.2 million at December 31, 2015. This increase in deposits was primarily attributable to increases of $22.1 million, or 19.1% in certificates of deposit, $2.8 million, or 10.5% in money market accounts, and $1.8 million, or 74.6% in non-interest bearing check accounts, partially offset by a $1.3 million, or 39.4% decrease in savings accounts. The increases in certificates of deposit and money market accounts were due to the competitive interest rates offered by the Bank.

38

Federal Home Loan Bank Advances.  Federal Home Loan Bank borrowings decreased $1.0 million, or 7.4%, to $12.5 million at September 30, 2016 from $13.5 million at December 31, 2015.  During the quarter ended September 30, 2016, the Company used excess liquidity to pay-off $1.0 million of long-term fixed rate borrowings that matured in September 2016.

Stockholders' Equity.  Total stockholders' equity increased $1.3 million, or 6.6%, to $20.3 million at September 30, 2016 from $19.0 million at December 31, 2015.  Contributing to the increase was net income for the nine months ended September 30, 2016 of $1.0 million, the reissuance of treasury stock for exercised stock options of $133,000, common stock earned by participants in the employee stock ownership plan of $129,000, amortization of stock awards and options under our stock compensation plans of $96,000, the reissuance of treasury stock under the Bank's 401(k) Plan of $82,000, and a decrease in other comprehensive loss of $10,000. These increases were partially offset by dividends paid of $218,000 and the purchase of 1,097 shares of the Company's stock as part of the Company's stock repurchase program for an aggregate purchase price of $13,000.

Comparison of Operating Results for the Three Months Ended September 30, 2016 and 2015

General.  Net income amounted to $402,000 for the three months ended September 30, 2016, an increase of $92,000, or 29.7%, compared to net income of $310,000 for three months ended September 30, 2015.  The increase in net income on a comparative quarterly basis was primarily the result of increases in non-interest income of $283,000 and net interest income of $33,000, and a decrease in the provision for loan losses of $10,000, partially offset by an increase in non-interest expense of $173,000 and the provision for income taxes of $61,000.

Net Interest Income.  Net interest income increased $33,000, or 2.1%, to $1.64 million for the three months ended September 30, 2016 from $1.60 million for the three months ended September 30, 2015.  The increasewas driven by a $167,000, or 7.8% increase in interest income, partially offset by a $134,000, or 24.9% increase in interest expense. 

Interest Income.  Interest income increased $167,000, or 7.8%, to $2.3 million for the three months ended September 30, 2016 from $2.1 million for the three months ended September 30, 2015.  The increase in interest income was primarily due to a $15.6 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $146.2 million for the three months ended September 30, 2015 to an average balance of $161.8 million for the three months ended September 30, 2016, and had the effect of increasing interest income $224,000.  Partially offsetting this increase was a 26 basis point decline in the average yield on loans receivable, net, including loans held for sale, from 5.73% for the three months ended September 30, 2015 to 5.47% for the three months ended September 30, 2016, which had the effect of decreasing interest income by $105,000. Also contributing to the increase in interest income for the three months ended September 30, 2016 was a $9.7 million increase in average funds due from banks, interest-bearing, which increased from an average balance of $9.1 million for the three months ended September 30, 2015 to an average balance of $18.8 million for the three months ended September 30, 2016, and had the effect of increasing interest income $5,000.  In addition, the average yield on funds due from banks, interest-bearing, increased 33 basis points from 0.22% for the three months ended September 30, 2015 to 0.55% for the three months ended September 30, 2016, which had the effect of increasing interest income by $16,000.  Also contributing to the increase in interest income for the three months ended September 30, 2016 was a $6.8 million increase in average balance of investment securities available for sale from an average balance of $1.7 million for the three months ended September 30, 2015 to an average balance of $8.5 million for the three months ended September 30, 2016, which had the effect of increasing interest income $43,000.  Partially offsetting this increase was a 117 basis decrease in the average yield on investment securities available for sale from 2.57% for the three months ended September 30, 2016 to an average yield of 1.40% which had the effect of decreasing interest income $24,000.

39

Interest Expense.  Interest expense increased $134,000, or 24.9%, to $672,000 for the three months ended September 30, 2016 from $538,000 for the three months ended September 30, 2015.   The increase in interest expense was primarily attributable to a $30.4 million increase in average interest-bearing liabilities, which increased from an average balance of $150.0 million for the three months ended September 30, 2015 to an average balance of $180.4 million for the three months ended September 30, 2016, and had the effect of increasing interest expense $123,000.   This increase in average interest-bearing liabilities was primarily attributable to the $26.2 million increase in average certificate of deposit accounts which increased from an average balance of $108.0 million for the three months ended September 30, 2015 to an average balance of $134.1 million for the three months ended September 30, 2016, and had the effect of increasing interest expense $112,000.  Also contributing to this increase was a six basis point increase in the average rate on interest-bearing liabilities, from 1.43% for the three months ended September 30, 2015 to 1.49% for the three months ended September 30, 2016, which had the effect of increasing interest expense by $11,000.

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,
	2016							2015
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
Interest-earning assets:	(Dollars in thousands)
Due from banks, interest-bearing	$	18,833	$	26		0.55	%	$	9,090	$	5		0.22	%
Investment in interest-earning time deposits		6,120		32		2.09			6,112		24		1.57
Investment securities available for sale		8,547		30		1.40			1,712		11		2.57
Loans receivable, net (1) (2) (3)		161,840		2,214		5.47			146,228		2,095		5.73
Investment in FHLB stock		633		7		4.42			618		7		4.53
Total interest-earning assets		195,973		2,309		4.71	%		163,760		2,142		5.23	%
Non-interest-earning assets		9,425							7,625
Total assets	$	205,398						$	171,385
Interest-bearing liabilities:
Passbook accounts	$	1,182	$	-		-	%	$	1,360	$	1		0.29	%
Savings accounts		2,173		1		0.18			3,498		2		0.23
Money market accounts		29,614		60		0.81			23,644		47		0.80
Certificate of deposit accounts		134,099		577		1.72			107,981		461		1.71
Total deposits		167,068		638		1.53			136,483		511		1.50
FHLB short-term borrowings		6,000		8		0.53			6,000		5		0.33
FHLB long-term borrowings		7,294		26		1.43			7,500		22		1.17
Total interest-bearing liabilities		180,362		672		1.49	%		149,983		538		1.43	%
Non-interest-bearing liabilities		5,038							3,054
Total liabilities		185,400							153,037
Stockholders' Equity		19,998							18,348
Total liabilities and Stockholders' Equity	$	205,398						$	171,385
Net interest-earning assets	$	15,661						$	13,777
Net interest income; average interest rate spread			$	1,637		3.22	%			$	1,604		3.80	%
Net interest margin (4)						3.34	%						3.92	%
Average interest-earning assets to average interest-bearing liabilities						108.66	%						109.19	%

__________________________

(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 loan losses.

(3)Includes tax free municipal leases with an aggregate average balance of $111,000 and an average yield of 4.02% for the three months ended September 30, 2016 and an aggregate average balance of $154,000 and an average yield of 4.01% for the three months ended September 30, 2015.  The tax-exempt income from such loans has not been calculated on a tax equivalent basis.

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

40

Provision for Loan Losses.  The Company's provision for loan losses decreased $10,000, or 14.1%, from $71,000 for the three months ended September 30, 2015 to $61,000 for the three months ended September 30, 2016, based on an evaluation of the allowance relative to such factors as volume of the loan portfolio, concentrations of credit risk, prevailing economic conditions, prior loan loss experience and amount of non-performing loans at September 30, 2016.

Non-performing loans amounted to $1.5 million, or 0.95% of net loans receivable at September 30, 2016, consisting of eleven loans, seven of which are on non-accrual status and four of which are 90 days or more past due and accruing interest. Comparably, non-performing loans amounted to $852,000, or 0.59% of net loans receivable at December 31, 2015, consisting of nine loans, three of which were on non-accrual status and six of which were 90 days or more past due and accruing interest. The non- performing loans at September 30, 2016 include nine one-to-four family non-owner occupied residential loans and two commercial real estate loans, and we believe all are generally well-collateralized or adequately reserved for.  During the quarter ended September 30, 2016, no new loans were placed on non-accrual status. The allowance for loan losses as a percent of total loans receivable was 0.91% at both September 30, 2016 and December 31, 2015.

Other real estate owned, net, amounted to $720,000 at September 30, 2016, consisting of five properties. This compares to seven properties totaling $1.4 million at December 31, 2015.  During the quarter ended September 30, 2016 one property with a carrying value of $790,000 was sold and a loss of $14,000 realized on the transaction, and one property was written-down $40,000. The Company is in the process of marketing the other properties for sale.  Non-performing assets amounted to $2.2 million, or 1.07% of total assets at September 30, 2016 compared to $2.3 million, or 1.23% of total assets at December 31, 2015.

Non-Interest Income.  Non-interest income increased $283,000, or 62.9%, for the three months ended September 30, 2016 over the comparable period in 2015 primarily due to a 174,000, or 48.7% increase in net gain on the sales of residential mortgage loans, a $75,000 decrease on the loss on the sale of investment securities available for sale, a $60,000 increase in insurance commissions earned by Quaint Oak Insurance Agency, a wholly owned insurance subsidiary of Quaint Oak Bank which began operations on August 1, 2016, a $51,000 increase in gain on the sale of SBA loans, a $15,000 increase in mortgage banking and title abstract fees, and a $2,000 increase in other income. These increases were partially offset by a $52,000 increase in the loss on sales and write-downs of other real estate owned and a $42,000 decrease in other fees and service charges.

Non-Interest Expense.Non-interest expense increased $173,000, or 11.7%, from $1.5 million for the three months ended September 30, 2015 to $1.7 million for the three months ended September 30, 2016.  Salaries and employee benefits expense accounted for $190,000 of the change as this expense increased 20.2%, from $942,000 for the three months ended September 30, 2015 to $1.1 million for the three months ended September 30, 2016 due primarily to increased staff as the Company continues to expand its mortgage banking and lending operations.  Also contributing to the period over period increase was a $15,000 increase in other expense, a $3,000 increase in FDIC deposit insurance assessment, and a $2,000 increase in advertising expense.   Offsetting these increases was a $35,000 decrease in professional fees, a $1,000 decrease in directors' fees and expenses, and a $1,000 decrease in other real estate owned expense. The decrease in professional fees can be attributed primarily to a decrease in legal fees related to loan collections.

Provision for Income Tax.  The provision for income tax increased $61,000, or 32.3%, from $189,000 for the three months ended September 30, 2015 to $250,000 for the three months ended September 30, 2016 due primarily to the increase in pre-tax income as our effective tax rate remained relatively consistent at 38.3% for the 2016 period compared to 37.9% for the comparable period in 2015.

41

Comparison of Operating Results for the Nine Months Ended September 30, 2016 and 2015

General.  Net income amounted to $1.0 million for the nine months ended September 30, 2016, an increase of $150,000, or 16.8%, compared to net income of $893,000 for nine months ended September 30, 2015.  The increase in net income was primarily the result of increases in non-interest income of $434,000 and net interest income of $123,000 and a decrease in the provision for loan losses of $108,000, offset by increases in non-interest expense of $417,000 and the provision for income taxes of $98,000.

 Net Interest Income.  Net interest income increased $123,000, or 2.6%, to $4.9 million for the nine months ended September 30, 2016 from $4.7 million for the nine months ended September 30, 2015 due primarily to a$479,000, or 7.6% increase in interest income, partially offset by a $356,000, or 23.5% increase in interest expense. 

Interest Income.  Interest income increased $479,000, or 7.6%, to $6.7 million for the nine months ended September 30, 2016 from $6.3 million for the nine months ended September 30, 2015.  The increase in interest income was primarily due to a $15.9 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $139.6 million for the nine months ended September 30, 2015 to an average balance of $155.5 million for the nine months ended September 30, 2016, and had the effect of increasing interest income $694,000.  Partially offsetting this increase was a 26 basis point decline in the average yield on loans receivable, net, including loans held for sale, from 5.83% for the nine months ended September 30, 2015 to 5.57% for the nine months ended September 30, 2016, which had the effect of decreasing interest income by $303,000.  Also contributing to the increase in interest income for the nine months ended September 30, 2016 was a $10.0 million increase in average funds due from banks, interest-bearing, which increased from an average balance of $8.0 million for the nine months ended September 30, 2015 to an average balance of $18.0 million for the nine months ended September 30, 2016, and had the effect of increasing interest income $17,000.  In addition, the average yield on funds due from banks, interest-bearing, increased 30 basis points from 0.22% for the nine months ended September 30, 2015 to 0.52% for the nine months ended September 30, 2016, which had the effect of increasing interest income by $40,000.  Also contributing to the increase in interest income for the nine months ended September 30, 2016 was a $4.4 million increase in average balance of investment securities available for sale from an average balance of $1.7 million for the nine months ended September 30, 2015 to an average balance of $6.1 million for the nine months ended September 30, 2016, which had the effect of increasing interest income $96,000.  Partially offsetting this increase was a 141 basis point decrease in the average yield on investment securities available for sale from 2.95% for the nine months ended September 30, 2015 to an average yield of 1.54% for the nine months ended September 30, 2016 which had the effect of decreasing interest income $64,000.

Interest Expense.  Interest expense increased $356,000, or 23.5%, to $1.9 million for the nine months ended September 30, 2016 from $1.5 million for the nine months ended September 30, 2015.   The increase in interest expense was primarily attributable to a $27.9 million increase in average interest-bearing liabilities, which increased from an average balance of $143.0 million for the nine months ended September 30, 2015 to an average balance of $170.9 million for the nine months ended September 30, 2016, and had the effect of increasing interest expense $328,000.  This increase in average interest-bearing liabilities was primarily attributable to the $22.9 million increase in average certificate of deposit accounts which increased from an average balance of $102.7 million for the nine months ended September 30, 2015 to an average balance of $125.6 million for the nine months ended September 30, 2016, and had the effect of increasing interest expense $292,000.  Also contributing to this increase was a four basis point increase in the average rate on interest-bearing liabilities, from 1.42% for the nine months ended September 30, 2015 to 1.46% for the nine months ended September 30, 2016, which had the effect of increasing interest expense by $28,000.

42

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.

	Nine Months Ended September 30,
	2016							2015
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
Interest-earning assets:	(Dollars in thousands)
Due from banks, interest-bearing	$	17,994	$	70		0.52	%	$	8,000	$	13		0.22	%
Investment in interest-earning time deposits		6,135		82		1.78			6,411		72		1.50
Investment securities available for sale		6,080		70		1.54			1,716		38		2.95
Loans receivable, net (1) (2) (3)		155,459		6,497		5.57			139,587		6,106		5.83
Investment in FHLB stock		631		22		4.65			579		33		7.60
Total interest-earning assets		186,299		6,741		4.82	%		156,293		6,262		5.34	%
Non-interest-earning assets		8,995							7,246
Total assets	$	195,294						$	163,539
Interest-bearing liabilities:
Passbook accounts	$	1,268	$	1		0.11	%	$	1,711	$	2		0.16	%
Savings accounts		2,527		4		0.21			3,911		8		0.27
Money market accounts		28,099		169		0.80			21,998		126		0.76
Certificate of deposit accounts		125,589		1,600		1.70			102,726		1,312		1.70
Total deposits		157,483		1,774		1.50			130,346		1,448		1.48
FHLB short-term borrowings		6,000		24		0.53			6,000		14		0.31
FHLB long-term borrowings		7,434		76		1.36			6,643		56		1.12
Total interest-bearing liabilities		170,917		1,874		1.46	%		142,989		1,518		1.42	%
Non-interest-bearing liabilities		4,791							2,558
Total liabilities		175,708							145,547
Stockholders' Equity		19,586							17,992
Total liabilities and Stockholders' Equity	$	195,294						$	163,539
Net interest-earning assets	$	15,382						$	13,304
Net interest income; average interest rate spread			$	4,867		3.36	%			$	4,744		3.92	%
Net interest margin (4)						3.48	%						4.05	%
Average interest-earning assets to average interest-bearing liabilities						109.00	%						109.30	%

_______________________

(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 loan losses.

(3)Includes tax free municipal leases with an aggregate average balance of $104,000 and an average yield of 4.02% for the nine months ended September 30, 2016 and an aggregate average balance of $163,000 and an average yield of 4.06% for the nine months ended September 30, 2015.  The tax-exempt income from such loans has not been calculated on a tax equivalent basis.

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

43

Provision for Loan Losses.  The Company decreased its provision for loan losses by $108,000, or 38.6% from $280,000 for the nine months ended September 30, 2015 to $172,000 for the nine months ended September 30, 2016.  As was the case for the quarter, the decrease was based on an evaluation of the allowance relative to such factors as volume of the loan portfolio, concentrations of credit risk, prevailing economic conditions, prior loan loss experience and amount of non-performing loans.  See additional discussion under "Comparison of Operating Results for the Three Months Ended September 30, 2016 and 2015-Provision for Loan Losses."

Non-Interest Income.  Non-interest income increased $434,000, or 30.1%, for the nine months ended September 30, 2016 over the comparable period in 2015 primarily due to a $296,000, or 29.8% increase in net gain on the sales of residential mortgage loans, a $101,000 increase in gain on the sale of SBA loans, a $75,000 increase in mortgage banking and title abstract fees, a $75,000 decrease on the loss on the sale of investment securities available for sale, a $60,000 increase in insurance commissions earned by Quaint Oak Insurance Agency, a wholly owned insurance subsidiary of Quaint Oak Bank which began operations on August 1, 2016, a $9,000 increase in other income, and a $1,000 increase in income from bank-owned life insurance. These increases were partially offset by a $122,000 increase in the loss on sales and write-downs of other real estate owned and a $61,000 decrease in other fees and service charges.

Non-Interest Expense.  Non-interest expense increased $417,000, or 9.3%, from $4.5 million for the nine months ended September 30, 2015 to $4.9 million for the nine months ended September 30, 2016.  Salaries and employee benefits expense accounted for $341,000 of the change as this expense increased 11.4%, from $3.0 million for the nine months ended September 30, 2015 to $3.3 million for the nine months ended September 30, 2016.  As was the case for the quarter, the increase in salaries and employee benefits expense for the 2016 period compared to 2015 was primarily attributable to increased staff as the Company continues to expand its mortgage banking and lending operations. Also contributing to the period over period increase was a $29,000 increase in other expense, a $26,000 increase in occupancy and equipment expense, a $15,000 increase in other real estate owned expense, a $13,000 increase in FDIC deposit insurance assessment, a $2,000 increase in directors' fees and expenses, and a $1,000 increase in advertising expense.   Offsetting these increases was a $10,000 decrease in professional fees.

Provision for Income Tax.  The provision for income tax increased $98,000, or 17.8%, from $552,000 for the nine months ended September 30, 2015 to $650,000 for the nine months ended September 30, 2016 due primarily to the increase in pre-tax income as our effective tax rate remained consistent at 38.4% for the 2016 period and 38.2% for the comparable period in 2015.

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.  In addition, the Company invests excess funds in short-term interest-earning assets that provide additional liquidity.  At September 30, 2016, the Company's cash and cash equivalents amounted to $17.7 million.  At such date, the Company also had $3.1 million invested in interest-earning time deposits maturing in one year or less.

44

                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, 2016, Quaint Oak Bank had outstanding commitments to originate loans of $15.1 million and commitments under unused lines of credit of $14.8 million.

At September 30, 2016, certificates of deposit scheduled to mature in less than one year totaled $40.8 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, 2016, we had $12.5 million of borrowings from the FHLB and had $89.4 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, 2016 Quaint Oak Bank had $950,000 in borrowing capacity with the Federal Reserve Bank of Philadelphia.  There were no borrowings under this facility at September 30, 2016.

Our stockholders' equity amounted to $20.3 million at September 30, 2016, an increase of $1.3 million, or 6.6% from $19.0 million at December 31, 2015.  Contributing to the increase was net income for the nine months ended September 30, 2016 of $1.0 million, the reissuance of treasury stock for exercised stock options of $133,000, common stock earned by participants in the employee stock ownership plan of $129,000, amortization of stock awards and options under our stock compensation plans of $96,000, the reissuance of treasury stock under the Bank's 401(k) Plan of $82,000, and a decrease in other comprehensive loss of $10,000. These increases were partially offset by dividends paid of $218,000 and the purchase of 1,097 shares of the Company's stock as part of the Company's stock repurchase program for an aggregate purchase price of $13,000.  For further discussion of the stock compensation plans, see Note 11 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, 2016, Quaint Oak Bank exceeded each of its capital requirements with ratios of 8.88%, 13.13%, 13.13% and 14.22%, 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.

45

Commitments.  At September 30, 2016, we had unfunded commitments under lines of credit of $14.8 million and $15.1 million of commitments to originate loans.  We had no commitments to advance additional amounts pursuant to outstanding lines of credit or undisbursed construction loans.

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, 2016.  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 third fiscal quarter of fiscal 2016 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

46

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

Not applicable.

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, 2016 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, 2016 – July 31, 2016		-	$	-		-		39,329
August 1, 2016 – August 31, 2016		600		11.90		600		38,729
September 1, 2016 – September 30, 2016		-		-		-		38,729
Total		600	$	11.90		600		38,729

Notes to this table:

(1) On February 21, 2014, the Board of Directors of Quaint Oak Bancorp approved its fourth share repurchase program which provides for the repurchase of up to 69,432 shares (adjusted to reflect the two-for-one stock split), or approximately 2.5% of the Company's then issued and outstanding shares of common stock, and announced the fourth repurchase program on Form 8-K filed on February 26, 2014.  The repurchase program does not have an expiration date.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

47

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	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document.

48

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 14, 2016	By:	/s/Robert T. Strong
		Robert T. Strong President and Chief Executive Officer
Date:  November 14, 2016	By:	/s/John J. Augustine
		John J. Augustine Executive Vice President and Chief Financial Officer

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Robert T. Strong, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Quaint Oak Bancorp, Inc. (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  November 14, 2016	/s/Robert T. Strong
	Robert T. Strong President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, John J. Augustine certify that:

1.I have reviewed this quarterly report on Form 10-Q of Quaint Oak Bancorp, Inc. (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  November 14, 2016	/s/John J. Augustine
	John J. Augustine Executive Vice President and Chief Financial Officer

EX-32.0

EXHIBIT 32.0

SECTION 1350 CERTIFICATION

Each of Robert T. Strong, President and Chief Executive Officer and John J. Augustine, Executive Vice President and Chief Financial Officer of Quaint Oak Bancorp, Inc. (the "Company"), hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1)The quarterly report on Form 10-Q of the Company for the period ended September 30, 2016 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m(a) or 78o(d); and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  November 14, 2016	By:	/s/Robert T. Strong
		Robert T. Strong President and Chief Executive Officer
Date:  November 14, 2016	By:	/s/John J.Augustine
		John J. Augustine Executive Vice President and Chief Financial Officer

Note: A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act has been provided to Quaint Oak Bancorp, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. 

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Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 08, 2016
Document Information [Line Items]
Entity Registrant Name	QUAINT OAK BANCORP INC
Entity Central Index Key	0001391933
Trading Symbol	qnto
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		1,879,243
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Amendment Flag	false

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Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Due from banks, non-interest-bearing	$ 460	$ 43
Due from banks, interest-bearing	17,220	17,163
Cash and cash equivalents	17,680	17,206
Investment in interest-earning time deposits	6,063	6,136
Investment securities available for sale	10,055	3,005
Loans held for sale	4,247	5,064
Loans receivable, net of allowance for loan losses (2016 $1,485; 2015 $1,313)	161,627	143,305
Accrued interest receivable	932	983
Investment in Federal Home Loan Bank stock, at cost	593	618
Bank-owned life insurance	3,705	3,638
Premises and equipment, net	1,744	1,834
Intangibles, net of accumulated amortization	1,044	45
Other real estate owned, net	720	1,410
Prepaid expenses and other assets	1,078	924
Total Assets	209,488	184,168
Liabilities
Non-interest bearing	4,203	2,407
Interest-bearing	170,448	146,822
Total deposits	174,651	149,229
Federal Home Loan Bank short-term borrowings	6,000	6,000
Federal Home Loan Bank long-term borrowings	6,500	7,500
Accrued interest payable	136	123
Advances from borrowers for taxes and insurance	1,437	1,859
Accrued expenses and other liabilities	466	421
Total Liabilities	189,190	165,132
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; 2,777,250 issued; 1,879,284 and 1,841,475 outstanding at September 30, 2016 and December 31, 2015, respectively	28	28
Additional paid-in capital	14,178	14,013
Treasury stock, at cost: 2016 897,966 shares; 2015 935,775 shares	(4,670)	(4,859)
Employee Stock Ownership Plan (ESOP)	(337)	(387)
Recognition & Retention Plan Trust (RRP)	(47)	(70)
Accumulated other comprehensive loss	(2)	(12)
Retained earnings	11,148	10,323
Total Stockholders' Equity	20,298	19,036
Total Liabilities and Stockholders' Equity	$ 209,488	$ 184,168

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Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Loans receivable, allowance for loan losses	$ 1,485	$ 1,313
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	9,000,000	9,000,000
Common stock, shares issued (in shares)	2,777,250	2,777,250
Common stock, shares outstanding (in shares)	1,879,284	1,841,475
Treasury stock, shares (in shares)	897,966	935,775

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Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest Income
Interest on loans	$ 2,213,000	$ 2,095,000	$ 6,497,000	$ 6,106,000
Interest and dividends on short-term investments and investment securities	96,000	47,000	244,000	156,000
Total Interest Income	2,309,000	2,142,000	6,741,000	6,262,000
Interest Expense
Interest on deposits	638,000	511,000	1,774,000	1,448,000
Interest on Federal Home Loan Bank borrowings	34,000	27,000	100,000	70,000
Total Interest Expense	672,000	538,000	1,874,000	1,518,000
Net Interest Income	1,637,000	1,604,000	4,867,000	4,744,000
Provision for loan losses	61,000	71,000	172,000	280,000
Net Interest Income after Provision for Loan Losses	1,576,000	1,533,000	4,695,000	4,464,000
Non-Interest Income
Mortgage banking and title abstract fees	129,000	114,000	409,000	334,000
Other fees and services charges	(20,000)	22,000	32,000	93,000
Insurance commissions	60,000		60,000
Income from bank-owned life insurance	23,000	23,000	67,000	66,000
Net gain on the sale of residential mortgage loans	531,000	357,000	1,289,000	993,000
Gain on sale of SBA loans	51,000		108,000	7,000
Loss on sale of investment securities available for sale		(75,000)		(75,000)
Loss on sales and write-downs of other real estate owned	(54,000)	(2,000)	(126,000)	(4,000)
Other	13,000	11,000	36,000	27,000
Total Non-Interest Income	733,000	450,000	1,875,000	1,441,000
Non-Interest Expense
Salaries and employee benefits	1,132,000	942,000	3,321,000	2,980,000
Directors' fees and expenses	48,000	49,000	155,000	153,000
Occupancy and equipment	167,000	167,000	479,000	453,000
Professional fees	94,000	129,000	291,000	301,000
FDIC deposit insurance assessment	35,000	32,000	103,000	90,000
Other real estate owned expense	13,000	14,000	32,000	17,000
Advertising	23,000	21,000	84,000	83,000
Other	145,000	130,000	412,000	383,000
Total Non-Interest Expense	1,657,000	1,484,000	4,877,000	4,460,000
Income before Income Taxes	652,000	499,000	1,693,000	1,445,000
Income taxes	250,000	189,000	650,000	552,000
Net Income	$ 402,000	$ 310,000	$ 1,043,000	$ 893,000
Earnings per share - basic (in dollars per share)	$ 0.22	$ 0.18	$ 0.59	$ 0.52
Average shares outstanding - basic (in shares)	1,792,673	1,706,946	1,774,343	1,714,689
Earnings per share - diluted (in dollars per share)	$ 0.21	$ 0.16	$ 0.54	$ 0.48
Average shares outstanding - diluted (in shares)	1,950,413	1,888,113	1,935,757	1,876,708

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income	$ 402,000	$ 310,000	$ 1,043,000	$ 893,000
Other Comprehensive Income (Loss):
Unrealized gains (losses) on investment securities available-for-sale	(5,000)	(14,000)	15,000	(21,000)
Income tax effect	2,000	4,000	(5,000)	7,000
Reclassification adjustment for losses on sale of investment securities included in net income		75,000		75,000
Income tax effect		(25,000)		(25,000)
Other comprehensive income (loss)	(3,000)	40,000	10,000	36,000
Total Comprehensive Income	$ 399,000	$ 350,000	$ 1,053,000	$ 929,000

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Consolidated Statements of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($)	The 401(k) Plan [Member] Common Stock [Member]	The 401(k) Plan [Member] Additional Paid-in Capital [Member]	The 401(k) Plan [Member] Treasury Stock [Member]	The 401(k) Plan [Member] Unallocated Common Stock Held by Benefit Plans[Member]	The 401(k) Plan [Member] AOCI Attributable to Parent [Member]	The 401(k) Plan [Member] Retained Earnings [Member]	The 401(k) Plan [Member]	The 2013 Stock Incentive Plan [Member] Common Stock [Member]	The 2013 Stock Incentive Plan [Member] Additional Paid-in Capital [Member]	The 2013 Stock Incentive Plan [Member] Treasury Stock [Member]	The 2013 Stock Incentive Plan [Member] Unallocated Common Stock Held by Benefit Plans[Member]	The 2013 Stock Incentive Plan [Member] AOCI Attributable to Parent [Member]	The 2013 Stock Incentive Plan [Member] Retained Earnings [Member]	The 2013 Stock Incentive Plan [Member]	The 2008 Stock Option Plan [Member] Common Stock [Member]	The 2008 Stock Option Plan [Member] Additional Paid-in Capital [Member]	The 2008 Stock Option Plan [Member] Treasury Stock [Member]	The 2008 Stock Option Plan [Member] Unallocated Common Stock Held by Benefit Plans[Member]	The 2008 Stock Option Plan [Member] AOCI Attributable to Parent [Member]	The 2008 Stock Option Plan [Member] Retained Earnings [Member]	The 2008 Stock Option Plan [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Unallocated Common Stock Held by Benefit Plans[Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
BALANCE (in shares) at Dec. 31, 2015																						1,841,475						1,841,475
BALANCE at Dec. 31, 2015																						$ 28,000	$ 14,013,000	$ (4,859,000)	$ (457,000)	$ (12,000)	$ 10,323,000	$ 19,036,000
Common stock allocated by ESOP																							78,000		51,000			129,000
Treasury stock purchased (in shares)																						(1,097)
Treasury stock purchased																								(13,000)				(13,000)
Reissuance of treasury stock (in shares)	6,992							5,396							26,518
Reissuance of treasury stock, value		$ 46,000	$ 36,000				$ 82,000		$ (28,000)	$ 28,000						$ (5,000)	$ 138,000				$ 133,000
Stock based compensation expense																							96,000					96,000
Release of 4,864 vested RRP shares																							(22,000)		22,000
Cash dividends declared ($0.118 per share)																											(218,000)	(218,000)
Net income																											1,043,000	1,043,000
Other comprehensive income, net																										10,000		$ 10,000
BALANCE (in shares) at Sep. 30, 2016																						1,879,284						1,879,284
BALANCE at Sep. 30, 2016																						$ 28,000	$ 14,178,000	$ (4,670,000)	$ (384,000)	$ (2,000)	$ 11,148,000	$ 20,298,000

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Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - Common Stock [Member]	9 Months Ended
	Sep. 30, 2016 $ / shares shares
Release of vested shares (in shares) | shares	4,864
Cash dividends declared per share (in dollars per share) | $ / shares	$ 0.078

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities
Net income	$ 1,043,000	$ 893,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	172,000	280,000
Depreciation expense	140,000	132,000
Amortization of intangibles	22,000	3,000
Net amortization of securities premiums	14,000
Accretion of deferred loan fees and costs, net	(227,000)	(247,000)
Stock-based compensation expense	225,000	211,000
Realized loss on sale of investment securities available for sale		75,000
Net gain on the sale of loans	(1,289,000)	(993,000)
Gain on the sale of SBA loans	(108,000)	(7,000)
Net loss on sale and write-downs of other real estate owned	126,000	4,000
Increase in the cash surrender value of bank-owned life insurance	(67,000)	(66,000)
Changes in assets and liabilities which provided (used) cash:
Loans held for sale-originations	(47,942,000)	(38,029,000)
Loans held for sale-proceeds	50,048,000	39,291,000
Accrued interest receivable	51,000	(141,000)
Prepaid expenses and other assets	(159,000)	(175,000)
Accrued interest payable	13,000	4,000
Accrued expenses and other liabilities	45,000	18,000
Net Cash Provided by Operating Activities	2,107,000	1,253,000
Cash Flows from Investing Activities
Net decrease in investment in interest-earning time deposits	73,000	524,000
Purchase of investment securities available for sale	(7,833,000)	(35,000)
Principal repayments of investment securities available for sale	784,000
Proceeds from sale of investment securities available for sale		1,720,000
Net increase in loans receivable	(18,159,000)	(19,351,000)
Net decrease (increase) in investment in Federal Home Loan Bank stock	25,000	(91,000)
Proceeds from the sale of other real estate owned	844,000	160,000
Capitalized expenditures on other real estate owned	(280,000)	(109,000)
Purchase of premises and equipment	(50,000)	(315,000)
Purchase of intangibles	(1,021,000)	(1,000)
Net Cash Used in Investing Activities	(25,617,000)	(17,498,000)
Cash Flows from Financing Activities
Net increase in demand deposits and savings accounts	3,273,000	2,875,000
Net increase in certificate accounts	22,149,000	13,526,000
Proceeds from Federal Home Loan Bank short-term borrowings		1,000,000
Repayment of Federal Home Loan Bank short-term borrowings		(2,000,000)
Proceeds from Federal Home Loan Bank long-term borrowings		3,000,000
Repayment of Federal Home Loan Bank long-term borrowings	(1,000,000)
Dividends paid	(218,000)	(182,000)
Purchase of treasury stock	(13,000)	(9,000)
Proceeds from the reissuance of treasury stock	82,000	40,000
Proceeds from the exercise of stock options	133,000	25,000
Decrease in advances from borrowers for taxes and insurance	(422,000)	(420,000)
Net Cash Provided by Financing Activities	23,984,000	17,855,000
Net Increase in Cash and Cash Equivalents	474,000	1,610,000
Cash and Cash Equivalents – Beginning of Year	17,206,000	13,937,000
Cash and Cash Equivalents – End of Year	17,680,000	15,547,000
Cash payments for interest	1,861,000	1,514,000
Cash payments for income taxes	560,000	665,000
Transfer of loans to other real estate owned		$ 670,000

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Note 1 - Financial Statement Presentation and Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

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. (the "Company") and its wholly-owned subsidiary, Quaint Oak Bank (the "Bank") along with its wholly-owned subsidiaries.  At September 30, 2016, the Bank has five wholly-owned subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Real Estate, LLC, Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, and QOB Properties, LLC, each a Pennsylvania limited liability company.  The mortgage, real estate and abstract companies offer mortgage banking, real estate sales and title abstract services, respectively, 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.  On August 1, 2016, Quaint Oak Insurance Agency, LLC began operations by acquiring the renewal rights to the book of business produced and serviced by Signature Insurance Services, LLC, an independent insurance agency located in New Britain, Pennsylvania, that provides a broad range of personal and commercial insurance coverage solutions.  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's two regional offices includes Bucks, Montgomery, Lehigh and Northampton Counties, Pennsylvania, and northeast Philadelphia and the surrounding area.  The principal deposit products offered by the Bank are certificates of deposit, passbook savings accounts, savings accounts and money market accounts.  Loan products offered are fixed and adjustable rate residential and commercial mortgages, construction loans, home equity loans, auto 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, 2015 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 2015 Annual Report on Form 10-K.  The results of operations for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

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 loan losses, the assessment of other-than-temporary impairment of investment and mortgage-backed securities, valuation of other real estate owned, and the valuation of deferred tax assets.

Loans Receivable. 

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees and costs.  Interest income is accrued on the unpaid principal balance.  Loan origination fees and costs are deferred and recognized as an adjustment of the yield (interest income) of the related loans.  The Bank is generally amortizing these amounts over the contractual life of the loan.

The loans receivable portfolio is segmented into residential loans, commercial real estate loans, construction loans and consumer loans.  The residential loan segment has two classes: one-to-four family residential owner occupied loans and one-to-four residential family non-owner occupied loans.  The commercial real estate loan segment consists of the following classes: multi-family (five or more) residential, commercial real estate and commercial lines of credit.  Construction loans are generally granted for the purpose of building a single residential home.  Commercial business loans are loans to businesses primarily for purchase of business essential equipment. Business essential equipment is equipment necessary for a business to support or assist with the day-to-day operation or profitability of the business.  The consumer loan segment consists of the following classes: home equity loans and other consumer loans.  Included in the home equity class are home equity loans and home equity lines of credit.  Included in the other consumer are loans secured by saving accounts and auto loans.

The accrual of interest is generally discontinued when principal or interest has become 90 days past due unless the loan is in the process of collection and is either guaranteed or well secured.  When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses.  Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management's judgment as to the collectability of principal.  Generally, a loan is restored to accrual status when the obligation is brought current, it has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Allowance for Loan Losses. 

The allowance for loan losses represents management's estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans receivable. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses.

The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company's past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower's ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.

The allowance consists of specific, general and unallocated components. The specific component relates to loans that are designated as impaired. For loans that are designated as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These significant factors may include changes in lending policies and procedures, changes in existing general economic and business conditions affecting our primary lending areas, credit quality trends, collateral value, loan volumes and concentrations, seasoning of the loan portfolio, recent loss experience in particular segments of the portfolio, duration of the current business cycle and bank regulatory examination results. The applied loss factors are reevaluated quarterly to ensure their relevance in the current economic environment.  Residential owner occupied mortgage lending generally entails a lower risk of default than other types of lending. Consumer loans and commercial real estate loans generally involve more risk of collectability because of the type and nature of the collateral and, in certain cases, the absence of collateral. It is the Company's policy to establish a specific reserve for loss on any delinquent loan when it determines that a loss is probable. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral if the loan is collateral dependent.  An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company's impaired loans are measured based on the estimated fair value of the loan's collateral.

A loan is identified as a troubled debt restructuring ("TDR") if the Company, for economic or legal reasons related to a debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider. Concessions granted under a TDR typically involve a temporary or permanent reduction in payments or interest rate or an extension of a loan's stated maturity date at less than a current market rate of interest. Loans identified as TDRs are designated as impaired.

For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower's overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for all loans (except one-to-four family residential owner-occupied loans) where the total amount outstanding to any borrower or group of borrowers exceeds $500,000, or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans criticized as special mention have potential weaknesses that deserve management's close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition, Federal regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management's comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate.

Loans Held for Sale

. 

Loans originated by the Bank's mortgage banking subsidiary, Quaint Oak Mortgage, LLC, are intended for sale in the secondary market and are carried at the lower of cost or fair value (LOCOM). Gains and losses on loan sales (sales proceeds minus carrying value) are recorded in noninterest income, and direct loan origination costs, commissions and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan.

Federal Home Loan Bank Stock

. 

Federal law requires a member institution of the Federal Home Loan Bank (FHLB) system to hold restricted stock of its district Federal Home Loan Bank according to a predetermined formula.  FHLB stock is carried at cost and evaluated for impairment. When evaluating FHLB stock for impairment, its value is determined based on the ultimate recoverability of the par value of the stock. We evaluate our holdings of FHLB stock for impairment each reporting period. No impairment charges were recognized on FHLB stock during the three or nine months ended September 30, 2016 and 2015.

Bank Owned Life Insurance (BOLl). 

The Company purchases bank owned life insurance as a mechanism for funding various employee benefit costs.  The Company is the beneficiary of these policies that insure the lives of certain officers of its subsidiaries. The Company has recognized the cash surrender value under the insurance policies as an asset in the consolidated balance sheets. Changes in the cash surrender value are recorded in non-interest income in the consolidated statements of income.

Other Real Estate Owned.

Other real estate owned or foreclosed assets are comprised of property acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure and loans classified as in-substance foreclosures.  A loan is classified as in-substance foreclosure when the Bank has taken possession of the collateral regardless of whether formal foreclosure proceedings take place.  Other real estate properties are initially recorded at fair value, net of estimated selling costs at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of cost or fair value less estimated costs to sell.  Net revenue and expenses from operations and additions to the valuation allowance are included in other expenses.  The Company has one one-to-four family residential non-owner occupied loan and one multi-family loan for which foreclosure proceedings are in process at September 30, 2016.  The total recorded investment is $385,000.

Intangible Assets. 

Intangible assets on the consolidated balance sheets are comprised of the acquisition by Quaint Oak Insurance Agency of the renewal rights to the book of business produced and serviced by Signature Insurance Services, LLC on August 1, 2016 at a total cost of $1.0 million. These renewal rights are being amortized over a ten year period based upon the annual retention rate of the book of business.  This amortization is included in non-interest expense.  Also included in intangible assets are mortgage servicing rights recognized as separate assets when mortgage loans are sold and the servicing rights are retained. These capitalized mortgage servicing rights are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing period of the underlying mortgage loans.

Share-Based Compensation. 

Compensation expense for share-based compensation awards is based on the grant date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award.

At September 30, 2016, the Company has three share-based plans: the 2008 Recognition and Retention Plan ("RRP"), the 2008 Stock Option Plan, and the 2013 Stock Incentive Plan.  Awards under these plans were made in May 2008 and 2013.  These plans are more fully described in Note 11.

The Company also has an employee stock ownership plan ("ESOP").  This plan is more fully described in Note 11.  As ESOP shares are committed to be released and allocated among participants, the Company recognizes compensation expense equal to the average market price of the shares over the period earned.

Comprehensive Income (Loss). 

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income.  Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the consolidated balance sheet and  along with net income, are components of comprehensive income.

Earnings per Share. 

Amounts reported in earnings per share reflect earnings available to common stockholders' for the period divided by the weighted average number of shares of common stock outstanding during the period, exclusive of unearned ESOP shares, unvested restricted stock (RRP) shares and treasury shares.  Stock options and unvested restricted stock are regarded as potential common stock and are considered in the diluted earnings per share calculations to the extent they would have a dilutive effect if converted to common stock, computed using the "treasury stock" method.

Recent Accounting Pronouncements.

  In May 2014, the FASB issued

ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard)

. The Update's core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period.  The Company is evaluating the effect of adopting this new accounting Update.

In August 2015, the FASB issued

ASU 2015-14, Revenue from Contracts with Customers (Topic 606)

. The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year.  Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.  All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019.  The Company is evaluating the effect of adopting this new accounting Update.

In January 2016, the FASB issued

ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10):  Recognition and Measurement of Financial Assets and Financial Liabilities

.  This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments.  Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (g) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (h) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets.  For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  For all other entities including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the a  mendments in this Update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In February 2016, the FASB issued

ASU 2016-02, Leases (Topic 842)

.  The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet.  A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.  A short-term lease id defined as one in which: (a) the lease term is 12 months or less, and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise.  For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis.  For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years.  For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020.  The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In March 2016, the FASB issued

ASU 2016-08, Revenue from Contracts with Customers (Topic 606)

.  The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity's ordinary activities) in exchange for consideration.  The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09,

Revenue from Contracts with Customers (Topic 606)

, which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU No. 2015-14,

Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date

, defers the effective date of Update 2014-09 by one year.  The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In March 2016, the FASB issued

ASU 2016-09, Compensation – Stock Compensation (Topic 718)

. The amendments in this Update affect all entities that issue share-based payment awards to their employees. The standards in this Update provide simplification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as with equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition to those simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004),

Share-Based Payment

. This should not result in a change in practice because the guidance that is being superseded was never effective. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In April 2016, the FASB issued

ASU 2016-10, Revenue from Contracts with Customers (Topic 606)

.  The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance.  The amendments in this Update affect the guidance in ASU 2014-09,

Revenue from Contracts with Customers (Topic 606)

, which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14,

Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date

, defers the effective date of Update 2014-09 by one year.  The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In May 2016, the FASB issued

ASU 2016-12, Revenue from Contracts with Customers (Topic 606)

, which among other things clarifies the objective of the collectability criterion in Topic 606, as well as certain narrow aspects of Topic 606. The amendments in this Update affect the guidance in ASU 2014-09,

Revenue from Contracts with Customers (Topic 606)

, which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14,

Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date

, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In June 2016, the FASB issued

ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13")

, which changes the impairment model for most financial assets. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations.  The underlying premise of the ASU is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management's current estimate of credit losses that are expected to occur over the remaining life of a financial asset.  The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted.  The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In August 2016, the FASB issued

ASU 2016-15, Statement of Cash Flows (Topic 230):  Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"

), which addresses eight specific cash flow issues with the objective of reducing diversity in practice.  Among these include recognizing cash payments for debt prepayment or debt extinguishment as cash outflows for financing activities; cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; and cash proceeds received from the settlement of bank-owned life insurance policies should be classified as cash inflows from investing activities while the cash payments for premiums on bank-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities.  The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact the adoption of the standard will have on the Company's statement of cash flows.

Reclassifications. 

Certain items in the 2015 consolidated financial statements have been reclassified to conform to the presentation in the 2016 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.

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Note 2 - Stock Split

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note 2 – Stock Split

On August 13, 2015, the Company's Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend effective for shareholders of record on August 24, 2015 that was distributed on September 8, 2015. All per share amounts in this report have been restated to reflect this stock split. An amount equal to the par value of the additional common shares issued pursuant to the stock split was reflected as a transfer from additional paid-in capital to common stock on the consolidated financial statements as of the year ended December 31, 2015.

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Note 3 - Earnings Per Share

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

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 have been 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 months and nine months ended September 30, 2016 and 2015, all unvested restricted stock program awards and outstanding stock options representing shares were 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,
	2016		2015		2016		2015
Net Income	$	402,000	$	310,000	$	1,043,000	$	893,000
Weighted average shares outstanding – basic		1,792,673		1,706,946		1,774,343		1,714,689
Effect of dilutive common stock equivalents		157,740		181,167		161,414		162,019
Adjusted weighted average shares outstanding – diluted		1,950,413		1,888,113		1,935,757		1,876,708
Basic earnings per share	$	0.22	$	0.18	$	0.59	$	0.52
Diluted earnings per share	$	0.21	$	0.16	$	0.54	$	0.48

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Note 4 - Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

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 months and the nine months ended September 30, 2016 and 2015 (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,
	2016			2015			2016			2015
Balance at the beginning of the period	$	1		$	(40	)	$	(12	)	$	(36	)
Other comprehensive income (loss) before classifications		(3	)		(10	)		10			(14	)
Amount reclassified from accumulated other comprehensive income		-			50			-			50
Total other comprehensive income (loss)		(3	)		40			10			36
Balance at the end of the period	$	(2	)	$	-		$	(2	)	$	-

 

_________________

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

The following table presents significant amounts reclassified out of each component of accumulated other comprehensive loss for the three months and the nine months ended September 30, 2016 and 2015 (in thousands):

Details About Other Comprehensive Loss	Amount Reclassified from Accumulated Other Comprehensive Loss (1)										Affected Line Item in the Statement of Income
	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2016		2015			2016		2015
Unrealized losses on investment securities available for sale	$	-	$	(75	)	$	-	$	(75	)	Loss on sales of investment securities
		-		25			-		25		Income taxes
	$	-	$	(50	)	$	-	$	(50	)	Net of tax

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Note 5 - Investment in Interest-earning Time Deposits

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Investments and Other Noncurrent Assets [Text Block]

Note 5 – Investment in Interest-Earning Time Deposits

The investment in interest-earning time deposits as of September 30, 2016 and December 31, 2015, by contractual maturity, are shown below:

	September 30, 2016		December 31, 2015
	(In Thousands)
Due in one year or less	$	3,107	$	3,585
Due after one year through five years		2,956		2,551
	$	6,063	$	6,136

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Note 6 - Investment Securities Available for Sale

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 6 – 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, 2016 and December 31, 2015 are summarized below (in thousands): 

	September 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale:
Mortgage-backed securities:
Governmental National Mortgage Association securities	$	6,902	$	10	$	(6	)	$	6,906
Federal Home Loan Mortgage Corporation securities		1,928		2		(1	)		1,929
Federal National Mortgage Association securities		868		-		(7	)		861
Total mortgage-backed securities		9,698		12		(14	)		9,696
Federal Home Loan Mortgage Corporation Medium Term Note Step		360		-		(1	)		359
Total available-for-sale-securities	$	10,058	$	12	$	(15	)	$	10,055

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale:
Mortgage-backed securities:
Governmental National Mortgage Association securities	$	2,003	$	-	$	(13	)	$	1,990
Federal Home Loan Mortgage Corporation securities		1,020		-		(5	)		1,015
Total mortgage-backed securities	$	3,023	$	-	$	(18	)	$	3,005

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 September 30, 2016 and December 31, 2015 (in thousands):

	September 30, 2016
			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
Governmental National Mortgage Association securities		5	$	3,946	$	(6	)	$	-	$	-	$	3,946	$	(6	)
Federal Home Loan Mortgage Corporation securities		1		984		(1	)		-		-		984		(1	)
Federal National Mortgage Association securities		1		861		(7	)		-		-		861		(7	)
Federal Home Loan Mortgage Corporation Medium Term Note Step		1		359		(1	)		-		-		359		(1	)
		8	$	6,150	$	(15	)	$	-	$	-	$	6,150	$	(15	)

	December 31, 2015
			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
Governmental National Mortgage Association mortgage-backed securities		2	$	1,990	$	(13	)	$	-	$	-	$	1,990	$	(13	)
Federal Home Loan Mortgage Corporation mortgage-backed security		1		1,015		(5	)		-		-		1,015		(5	)
Total		3	$	3,005	$	(18	)	$	-	$	-	$	3,005	$	(18	)

At September 30, 2016, there were eight securities in an unrealized loss position that at such date had an aggregate depreciation of 0.24% from the Company's amortized cost basis. Management believes that the estimated fair value of the securities disclosed above is primarily dependent on the movement of market interest rates.  Management evaluated the length of time and the extent to which the fair value has been less than cost and the financial condition and near term prospects of the issuer, including any specific events which may influence the operations of the issuer.  The Company has the ability and intent to hold the securities until the anticipated recovery of fair value occurs. Management does not believe any individual unrealized loss as of September 30, 2016 represents an other-than-temporary impairment. There were no impairment charges recognized during the three and nine months ended September 30, 2016 or 2015.

In September 2015 the Company sold its investment securities available for sale portfolio consisting of two bond funds totaling $1.7 million and realized gross losses of $75,000 on the transaction. There were no realized gross gains on the transaction.

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Financing Receivables [Text Block]

Note 7 - Loans Receivable, Net and Allowance for Loan Losses

The composition of net loans receivable is as follows:

	September 30, 2016			December 31, 2015
	(In Thousands)
Real estate loans:
One-to-four family residential:
Owner occupied	$	5,710		$	5,777
Non-owner occupied		53,191			51,036
Total one-to-four family residential		58,901			56,813
Multi-family (five or more) residential		12,252			12,402
Commercial real estate		63,869			47,550
Commercial lines of credit		2,201			2,215
Construction		15,889			16,100
Home equity loans		4,886			7,409
Total real estate loans		157,998			142,489
Commercial business		5,716			2,576
Other consumer		28			71
Total Loans		163,742			145,136
Deferred loan fees and costs		(630	)		(518	)
Allowance for loan losses		(1,485	)		(1,313	)
Net Loans	$	161,627		$	143,305

The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company's internal risk rating system as of September 30, 2016 and December 31, 2015

  (in thousands): 

	September 30, 2016
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	5,710	$	-	$	-	$	-	$	5,710
One-to-four family residential non-owner occupied		52,072		106		1,013		-		53,191
Multi-family residential		12,252		-		-		-		12,252
Commercial real estate and lines of credit		64,630		117		1,323		-		66,070
Construction		14,015		-		1,874		-		15,889
Home equity		4,886		-		-		-		4,886
Commercial business		5,716		-		-		-		5,716
Other consumer		28		-		-		-		28
	$	159,309	$	223	$	4,210	$	-	$	163,742

	December 31, 2015
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	5,777	$	-	$	-	$	-	$	5,777
One-to-four family residential non-owner occupied		49,457		331		1,248		-		51,036
Multi-family residential		12,402		-		-		-		12,402
Commercial real estate and lines of credit		48,185		262		1,318		-		49,765
Construction		14,621		-		1,479		-		16,100
Home equity		7,409		-		-		-		7,409
Commercial business		2,576		-		-		-		2,576
Other consumer		71		-		-		-		71
	$	140,498	$	593	$	4,045	$	-	$	145,136

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2016 as well as the average recorded investment and related interest income for the period then ended (in thousands):

	September 30, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		1,110		1,122		-		1,183		21
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		262		262		-		262		-
Construction		-		-		-		-		-
Home equity		50		50		-		83		5
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		96		96		30		197		12
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		133		11		133		7
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		1,206		1,218		30		1,380		33
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		395		395		11		395		7
Construction		-		-		-		-		-
Home equity		50		50		-		83		5
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	1,651	$	1,663	$	41	$	1,858	$	45

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2015 as well as the average recorded investment and related interest income for the year then ended (in thousands):

	December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	828	$	15
One-to-four family residential non-owner occupied		653		659		-		1,464		62
Multi-family residential		-		-		-		66		5
Commercial real estate and lines of credit		-		-		-		1,085		77
Construction		-		-		-		-		-
Home equity		84		84		-		87		7
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		321		321		33		556		22
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		133		7		332		9
Construction		-		-		-		-		-
Home equity		-		-		-		45		4
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	828	$	15
One-to-four family residential non-owner occupied		974		980		33		2,020		84
Multi-family residential		-		-		-		66		5
Commercial real estate and lines of credit		133		133		7		1,417		86
Construction		-		-		-		-		-
Home equity		84		84		-		132		11
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	1,191	$	1,197	$	40	$	4,463	$	201

The loan portfolio also includes certain loans that have been modified in a troubled debt restructuring, where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from loss mitigation activities and could include reductions in the interest rate, payment extensions, forbearance, or other actions.  At September 30, 2016, the Company had eight loans totaling $737,000 that were identified as troubled debt restructurings.  All eight of these loans were performing in accordance with their modified terms.  At December 31, 2015, the Company had nine loans totaling $781,000 that were identified as troubled debt restructurings.  If a TDR is placed on non-accrual it is not reverted back to accruing status until the borrower makes timely payments as contracted for at least nine months and future collection under the revised terms is probable.

The following tables present the Company's TDR loans as of September 30, 2016 and December 31, 2015 (dollar amounts in thousands):

	September 30, 2016
	Number of Contracts		Recorded Investment		Non- Accrual		Accruing		Related Allowance
One-to-four family residential owner occupied		-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		5		554		-		554		30
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		1		133		-		133		11
Construction		-		-		-		-		-
Home equity		2		50		-		50		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		8	$	737	$	-	$	737	$	41

	December 31, 2015
	Number of Contracts		Recorded Investment		Non- Accrual		Accruing		Related Allowance
One-to-four family residential owner occupied		-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		5		564		-		564		25
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		1		133		-		133		7
Construction		-		-		-		-		-
Home equity		3		84		-		84		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		9	$	781	$	-	$	781	$	32

The contractual aging of the TDRs in the table above as of September 30, 2016 and December 31, 2015 is as follows (in thousands):

	September 30, 2016
	Accruing Past Due Less than 30 Days		Past Due 30-89 Days		Greater than 90 Days		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		554		-		-		-		554
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		-		-		-		133
Construction		-		-		-		-		-
Home equity		50		-		-		-		50
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	737	$	-	$	-	$	-	$	737

	December 31, 2015
	Accruing Past Due Less than 30 Days		Past Due 30-89 Days		Greater than 90 Days		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		564		-		-		-		564
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		-		-		-		133
Construction		-		-		-		-		-
Home equity		84		-		-		-		84
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	781	$	-	$	-	$	-	$	781

During the three and nine months ended September 30, 2016 there were no new loans identified as TDRs and one loan previously identified as a TDR was paid-off in the second quarter of 2016.

Any reserve for an impaired TDR loan is based upon the present value of the future expected cash flows discounted at the loan's original effective rate or upon the fair value of the collateral less costs to sell, if the loan is deemed collateral dependent. At September 30, 2016 there were no commitments to lend additional funds to debtors whose loan terms have been modified as TDRs.

The general practice of the Bank is to work with borrowers so that they are able to pay back their loan in full. If a borrower continues to be delinquent or cannot meet the terms of a TDR modification and the loan is determined to be uncollectible, the loan will be charged off.  The Company did not have any troubled debt restructurings default within the nine months ended September 30, 2016.

Following is a summary, by loan portfolio class, of changes in the allowance for loan losses for the three and nine months ended September 30, 2016 and recorded investment in loans receivable as of September 30, 2016 (in thousands):

	September 30, 2016
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non- Owner Occupied		Multi- Family Residential			Commercial Real Estate and Lines of Credit		Construction			Home Equity			Commercial Business and Other Consumer		Unallocated			Total
For the Three Months Ended September 30, 2016
Allowance for loan losses:
Beginning balance	$	46		$	525	$	66		$	484	$	115		$	51		$	37	$	100		$	1,424
Charge-offs		-			-		-			-		-			-			-		-			-
Recoveries		-			-		-			-		-			-			-		-			-
Provision		(9	)		25		(11	)		63		28			(19	)		14		(30	)		61
Ending balance	$	37		$	550	$	55		$	547	$	143		$	32		$	51	$	70		$	1,485
For the Nine Months Ended September 30, 2016
Allowance for loan losses:
Beginning balance	$	55		$	486	$	81		$	389	$	153		$	50		$	18	$	81		$	1,313
Charge-offs		-			-		-			-		-			-			-		-			-
Recoveries		-			-		-			-		-			-			-		-			-
Provision		(18	)		64		(26	)		158		(10	)		(18	)		33		(11	)		172
Ending balance	$	37		$	550	$	55		$	547	$	143		$	32		$	51	$	70		$	1,485
Ending balance evaluated for impairment:
Individually	$	-		$	30	$	-		$	11	$	-		$	-		$	-	$	-		$	41
Collectively	$	37		$	520	$	55		$	536	$	143		$	32		$	51	$	70		$	1,444
Loans receivable:
Ending balance:	$	5,710		$	53,191	$	12,252		$	66,070	$	15,889		$	4,886		$	5,744	$	-		$	163,742
Ending balance evaluated for impairment:
Individually	$	-		$	1,206	$	-		$	395	$	-		$	50		$	-	$	-		$	1,651
Collectively	$	5,710		$	51,985	$	12,252		$	65,675	$	15,889		$	4,836		$	5,744	$	-		$	162,091

The Bank allocated increased allowance for loan loss provisions to the commercial real estate and lines of credit, the 1-4 family residential non-owner occupied, and the commercial business loans portfolio classes for the three and nine months ended September 30, 2016, due primarily to increased balances in these portfolio classes. 

The Bank allocated increased allowance for loan loss provision to the construction loan portfolio class for the three months ended September 30, 2016, due primarily to an increase in delinquencies in this portfolio class.

Following is a summary, by loan portfolio class, of changes in the allowance for loan losses for the three and nine months ended September 30, 2015 (in thousands):

	September 30, 2015
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non- Owner Occupied			Multi- Family Residential		Commercial Real Estate and Lines of Credit			Construction			Home Equity			Commercial Business and Other Consumer			Unallocated			Total
For the Three Months Ended September 30, 2015
Allowance for loan losses:
Beginning balance	$	60		$	369		$	65	$	412		$	203		$	73		$	23		$	71		$	1,276
Charge-offs		-			(12	)		-		(21	)		-			(45	)		-			-			(78	)
Recoveries		-			-			-		21			-			-			-			-			21
Provision		(1	)		140			1		(53	)		(35	)		15			(5	)		9			71
Ending balance	$	59		$	497		$	66	$	359		$	168		$	43		$	18		$	80		$	1,290
For the Nine Months Ended September 30, 2015
Allowance for loan losses:
Beginning balance	$	75		$	418		$	60	$	324		$	122		$	46		$	7		$	96		$	1,148
Charge-offs		-			(93	)		-		(21	)		-			(45	)		-			-			(159	)
Recoveries		-			-			-		21			-			-			-			-			21
Provision		(16	)		172			6		35			46			42			11			(16	)		280
Ending balance	$	59		$	497		$	66	$	359		$	168		$	43		$	18		$	80		$	1,290
Ending balance evaluated for impairment:
Individually	$	-		$	21		$	-	$	7		$	-		$	-		$	-		$	-		$	28
Collectively	$	59		$	476		$	66	$	352		$	168		$	43		$	18		$	80		$	1,262

The Bank allocated increased allowance for loan loss provisions to the one-to-four family residential non-owner occupied portfolio class for the three months and nine months ended September 30, 2015 due primarily to increased balances and specific reserves needed on impaired loans.  The Bank allocated increased allowance for loan loss provisions to the commercial real estate and lines of credit and construction portfolio classes for the nine months ended September 30, 2015, due primarily to increased balances in these portfolio classes.

Following is a summary, by loan portfolio class, of changes in the allowance for loan losses for the year ended December 31, 2015 and recorded investment in loans receivable as of December 31, 2015 (in thousands):

	December 31, 2015
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non- Owner Occupied			Multi- Family Residential		Commercial Real Estate and Lines of Credit			Construction		Home Equity			Commercial Business and Other Consumer		Unallocated			Total
Allowance for loan losses:
Beginning balance	$	75		$	418		$	60	$	324		$	122	$	46		$	7	$	96		$	1,148
Charge-offs		-			(110	)		-		(21	)		-		(45	)		-		-			(176	)
Recoveries		-			-			-		21			-		-			-		-			21
Provision		(20	)		178			21		65			31		49			11		(15	)		320
Ending balance	$	55		$	486		$	81	$	389		$	153	$	50		$	18	$	81		$	1,313
Ending balance evaluated for impairment
Individually	$	-		$	33		$	-	$	7		$	-	$	-		$	-	$	-		$	40
Collectively	$	55		$	453		$	81	$	382		$	153	$	50		$	18	$	81		$	1,273
Loans receivable:
Ending balance	$	5,777		$	51,036		$	12,402	$	49,765		$	16,100	$	7,409		$	2,647	$	-		$	145,136
Ending balance evaluated for impairment
Individually	$	-		$	974		$	-	$	133		$	-	$	84		$	-	$	-		$	1,191
Collectively	$	5,777		$	50,062		$	12,402	$	49,632		$	16,100	$	7,325		$	2,647	$	-		$	143,945

The following table presents nonaccrual loans by classes of the loan portfolio as of September 30, 2016 and December 31, 2015 (in thousands):

	September 30, 2016		December 31, 2015
One-to-four family residential owner occupied	$	-	$	-
One-to-four family residential non-owner occupied		652		186
Multi-family residential		-		-
Commercial real estate and lines of credit		262		-
Construction		-		-
Home equity		-		-
Commercial business		-		-
Other consumer		-		-
	$	914	$	186

Non-performing loans, which consist of non-accruing loans plus accruing loans 90 days or more past due, amounted to $1.5 million and $852,000 at September 30, 2016 and December 31, 2015, respectively.  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.

For the three and nine months ended September 30, 2016 and 2015 there was no interest income recognized on non-accrual loans on a cash basis.  Interest income foregone on non-accrual loans was approximately $82,000 and $48,000 for the nine months ended September 30, 2016 and 2015, respectively.

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. The following tables present the classes of the loan portfolio summarized by the past due status as of September 30, 2016 and December 31, 2015 (in thousands):

	September 30, 2016
	30-90 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable > 90 Days and Accruing
One-to-four family residential owner occupied	$	323	$	-	$	323	$	5,387	$	5,710	$	-
One-to-four family residential non-owner occupied		1,033		870		1,903		51,288		53,191		218
Multi-family residential		-		-		-		12,252		12,252		-
Commercial real estate and lines of credit		979		660		1,639		64,431		66,070		398
Construction		1,063		-		1,063		14,826		15,889		-
Home equity		171		-		171		4,715		4,886		-
Commercial business		-		-		-		5,716		5,716		-
Other consumer		-		-		-		28		28		-
	$	3,569	$	1,530	$	5,099	$	158,643	$	163,742	$	616

	December 31, 2015
	30-90 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable > 90 Days and Accruing
One-to-four family residential owner occupied	$	253	$	-	$	253	$	5,524	$	5,777	$	-
One-to-four family residential non-owner occupied		1,227		590		1,817		49,219		51,036		404
Multi-family residential		-		-		-		12,402		12,402		-
Commercial real estate and lines of credit		894		262		1,156		48,609		49,765		262
Construction		558		-		558		15,542		16,100		-
Home equity		55		-		55		7,354		7,409		-
Commercial business		-		-		-		2,576		2,576		-
Other consumer		-		-		-		71		71		-
	$	2,987	$	852	$	3,839	$	141,297	$	145,136	$	666

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Note 8 - Intangibles, Net

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

Note 8 – Intangibles, Net

On August 1, 2016, Quaint Oak Insurance Agency, LLC began operations by acquiring the renewal rights to the book of business produced and serviced by Signature Insurance Services, LLC, 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.  This intangible asset is being amortized over ten years, which is the remaining life of the purchased book of business.  The accumulated amortization for the three and the nine months ended September 30, 2016 was $17,000.

Also included in intangible assets are mortgage servicing rights recognized as separate assets when mortgage loans are sold and the servicing rights are retained. The total mortgage servicing rights intangibles at September 30, 2016 and December 31, 2015 totaled $61,000 and $45,000, respectively.  During the three and nine months ended September 30, 2016, approximately $2,000 and $5,000 in amortization was recognized, respectively.  During the three and nine months ended September 30, 2015, approximately $1,000 and $3,000 in amortization was recognized, respectively.

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Note 9 - Deposits

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Deposit Liabilities Disclosures [Text Block]

Note 9 – Deposits

Deposits consist of the following classifications (in thousands):

	September 30, 2016		December 31, 2015
Non-interest bearing checking accounts	$	4,203	$	2,407
Passbook accounts		1,161		1,185
Savings accounts		1,984		3,275
Money market accounts		29,363		26,571
Certificates of deposit		137,940		115,791
Total deposits	$	174,651	$	149,229

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Note 10 - Borrowings

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

Note 10 – Borrowings

Federal Home Loan Bank advances consist of the following at September 30, 2016 and December 31, 2015 (in thousands):

	September 30, 2016					December 31, 2015
	Amount		Weighted Interest Rate			Amount		Weighted Interest Rate
Short-term borrowings	$	6,000		0.46	%	$	6,000		0.45	%
Fixed rate borrowings maturing:
2016		-		-	%	$	1,000		0.88	%
2017		2,500		1.15			2,500		1.15
2018		3,000		1.46			3,000		1.46
2019		1,000		2.02			1,000		2.02
Total FHLB long-term debt	$	6,500		1.42	%	$	7,500		1.35	%

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Note 11 - Stock Compensation Plans

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 11 – Stock Compensation Plans

Employee Stock Ownership Plan

The Company adopted an Employee Stock Ownership Plan (ESOP) during fiscal 2007 for the benefit of employees who meet the eligibility requirements of the plan.  Using proceeds from a loan from the Company, the ESOP purchased 8%, or 222,180 shares of the Company's then outstanding common stock in the open market at an average price of $4.68 (split-adjusted) for a total of $1.0 million.  The Bank makes cash contributions to the ESOP on a quarterly basis sufficient to enable the ESOP to make the required loan payments to the Company.  The loan bears an interest rate of 7.75% per annum, with principal and interest to be paid quarterly in equal installments over 15 years. The loan is secured by the unallocated shares of common stock held by the ESOP.

Shares of the Company's common stock purchased by the ESOP are held in a suspense account and reported as unallocated common stock held by the ESOP in stockholders' equity until released for allocation to participants.  As the debt is repaid, shares are released from collateral and are allocated to each eligible participant based on the ratio of each such participant's base compensation to the total base compensation of eligible plan participants.  As the unearned shares are committed to be released and allocated among participants, the Company recognizes compensation expense equal to the average market value of the shares, and the shares become outstanding for earnings per share computations.  During the three and nine months ended September 30, 2016, the Company recognized $43,000 and $129,000 of ESOP expense, respectively.  During the three and nine months ended September 30, 2015, the Company recognized $42,000 and $115,000 of ESOP expense, respectively.

Recognition & Retention and Stock Incentive Plans

In May 2008, the shareholders of Quaint Oak Bancorp approved the adoption of the 2008 Recognition and Retention Plan (the "RRP") and Trust Agreement.  In order to fund the RRP, the 2008 Recognition and Retention Plan Trust acquired 111,090 shares of the Company's stock in the open market at an average price of $4.68 (split adjusted) totaling $520,000.  In May 2013, the shareholders of Quaint Oak Bancorp approved the adoption of the 2013 Stock Incentive Plan (the "Stock Incentive Plan").  The Stock Incentive Plan provides that no more than 48,750, or 25%, of the shares may be granted as share awards.

As of September 30, 2016, a total of 20,524 share awards were unvested under the RRP and Stock Incentive Plan and up to 21,968 share awards were available for future grant under the Stock Incentive Plan and none under the RRP.  The RRP and Stock Incentive Plan share awards have vesting periods from five to seven years.

A summary of the status of the share awards under the RRP and Stock Incentive Plan as of September 30, 2016 and 2015 and changes during the nine months ended September 30, 2016 and 2015 is as follows:

	September 30, 2016					September 30, 2015
	Number of Shares			Weighted Average Grant Date Fair Value		Number of Shares			Weighted Average Grant Date Fair Value
Unvested at the beginning of the period		30,784		$	8.10		41,966		$	8.09
Granted		-			-		-			-
Vested		(10,260	)		8.10		(10,582	)		7.73
Forfeited		-			-		(800	)		8.10
Unvested at the end of the period		20,524		$	8.10		30,584		$	8.21

Compensation expense on the share awards is recognized ratably over the five to seven year vesting period in an amount which is equal to the fair value of the common stock at the date of grant.  During the three and nine months ended September 30, 2016, approximately $21,000 and $62,000 in compensation expense was recognized, respectively. A tax benefit of approximately $7,000 and $21,000, respectively, was recognized during each of these periods.  During the three and nine months ended September 30, 2015, approximately $19,000 and $62,000 in compensation expense was recognized, respectively. A tax benefit of approximately $6,000 and $15,000, respectively, was recognized during each of these periods.  As of September 30, 2016, approximately $136,000 in additional compensation expense will be recognized over the remaining service period of approximately 1.6 years.

Stock Option and Stock Incentive Plans

In May 2008, the shareholders of Quaint Oak Bancorp approved the adoption of the 2008 Stock Option Plan (the "Option Plan").  The Option Plan authorizes the grant of stock options to officers, employees and directors of the Company to acquire 277,726 shares of common stock with an exercise price no less than the fair market value on the date of the grant.  The Stock Incentive Plan approved by shareholders in May 2013 covered a total of 195,000 shares, of which 48,750 may be share awards, for a balance of 146,250 stock options assuming all the share awards are granted.

For grants in May 2008, the Compensation Committee of the Board of Directors determined to grant the stock options at an exercise price equal to $5.00 per share (split-adjusted) which is higher than the fair market value of the common stock on the grant date.  Stock options granted in May 2013 have an exercise price of $8.10 per share (split adjusted), the fair market value of the common stock on the date of grant. All incentive stock options issued under the Option Plan and the Stock Incentive Plan are intended to comply with the requirements of Section 422 of the Internal Revenue Code.

As of September 30, 2016, a total of 327,748 grants of stock options were outstanding under the Option Plan and Stock Incentive Plan and 56,276 stock options were available for future grant under the Stock Incentive Plan and none under the Option Plan.  Options will become vested and exercisable over a five to seven year period and are generally exercisable for a period of ten years after the grant date.

A summary of option activity under the

Company's Option Plan and Stock Incentive Plan of September 30

, 2016 and 2015 and changes during the nine months ended September 30

, 2016 and 2015 is

as follows:

	2016							2015
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)
Outstanding at the beginning of the year		354,266		$	6.33		4.7		369,140		$	6.30		5.7
Granted		-			-		-		-			-		-
Exercised		(26,518	)		5.00		-		(4,960	)		5.00		-
Forfeited		-			-		-		(1,920	)		8.10		-
Outstanding at end of period		327,748		$	6.44		4.0		362,260		$	6.30		4.8
Exercisable at end of period		266,148		$	6.06		1.6		271,780		$	5.70		2.6

During the three and nine months ended September 30, 2016 and 2015, approximately $12,000 and $34,000 in compensation expense was recognized, respectively.  A tax benefit of approximately $1,000 and $3,000, respectively, was recognized during each of these periods.  As of September 30, 2016, approximately $73,000 in additional compensation expense will be recognized over the remaining service period of approximately 1.6 years.

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Note 12 - Fair Value Measurements and Fair Values of Financial Instruments

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note 12 – 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 value 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.

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

Investment Securities Available-For-Sale:

The fair value of securities available for sale are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or 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.

Impaired Loans:

Impaired loans are carried at the lower of cost or the fair value of the collateral for collateral-dependent loans less estimated costs to sell. Collateral is primarily in the form of real estate. 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.

Other Real Estate Owned:

Other real estate owned is carried at the lower of the investment in the real estate or the fair value of the real estate less estimated selling costs. The use of independent appraisals and management's best judgment are significant inputs in arriving at the fair value measure of the underlying collateral and therefore other real estate owned is classified within level 3 of the fair value hierarchy.

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, 2016 (in thousands):

	September 30, 2016
	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
Governmental National Mortgage Association mortgage-backed securities	$	6,906	$	-	$	6,906	$	-
Federal Home Loan Mortgage Corporation mortgage-backed securities		1,929		-		1,929		-
Federal National Mortgage Association mortgage-backed securities		861		-		861		-
Federal Home Loan Mortgage Corporation Medium Term Note Step		359		-		359		-
Total investment securities available for sale	$	10,055	$	-	$	10,055	$	-
Total recurring fair value measurements	$	10,055	$	-	$	10,055	$	-
Nonrecurring fair value measurements
Impaired loans	$	1,610	$	-	$	-	$	1,610
Other real estate owned		720		-		-		720
Total nonrecurring fair value measurements	$	2,330	$	-	$	-	$	2,330

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, 2015 (in thousands):

	December 31, 2015
	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
Governmental National Mortgage Association mortgage-backed securities	$	1,990	$	-	$	1,990	$	-
Federal Home Loan Mortgage Corporation mortgage-backed securities		1,015		-		1,015		-
Total investment securities available for sale	$	3,005	$	-	$	3,005	$	-
Total recurring fair value measurements	$	3,005	$	-	$	3,005	$	-
Nonrecurring fair value measurements
Impaired loans	$	1,151	$	-	$	-	$	1,151
Other real estate owned		1,410		-		-		1,410
Total nonrecurring fair value measurements	$	2,561	$	-	$	-	$	2,561

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, 2016 and December 31, 2015 (in thousands):

	September 30, 2016
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	1,610	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	31%	(3%)
Other real estate owned	$	720	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	29%	(8%)

	December 31, 2015
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	1,151	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	25%	(3%)
Other real estate owned	$	1,410	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	29%	(5%)

________________

(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 estimated fair values of the Company's financial instruments were as follows at September 30, 2016 and December 31, 2015 (in thousands):

					Fair Value Measurements at
					September 30, 2016
	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
Cash and cash equivalents	$	17,680	$	17,680	$	17,680	$	-	$	-
Investment in interest-earning time deposits		6,063		6,112		-		-		6,112
Investment securities available for sale		10,055		10,055		-		10,055		-
Loans held for sale		4,247		4,419		-		4,419		-
Loans receivable, net		161,627		163,450		-		-		163,450
Accrued interest receivable		932		932		932		-		-
Investment in FHLB stock		593		593		593		-		-
Bank-owned life insurance		3,705		3,705		3,705		-		-
Financial Liabilities
Deposits		174,651		176,620		36,712		-		139,908
FHLB short-term borrowings		6,000		6,000		6,000		-		-
FHLB long-term borrowings		6,500		6,544		-		-		6,544
Accrued interest payable		136		136		136		-		-

					Fair Value Measurements at
					December 31, 2015
	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
Cash and cash equivalents	$	17,206	$	17,206	$	17,206	$	-	$	-
Investment in interest-earning time deposits		6,136		6,206		-		-		6,206
Investment securities available for sale		3,005		3,005		-		3,005		-
Loans held for sale		5,064		5,244		-		5,244		-
Loans receivable, net		143,305		145,134		-		-		145,134
Accrued interest receivable		983		983		983		-		-
Investment in FHLB stock		618		618		618		-		-
Bank-owned life insurance		3,638		3,638		3,638		-		-
Financial Liabilities
Deposits		149,229		150,644		33,438		-		117,206
FHLB short-term borrowings		6,000		6,000		6,000		-		-
FHLB long-term borrowings		7,500		7,479		-		-		7,479
Accrued interest payable		123		123		123		-		-

The following methods and assumptions were used to measure the fair value of financial instruments recorded at cost on the Company's consolidated balance sheets:

Cash and Cash Equivalents. 

The carrying amounts reported in the consolidated balance sheets for cash and short-term instruments approximate those assets' fair values.

Interest-Earning Time Deposits.

Fair values for interest-earning time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. The Company generally purchases amounts below the insured limit, limiting the amount of credit risk on these time deposits.

Loans Held for Sale

.  Fair values of loans held for sale are based on commitments on hand from investors at prevailing market rates.

Loans Receivable, Net. 

The fair values of loans are estimated using discounted cash flow methodology.  The discount rates take into account interest rates currently being offered to customers for loans with similar terms, the credit risk associated with the loan and market factors, including liquidity.  The valuation of the loan portfolio reflects discounts that the Company believes are consistent with transactions occurring in the market place for both performing and distressed loan types.  The carrying value that fair value is compared to is net of the allowance for loan losses and other associated premiums and discounts.  Due to the significant judgment involved in evaluating credit quality, loans are classified with Level 3 of the fair value hierarchy.

Accrued Interest Receivable. 

The carrying amount of accrued interest receivable approximates its fair value.

Investment in Federal Home Loan Bank Stock. 

The carrying amount of restricted investment in Federal Home Loan Bank stock approximates fair value, and considers the limited marketability of such securities.

Bank-Owned Life Insurance.

  The carrying amount of the investment in bank-owned life insurance approximates its cash surrender value under the insurance policies.

Deposits. 

The carrying amount is considered a reasonable estimate of fair value for demand savings deposit accounts.  The fair value of fixed maturity certificates of deposit is estimated by a discounted cash flow method using the rates currently offered for deposits of similar maturities.

Federal Home Loan Bank Borrowings. 

Fair values of FHLB borrowings are estimated based on rates currently available to the Company for similar terms and remaining maturities.

Accrued Interest Payable. 

The carrying amount of accrued interest payable approximates its fair value.

Off-Balance Sheet Financial Instruments. 

Off-balance sheet financial instruments consist of commitments to extend credit.  Fair values for commitments to extend credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and the present credit standing of the counterparties.  The estimated fair value of the commitments to extend credit are insignificant and therefore are not presented in the above table.

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Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Financial Presentation.

The consolidated financial statements include the accounts of Quaint Oak Bancorp, Inc. (the "Company") and its wholly-owned subsidiary, Quaint Oak Bank (the "Bank") along with its wholly-owned subsidiaries.  At September 30, 2016, the Bank has five wholly-owned subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Real Estate, LLC, Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, and QOB Properties, LLC, each a Pennsylvania limited liability company.  The mortgage, real estate and abstract companies offer mortgage banking, real estate sales and title abstract services, respectively, 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.  On August 1, 2016, Quaint Oak Insurance Agency, LLC began operations by acquiring the renewal rights to the book of business produced and serviced by Signature Insurance Services, LLC, an independent insurance agency located in New Britain, Pennsylvania, that provides a broad range of personal and commercial insurance coverage solutions.  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's two regional offices includes Bucks, Montgomery, Lehigh and Northampton Counties, Pennsylvania, and northeast Philadelphia and the surrounding area.  The principal deposit products offered by the Bank are certificates of deposit, passbook savings accounts, savings accounts and money market accounts.  Loan products offered are fixed and adjustable rate residential and commercial mortgages, construction loans, home equity loans, auto 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, 2015 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 2015 Annual Report on Form 10-K.  The results of operations for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

Use of Estimates, Policy [Policy Text Block]

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 loan losses, the assessment of other-than-temporary impairment of investment and mortgage-backed securities, valuation of other real estate owned, and the valuation of deferred tax assets.

Finance, Loans and Leases Receivable, Policy [Policy Text Block]

Loans Receivable. 

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees and costs.  Interest income is accrued on the unpaid principal balance.  Loan origination fees and costs are deferred and recognized as an adjustment of the yield (interest income) of the related loans.  The Bank is generally amortizing these amounts over the contractual life of the loan.

The loans receivable portfolio is segmented into residential loans, commercial real estate loans, construction loans and consumer loans.  The residential loan segment has two classes: one-to-four family residential owner occupied loans and one-to-four residential family non-owner occupied loans.  The commercial real estate loan segment consists of the following classes: multi-family (five or more) residential, commercial real estate and commercial lines of credit.  Construction loans are generally granted for the purpose of building a single residential home.  Commercial business loans are loans to businesses primarily for purchase of business essential equipment. Business essential equipment is equipment necessary for a business to support or assist with the day-to-day operation or profitability of the business.  The consumer loan segment consists of the following classes: home equity loans and other consumer loans.  Included in the home equity class are home equity loans and home equity lines of credit.  Included in the other consumer are loans secured by saving accounts and auto loans.

The accrual of interest is generally discontinued when principal or interest has become 90 days past due unless the loan is in the process of collection and is either guaranteed or well secured.  When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses.  Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management's judgment as to the collectability of principal.  Generally, a loan is restored to accrual status when the obligation is brought current, it has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Allowance for Loan Losses. 

The allowance for loan losses represents management's estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans receivable. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses.

The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company's past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower's ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.

The allowance consists of specific, general and unallocated components. The specific component relates to loans that are designated as impaired. For loans that are designated as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These significant factors may include changes in lending policies and procedures, changes in existing general economic and business conditions affecting our primary lending areas, credit quality trends, collateral value, loan volumes and concentrations, seasoning of the loan portfolio, recent loss experience in particular segments of the portfolio, duration of the current business cycle and bank regulatory examination results. The applied loss factors are reevaluated quarterly to ensure their relevance in the current economic environment.  Residential owner occupied mortgage lending generally entails a lower risk of default than other types of lending. Consumer loans and commercial real estate loans generally involve more risk of collectability because of the type and nature of the collateral and, in certain cases, the absence of collateral. It is the Company's policy to establish a specific reserve for loss on any delinquent loan when it determines that a loss is probable. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral if the loan is collateral dependent.  An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company's impaired loans are measured based on the estimated fair value of the loan's collateral.

A loan is identified as a troubled debt restructuring ("TDR") if the Company, for economic or legal reasons related to a debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider. Concessions granted under a TDR typically involve a temporary or permanent reduction in payments or interest rate or an extension of a loan's stated maturity date at less than a current market rate of interest. Loans identified as TDRs are designated as impaired.

For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower's overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for all loans (except one-to-four family residential owner-occupied loans) where the total amount outstanding to any borrower or group of borrowers exceeds $500,000, or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans criticized as special mention have potential weaknesses that deserve management's close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition, Federal regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management's comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate.

Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]

Loans Held for Sale

. 

Loans originated by the Bank's mortgage banking subsidiary, Quaint Oak Mortgage, LLC, are intended for sale in the secondary market and are carried at the lower of cost or fair value (LOCOM). Gains and losses on loan sales (sales proceeds minus carrying value) are recorded in noninterest income, and direct loan origination costs, commissions and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan.

Federal Home Loan Bank Stock [Policy Text Block]

Federal Home Loan Bank Stock

. 

Federal law requires a member institution of the Federal Home Loan Bank (FHLB) system to hold restricted stock of its district Federal Home Loan Bank according to a predetermined formula.  FHLB stock is carried at cost and evaluated for impairment. When evaluating FHLB stock for impairment, its value is determined based on the ultimate recoverability of the par value of the stock. We evaluate our holdings of FHLB stock for impairment each reporting period. No impairment charges were recognized on FHLB stock during the three or nine months ended September 30, 2016 and 2015.

Bank Owned Life Insurance [Policy Text Block]

Bank Owned Life Insurance (BOLl). 

The Company purchases bank owned life insurance as a mechanism for funding various employee benefit costs.  The Company is the beneficiary of these policies that insure the lives of certain officers of its subsidiaries. The Company has recognized the cash surrender value under the insurance policies as an asset in the consolidated balance sheets. Changes in the cash surrender value are recorded in non-interest income in the consolidated statements of income.

Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy [Policy Text Block]

Other Real Estate Owned.

Other real estate owned or foreclosed assets are comprised of property acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure and loans classified as in-substance foreclosures.  A loan is classified as in-substance foreclosure when the Bank has taken possession of the collateral regardless of whether formal foreclosure proceedings take place.  Other real estate properties are initially recorded at fair value, net of estimated selling costs at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of cost or fair value less estimated costs to sell.  Net revenue and expenses from operations and additions to the valuation allowance are included in other expenses.  The Company has one one-to-four family residential non-owner occupied loan and one multi-family loan for which foreclosure proceedings are in process at September 30, 2016.  The total recorded investment is $385,000.

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

Intangible Assets. 

Intangible assets on the consolidated balance sheets are comprised of the acquisition by Quaint Oak Insurance Agency of the renewal rights to the book of business produced and serviced by Signature Insurance Services, LLC on August 1, 2016 at a total cost of $1.0 million. These renewal rights are being amortized over a ten year period based upon the annual retention rate of the book of business.  This amortization is included in non-interest expense.  Also included in intangible assets are mortgage servicing rights recognized as separate assets when mortgage loans are sold and the servicing rights are retained. These capitalized mortgage servicing rights are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing period of the underlying mortgage loans.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Share-Based Compensation. 

Compensation expense for share-based compensation awards is based on the grant date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award.

At September 30, 2016, the Company has three share-based plans: the 2008 Recognition and Retention Plan ("RRP"), the 2008 Stock Option Plan, and the 2013 Stock Incentive Plan.  Awards under these plans were made in May 2008 and 2013.  These plans are more fully described in Note 11.

The Company also has an employee stock ownership plan ("ESOP").  This plan is more fully described in Note 11.  As ESOP shares are committed to be released and allocated among participants, the Company recognizes compensation expense equal to the average market price of the shares over the period earned.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income (Loss). 

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income.  Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the consolidated balance sheet and  along with net income, are components of comprehensive income.

Earnings Per Share, Policy [Policy Text Block]

Earnings per Share. 

Amounts reported in earnings per share reflect earnings available to common stockholders' for the period divided by the weighted average number of shares of common stock outstanding during the period, exclusive of unearned ESOP shares, unvested restricted stock (RRP) shares and treasury shares.  Stock options and unvested restricted stock are regarded as potential common stock and are considered in the diluted earnings per share calculations to the extent they would have a dilutive effect if converted to common stock, computed using the "treasury stock" method.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements.

  In May 2014, the FASB issued

ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard)

. The Update's core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period.  The Company is evaluating the effect of adopting this new accounting Update.

In August 2015, the FASB issued

ASU 2015-14, Revenue from Contracts with Customers (Topic 606)

. The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year.  Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.  All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019.  The Company is evaluating the effect of adopting this new accounting Update.

In January 2016, the FASB issued

ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10):  Recognition and Measurement of Financial Assets and Financial Liabilities

.  This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments.  Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (g) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (h) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets.  For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  For all other entities including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the a  mendments in this Update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In February 2016, the FASB issued

ASU 2016-02, Leases (Topic 842)

.  The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet.  A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.  A short-term lease id defined as one in which: (a) the lease term is 12 months or less, and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise.  For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis.  For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years.  For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020.  The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In March 2016, the FASB issued

ASU 2016-08, Revenue from Contracts with Customers (Topic 606)

.  The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity's ordinary activities) in exchange for consideration.  The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09,

Revenue from Contracts with Customers (Topic 606)

, which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU No. 2015-14,

Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date

, defers the effective date of Update 2014-09 by one year.  The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In March 2016, the FASB issued

ASU 2016-09, Compensation – Stock Compensation (Topic 718)

. The amendments in this Update affect all entities that issue share-based payment awards to their employees. The standards in this Update provide simplification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as with equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition to those simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004),

Share-Based Payment

. This should not result in a change in practice because the guidance that is being superseded was never effective. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In April 2016, the FASB issued

ASU 2016-10, Revenue from Contracts with Customers (Topic 606)

.  The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance.  The amendments in this Update affect the guidance in ASU 2014-09,

Revenue from Contracts with Customers (Topic 606)

, which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14,

Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date

, defers the effective date of Update 2014-09 by one year.  The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In May 2016, the FASB issued

ASU 2016-12, Revenue from Contracts with Customers (Topic 606)

, which among other things clarifies the objective of the collectability criterion in Topic 606, as well as certain narrow aspects of Topic 606. The amendments in this Update affect the guidance in ASU 2014-09,

Revenue from Contracts with Customers (Topic 606)

, which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14,

Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date

, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In June 2016, the FASB issued

ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13")

, which changes the impairment model for most financial assets. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations.  The underlying premise of the ASU is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management's current estimate of credit losses that are expected to occur over the remaining life of a financial asset.  The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted.  The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

In August 2016, the FASB issued

ASU 2016-15, Statement of Cash Flows (Topic 230):  Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"

), which addresses eight specific cash flow issues with the objective of reducing diversity in practice.  Among these include recognizing cash payments for debt prepayment or debt extinguishment as cash outflows for financing activities; cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; and cash proceeds received from the settlement of bank-owned life insurance policies should be classified as cash inflows from investing activities while the cash payments for premiums on bank-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities.  The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact the adoption of the standard will have on the Company's statement of cash flows.

Reclassification, Policy [Policy Text Block]

Reclassifications. 

Certain items in the 2015 consolidated financial statements have been reclassified to conform to the presentation in the 2016 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.

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Note 3 - Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2016		2015		2016		2015
Net Income	$	402,000	$	310,000	$	1,043,000	$	893,000
Weighted average shares outstanding – basic		1,792,673		1,706,946		1,774,343		1,714,689
Effect of dilutive common stock equivalents		157,740		181,167		161,414		162,019
Adjusted weighted average shares outstanding – diluted		1,950,413		1,888,113		1,935,757		1,876,708
Basic earnings per share	$	0.22	$	0.18	$	0.59	$	0.52
Diluted earnings per share	$	0.21	$	0.16	$	0.54	$	0.48

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Note 4 - Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Unrealized Gains (Losses) on Investment Securities Available for Sale (1)
	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2016			2015			2016			2015
Balance at the beginning of the period	$	1		$	(40	)	$	(12	)	$	(36	)
Other comprehensive income (loss) before classifications		(3	)		(10	)		10			(14	)
Amount reclassified from accumulated other comprehensive income		-			50			-			50
Total other comprehensive income (loss)		(3	)		40			10			36
Balance at the end of the period	$	(2	)	$	-		$	(2	)	$	-

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

Details About Other Comprehensive Loss	Amount Reclassified from Accumulated Other Comprehensive Loss (1)										Affected Line Item in the Statement of Income
	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2016		2015			2016		2015
Unrealized losses on investment securities available for sale	$	-	$	(75	)	$	-	$	(75	)	Loss on sales of investment securities
		-		25			-		25		Income taxes
	$	-	$	(50	)	$	-	$	(50	)	Net of tax

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Note 5 - Investment in Interest-earning Time Deposits (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Investments in Interest-Earning Time Deposits by Contractual Maturity [Table Text Block]

	September 30, 2016		December 31, 2015
	(In Thousands)
Due in one year or less	$	3,107	$	3,585
Due after one year through five years		2,956		2,551
	$	6,063	$	6,136

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Note 6 - Investment Securities Available for Sale (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Available-for-sale Securities [Table Text Block]

	September 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale:
Mortgage-backed securities:
Governmental National Mortgage Association securities	$	6,902	$	10	$	(6	)	$	6,906
Federal Home Loan Mortgage Corporation securities		1,928		2		(1	)		1,929
Federal National Mortgage Association securities		868		-		(7	)		861
Total mortgage-backed securities		9,698		12		(14	)		9,696
Federal Home Loan Mortgage Corporation Medium Term Note Step		360		-		(1	)		359
Total available-for-sale-securities	$	10,058	$	12	$	(15	)	$	10,055

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale:
Mortgage-backed securities:
Governmental National Mortgage Association securities	$	2,003	$	-	$	(13	)	$	1,990
Federal Home Loan Mortgage Corporation securities		1,020		-		(5	)		1,015
Total mortgage-backed securities	$	3,023	$	-	$	(18	)	$	3,005

Schedule of Unrealized Loss on Investments [Table Text Block]

	September 30, 2016
			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
Governmental National Mortgage Association securities		5	$	3,946	$	(6	)	$	-	$	-	$	3,946	$	(6	)
Federal Home Loan Mortgage Corporation securities		1		984		(1	)		-		-		984		(1	)
Federal National Mortgage Association securities		1		861		(7	)		-		-		861		(7	)
Federal Home Loan Mortgage Corporation Medium Term Note Step		1		359		(1	)		-		-		359		(1	)
		8	$	6,150	$	(15	)	$	-	$	-	$	6,150	$	(15	)

	December 31, 2015
			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
Governmental National Mortgage Association mortgage-backed securities		2	$	1,990	$	(13	)	$	-	$	-	$	1,990	$	(13	)
Federal Home Loan Mortgage Corporation mortgage-backed security		1		1,015		(5	)		-		-		1,015		(5	)
Total		3	$	3,005	$	(18	)	$	-	$	-	$	3,005	$	(18	)

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	September 30, 2016			December 31, 2015
	(In Thousands)
Real estate loans:
One-to-four family residential:
Owner occupied	$	5,710		$	5,777
Non-owner occupied		53,191			51,036
Total one-to-four family residential		58,901			56,813
Multi-family (five or more) residential		12,252			12,402
Commercial real estate		63,869			47,550
Commercial lines of credit		2,201			2,215
Construction		15,889			16,100
Home equity loans		4,886			7,409
Total real estate loans		157,998			142,489
Commercial business		5,716			2,576
Other consumer		28			71
Total Loans		163,742			145,136
Deferred loan fees and costs		(630	)		(518	)
Allowance for loan losses		(1,485	)		(1,313	)
Net Loans	$	161,627		$	143,305

Financing Receivable Credit Quality Indicators [Table Text Block]

	September 30, 2016
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	5,710	$	-	$	-	$	-	$	5,710
One-to-four family residential non-owner occupied		52,072		106		1,013		-		53,191
Multi-family residential		12,252		-		-		-		12,252
Commercial real estate and lines of credit		64,630		117		1,323		-		66,070
Construction		14,015		-		1,874		-		15,889
Home equity		4,886		-		-		-		4,886
Commercial business		5,716		-		-		-		5,716
Other consumer		28		-		-		-		28
	$	159,309	$	223	$	4,210	$	-	$	163,742

	December 31, 2015
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	5,777	$	-	$	-	$	-	$	5,777
One-to-four family residential non-owner occupied		49,457		331		1,248		-		51,036
Multi-family residential		12,402		-		-		-		12,402
Commercial real estate and lines of credit		48,185		262		1,318		-		49,765
Construction		14,621		-		1,479		-		16,100
Home equity		7,409		-		-		-		7,409
Commercial business		2,576		-		-		-		2,576
Other consumer		71		-		-		-		71
	$	140,498	$	593	$	4,045	$	-	$	145,136

Impaired Financing Receivables [Table Text Block]

	September 30, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		1,110		1,122		-		1,183		21
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		262		262		-		262		-
Construction		-		-		-		-		-
Home equity		50		50		-		83		5
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		96		96		30		197		12
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		133		11		133		7
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		1,206		1,218		30		1,380		33
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		395		395		11		395		7
Construction		-		-		-		-		-
Home equity		50		50		-		83		5
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	1,651	$	1,663	$	41	$	1,858	$	45

	December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	828	$	15
One-to-four family residential non-owner occupied		653		659		-		1,464		62
Multi-family residential		-		-		-		66		5
Commercial real estate and lines of credit		-		-		-		1,085		77
Construction		-		-		-		-		-
Home equity		84		84		-		87		7
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		321		321		33		556		22
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		133		7		332		9
Construction		-		-		-		-		-
Home equity		-		-		-		45		4
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	828	$	15
One-to-four family residential non-owner occupied		974		980		33		2,020		84
Multi-family residential		-		-		-		66		5
Commercial real estate and lines of credit		133		133		7		1,417		86
Construction		-		-		-		-		-
Home equity		84		84		-		132		11
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	1,191	$	1,197	$	40	$	4,463	$	201

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	September 30, 2016
	Number of Contracts		Recorded Investment		Non- Accrual		Accruing		Related Allowance
One-to-four family residential owner occupied		-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		5		554		-		554		30
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		1		133		-		133		11
Construction		-		-		-		-		-
Home equity		2		50		-		50		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		8	$	737	$	-	$	737	$	41

	December 31, 2015
	Number of Contracts		Recorded Investment		Non- Accrual		Accruing		Related Allowance
One-to-four family residential owner occupied		-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		5		564		-		564		25
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		1		133		-		133		7
Construction		-		-		-		-		-
Home equity		3		84		-		84		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		9	$	781	$	-	$	781	$	32

Contractual Aging of Troubled Debt Restructurings [Table Text Block]

	September 30, 2016
	Accruing Past Due Less than 30 Days		Past Due 30-89 Days		Greater than 90 Days		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		554		-		-		-		554
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		-		-		-		133
Construction		-		-		-		-		-
Home equity		50		-		-		-		50
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	737	$	-	$	-	$	-	$	737

	December 31, 2015
	Accruing Past Due Less than 30 Days		Past Due 30-89 Days		Greater than 90 Days		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		564		-		-		-		564
Multi-family residential		-		-		-		-		-
Commercial real estate and lines of credit		133		-		-		-		133
Construction		-		-		-		-		-
Home equity		84		-		-		-		84
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	781	$	-	$	-	$	-	$	781

Schedule of Credit Losses for Financing Receivables, Current [Table Text Block]

	September 30, 2016
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non- Owner Occupied		Multi- Family Residential			Commercial Real Estate and Lines of Credit		Construction			Home Equity			Commercial Business and Other Consumer		Unallocated			Total
For the Three Months Ended September 30, 2016
Allowance for loan losses:
Beginning balance	$	46		$	525	$	66		$	484	$	115		$	51		$	37	$	100		$	1,424
Charge-offs		-			-		-			-		-			-			-		-			-
Recoveries		-			-		-			-		-			-			-		-			-
Provision		(9	)		25		(11	)		63		28			(19	)		14		(30	)		61
Ending balance	$	37		$	550	$	55		$	547	$	143		$	32		$	51	$	70		$	1,485
For the Nine Months Ended September 30, 2016
Allowance for loan losses:
Beginning balance	$	55		$	486	$	81		$	389	$	153		$	50		$	18	$	81		$	1,313
Charge-offs		-			-		-			-		-			-			-		-			-
Recoveries		-			-		-			-		-			-			-		-			-
Provision		(18	)		64		(26	)		158		(10	)		(18	)		33		(11	)		172
Ending balance	$	37		$	550	$	55		$	547	$	143		$	32		$	51	$	70		$	1,485
Ending balance evaluated for impairment:
Individually	$	-		$	30	$	-		$	11	$	-		$	-		$	-	$	-		$	41
Collectively	$	37		$	520	$	55		$	536	$	143		$	32		$	51	$	70		$	1,444
Loans receivable:
Ending balance:	$	5,710		$	53,191	$	12,252		$	66,070	$	15,889		$	4,886		$	5,744	$	-		$	163,742
Ending balance evaluated for impairment:
Individually	$	-		$	1,206	$	-		$	395	$	-		$	50		$	-	$	-		$	1,651
Collectively	$	5,710		$	51,985	$	12,252		$	65,675	$	15,889		$	4,836		$	5,744	$	-		$	162,091

	September 30, 2015
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non- Owner Occupied			Multi- Family Residential		Commercial Real Estate and Lines of Credit			Construction			Home Equity			Commercial Business and Other Consumer			Unallocated			Total
For the Three Months Ended September 30, 2015
Allowance for loan losses:
Beginning balance	$	60		$	369		$	65	$	412		$	203		$	73		$	23		$	71		$	1,276
Charge-offs		-			(12	)		-		(21	)		-			(45	)		-			-			(78	)
Recoveries		-			-			-		21			-			-			-			-			21
Provision		(1	)		140			1		(53	)		(35	)		15			(5	)		9			71
Ending balance	$	59		$	497		$	66	$	359		$	168		$	43		$	18		$	80		$	1,290
For the Nine Months Ended September 30, 2015
Allowance for loan losses:
Beginning balance	$	75		$	418		$	60	$	324		$	122		$	46		$	7		$	96		$	1,148
Charge-offs		-			(93	)		-		(21	)		-			(45	)		-			-			(159	)
Recoveries		-			-			-		21			-			-			-			-			21
Provision		(16	)		172			6		35			46			42			11			(16	)		280
Ending balance	$	59		$	497		$	66	$	359		$	168		$	43		$	18		$	80		$	1,290
Ending balance evaluated for impairment:
Individually	$	-		$	21		$	-	$	7		$	-		$	-		$	-		$	-		$	28
Collectively	$	59		$	476		$	66	$	352		$	168		$	43		$	18		$	80		$	1,262

	December 31, 2015
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non- Owner Occupied			Multi- Family Residential		Commercial Real Estate and Lines of Credit			Construction		Home Equity			Commercial Business and Other Consumer		Unallocated			Total
Allowance for loan losses:
Beginning balance	$	75		$	418		$	60	$	324		$	122	$	46		$	7	$	96		$	1,148
Charge-offs		-			(110	)		-		(21	)		-		(45	)		-		-			(176	)
Recoveries		-			-			-		21			-		-			-		-			21
Provision		(20	)		178			21		65			31		49			11		(15	)		320
Ending balance	$	55		$	486		$	81	$	389		$	153	$	50		$	18	$	81		$	1,313
Ending balance evaluated for impairment
Individually	$	-		$	33		$	-	$	7		$	-	$	-		$	-	$	-		$	40
Collectively	$	55		$	453		$	81	$	382		$	153	$	50		$	18	$	81		$	1,273
Loans receivable:
Ending balance	$	5,777		$	51,036		$	12,402	$	49,765		$	16,100	$	7,409		$	2,647	$	-		$	145,136
Ending balance evaluated for impairment
Individually	$	-		$	974		$	-	$	133		$	-	$	84		$	-	$	-		$	1,191
Collectively	$	5,777		$	50,062		$	12,402	$	49,632		$	16,100	$	7,325		$	2,647	$	-		$	143,945

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

	September 30, 2016		December 31, 2015
One-to-four family residential owner occupied	$	-	$	-
One-to-four family residential non-owner occupied		652		186
Multi-family residential		-		-
Commercial real estate and lines of credit		262		-
Construction		-		-
Home equity		-		-
Commercial business		-		-
Other consumer		-		-
	$	914	$	186

Past Due Financing Receivables [Table Text Block]

	September 30, 2016
	30-90 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable > 90 Days and Accruing
One-to-four family residential owner occupied	$	323	$	-	$	323	$	5,387	$	5,710	$	-
One-to-four family residential non-owner occupied		1,033		870		1,903		51,288		53,191		218
Multi-family residential		-		-		-		12,252		12,252		-
Commercial real estate and lines of credit		979		660		1,639		64,431		66,070		398
Construction		1,063		-		1,063		14,826		15,889		-
Home equity		171		-		171		4,715		4,886		-
Commercial business		-		-		-		5,716		5,716		-
Other consumer		-		-		-		28		28		-
	$	3,569	$	1,530	$	5,099	$	158,643	$	163,742	$	616

	December 31, 2015
	30-90 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable > 90 Days and Accruing
One-to-four family residential owner occupied	$	253	$	-	$	253	$	5,524	$	5,777	$	-
One-to-four family residential non-owner occupied		1,227		590		1,817		49,219		51,036		404
Multi-family residential		-		-		-		12,402		12,402		-
Commercial real estate and lines of credit		894		262		1,156		48,609		49,765		262
Construction		558		-		558		15,542		16,100		-
Home equity		55		-		55		7,354		7,409		-
Commercial business		-		-		-		2,576		2,576		-
Other consumer		-		-		-		71		71		-
	$	2,987	$	852	$	3,839	$	141,297	$	145,136	$	666

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Note 9 - Deposits (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Summary of Deposits [Table Text Block]

	September 30, 2016		December 31, 2015
Non-interest bearing checking accounts	$	4,203	$	2,407
Passbook accounts		1,161		1,185
Savings accounts		1,984		3,275
Money market accounts		29,363		26,571
Certificates of deposit		137,940		115,791
Total deposits	$	174,651	$	149,229

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Note 10 - Borrowings (Tables)

9 Months Ended

Sep. 30, 2016

Federal Home Loan Bank Advances [Member]

Notes Tables

Schedule of Long-term Debt Instruments [Table Text Block]

	September 30, 2016					December 31, 2015
	Amount		Weighted Interest Rate			Amount		Weighted Interest Rate
Short-term borrowings	$	6,000		0.46	%	$	6,000		0.45	%
Fixed rate borrowings maturing:
2016		-		-	%	$	1,000		0.88	%
2017		2,500		1.15			2,500		1.15
2018		3,000		1.46			3,000		1.46
2019		1,000		2.02			1,000		2.02
Total FHLB long-term debt	$	6,500		1.42	%	$	7,500		1.35	%

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Note 11 - Stock Compensation Plans (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Schedule of Share-based Compensation, Activity [Table Text Block]

	September 30, 2016					September 30, 2015
	Number of Shares			Weighted Average Grant Date Fair Value		Number of Shares			Weighted Average Grant Date Fair Value
Unvested at the beginning of the period		30,784		$	8.10		41,966		$	8.09
Granted		-			-		-			-
Vested		(10,260	)		8.10		(10,582	)		7.73
Forfeited		-			-		(800	)		8.10
Unvested at the end of the period		20,524		$	8.10		30,584		$	8.21

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	2016							2015
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)
Outstanding at the beginning of the year		354,266		$	6.33		4.7		369,140		$	6.30		5.7
Granted		-			-		-		-			-		-
Exercised		(26,518	)		5.00		-		(4,960	)		5.00		-
Forfeited		-			-		-		(1,920	)		8.10		-
Outstanding at end of period		327,748		$	6.44		4.0		362,260		$	6.30		4.8
Exercisable at end of period		266,148		$	6.06		1.6		271,780		$	5.70		2.6

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Note 12 - Fair Value Measurements and Fair Values of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Notes Tables

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

	September 30, 2016
	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
Governmental National Mortgage Association mortgage-backed securities	$	6,906	$	-	$	6,906	$	-
Federal Home Loan Mortgage Corporation mortgage-backed securities		1,929		-		1,929		-
Federal National Mortgage Association mortgage-backed securities		861		-		861		-
Federal Home Loan Mortgage Corporation Medium Term Note Step		359		-		359		-
Total investment securities available for sale	$	10,055	$	-	$	10,055	$	-
Total recurring fair value measurements	$	10,055	$	-	$	10,055	$	-
Nonrecurring fair value measurements
Impaired loans	$	1,610	$	-	$	-	$	1,610
Other real estate owned		720		-		-		720
Total nonrecurring fair value measurements	$	2,330	$	-	$	-	$	2,330

	December 31, 2015
	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
Governmental National Mortgage Association mortgage-backed securities	$	1,990	$	-	$	1,990	$	-
Federal Home Loan Mortgage Corporation mortgage-backed securities		1,015		-		1,015		-
Total investment securities available for sale	$	3,005	$	-	$	3,005	$	-
Total recurring fair value measurements	$	3,005	$	-	$	3,005	$	-
Nonrecurring fair value measurements
Impaired loans	$	1,151	$	-	$	-	$	1,151
Other real estate owned		1,410		-		-		1,410
Total nonrecurring fair value measurements	$	2,561	$	-	$	-	$	2,561

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

	September 30, 2016
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	1,610	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	31%	(3%)
Other real estate owned	$	720	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	29%	(8%)

	December 31, 2015
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	1,151	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	25%	(3%)
Other real estate owned	$	1,410	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	29%	(5%)

Fair Value, by Balance Sheet Grouping [Table Text Block]

					Fair Value Measurements at
					September 30, 2016
	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
Cash and cash equivalents	$	17,680	$	17,680	$	17,680	$	-	$	-
Investment in interest-earning time deposits		6,063		6,112		-		-		6,112
Investment securities available for sale		10,055		10,055		-		10,055		-
Loans held for sale		4,247		4,419		-		4,419		-
Loans receivable, net		161,627		163,450		-		-		163,450
Accrued interest receivable		932		932		932		-		-
Investment in FHLB stock		593		593		593		-		-
Bank-owned life insurance		3,705		3,705		3,705		-		-
Financial Liabilities
Deposits		174,651		176,620		36,712		-		139,908
FHLB short-term borrowings		6,000		6,000		6,000		-		-
FHLB long-term borrowings		6,500		6,544		-		-		6,544
Accrued interest payable		136		136		136		-		-

					Fair Value Measurements at
					December 31, 2015
	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
Cash and cash equivalents	$	17,206	$	17,206	$	17,206	$	-	$	-
Investment in interest-earning time deposits		6,136		6,206		-		-		6,206
Investment securities available for sale		3,005		3,005		-		3,005		-
Loans held for sale		5,064		5,244		-		5,244		-
Loans receivable, net		143,305		145,134		-		-		145,134
Accrued interest receivable		983		983		983		-		-
Investment in FHLB stock		618		618		618		-		-
Bank-owned life insurance		3,638		3,638		3,638		-		-
Financial Liabilities
Deposits		149,229		150,644		33,438		-		117,206
FHLB short-term borrowings		6,000		6,000		6,000		-		-
FHLB long-term borrowings		7,500		7,479		-		-		7,479
Accrued interest payable		123		123		123		-		-

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Note 1 - Financial Statement Presentation and Significant Accounting Policies (Details Textual)		3 Months Ended		9 Months Ended
	Aug. 01, 2016 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Number of Mortgage Loans in Foreclosure Proceedings		1		1
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Number of Mortgage Loans in Foreclosure Proceedings		1		1
Renewal Rights [Member]
Finite-Lived Intangible Assets, Net	$ 1,000,000
Finite-Lived Intangible Asset, Useful Life	10 years
Asset Impairment Charges		$ 0	$ 0	$ 0	$ 0
Number of Wholly-Owned Subsidiaries				5
Number of Subsidiary Branch Offices		2		2
Past Due Period of Principal or Interest Payment				90 days
Threshold for Loans to be Evaluated Annually, Minimum		$ 500,000		$ 500,000
Mortgage Loans in Process of Foreclosure, Amount		$ 385,000		$ 385,000
Number of Share-Based Plans				3

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Note 2 - Stock Split (Details Textual)	Aug. 13, 2015
Stockholders' Equity Note, Stock Split, Conversion Ratio	2
Common Stock, Dividend Rate, Percentage	100.00%

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Note 3 - Earnings Per Share - Weighted Average Shares Used in Basic and Dilutive Earnings Per Share Computations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net Income	$ 402,000	$ 310,000	$ 1,043,000	$ 893,000
Weighted average shares outstanding – basic (in shares)	1,792,673	1,706,946	1,774,343	1,714,689
Effect of dilutive common stock equivalents (in shares)	157,740	181,167	161,414	162,019
Adjusted weighted average shares outstanding – diluted (in shares)	1,950,413	1,888,113	1,935,757	1,876,708
Basic earnings per share (in dollars per share)	$ 0.22	$ 0.18	$ 0.59	$ 0.52
Diluted earnings per share (in dollars per share)	$ 0.21	$ 0.16	$ 0.54	$ 0.48

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Note 4 - Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Balance at the beginning of the period	[1]	$ 1	$ (40)	$ (12)	$ (36)
Other comprehensive income (loss) before classifications	[1]	3	10	(10)	14
Amount reclassified from accumulated other comprehensive income	[1]		50		50
Total other comprehensive income (loss)	[1]	(3)	40	10	36
Balance at the end of the period	[1]	(2)		(2)
Balance at the beginning of the period				(12)
Balance at the end of the period		$ (2)		$ (2)

[1] All amounts are net of tax. Amounts in parentheses indicate debits.

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Note 4 - Accumulated Other Comprehensive Income (Loss) - amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Loss on sales of investment securities		$ (75,000)		$ (75,000)
Income taxes		25,000		25,000
Net income		(50,000)		(50,000)
Income taxes	250,000	189,000	650,000	552,000
Net income	$ 402,000	$ 310,000	$ 1,043,000	$ 893,000

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Note 5 - Investment in Interest-earning Time Deposits - Investment in Interest-earnings Time Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Due in one year or less	$ 3,107	$ 3,585
Due after one year through five years	2,956	2,551
	$ 6,063	$ 6,136

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Note 6 - Investment Securities Available for Sale (Details Textual)	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2015
Bond Funds [Member]
Available-for-sale Securties Sold	2
Available-for-sale Securities, Gross Realized Gains	$ 0
Proceeds from Sale of Available-for-sale Securities	1,700,000
Available-for-sale Securities, Gross Realized Losses	$ 75,000
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions		8		8		3
Percentage of Aggregate Depreciation Held by Debt Securities		0.24%		0.24%
Proceeds from Sale of Available-for-sale Securities					$ 1,720,000
Other than Temporary Impairment Losses, Investments				0
Asset Impairment Charges		$ 0	$ 0	$ 0	$ 0

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Note 6 - Investment Securities Available for Sale - Amortized Cost and Fair Value of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Government National Mortgage Association (GNMA) Insured Loans [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available for Sale:
Amortized cost	$ 6,902	$ 2,003
Gross unrealized gains	10
Gross unrealized losses	(6)	(13)
Fair value	6,906	1,990
Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available for Sale:
Amortized cost	1,928	1,020
Gross unrealized gains	2
Gross unrealized losses	(1)	(5)
Fair value	1,929	1,015
Federal National Mortgage Association (FNMA) Insured Loans [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available for Sale:
Amortized cost	868
Gross unrealized gains
Gross unrealized losses	(7)
Fair value	861
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available for Sale:
Amortized cost	9,698
Gross unrealized gains	12
Gross unrealized losses	(14)
Fair value	9,696
Federal Home Loan Mortgage Corporation Medium Term Note [Member]
Available for Sale:
Amortized cost	360
Gross unrealized gains
Gross unrealized losses	(1)
Fair value	359
Amortized cost	10,058	3,023
Gross unrealized gains	12
Gross unrealized losses	(15)	(18)
Fair value	$ 10,055	$ 3,005

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Note 6 - Investment Securities Available for Sale - Gross Unrealized Losses and Fair Value (Details) $ in Thousands	Sep. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member]
Number of securities	5	2
Fair value, less than twelve months	$ 3,946	$ 1,990
Gross unrealized losses, less than twelve months	(6)	(13)
Fair value, twelve months or greater
Gross unrealized losses, twelve months or greater
Fair value	3,946	1,990
Gross unrealized losses	$ (6)	$ (13)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans [Member]
Number of securities	1	1
Fair value, less than twelve months	$ 984	$ 1,015
Gross unrealized losses, less than twelve months	(1)	(5)
Fair value, twelve months or greater
Gross unrealized losses, twelve months or greater
Fair value	984	1,015
Gross unrealized losses	$ (1)	$ (5)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member]
Number of securities	1
Fair value, less than twelve months	$ 861
Gross unrealized losses, less than twelve months	(7)
Fair value, twelve months or greater
Gross unrealized losses, twelve months or greater
Fair value	861
Gross unrealized losses	$ (7)
Federal Home Loan Mortgage Corporation Medium Term Note [Member]
Number of securities	1
Fair value, less than twelve months	$ 359
Gross unrealized losses, less than twelve months	(1)
Fair value, twelve months or greater
Gross unrealized losses, twelve months or greater
Fair value	359
Gross unrealized losses	$ (1)
Number of securities	8	3
Fair value, less than twelve months	$ 6,150	$ 3,005
Gross unrealized losses, less than twelve months	(15)	(18)
Fair value, twelve months or greater
Gross unrealized losses, twelve months or greater
Fair value	6,150	3,005
Gross unrealized losses	$ (15)	$ (18)

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses (Details Textual)	3 Months Ended	6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Performing Financial Instruments [Member]
Financing Receivable, Modifications, Number of Contracts				8		9
Financing Receivable, Modifications, Recorded Investment	$ 737,000	$ 737,000		$ 737,000		$ 781,000
Nonperforming Financial Instruments [Member]
Loans and Leases Receivable, Gross	$ 1,500,000	1,500,000		$ 1,500,000		852,000
Financing Receivable, Modifications, Number of Contracts	0			0
Financing Receivable, Modifications, Recorded Investment	$ 737,000	737,000		$ 737,000		781,000
Financing Receivable, Modifications, Number of Contracts Paid-off	1
Loans and Leases Receivable, Gross	$ 163,742,000	163,742,000		163,742,000		$ 145,136,000
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans				82,000	$ 48,000
Impaired Financing Receivable, Interest Income, Cash Basis Method		0	$ 0	0	$ 0
Loans and Leases Receivable, Impaired, Commitment to Lend	$ 0	$ 0		$ 0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts				0

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses - Composition of Net Loans Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Real estate loans:
Loans	$ 5,710		$ 5,777
Allowance for loan losses	(37)	$ (46)	(55)	$ (59)	$ (60)	$ (75)
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Real estate loans:
Loans	53,191		51,036
Allowance for loan losses	(550)	(525)	(486)	(497)	(369)	(418)
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Loans [Member]
Real estate loans:
Loans	58,901		56,813
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Real estate loans:
Loans	12,252		12,402
Allowance for loan losses	(55)	(66)	(81)	(66)	(65)	(60)
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member]
Real estate loans:
Loans	63,869		47,550
Real Estate Portfolio Segment [Member] | Commercial Lines of Credit [Member]
Real estate loans:
Loans	2,201		2,215
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Real estate loans:
Loans	15,889		16,100
Allowance for loan losses	(143)	(115)	(153)	(168)	(203)	(122)
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Real estate loans:
Loans	4,886		7,409
Allowance for loan losses	(32)	(51)	(50)	(43)	(73)	(46)
Real Estate Portfolio Segment [Member]
Real estate loans:
Loans	157,998		142,489
Commercial Portfolio Segment [Member]
Real estate loans:
Loans	5,716		2,576
Consumer Portfolio Segment [Member]
Real estate loans:
Loans	28		71
Loans	163,742		145,136
Deferred loan fees and costs	(630)		(518)
Allowance for loan losses	(1,485)	$ (1,424)	(1,313)	$ (1,290)	$ (1,276)	$ (1,148)
Net Loans	$ 161,627		$ 143,305

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses - Loan Portfolio by Credit Rating (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Pass [Member]
Loans	$ 5,710	$ 5,777
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Special Mention [Member]
Loans
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Substandard [Member]
Loans
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Doubtful [Member]
Loans
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Loans	5,710	5,777
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Pass [Member]
Loans	52,072	49,457
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Special Mention [Member]
Loans	106	331
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Substandard [Member]
Loans	1,013	1,248
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Doubtful [Member]
Loans
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Loans	53,191	51,036
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Pass [Member]
Loans	12,252	12,402
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Special Mention [Member]
Loans
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Substandard [Member]
Loans
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Doubtful [Member]
Loans
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Loans	12,252	12,402
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member] | Pass [Member]
Loans	64,630	48,185
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member] | Special Mention [Member]
Loans	117	262
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member] | Substandard [Member]
Loans	1,323	1,318
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member] | Doubtful [Member]
Loans
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member]
Loans	66,070	49,765
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member]
Loans	14,015	14,621
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member]
Loans
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member]
Loans	1,874	1,479
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Doubtful [Member]
Loans
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Loans	15,889	16,100
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Pass [Member]
Loans	4,886	7,409
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Special Mention [Member]
Loans
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Substandard [Member]
Loans
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Doubtful [Member]
Loans
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Loans	4,886	7,409
Real Estate Portfolio Segment [Member]
Loans	157,998	142,489
Commercial Portfolio Segment [Member] | Pass [Member]
Loans	5,716	2,576
Commercial Portfolio Segment [Member] | Special Mention [Member]
Loans
Commercial Portfolio Segment [Member] | Substandard [Member]
Loans
Commercial Portfolio Segment [Member] | Doubtful [Member]
Loans
Commercial Portfolio Segment [Member]
Loans	5,716	2,576
Consumer Portfolio Segment [Member] | Pass [Member]
Loans	28	71
Consumer Portfolio Segment [Member] | Special Mention [Member]
Loans
Consumer Portfolio Segment [Member] | Substandard [Member]
Loans
Consumer Portfolio Segment [Member] | Doubtful [Member]
Loans
Consumer Portfolio Segment [Member]
Loans	28	71
Pass [Member]
Loans	159,309	140,498
Special Mention [Member]
Loans	223	593
Substandard [Member]
Loans	4,210	4,045
Doubtful [Member]
Loans
Loans	$ 163,742	$ 145,136

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses - Impaired Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
With no related allowance recorded:
Recorded investment, with no related allowance recorded
Unpaid principal balance, with no related allowance recorded
Average recorded investment, with no related allowance recorded		828
Interest income recognized, with no related allowance recorded		15
With an allowance recorded:
Recorded investment, with an allowance recorded
Unpaid principal balance, with an allowance recorded
Related allowance
Average recorded investment, with an allowance recorded
Interest income recognized, with an allowance recorded
Total:
Recorded investment
Unpaid principal balance
Related allowance
Average recorded investment		828
Interest income recognized		15
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
With no related allowance recorded:
Recorded investment, with no related allowance recorded	1,110	653
Unpaid principal balance, with no related allowance recorded	1,122	659
Average recorded investment, with no related allowance recorded	1,183	1,464
Interest income recognized, with no related allowance recorded	21	62
With an allowance recorded:
Recorded investment, with an allowance recorded	96	321
Unpaid principal balance, with an allowance recorded	96	321
Related allowance	30	33
Average recorded investment, with an allowance recorded	197	556
Interest income recognized, with an allowance recorded	12	22
Total:
Recorded investment	1,206	974
Unpaid principal balance	1,218	980
Related allowance	30	33
Average recorded investment	1,380	2,020
Interest income recognized	33	84
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
With no related allowance recorded:
Recorded investment, with no related allowance recorded
Unpaid principal balance, with no related allowance recorded
Average recorded investment, with no related allowance recorded		66
Interest income recognized, with no related allowance recorded		5
With an allowance recorded:
Recorded investment, with an allowance recorded
Unpaid principal balance, with an allowance recorded
Related allowance
Average recorded investment, with an allowance recorded
Interest income recognized, with an allowance recorded
Total:
Recorded investment
Unpaid principal balance
Related allowance
Average recorded investment		66
Interest income recognized		5
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member]
With no related allowance recorded:
Recorded investment, with no related allowance recorded	262
Unpaid principal balance, with no related allowance recorded	262
Average recorded investment, with no related allowance recorded	262	1,085
Interest income recognized, with no related allowance recorded		77
With an allowance recorded:
Recorded investment, with an allowance recorded	133	133
Unpaid principal balance, with an allowance recorded	133	133
Related allowance	11	7
Average recorded investment, with an allowance recorded	133	332
Interest income recognized, with an allowance recorded	7	9
Total:
Recorded investment	395	133
Unpaid principal balance	395	133
Related allowance	11	7
Average recorded investment	395	1,417
Interest income recognized	7	86
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
With no related allowance recorded:
Recorded investment, with no related allowance recorded
Unpaid principal balance, with no related allowance recorded
Average recorded investment, with no related allowance recorded
Interest income recognized, with no related allowance recorded
With an allowance recorded:
Recorded investment, with an allowance recorded
Unpaid principal balance, with an allowance recorded
Related allowance
Average recorded investment, with an allowance recorded
Interest income recognized, with an allowance recorded
Total:
Recorded investment
Unpaid principal balance
Related allowance
Average recorded investment
Interest income recognized
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
With no related allowance recorded:
Recorded investment, with no related allowance recorded	50	84
Unpaid principal balance, with no related allowance recorded	50	84
Average recorded investment, with no related allowance recorded	83	87
Interest income recognized, with no related allowance recorded	5	7
With an allowance recorded:
Recorded investment, with an allowance recorded
Unpaid principal balance, with an allowance recorded
Related allowance
Average recorded investment, with an allowance recorded		45
Interest income recognized, with an allowance recorded		4
Total:
Recorded investment	50	84
Unpaid principal balance	50	84
Related allowance
Average recorded investment	83	132
Interest income recognized	5	11
Commercial Portfolio Segment [Member]
With no related allowance recorded:
Recorded investment, with no related allowance recorded
Unpaid principal balance, with no related allowance recorded
Average recorded investment, with no related allowance recorded
Interest income recognized, with no related allowance recorded
With an allowance recorded:
Recorded investment, with an allowance recorded
Unpaid principal balance, with an allowance recorded
Related allowance
Average recorded investment, with an allowance recorded
Interest income recognized, with an allowance recorded
Total:
Recorded investment
Unpaid principal balance
Related allowance
Average recorded investment
Interest income recognized
Consumer Portfolio Segment [Member]
With no related allowance recorded:
Recorded investment, with no related allowance recorded
Unpaid principal balance, with no related allowance recorded
Average recorded investment, with no related allowance recorded
Interest income recognized, with no related allowance recorded
With an allowance recorded:
Recorded investment, with an allowance recorded
Unpaid principal balance, with an allowance recorded
Related allowance
Average recorded investment, with an allowance recorded
Interest income recognized, with an allowance recorded
Total:
Recorded investment
Unpaid principal balance
Related allowance
Average recorded investment
Interest income recognized
Related allowance	41	40
Recorded investment	1,651	1,191
Unpaid principal balance	1,663	1,197
Related allowance	41	40
Average recorded investment	1,858	4,463
Interest income recognized	$ 45	$ 201

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses - Troubled Debt Restructuring Loans (Details) $ in Thousands	Sep. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Accruing Instrument [Member]
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Troubled debt restructuring, number of contracts
Troubled debt restructuring, recorded investment
Troubled debt restructuring, related allowance
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Accruing Instrument [Member]
Troubled debt restructuring, recorded investment	$ 554	$ 564
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Troubled debt restructuring, number of contracts	5	5
Troubled debt restructuring, recorded investment	$ 554	$ 564
Troubled debt restructuring, related allowance	30	25
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Accruing Instrument [Member]
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Troubled debt restructuring, number of contracts
Troubled debt restructuring, recorded investment
Troubled debt restructuring, related allowance
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member] | Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member] | Accruing Instrument [Member]
Troubled debt restructuring, recorded investment	$ 133	$ 133
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member]
Troubled debt restructuring, number of contracts	1	1
Troubled debt restructuring, recorded investment	$ 133	$ 133
Troubled debt restructuring, related allowance	11	7
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Accruing Instrument [Member]
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Troubled debt restructuring, number of contracts
Troubled debt restructuring, recorded investment
Troubled debt restructuring, related allowance
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Accruing Instrument [Member]
Troubled debt restructuring, recorded investment	$ 50	$ 84
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Troubled debt restructuring, number of contracts	2	3
Troubled debt restructuring, recorded investment	$ 50	$ 84
Troubled debt restructuring, related allowance
Commercial Portfolio Segment [Member] | Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment
Commercial Portfolio Segment [Member] | Accruing Instrument [Member]
Troubled debt restructuring, recorded investment
Commercial Portfolio Segment [Member]
Troubled debt restructuring, number of contracts
Troubled debt restructuring, recorded investment
Troubled debt restructuring, related allowance
Consumer Portfolio Segment [Member] | Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment
Consumer Portfolio Segment [Member] | Accruing Instrument [Member]
Troubled debt restructuring, recorded investment
Consumer Portfolio Segment [Member]
Troubled debt restructuring, number of contracts
Troubled debt restructuring, recorded investment
Troubled debt restructuring, related allowance
Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment
Accruing Instrument [Member]
Troubled debt restructuring, recorded investment	$ 737	$ 781
Troubled debt restructuring, number of contracts	8	9
Troubled debt restructuring, recorded investment	$ 737	$ 781
Troubled debt restructuring, related allowance	$ 41	$ 32

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses - Contractual Aging of the TDRs (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Troubled debt restructurings, current & past due less than 30 Day
Troubled debt restructurings, past due 30-89 days
Troubled debt restructurings, greater than 90 days
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Troubled debt restructurings, current & past due less than 30 Day	554	564
Troubled debt restructurings, past due 30-89 days
Troubled debt restructurings, greater than 90 days
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment	554	564
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Troubled debt restructurings, current & past due less than 30 Day
Troubled debt restructurings, past due 30-89 days
Troubled debt restructurings, greater than 90 days
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member]
Troubled debt restructurings, current & past due less than 30 Day	133	133
Troubled debt restructurings, past due 30-89 days
Troubled debt restructurings, greater than 90 days
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment	133	133
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Troubled debt restructurings, current & past due less than 30 Day
Troubled debt restructurings, past due 30-89 days
Troubled debt restructurings, greater than 90 days
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Troubled debt restructurings, current & past due less than 30 Day	50	84
Troubled debt restructurings, past due 30-89 days
Troubled debt restructurings, greater than 90 days
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment	50	84
Commercial Portfolio Segment [Member]
Troubled debt restructurings, current & past due less than 30 Day
Troubled debt restructurings, past due 30-89 days
Troubled debt restructurings, greater than 90 days
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Consumer Portfolio Segment [Member]
Troubled debt restructurings, current & past due less than 30 Day
Troubled debt restructurings, past due 30-89 days
Troubled debt restructurings, greater than 90 days
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Troubled debt restructurings, current & past due less than 30 Day	737	781
Troubled debt restructurings, past due 30-89 days
Troubled debt restructurings, greater than 90 days
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment	$ 737	$ 781

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses - Changes in the Allowance for Loan Losses and Recorded Investment in Loans Receivable (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Allowance for loan losses, beginning balance	$ 46	$ 60	$ 55	$ 75	$ 75
Charge-offs
Recoveries
Provision	(9)	(1)	(18)	(16)	(20)
Allowance for loan losses, ending balance	37	59	37	59	55
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	37	59	37	59	55
Loans receivable	5,710		5,710		5,777
Loans receivable, individually evaluated for impairment
Loans receivable, collectively evaluated for impairment	5,710		5,710		5,777
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	37	59	37	59	55
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Allowance for loan losses, beginning balance	525	369	486	418	418
Charge-offs		(12)		(93)	(110)
Recoveries
Provision	25	140	64	172	178
Allowance for loan losses, ending balance	550	497	550	497	486
Allowance for loan losses, individually evaluated for impairment	30	21	30	21	33
Allowance for loan losses, collectively evaluated for impairment	520	476	520	476	453
Loans receivable	53,191		53,191		51,036
Loans receivable, individually evaluated for impairment	1,206		1,206		974
Loans receivable, collectively evaluated for impairment	51,985		51,985		50,062
Allowance for loan losses, individually evaluated for impairment	30	21	30	21	33
Allowance for loan losses, collectively evaluated for impairment	520	476	520	476	453
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Allowance for loan losses, beginning balance	66	65	81	60	60
Charge-offs
Recoveries
Provision	(11)	1	(26)	6	21
Allowance for loan losses, ending balance	55	66	55	66	81
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	55	66	55	66	81
Loans receivable	12,252		12,252		12,402
Loans receivable, individually evaluated for impairment
Loans receivable, collectively evaluated for impairment	12,252		12,252		12,402
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	55	66	55	66	81
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member]
Allowance for loan losses, beginning balance	484	412	389	324	324
Charge-offs		(21)		(21)	(21)
Recoveries		21		21	21
Provision	63	(53)	158	35	65
Allowance for loan losses, ending balance	547	359	547	359	389
Allowance for loan losses, individually evaluated for impairment	11	7	11	7	7
Allowance for loan losses, collectively evaluated for impairment	536	352	536	352	382
Loans receivable	66,070		66,070		49,765
Loans receivable, individually evaluated for impairment	395		395		133
Loans receivable, collectively evaluated for impairment	65,675		65,675		49,632
Allowance for loan losses, individually evaluated for impairment	11	7	11	7	7
Allowance for loan losses, collectively evaluated for impairment	536	352	536	352	382
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Allowance for loan losses, beginning balance	115	203	153	122	122
Charge-offs
Recoveries
Provision	28	(35)	(10)	46	31
Allowance for loan losses, ending balance	143	168	143	168	153
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	143	168	143	168	153
Loans receivable	15,889		15,889		16,100
Loans receivable, individually evaluated for impairment
Loans receivable, collectively evaluated for impairment	15,889		15,889		16,100
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	143	168	143	168	153
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Allowance for loan losses, beginning balance	51	73	50	46	46
Charge-offs		(45)		(45)	(45)
Recoveries
Provision	(19)	15	(18)	42	49
Allowance for loan losses, ending balance	32	43	32	43	50
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	32	43	32	43	50
Loans receivable	4,886		4,886		7,409
Loans receivable, individually evaluated for impairment	50		50		84
Loans receivable, collectively evaluated for impairment	4,836		4,836		7,325
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	32	43	32	43	50
Real Estate Portfolio Segment [Member]
Loans receivable	157,998		157,998		142,489
Commercial and Consumer Portfolio Segments [Member]
Allowance for loan losses, beginning balance	37	23	18	7	7
Charge-offs
Recoveries
Provision	14	(5)	33	11	11
Allowance for loan losses, ending balance	51	18	51	18	18
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	51	18	51	18	18
Loans receivable	5,744		5,744		2,647
Loans receivable, individually evaluated for impairment
Loans receivable, collectively evaluated for impairment	5,744		5,744		2,647
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	51	18	51	18	18
Unallocated Financing Receivables [Member]
Allowance for loan losses, beginning balance	100	71	81	96	96
Charge-offs
Recoveries
Provision	(30)	9	(11)	(16)	(15)
Allowance for loan losses, ending balance	70	80	70	80	81
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	70	80	70	80	81
Loans receivable
Loans receivable, individually evaluated for impairment
Loans receivable, collectively evaluated for impairment
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	70	80	70	80	81
Allowance for loan losses, beginning balance	1,424	1,276	1,313	1,148	1,148
Charge-offs		(78)		(159)	(176)
Recoveries		21		21	21
Provision	61	71	172	280	320
Allowance for loan losses, ending balance	1,485	1,290	1,485	1,290	1,313
Allowance for loan losses, individually evaluated for impairment	41	28	41	28	40
Allowance for loan losses, collectively evaluated for impairment	1,444	1,262	1,444	1,262	1,273
Loans receivable	163,742		163,742		145,136
Loans receivable, individually evaluated for impairment	1,651		1,651		1,191
Loans receivable, collectively evaluated for impairment	162,091		162,091		143,945
Allowance for loan losses, individually evaluated for impairment	41	28	41	28	40
Allowance for loan losses, collectively evaluated for impairment	$ 1,444	$ 1,262	$ 1,444	$ 1,262	$ 1,273

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses - Non-accrual Loans by Class of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Loans
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Loans	652	186
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Loans
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member]
Loans	262
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Loans
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Loans
Commercial Portfolio Segment [Member]
Loans
Consumer Portfolio Segment [Member]
Loans
Loans	$ 914	$ 186

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Note 7 - Loans Receivable, Net and Allowance for Loan Losses - Loan Portfolio Summarized by Past Due Status (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | 30 to 89 Days Delinquent [Member]
Loans, past due	$ 323	$ 253
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans, past due
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Loans, past due	323	253
Loans, current	5,387	5,524
Loans	5,710	5,777
Loans > 90 days and accruing
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | 30 to 89 Days Delinquent [Member]
Loans, past due	1,033	1,227
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans, past due	870	590
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Loans, past due	1,903	1,817
Loans, current	51,288	49,219
Loans	53,191	51,036
Loans > 90 days and accruing	218	404
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | 30 to 89 Days Delinquent [Member]
Loans, past due
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans, past due
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Loans, past due
Loans, current	12,252	12,402
Loans	12,252	12,402
Loans > 90 days and accruing
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member] | 30 to 89 Days Delinquent [Member]
Loans, past due	979	894
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans, past due	660	262
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member]
Loans, past due	1,639	1,156
Loans, current	64,431	48,609
Loans	66,070	49,765
Loans > 90 days and accruing	398	262
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | 30 to 89 Days Delinquent [Member]
Loans, past due	1,063	558
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans, past due
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Loans, past due	1,063	558
Loans, current	14,826	15,542
Loans	15,889	16,100
Loans > 90 days and accruing
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | 30 to 89 Days Delinquent [Member]
Loans, past due	171	55
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans, past due
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Loans, past due	171	55
Loans, current	4,715	7,354
Loans	4,886	7,409
Loans > 90 days and accruing
Real Estate Portfolio Segment [Member]
Loans	157,998	142,489
Commercial Portfolio Segment [Member] | 30 to 89 Days Delinquent [Member]
Loans, past due
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans, past due
Commercial Portfolio Segment [Member]
Loans, past due
Loans, current	5,716	2,576
Loans	5,716	2,576
Loans > 90 days and accruing
Consumer Portfolio Segment [Member] | 30 to 89 Days Delinquent [Member]
Loans, past due
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans, past due
Consumer Portfolio Segment [Member]
Loans, past due
Loans, current	28	71
Loans	28	71
Loans > 90 days and accruing
30 to 89 Days Delinquent [Member]
Loans, past due	3,569	2,987
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans, past due	1,530	852
Loans, past due	5,099	3,839
Loans, current	158,643	141,297
Loans	163,742	145,136
Loans > 90 days and accruing	$ 616	$ 666

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Note 8 - Intangibles, Net (Details Textual) - USD ($)		3 Months Ended		9 Months Ended
	Aug. 01, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Renewal Rights [Member]
Payments to Acquire Intangible Assets	$ 1,000,000
Finite-Lived Intangible Asset, Useful Life	10 years
Amortization of Intangible Assets		$ 17,000		$ 17,000
Finite-Lived Intangible Assets, Net	$ 1,000,000
Mortgage Servicing Rights [Member]
Amortization of Intangible Assets		2,000	$ 1,000	5,000	$ 3,000
Finite-Lived Intangible Assets, Net		$ 61,000		61,000		$ 45,000
Payments to Acquire Intangible Assets				1,021,000	1,000
Amortization of Intangible Assets				$ 22,000	$ 3,000

XML

Note 9 - Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Passbook Accounts [Member]
Interest-bearing deposits	$ 1,161	$ 1,185
Savings Accounts [Member]
Interest-bearing deposits	1,984	3,275
Non-interest bearing checking accounts	4,203	2,407
Money market accounts	29,363	26,571
Certificates of deposit	137,940	115,791
Total deposits	$ 174,651	$ 149,229

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Note 10 - Borrowings - Federal Home Loan Bank Long-term Borrowings (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Short-term borrowings	$ 6.0	$ 6.0
Short-term borrowings	0.46%	0.45%
Fixed rate borrowings maturing:
2016		$ 1.0
2016		0.88%
2017	$ 2.5	$ 2.5
2017	1.15%	1.15%
2018	$ 3.0	$ 3.0
2018	1.46%	1.46%
2019	$ 1.0	$ 1.0
2019	2.02%	2.02%
Total FHLB long-term debt	$ 6.5	$ 7.5
Total FHLB long-term debt	1.42%	1.35%

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Note 11 - Stock Compensation Plans (Details Textual) - USD ($)		1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2013	May 31, 2013	May 31, 2008	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2007	Dec. 31, 2015	Dec. 31, 2014
Employee Stock Option [Member] | The 2008 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				0		0
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			277,726
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 8.10		$ 5
Employee Stock Option [Member] | The 2013 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		146,250
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number				56,276		56,276
Employee Stock Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period						5 years
Employee Stock Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period						7 years
Employee Stock Option [Member]
Allocated Share-based Compensation Expense				$ 12,000		$ 34,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense				$ 1,000		$ 3,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition						1 year 219 days
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price						$ 5	$ 5
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number				327,748	362,260	327,748	362,260		354,266	369,140
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period						10 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options				$ 73,000		$ 73,000
Restricted Stock [Member] | The 2008 Recognition and Retention Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				0		0
Restricted Stock [Member] | The 2013 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				21,968		21,968
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		48,750
Percentage of Shares May Be Granted As Restricted Stock Awards		25.00%
Restricted Stock [Member] | The RRP and Stock Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period						5 years
Restricted Stock [Member] | The RRP and Stock Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period						7 years
Restricted Stock [Member] | The RRP and Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number				20,524		20,524
Restricted Stock [Member] | Minimum [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition						5 years
Restricted Stock [Member] | Maximum [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition						7 years
Restricted Stock [Member]
Allocated Share-based Compensation Expense				$ 21,000	$ 19,000	$ 62,000	$ 62,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense				$ 7,000	$ 6,000	$ 21,000	$ 15,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number				20,524	30,584	20,524	30,584		30,784	41,966
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition						1 year 219 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options				$ 136,000		$ 136,000
The 2008 Recognition and Retention Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award			111,090
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased			$ 4.68
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards			$ 520,000
The 2013 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		195,000
Employee Stock Ownership Plan [Member]
Percentage of Company Shares Purchased by ESOP								8.00%
Employee Stock Ownership Plan (ESOP), Shares Contributed to ESOP								222,180
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased								$ 4.68
Employee Stock Ownership Plan Purchase Cost of Shares								$ 1,000,000
ESOP Loan Interest Rate								7.75%
Employee Stock Ownership Plan (ESOP), Loan Term								15 years
Allocated Share-based Compensation Expense					$ 12,000		$ 34,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense					1,000		3,000
Employee Stock Ownership Plan (ESOP), Compensation Expense				$ 43,000	$ 42,000	$ 129,000	$ 115,000

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Note 11 - Stock Compensation Plans - Status of Shares under the RRP and Stock Incentive Plan (Details) - Restricted Stock [Member] - $ / shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Unvested at the beginning of the period (in shares)	30,784	41,966
Unvested at the beginning of the period (in dollars per share)	$ 8.10	$ 8.09
Granted (in shares)
Granted (in dollars per share)
Vested (in shares)	(10,260)	(10,582)
Vested (in dollars per share)	$ 8.10	$ 7.73
Forfeited (in shares)		(800)
Forfeited (in dollars per share)		$ 8.10
Unvested at the end of the period (in shares)	20,524	30,584
Unvested at the end of the period (in dollars per share)	$ 8.10	$ 8.21

XML

Note 11 - Stock Compensation Plans - Summary of Option Activity (Details) - Employee Stock Option [Member] - $ / shares	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Outstanding at the beginning of the year (in shares)	354,266	369,140	369,140
Outstanding at the beginning of the year (in dollars per share)	$ 6.33	$ 6.30	$ 6.30
Outstanding at the beginning of the year	4 years	4 years 292 days	4 years 255 days	5 years 255 days
Granted (in shares)
Granted (in dollars per share)
Granted
Exercised (in shares)	(26,518)	(4,960)
Exercised (in dollars per share)	$ 5	$ 5
Exercised
Forfeited (in shares)		(1,920)
Forfeited (in dollars per share)		$ 8.10
Outstanding at end of period (in shares)	327,748	362,260	354,266	369,140
Outstanding at end of period (in dollars per share)	$ 6.44	$ 6.30	$ 6.33	$ 6.30
Exercisable at end of period (in shares)	266,148	271,780
Exercisable at end of period (in dollars per share)	$ 6.06	$ 5.70
Exercisable at end of period	1 year 219 days	2 years 219 days

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Note 12 - Fair Value Measurements and Fair Values of Financial Instruments - Financial Assets and Liabilities on a Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Recurring fair value measurements
Fair value
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Recurring fair value measurements
Fair value	6,906	1,990
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Recurring fair value measurements
Fair value
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member]
Recurring fair value measurements
Fair value	6,906	1,990
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member]
Recurring fair value measurements
Fair value	6,906	1,990
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Recurring fair value measurements
Fair value
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Recurring fair value measurements
Fair value	1,929	1,015
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Recurring fair value measurements
Fair value
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member]
Recurring fair value measurements
Fair value	1,929	1,015
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans [Member]
Recurring fair value measurements
Fair value	1,929	1,015
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Recurring fair value measurements
Fair value
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Recurring fair value measurements
Fair value	861
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Recurring fair value measurements
Fair value
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member] | Fair Value, Measurements, Recurring [Member]
Recurring fair value measurements
Fair value	861
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member]
Recurring fair value measurements
Fair value	861
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Recurring fair value measurements
Fair value
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Recurring fair value measurements
Fair value		3,005
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Recurring fair value measurements
Fair value
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member]
Recurring fair value measurements
Fair value		3,005
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Recurring fair value measurements
Fair value	9,696
Federal Home Loan Mortgage Corporation Medium Term Note [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Recurring fair value measurements
Fair value
Federal Home Loan Mortgage Corporation Medium Term Note [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Recurring fair value measurements
Fair value	359
Federal Home Loan Mortgage Corporation Medium Term Note [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Recurring fair value measurements
Fair value
Federal Home Loan Mortgage Corporation Medium Term Note [Member] | Fair Value, Measurements, Recurring [Member]
Recurring fair value measurements
Fair value	359
Federal Home Loan Mortgage Corporation Medium Term Note [Member]
Recurring fair value measurements
Fair value	359
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Recurring fair value measurements
Fair value
Total recurring fair value measurements
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Recurring fair value measurements
Fair value	10,055
Total recurring fair value measurements	10,055	3,005
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Recurring fair value measurements
Fair value
Total recurring fair value measurements
Fair Value, Measurements, Recurring [Member]
Recurring fair value measurements
Fair value	10,055
Total recurring fair value measurements	10,055	3,005
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Nonrecurring fair value measurements
Impaired loans
Other real estate owned
Total nonrecurring fair value measurements
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Nonrecurring fair value measurements
Impaired loans
Other real estate owned
Total nonrecurring fair value measurements
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Nonrecurring fair value measurements
Impaired loans	1,610	1,151
Other real estate owned	720	1,410
Total nonrecurring fair value measurements	2,330	2,561
Fair Value, Measurements, Nonrecurring [Member]
Nonrecurring fair value measurements
Impaired loans	1,610	1,151
Other real estate owned	720	1,410
Total nonrecurring fair value measurements	2,330	2,561
Fair value	$ 10,055	$ 3,005

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Note 12 - Fair Value Measurements and Fair Values of Financial Instruments - Additional Quantitative Information About Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Appraisal of Collateral [Member] - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2016	Dec. 31, 2015
Impaired Loans [Member] | Minimum [Member]
Unobservable input, range		0.00%	0.00%
Impaired Loans [Member] | Maximum [Member]
Unobservable input, range		31.00%	25.00%
Impaired Loans [Member] | Weighted Average [Member]
Unobservable input, range		3.00%	3.00%
Impaired Loans [Member]
Total fair value		$ 1,610	$ 1,151
Valuation techniques	[1]	Appraisal of collateral (1)	Appraisal of collateral (1)
Unobservable input	[2]	Appraisal adjustments (2)	Appraisal adjustments (2)
Other Real Estate Owned [Member] | Minimum [Member]
Unobservable input, range		0.00%	0.00%
Other Real Estate Owned [Member] | Maximum [Member]
Unobservable input, range		29.00%	29.00%
Other Real Estate Owned [Member] | Weighted Average [Member]
Unobservable input, range		8.00%	5.00%
Other Real Estate Owned [Member]
Total fair value		$ 720	$ 1,410
Valuation techniques	[1]	Appraisal of collateral (1)	Appraisal of collateral (1)
Unobservable input	[2]	Appraisal adjustments (2)	Appraisal adjustments (2)

[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.

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Note 12 - Fair Value Measurements and Fair Values of Financial Instruments - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Reported Value Measurement [Member]
Financial Assets
Cash and cash equivalents	$ 17,680	$ 17,206
Investment in interest-earning time deposits	6,063	6,136
Fair value	10,055	3,005
Loans held for sale	4,247	5,064
Loans receivable, net	161,627	143,305
Accrued interest receivable	932	983
Investment in FHLB stock	593	618
Bank-owned life insurance	3,705	3,638
Financial Liabilities
Deposits	174,651	149,229
FHLB short-term borrowings	6,000	6,000
FHLB long-term borrowings	6,500	7,500
Accrued interest payable	136	123
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Assets
Cash and cash equivalents	17,680	17,206
Investment in interest-earning time deposits
Fair value
Loans held for sale
Loans receivable, net
Accrued interest receivable	932	983
Investment in FHLB stock	593	618
Bank-owned life insurance	3,705	3,638
Financial Liabilities
Deposits	36,712	33,438
FHLB short-term borrowings	6,000	6,000
FHLB long-term borrowings
Accrued interest payable	136	123
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Assets
Cash and cash equivalents
Investment in interest-earning time deposits
Fair value	10,055	3,005
Loans held for sale	4,419	5,244
Loans receivable, net
Accrued interest receivable
Investment in FHLB stock
Bank-owned life insurance
Financial Liabilities
Deposits
FHLB short-term borrowings
FHLB long-term borrowings
Accrued interest payable
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Assets
Cash and cash equivalents
Investment in interest-earning time deposits	6,112	6,206
Fair value
Loans held for sale
Loans receivable, net	163,450	145,134
Accrued interest receivable
Investment in FHLB stock
Bank-owned life insurance
Financial Liabilities
Deposits	139,908	117,206
FHLB short-term borrowings
FHLB long-term borrowings	6,544	7,479
Accrued interest payable
Estimate of Fair Value Measurement [Member]
Financial Assets
Cash and cash equivalents	17,680	17,206
Investment in interest-earning time deposits	6,112	6,206
Fair value	10,055	3,005
Loans held for sale	4,419	5,244
Loans receivable, net	163,450	145,134
Accrued interest receivable	932	983
Investment in FHLB stock	593	618
Bank-owned life insurance	3,705	3,638
Financial Liabilities
Deposits	176,620	150,644
FHLB short-term borrowings	6,000	6,000
FHLB long-term borrowings	6,544	7,479
Accrued interest payable	136	123
Fair value	10,055	3,005
Accrued interest receivable	932	983
Bank-owned life insurance	$ 3,705	$ 3,638