10-Q

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 March 31, 2021

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)

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

 

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

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

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

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

Large accelerated filer	[   ]	Accelerated filer	[  ]
Non-accelerated filer	[X]	Smaller reporting company	[X]
		Emerging growth company	[  ]

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).          [  ] Yes     [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 May 11, 2021, 1,991,697 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 March 31, 2021 and December 31, 2020 (Unaudited)	1
Consolidated Statements of Income for the Three Months Ended March 31, 2021 and 2020 (Unaudited)	2
Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2021 and 2020 (Unaudited)	3
Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2021 and 2020 (Unaudited)	4
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020 (Unaudited)	5
Notes to Unaudited Consolidated Financial Statements	7
Item 2 -                Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3 -                Quantitative and Qualitative Disclosures About Market Risk	42
Item 4 -                Controls and Procedures	42
PART II - OTHER INFORMATION
Item 1 -                Legal Proceedings	43
Item 1A -             Risk Factors	43
Item 2 -                Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 3 -                Defaults Upon Senior Securities	45
Item 4 -                Mine Safety Disclosures	45
Item 5 -                Other Information	45
Item 6 -                Exhibits	45
SIGNATURES

ITEM 1. FINANCIAL STATEMENTS

Quaint Oak Bancorp, Inc.

Consolidated Balance Sheets (Unaudited)

	At March 31,			At December 31,
	2021			2020
	(In thousands, except share data)
Assets
Due from banks, non-interest-bearing	$	1,214		$	205
Due from banks, interest-bearing		41,449			33,708
Cash and cash equivalents		42,663			33,913
Investment in interest-earning time deposits		7,964			9,463
Investment securities available for sale		6,390			10,725
Loans held for sale		73,742			53,191
Loans receivable, net of allowance for loan losses (2021 $3,315; 2020  $3,061)		409,881			359,122
Accrued interest receivable		3,577			3,054
Investment in Federal Home Loan Bank stock, at cost		1,265			1,665
Bank-owned life insurance		4,073			4,054
Premises and equipment, net		2,414			2,341
Goodwill		3,107			515
Other intangible, net of accumulated amortization		259			271
Other real estate owned, net		316			286
Prepaid expenses and other assets		5,339			5,475
Total Assets	$	560,990		$	484,075
Liabilities and Stockholders’ Equity
Liabilities
Deposits:
Non-interest bearing	$	94,985		$	54,202
Interest-bearing		344,732			300,643
Total deposits		439,717			354,845
Federal Home Loan Bank short-term borrowings		-			10,000
Federal Home Loan Bank long-term borrowings		28,193			28,193
Federal Reserve Bank long-term borrowings		43,526			48,134
Subordinated debt		7,907			7,899
Other borrowings		3,057			-
Accrued interest payable		569			362
Advances from borrowers for taxes and insurance		1,780			2,486
Accrued expenses and other liabilities		4,384			3,428
Total Liabilities		529,133			455,347
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; 1,989,483 and 1,986,528 outstanding at March 31, 2021 and December 31, 2020, respectively		28			28
Additional paid-in capital		15,382			15,282
Treasury stock, at cost: 787,767 and 790,722 shares at March 31, 2021 and December 31, 2020, respectively		(5,099	)		(5,114	)
Unallocated common stock held by Employee Stock Ownership Plan (ESOP)		(33	)		(51	)
Accumulated other comprehensive income		60			118
Retained earnings		19,316			18,465
Total Quaint Oak Bancorp, Inc. Stockholders' Equity		29,654			28,728
Noncontrolling Interest		2,203			-
Total Stockholders' Equity	$	31,857		$	28,728
Total Liabilities and Stockholders’ Equity	$	560,990		$	484,075

See accompanying notes to the unaudited consolidated financial statements.

1

Quaint Oak Bancorp, Inc.

Consolidated Statements of Income (Unaudited)

	For the Three Months Ended
	March 31,
	2021			2020
	(In thousands, except share
	and per share data)
Interest Income
Interest on loans, including fees	$	4,743		$	3,472
Interest and dividends on time deposits, investment securities, interest-bearing
deposits with others, and Federal Home Loan Bank stock		146			199
Total Interest Income		4,889			3,671
Interest Expense
Interest on deposits		876			1,121
Interest on Federal Home Loan Bank short-term borrowings		6			30
Interest on Federal Home Loan Bank long-term borrowings		139			147
Interest on Federal Reserve Bank long-term borrowings		40			-
Interest on subordinated debt		130			130
Interest on other borrowings		70			-
Total Interest Expense		1,261			1,428
Net Interest Income		3,628			2,243
Provision for Loan Losses		254			115
Net Interest Income after Provision for Loan Losses		3,374			2,128
Non-Interest Income
Mortgage banking, equipment lending and title abstract fees		531			294
Real estate sales commissions, net		31			33
Insurance commissions		107			97
Other fees and services charges		122			83
Loan servicing income		223			-
Income from bank-owned life insurance		19			19
Net gain on loans held for sale		1,215			781
Gain on the sale of SBA loans		201			-
Gain on sales of investment securities available for sale		317			-
Total Non-Interest Income		2,766			1,307
Non-Interest Expense
Salaries and employee benefits		3,400			1,978
Directors’ fees and expenses		68			61
Occupancy and equipment		377			205
Data processing		205			137
Professional fees		163			114
FDIC deposit insurance assessment		51			21
Other real estate owned expenses		9			14
Advertising		105			75
Amortization of other intangible		12			12
Other		329			210
Total Non-Interest Expense		4,719			2,827
Income before Income Taxes		1,421			608
Income Taxes		424			176
Net Income	$	997		$	432
Net Loss Attributable to Noncontrolling Interest	$	(33	)	$	-
Net Income Attributable to Quaint Oak Bancorp, Inc.	$	1,030		$	432
Earnings per share – basic	$	0.52		$	0.22
Average shares outstanding - basic		1,980,007			1,964,132
Earnings per share - diluted	$	0.50		$	0.21
Average shares outstanding - diluted		2,066,411			2,031,494

See accompanying notes to the unaudited consolidated financial statements.

2

Quaint Oak Bancorp, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

	March 31,
	2021			2020
	(In Thousands)
Net Income	$	997		$	432
Other Comprehensive Loss:
Unrealized gains (losses) on investment securities available for sale		244			(29	)
Income tax effect		(52	)		5
Reclassification adjustment for gain on sale of investment securities included in net income		(317	)		-
Income tax effect		67			-
Net other comprehensive loss		(58	)		(24	)
Total Comprehensive Income	$	939		$	408
Comprehensive Loss Attributable to Noncontrolling Interest	$	(33	)	$	-
Comprehensive Income Attributable to Quaint Oak Bancorp, Inc.	$	972		$	408

See accompanying notes to the unaudited consolidated financial statements.

3

Quaint Oak Bancorp, Inc.

Consolidated Statements of Stockholders' Equity (Unaudited)

For the Three Months Ended March 31, 2021
											Unallocated
	Common Stock										Common			Accumulated
	Number of					Additional					Stock Held			Other									Total
	Shares					Paid-in		Treasury			by Benefit			Comprehensive			Retained			Noncontrolling			Stockholders’
	Outstanding			Amount		Capital		Stock			Plans			Income			Earnings			Interest			Equity
		(In thousands, except share data)
BALANCE – DECEMBER 31, 2020		1,986,528		$	28	$	15,282	$	(5,114	)	$	(51	)	$	118		$	18,465		$	-		$	28,728
Common stock allocated by ESOP (3,607 shares)							41					18												59
Treasury stock purchase		(276	)						(5	)														(5	)
Reissuance of treasury stock under 401(k) Plan		1,231					12		8															20
Reissuance of treasury stock for exercised stock options		2,000					4		12															16
Stock based compensation expense							43																	43
Noncontrolling interest initial contribution																					2,236			2,236
Cash dividends declared ($0.11 per share)																		(179	)					(179	)
Net income																		1,030			(33	)		997
Other comprehensive loss, net															(58	)								(58	)
BALANCE – MARCH 31, 2021		1,989,483		$	28	$	15,382	$	(5,099	)	$	(33	)	$	60		$	19,316		$	2,203		$	31,857

For the Three Months Ended March 31, 2020
											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
BALANCE –DECEMBER 31, 2019		1,984,857		$	28	$	14,990	$	(4,950	)	$	(118	)	$	20		$	15,937		$	25,907
Common stock allocated by ESOP (3,607 shares)							35					17									52
Treasury stock purchase		(5,372	)						(67	)											(67	)
Reissuance of treasury stock under 401(k) Plan		851					7		5												12
Reissuance of treasury stock for exercised stock options		6,500					13		39												52
Stock based compensation expense							43														43
Cash dividends declared ($0.09 per share)																		(178	)		(178	)
Net income																		432			432
Other comprehensive loss, net															(24	)					(24	)
BALANCE – MARCH 31, 2020		1,986,836		$	28	$	15,088	$	(4,973	)	$	(101	)	$	(4	)	$	16,191		$	26,229

See accompanying notes to the unaudited consolidated financial statements.

4

Quaint Oak Bancorp, Inc.

Consolidated Statements of Cash Flows (Unaudited)

	For the Three Months
	Ended March 31,
	2021			2020
	(In Thousands)
Cash Flows from Operating Activities
Net income	$	997		$	432
Adjustments to reconcile net income to net cash used in operating activities:
Provision for loan losses		254			115
Depreciation of premises and equipment		111			53
Amortization of operating right-of-use assets		38			28
Amortization of subordinated debt issuance costs		8			8
Amortization of other intangible		12			12
Net amortization of securities premiums		5			3
Accretion of deferred loan fees and costs, net		(793	)		(116	)
Stock-based compensation expense		102			95
Gain on the sale of investment securities available for sale		(317	)		-
Net gain on loans held for sale		(1,215	)		(781	)
Loans held for sale-originations		(84,893	)		(34,672	)
Loans held for sale-proceeds		76,471			33,458
Gain on the sale of SBA loans		(201	)		-
Increase in the cash surrender value of bank-owned life insurance		(19	)		(19	)
Changes in assets and liabilities which provided (used) cash:
Accrued interest receivable		(523	)		(179	)
Prepaid expenses and other assets		808			77
Accrued interest payable		133			(1	)
Accrued expenses and other liabilities		285			(1	)
Net Cash Used in Operating Activities		(8,737	)		(1,488	)
Cash Flows from Investing Activities
Purchase of interest-earning time deposits		-			(499	)
Redemption of interest-earning time deposits		1,499			749
Principal repayments on investment securities available for sale		250			259
Proceeds from the sale of investment securities available for sale		4,323			-
Net increase in loans receivable		(51,645	)		(4,395	)
Redemption of Federal Home Loan Bank stock		400			240
Acquisition, net of cash acquired		1,259			-
Capitalized expenditures on other real estate owned		(30	)		(107	)
Purchase of premises and equipment		(147	)		(136	)
Net Cash Used in Investing Activities		(44,091	)		(3,889	)
Cash Flows from Financing Activities
Net increase in demand deposits, money markets, and savings accounts		95,064			4,501
Net (decrease) increase in certificate accounts		(10,192	)		8,395
Decrease in advances from borrowers for taxes and insurance		(706	)		(872	)
Repayment of Federal Home Loan Bank short-term borrowings		(10,000	)		(10,000	)
Proceeds from Federal Home Loan Bank long-term borrowings		-			3,922
Repayment of Federal Reserve Bank long-term borrowings		(4,608	)		-
Repayment of other borrowings		(7,832	)		-
Dividends paid		(179	)		(178	)
Purchase of treasury stock		(5	)		(67	)
Proceeds from the reissuance of treasury stock		20			12
Proceeds from the exercise of stock options		16			52
Net Cash Provided by Financing Activities		61,578			5,765
Net Increase in Cash and Cash Equivalents		8,750			388
Cash and Cash Equivalents – Beginning of Year		33,913			14,555
Cash and Cash Equivalents – End of Year	$	42,663		$	14,943

See accompanying notes to the unaudited consolidated financial statements.

5

Quaint Oak Bancorp, Inc.

Consolidated Statements of Cash Flows (Unaudited)

	For the Three Months
	Ended March 31,
	2021		2020
	(In Thousands)
Supplementary Disclosure of Cash Flow and Non-Cash Information:
Cash payments for interest	$	1,054	$	1,430
Cash payments for income taxes	$	85	$	60
Initial recognition of operating lease right-of use assets	$	670	$	632
Initial recognition of operating lease obligations	$	670	$	632
Acquisition of controlling interest in Oakmont Capital Holdings, LLC
Non-cash assets acquired:
Loans held for sale	$	10,914	$	-
Premises and equipment		37		-
Goodwill		2,592		-
Other assets		24		-
Total non-cash assets acquired		13,567		-
Liabilities assumed:
Other borrowings		12,515		-
Accrued interest payable		74		-
Total liabilities assumed		12,589		-
Net non-cash assets acquired	$	978	$	-
Cash and cash equivalents acquired	$	4,259	$	-

See accompanying notes to the unaudited consolidated financial statements.

6

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 1 – Financial Statement Presentation and Critical Accounting Policies

Basis of Financial Presentation.  The consolidated financial statements include the accounts of Quaint Oak Bancorp, Inc., a Pennsylvania chartered corporation (the "Company" or "Quaint Oak Bancorp") and its wholly owned subsidiary, Quaint Oak Bank, a Pennsylvania chartered stock savings bank, along with its wholly owned subsidiaries.  At March 31, 2021, the Bank has five wholly-owned subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Real Estate, LLC, Quaint Oak Abstract, LLC, QOB Properties, LLC, and Quaint Oak Insurance Agency, LLC, each a Pennsylvania limited liability company.  The mortgage company offers mortgage banking in the Lehigh Valley, Delaware Valley and Philadelphia County regions of Pennsylvania.  The real estate and abstract companies offer real estate sales and title abstract services, respectively, primarily in the Lehigh Valley region of Pennsylvania.  These companies began operation in July 2009.  In February, 2019, Quaint Oak Mortgage opened a mortgage banking office in Philadelphia, Pennsylvania.  QOB Properties, LLC began operations in July 2012 and holds Bank properties acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure.  Quaint Oak Insurance Agency, LLC began operations in August 2016 and provides a broad range of personal and commercial insurance coverage solutions. In February 2020, Quaint Oak Bank opened a full-service retail banking office in Philadelphia, Pennsylvania. As of January 4, 2021, the Bank holds a majority equity position in Oakmont Capital Holdings, LLC, a multi-state equipment finance company based in West Chester, Pennsylvania with a second significant facility located in Albany, Minnesota. All significant intercompany balances and transactions have been eliminated.

The Bank is subject to regulation by the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation.  Pursuant to the Bank’s election under Section 10(l) of the Home Owners’ Loan Act, the Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. The market area served by the Bank is principally Bucks, Montgomery and Philadelphia Counties and the Lehigh Valley area in Pennsylvania.  The Bank has three banking locations: the main office location in Southampton, Pennsylvania and regional banking offices in the Lehigh Valley and Philadelphia. The Bank also has a mortgage office in Philadelphia and an insurance agency office in New Britain Township, Pennsylvania. The principal deposit products offered by the Bank are certificates of deposit, money market accounts, non-interest bearing checking accounts for businesses and consumers, and savings accounts. The principal loan products offered by the Bank are fixed and adjustable rate residential and commercial mortgages, construction loans, commercial business loans, home equity loans, and lines of credit.

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

The foregoing consolidated financial statements are unaudited; but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation thereof.  The balances as of December 31, 2020 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 2020 Annual Report on Form 10-K.  The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.

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 and the valuation of deferred tax assets.

Critical Accounting Policies. The Company's critical accounting policies involving significant judgments and assumptions used in the preparation of the consolidated financial statements as of March 31, 2021 have remained unchanged from the disclosures presented in our Annual Report on Form 10-K, except for the following:

Intangible Assets.   Intangible assets on the consolidated balance sheets represent the acquisition by Quaint Oak Insurance Agency of the renewal rights to the book of business on August 1, 2016 at a total cost of $1.0 million. Based on a valuation, $515,000 of the purchase price was determined to be goodwill and $485,000 was determined to be related to the renewal rights to the book of business and deemed an other intangible asset.  The renewal rights are being amortized over a ten year period based upon the annual retention rate of the book of business.  Also included in intangible assets is $2.6 million recognized as part of the acquisition of Oakmont Capital Holdings, LLC. The Company will complete a goodwill and other intangible asset analysis at least on an annual basis or more often if events and circumstances indicate that there may be impairment.

7

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

Recent Accounting Pronouncements Not Yet Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. This Update 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 Update 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.

In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). This Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test.  In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination.  Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount.  An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.  A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019.  In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), which deferred the effective date for ASC 350, Intangibles – Goodwill and Other, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years.  This update is not expected to have a significant impact on the Company’s financial statements.

In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10.3. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings.  For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. In November, 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), which deferred the effective date for ASC 944, Financial Services – Insurance, for public business entities that are SEC filers, except for smaller reporting companies, to fiscal years beginning after December 15, 2021, and interim periods within those fiscal years and for all other entities, including smaller reporting companies, to fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.  This Update is not expected to have a significant impact on the Company’s financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), to simplify the accounting for income taxes, change the accounting for certain tax transactions, and make minor improvements to the codification. This Update provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax and provides guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction. The Update also changes current guidance for making an intraperiod allocation, if there is a loss in continuing operations and gains outside of continuing operations; determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting; accounting for tax law changes and year-to-date losses in interim periods; and determining how to apply the income tax guidance to franchise taxes that are partially based on income.

8

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

For public business entities, the amendments in this Update are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. This Update is not expected to have a significant impact on the Company’s financial statements.

In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments. This ASU was issued to improve and clarify various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. The ASU includes seven issues that describe the areas of improvement and the related amendments to GAAP; they are intended to make the standards easier to understand and apply and to eliminate inconsistencies, and they are narrow in scope and are not expected to significantly change practice for most entities. Among its provisions, the ASU clarifies that all entities, other than public business entities that elected the fair value option, are required to provide certain fair value disclosures under ASC 825, Financial Instruments, in both interim and annual financial statements. It also clarifies that the contractual term of a net investment in a lease under Topic 842 should be the contractual term used to measure expected credit losses under Topic 326. Amendments related to ASU 2019-04 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is not permitted before an entity’s adoption of ASU 2016-01. Amendments related to ASU 2016-13 for entities that have not yet adopted that guidance are effective upon adoption of the amendments in ASU 2016-13. Early adoption is not permitted before an entity’s adoption of ASU 2016-13. Amendments related to ASU 2016-13 for entities that have adopted that guidance are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Other amendments are effective upon issuance of this ASU. This Update is not expected to have a significant impact on the Company’s financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020, to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would not have to re-measure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. 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 October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, which clarifies that, for each reporting period, an entity should reevaluate whether a callable debt security is within the scope of ASC 310-20-35-33. For public business entities, ASU 2020-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. For all other entities, ASU 2020-08 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

9

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which provides optional temporary guidance for entities transitioning away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates (IBORs) to new references rates so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions within Topic 848. ASU 2021-01 clarifies that the derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. ASU 2021-01 is effective immediately for all entities. Entities may elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The amendments in this update do not apply to contract modifications made, as well as new hedging relationships entered into, after December 31, 2022, and to existing hedging relationships evaluated for effectiveness for periods after December 31, 2022, except for certain hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

Reclassifications.  Certain items in the 2020 consolidated financial statements have been reclassified to conform to the presentation in the 2021 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 – 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 awards. Common stock equivalents which are considered antidilutive are not included for the purposes of this calculation. For the three months ended March 31, 2021 and 2020, all unvested restricted stock program awards and outstanding stock options under the 2008 Stock Option Plan and the 2013 Stock Incentive Plan representing shares were dilutive.  For the three months ended March 31, 2021 and 2020, all outstanding stock options awarded in 2013 under the 2013 Stock Incentive Plan representing shares were dilutive. For the three months ended March 31, 2021 and 2020, all outstanding stock options awarded in 2018 under the 2013 and 2018 Stock Incentive Plans representing shares were anti-dilutive.

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

	For the Three Months Ended March 31,
	2021		2020
Net Income Attributable to Quaint Oak Bancorp, Inc.	$	1,030,000	$	432,000
Weighted average shares outstanding – basic		1,980,007		1,964,132
Effect of dilutive common stock equivalents		86,403		67,362
Adjusted weighted average shares outstanding – diluted		2,066,411		2,031,494
Basic earnings per share	$	0.52	$	0.22
Diluted earnings per share	$	0.50	$	0.21

10

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 3 – 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 ended March 31, 2021 and 2020 (in thousands):

	Unrealized Gains (Losses) on Investment Securities Available for Sale (1)
	For the Three Months Ended March 31,
	2021			2020
Balance at the beginning of the period	$	118		$	20
Other comprehensive income (loss) before classifications		192			(24	)
Amount reclassified from accumulated other comprehensive income (loss)		(250	)		-
Total other comprehensive loss		(58	)		(24	)
Balance at the end of the period	$	60		$	(4	)

_________________

(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 income (loss) for the three months ended March 31, 2021 and 2020 (in thousands):

Details About Other Comprehensive Income (Loss)	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (1)			Affected Line Item in the Consolidated Statements of Income
	For the Three Months Ended March 31,
	2021		2020
Sale of securities available for sale	$317	$-		Gain on sales of investment securities available for sale
Tax effect	(67)	-		Income taxes
Total reclassification for the period	$250	$-

____________________

(1) Amounts in parentheses indicate debits.

Note 4 – Investment in Interest-Earning Time Deposits

The investment in interest-earning time deposits as of March 31, 2021 and December 31, 2020, by contractual maturity, are shown below (in thousands):

	March 31, 2021		December 31, 2020
Due in one year or less	$	4,060	$	4,006
Due after one year through five years		3,904		5,457
Total	$	7,964	$	9,463

11

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 5 – Investment Securities Available for Sale

The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale at March 31, 2021 and December 31, 2020 are summarized below (in thousands): 

	March 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale:
Mortgage-backed securities:
Government National Mortgage Association securities	$	4,644	$	27	$	(1	)	$	4,670
Federal National Mortgage Association securities		170		7		-			177
Total mortgage-backed securities		4,814		34		(1	)		4,847
Debt securities:
Corporate notes		1,500		43		-			1,543
Total available-for-sale-securities	$	6,314	$	77	$	(1	)	$	6,390

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale:
Mortgage-backed securities:
Government National Mortgage Association securities	$	4,887	$	27	$	(1	)	$	4,913
Federal National Mortgage Association securities		183		6		-			189
Total mortgage-backed securities		5,070		33		(1	)		5,102
Debt securities:
Corporate notes		5,506		117		-			5,623
Total available-for-sale-securities	$	10,576	$	150	$	(1	)	$	10,725

The amortized cost and fair value of debt securities at March 31, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):

	Available for Sale
	Amortized Cost		Fair Value
Due after five years through ten years	$	1,500	$	1,543
Due after ten years		4,814		4,847
Total	$	6,314	$	6,390

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 March 31, 2021  and December 31, 2020 (in thousands):

	March 31, 2021
			Less than Twelve Months					Twelve Months or Greater				Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Government National Mortgage Association securities		1	$	657	$	(1	)	$	-	$	-	$	657	$	(1	)

12

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 5 – Investment Securities Available for Sale (Continued)

	December 31, 2020
			Less than Twelve Months					Twelve Months or Greater				Total
					Gross					Gross				Gross
	Number of				Unrealized					Unrealized				Unrealized
	Securities		Fair Value		Losses			Fair Value		Losses		Fair Value		Losses
Government National Mortgage    Association securities		1	$	681	$	(1	)	$	-	$	-	$	681	$	(1	)

At March 31, 2021, there was one security in an unrealized loss position that at such date had an aggregate depreciation of 0.17% from the Company’s amortized cost basis. Management believes that the estimated fair value of the security 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 security until the anticipated recovery of fair value occurs. Management does not believe the individual unrealized loss as of March 31, 2021 represents an other-than-temporary impairment. There were no impairment charges recognized during the three months ended March 31, 2021 or 2020.

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

The composition of net loans receivable is as follows:

	March 31, 2021			December 31, 2020
Real estate loans:
One-to-four family residential:
Owner occupied	$	10,351		$	7,528
Non-owner occupied		41,543			38,884
Total one-to-four family residential		51,894			46,412
Multi-family (five or more) residential		24,376			24,043
Commercial real estate		132,561			131,820
Construction		5,969			4,775
Home equity		4,127			3,788
Total real estate loans		218,927			210,838
Commercial business		198,967			154,387
Other consumer		16			17
Total Loans		417,910			365,242
Deferred loan fees and costs		(4,714	)		(3,059	)
Allowance for loan losses		(3,315	)		(3,061	)
Net Loans	$	409,881		$	359,122

13

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

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 March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	9,765	$	415	$	171	$	-	$	10,351
One-to-four family residential non-owner occupied		41,239		-		304		-		41,543
Multi-family residential		24,376		-		-		-		24,376
Commercial real estate		130,002		2,369		190		-		132,561
Construction		5,969		-		-		-		5,969
Home equity		4,127		-		-		-		4,127
Commercial business		198,929		-		38		-		198,967
Other consumer		16		-		-		-		16
Total	$	414,423	$	2,784	$	703	$	-	$	417,910

	December 31, 2020
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	6,942	$	415	$	171	$	-	$	7,528
One-to-four family residential non-owner occupied		38,567		-		317		-		38,884
Multi-family residential		24,043		-		-		-		24,043
Commercial real estate		129,236		2,292		292		-		131,820
Construction		4,775		-		-		-		4,775
Home equity		3,788		-		-		-		3,788
Commercial business		154,387		-		-		-		154,387
Other consumer		17		-		-		-		17
Total	$	361,755	$	2,707	$	780	$	-	$	365,242

14

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - 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 March 31, 2021 as well as the average recorded investment and related interest income for the period then ended (in thousands):

	March 31, 2021
	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	$	171	$	178	$	-	$	171	$	3
One-to-four family residential non-owner occupied		9		9		-		9		-
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		3
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		38		38		-		38		-
Other consumer		-		-		-		-		-
								-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		-		-		-		-		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	171	$	178	$	-	$	171	$	3
One-to-four family residential non-owner occupied		9		9		-		9		-
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		3
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		38		38		-		38		-
Other consumer		-		-		-		-		-
Total	$	349	$	356	$	-	$	349	$	6

15

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - 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, 2020 as well as the average recorded investment and related interest income for the year then ended (in thousands):

	December 31, 2020
	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	$	171	$	178	$	-	$	171	$	1
One-to-four family residential non-owner occupied		19		19		-		19		3
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		1
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
								-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		-		-		-		-		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	171	$	178	$	-	$	171	$	1
One-to-four family residential non-owner occupied		19		19		-		19		3
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		1
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	321	$	328	$	-	$	321	$	5

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 March 31, 2021, the Company had two loans totaling $140,000 that were identified as troubled debt restructurings. One of these loans was performing in accordance with its modified terms and one was on non-accrual as of March 31, 2021. During the period ended March 31, 2021, no new loans were identified as TDRs. At December 31, 2020, the Company had two loans totaling $150,000 that were identified as troubled debt restructurings. Both of these loans were performing in accordance with their modified terms. 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 six months and future collection under the revised terms is probable.

16

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

The following tables present the Company’s TDR loans as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands):

	March 31, 2021
	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		1		9		9		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		1		131		-		131		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		2	$	140	$	9	$	131	$	-

	December 31, 2020
	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		1		19		19		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		1		131		-		131		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		2	$	150	$	19	$	131	$	-

The contractual aging of the TDRs in the table above as of March 31, 2021 and December 31, 2020 is as follows (in thousands):

	March 31, 2021
	Current		Past Due 30-89 Days		90 Days or More Past Due		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		9		9
Multi-family residential		-		-		-		-		-
Commercial real estate		131		-		-		-		131
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	131	$	-	$	-	$	9	$	140

17

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

	December 31, 2020
	Current		Past Due 30-89 Days		90 Days or More Past Due		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		19		19
Multi-family residential		-		-		-		-		-
Commercial real estate		131		-		-		-		131
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	131	$	-	$	-	$	19	$	150

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 March 31, 2021 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.

18

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - 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 months ended March 31, 2021 and recorded investment in loans receivable as of March 31, 2021 (in thousands):

	March 31, 2021
	1-4 Family Residential Owner Occupied		1-4 Family Residential Non-Owner Occupied		Multi-Family Residential		Commercial Real Estate		Construction			Home Equity		Commercial Business and Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	88	$	362	$	229	$	1,287	$	62		$	20	$	763	$	250	$	3,061
Charge-offs		-		-		-		-		-			-		-		-		-
Recoveries		-		-		-		-		-			-		-		-		-
Provision		19		14		3		92		(5	)		7		124		-		254
Ending balance	$	107	$	376	$	232	$	1,379	$	57		$	27	$	887	$	250	$	3,315
Ending balance evaluated
for impairment:
Individually	$	-	$	-	$	-	$	-	$	-		$	-	$	-	$	-	$	-
Collectively	$	107	$	376	$	232	$	1,379	$	57		$	27	$	887	$	250	$	3,315
Loans receivable:
Ending balance:	$	10,351	$	41,543	$	24,376	$	132,561	$	5,969		$	4,127	$	198,983			$	417,910
Ending balance evaluated
for impairment:
Individually	$	171	$	9	$	-	$	131	$	-		$	-	$	38			$	349
Collectively	$	10,180	$	41,534	$	24,376	$	132,430	$	5,969		$	4,127	$	198,945			$	417,561

The Bank allocated increased allowance for loan loss provisions to the commercial business loan portfolio class for the three months ended March 31, 2021, due primarily to changes in qualitative and quantitative factors in this portfolio class. The Bank allocated increased allowance for loan loss provisions to the commercial real estate loan portfolio class for the three months ended March 31, 2021, due primarily to changes in qualitative factors in this portfolio class. In general, the primary driver of the increase in qualitative factors was the economic trends factor associated with the COVID-19 pandemic.

19

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - 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 months ended March 31, 2020 and recorded investment in loans receivable as of March 31, 2020 (in thousands):

	March 31, 2020
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non-Owner Occupied			Multi- Family Residential		Commercial Real Estate		Construction			Home Equity		Commercial Business and Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	52		$	351		$	145	$	854	$	250		$	19	$	500	$	60	$	2,231
Charge-offs		-			-			-		-		-			-		-		-		-
Recoveries		-			-			-		-		-			-		-		-		-
Provision		(5	)		(44	)		72		90		(82	)		7		37		40		115
Ending balance	$	47		$	307		$	217	$	944	$	168		$	26	$	537	$	100	$	2,346
Ending balance evaluated
for impairment
Individually	$	-		$	-		$	-	$	3	$	-		$	-	$	-	$	-	$	3
Collectively	$	47		$	307		$	217	$	941	$	168		$	26	$	537	$	100	$	2.343

The Bank allocated increased allowance for loan loss provisions to the commercial real estate loan portfolio class for the three months ended March 31, 2020, due primarily to increased balances in this portfolio class.  The Bank allocated increased allowance for loan loss provisions to the multi-family residential loan and commercial business portfolio classes for the three months ended March 31, 2020, due primarily to changes in volume and qualitative factors in these portfolio classes.  The Bank allocated decreased allowance for loan loss provisions to the construction loan and 1-4 family non-owner occupied loan portfolio classes for the three months ended March 31, 2020, due primarily to a decrease in balances and delinquencies in this portfolio class and qualitative factors in these portfolio classes. In general, the primary driver of the increase in qualitative factors was the economic trends factor associated with the COVID-19 pandemic.

Following is a summary, by loan portfolio class, of changes in the allowance for loan losses for the year ended December 31, 2020 (in thousands):

	December 31, 2020
	1-4 Family Residential Owner Occupied		1-4 Family Residential Non-Owner Occupied		Multi-Family Residential		Commercial Real Estate		Construction			Home Equity		Commercial Business and Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	52	$	351	$	145	$	-	$	250		$	19	$	500	$	60	$	2,231
Charge-offs		-		-		-		-		854			-		-		-		-
Recoveries		-		-		-		-		-			-		-		-		-
Provision		36		11		84		433		(188	)		1		263		190		830
Ending balance	$	88	$	362	$	229	$	1,287	$	62		$	20	$	763	$	250	$	3,061
Ending balance evaluated
for impairment:
Individually	$	-	$	-	$	-	$	-	$	-		$	-	$	-	$	-	$	-
Collectively	$	88	$	362	$	229	$	1,287	$	62		$	20	$	763	$	250	$	3,061
Loans receivable:
Ending balance	$	7,528	$	38,884	$	24,043	$	131,820	$	4,775		$	3,788	$	154,404			$	365,242
Ending balance evaluated    for impairment:
Individually	$	171	$	19	$	-	$	131	$	-		$	-	$	-			$	321
Collectively	$	7,357	$	38,865	$	24,043	$	131,689	$	4,775		$	3,788	$	154,404			$	364,921

20

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

The Bank allocated increased allowance for loan loss provisions to the commercial real estate loan portfolio class for the year ended December 31, 2020, due primarily to changes in volume and qualitative factors in this portfolio class. The Bank allocated increased allowance for loan loss provisions to the commercial business loan portfolio class for the year ended December 31, 2020, due primarily to changes in qualitative and quantitative factors in this portfolio class. The Bank allocated increased allowance for loan loss provisions to the multi-family loan portfolio class for the year ended December 31, 2020, due primarily to changes in qualitative factors in this portfolio class. The Bank allocated decreased allowance for loan loss provisions to the construction loan portfolio class for the year ended December 31, 2020, due primarily to changes in quantitative and qualitative factors in this portfolio class. In general, the primary driver of the increase in qualitative factors was the economic trends factor associated with the COVID-19 pandemic. In this regard, the Bank increased the unallocated component of the allowance for the year ended December 31, 2020 to cover uncertainties that could affect management’s estimate of probable losses primarily associated with the COVID-19 pandemic.

The following table presents non-accrual loans by classes of the loan portfolio as of March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021		December 31, 2020
One-to-four family residential owner occupied	$	171	$	171
One-to-four family residential non-owner occupied		9		19
Multi-family residential		-		-
Commercial real estate		-		-
Construction		-		-
Home equity		-		-
Commercial business		38		-
Other consumer		-		-
Total	$	218	$	190

Non-performing loans, which consist of non-accruing loans plus accruing loans 90 days or more past due, amounted to $218,000 and $643,000 at March 31, 2021 and December 31, 2020, 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 months ended March 31, 2021 and 2020 there was no interest income recognized on non-accrual loans on a cash basis.  Interest income foregone on non-accrual loans was approximately $3,000 for the three months ended March 31, 2021 and March 31, 2020.

21

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 6 - 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 March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	30-89 Days Past Due		90 Days  or More Past Due		Total Past Due		Current		Total Loans Receivable		Loans Receivable 90 Days or More Past Due and Accruing
One-to-four family residential owner occupied	$	403	$	-	$	403	$	9,948	$	10,351	$	-
One-to-four family residential non-owner occupied		161		-		161		41,382		41,543		-
Multi-family residential		1,723		-		1,723		22,653		24,376		-
Commercial real estate		3,557		-		3,557		129,004		132,561		-
Construction		-		-		-		5,969		5,969		-
Home equity		-		-		-		4,127		4,127		-
Commercial business		-		-		-		198,967		198,967		-
Other consumer		-		-		-		16		16		-
Total	$	5,844	$	-	$	5,844	$	412,066	$	417,910	$	-

	December 31, 2020
	30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Loans Receivable 90 Days or More Past Due and Accruing
One-to-four family residential owner occupied	$	822	$	171	$	993	$	6,535	$	7,528	$	-
One-to-four family residential non-owner occupied		189		66		255		38,629		38,884		66
Multi-family residential		1,947		-		1,947		22,096		24,043		-
Commercial real estate		569		387		956		130,864		131,820		387
Construction		1,783		-		1,783		2,992		4,775		-
Home equity		-		-		-		3,788		3,788		-
Commercial business		574		-		574		153,813		154,387		-
Other consumer		-		-		-		17		17		-
Total	$	5,884	$	624	$	6,508	$	358,734	$	365,242	$	453

Note 7 – Goodwill and Other Intangible, 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 an independent insurance agency located in New Britain, Pennsylvania, that provides a broad range of personal and commercial insurance coverage solutions.  The Company paid $1.0 million for these rights.  Based on a valuation, $515,000 of the purchase price was determined to be goodwill and $485,000 was determined to be related to the renewal rights to the book of business and deemed to be an other intangible asset.  This other intangible asset is being amortized over a ten year period based upon the annual retention rate of the book of business.  The balance of other intangible asset at March 31, 2021 was $259,000 net of accumulated amortization of $226,000. Amortization expense for the three months ended March 31, 2021 and 2020 amounted to approximately $12,000.

22

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 7 – Goodwill and Other Intangible, Net (Continued)

On January 4, 2021 Quaint Oak Bank acquired a 51% controlling interest in Oakmont Capital Holdings, LLC, a multi-state equipment finance company.  Based on an independent valuation of the assets and liabilities acquired it was determined that $2.6 million in goodwill be recognized as part of the transaction.

Note 8 – Deposits

Deposits consist of the following classifications (in thousands):

	March 31, 2021		December 31, 2020
Non-interest bearing checking accounts	$	94,985	$	54,202
Passbook accounts		10		8
Savings accounts		1,529		1,570
Money market accounts		153,958		99,638
Certificates of deposit		189,235		199,427
Total deposits	$	439,717	$	354,845

Note 9 – Borrowings

Federal Home Loan Bank advances consist of the following at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021					December 31, 2020
	Amount		Weighted Interest Rate			Amount		Weighted  Interest Rate
Short-term borrowings	$	-		-	%	$	10,000		0.41	%
Fixed rate borrowings maturing:
2021		5,000		2.20			5,000		2.20
2022		7,171		2.10			7,171		2.10
2023		7,000		2.16			7,000		2.16
2024		6,167		2.05			6,167		2.05
2025		2,855		1.25			2,855		1.25
Total  FHLB long-term debt	$	28,193		2.03	%	$	28,193		2.03	%

Federal Reserve Bank long-term borrowings decreased $4.6 million, or 9.6%, to $43.5 million at March 31, 2021 from $48.1 million at December 31, 2020 as the Company paid off PPP loans pledged as collateral under the FRB’s Paycheck Protection Program Liquidity Facility (PPPLF).  The Company did not utilize the FRB’s PPPLF to fund second round PPP loans. Under the PPPLF the Company pledged certain PPP loans as collateral and borrowed from the Federal Reserve at a rate of 0.35% that is fixed for two years.

Other borrowings of $3.1 million represents outstanding balances on two lines of credit that Oakmont Capital Holdings, LLC has with a credit union which are used to fund equipment loans. Borrowing capacity on the two lines of credit total $11.0 million.

23

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 10 – Stock Compensation Plans

Employee Stock Ownership Plan

The Company maintains an Employee Stock Ownership Plan (ESOP) for the benefit of employees who meet the eligibility requirements of the plan.  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 during 2007.  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 pursuant to the terms of the original note.  The loan is secured by the unallocated shares of common stock held by the ESOP.  As of March 31, 2021 there were two quarterly payments remaining on the 2007 loan.

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 months ended March 31, 2021, the Company recognized $59,000 of ESOP expense.  During the three months ended March 31, 2020, the Company recognized $52,000 of ESOP expense.

Stock Incentive Plans

In May 2013, the shareholders of Quaint Oak Bancorp approved the adoption of the 2013 Stock Incentive Plan (the “2013 Stock Incentive Plan”).  The 2013 Stock Incentive Plan approved by shareholders in May 2013 covered a total of 195,000 shares, of which 48,750, or 25%, may be restricted stock awards, for a balance of 146,250 stock options assuming all the restricted shares are awarded.  In May 2018, the shareholders of Quaint Oak Bancorp approved the adoption of the 2018 Stock Incentive Plan (the “2018 Stock Incentive Plan”).  The 2018 Stock Incentive Plan approved by shareholders in May 2018 covered a total of 155,000 shares, of which 38,750, or 25%, may be restricted stock awards, for a balance of 116,250 stock options assuming all the restricted shares are awarded.

As of March 31, 2021 a total of 28,266 share awards were unvested under the 2013 and 2018 Stock Incentive Plans and up to 11,750 share awards were available for future grant under the 2018 Stock Incentive Plan and 1,200 share awards under the 2013 Stock Incentive Plan.  The 2013 and 2018 Stock Incentive Plan share awards have vesting periods of five years.

24

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 10 – Stock Compensation Plans (Continued)

Stock Incentive Plans (Continued)

A summary of the status of the share awards under the 2013 and 2018 Stock Incentive Plans as of March 31, 2021 and 2020 and changes during the three months ended March 31, 2021 and 2020 is as follows:

	March 31, 2021				March 31, 2020
	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		28,266	$	13.30		38,887	$	13.30
Granted		-		-		-		-
Vested		-		-		-		-
Forfeited		-		-		-		-
Unvested at the end of the period		28,266	$	13.30		38,887	$	13.30

Compensation expense on the restricted stock awards is recognized ratably over the five year vesting period in an amount which is equal to the fair value of the common stock at the date of grant.  During both the three months ended March 31, 2021 and 2020, the Company recognized approximately $32,000 of compensation expense.  A tax benefit of approximately $7,000 was recognized during both the three months ended March 31, 2021 and 2020. As of March 31, 2021, approximately $275,000 in additional compensation expense will be recognized over the remaining service period of approximately 2.1 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 authorized 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 Option Plan expired February 13, 2018, however, outstanding options granted in 2013 remain valid and existing for the remainder of their 10 year terms.  In May 2013, the shareholders of Quaint Oak Bancorp approved the adoption of the 2013 Stock Incentive Plan (the “2013 Stock Incentive Plan”).  The 2013 Stock Incentive Plan approved by shareholders in May 2013 covered a total of 195,000 shares, of which 48,750, or 25%, may be restricted stock awards, for a balance of 146,250 stock options assuming all the restricted shares are awarded.  In May 2018, the shareholders of Quaint Oak Bancorp approved the adoption of the 2018 Stock Incentive Plan (the “2018 Stock Incentive Plan”).  The 2018 Stock Incentive Plan approved by shareholders in May 2018 covered a total of 155,000 shares, of which 38,750, or 25%, may be restricted stock awards, for a balance of 116,250 stock options assuming all the restricted shares are awarded.

All incentive stock options issued under the Option Plan and the 2013 and 2018 Stock Incentive Plans are intended to comply with the requirements of Section 422 of the Internal Revenue Code.  Options will become vested and exercisable over a five year period and are generally exercisable for a period of ten years after the grant date.

 

As of March 31, 2021, a total of 238,636 grants of stock options were outstanding under the Option Plan and 2013 and 2018 Stock Incentive Plans and 37,250 stock options were available for future grant under the 2018 Stock Incentive Plan, 3,200 stock options under the 2013 Stock Incentive Plan and none under the Option Plan. Options will become vested and exercisable over a five year period and are generally exercisable for a period of ten years after the grant date.

25

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 10 – Stock Compensation Plans (Continued)

Stock Option and Stock Incentive Plans (Continued)

A summary of option activity under the Company’s Option Plan and 2013 and 2018 Stock Incentive Plans as of March 31, 2021 and 2020 and changes during the three months ended March 31, 2021 and 2020 is as follows:

	2021							2020
	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 period		240,636		$	10.98		5.2		256,336		$	10.87		6.0
Granted		-			-		-		-			-		-
Exercised		(2,000	)		8.10		-		(6,500	)		8.10		-
Forfeited		-					-		-			-		-
Outstanding at end of period		238,636		$	11.00		5.0		249,836		$	10.94		5.9
Exercisable at end of  period		159,054		$	9.86		5.5		140,527		$	9.11		4.4

The estimated fair value of the options granted in May 2018 was $1.75 per share. The fair value was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

Expected dividend yield  2.11%

Risk-free interest rate    2.96%

Expected life of options                          6.5 years

Expected stock-price volatility                                                                                                    12.42%

The dividend yield was calculated on the dividend amount and stock price existing at the grant date.  The risk free interest rate used was based on the rates of United States Treasury securities with maturities equal to the expected lives of the options.  Although the contractual term of the options granted is ten years, the expected term of the options is less.  Management estimated the expected term of the stock options to be the average of the vesting period and the contractual term.  The expected stock-price volatility was estimated by considering the Company’s own stock volatility.  The actual future volatility may differ from our historical volatility.

During both the three months ended March 31, 2021 and 2020, approximately $11,000 in compensation expense on stock options was recognized.  A tax benefit of approximately $1,000, was recognized during each of these periods. As of March 31, 2021, approximately $105,000 in additional compensation expense will be recognized over the remaining service period of approximately 2.1 years.

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

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

26

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

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 methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 19 of the Company’s 2020 Form 10-K, as the fair value of loans, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses.  The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit and non-performance risk.  Loans are considered a Level 3 classification.

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

Investment Securities Available For Sale: The fair value of securities available for sale are determined by 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.

27

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

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 March 31, 2021 (in thousands):

	March 31, 2021
	Fair Value Measurements Using:
	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Recurring fair value measurements
Investment securities available for sale:
Government National Mortgage Association mortgage-backed securities	$	4,670	$	-	$	4,670	$	-
Federal National Mortgage Association mortgage-backed securities		177		-		177		-
Corporate notes		1,543		-		1,543		-
Total investment securities available for sale	$	6,390	$	-	$	6,390	$	-
Total recurring fair value measurements	$	6,390	$	-	$	6,390	$	-
Nonrecurring fair value measurements
Impaired loans	$	349	$	-	$	-	$	349
Other Real Estate Owned		316		-		-		316
Total nonrecurring fair value measurements	$	665	$	-	$	-	$	665

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, 2020 (in thousands):

	December 31, 2020
	Fair Value Measurements Using:
	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Recurring fair value measurements:
Investment securities available for sale
Government National Mortgage Association mortgage-backed securities	$	4,913	$	-	$	4,913	$	-
Federal National Mortgage Association mortgage-backed securities		189		-		189		-
Corporate notes		5,623		-		5,623		-
Total investment securities available for sale	$	10,725	$	-	$	10,725	$	-
Total recurring fair value measurements	$	10,725	$	-	$	10,725	$	-
Nonrecurring fair value measurements
Impaired loans	$	321	$	-	$	-	$	321
Other Real Estate Owned		286		-		-		286
Total nonrecurring fair value measurements	$	607	$	-	$	-	$	607

28

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has used Level 3 inputs to determine fair value as of March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	349	Appraisal of collateral (1)	Appraisal adjustments (2)		8% (8	%)
Other real estate owned	$	316	Appraisal of collateral (1)	Appraisal adjustments (2)		0%-12% (12	%)

	December 31, 2020
	Quantitative Information About Level 3 Fair Value Measurement
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	321	Appraisal of collateral (1)	Appraisal adjustments (2)		8% (8	%)
Other real estate owned	$	286	Appraisal of collateral (1)	Appraisal adjustments (2)		0%-12% (12	%)

________________

(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 that are not required to be measured or reported at fair value were as follows at March 31, 2021 and December 31, 2020 (in thousands):

					Fair Value Measurements at
					March 31, 2021
	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Financial Assets
Investment in interest-earning time deposits	$	7,964	$	8,226	$	-	$	-	$	8,226
Loans held for sale		73,742		75,484		-		75,484		-
Loans receivable, net		409,881		414,554		-		-		414,554
Financial Liabilities
Deposits		439,717		442,293		250,482		-		191,811
FHLB long-term borrowings		28,193		28,272		-		-		28,272
FRB long-term borrowings		43,526		43,518		-		-		43,518
Subordinated debt		7,907		8,314		-		-		8,314

29

Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

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

					Fair Value Measurements at
					December 31, 2020
	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Financial Assets
Investment in interest-earning time deposits	$	9,463	$	9,842	$	-	$	-	$	9,842
Loans held for sale		53,191		62,396		-		62,396		-
Loans receivable, net		356,122		363,527		-		-		363,527
Financial Liabilities
Deposits		354,845		358,112		155,417		-		202,695
FHLB long-term borrowings		28,193		28,284		-		-		28,284
FRB long-term borrowings		48,134		48,126		-		-		48,126
Subordinated debt		7,899		8,283		-		-		8,283

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

Note 12 – Operating Segments

The Company's operations currently consist of two reportable operating segments: Banking and Mortgage Banking. The Company offers different products and services through its two segments. The accounting policies of the segments are generally the same as those of the consolidated company.

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

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

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Quaint Oak Bancorp, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 12 – Operating Segments (Continued)

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

	As of or for the Three Months Ended March 31,
	2021							2020
	Quaint Oak Bank(1)		Quaint Oak Mortgage			Consolidated		Quaint Oak Bank(1)		Quaint Oak Mortgage			Consolidated
Net Interest Income	$	3,742	$	(114	)	$	3,628	$	2,290	$	(47	)	$	2,243
Provision for Loan Losses		254		-			254		115		-			115
Net Interest Income after Provision for Loan Losses		3,488		(114	)		3,374		2,175		(47	)		2,128
Non-Interest Income
Mortgage banking and title abstract fees		436		95			531		144		150			294
Real estate sales commissions, net		31		-			31		33		-			33
Insurance commissions		107		-			107		97		-			97
Other fees and services charges		122		-			122		83		-			83
Loan servicing income		223		-			223		-		-			-
Income from bank-owned life insurance		19		-			19		19		-			19
Net gain on loans held for sale		624		591			1,215		-		781			781
Gain on sale of investment securities    available for sale		317		-			317		-		-			-
Gain on the sale of SBA loans		201		-			201		-		-			-
Total Non-Interest Income		2,080		686			2,766		376		931			1,307
Non-Interest Expense
Salaries and employee benefits		2,928		472			3,400		1,667		311			1,978
Directors’ fees and expenses		68		-			68		61		-			61
Occupancy and equipment		298		79			377		135		70			205
Data processing		130		75			205		108		29			137
Professional fees		146		17			163		97		17			114
FDIC deposit insurance assessment		51		-			51		21		-			21
Other real estate owned expenses		9		-			9		14		-			14
Advertising		91		14			105		61		14			75
Amortization of other intangible		12		-			12		12		-			12
Other		309		20			329		196		14			210
Total Non-Interest Expense		4,042		677			4,719		2,372		455			2,827
Pretax Segment (Loss) Profit	$	1,526	$	(105	)	$	1,421	$	179	$	429		$	608
Segment Assets	$	530,047	$	30,943		$	560,990	$	291,392	$	18,054		$	309,446

(1)     Includes Quaint Oak Bancorp, Inc. and the Bank’s subsidiaries, Quaint Oak Real Estate, Quaint Oak Abstract, Quaint Oak Insurance Agency, QOB Properties, and Oakmont Capital Holdings, LLC.

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

Forward-Looking Statements Are Subject to Change

This Quarterly Report contains certain forward-looking statements (as defined in the Securities Exchange Act of 1934 and the regulations thereunder).  Forward-looking statements are not historical facts but instead represent only the beliefs, expectations or opinions of the Company and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, or words of similar meaning, or future or conditional terms such as “will”, “would”, “should”, “could”, “may”, “likely”, “probably”, or “possibly.”  Forward-looking statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks, uncertainties and assumptions, many of which are difficult to predict and generally are beyond the control of  and its management, that could cause actual results to differ materially from those expressed in, or implied or projected by, forward-looking statements.  The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) economic and competitive conditions which could affect the volume of loan originations, deposit flows and real estate values; (2) the levels of non-interest income and expense and the amount of loan losses; (3) competitive pressure among depository institutions increasing significantly; (4) changes in the interest rate environment causing reduced interest margins; (5) general economic conditions, either nationally or in the markets in which the Company is or will be doing business, being less favorable than expected;(6) political and social unrest, including acts of war or terrorism; (7) the impact of the current outbreak of the novel coronavirus (COVID-19) or (8) legislation or changes in regulatory requirements adversely affecting the business in which the Company is or will be engaged.  The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

General

The Company was formed in connection with the Bank’s conversion to a stock savings bank completed on July 3, 2007.  The Company’s results of operations are dependent primarily on the results of the Bank, which is a wholly owned subsidiary of the Company.  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, data processing expense, professional fees, advertising expense, FDIC deposit insurance assessment, and other expenses.  Our results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities.  Future changes in applicable law, regulations or government policies may materially impact our financial condition and results of operations.

At March 31, 2021, the Bank has five wholly-owned subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Real Estate, LLC, Quaint Oak Abstract, LLC, QOB Properties, LLC, and Quaint Oak Insurance Agency, 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, in the Lehigh Valley region of Pennsylvania, and began operation in July 2009.  In February 2019, Quaint Oak Mortgage opened a mortgage banking office in Philadelphia, Pennsylvania.  QOB Properties, LLC began operations in July 2012 and holds Bank properties acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure.  Quaint Oak Insurance Agency, LLC, located in Chalfont, Pennsylvania, began operations in August 2016 and provides a broad range of personal and commercial insurance coverage solutions. In February 2020, Quaint Oak Bank opened a full-service retail banking office in Philadelphia, Pennsylvania. As of January 4, 2021, the Bank holds a majority equity position in Oakmont Capital Holdings, LLC, a multi-state equipment finance company based in West Chester, Pennsylvania with a second significant facility located in Albany, Minnesota. All significant intercompany balances and transactions have been eliminated.

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COVID-19

On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. The effects of COVID-19 did not have a material impact on the financial results of the Company as of December 31, 2020.  Due to orders issued by the governor of Pennsylvania and for the health of our customers and employees, the Bank closed lobbies to all three branch offices but remained fully operational. Other immediate responses to the pandemic included some of the following actions by the Company:

•Moved more than 92% of its employees to remote work-from-home status.

•Waived fees on deposit accounts and cash management services.

In response to the COVID-19 crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act provides an estimated $2.2 trillion of economy-wide financial stimulus to combat the pandemic and stimulate the economy in the form of financial aid to individuals, businesses, nonprofits, states, and municipalities through loans, grants, tax changes, and other types of relief.

The following describes some of our responses to COVID-19 relative to the CARES Act, and other effects of the pandemic on our business.

Paycheck Protection Program. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). As a qualified SBA lender, we were automatically authorized to originate PPP loans and chose to participate. For the year ended December 31, 2020, the Bank funded 854 SBA PPP loans totaling approximately $95.1 million to customers located primarily in our market area. As of March 31, 2021, 186 of these PPP loans totaling $15.2 million were forgiven under the SBA forgiveness program. Through May 7, 2021, 355 of these PPP loans totaling $31.6 million have been forgiven under the SBA forgiveness program.

On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic Aid Act”) became law.  The Economic Aid Act opens a new PPP loan period for first loans and implements a second loan draw for certain PPP borrowers, each through May 31, 2021. Under this second round of PPP the Company has funded 599 PPP loans totaling $73.0 million as of March 31, 2021 and 881 PPP loans totaling $82.9 million through May 7, 2021.

Paycheck Protection Program Liquidity Facility. The CARES Act also allocated a limited amount of funds to the Federal Reserve Board (FRB) with a broad mandate to provide liquidity to eligible businesses, states or municipalities in light of COVID-19. On April 9, 2020, the U.S. Department of the Treasury announced several new or expanded lending programs to provide relief for businesses and governments. One of these programs was the Paycheck Protection Program Liquidity Facility (PPPLF). Under the PPPLF, all depository institutions that originate PPP loans are eligible to borrow on a non-recourse basis from their regional Federal Reserve Bank using SBA PPP loans as collateral. The principal amount of loans will be equal to the PPP loans pledged as collateral. There are no fees associated with these loans and the interest rate is 35 basis points. The maturity date of PPPLF loans will be the same as the maturity date of the PPP loans pledged as collateral. The PPPLF loan maturity date will be accelerated if the underlying PPP loan goes into default and the lender sells the PPP loan to the SBA under the SBA guarantee. The PPPLF loan maturity date also will be accelerated for any loan forgiveness reimbursement received by the lender from the SBA.

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In April 2020, the Bank received approval to borrow from the FRB under the PPPLF program to assist in funding PPP loans.  Through December 31, 2020, the Bank used the FRB program to fund $52.1 million of PPP loans.  Through March 31, 2021, the Bank paid off approximately $8.5 million of PPP loans pledged as collateral under PPPLF program.  Through March 31, 2021 the Bank has not used the PPPLF program to fund any round two PPP loans.

Loan Modifications/Troubled Debt Restructurings. Under the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. A financial institution can then suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a troubled debt restructuring (“TDR”), and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes. Financial institutions wishing to utilize this authority must make a policy election, which applies to any COVID-19 modification made between March 1, 2020 and the earlier of either January 1, 2022 or the 60th day after the end of the COVID-19 national emergency. Quaint Oak Bank has made that election. Similarly, the Financial Accounting Standards Board has confirmed that short-term modifications made on a good-faith basis in response to COVID-19 to loan customers who were current prior to any relief will not be considered TDRs.

Prior to the enactment of the CARES Act, the banking regulatory agencies provided guidance as to how certain short-term modifications would not be considered TDRs, and have subsequently confirmed that such guidance could be applicable for loans that do not qualify for favorable accounting treatment under Section 4013 of the CARES Act.

The Bank addresses loan payment modification requests on a case-by-case basis considering the effects of the COVID-19 pandemic, related economic slow-down and stay-at-home orders on our customer and their current and projected cash flows through the term of the loan. Through March 31, 2021, the Bank modified 231 loans with principal balances totaling $90.6 million representing approximately 21.7% of our March 31, 2021 loan balances. A majority of deferrals are two-month payment deferrals of principal and interest, with payments after deferral increased to collect amounts deferred. In some cases, certain loans were granted additional deferrals.

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Details with respect to total loan payment modifications made through March 31, 2021 are as follows:

	Number of COVID-19 Deferments		Balance (in thousands)		Percent of Total Loans at March 31, 2021
One-to-four family residential owner occupied		5	$	2,070		20.0	%
One-to-four family residential non-owner occupied		50		8,566		20.6
Multi-family residential		12		9,042		37.1
Commercial real estate		97		55,274		41.7
Construction		1		702		11.8
Home equity		4		254		6.2
Commercial business		62		14,685		7.4
Total		231	$	90,593		21.7	%

Of the 231 loans granted loan payment deferrals through March 31, 2021, 10 loans are still on deferral as of April 30, 2021.

Details with respect to loan payment deferrals still on deferral as of March 31, 2021 are as follows:

	As of March 31, 2021
	Number of COVID-19 Deferments		Balance (in thousands)		Percent of Total Loans at March 31, 2021
One-to-four family residential owner occupied		1	$	415		4.0	%
Commercial real estate		5		8,199		6.2
Commercial business		4		6,561		3.3
Total		10	$	15,175		3.6	%

It is too early to determine if current active modified loans will perform in accordance with their modified terms.

Critical Accounting Policies

The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Accordingly, the consolidated financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable, based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. Critical accounting policies comprise those that management 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.

Our critical accounting policies involving significant judgments and assumptions used in the preparation of the consolidated financial statements as of March 31, 2021 have remained unchanged from the disclosures presented in our Annual Report on Form 10-K, except for Intangible Assets which is described in Note 1 of the notes to our financial statements.

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Comparison of Financial Condition at March 31, 2021 and December 31, 2020

General.  The Company’s total assets at March 31, 2021 were $561.0 million, an increase of $76.9 million, or 15.9%, from $484.1 million at December 31, 2020.  This growth in total assets was primarily due to a $50.8 million, or 14.1%, increase in loans receivable, net and a $20.6 million, or 38.6%, increase in loans held for sale.  The largest increases within the loan portfolio occurred in commercial business loans which increased $44.6 million, or 28.9%, one-to-four family owner occupied loans which increased $2.8 million, or 37.5%, and one-to-four family non-owner occupied loans which increased $2.7 million, or 6.8%. The increase in commercial business loans was due primarily to the $73.0 million of SBA PPP loans generated during the period ended March 31, 2021.

Cash and Cash Equivalents. Cash and cash equivalents increased $8.8 million, or 25.8%, from $33.9 million at December 31, 2020 to $42.7 million at March 31, 2021, with the expectation that excess liquidity will be used to fund loans.

Investment in Interest-Earning Time Deposits.  Investment in interest-earning time deposits decreased $1.5 million, or 15.8%, from $9.5 million at December 31, 2020 to $8.0 million at March 31, 2021 as six interest-earning time deposits matured and were not renewed during the three months ended March 31, 2021.

Investment Securities Available for Sale.  Investment securities available for sale decreased $4.3 million, or 40.4%, from $10.7 million at December 31, 2020 to $6.4 million at March 31, 2021, as the Company sold three corporate notes totaling $4.0 million and realized $317,000 of gains on the transactions.

Loans Held for Sale.  Loans held for sale increased $20.6 million, or 38.6%, from $53.2 million at December 31, 2020 to $73.7 million at March 31, 2021 as the Bank’s mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $44.5 million of one-to-four family residential loans during the three months ended March 31, 2021 and sold $75.3 million of loans in the secondary market during this same period. Additionally, the Bank reclassified $17.4 million of equipment loans from loans receivable, net, to loans held for sale, received $9.8 million of loans held for sale from the formation of Oakmont Capital Holdings LLC, and originated $30.1 million in equipment loans held for sale during the three months ended March 31, 2021. During the three months ended March 31, 2021 the Company sold $6.0 million of equipment loans.

Loans Receivable, Net.  Loans receivable, net, increased $50.8 million, or 14.1%, to $409.9 million at March 31, 2021 from $359.1 million December 31, 2020.  This increase was funded primarily from deposits. Increases within the portfolio occurred in commercial business loans which increased $44.6 million, or 28.9%, one-to-four family residential owner occupied loans which increased $2.8 million, or 37.5%, non-owner occupied loans which increased $2.7 million, or 6.8%, construction loan which increased $1.2 million, or 25.0%, commercial real estate loans which increased $741,000, or 0.6%, home equity loans which increased $339,000, or 9.0%, and multi-family residential loans which increased $333,000, or 1.4%.  These increases were partially offset by decreases of $1,000, or 5.9%, in other consumer loans.  The increase in commercial business loans was due primarily to the $73.0 million of the SBA PPP loans generated during the period ended March 31, 2021. 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.

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Other Real Estate Owned.  Other real estate owned (OREO) amounted to $316,000 at March 31, 2021 consisting of one property that is collateral for a non-performing construction loan. During the quarter ended March 31, 2021, the Company made $30,000 of capital improvements to the property.  Non-performing assets amounted to $534,000, or 0.10% of total assets at March 31, 2021 compared to $929,000, or 0.19% of total assets at December 31, 2020.

Deposits.  Total deposits increased $84.9 million, or 23.9%, to $439.7 million at March 31, 2021 from $354.8 million at December 31, 2020. This increase in deposits was primarily attributable to increases of $54.3 million, or 54.5%, in money market accounts, and $40.8 million, or 75.2%, in non-interest bearing checking accounts. The increase in deposits was partially offset by a $10.2 million, or 5.1%, decrease in certificates of deposit. The increase in non-interest bearing checking accounts was primarily due to the checking accounts opened by PPP loan customers.

Borrowings.  Total Federal Home Loan Bank (FHLB) borrowings decreased $10.0 million, or 26.2%, to $28.2 million at March 31, 2021 from $38.2 million at December 31, 2020. There were no short-term FHLB advances at March 31, 2020. During the three months ended March 31, 2021, the Company used excess liquidity to pay off $10.0 million in short-term borrowings. Federal Reserve Bank (FRB) long-term borrowings decreased $4.6 million, or 9.6%, to $43.5 million from $48.1 million at December 31, 2020 as the Company paid off PPP loans pledged as collateral under the FRB’s Paycheck Protection Program Liquidity Facility (PPPLF).  The Company did not utilize the FRB’s PPPLF to fund second round PPP loans. Other borrowings increased to $3.1 million at March 31, 2021 from none at December 31, 2020, representing outstanding balances on two lines of credit that Oakmont Capital Holdings, LLC has with a credit union which are used to fund equipment loans.

Accrued Expenses and Other Liabilities.  Accrued expenses and other liabilities increased $956,000, or 27.9%, to $4.4 million at March 31, 2021 from $3.4 million at December 31, 2020, due primarily to an increase in tax and other expense accruals.

Stockholders’ Equity.  Total stockholders’ equity increased $3.1 million, or 10.9%, to $31.9 million at March 31, 2021 from $28.7 million at December 31, 2020.  Contributing to the increase was an initial contribution from noncontrolling interest of $2.2 million, net income for the three months ended March 31, 2021 of $1.0 million, common stock earned by participants in the employee stock ownership plan of $59,000, amortization of stock awards and options under our stock compensation plans of $43,000, the reissuance of treasury stock under the Bank’s 401(k) Plan of $20,000, and the reissuance of treasury stock for exercised stock options of $16,000. These increases were partially offset by dividends paid of $179,000, other comprehensive loss, net of $58,000, net loss attributable to noncontrolling interest of $33,000, and the purchase of treasury stock of $5,000.

Comparison of Operating Results for the Three Months Ended March 31, 2021 and 2020

General.  Net income amounted to $1.0 million for the three months ended March 31, 2021, an increase of $598,000, or 138.4%, compared to net income of $432,000 for the three months ended March 31, 2020.  The increase in net income on a comparative quarterly basis was primarily the result of an increase in net interest income of $1.4 million and an increase in non-interest income of $1.5 million, partially offset by an increase in non-interest expense of $1.9 million, an increase in the provision for income taxes of $248,000, and an increase in the provision for loan losses of $139,000.

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Net Interest Income.  Net interest income increased $1.4 million, or 61.8%, to $3.6 million for the three months ended March 31, 2021 from $2.2 million for the three months ended March 31, 2020.  The increase was driven by a $1.2 million, or 33.2%, increase in interest income and a $167,000, or 11.7%, decrease in interest expense.

Interest Income.  The $1.4 million or 61.8% increase in net interest income for the three months ended March 31, 2021 over the comparable period in 2020 was driven by a $1.2 million, or 33.2%, increase in interest income.  The increase in interest income was primarily due to a $197.3 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $255.8 million for the three months ended March 31, 2020 to an average balance of $460.0 million for the three months ended March 31, 2021, and had the effect of increasing interest income $2.7 million. This increase in interest income was partially offset by a 122 basis point decrease in the yield on average loans receivable, net, including loans held for sale, which decreased from 5.43% for the three months ended March 31, 2020 to 4.12% for the three months ended March 31, 2021, and had the effect of decreasing interest income $1.4 million. The decline in loan yield is primarily the result of lower yielding PPP loans funded since the second quarter of 2020 through the first quarter of 2021 and the impact of the Federal Reserve’s 150 basis point rate cuts in March 2020.

Interest Expense.  The $167,000, or 11.7%, decrease in interest expense was primarily attributable to a 96 basis point decrease in rate on average certificate of deposit accounts, which decreased from 2.26% for the three months ended March 31, 2020 to 1.30% for the three months ended March 31, 2021, and had the effect of decreasing interest expense by $473,000.  Interest expense on deposits continues to be actively managed to lower our cost of funds. Partially offsetting this decrease was a $7.4 million increase in average certificate of deposit accounts which increased from an average balance of $188.6 million for the three months ended March 31, 2020 to an average balance of $196.0 million for the three months ended March 31, 2021, and had the effect of increasing interest expense $42,000.  The decrease in interest expense was also partially offset by an increase in average money market accounts which increased from an average balance of $26.3 million for the three months ended March 31, 2020 to an average balance of $129.1 million for the three months ended March 31, 2021, and had the effect of increasing interest expense by $206,000. The decrease in interest expense was also partially offset by an increase in average other borrowings of $7.0 million which had the effect of increasing interest expense by $70,000. The average interest rate spread decreased from 2.79% for the three months ended March 31, 2020 to 2.55% for the three months ended March 31, 2021 while the net interest margin decreased from 3.07% for the three months ended March 31, 2020 to 2.78% for the three months ended March 31, 2021.

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.

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	Three Months Ended March 31,
	2021							2020
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Due from banks, interest-bearing	$	42,675	$	11		0.10	%	$	17,522	$	60		1.37	%
Investment in interest-earning time deposits		8,588		59		2.75			10,057		63		2.51
Investment securities available for sale		9,152		53		2.32			7,540		47		2.49
Loans receivable, net (1) (2)		460,010		4,743		4.12			255,770		3,472		5.43
Investment in FHLB stock		1,523		23		6.04			1,419		29		8.17
Total interest-earning assets		521,948		4,889		3.75	%		292,308		3,671		5.02	%
Non-interest-earning assets		15,210							12,804
Total assets	$	537,158						$	305,112
Interest-bearing liabilities:
Passbook accounts	$	9	$	*		*	%	$	5	$	*		*	%
Savings accounts		1,511		1		0.26			1,805		1		0.22
Money market accounts		129,111		239		0.74			26,290		53		0.81
Certificate of deposit accounts		195,959		636		1.30			188,553		1,067		2.26
Total deposits		326,590		876		1.07			216,653		1,121		2.07
FHLB short-term borrowings		3,000		6		0.80			3,956		30		3.03
FHLB long-term borrowings		28,193		139		1.97			27,651		147		2.13
FRB long-term borrowings		46,390		40		0.34			-		-		-
Subordinated debt		7,902		130		6.58			7,868		130		6.60
Other borrowings		6,973		70		4.02			-		-		-
Total interest-bearing liabilities		419,048		1,261		1.20	%		256,128		1,428		2.23	%
Non-interest-bearing liabilities		92,958							22,920
Total liabilities		512,006							279,048
Stockholders’ Equity		25,152							26,064
Total liabilities and Stockholders’ Equity	$	537,158						$	305,112
Net interest-earning assets	$	102,900						$	36,180
Net interest income; average interest rate spread			$	3,628		2.55	%			$	2,243		2.79	%
Net interest margin (3)						2.78	%						3.07	%
Average interest-earning assets to average interest-bearing liabilities						124.56	%						114.13	%

________________________

* Not meaningful.

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

Provision for Loan Losses.  The Company’s provision for loan losses increased $139,000, or 120.9%, to $254,000 for the three months ended March 31, 2021 from $115,000 for the three months ended March 30, 2020. The increase in the provision for loan losses for the three months ended March 31, 2021 over the three months ended March 31, 2020 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, which includes the impact of the COVID-19 pandemic, prior loan loss experience and amount of non-performing loans at March 31, 2021.

Non-performing loans amounted to $218,000 or 0.05% of net loans receivable at March 31, 2021, consisting of three loans, all of which are on non-accrual status. Comparably, non-performing loans amounted to $643,000 or 0.18% of net loans receivable at December 31, 2020, consisting of five loans, two loans of which were on non-accrual status and three loans were 90 days or more past due and accruing interest.  The non-performing loans at March 31, 2021 include one one-to-four family owner occupied residential loan, one 1-4 family non-owner occupied residential loan, and one equipment loan and all are generally well-collateralized or adequately reserved for.  The allowance for loan losses as a percent of total loans receivable, net was 0.78% at March 31, 2021 and 0.85% at December 31, 2020. Excluding PPP loans, which are 100% guaranteed by the SBA, the allowance for loan losses to total loans was 1.22% at March 31, 2021.

39

Non-Interest Income.  Non-interest income increased $1.5 million, or 111.6%, from $1.3 million for the three months ended March 31, 2020 to $2.8 million for the three months ended March 31, 2021. The increase was primarily attributable to a $434,000, or 55.6%, increase in net gain on loans held for sale, a $317,000 gain on sale of investment securities available for sale, a $237,000, or 80.6%, increase in mortgage banking, equipment lending, and title abstract fees, a $223,000 increase in loan servicing income, a $201,000 increase in gain on sales from SBA loans, a $39,000, or 47.0%, increase in other fees and service charges, and a $10,000, or 10.3%, increase in insurance commissions. The increase in other fees and service charges was primarily due to the increase in loan prepayment fees. These increases were partially offset by a $2,000, or 6.1%, decrease in real estate sales commissions, net.

Non-Interest Expense.  Total non-interest expense increased $1.9 million, or 67.0%, from $2.8 million for the three months ended March 31, 2020 to $4.7 million for the three months ended March 31, 2021, primarily due to a $1.4 million, or 71.9%, increase in salaries and employee benefits expense, a $172,000, or 83.9%, increase in occupancy and equipment expense, a $119,000, or 56.7%, increase in other expense, a $68,000, or 49.6%, increase in data processing expense, a $49,000, or 43.0%, increase in professional fees, a $30,000, or 142.9%, increase in FDIC deposit insurance assessment, a $30,000, or 40.0%, increase in advertising expense, and a $7,000, or 11.5%, increase in directors’ fees and expenses. The increase in salaries and employee benefits is primarily due to generally expanding and improving the level of staff at the Bank and its subsidiary companies, including Oakmont Capital Holdings, LLC. The increase in non-interest expense was partially offset by a $5,000, or 35.7%, decrease in other real estate owned expense.

Provision for Income Tax.  The provision for income tax increased $248,000, or 140.9%, from $176,000 for the three months ended March 31, 2020 to $424,000 for the three months ended March 31, 2021 due primarily to the increase in pre-tax income.

Operating Segments

The Company's operations consist of two reportable operating segments: Banking and Mortgage Banking. Our Banking Segment generates revenues primarily from its lending, deposit gathering and fee business activities. Our Mortgage Banking Segment originates residential mortgage loans which are sold into the secondary market along with the loans’ servicing rights.  Detailed segment information appears in Note 12 in the Notes to Consolidated Financial Statements.

Our Banking Segment reported a pre-tax segment profit (“PTSP”) for the three months ended March 31, 2021 of $1.5 million, a $1.3 million, or 752.5%, increase from the same period in 2020.  This increase in PTSP was primarily due to a $1.5 million, or 63.4%, increase in net interest income and a $1.7 million, or 153.2%, increase in non-interest income. This increase was partially offset by a $1.7 million, or 70.4%, increase in non-interest expense and a $139,000, or 120.9% increase in the provision for loan losses.  The increase in non-interest income was primarily due to a $624,000 gain on the sale of equipment loans, a $317,000 gain on the sale of investment securities available for sale, and $223,000 in loan servicing income.  The increase in non-interest expense was primarily due to a $1.3 million, or 75.6%, increase in salaries and employee benefits expense, a $163,000, or 120.7% increase in occupancy and equipment expense, and a $113,000, or 57.7% increase in other expenses.

Our Mortgage Banking Segment reported a pre-tax segment loss ("PTSL") for the three months ended March 31, 2021 of $105,000, a $534,000, or 124.5%, decrease from the same period in 2020.  The decrease in PTSP was primarily due to a $245,000, or 26.3% decrease in non-interest income, a $222,000, or 48.8%, increase in non-interest expense, and a $67,000, or 142.6% decrease in net-interest income. The decrease in non-interest income was primarily due to a $190,000, or 24.3% decrease net gain on loans held for sale.  The increase in non-interest expense was primarily due to a $161,000, 51.8%, increase in salaries and employee benefits.

40

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 March 31, 2021, the Company's cash and cash equivalents amounted to $42.7 million.  At such date, the Company also had $4.1 million invested in interest-earning time deposits maturing in one year or less.

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 March 31, 2021, Quaint Oak Bank had outstanding commitments to originate loans of $35.4 million, commitments under unused lines of credit of $22.4 million, and $5.1 million under standby letters of credit.

At March 31, 2021, certificates of deposit scheduled to mature in one year or less totaled $83.7 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 March 31, 2021, we had $28.2 million of borrowings from the FHLB and had $174.4 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 March 31, 2021 Quaint Oak Bank had $605,000 in borrowing capacity with the Federal Reserve Bank of Philadelphia.  There were no borrowings under this facility at March 31, 2021.  The Bank also has borrowing capacity with the FRB under the PPPLF program in the amount of outstanding pledged PPP loans. Oakmont Capital Holdings, LLC has two lines of credit with a credit union which are used to fund equipment loans totaling $11.0 million.  As of March 31, 2021, there were $3.1 million of outstanding balances on these two lines of credit.

Total stockholders’ equity increased $3.1 million, or 10.9%, to $31.9 million at March 31, 2021 from $28.7 million at December 31, 2020.  Contributing to the increase was an initial contribution from noncontrolling interest of $2.2 million, net income for the three months ended March 31, 2021 of $1.0 million, common stock earned by participants in the employee stock ownership plan of $59,000, amortization of stock awards and options under our stock compensation plans of $43,000, the reissuance of treasury stock under the Bank’s 401(k) Plan of $20,000, and the reissuance of treasury stock for exercised stock options of $16,000. These increases were partially offset by dividends paid of $179,000, other comprehensive loss, net of $58,000, net loss attributable to noncontrolling interest of $33,000, and the purchase of treasury stock of $5,000. For further discussion of the stock compensation plans, see Note 10 in the Notes to Unaudited Consolidated Financial Statements contained elsewhere herein.

Quaint Oak Bank is required to maintain regulatory capital sufficient to meet tier 1 leverage, common equity tier 1 capital, tier 1 risk-based and total risk-based capital ratios of at least 4.00%, 4.50%, 6.00%, and 8.00%, respectively.  At March 31, 2021, Quaint Oak Bank exceeded each of its capital requirements with ratios of 7.32%, 11.85%, 11.85% and 12.97%, respectively. As a small savings and loan holding company eligible for exemption, the Company is not currently subject to any regulatory capital requirements.

41

Off-Balance Sheet Arrangements

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

Commitments.  At March 31, 2021, we had unfunded commitments under lines of credit of $22.4 million, $35.4 million of commitments to originate loans, and $5.1 million under standby letters of credit.  We had no commitments to advance additional amounts pursuant to outstanding lines of credit or undisbursed construction loans.

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 March 31, 2021.  Based on their evaluation of the Company’s disclosure controls and procedures, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and regulations are operating in an effective manner.

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15(d)-15(f) under the Securities Exchange Act of 1934) occurred during the second fiscal quarter of fiscal 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

42

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

The COVID-19 pandemic has adversely impacted our ability to conduct business and is expected to adversely impact our financial results and those of our customers. The ultimate impact will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities in response to the pandemic.

The COVID-19 pandemic has significantly adversely affected our operations and the way we provide banking services to businesses and individuals, most of whom are currently under government issued stay-at-home orders.  As an essential business, we continue to provide banking and financial services to our customers in an environment compliant with federal and state COVID-19 guidelines.  In addition, we continue to provide access to banking and financial services through online banking, ATMs and by telephone. If the COVID-19 pandemic worsens it could limit or disrupt our ability to provide banking and financial services to our customers.

In response to the stay-at-home orders, the majority of our employees currently are working remotely to enable us to continue to provide banking services to our customers.  Heightened cybersecurity, information security and operational risks may result from these remote work-from-home arrangements. We also could be adversely affected if key personnel or a significant number of employees were to become unavailable due to the effects and restrictions of the COVID-19 pandemic.  We also rely upon our third-party vendors to conduct business and to process, record and monitor transactions. If any of these vendors are unable to continue to provide us with these services, it could negatively impact our ability to serve our customers. Although we have business continuity plans and other safeguards in place, there is no assurance that such plans and safeguards will be effective.

There is pervasive uncertainty surrounding the future economic conditions that will emerge in the months and years following the start of the pandemic. As a result, management is confronted with a significant and unfamiliar degree of uncertainty in estimating the impact of the pandemic on credit quality, revenues and asset values. To date, the COVID-19 pandemic has resulted in declines in loan demand and loan originations, other than through government sponsored programs such as the Paycheck Protection Program, deposit availability, market interest rates and negatively impacted many of our business and consumer borrower’s ability to make their loan payments. Because the length of the pandemic and the efficacy of the extraordinary measures being put in place to address its economic consequences are unknown, including recent reductions in the targeted federal funds rate, until the pandemic subsides, we expect our net interest income and net interest margin will be adversely affected. Many of our borrowers have become unemployed or may face unemployment, and certain businesses are at risk of insolvency as their revenues decline precipitously, especially in businesses related to travel, hospitality, leisure and physical personal services. Businesses may ultimately not reopen as there is a significant level of uncertainty regarding the level of economic activity that will return to our markets over time, the impact of governmental assistance, the speed of economic recovery, the resurgence of COVID-19 in subsequent seasons and changes to demographic and social norms that will take place.

43

The impact of the pandemic is expected to continue to adversely affect us during 2020 and possibly longer as the ability of many of our customers to make loan payments has been significantly affected. Although the Company makes estimates of loan losses related to the pandemic as part of its evaluation of the allowance for loan losses, such estimates involve significant judgment and are made in the context of significant uncertainty as to the impact the pandemic will have on the credit quality of our loan portfolio. It is likely that increased loan delinquencies, adversely classified loans and loan charge-offs will increase in the future as a result of the pandemic.  Consistent with guidance provided by banking regulators, we have modified loans by providing various loan payment deferral options to our borrowers affected by the COVID-19 pandemic. Notwithstanding these modifications, these borrowers may not be able to resume making full payments on their loans once the COVID-19 pandemic is resolved. Any increases in the allowance for credit losses will result in a decrease in net income and, most likely, capital, and may have a material negative effect on our financial condition and results of operations.

Even after the COVID-19 pandemic subsides, the U.S. economy will likely require some time to recover from its effects, the length of which is unknown, and during which we may experience a recession. As a result, we anticipate our business may be materially and adversely affected during this recovery.

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 March 31, 2021 including stock-for-stock option exercises of outstanding stock options, are set forth in the table below:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
January 1, 2021 – January 31, 2021		-	$	-		-		24,375
February 1, 2021 – February 28, 2021		-		-		-		24,375
March 1, 2021 – March 31, 2021		276		16.36		-		24,375
Total		276	$	16.36		-		24,375

Notes to this table:

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

44

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

No.	Description
31.1	Rule 13a-14(d) and 15d-14(d) Certification of the Chief Executive Officer.
31.2	Rule 13a-14(d) and 15d-14(d) Certification of the Chief Financial Officer.
32.0	Section 1350 Certification.
101.INS	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.

45

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:  May 17, 2021	By:	/s/Robert T. Strong
		Robert T. Strong
		President and Chief Executive Officer
		/s/John J. Augustine
Date: May 17, 2021	By:	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:  May 17, 2021	/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:  May 17, 2021	/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 March 31, 2021 (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:  May 17, 2021	By:	/s/Robert T. Strong
		Robert T. Strong President and Chief Executive Officer
Date:  May 17, 2021	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.

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 11, 2021
Document Information [Line Items]
Entity Registrant Name	QUAINT OAK BANCORP INC
Entity Central Index Key	0001391933
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		1,991,697
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Due from banks, non-interest-bearing	$ 1,214	$ 205
Due from banks, interest-bearing	41,449	33,708
Cash and cash equivalents	42,663	33,913
Investment in interest-earning time deposits	7,964	9,463
Investment securities available for sale	6,390	10,725
Loans held for sale	73,742	53,191
Loans receivable, net of allowance for loan losses (2021 $3,315; 2020 $3,061)	409,881	359,122
Accrued interest receivable	3,577	3,054
Investment in Federal Home Loan Bank stock, at cost	1,265	1,665
Bank-owned life insurance	4,073	4,054
Premises and equipment, net	2,414	2,341
Goodwill	3,107	515
Other intangible, net of accumulated amortization	259	271
Other real estate owned, net	316	286
Prepaid expenses and other assets	5,339	5,475
Total Assets	560,990	484,075
Liabilities
Non-interest bearing	94,985	54,202
Interest-bearing	344,732	300,643
Total deposits	439,717	354,845
Federal Home Loan Bank short-term borrowings		10,000
Federal Home Loan Bank long-term borrowings	28,193	28,193
Federal Reserve Bank long-term borrowings	43,526	48,134
Subordinated debt	7,907	7,899
Other borrowings	3,057
Accrued interest payable	569	362
Advances from borrowers for taxes and insurance	1,780	2,486
Accrued expenses and other liabilities	4,384	3,428
Total Liabilities	529,133	455,347
Stockholders’ Equity
Preferred stock – $0.01 par value, 1,000,000 shares authorized; none issued or outstanding	0	0
Common stock – $0.01 par value; 9,000,000 shares authorized; 2,777,250 issued; 1,989,483 and 1,986,528 outstanding at March 31, 2021 and December 31, 2020, respectively	28	28
Additional paid-in capital	15,382	15,282
Treasury stock, at cost: 787,767 and 790,722 shares at March 31, 2021 and December 31, 2020, respectively	(5,099)	(5,114)
Unallocated common stock held by Employee Stock Ownership Plan (ESOP)	(33)	(51)
Accumulated other comprehensive income	60	118
Retained earnings	19,316	18,465
Total Quaint Oak Bancorp, Inc. Stockholders' Equity	29,654	28,728
Noncontrolling Interest	2,203
Total Stockholders' Equity	31,857	28,728
Total Liabilities and Stockholders’ Equity	$ 560,990	$ 484,075

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Loans receivable, allowance for loan losses	$ 3,315	$ 3,061
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)	1,989,483	1,986,528
Treasury stock, at cost, shares (in shares)	787,767	790,722

XML

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Interest Income
Interest on loans, including fees	$ 4,743,000	$ 3,472,000
Interest and dividends on time deposits, investment securities, interest-bearing deposits with others, and Federal Home Loan Bank stock	146,000	199,000
Total Interest Income	4,889,000	3,671,000
Interest Expense
Interest on deposits	876,000	1,121,000
Interest on Federal Home Loan Bank short-term borrowings	6,000	30,000
Interest on Federal Home Loan Bank long-term borrowings	139,000	147,000
Interest on Federal Reserve Bank long-term borrowings	40,000
Interest on subordinated debt	130,000	130,000
Interest on other borrowings	70,000
Total Interest Expense	1,261,000	1,428,000
Net Interest Income	3,628,000	2,243,000
Provision for Loan Losses	254,000	115,000
Net Interest Income after Provision for Loan Losses	3,374,000	2,128,000
Non-Interest Income
Insurance commissions	107,000	97,000
Income from bank-owned life insurance	19,000	19,000
Net gain on loans held for sale	1,215,000	781,000
Gain on the sale of SBA loans	201,000
Sale of securities available for sale	317,000
Total Non-Interest Income	2,766,000	1,307,000
Non-Interest Expense
Salaries and employee benefits	3,400,000	1,978,000
Directors’ fees and expenses	68,000	61,000
Occupancy and equipment	377,000	205,000
Data processing	205,000	137,000
Professional fees	163,000	114,000
FDIC deposit insurance assessment	51,000	21,000
Other real estate owned expenses	9,000	14,000
Advertising	105,000	75,000
Amortization of other intangible	12,000	12,000
Other	329,000	210,000
Total Non-Interest Expense	4,719,000	2,827,000
Income before Income Taxes	1,421,000	608,000
Tax effect	424,000	176,000
Net Income	997,000	432,000
Net Loss Attributable to Noncontrolling Interest	(33,000)
Net Income Attributable to Quaint Oak Bancorp, Inc.	$ 1,030,000	$ 432,000
Earnings per share – basic (in dollars per share)	$ 0.52	$ 0.22
Average shares outstanding - basic (in shares)	1,980,007	1,964,132
Earnings per share - diluted (in dollars per share)	$ 0.50	$ 0.21
Average shares outstanding - diluted (in shares)	2,066,411	2,031,494
Mortgage Banking and Abstract Fees [Member]
Non-Interest Income
Non-interest revenue	$ 531,000	$ 294,000
Real Estate Sales Commissions [Member]
Non-Interest Income
Non-interest revenue	31,000	33,000
Other Fees and Services Fees [Member]
Non-Interest Income
Non-interest revenue	122,000	83,000
Loan Servicing Fee [Member]
Non-Interest Income
Non-interest revenue	$ 223,000

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Income	$ 997	$ 432
Other Comprehensive Loss:
Unrealized gains (losses) on investment securities available for sale	244	(29)
Income tax effect	(52)	5
Reclassification adjustment for gain on sale of investment securities included in net income	(317)
Income tax effect	67
Total other comprehensive loss	(58)	(24)
Total Comprehensive Income	939	408
Comprehensive Loss Attributable to Noncontrolling Interest	(33)
Comprehensive Income Attributable to Quaint Oak Bancorp, Inc.	$ 972	$ 408

XML

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	The 401(k) Plan [Member] Common Stock Outstanding [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] Noncontrolling Interest [Member]	The 401(k) Plan [Member]	The 2008 Stock Option Plan [Member] Common Stock Outstanding [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] Noncontrolling Interest [Member]	The 2008 Stock Option Plan [Member]	Common Stock Outstanding [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]	Noncontrolling Interest [Member]	Total
Balance (in shares) at Dec. 31, 2019																	1,984,857
Balance at Dec. 31, 2019																	$ 28	$ 14,990	$ (4,950)	$ (118)	$ 20	$ 15,937		$ 25,907
Common stock allocated by ESOP																		35		17				52
Treasury stock purchase (in shares)																	(5,372)
Treasury stock purchase																			(67)					(67)
Reissuance of treasury stock (in shares)	851								6,500
Reissuance of treasury stock		$ 7	$ 5					$ 12		$ 13	$ 39					$ 52
Stock based compensation expense																		43						43
Cash dividends declared																						(178)		(178)
Net Income																						432		432
Other comprehensive loss, net																					(24)			(24)
Other comprehensive loss, net																					(24)			(24)
Balance (in shares) at Mar. 31, 2020																	1,986,836
Balance at Mar. 31, 2020																	$ 28	15,088	(4,973)	(101)	(4)	16,191		$ 26,229
Balance (in shares) at Dec. 31, 2020																	1,986,528							1,986,528
Balance at Dec. 31, 2020																	$ 28	15,282	(5,114)	(51)	118	18,465		$ 28,728
Common stock allocated by ESOP																		41		18				59
Treasury stock purchase (in shares)																	(276)
Treasury stock purchase																			(5)					(5)
Reissuance of treasury stock (in shares)	1,231								2,000
Reissuance of treasury stock		$ 12	$ 8					$ 20		$ 4	$ 12					$ 16
Stock based compensation expense																		43						43
Noncontrolling interest initial contribution																							2,236	2,236
Cash dividends declared																						(179)		(179)
Net Income																						1,030	(33)	997
Other comprehensive loss, net																					(58)			(58)
Other comprehensive loss, net																					(58)			$ (58)
Balance (in shares) at Mar. 31, 2021																	1,989,483							1,989,483
Balance at Mar. 31, 2021																	$ 28	$ 15,382	$ (5,099)	$ (33)	$ 60	$ 19,316	$ 2,203	$ 31,857

XML

Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Retained Earnings [Member]
Cash dividends declared, per share (in dollars per share)	$ 0.11	$ 0.09
Common stock allocated by ESOP (in shares)	3,607	3,607

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Income	$ 997,000	$ 432,000
Provision for loan losses	254,000	115,000
Depreciation of premises and equipment	111,000	53,000
Amortization of operating right-of-use assets	38,000	28,000
Amortization of subordinated debt issuance costs	8,000	8,000
Amortization of other intangible	12,000	12,000
Net amortization of securities premiums	5,000	3,000
Accretion of deferred loan fees and costs, net	(793,000)	(116,000)
Stock-based compensation expense	102,000	95,000
Gain on the sale of investment securities available for sale	(317,000)
Net gain on loans held for sale	(1,215,000)	(781,000)
Loans held for sale-originations	(84,893,000)	(34,672,000)
Loans held for sale-proceeds	76,471,000	33,458,000
Gain on the sale of SBA loans	(201,000)
Increase in the cash surrender value of bank-owned life insurance	(19,000)	(19,000)
Changes in assets and liabilities which provided (used) cash:
Accrued interest receivable	(523,000)	(179,000)
Prepaid expenses and other assets	808,000	77,000
Accrued interest payable	133,000	(1,000)
Accrued expenses and other liabilities	285,000	(1,000)
Net Cash Used in Operating Activities	(8,737,000)	(1,488,000)
Cash Flows from Investing Activities
Purchase of interest-earning time deposits		(499,000)
Redemption of interest-earning time deposits	1,499,000	749,000
Principal repayments on investment securities available for sale	250,000	259,000
Proceeds from the sale of investment securities available for sale	4,323,000
Net increase in loans receivable	(51,645,000)	(4,395,000)
Redemption of Federal Home Loan Bank stock	400,000	240,000
Acquisition, net of cash acquired	1,259,000
Capitalized expenditures on other real estate owned	(30,000)	(107,000)
Purchase of premises and equipment	(147,000)	(136,000)
Net Cash Used in Investing Activities	(44,091,000)	(3,889,000)
Cash Flows from Financing Activities
Net increase in demand deposits, money markets, and savings accounts	95,064,000	4,501,000
Net (decrease) increase in certificate accounts	(10,192,000)	8,395,000
Decrease in advances from borrowers for taxes and insurance	(706,000)	(872,000)
Repayment of Federal Home Loan Bank short-term borrowings	(10,000,000)	(10,000,000)
Proceeds from Federal Home Loan Bank long-term borrowings		3,922,000
Repayment of Federal Reserve Bank long-term borrowings	(4,608,000)
Repayment of other borrowings	(7,832,000)
Dividends paid	(179,000)	(178,000)
Purchase of treasury stock	(5,000)	(67,000)
Proceeds from the reissuance of treasury stock	20,000	12,000
Proceeds from the exercise of stock options	16,000	52,000
Net Cash Provided by Financing Activities	61,578,000	5,765,000
Net Increase in Cash and Cash Equivalents	8,750,000	388,000
Cash and Cash Equivalents – Beginning of Year	33,913,000	14,555,000
Cash and Cash Equivalents – End of Year	42,663,000	14,943,000
Supplementary Disclosure of Cash Flow and Non-Cash Information:
Cash payments for interest	1,054,000	1,430,000
Cash payments for income taxes	85,000	60,000
Initial recognition of operating lease right-of use assets	670,000	632,000
Initial recognition of operating lease obligations	670,000	632,000
Oakmont Capital Holdings, LLC [Member]
Non-cash assets acquired:
Loans held for sale	10,914,000
Premises and equipment	37,000
Noncash or Part Noncash Acquisition, Intangible Assets Acquired	2,592,000
Other assets	24,000
Total non-cash assets acquired	13,567,000
Liabilities assumed:
Other borrowings	12,515,000
Accrued interest payable	74,000
Total liabilities assumed	12,589,000
Net non-cash assets acquired	978,000
Cash and cash equivalents acquired	$ 4,259,000

XML

Note 1 - Financial Statement Presentation and Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

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., a Pennsylvania chartered corporation (the "Company" or "Quaint Oak Bancorp") and its wholly owned subsidiary, Quaint Oak Bank, a Pennsylvania chartered stock savings bank, along with its wholly owned subsidiaries. At

March 31, 2021,

the Bank has

five

wholly-owned subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Real Estate, LLC, Quaint Oak Abstract, LLC, QOB Properties, LLC, and Quaint Oak Insurance Agency, LLC, each a Pennsylvania limited liability company. The mortgage company offers mortgage banking in the Lehigh Valley, Delaware Valley and Philadelphia County regions of Pennsylvania. The real estate and abstract companies offer real estate sales and title abstract services, respectively, primarily in the Lehigh Valley region of Pennsylvania. These companies began operation in

July 2009.

In

February, 2019,

Quaint Oak Mortgage opened a mortgage banking office in Philadelphia, Pennsylvania. QOB Properties, LLC began operations in

July 2012

and holds Bank properties acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure. Quaint Oak Insurance Agency, LLC began operations in

August 2016

and provides a broad range of personal and commercial insurance coverage solutions. In

February 2020,

Quaint Oak Bank opened a full-service retail banking office in Philadelphia, Pennsylvania. As of

January 4, 2021,

the Bank holds a majority equity position in Oakmont Capital Holdings, LLC, a multi-state equipment finance company based in West Chester, Pennsylvania with a

second

significant facility located in Albany, Minnesota. All significant intercompany balances and transactions have been eliminated.

The Bank is subject to regulation by the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation. Pursuant to the Bank's election under Section

10

(l) of the Home Owners' Loan Act, the Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. The market area served by the Bank is principally Bucks, Montgomery and Philadelphia Counties and the Lehigh Valley area in Pennsylvania. The Bank has

three

banking locations: the main office location in Southampton, Pennsylvania and regional banking offices in the Lehigh Valley and Philadelphia. The Bank also has a mortgage office in Philadelphia and an insurance agency office in New Britain Township, Pennsylvania. The principal deposit products offered by the Bank are certificates of deposit, money market accounts, non-interest bearing checking accounts for businesses and consumers, and savings accounts. The principal loan products offered by the Bank are fixed and adjustable rate residential and commercial mortgages, construction loans, commercial business loans, home equity loans, and lines of credit.

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) for interim information and with the instructions to Form

10

-Q, as applicable to a smaller reporting company. Accordingly, they do

not

include all the information and footnotes required by US GAAP for complete financial statements.

The foregoing consolidated financial statements are unaudited; but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation thereof. The balances as of

December 31, 2020

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

2020

Annual Report on Form

10

-K. The results of operations for the

three

months ended

March 31, 2021

are

not

necessarily indicative of the results that

may

be expected for the year ending

December 31, 2021.

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 and the valuation of deferred tax assets.

Critical Accounting Policies.

The Company's critical accounting policies involving significant judgments and assumptions used in the preparation of the consolidated financial statements as of

March 31, 2021

have remained unchanged from the disclosures presented in our Annual Report on Form

10

-K, except for the following:

Intangible Assets

.   Intangible assets on the consolidated balance sheets represent the acquisition by Quaint Oak Insurance Agency of the renewal rights to the book of business on

August 1, 2016

at a total cost of

$1.0

million. Based on a valuation,

$515,000

of the purchase price was determined to be goodwill and

$485,000

was determined to be related to the renewal rights to the book of business and deemed an other intangible asset.  The renewal rights are being amortized over a

ten

year period based upon the annual retention rate of the book of business.  Also included in intangible assets is

$2.6

million recognized as part of the acquisition of Oakmont Capital Holdings, LLC.

The Company will complete a goodwill and other intangible asset analysis at least on an annual basis or more often if events and circumstances indicate that there

may

be impairment.

Recent Accounting Pronouncements

Not

Yet Adopted.

 In

June 2016,

the FASB issued ASU

2016

-

13,

Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments

, which changes the impairment model for most financial assets. This Update 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 Update 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.

In

November 2019,

the FASB issued ASU

2019

-

10,

Financial Instruments

–

Credit Losses (Topic

326

), Derivatives and Hedging (Topic

815

), and Leases (Topic

842

).

This Update defers the effective date of ASU

2016

-

13

for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after

December 15, 2022,

including interim periods within those fiscal years. We expect to recognize a

one

-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the

first

reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such

one

-time adjustment or the overall impact of the new guidance on the consolidated financial statements.

In

January 2017,

the FASB issued ASU

2017

-

04,

Simplifying the Test for Goodwill Impairment.

To simplify the subsequent measurement of goodwill, the FASB eliminated Step

2

from the goodwill impairment test.  In computing the implied fair value of goodwill under Step

2,

an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination.  Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount.  An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should

not

exceed the total amount of goodwill allocated to that reporting unit.  A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after

December 15, 2019. 

In

November 2019,

the FASB issued ASU

2019

-

10,

Financial Instruments – Credit Losses (Topic

326

), Derivatives and Hedging (Topic

815

), and Leases (Topic

842

), which deferred the effective date for ASC

350,

Intangibles – Goodwill and Other, for smaller reporting companies to fiscal years beginning after

December 15, 2022,

and interim periods within those fiscal years.  This update is

not

expected to have a significant impact on the Company's financial statements.

In

May 2019,

the FASB issued ASU

2019

-

05,

Financial Instruments – Credit Losses, Topic

326,

which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC

825

-

10.3.

The election must be applied on an instrument-by-instrument basis and is

not

available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU

2016

-

13.

Changes in fair value of that financial asset would subsequently be reported in current earnings.  For entities that have

not

yet adopted ASU

2016

-

13,

the effective dates and transition requirements are the same as those in ASU

2016

-

13.

For entities that have adopted ASU

2016

-

13,

ASU

2019

-

05

is effective for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years. Early adoption is permitted once ASU

2016

-

13

has been adopted. In

November, 2019,

the FASB issued ASU

2019

-

10,

Financial Instruments – Credit Losses (Topic

326

), Derivatives and Hedging (Topic

815

), and Leases (Topic

842

), which deferred the effective date for ASC

944,

Financial Services

–

Insurance,

for public business entities that are SEC filers, except for smaller reporting companies, to fiscal years beginning after

December 15, 2021,

and interim periods within those fiscal years and for all other entities, including smaller reporting companies, to fiscal years beginning after

December 15, 2023,

and interim periods within fiscal years beginning after

December 15, 2024. 

This Update is

not

expected to have a significant impact on the Company's financial statements.

In

December 2019,

the FASB issued ASU

2019

-

12,

Income Taxes (Topic

740

),

to simplify the accounting for income taxes, change the accounting for certain tax transactions, and make minor improvements to the codification. This Update provides a policy election to

not

allocate consolidated income taxes when a member of a consolidated tax return is

not

subject to income tax and provides guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction. The Update also changes current guidance for making an intraperiod allocation, if there is a loss in continuing operations and gains outside of continuing operations; determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting; accounting for tax law changes and year-to-date losses in interim periods; and determining how to apply the income tax guidance to franchise taxes that are partially based on income.

For public business entities, the amendments in this Update are effective for fiscal years and interim periods within those fiscal years, beginning after

December 15, 2020.

For all other entities, the amendments are effective for fiscal years beginning after

December 15, 2021,

and interim periods within fiscal years beginning after

December 15, 2022.

This Update is

not

expected to have a significant impact on the Company's financial statements.

In

March 2020,

the FASB issued ASU

2020

-

03,

Codification Improvements to Financial Instruments. This ASU was issued to improve and clarify various financial instruments topics, including the current expected credit losses (CECL) standard issued in

2016.

The ASU includes

seven

issues that describe the areas of improvement and the related amendments to GAAP; they are intended to make the standards easier to understand and apply and to eliminate inconsistencies, and they are narrow in scope and are

not

expected to significantly change practice for most entities. Among its provisions, the ASU clarifies that all entities, other than public business entities that elected the fair value option, are required to provide certain fair value disclosures under ASC

825,

Financial Instruments,

in both interim and annual financial statements. It also clarifies that the contractual term of a net investment in a lease under Topic

842

should be the contractual term used to measure expected credit losses under Topic

326.

Amendments related to ASU

2019

-

04

are effective for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years. Early adoption is

not

permitted before an entity's adoption of ASU

2016

-

01.

Amendments related to ASU

2016

-

13

for entities that have

not

yet adopted that guidance are effective upon adoption of the amendments in ASU

2016

-

13.

Early adoption is

not

permitted before an entity's adoption of ASU

2016

-

13.

Amendments related to ASU

2016

-

13

for entities that have adopted that guidance are effective for fiscal years beginning after

December 15, 2019,

including interim periods within those years. Other amendments are effective upon issuance of this ASU. This Update is

not

expected to have a significant impact on the Company's financial statements.

In

March 2020,

the FASB issued ASU

2020

-

04,

Reference Rate Reform (Topic

848

):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting,

March 2020,

to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as Secured Overnight Financing Rate. Entities can elect

not

to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would

not

have to re-measure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met, and can make a

one

-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through

December 31, 2022.

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

October 2020,

the FASB issued ASU

2020

-

08,

Codification Improvements to Subtopic

310

-

20,

Receivables

–

Nonrefundable Fees and Other Costs,

which clarifies that, for each reporting period, an entity should reevaluate whether a callable debt security is within the scope of ASC

310

-

20

-

35

-

33.

For public business entities, ASU

2020

-

08

is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2020.

Early application is

not

permitted. For all other entities, ASU

2020

-

08

is effective for fiscal years beginning after

December 15, 2021,

and interim periods within fiscal years beginning after

December 15, 2022.

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

January 2021,

the FASB issued ASU

2021

-

01,

Reference Rate Reform (Topic

848

),

which provides optional temporary guidance for entities transitioning away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates (IBORs) to new references rates so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions within Topic

848.

ASU

2021

-

01

clarifies that the derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic

848.

ASU

2021

-

01

is effective immediately for all entities. Entities

may

elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to

March 12, 2020,

or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The amendments in this update do

not

apply to contract modifications made, as well as new hedging relationships entered into, after

December 31, 2022,

and to existing hedging relationships evaluated for effectiveness for periods after

December 31, 2022,

except for certain hedging relationships existing as of

December 31, 2022,

that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

Reclassifications.

Certain items in the

2020

consolidated financial statements have been reclassified to conform to the presentation in the

2021

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.

XML

Note 2 - Earnings Per Share

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

Note

2

–

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 awards. Common stock equivalents which are considered antidilutive are

not

included for the purposes of this calculation. For the

three

months ended

March 31, 2021

and

2020,

all unvested restricted stock program awards and outstanding stock options under the

2008

Stock Option Plan and the

2013

Stock Incentive Plan representing shares were dilutive. For the

three

months ended

March 31, 2021

and

2020,

all outstanding stock options awarded in

2013

under the

2013

Stock Incentive Plan representing shares were dilutive. For the

three

months ended

March 31, 2021

and

2020,

all outstanding stock options awarded in

2018

under the

2013

and

2018

Stock Incentive Plans representing shares were anti-dilutive.

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

	For the Three Months Ended March 31,
	2021		2020
Net Income Attributable to Quaint Oak Bancorp, Inc.	$	1,030,000	$	432,000
Weighted average shares outstanding – basic		1,980,007		1,964,132
Effect of dilutive common stock equivalents		86,403		67,362
Adjusted weighted average shares outstanding – diluted		2,066,411		2,031,494
Basic earnings per share	$	0.52	$	0.22
Diluted earnings per share	$	0.50	$	0.21

XML

Note 3 - Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

Note

3

–

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 ended

March 31, 2021

and

2020

(in thousands):

	Unrealized Gains (Losses) on Investment Securities Available for Sale (1)
	For the Three Months Ended March 31,
	2021			2020
Balance at the beginning of the period	$	118		$	20
Other comprehensive income (loss) before classifications		192			(24	)
Amount reclassified from accumulated other comprehensive income (loss)		(250	)		-
Total other comprehensive loss		(58	)		(24	)
Balance at the end of the period	$	60		$	(4	)

(

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 income (loss) for the

three

months ended

March 31, 2021

and

2020

(in thousands):

Details About Other Comprehensive Income (Loss)	Amount Reclassified from Accumulated Other Comprehensive  Income (Loss) (1)					Affected Line Item in the Consolidated Statements of Income
	For the Three Months Ended March 31,
	2021			2020
Sale of securities available for sale	$	317		$	-	Gain on sales of investment securities available for sale
Tax effect		(67	)		-	Income taxes
Total reclassification for the period	$	250		$	-

(

1

)         Amounts in parentheses indicate debits.

XML

Note 4 - Investment in Interest-earning Time Deposits

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Investments and Other Noncurrent Assets [Text Block]

Note

4

–

Investment in Interest-Earning Time Deposits

The investment in interest-earning time deposits as of

March 31, 2021

and

December 

31,

2020,

by contractual maturity, are shown below (in thousands):

	March 31, 2021		December 31, 2020
Due in one year or less	$	4,060	$	4,006
Due after one year through five years		3,904		5,457
Total	$	7,964	$	9,463

XML

Note 5 - Investment Securities Available for Sale

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

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

Note

5

–

Investment Securities Available for Sale

The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale at

March 31, 2021

and

December 31, 2020

are summarized below (in thousands): 

	March 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale:
Mortgage-backed securities:
Government National Mortgage Association securities	$	4,644	$	27	$	(1	)	$	4,670
Federal National Mortgage Association securities		170		7		-			177
Total mortgage-backed securities		4,814		34		(1	)		4,847
Debt securities:
Corporate notes		1,500		43		-			1,543
Total available-for-sale-securities	$	6,314	$	77	$	(1	)	$	6,390

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale:
Mortgage-backed securities:
Government National Mortgage Association securities	$	4,887	$	27	$	(1	)	$	4,913
Federal National Mortgage Association securities		183		6		-			189
Total mortgage-backed securities		5,070		33		(1	)		5,102
Debt securities:
Corporate notes		5,506		117		-			5,623
Total available-for-sale-securities	$	10,576	$	150	$	(1	)	$	10,725

The amortized cost and fair value of debt securities at

March 31, 2021,

by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers

may

have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):

	Available for Sale
	Amortized Cost		Fair Value
Due after five years through ten years	$	1,500	$	1,543
Due after ten years		4,814		4,847
Total	$	6,314	$	6,390

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

March 31, 2021

and

December 31, 2020 (

in thousands):

	March 31, 2021
			Less than Twelve Months					Twelve Months or Greater				Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Government National Mortgage Association securities		1	$	657	$	(1	)	$	-	$	-	$	657	$	(1	)

	December 31, 2020
			Less than Twelve Months					Twelve Months or Greater				Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Government National Mortgage Association securities		1	$	681	$	(1	)	$	-	$	-	$	681	$	(1	)

At

March 31, 2021,

there was

one

security in an unrealized loss position that at such date had an aggregate depreciation of

0.17%

from the Company's amortized cost basis. Management believes that the estimated fair value of the security 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 security until the anticipated recovery of fair value occurs. Management does

not

believe the individual unrealized loss as of

March 31, 2021

represents an other-than-temporary impairment. There were

no

impairment charges recognized during the

three

months ended

March 31, 2021

or

2020.

XML

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

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Financing Receivables [Text Block]

Note

6

- Loans Receivable, Net and Allowance for Loan Losses

The composition of net loans receivable is as follows:

	March 31, 2021			December 31, 2020
Real estate loans:
One-to-four family residential:
Owner occupied	$	10,351		$	7,528
Non-owner occupied		41,543			38,884
Total one-to-four family residential		51,894			46,412
Multi-family (five or more) residential		24,376			24,043
Commercial real estate		132,561			131,820
Construction		5,969			4,775
Home equity		4,127			3,788
Total real estate loans		218,927			210,838
Commercial business		198,967			154,387
Other consumer		16			17
Total Loans		417,910			365,242
Deferred loan fees and costs		(4,714	)		(3,059	)
Allowance for loan losses		(3,315	)		(3,061	)
Net Loans	$	409,881		$	359,122

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

March 31, 2021

and

December 

31,

2020

(in thousands): 

	March 31, 2021
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	9,765	$	415	$	171	$	-	$	10,351
One-to-four family residential non-owner occupied		41,239		-		304		-		41,543
Multi-family residential		24,376		-		-		-		24,376
Commercial real estate		130,002		2,369		190		-		132,561
Construction		5,969		-		-		-		5,969
Home equity		4,127		-		-		-		4,127
Commercial business		198,929		-		38		-		198,967
Other consumer		16		-		-		-		16
Total	$	414,423	$	2,784	$	703	$	-	$	417,910

	December 31, 2020
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	6,942	$	415	$	171	$	-	$	7,528
One-to-four family residential non-owner occupied		38,567		-		317		-		38,884
Multi-family residential		24,043		-		-		-		24,043
Commercial real estate		129,236		2,292		292		-		131,820
Construction		4,775		-		-		-		4,775
Home equity		3,788		-		-		-		3,788
Commercial business		154,387		-		-		-		154,387
Other consumer		17		-		-		-		17
Total	$	361,755	$	2,707	$	780	$	-	$	365,242

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

March 31, 2021

as well as the average recorded investment and related interest income for the period then ended (in thousands):

	March 31, 2021
	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	$	171	$	178	$	-	$	171	$	3
One-to-four family residential non-owner occupied		9		9		-		9		-
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		3
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		38		38		-		38		-
Other consumer		-		-		-		-		-
								-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		-		-		-		-		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	171	$	178	$	-	$	171	$	3
One-to-four family residential non-owner occupied		9		9		-		9		-
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		3
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		38		38		-		38		-
Other consumer		-		-		-		-		-
Total	$	349	$	356	$	-	$	349	$	6

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, 2020 

as well as the average recorded investment and related interest income for the year then ended (in thousands):

	December 31, 2020
	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	$	171	$	178	$	-	$	171	$	1
One-to-four family residential non-owner occupied		19		19		-		19		3
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		1
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
								-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		-		-		-		-		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	171	$	178	$	-	$	171	$	1
One-to-four family residential non-owner occupied		19		19		-		19		3
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		1
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	321	$	328	$	-	$	321	$	5

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

March 31, 2021,

the Company had

two

loans totaling

$140,000

that were identified as troubled debt restructurings. One of these loans was performing in accordance with its modified terms and

one

was on non-accrual as of

March 31, 2021.

During the period ended

March 31, 2021,

no

new loans were identified as TDRs. At

December 31, 2020,

the Company had

two

loans totaling

$150,000

that were identified as troubled debt restructurings. Both of these loans were performing in accordance with their modified terms. 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

six

months and future collection under the revised terms is probable.

The following tables present the Company's TDR loans as of

March 31, 2021

and

December 31, 2020 (

dollar amounts in thousands):

	March 31, 2021
	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		1		9		9		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		1		131		-		131		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		2	$	140	$	9	$	131	$	-

	December 31, 2020
	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		1		19		19		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		1		131		-		131		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		2	$	150	$	19	$	131	$	-

The contractual aging of the TDRs in the table above as of

March 31, 2021

and

December 31, 2020

is as follows (in thousands):

	March 31, 2021
	Current		Past Due 30-89 Days		90 Days or More Past Due		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		9		9
Multi-family residential		-		-		-		-		-
Commercial real estate		131		-		-		-		131
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	131	$	-	$	-	$	9	$	140

	December 31, 2020
	Current		Past Due 30-89 Days		90 Days or More Past Due		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		19		19
Multi-family residential		-		-		-		-		-
Commercial real estate		131		-		-		-		131
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	131	$	-	$	-	$	19	$	150

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

March 

31,

2021

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.

Following is a summary, by loan portfolio class, of changes in the allowance for loan losses for the

three

months ended

March 31, 2021

and recorded investment in loans receivable as of

March 

31,

2021

 (in thousands):

	March 31, 2021
	1-4 Family Residential Owner Occupied		1-4 Family Residential Non-Owner Occupied		Multi-Family Residential		Commercial Real Estate		Construction			Home Equity		Commercial Business and Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	88	$	362	$	229	$	1,287	$	62		$	20	$	763	$	250	$	3,061
Charge-offs		-		-		-		-		-			-		-		-		-
Recoveries		-		-		-		-		-			-		-		-		-
Provision		19		14		3		92		(5	)		7		124		-		254
Ending balance	$	107	$	376	$	232	$	1,379	$	57		$	27	$	887	$	250	$	3,315
Ending balance evaluated for impairment:
Individually	$	-	$	-	$	-	$	-	$	-		$	-	$	-	$	-	$	-
Collectively	$	107	$	376	$	232	$	1,379	$	57		$	27	$	887	$	250	$	3,315
Loans receivable:
Ending balance:	$	10,351	$	41,543	$	24,376	$	132,561	$	5,969		$	4,127	$	198,983			$	417,910
Ending balance evaluated for impairment:
Individually	$	171	$	9	$	-	$	131	$	-		$	-	$	38			$	349
Collectively	$	10,180	$	41,534	$	24,376	$	132,430	$	5,969		$	4,127	$	198,945			$	417,561

The Bank allocated increased allowance for loan loss provisions to the commercial business loan portfolio class for the

three

months ended

March 31, 2021,

due primarily to changes in qualitative and quantitative factors in this portfolio class. The Bank allocated increased allowance for loan loss provisions to the commercial real estate loan portfolio class for the

three

months ended

March 31, 2021,

due primarily to changes in qualitative factors in this portfolio class. In general, the primary driver of the increase in qualitative factors was the economic trends factor associated with the COVID-

19

pandemic.

Following is a summary, by loan portfolio class, of changes in the allowance for loan losses for the

three

months ended

March 31, 2020

and recorded investment in loans receivable as of

March 31, 2020 (

in thousands):

	March 31, 2020
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non-Owner Occupied			Multi-Family Residential		Commercial Real Estate		Construction			Home Equity		Commercial Business and Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	52		$	351		$	145	$	854	$	250		$	19	$	500	$	60	$	2,231
Charge-offs		-			-			-		-		-			-		-		-		-
Recoveries		-			-			-		-		-			-		-		-		-
Provision		(5	)		(44	)		72		90		(82	)		7		37		40		115
Ending balance	$	47		$	307		$	217	$	944	$	168		$	26	$	537	$	100	$	2,346
Ending balance evaluated for impairment
Individually	$	-		$	-		$	-	$	3	$	-		$	-	$	-	$	-	$	3
Collectively	$	47		$	307		$	217	$	941	$	168		$	26	$	537	$	100	$	2.343

The Bank allocated increased allowance for loan loss provisions to the commercial real estate loan portfolio class for the

three

months ended

March 31, 2020,

due primarily to increased balances in this portfolio class. The Bank allocated increased allowance for loan loss provisions to the multi-family residential loan and commercial business portfolio classes for the

three

months ended

March 31, 2020,

due primarily to changes in volume and qualitative factors in these portfolio classes. The Bank allocated decreased allowance for loan loss provisions to the construction loan and

1

-

4

family non-owner occupied loan portfolio classes for the

three

months ended

March 31, 2020,

due primarily to a decrease in balances and delinquencies in this portfolio class and qualitative factors in these portfolio classes. In general, the primary driver of the increase in qualitative factors was the economic trends factor associated with the COVID-

19

pandemic.

Following is a summary, by loan portfolio class, of changes in the allowance for loan losses for the year ended

December 31, 2020 (

in thousands):

	December 31, 2020
	1-4 Family Residential Owner Occupied		1-4 Family Residential Non-Owner Occupied		Multi-Family Residential		Commercial Real Estate		Construction			Home Equity		Commercial Business and Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	52	$	351	$	145	$	854	$	250		$	19	$	500	$	60	$	2,231
Charge-offs		-		-		-		-		-			-		-		-		-
Recoveries		-		-		-		-		-			-		-		-		-
Provision		36		11		84		433		(188	)		1		263		190		830
Ending balance	$	88	$	362	$	229	$	1,287	$	62		$	20	$	763	$	250	$	3,061
Ending balance evaluated for impairment:
Individually	$	-	$	-	$	-	$	-	$	-		$	-	$	-	$	-	$	-
Collectively	$	88	$	362	$	229	$	1,287	$	62		$	20	$	763	$	250	$	3,061
Loans receivable:
Ending balance	$	7,528	$	38,884	$	24,043	$	131,820	$	4,775		$	3,788	$	154,404			$	365,242
Ending balance evaluated for impairment:
Individually	$	171	$	19	$	-	$	131	$	-		$	-	$	-			$	321
Collectively	$	7,357	$	38,865	$	24,043	$	131,689	$	4,775		$	3,788	$	154,404			$	364,921

The Bank allocated increased allowance for loan loss provisions to the commercial real estate loan portfolio class for the year ended

December 31, 2020,

due primarily to changes in volume and qualitative factors in this portfolio class. The Bank allocated increased allowance for loan loss provisions to the commercial business loan portfolio class for the year ended

December 31, 2020,

due primarily to changes in qualitative and quantitative factors in this portfolio class. The Bank allocated increased allowance for loan loss provisions to the multi-family loan portfolio class for the year ended

December 31, 2020,

due primarily to changes in qualitative factors in this portfolio class. The Bank allocated decreased allowance for loan loss provisions to the construction loan portfolio class for the year ended

December 31, 2020,

due primarily to changes in quantitative and qualitative factors in this portfolio class. In general, the primary driver of the increase in qualitative factors was the economic trends factor associated with the COVID-

19

pandemic. In this regard, the Bank increased the unallocated component of the allowance for the year ended

December 31, 2020

to cover uncertainties that could affect management's estimate of probable losses primarily associated with the COVID-

19

pandemic.

The following table presents non-accrual loans by classes of the loan portfolio as of

March 31, 2021

and

December 31, 2020 (

in thousands):

	March 31, 2021		December 31, 2020
One-to-four family residential owner occupied	$	171	$	171
One-to-four family residential non-owner occupied		9		19
Multi-family residential		-		-
Commercial real estate		-		-
Construction		-		-
Home equity		-		-
Commercial business		38		-
Other consumer		-		-
Total	$	218	$	190

Non-performing loans, which consist of non-accruing loans plus accruing loans

90

days or more past due, amounted to

$218,000

and

$643,000

at

March 31, 2021

and

December 31, 2020,

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

months ended

March 31, 2021

and

2020

there was

no

interest income recognized on non-accrual loans on a cash basis. Interest income foregone on non-accrual loans was approximately

$3,000

for the

three

months ended

March 31, 2021

and

March 31, 2020.

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

March 31, 2021

and

December 31, 2020 (

in thousands):

	March 31, 2021
	30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Loans Receivable 90 Days or More Past Due and Accruing
One-to-four family residential owner occupied	$	403	$	-	$	403	$	9,948	$	10,351	$	-
One-to-four family residential non-owner occupied		161		-		161		41,382		41,543		-
Multi-family residential		1,723		-		1,723		22,653		24,376		-
Commercial real estate		3,557		-		3,557		129,004		132,561		-
Construction		-		-		-		5,969		5,969		-
Home equity		-		-		-		4,127		4,127		-
Commercial business		-		-		-		198,967		198,967		-
Other consumer		-		-		-		16		16		-
Total	$	5,844	$	-	$	5,844	$	412,066	$	417,910	$	-

	December 31, 2020
	30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Loans Receivable 90 Days or More Past Due and Accruing
One-to-four family residential owner occupied	$	822	$	171	$	993	$	6,535	$	7,528	$	-
One-to-four family residential non-owner occupied		189		66		255		38,629		38,884		66
Multi-family residential		1,947		-		1,947		22,096		24,043		-
Commercial real estate		569		387		956		130,864		131,820		387
Construction		1,783		-		1,783		2,992		4,775		-
Home equity		-		-		-		3,788		3,788		-
Commercial business		574		-		574		153,813		154,387		-
Other consumer		-		-		-		17		17		-
Total	$	5,884	$	624	$	6,508	$	358,734	$	365,242	$	453

XML

Note 7 - Goodwill and Other Intangible, Net

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note

7

–

Goodwill and Other Intangible, 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 an independent insurance agency located in New Britain, Pennsylvania, that provides a broad range of personal and commercial insurance coverage solutions. The Company paid

$1.0

million for these rights. Based on a valuation,

$515,000

of the purchase price was determined to be goodwill and

$485,000

was determined to be related to the renewal rights to the book of business and deemed to be an other intangible asset. This other intangible asset is being amortized over a

ten

year period based upon the annual retention rate of the book of business. The balance of other intangible asset at

March 31, 2021

was

$259,000

net of accumulated amortization of

$256,000.

Amortization expense for the

three

months ended

March 31, 2021

and

2020

amounted to approximately

$12,000

.

On

January 4, 2021

Quaint Oak Bank acquired a

51%

controlling interest in Oakmont Capital Holdings, LLC, a multi-state equipment finance company. Based on an independent valuation of the assets and liabilities acquired it was determined that

$2.6

million in goodwill be recognized as part of the transaction.

XML

Note 8 - Deposits

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Deposit Liabilities Disclosures [Text Block]

Note

8

–

Deposits

Deposits consist of the following classifications (in thousands):

	March 31, 2021		December 31, 2020
Non-interest bearing checking accounts	$	94,985	$	54,202
Passbook accounts		10		8
Savings accounts		1,529		1,570
Money market accounts		153,958		99,638
Certificates of deposit		189,235		199,427
Total deposits	$	439,717	$	354,845

XML

Note 9 - Borrowings

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

9

–

Borrowings

Federal Home Loan Bank advances consist of the following at

March 31, 2021

and

December 31, 2020 (

in thousands):

	March 31, 2021					December 31, 2020
	Amount		Weighted Interest Rate			Amount		Weighted Interest Rate
Short-term borrowings	$	-		-	%	$	10,000		0.41	%
Fixed rate borrowings maturing:
2021		5,000		2.20			5,000		2.20
2022		7,171		2.10			7,171		2.10
2023		7,000		2.16			7,000		2.16
2024		6,167		2.05			6,167		2.05
2025		2,855		1.25			2,855		1.25
Total FHLB long-term debt	$	28,193		2.03	%	$	28,193		2.03	%

Federal Reserve Bank long-term borrowings decreased

$4.6

million, or

9.6%,

to

$43.5

million at

March 31, 2021

from

$48.1

million at

December 31, 2020

as the Company paid off PPP loans pledged as collateral under the FRB's Paycheck Protection Program Liquidity Facility (PPPLF). The Company did

not

utilize the FRB's PPPLF to fund

second

round PPP loans. Under the PPPLF the Company pledged certain PPP loans as collateral and borrowed from the Federal Reserve at a rate of

0.35%

that is fixed for

two

years.

Other borrowings of

$3.1

million represents outstanding balances on

two

lines of credit that Oakmont Capital Holdings, LLC has with a credit union which are used to fund equipment loans. Borrowing capacity on the

two

lines of credit total

$11.0

million.

XML

Note 10 - Stock Compensation Plans

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Note

10

–

Stock Compensation Plans

Employee Stock Ownership Plan

The Company maintains an Employee Stock Ownership Plan (ESOP) for the benefit of employees who meet the eligibility requirements of the plan. 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 during

2007.

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 pursuant to the terms of the original note. The loan is secured by the unallocated shares of common stock held by the ESOP. As of

March 31, 2021

there were

two

quarterly payments remaining on the

2007

loan.

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

months ended

March 31, 2021,

the Company recognized

$59,000

of ESOP expense. During the

three

months ended

March 31, 2020,

the Company recognized

$52,000

of ESOP expense.

Stock Incentive Plans

In

May 2013,

the shareholders of Quaint Oak Bancorp approved the adoption of the

2013

Stock Incentive Plan (the

“2013

Stock Incentive Plan”). The

2013

Stock Incentive Plan approved by shareholders in

May 2013

covered a total of

195,000

shares, of which

48,750,

or

25%,

may

be restricted stock awards, for a balance of

146,250

stock options assuming all the restricted shares are awarded. In

May 2018,

the shareholders of Quaint Oak Bancorp approved the adoption of the

2018

Stock Incentive Plan (the

“2018

Stock Incentive Plan”). The

2018

Stock Incentive Plan approved by shareholders in

May 2018

covered a total of

155,000

shares, of which

38,750,

or

25%,

may

be restricted stock awards, for a balance of

116,250

stock options assuming all the restricted shares are awarded.

As of

March 31, 2021

a total of

28,266

share awards were unvested under the

2013

and

2018

Stock Incentive Plans and up to

11,750

share awards were available for future grant under the

2018

Stock Incentive Plan and

1,200

share awards under the

2013

Stock Incentive Plan. The

2013

and

2018

Stock Incentive Plan share awards have vesting periods of

five

years.

A summary of the status of the share awards under the

2013

and

2018

Stock Incentive Plans as of

March 31, 2021

and

2020

and changes during the

three

months ended

March 31, 2021

and

2020

is as follows:

	March 31, 2021				March 31, 2020
	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		28,266	$	13.30		38,887	$	13.30
Granted		-		-		-		-
Vested		-		-		-		-
Forfeited		-		-		-		-
Unvested at the end of the period		28,266	$	13.30		38,887	$	13.30

Compensation expense on the restricted stock awards is recognized ratably over the

five

year vesting period in an amount which is equal to the fair value of the common stock at the date of grant. During both the

three

months ended

March 31, 2021

and

2020,

the Company recognized approximately

$32,000

of compensation expense. A tax benefit of approximately

$7,000

was recognized during both the

three

months ended

March 31, 2021

and

2020.

As of

March 31, 2021,

approximately

$275,000

in additional compensation expense will be recognized over the remaining service period of approximately

2.1

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 authorized 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 Option Plan expired

February 13, 2018,

however, outstanding options granted in

2013

remain valid and existing for the remainder of their

10

year terms. In

May 2013,

the shareholders of Quaint Oak Bancorp approved the adoption of the

2013

Stock Incentive Plan (the

“2013

Stock Incentive Plan”). The

2013

Stock Incentive Plan approved by shareholders in

May 2013

covered a total of

195,000

shares, of which

48,750,

or

25%,

may

be restricted stock awards, for a balance of

146,250

stock options assuming all the restricted shares are awarded. In

May 2018,

the shareholders of Quaint Oak Bancorp approved the adoption of the

2018

Stock Incentive Plan (the

“2018

Stock Incentive Plan”). The

2018

Stock Incentive Plan approved by shareholders in

May 2018

covered a total of

155,000

shares, of which

38,750,

or

25%,

may

be restricted stock awards, for a balance of

116,250

stock options assuming all the restricted shares are awarded.

All incentive stock options issued under the Option Plan and the

2013

and

2018

Stock Incentive Plans are intended to comply with the requirements of Section

422

of the Internal Revenue Code. Options will become vested and exercisable over a

five

year period and are generally exercisable for a period of

ten

years after the grant date.

  

As of

March 31, 2021,

a total of

238,636

grants of stock options were outstanding under the Option Plan and

2013

and

2018

Stock Incentive Plans and

37,250

stock options were available for future grant under the

2018

Stock Incentive Plan,

3,200

stock options under the

2013

Stock Incentive Plan and

none

under the Option Plan. Options will become vested and exercisable over a

five

year period and are generally exercisable for a period of

ten

years after the grant date.

A summary of option activity under the Company's Option Plan and

2013

and

2018

Stock Incentive Plans as of

March 31, 2021

and

2020

and changes during the

three

months ended

March 31, 2021

and

2020

is as follows:

	2021							2020
	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 period		240,636		$	10.98		5.2		256,336		$	10.87		6.0
Granted		-			-		-		-			-		-
Exercised		(2,000	)		8.10		-		(6,500	)		8.10		-
Forfeited		-					-		-			-		-
Outstanding at end of period		238,636		$	11.00		5.0		249,836		$	10.94		5.9
Exercisable at end of period		159,054		$	9.86		5.5		140,527		$	9.11		4.4

The estimated fair value of the options granted in

May 2018

was

$1.75

per share. The fair value was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

Expected dividend yield	2.11	%
Risk-free interest rate	2.96	%
Expected life of options (years)	6.5
Expected stock-price volatility	12.42	%

The dividend yield was calculated on the dividend amount and stock price existing at the grant date. The risk free interest rate used was based on the rates of United States Treasury securities with maturities equal to the expected lives of the options. Although the contractual term of the options granted is

ten

years, the expected term of the options is less. Management estimated the expected term of the stock options to be the average of the vesting period and the contractual term. The expected stock-price volatility was estimated by considering the Company's own stock volatility. The actual future volatility

may

differ from our historical volatility.

During both the

three

months ended

March 31, 2021

and

2020,

approximately

$11,000

in compensation expense on stock options was recognized. A tax benefit of approximately

$1,000

,

was recognized during each of these periods. As of

March 31, 2021,

approximately

$105,000

in additional compensation expense will be recognized over the remaining service period of approximately

2.1

years.

XML

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

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note

11

–

Fair Value Measurements and Fair Values of Financial Instruments

Fair value estimates are based on quoted market prices, if available, quoted market prices of similar assets or liabilities, or the present value of expected future cash flows and other valuation techniques. These valuations are significantly affected by discount rates, cash flow assumptions, and risk assumptions used. Therefore, fair values estimates

may

not

be substantiated by comparison to independent markets and are

not

intended to reflect the proceeds that

may

be realizable in an immediate settlement of the instruments.

Fair value is determined at

one

point in time and is

not

representative of future value. These amounts do

not

reflect the total value of a going concern organization. Management does

not

have the intention to dispose of a significant portion of its assets and liabilities and therefore, the unrealized gains or losses should

not

be interpreted as a forecast of future earnings and cash flows.

The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. The

three

broad levels of pricing are as follows:

Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.

Level III: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

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

The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note

19

of the Company's

2020

Form

10

-K, as the fair value of loans, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit and non-performance risk. Loans are considered a Level

3

classification.

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

Investment Securities Available For Sale:

The fair value of securities available for sale are determined by 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

March 31, 2021 (

in thousands):

	March 31, 2021
	Fair Value Measurements Using:
	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Recurring fair value measurements
Investment securities available for sale:
Government National Mortgage Association mortgage-backed securities	$	4,670	$	-	$	4,670	$	-
Federal National Mortgage Association mortgage- backed securities		177		-		177		-
Corporate notes		1,543		-		1,543		-
Total investment securities available for sale	$	6,390	$	-	$	6,390	$	-
Total recurring fair value measurements	$	6,390	$	-	$	6,390	$	-
Nonrecurring fair value measurements
Impaired loans	$	349	$	-	$	-	$	349
Other Real Estate Owned		316		-		-		316
Total nonrecurring fair value measurements	$	665	$	-	$	-	$	665

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, 2020 (

in thousands):

	December 31, 2020
	Fair Value Measurements Using:
	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Recurring fair value measurements:
Investment securities available for sale
Government National Mortgage Association mortgage-backed securities	$	4,913	$	-	$	4,913	$	-
Federal National Mortgage Association mortgage- backed securities		189		-		189		-
Corporate notes		5,623		-		5,623		-
Total investment securities available for sale	$	10,725	$	-	$	10,725	$	-
Total recurring fair value measurements	$	10,725	$	-	$	10,725	$	-
Nonrecurring fair value measurements
Impaired loans	$	321	$	-	$	-	$	321
Other Real Estate Owned		286		-		-		286
Total nonrecurring fair value measurements	$	607	$	-	$	-	$	607

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

March 31, 2021

and

December 31, 2020 (

in thousands):

	March 31, 2021
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	349	Appraisal of collateral (1)	Appraisal adjustments (2)			8%	(8%)
Other real estate owned	$	316	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	12%	(12%)

	December 31, 2020
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	321	Appraisal of collateral (1)	Appraisal adjustments (2)			8%	(8%)
Other real estate owned	$	286	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	12%	(12%)

( 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 that are

not

required to be measured or reported at fair value were as follows at

March 31, 2021 

and

December 

31,

2020

(in thousands):

					Fair Value Measurements at
					March 31, 2021
	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Financial Assets
Investment in interest-earning time deposits	$	7,964	$	8,226	$	-	$	-	$	8,226
Loans held for sale		73,742		75,484		-		75,484		-
Loans receivable, net		409,881		414,554		-		-		414,554
Financial Liabilities
Deposits		439,717		442,293		250,482		-		191,811
FHLB long-term borrowings		28,193		28,272		-		-		28,272
FRB long-term borrowings		43,526		43,518		-		-		43,518
Subordinated debt		7,907		8,314		-		-		8,314

					Fair Value Measurements at
					December 31, 2020
	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Financial Assets
Investment in interest-earning time deposits	$	9,463	$	9,842	$	-	$	-	$	9,842
Loans held for sale		53,191		62,396		-		62,396		-
Loans receivable, net		356,122		363,527		-		-		363,527
Financial Liabilities
Deposits		354,845		358,112		155,417		-		202,695
FHLB long-term borrowings		28,193		28,284		-		-		28,284
FRB long-term borrowings		48,134		48,126		-		-		48,126
Subordinated debt		7,899		8,283		-		-		8,283

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

1

measurements.

XML

Note 12 - Operating Segments

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

12

–

Operating Segments

The Company's operations currently consist of

two

reportable operating segments: Banking and Mortgage Banking. The Company offers different products and services through its

two

segments. The accounting policies of the segments are generally the same as those of the consolidated company.

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

The Mortgage Banking Segment originates residential mortgage loans which are sold into the secondary market along with the loans' servicing rights. The profitability of this segment's operations depends primarily on the gains realized from the sale of loans and processing fees. The Mortgage Banking Segment

is also subject to an extensive system of laws and regulations that are intended primarily for the protection of consumers.

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

	As of or for the Three Months Ended March 31,
	2021							2020
	Quaint Oak Bank(1)		Quaint Oak Mortgage			Consolidated		Quaint Oak Bank(1)		Quaint Oak Mortgage			Consolidated
Net Interest Income	$	3,742	$	(114	)	$	3,628	$	2,290	$	(47	)	$	2,243
Provision for Loan Losses		254		-			254		115		-			115
Net Interest Income after Provision for Loan Losses		3,488		(114	)		3,374		2,175		(47	)		2,128
Non-Interest Income
Mortgage banking and title abstract fees		436		95			531		144		150			294
Real estate sales commissions, net		31		-			31		33		-			33
Insurance commissions		107		-			107		97		-			97
Other fees and services charges		122		-			122		83		-			83
Loan servicing income		223		-			223		-		-			-
Income from bank-owned life insurance		19		-			19		19		-			19
Net gain on loans held for sale		624		591			1,215		-		781			781
Gain on sale of investment securities available for sale		317		-			317		-		-			-
Gain on the sale of SBA loans		201		-			201		-		-			-
Total Non-Interest Income		2,080		686			2,766		376		931			1,307
Non-Interest Expense
Salaries and employee benefits		2,928		472			3,400		1,667		311			1,978
Directors' fees and expenses		68		-			68		61		-			61
Occupancy and equipment		298		79			377		135		70			205
Data processing		130		75			205		108		29			137
Professional fees		146		17			163		97		17			114
FDIC deposit insurance assessment		51		-			51		21		-			21
Other real estate owned expenses		9		-			9		14		-			14
Advertising		91		14			105		61		14			75
Amortization of other intangible		12		-			12		12		-			12
Other		309		20			329		196		14			210
Total Non-Interest Expense		4,042		677			4,719		2,372		455			2,827
Pretax Segment (Loss) Profit	$	1,526	$	(105	)	$	1,421	$	179	$	429		$	608
Segment Assets	$	530,047	$	30,943		$	560,990	$	291,392	$	18,054		$	309,446

( 1 ) Includes Quaint Oak Bancorp, Inc. and the Bank's subsidiaries, Quaint Oak Real Estate, Quaint Oak Abstract, Quaint Oak Insurance Agency, QOB Properties, and Oakmont Capital Holdings, LLC.quaiquaint 

XML

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

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., a Pennsylvania chartered corporation (the "Company" or "Quaint Oak Bancorp") and its wholly owned subsidiary, Quaint Oak Bank, a Pennsylvania chartered stock savings bank, along with its wholly owned subsidiaries. At

March 31, 2021,

the Bank has

five

wholly-owned subsidiaries, Quaint Oak Mortgage, LLC, Quaint Oak Real Estate, LLC, Quaint Oak Abstract, LLC, QOB Properties, LLC, and Quaint Oak Insurance Agency, LLC, each a Pennsylvania limited liability company. The mortgage company offers mortgage banking in the Lehigh Valley, Delaware Valley and Philadelphia County regions of Pennsylvania. The real estate and abstract companies offer real estate sales and title abstract services, respectively, primarily in the Lehigh Valley region of Pennsylvania. These companies began operation in

July 2009.

In

February, 2019,

Quaint Oak Mortgage opened a mortgage banking office in Philadelphia, Pennsylvania. QOB Properties, LLC began operations in

July 2012

and holds Bank properties acquired through a foreclosure proceeding or acceptance of a deed in lieu of foreclosure. Quaint Oak Insurance Agency, LLC began operations in

August 2016

and provides a broad range of personal and commercial insurance coverage solutions. In

February 2020,

Quaint Oak Bank opened a full-service retail banking office in Philadelphia, Pennsylvania. As of

January 4, 2021,

the Bank holds a majority equity position in Oakmont Capital Holdings, LLC, a multi-state equipment finance company based in West Chester, Pennsylvania with a

second

significant facility located in Albany, Minnesota. All significant intercompany balances and transactions have been eliminated.

The Bank is subject to regulation by the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation. Pursuant to the Bank's election under Section

10

(l) of the Home Owners' Loan Act, the Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. The market area served by the Bank is principally Bucks, Montgomery and Philadelphia Counties and the Lehigh Valley area in Pennsylvania. The Bank has

three

banking locations: the main office location in Southampton, Pennsylvania and regional banking offices in the Lehigh Valley and Philadelphia. The Bank also has a mortgage office in Philadelphia and an insurance agency office in New Britain Township, Pennsylvania. The principal deposit products offered by the Bank are certificates of deposit, money market accounts, non-interest bearing checking accounts for businesses and consumers, and savings accounts. The principal loan products offered by the Bank are fixed and adjustable rate residential and commercial mortgages, construction loans, commercial business loans, home equity loans, and lines of credit.

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) for interim information and with the instructions to Form

10

-Q, as applicable to a smaller reporting company. Accordingly, they do

not

include all the information and footnotes required by US GAAP for complete financial statements.

The foregoing consolidated financial statements are unaudited; but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation thereof. The balances as of

December 31, 2020

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

2020

Annual Report on Form

10

-K. The results of operations for the

three

months ended

March 31, 2021

are

not

necessarily indicative of the results that

may

be expected for the year ending

December 31, 2021.

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 and the valuation of deferred tax assets.

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

Intangible Assets

.   Intangible assets on the consolidated balance sheets represent the acquisition by Quaint Oak Insurance Agency of the renewal rights to the book of business on

August 1, 2016

at a total cost of

$1.0

million. Based on a valuation,

$515,000

of the purchase price was determined to be goodwill and

$485,000

was determined to be related to the renewal rights to the book of business and deemed an other intangible asset.  The renewal rights are being amortized over a

ten

year period based upon the annual retention rate of the book of business.  Also included in intangible assets is

$2.6

million recognized as part of the acquisition of Oakmont Capital Holdings, LLC.

The Company will complete a goodwill and other intangible asset analysis at least on an annual basis or more often if events and circumstances indicate that there

may

be impairment.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Not

Yet Adopted.

 In

June 2016,

the FASB issued ASU

2016

-

13,

Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments

, which changes the impairment model for most financial assets. This Update 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 Update 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.

In

November 2019,

the FASB issued ASU

2019

-

10,

Financial Instruments

–

Credit Losses (Topic

326

), Derivatives and Hedging (Topic

815

), and Leases (Topic

842

).

This Update defers the effective date of ASU

2016

-

13

for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after

December 15, 2022,

including interim periods within those fiscal years. We expect to recognize a

one

-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the

first

reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such

one

-time adjustment or the overall impact of the new guidance on the consolidated financial statements.

In

January 2017,

the FASB issued ASU

2017

-

04,

Simplifying the Test for Goodwill Impairment.

To simplify the subsequent measurement of goodwill, the FASB eliminated Step

2

from the goodwill impairment test.  In computing the implied fair value of goodwill under Step

2,

an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination.  Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount.  An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should

not

exceed the total amount of goodwill allocated to that reporting unit.  A public business entity that is a U.S. Securities and Exchange Commission (“SEC”) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after

December 15, 2019. 

In

November 2019,

the FASB issued ASU

2019

-

10,

Financial Instruments – Credit Losses (Topic

326

), Derivatives and Hedging (Topic

815

), and Leases (Topic

842

), which deferred the effective date for ASC

350,

Intangibles – Goodwill and Other, for smaller reporting companies to fiscal years beginning after

December 15, 2022,

and interim periods within those fiscal years.  This update is

not

expected to have a significant impact on the Company's financial statements.

In

May 2019,

the FASB issued ASU

2019

-

05,

Financial Instruments – Credit Losses, Topic

326,

which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC

825

-

10.3.

The election must be applied on an instrument-by-instrument basis and is

not

available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU

2016

-

13.

Changes in fair value of that financial asset would subsequently be reported in current earnings.  For entities that have

not

yet adopted ASU

2016

-

13,

the effective dates and transition requirements are the same as those in ASU

2016

-

13.

For entities that have adopted ASU

2016

-

13,

ASU

2019

-

05

is effective for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years. Early adoption is permitted once ASU

2016

-

13

has been adopted. In

November, 2019,

the FASB issued ASU

2019

-

10,

Financial Instruments – Credit Losses (Topic

326

), Derivatives and Hedging (Topic

815

), and Leases (Topic

842

), which deferred the effective date for ASC

944,

Financial Services

–

Insurance,

for public business entities that are SEC filers, except for smaller reporting companies, to fiscal years beginning after

December 15, 2021,

and interim periods within those fiscal years and for all other entities, including smaller reporting companies, to fiscal years beginning after

December 15, 2023,

and interim periods within fiscal years beginning after

December 15, 2024. 

This Update is

not

expected to have a significant impact on the Company's financial statements.

In

December 2019,

the FASB issued ASU

2019

-

12,

Income Taxes (Topic

740

),

to simplify the accounting for income taxes, change the accounting for certain tax transactions, and make minor improvements to the codification. This Update provides a policy election to

not

allocate consolidated income taxes when a member of a consolidated tax return is

not

subject to income tax and provides guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction. The Update also changes current guidance for making an intraperiod allocation, if there is a loss in continuing operations and gains outside of continuing operations; determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting; accounting for tax law changes and year-to-date losses in interim periods; and determining how to apply the income tax guidance to franchise taxes that are partially based on income.

For public business entities, the amendments in this Update are effective for fiscal years and interim periods within those fiscal years, beginning after

December 15, 2020.

For all other entities, the amendments are effective for fiscal years beginning after

December 15, 2021,

and interim periods within fiscal years beginning after

December 15, 2022.

This Update is

not

expected to have a significant impact on the Company's financial statements.

In

March 2020,

the FASB issued ASU

2020

-

03,

Codification Improvements to Financial Instruments. This ASU was issued to improve and clarify various financial instruments topics, including the current expected credit losses (CECL) standard issued in

2016.

The ASU includes

seven

issues that describe the areas of improvement and the related amendments to GAAP; they are intended to make the standards easier to understand and apply and to eliminate inconsistencies, and they are narrow in scope and are

not

expected to significantly change practice for most entities. Among its provisions, the ASU clarifies that all entities, other than public business entities that elected the fair value option, are required to provide certain fair value disclosures under ASC

825,

Financial Instruments,

in both interim and annual financial statements. It also clarifies that the contractual term of a net investment in a lease under Topic

842

should be the contractual term used to measure expected credit losses under Topic

326.

Amendments related to ASU

2019

-

04

are effective for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years. Early adoption is

not

permitted before an entity's adoption of ASU

2016

-

01.

Amendments related to ASU

2016

-

13

for entities that have

not

yet adopted that guidance are effective upon adoption of the amendments in ASU

2016

-

13.

Early adoption is

not

permitted before an entity's adoption of ASU

2016

-

13.

Amendments related to ASU

2016

-

13

for entities that have adopted that guidance are effective for fiscal years beginning after

December 15, 2019,

including interim periods within those years. Other amendments are effective upon issuance of this ASU. This Update is

not

expected to have a significant impact on the Company's financial statements.

In

March 2020,

the FASB issued ASU

2020

-

04,

Reference Rate Reform (Topic

848

):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting,

March 2020,

to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as Secured Overnight Financing Rate. Entities can elect

not

to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would

not

have to re-measure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met, and can make a

one

-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through

December 31, 2022.

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

October 2020,

the FASB issued ASU

2020

-

08,

Codification Improvements to Subtopic

310

-

20,

Receivables

–

Nonrefundable Fees and Other Costs,

which clarifies that, for each reporting period, an entity should reevaluate whether a callable debt security is within the scope of ASC

310

-

20

-

35

-

33.

For public business entities, ASU

2020

-

08

is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2020.

Early application is

not

permitted. For all other entities, ASU

2020

-

08

is effective for fiscal years beginning after

December 15, 2021,

and interim periods within fiscal years beginning after

December 15, 2022.

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

January 2021,

the FASB issued ASU

2021

-

01,

Reference Rate Reform (Topic

848

),

which provides optional temporary guidance for entities transitioning away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates (IBORs) to new references rates so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions within Topic

848.

ASU

2021

-

01

clarifies that the derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic

848.

ASU

2021

-

01

is effective immediately for all entities. Entities

may

elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to

March 12, 2020,

or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. The amendments in this update do

not

apply to contract modifications made, as well as new hedging relationships entered into, after

December 31, 2022,

and to existing hedging relationships evaluated for effectiveness for periods after

December 31, 2022,

except for certain hedging relationships existing as of

December 31, 2022,

that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations.

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassifications.

Certain items in the

2020

consolidated financial statements have been reclassified to conform to the presentation in the

2021

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.

XML

Note 2 - Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

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

	For the Three Months Ended March 31,
	2021		2020
Net Income Attributable to Quaint Oak Bancorp, Inc.	$	1,030,000	$	432,000
Weighted average shares outstanding – basic		1,980,007		1,964,132
Effect of dilutive common stock equivalents		86,403		67,362
Adjusted weighted average shares outstanding – diluted		2,066,411		2,031,494
Basic earnings per share	$	0.52	$	0.22
Diluted earnings per share	$	0.50	$	0.21

XML

Note 3 - Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2021

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 March 31,
	2021			2020
Balance at the beginning of the period	$	118		$	20
Other comprehensive income (loss) before classifications		192			(24	)
Amount reclassified from accumulated other comprehensive income (loss)		(250	)		-
Total other comprehensive loss		(58	)		(24	)
Balance at the end of the period	$	60		$	(4	)

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

Details About Other Comprehensive Income (Loss)	Amount Reclassified from Accumulated Other Comprehensive  Income (Loss) (1)					Affected Line Item in the Consolidated Statements of Income
	For the Three Months Ended March 31,
	2021			2020
Sale of securities available for sale	$	317		$	-	Gain on sales of investment securities available for sale
Tax effect		(67	)		-	Income taxes
Total reclassification for the period	$	250		$	-

XML

Note 4 - Investment in Interest-earning Time Deposits (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

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

	March 31, 2021		December 31, 2020
Due in one year or less	$	4,060	$	4,006
Due after one year through five years		3,904		5,457
Total	$	7,964	$	9,463

XML

Note 5 - Investment Securities Available for Sale (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Available-for-sale Securities [Table Text Block]

	March 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale:
Mortgage-backed securities:
Government National Mortgage Association securities	$	4,644	$	27	$	(1	)	$	4,670
Federal National Mortgage Association securities		170		7		-			177
Total mortgage-backed securities		4,814		34		(1	)		4,847
Debt securities:
Corporate notes		1,500		43		-			1,543
Total available-for-sale-securities	$	6,314	$	77	$	(1	)	$	6,390

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale:
Mortgage-backed securities:
Government National Mortgage Association securities	$	4,887	$	27	$	(1	)	$	4,913
Federal National Mortgage Association securities		183		6		-			189
Total mortgage-backed securities		5,070		33		(1	)		5,102
Debt securities:
Corporate notes		5,506		117		-			5,623
Total available-for-sale-securities	$	10,576	$	150	$	(1	)	$	10,725

Investments Classified by Contractual Maturity Date [Table Text Block]

	Available for Sale
	Amortized Cost		Fair Value
Due after five years through ten years	$	1,500	$	1,543
Due after ten years		4,814		4,847
Total	$	6,314	$	6,390

Schedule of Unrealized Loss on Investments [Table Text Block]

	March 31, 2021
			Less than Twelve Months					Twelve Months or Greater				Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Government National Mortgage Association securities		1	$	657	$	(1	)	$	-	$	-	$	657	$	(1	)

	December 31, 2020
			Less than Twelve Months					Twelve Months or Greater				Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Government National Mortgage Association securities		1	$	681	$	(1	)	$	-	$	-	$	681	$	(1	)

XML

Note 6 - Loans Receivable, Net and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

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

	March 31, 2021			December 31, 2020
Real estate loans:
One-to-four family residential:
Owner occupied	$	10,351		$	7,528
Non-owner occupied		41,543			38,884
Total one-to-four family residential		51,894			46,412
Multi-family (five or more) residential		24,376			24,043
Commercial real estate		132,561			131,820
Construction		5,969			4,775
Home equity		4,127			3,788
Total real estate loans		218,927			210,838
Commercial business		198,967			154,387
Other consumer		16			17
Total Loans		417,910			365,242
Deferred loan fees and costs		(4,714	)		(3,059	)
Allowance for loan losses		(3,315	)		(3,061	)
Net Loans	$	409,881		$	359,122

Financing Receivable Credit Quality Indicators [Table Text Block]

	March 31, 2021
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	9,765	$	415	$	171	$	-	$	10,351
One-to-four family residential non-owner occupied		41,239		-		304		-		41,543
Multi-family residential		24,376		-		-		-		24,376
Commercial real estate		130,002		2,369		190		-		132,561
Construction		5,969		-		-		-		5,969
Home equity		4,127		-		-		-		4,127
Commercial business		198,929		-		38		-		198,967
Other consumer		16		-		-		-		16
Total	$	414,423	$	2,784	$	703	$	-	$	417,910

	December 31, 2020
	Pass		Special Mention		Substandard		Doubtful		Total
One-to-four family residential owner occupied	$	6,942	$	415	$	171	$	-	$	7,528
One-to-four family residential non-owner occupied		38,567		-		317		-		38,884
Multi-family residential		24,043		-		-		-		24,043
Commercial real estate		129,236		2,292		292		-		131,820
Construction		4,775		-		-		-		4,775
Home equity		3,788		-		-		-		3,788
Commercial business		154,387		-		-		-		154,387
Other consumer		17		-		-		-		17
Total	$	361,755	$	2,707	$	780	$	-	$	365,242

Impaired Financing Receivables [Table Text Block]

	March 31, 2021
	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	$	171	$	178	$	-	$	171	$	3
One-to-four family residential non-owner occupied		9		9		-		9		-
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		3
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		38		38		-		38		-
Other consumer		-		-		-		-		-
								-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		-		-		-		-		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	171	$	178	$	-	$	171	$	3
One-to-four family residential non-owner occupied		9		9		-		9		-
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		3
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		38		38		-		38		-
Other consumer		-		-		-		-		-
Total	$	349	$	356	$	-	$	349	$	6

	December 31, 2020
	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	$	171	$	178	$	-	$	171	$	1
One-to-four family residential non-owner occupied		19		19		-		19		3
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		1
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
								-
With an allowance recorded:
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		-		-		-		-		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total:
One-to-four family residential owner occupied	$	171	$	178	$	-	$	171	$	1
One-to-four family residential non-owner occupied		19		19		-		19		3
Multi-family residential		-		-		-		-		-
Commercial real estate		131		131		-		131		1
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	321	$	328	$	-	$	321	$	5

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

	March 31, 2021
	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		1		9		9		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		1		131		-		131		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		2	$	140	$	9	$	131	$	-

	December 31, 2020
	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		1		19		19		-		-
Multi-family residential		-		-		-		-		-
Commercial real estate		1		131		-		131		-
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total		2	$	150	$	19	$	131	$	-

Contractual Aging of Troubled Debt Restructurings [Table Text Block]

	March 31, 2021
	Current		Past Due 30-89 Days		90 Days or More Past Due		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		9		9
Multi-family residential		-		-		-		-		-
Commercial real estate		131		-		-		-		131
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	131	$	-	$	-	$	9	$	140

	December 31, 2020
	Current		Past Due 30-89 Days		90 Days or More Past Due		Non- Accrual		Total
One-to-four family residential owner occupied	$	-	$	-	$	-	$	-	$	-
One-to-four family residential non-owner occupied		-		-		-		19		19
Multi-family residential		-		-		-		-		-
Commercial real estate		131		-		-		-		131
Construction		-		-		-		-		-
Home equity		-		-		-		-		-
Commercial business		-		-		-		-		-
Other consumer		-		-		-		-		-
Total	$	131	$	-	$	-	$	19	$	150

Financing Receivable, Current, Allowance for Credit Loss [Table Text Block]

	March 31, 2021
	1-4 Family Residential Owner Occupied		1-4 Family Residential Non-Owner Occupied		Multi-Family Residential		Commercial Real Estate		Construction			Home Equity		Commercial Business and Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	88	$	362	$	229	$	1,287	$	62		$	20	$	763	$	250	$	3,061
Charge-offs		-		-		-		-		-			-		-		-		-
Recoveries		-		-		-		-		-			-		-		-		-
Provision		19		14		3		92		(5	)		7		124		-		254
Ending balance	$	107	$	376	$	232	$	1,379	$	57		$	27	$	887	$	250	$	3,315
Ending balance evaluated for impairment:
Individually	$	-	$	-	$	-	$	-	$	-		$	-	$	-	$	-	$	-
Collectively	$	107	$	376	$	232	$	1,379	$	57		$	27	$	887	$	250	$	3,315
Loans receivable:
Ending balance:	$	10,351	$	41,543	$	24,376	$	132,561	$	5,969		$	4,127	$	198,983			$	417,910
Ending balance evaluated for impairment:
Individually	$	171	$	9	$	-	$	131	$	-		$	-	$	38			$	349
Collectively	$	10,180	$	41,534	$	24,376	$	132,430	$	5,969		$	4,127	$	198,945			$	417,561

	March 31, 2020
	1-4 Family Residential Owner Occupied			1-4 Family Residential Non-Owner Occupied			Multi-Family Residential		Commercial Real Estate		Construction			Home Equity		Commercial Business and Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	52		$	351		$	145	$	854	$	250		$	19	$	500	$	60	$	2,231
Charge-offs		-			-			-		-		-			-		-		-		-
Recoveries		-			-			-		-		-			-		-		-		-
Provision		(5	)		(44	)		72		90		(82	)		7		37		40		115
Ending balance	$	47		$	307		$	217	$	944	$	168		$	26	$	537	$	100	$	2,346
Ending balance evaluated for impairment
Individually	$	-		$	-		$	-	$	3	$	-		$	-	$	-	$	-	$	3
Collectively	$	47		$	307		$	217	$	941	$	168		$	26	$	537	$	100	$	2.343

	December 31, 2020
	1-4 Family Residential Owner Occupied		1-4 Family Residential Non-Owner Occupied		Multi-Family Residential		Commercial Real Estate		Construction			Home Equity		Commercial Business and Other Consumer		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	52	$	351	$	145	$	854	$	250		$	19	$	500	$	60	$	2,231
Charge-offs		-		-		-		-		-			-		-		-		-
Recoveries		-		-		-		-		-			-		-		-		-
Provision		36		11		84		433		(188	)		1		263		190		830
Ending balance	$	88	$	362	$	229	$	1,287	$	62		$	20	$	763	$	250	$	3,061
Ending balance evaluated for impairment:
Individually	$	-	$	-	$	-	$	-	$	-		$	-	$	-	$	-	$	-
Collectively	$	88	$	362	$	229	$	1,287	$	62		$	20	$	763	$	250	$	3,061
Loans receivable:
Ending balance	$	7,528	$	38,884	$	24,043	$	131,820	$	4,775		$	3,788	$	154,404			$	365,242
Ending balance evaluated for impairment:
Individually	$	171	$	19	$	-	$	131	$	-		$	-	$	-			$	321
Collectively	$	7,357	$	38,865	$	24,043	$	131,689	$	4,775		$	3,788	$	154,404			$	364,921

Financing Receivable, Nonaccrual [Table Text Block]

	March 31, 2021		December 31, 2020
One-to-four family residential owner occupied	$	171	$	171
One-to-four family residential non-owner occupied		9		19
Multi-family residential		-		-
Commercial real estate		-		-
Construction		-		-
Home equity		-		-
Commercial business		38		-
Other consumer		-		-
Total	$	218	$	190

Financing Receivable, Past Due [Table Text Block]

	March 31, 2021
	30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Loans Receivable 90 Days or More Past Due and Accruing
One-to-four family residential owner occupied	$	403	$	-	$	403	$	9,948	$	10,351	$	-
One-to-four family residential non-owner occupied		161		-		161		41,382		41,543		-
Multi-family residential		1,723		-		1,723		22,653		24,376		-
Commercial real estate		3,557		-		3,557		129,004		132,561		-
Construction		-		-		-		5,969		5,969		-
Home equity		-		-		-		4,127		4,127		-
Commercial business		-		-		-		198,967		198,967		-
Other consumer		-		-		-		16		16		-
Total	$	5,844	$	-	$	5,844	$	412,066	$	417,910	$	-

	December 31, 2020
	30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Loans Receivable 90 Days or More Past Due and Accruing
One-to-four family residential owner occupied	$	822	$	171	$	993	$	6,535	$	7,528	$	-
One-to-four family residential non-owner occupied		189		66		255		38,629		38,884		66
Multi-family residential		1,947		-		1,947		22,096		24,043		-
Commercial real estate		569		387		956		130,864		131,820		387
Construction		1,783		-		1,783		2,992		4,775		-
Home equity		-		-		-		3,788		3,788		-
Commercial business		574		-		574		153,813		154,387		-
Other consumer		-		-		-		17		17		-
Total	$	5,884	$	624	$	6,508	$	358,734	$	365,242	$	453

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Note 8 - Deposits (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Deposit Liabilities, Type [Table Text Block]

	March 31, 2021		December 31, 2020
Non-interest bearing checking accounts	$	94,985	$	54,202
Passbook accounts		10		8
Savings accounts		1,529		1,570
Money market accounts		153,958		99,638
Certificates of deposit		189,235		199,427
Total deposits	$	439,717	$	354,845

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Note 9 - Borrowings (Tables)

3 Months Ended

Mar. 31, 2021

Federal Home Loan Bank Advances [Member]

Notes Tables

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

	March 31, 2021					December 31, 2020
	Amount		Weighted Interest Rate			Amount		Weighted Interest Rate
Short-term borrowings	$	-		-	%	$	10,000		0.41	%
Fixed rate borrowings maturing:
2021		5,000		2.20			5,000		2.20
2022		7,171		2.10			7,171		2.10
2023		7,000		2.16			7,000		2.16
2024		6,167		2.05			6,167		2.05
2025		2,855		1.25			2,855		1.25
Total FHLB long-term debt	$	28,193		2.03	%	$	28,193		2.03	%

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Note 10 - Stock Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Share-based Payment Arrangement, Activity [Table Text Block]

	March 31, 2021				March 31, 2020
	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		28,266	$	13.30		38,887	$	13.30
Granted		-		-		-		-
Vested		-		-		-		-
Forfeited		-		-		-		-
Unvested at the end of the period		28,266	$	13.30		38,887	$	13.30

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	2021							2020
	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 period		240,636		$	10.98		5.2		256,336		$	10.87		6.0
Granted		-			-		-		-			-		-
Exercised		(2,000	)		8.10		-		(6,500	)		8.10		-
Forfeited		-					-		-			-		-
Outstanding at end of period		238,636		$	11.00		5.0		249,836		$	10.94		5.9
Exercisable at end of period		159,054		$	9.86		5.5		140,527		$	9.11		4.4

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

Expected dividend yield	2.11	%
Risk-free interest rate	2.96	%
Expected life of options (years)	6.5
Expected stock-price volatility	12.42	%

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Note 11 - Fair Value Measurements and Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

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

	March 31, 2021
	Fair Value Measurements Using:
	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Recurring fair value measurements
Investment securities available for sale:
Government National Mortgage Association mortgage-backed securities	$	4,670	$	-	$	4,670	$	-
Federal National Mortgage Association mortgage- backed securities		177		-		177		-
Corporate notes		1,543		-		1,543		-
Total investment securities available for sale	$	6,390	$	-	$	6,390	$	-
Total recurring fair value measurements	$	6,390	$	-	$	6,390	$	-
Nonrecurring fair value measurements
Impaired loans	$	349	$	-	$	-	$	349
Other Real Estate Owned		316		-		-		316
Total nonrecurring fair value measurements	$	665	$	-	$	-	$	665

	December 31, 2020
	Fair Value Measurements Using:
	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Recurring fair value measurements:
Investment securities available for sale
Government National Mortgage Association mortgage-backed securities	$	4,913	$	-	$	4,913	$	-
Federal National Mortgage Association mortgage- backed securities		189		-		189		-
Corporate notes		5,623		-		5,623		-
Total investment securities available for sale	$	10,725	$	-	$	10,725	$	-
Total recurring fair value measurements	$	10,725	$	-	$	10,725	$	-
Nonrecurring fair value measurements
Impaired loans	$	321	$	-	$	-	$	321
Other Real Estate Owned		286		-		-		286
Total nonrecurring fair value measurements	$	607	$	-	$	-	$	607

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

	March 31, 2021
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	349	Appraisal of collateral (1)	Appraisal adjustments (2)			8%	(8%)
Other real estate owned	$	316	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	12%	(12%)

	December 31, 2020
	Quantitative Information About Level 3 Fair Value Measurements
	Total Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans	$	321	Appraisal of collateral (1)	Appraisal adjustments (2)			8%	(8%)
Other real estate owned	$	286	Appraisal of collateral (1)	Appraisal adjustments (2)	0%	-	12%	(12%)

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

					Fair Value Measurements at
					March 31, 2021
	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Financial Assets
Investment in interest-earning time deposits	$	7,964	$	8,226	$	-	$	-	$	8,226
Loans held for sale		73,742		75,484		-		75,484		-
Loans receivable, net		409,881		414,554		-		-		414,554
Financial Liabilities
Deposits		439,717		442,293		250,482		-		191,811
FHLB long-term borrowings		28,193		28,272		-		-		28,272
FRB long-term borrowings		43,526		43,518		-		-		43,518
Subordinated debt		7,907		8,314		-		-		8,314

					Fair Value Measurements at
					December 31, 2020
	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Financial Assets
Investment in interest-earning time deposits	$	9,463	$	9,842	$	-	$	-	$	9,842
Loans held for sale		53,191		62,396		-		62,396		-
Loans receivable, net		356,122		363,527		-		-		363,527
Financial Liabilities
Deposits		354,845		358,112		155,417		-		202,695
FHLB long-term borrowings		28,193		28,284		-		-		28,284
FRB long-term borrowings		48,134		48,126		-		-		48,126
Subordinated debt		7,899		8,283		-		-		8,283

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Note 12 - Operating Segments (Tables)

3 Months Ended

Mar. 31, 2021

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	As of or for the Three Months Ended March 31,
	2021							2020
	Quaint Oak Bank(1)		Quaint Oak Mortgage			Consolidated		Quaint Oak Bank(1)		Quaint Oak Mortgage			Consolidated
Net Interest Income	$	3,742	$	(114	)	$	3,628	$	2,290	$	(47	)	$	2,243
Provision for Loan Losses		254		-			254		115		-			115
Net Interest Income after Provision for Loan Losses		3,488		(114	)		3,374		2,175		(47	)		2,128
Non-Interest Income
Mortgage banking and title abstract fees		436		95			531		144		150			294
Real estate sales commissions, net		31		-			31		33		-			33
Insurance commissions		107		-			107		97		-			97
Other fees and services charges		122		-			122		83		-			83
Loan servicing income		223		-			223		-		-			-
Income from bank-owned life insurance		19		-			19		19		-			19
Net gain on loans held for sale		624		591			1,215		-		781			781
Gain on sale of investment securities available for sale		317		-			317		-		-			-
Gain on the sale of SBA loans		201		-			201		-		-			-
Total Non-Interest Income		2,080		686			2,766		376		931			1,307
Non-Interest Expense
Salaries and employee benefits		2,928		472			3,400		1,667		311			1,978
Directors' fees and expenses		68		-			68		61		-			61
Occupancy and equipment		298		79			377		135		70			205
Data processing		130		75			205		108		29			137
Professional fees		146		17			163		97		17			114
FDIC deposit insurance assessment		51		-			51		21		-			21
Other real estate owned expenses		9		-			9		14		-			14
Advertising		91		14			105		61		14			75
Amortization of other intangible		12		-			12		12		-			12
Other		309		20			329		196		14			210
Total Non-Interest Expense		4,042		677			4,719		2,372		455			2,827
Pretax Segment (Loss) Profit	$	1,526	$	(105	)	$	1,421	$	179	$	429		$	608
Segment Assets	$	530,047	$	30,943		$	560,990	$	291,392	$	18,054		$	309,446

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Note 1 - Financial Statement Presentation and Significant Accounting Policies (Details Textual) - USD ($)		3 Months Ended
	Aug. 01, 2016	Mar. 31, 2021	Mar. 31, 2020
Oakmont Capital Holdings, LLC [Member]
Noncash or Part Noncash Acquisition, Intangible Assets Acquired		$ 2,592,000
Signature Insurance Services, LLC [Member]
Payments to Acquire Businesses, Gross	$ 1,000,000
Goodwill, Acquired During Period	515,000
Signature Insurance Services, LLC [Member] | Other Intangible Assets [Member]
Finite-lived Intangible Assets Acquired	$ 485,000
Finite-Lived Intangible Asset, Useful Life (Year)	10 years

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Note 2 - Earnings Per Share - Weighted Average Shares Used in Basic and Dilutive Earnings Per Share Computations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Income Attributable to Quaint Oak Bancorp, Inc.	$ 1,030,000	$ 432,000
Weighted average shares outstanding – basic (in shares)	1,980,007	1,964,132
Effect of dilutive common stock equivalents (in shares)	86,403	67,362
Adjusted weighted average shares outstanding – diluted (in shares)	2,066,411	2,031,494
Basic earnings per share (in dollars per share)	$ 0.52	$ 0.22
Diluted earnings per share (in dollars per share)	$ 0.50	$ 0.21

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Note 3 - Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Balance at the beginning of the period		$ 28,728
Total other comprehensive loss		(58)	$ (24)
Balance at the end of the period		29,654
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Balance at the beginning of the period	[1]	118	20
Other comprehensive income (loss) before classifications	[1]	192	(24)
Amount reclassified from accumulated other comprehensive income (loss)	[1]	(250)
Total other comprehensive loss	[1]	(58)	(24)
Balance at the end of the period	[1]	$ 60	$ (4)

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

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Note 3 - Accumulated Other Comprehensive Income (Loss) - Reclassified Out of Accumulated other Comprehensive Loss (Details) - USD ($)		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Sale of securities available for sale		$ 317,000
Tax effect		424,000	176,000
Net Income Attributable to Quaint Oak Bancorp, Inc.		1,030,000	432,000
Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Sale of securities available for sale	[1]	317,000
Tax effect	[1]	(67,000)
Net Income Attributable to Quaint Oak Bancorp, Inc.	[1]	$ 250,000

[1] Amounts in parentheses indicate debits.

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Note 4 - Investment in Interest-earning Time Deposits - Investment in Interest-earnings Time Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Due in one year or less	$ 4,060	$ 4,006
Due after one year through five years	3,904	5,457
Total	$ 7,964	$ 9,463

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Note 5 - Investment Securities Available for Sale (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions	1
Percentage of Aggregate Depreciation Held by Debt Securities	0.17%
Other than Temporary Impairment Losses, Investments, Total	$ 0	$ 0

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Note 5 - Investment Securities Available for Sale - Amortized Cost and Fair Value of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Amortized cost	$ 6,314	$ 10,576
Gross unrealized gains	77	150
Gross unrealized losses	(1)	(1)
Fair value	6,390	10,725
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Amortized cost	4,814	5,070
Gross unrealized gains	34	33
Gross unrealized losses	(1)	(1)
Fair value	4,847	5,102
Corporate Debt Securities [Member]
Amortized cost	1,500	5,506
Gross unrealized gains	43	117
Gross unrealized losses
Fair value	1,543	5,623
Government National Mortgage Association (GNMA) Insured Loans [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Amortized cost	4,644	4,887
Gross unrealized gains	27	27
Gross unrealized losses	(1)	(1)
Fair value	4,670	4,913
Federal National Mortgage Association (FNMA) Insured Loans [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Amortized cost	170	183
Gross unrealized gains	7	6
Gross unrealized losses
Fair value	$ 177	$ 189

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Note 5 - Investment Securities Available for Sale - Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Due after five years through ten years, amortized cost	$ 1,500
Due after five years through ten years, fair value	1,543
Due after ten years, amortized cost	4,814
Due after ten years, fair value	4,847
Total, amortized cost	6,314	$ 10,576
Total, fair value	$ 6,390	$ 10,725

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Note 5 - Investment Securities Available for Sale - Gross Unrealized Losses and Fair Value (Details) $ in Thousands	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Number of securities	1
Corporate Debt Securities [Member]
Number of securities	1
Fair value, less than twelve months	$ 657
Gross unrealized losses, less than twelve months	(1)
Fair value, twelve months or greater
Gross unrealized losses, twelve months or greater
Fair value	657
Gross unrealized losses	$ (1)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member]
Number of securities		1
Fair value, less than twelve months		$ 681
Gross unrealized losses, less than twelve months		(1)
Fair value, twelve months or greater
Gross unrealized losses, twelve months or greater
Fair value		681
Gross unrealized losses		$ (1)

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Note 6 - Loans Receivable, Net and Allowance for Loan Losses (Details Textual)	3 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)
Troubled Debt Restructuring, Number of Contracts	2		2
Financing Receivable, Troubled Debt Restructuring	$ 140,000		$ 150,000
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	0
Loans and Leases Receivable, Gross, Total	417,910,000		365,242,000
Impaired Financing Receivable, Interest Income, Cash Basis Method, Total	0	$ 0
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans	3,000	$ 3,000
Nonperforming Financial Instruments [Member]
Loans and Leases Receivable, Gross, Total	$ 218,000		$ 643,000

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Note 6 - Loans Receivable, Net and Allowance for Loan Losses - Composition of Net Loans Receivable (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Loans	$ 417,910,000	$ 365,242,000
Deferred loan fees and costs	(4,714,000)	(3,059,000)
Allowance for loan losses	(3,315,000)	(3,061,000)	$ (2,346,000)	$ (2,231,000)
Net Loans	409,881,000	359,122,000
Real Estate Portfolio Segment [Member]
Loans	218,927,000	210,838,000
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Loans	10,351,000	7,528,000
Allowance for loan losses	(107,000)	(88,000)	(47,000)	(52,000)
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Loans	41,543,000	38,884,000
Allowance for loan losses	(376,000)	(362,000)	(307,000)	(351,000)
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Loans [Member]
Loans	51,894,000	46,412,000
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Loans	24,376,000	24,043,000
Allowance for loan losses	(232,000)	(229,000)	(217,000)	(145,000)
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member]
Loans	132,561,000	131,820,000
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Loans	5,969,000	4,775,000
Allowance for loan losses	(57,000)	(62,000)	(168,000)	(250,000)
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Loans	4,127,000	3,788,000
Allowance for loan losses	(27,000)	(20,000)	$ (26,000)	$ (19,000)
Commercial Portfolio Segment [Member]
Loans	198,967,000	154,387,000
Consumer Portfolio Segment [Member]
Loans	$ 16,000	$ 17,000

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Note 6 - Loans Receivable, Net and Allowance for Loan Losses - Loan Portfolio by Credit Rating (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Loans	$ 417,910	$ 365,242
Pass [Member]
Loans	414,423	361,755
Special Mention [Member]
Loans	2,784	2,707
Substandard [Member]
Loans	703	780
Doubtful [Member]
Loans
Real Estate Portfolio Segment [Member]
Loans	218,927	210,838
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Loans	10,351	7,528
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Pass [Member]
Loans	9,765	6,942
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Special Mention [Member]
Loans	415	415
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Substandard [Member]
Loans	171	171
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 Non-owner Occupied Loans [Member]
Loans	41,543	38,884
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Pass [Member]
Loans	41,239	38,567
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Special Mention [Member]
Loans
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Substandard [Member]
Loans	304	317
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Doubtful [Member]
Loans
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Loans	24,376	24,043
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Pass [Member]
Loans	24,376	24,043
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] | Commercial Real Estate Loans [Member]
Loans	132,561	131,820
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Pass [Member]
Loans	130,002	129,236
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Special Mention [Member]
Loans	2,369	2,292
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Substandard [Member]
Loans	190	292
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Doubtful [Member]
Loans
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Loans	5,969	4,775
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member]
Loans	5,969	4,775
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member]
Loans
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member]
Loans
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Doubtful [Member]
Loans
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Loans	4,127	3,788
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Pass [Member]
Loans	4,127	3,788
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
Commercial Portfolio Segment [Member]
Loans	198,967	154,387
Commercial Portfolio Segment [Member] | Pass [Member]
Loans	198,929	154,387
Commercial Portfolio Segment [Member] | Special Mention [Member]
Loans
Commercial Portfolio Segment [Member] | Substandard [Member]
Loans	38
Commercial Portfolio Segment [Member] | Doubtful [Member]
Loans
Consumer Portfolio Segment [Member]
Loans	16	17
Consumer Portfolio Segment [Member] | Pass [Member]
Loans	16	17
Consumer Portfolio Segment [Member] | Special Mention [Member]
Loans
Consumer Portfolio Segment [Member] | Substandard [Member]
Loans
Consumer Portfolio Segment [Member] | Doubtful [Member]
Loans

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Note 6 - Loans Receivable, Net and Allowance for Loan Losses - Impaired Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Related allowance
Recorded investment	349	321
Unpaid principal balance	356	328
Average recorded investment	349	321
Interest income recognized	6	5
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Recorded investment, with no related allowance recorded	171	171
Unpaid principal balance, with no related allowance recorded	178	178
Average recorded investment, with no related allowance recorded	171	171
Interest income recognized, with no related allowance recorded	3	1
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
Recorded investment	171	171
Unpaid principal balance	178	178
Average recorded investment	171	171
Interest income recognized	3	1
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Recorded investment, with no related allowance recorded	9	19
Unpaid principal balance, with no related allowance recorded	9	19
Average recorded investment, with no related allowance recorded	9	19
Interest income recognized, with no related allowance recorded		3
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
Recorded investment	9	19
Unpaid principal balance	9	19
Average recorded investment	9	19
Interest income recognized		3
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
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
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
Recorded investment
Unpaid principal balance
Average recorded investment
Interest income recognized
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member]
Recorded investment, with no related allowance recorded	131	131
Unpaid principal balance, with no related allowance recorded	131	131
Average recorded investment, with no related allowance recorded	131	131
Interest income recognized, with no related allowance recorded	3	1
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
Recorded investment	131	131
Unpaid principal balance	131	131
Average recorded investment	131	131
Interest income recognized	3	1
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
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
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
Recorded investment
Unpaid principal balance
Average recorded investment
Interest income recognized
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
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
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
Recorded investment
Unpaid principal balance
Average recorded investment
Interest income recognized
Commercial Portfolio Segment [Member]
Recorded investment, with no related allowance recorded	38
Unpaid principal balance, with no related allowance recorded	38
Average recorded investment, with no related allowance recorded	38
Interest income recognized, with no related 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
Recorded investment	38
Unpaid principal balance	38
Average recorded investment	38
Interest income recognized
Consumer Portfolio Segment [Member]
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
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
Recorded investment
Unpaid principal balance
Average recorded investment
Interest income recognized

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Note 6 - Loans Receivable, Net and Allowance for Loan Losses - Troubled Debt Restructuring Loans (Details)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Troubled debt restructuring, number of contracts	2	2
Troubled debt restructuring, recorded investment	$ 140,000	$ 150,000
Troubled debt restructuring, related allowance
Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment	9,000	19,000
Accruing Instrument [Member]
Troubled debt restructuring, recorded investment	$ 131,000	$ 131,000
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 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 Non-owner Occupied Loans [Member]
Troubled debt restructuring, number of contracts	1	1
Troubled debt restructuring, recorded investment	$ 9,000	$ 19,000
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	9,000	19,000
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied 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] | 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] | Commercial Real Estate Loans [Member]
Troubled debt restructuring, number of contracts	1	1
Troubled debt restructuring, recorded investment	$ 131,000	$ 131,000
Troubled debt restructuring, related allowance
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Nonaccruing Instrument [Member]
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Accruing Instrument [Member]
Troubled debt restructuring, recorded investment	$ 131,000	$ 131,000
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] | 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] | Home Equity Loan [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
Commercial Portfolio Segment [Member]
Troubled debt restructuring, number of contracts
Troubled debt restructuring, recorded investment
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
Consumer 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

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Note 6 - Loans Receivable, Net and Allowance for Loan Losses - Contractual Aging of the TDRs (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Troubled debt restructurings, non-accrual	$ 9,000	$ 19,000
Troubled debt restructuring, recorded investment	140,000	150,000
Financial Asset, 1 to 29 Days Past Due [Member]
Troubled debt restructurings, past due	131,000	131,000
Financing Receivables, 30 to 89 Days Past Due [Member]
Troubled debt restructurings, past due
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Financial Asset, 1 to 29 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Troubled debt restructurings, non-accrual	9,000	19,000
Troubled debt restructuring, recorded investment	9,000	19,000
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Financial Asset, 1 to 29 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Financial Asset, 1 to 29 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member]
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment	131,000	131,000
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Financial Asset, 1 to 29 Days Past Due [Member]
Troubled debt restructurings, past due	131,000	131,000
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, 1 to 29 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Financial Asset, 1 to 29 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Troubled debt restructurings, past due
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Troubled debt restructurings, past due
Commercial Portfolio Segment [Member]
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Commercial Portfolio Segment [Member] | Financial Asset, 1 to 29 Days Past Due [Member]
Troubled debt restructurings, past due
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Troubled debt restructurings, past due
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Troubled debt restructurings, past due
Consumer Portfolio Segment [Member]
Troubled debt restructurings, non-accrual
Troubled debt restructuring, recorded investment
Consumer Portfolio Segment [Member] | Financial Asset, 1 to 29 Days Past Due [Member]
Troubled debt restructurings, past due
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Troubled debt restructurings, past due
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Troubled debt restructurings, past due

XML

Note 6 - Loans Receivable, Net and Allowance for Loan Losses - Changes in the Allowance for Loan Losses and Recorded Investment in Loans Receivable (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
Allowance for loan losses, beginning balance	$ 3,061,000	$ 2,231,000	$ 2,231,000
Charge-offs
Recoveries
Provision	254,000	115,000	830,000
Allowance for loan losses, ending balance	3,315,000	2,346,000	3,061,000
Allowance for loan losses, individually evaluated for impairment		3,000
Allowance for loan losses, collectively evaluated for impairment		2,343		3,315,000	3,061,000
Loans receivable, ending balance	417,910,000		365,242,000
Loans receivable, individually evaluated for impairment				349,000	321,000
Loans receivable, collectively evaluated for impairment				417,561,000	364,921,000
Loans	417,910,000		365,242,000	417,910,000	365,242,000
Real Estate Portfolio Segment [Member]
Loans receivable, ending balance	218,927,000		210,838,000
Loans	218,927,000		210,838,000	218,927,000	210,838,000
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Allowance for loan losses, beginning balance	88,000	52,000	52,000
Charge-offs
Recoveries
Provision	19,000	(5,000)	36,000
Allowance for loan losses, ending balance	107,000	47,000	88,000
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment		47,000		107,000	88,000
Loans receivable, ending balance	10,351,000		7,528,000
Loans receivable, individually evaluated for impairment				171,000	171,000
Loans receivable, collectively evaluated for impairment				10,180,000	7,357,000
Loans	10,351,000		7,528,000	10,351,000	7,528,000
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Allowance for loan losses, beginning balance	362,000	351,000	351,000
Charge-offs
Recoveries
Provision	14,000	(44,000)	11,000
Allowance for loan losses, ending balance	376,000	307,000	362,000
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment		307,000		376,000	362,000
Loans receivable, ending balance	41,543,000		38,884,000
Loans receivable, individually evaluated for impairment				9,000	19,000
Loans receivable, collectively evaluated for impairment				41,534,000	38,865,000
Loans	41,543,000		38,884,000	41,543,000	38,884,000
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Allowance for loan losses, beginning balance	229,000	145,000	145,000
Charge-offs
Recoveries
Provision	3,000	72,000	84,000
Allowance for loan losses, ending balance	232,000	217,000	229,000
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment		217,000		232,000	229,000
Loans receivable, ending balance	24,376,000		24,043,000
Loans receivable, individually evaluated for impairment
Loans receivable, collectively evaluated for impairment				24,376,000	24,043,000
Loans	24,376,000		24,043,000	24,376,000	24,043,000
Real Estate Portfolio Segment [Member] | Commercial Real Estate and Lines of Credit [Member]
Allowance for loan losses, beginning balance	1,287,000	854,000	854,000
Charge-offs
Recoveries
Provision	92,000	90,000	433,000
Allowance for loan losses, ending balance	1,379,000	944,000	1,287,000
Allowance for loan losses, individually evaluated for impairment		3,000
Allowance for loan losses, collectively evaluated for impairment		941,000		1,379,000	1,287,000
Loans receivable, ending balance	132,561,000		131,820,000
Loans receivable, individually evaluated for impairment				131,000	131,000
Loans receivable, collectively evaluated for impairment				132,430,000	131,689,000
Loans	132,561,000		131,820,000	132,561,000	131,820,000
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Allowance for loan losses, beginning balance	62,000	250,000	250,000
Charge-offs
Recoveries
Provision	(5,000)	(82,000)	(188,000)
Allowance for loan losses, ending balance	57,000	168,000	62,000
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment		168,000		57,000	62,000
Loans receivable, ending balance	5,969,000		4,775,000
Loans receivable, individually evaluated for impairment
Loans receivable, collectively evaluated for impairment				5,969,000	4,775,000
Loans	5,969,000		4,775,000	5,969,000	4,775,000
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Allowance for loan losses, beginning balance	20,000	19,000	19,000
Charge-offs
Recoveries
Provision	7,000	7,000	1,000
Allowance for loan losses, ending balance	27,000	26,000	20,000
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment		26,000		27,000	20,000
Loans receivable, ending balance	4,127,000		3,788,000
Loans receivable, individually evaluated for impairment
Loans receivable, collectively evaluated for impairment				4,127,000	3,788,000
Loans	4,127,000		3,788,000	4,127,000	3,788,000
Commercial and Consumer Portfolio Segments [Member]
Allowance for loan losses, beginning balance	763,000	500,000	500,000
Charge-offs
Recoveries
Provision	124,000	37,000	263,000
Allowance for loan losses, ending balance	887,000	537,000	763,000
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment		537,000		887,000	763,000
Loans receivable, ending balance	198,983,000		154,404,000
Loans receivable, individually evaluated for impairment				38,000
Loans receivable, collectively evaluated for impairment				198,945,000	154,404,000
Loans	198,983,000		154,404,000	198,983,000	154,404,000
Unallocated Financing Receivables [Member]
Allowance for loan losses, beginning balance	250,000	60,000	60,000
Charge-offs
Recoveries
Provision		40,000	190,000
Allowance for loan losses, ending balance	250,000	100,000	250,000
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment		$ 100,000		250,000	250,000
Loans receivable, ending balance
Loans receivable, individually evaluated for impairment
Loans receivable, collectively evaluated for impairment
Loans

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Note 6 - Loans Receivable, Net and Allowance for Loan Losses - Non-accrual Loans by Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Loans	$ 218	$ 190
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Loans	171	171
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Loans	9	19
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Loans
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member]
Loans
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Loans
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Loans
Commercial Portfolio Segment [Member]
Loans	38
Consumer Portfolio Segment [Member]
Loans

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Note 6 - Loans Receivable, Net and Allowance for Loan Losses - Loan Portfolio Summarized by Past Due Status (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Loans, past due	$ 5,844	$ 6,508
Loans, current	412,066	358,734
Loans	417,910	365,242
Loans > 90 days and accruing		453
The 30 to 89 Days Delinquent [Member]
Loans, past due	5,844	5,884
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due		624
Real Estate Portfolio Segment [Member]
Loans	218,927	210,838
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member]
Loans, past due	403	993
Loans, current	9,948	6,535
Loans	10,351	7,528
Loans > 90 days and accruing
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | The 30 to 89 Days Delinquent [Member]
Loans, past due	403	822
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Owner Occupied Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due		171
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member]
Loans, past due	161	255
Loans, current	41,382	38,629
Loans	41,543	38,884
Loans > 90 days and accruing		66
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | The 30 to 89 Days Delinquent [Member]
Loans, past due	161	189
Real Estate Portfolio Segment [Member] | One-to-four Family Residential Non-owner Occupied Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due		66
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member]
Loans, past due	1,723	1,947
Loans, current	22,653	22,096
Loans	24,376	24,043
Loans > 90 days and accruing
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | The 30 to 89 Days Delinquent [Member]
Loans, past due	1,723	1,947
Real Estate Portfolio Segment [Member] | Multi-family (Five Or More) Residential Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member]
Loans, past due	3,557	956
Loans, current	129,004	130,864
Loans	132,561	131,820
Loans > 90 days and accruing		387
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | The 30 to 89 Days Delinquent [Member]
Loans, past due	3,557	569
Real Estate Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due		387
Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Loans, past due		1,783
Loans, current	5,969	2,992
Loans	5,969	4,775
Loans > 90 days and accruing
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | The 30 to 89 Days Delinquent [Member]
Loans, past due		1,783
Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member]
Loans, past due
Loans, current	4,127	3,788
Loans	4,127	3,788
Loans > 90 days and accruing
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | The 30 to 89 Days Delinquent [Member]
Loans, past due
Real Estate Portfolio Segment [Member] | Home Equity Loan [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due
Commercial Portfolio Segment [Member]
Loans, past due		574
Loans, current	198,967	153,813
Loans	198,967	154,387
Loans > 90 days and accruing
Commercial Portfolio Segment [Member] | The 30 to 89 Days Delinquent [Member]
Loans, past due		574
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due
Consumer Portfolio Segment [Member]
Loans, past due
Loans, current	16	17
Loans	16	17
Loans > 90 days and accruing
Consumer Portfolio Segment [Member] | The 30 to 89 Days Delinquent [Member]
Loans, past due
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due

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Note 7 - Goodwill and Other Intangible, Net (Details Textual) - USD ($)			3 Months Ended
	Jan. 04, 2021	Aug. 01, 2016	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Finite-Lived Intangible Assets, Net, Ending Balance			$ 259,000		$ 271,000
Amortization of Intangible Assets, Total			12,000	$ 12,000
Quaint Oak Bank [Member]
Goodwill, Acquired During Period	$ 2,600,000
Quaint Oak Bank [Member] | Oakmont Capital Holdings, LLC [Member]
Noncontrolling Interest, Ownership Percentage by Parent	51.00%
Other Intangible Assets [Member]
Finite-Lived Intangible Assets, Net, Ending Balance			259,000
Finite-Lived Intangible Assets, Accumulated Amortization			$ 256,000
Signature Insurance Services, LLC [Member]
Payments to Acquire Businesses, Gross		$ 1,000,000
Goodwill, Acquired During Period		515,000
Signature Insurance Services, LLC [Member] | Other Intangible Assets [Member]
Finite-lived Intangible Assets Acquired		$ 485,000
Finite-Lived Intangible Asset, Useful Life (Year)		10 years

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Note 8 - Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Non-interest bearing checking accounts, amount	$ 94,985	$ 54,202
Money market accounts, amount	153,958	99,638
Certificates of deposit	189,235	199,427
Total deposits	439,717	354,845
Passbook Accounts [Member]
Interest-bearing deposits, amount	10	8
Savings Accounts [Member]
Interest-bearing deposits, amount	$ 1,529	$ 1,570

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Note 9 - Borrowings (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Repayments of Federal Reserve Bank Borrowings, Financing Activities	$ 4,608
Long-term Federal Reserve Bank Advances, Increase (Decrease) Percentage	(9.60%)
Long-term Federal Reserve Bank Advances	$ 43,526		$ 48,134
Other Borrowings	3,057
Oakmont Capital Holdings, LLC Lines of Credit to Fund Equipment Loans [Member]
Other Borrowings	3,100
Line of Credit Facility, Maximum Borrowing Capacity	$ 11,000

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Note 9 - Borrowings - Federal Home Loan Bank Long-term Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Short-term borrowings, amount		$ 10,000
Short-term borrowings, weighted interest rate		0.41%
2021, amount	$ 5,000
2021, weighted interest rate	2.20%
2021, amount	$ 7,171	$ 5,000
2021, weighted interest rate	2.10%	2.20%
2022, amount	$ 7,000	$ 7,171
2022, weighted interest rate	2.16%	2.10%
2023, amount	$ 6,167	$ 7,000
2023, weighted interest rate	2.05%	2.16%
2024, amount	$ 2,855	$ 6,167
2024, weighted interest rate	1.25%	2.05%
2025, amount		$ 2,855
2025, weighted interest rate		1.25%
Total FHLB long-term debt, amount	$ 28,193	$ 28,193
Total FHLB long-term debt, weighted interest rate	2.03%	2.03%

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Note 10 - Stock Compensation Plans (Details Textual) - USD ($)	1 Months Ended		3 Months Ended			12 Months Ended
	May 31, 2018	May 31, 2013	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2018	Dec. 31, 2007	Dec. 31, 2020	Dec. 31, 2019	May 31, 2008
Employee Stock Ownership Plan (ESOP), Compensation Expense			$ 59,000	$ 52,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 1.75
Share-based Payment Arrangement, Option [Member]
Share-based Payment Arrangement, Expense, after Tax			11,000	11,000
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount			$ 105,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)			2 years 36 days
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)			10 years		10 years
Share-based Payment Arrangement, Expense, Tax Benefit			$ 1,000	1,000
Share-based Payment Arrangement, Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)			5 years		5 years
The 2008 Recognition and Retention Plan [Member]
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in shares)		195,000
The 2013 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)		195,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)			5 years
The 2013 Stock Incentive Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)		48,750
Percentage of Shares May Be Granted As Restricted Stock Awards		25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)			1,200
The 2013 Stock Incentive Plan [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)		146,250
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)			3,200
The 2018 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)	155,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)			5 years
Share-based Payment Arrangement, Expense, after Tax			$ 32,000	$ 7,000
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount			$ 275,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)			2 years 36 days
The 2018 Stock Incentive Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)	38,750
Percentage of Shares May Be Granted As Restricted Stock Awards	25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)			11,750
The 2018 Stock Incentive Plan [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)	116,250
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)			37,250
Stock Incentive Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares)			28,266
The 2008 Stock Option Plan [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)									277,726
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)			0
The Option Plan and Stock Incentive Plan [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares)			238,636	249,836			240,636	256,336
Employee Stock Ownership Plan [Member]
Percentage of Company Shares Purchased by ESOP						8.00%
Employee Stock Ownership Plan (ESOP), Shares Contributed to ESOP (in shares)						222,180
ESOP Loan Interest Rate						7.75%
Employee Stock Ownership Plan (ESOP), Loan Term (Year)						15 years

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Note 10 - Stock Compensation Plans - Status of Shares Under the RRP and Stock Incentive Plan (Details) - The RRP and Stock Incentive Plan [Member] - Restricted Stock [Member] - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Unvested at the beginning of the period (in shares)	28,266	38,887
Unvested at the beginning of the period, weighted average grant date fair value (in dollars per share)	$ 13.30	$ 13.30
Granted, number of shares (in shares)
Granted, weighted average grant date fair value (in dollars per share)
Vested, number of shares (in shares)
Vested, weighted average grant date fair value (in dollars per share)
Forfeited, number of shares (in shares)
Forfeited, weighted average grant date fair value (in dollars per share)
Unvested at the end of the period (in shares)	28,266	38,887
Unvested at the end of the period, weighted average grant date fair value (in dollars per share)	$ 13.30	$ 13.30

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Note 10 - Stock Compensation Plans - Summary of Option Activity (Details) - Share-based Payment Arrangement, Option [Member] - The Option Plan and Stock Incentive Plan [Member] - $ / shares	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Outstanding at the beginning of the period (in shares)	240,636	256,336	256,336
Outstanding at the beginning of the period, weighted average exercise price (in dollars per share)	$ 10.98	$ 10.87	$ 10.87
Outstanding at the beginning of the period, weighted average remaining contractual life (Year)	5 years	5 years 328 days	5 years 73 days	6 years
Granted, number of shares (in shares)
Granted, weighted average exercise price (in dollars per share)
Granted, weighted average remaining contractual life (Year)
Exercised, number of shares (in shares)	(2,000)	(6,500)
Exercised, weighted average exercise price (in dollars per share)	$ 8.10	$ 8.10
Forfeited, number of shares (in shares)
Forfeited, weighted average exercise price (in dollars per share)
Outstanding at end of period (in shares)	238,636	249,836	240,636	256,336
Outstanding at end of period, weighted average exercise price (in dollars per share)	$ 11	$ 10.94	$ 10.98	$ 10.87
Exercisable at end of period (in shares)	159,054	140,527
Exercisable at end of period, weighted average exercise price (in dollars per share)	$ 9.86	$ 9.11
Exercisable at end of period, weighted average remaining contractual life (Year)	5 years 182 days	4 years 146 days

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Note 10 - Stock Compensation Plans - Fair Value Assumptions (Details)	3 Months Ended
	Mar. 31, 2021
Expected dividend yield	2.11%
Risk-free interest rate	2.96%
Expected life of options (Year)	6 years 182 days
Expected stock-price volatility	12.42%

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Note 11 - Fair Value Measurements and Fair Values of Financial Instruments - Financial Assets and Liabilities on a Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Investment securities available for sale	$ 6,390	$ 10,725
Fair Value, Recurring [Member]
Investment securities available for sale	6,390	10,725
Total fair value measurements	6,390	10,725
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Investment securities available for sale
Total fair value measurements
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities available for sale	6,390	10,725
Total fair value measurements	6,390	10,725
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Investment securities available for sale
Total fair value measurements
Fair Value, Nonrecurring [Member]
Total fair value measurements	665	607
Impaired loans	349	321
Other Real Estate Owned	316	286
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Total fair value measurements
Impaired loans
Other Real Estate Owned
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Total fair value measurements
Impaired loans
Other Real Estate Owned
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Total fair value measurements	665	607
Impaired loans	349	321
Other Real Estate Owned	316	286
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Investment securities available for sale	4,847	5,102
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member]
Investment securities available for sale	4,670	4,913
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member] | Fair Value, Recurring [Member]
Investment securities available for sale	4,670	4,913
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Investment securities available for sale
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities available for sale	4,670	4,913
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Government National Mortgage Association (GNMA) Insured Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Investment securities available for sale
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member]
Investment securities available for sale	177	189
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member] | Fair Value, Recurring [Member]
Investment securities available for sale	177	189
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Investment securities available for sale
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities available for sale	177	189
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Federal National Mortgage Association (FNMA) Insured Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Investment securities available for sale
Corporate Debt Securities [Member]
Investment securities available for sale	1,543	5,623
Corporate Debt Securities [Member] | Fair Value, Recurring [Member]
Investment securities available for sale	1,543	5,623
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Investment securities available for sale
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities available for sale	1,543	5,623
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Investment securities available for sale

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Note 11 - 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] - Fair Value, Inputs, Level 3 [Member] - Meaurement Input, Appraisal Adjustments Rate [Member] $ in Thousands		Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Impaired loans, fair value		$ 349	$ 321
Other real estate owned, fair value		$ 316	$ 286
Impaired Loans [Member]
Unobservable input, range	[1],[2]
Minimum [Member] | Impaired Loans [Member]
Unobservable input, range	[1],[2]
Minimum [Member] | Other Real Estate Owned [Member]
Unobservable input, range	[1],[2]	0	0
Maximum [Member] | Impaired Loans [Member]
Unobservable input, range	[1],[2]		0.08
Maximum [Member] | Other Real Estate Owned [Member]
Unobservable input, range	[1],[2]	0.12	0.12
Weighted Average [Member] | Impaired Loans [Member]
Unobservable input, range	[1],[2]	(0.08)	(0.08)
Weighted Average [Member] | Other Real Estate Owned [Member]
Unobservable input, range	[1],[2]	0.12	0.12

[1] 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.

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

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Note 11 - Fair Value Measurements and Fair Values of Financial Instruments - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Investment in interest-earning time deposits		$ 9,842
FRB long-term borrowings		48,126
Reported Value Measurement [Member]
Investment in interest-earning time deposits	$ 7,964	9,463
Loans held for sale	73,742	53,191
Loans receivable, net	409,881	356,122
Deposits	439,717	354,845
FHLB long-term borrowings	28,193	28,193
FRB long-term borrowings	43,526	48,134
Subordinated debt	7,907	7,899
Estimate of Fair Value Measurement [Member]
Investment in interest-earning time deposits	8,226
Loans held for sale	75,484	62,396
Loans receivable, net	414,554	363,527
Deposits	442,293	358,112
FHLB long-term borrowings	28,272	28,284
FRB long-term borrowings	43,518
Subordinated debt	8,314	8,283
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Investment in interest-earning time deposits
Loans held for sale
Loans receivable, net
Deposits	250,482	155,417
FHLB long-term borrowings
FRB long-term borrowings
Subordinated debt
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Investment in interest-earning time deposits
Loans held for sale	75,484	62,396
Loans receivable, net
Deposits
FHLB long-term borrowings
FRB long-term borrowings
Subordinated debt
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Investment in interest-earning time deposits	8,226	9,842
Loans held for sale
Loans receivable, net	414,554	363,527
Deposits	191,811	202,695
FHLB long-term borrowings	28,272	28,284
FRB long-term borrowings	43,518	48,126
Subordinated debt	$ 8,314	$ 8,283

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Note 12 - Operating Segments (Details Textual)	3 Months Ended
	Mar. 31, 2021
Number of Reportable Segments	2

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Note 12 - Operating Segments - Summary of Financial Information for the Reportable Segments (Details) - USD ($)		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Net Interest Income		$ 3,628,000	$ 2,243,000
Provision for Loan Losses		254,000	115,000
Net Interest Income after Provision for Loan Losses		3,374,000	2,128,000
Insurance commissions		107,000	97,000
Income from bank-owned life insurance		19,000	19,000
Net gain on loans held for sale		1,215,000	781,000
Gain on sale of investment securities available for sale		317,000
Gain on the sale of SBA loans		201,000
Total Non-Interest Income		2,766,000	1,307,000
Salaries and employee benefits		3,400,000	1,978,000
Directors’ fees and expenses		68,000	61,000
Occupancy and equipment		377,000	205,000
Data processing		205,000	137,000
Professional fees		163,000	114,000
FDIC deposit insurance assessment		51,000	21,000
Other real estate owned expenses		9,000	14,000
Advertising		105,000	75,000
Amortization of Intangible Assets, Total		12,000	12,000
Other		329,000	210,000
Total Non-Interest Expense		4,719,000	2,827,000
Pretax Segment (Loss) Profit		1,421,000	608,000
Segment Assets		560,990,000	309,446,000	$ 484,075,000
Mortgage Banking and Abstract Fees [Member]
Non-interest revenue		531,000	294,000
Real Estate Sales Commissions [Member]
Non-interest revenue		31,000	33,000
Other Fees and Services Fees [Member]
Non-interest revenue		122,000	83,000
Loan Servicing Fee [Member]
Non-interest revenue		223,000
Quaint Oak Bank [Member]
Net Interest Income	[1]	3,742,000	2,290,000
Provision for Loan Losses	[1]	254,000	115,000
Net Interest Income after Provision for Loan Losses	[1]	3,488,000	2,175,000
Insurance commissions	[1]	107,000	97,000
Income from bank-owned life insurance	[1]	19,000	19,000
Net gain on loans held for sale	[1]	624,000
Gain on sale of investment securities available for sale		317,000
Gain on the sale of SBA loans	[1]	201,000
Total Non-Interest Income	[1]	2,080,000	376,000
Salaries and employee benefits	[1]	2,928,000	1,667,000
Directors’ fees and expenses	[1]	68,000	61,000
Occupancy and equipment	[1]	298,000	135,000
Data processing	[1]	130,000	108,000
Professional fees	[1]	146,000	97,000
FDIC deposit insurance assessment	[1]	51,000	21,000
Other real estate owned expenses	[1]	9,000	14,000
Advertising	[1]	91,000	61,000
Amortization of Intangible Assets, Total	[1]	12,000	12,000
Other	[1]	309,000	196,000
Total Non-Interest Expense	[1]	4,042,000	2,372,000
Pretax Segment (Loss) Profit	[1]	1,526,000	179,000
Segment Assets	[1]	530,047,000	291,392,000
Quaint Oak Bank [Member] | Mortgage Banking and Abstract Fees [Member]
Non-interest revenue	[1]	436,000	144,000
Quaint Oak Bank [Member] | Real Estate Sales Commissions [Member]
Non-interest revenue	[1]	31,000	33,000
Quaint Oak Bank [Member] | Other Fees and Services Fees [Member]
Non-interest revenue	[1]	122,000	83,000
Quaint Oak Bank [Member] | Loan Servicing Fee [Member]
Non-interest revenue		223,000
Quaint Oak Bank, Mortgage [Member]
Net Interest Income		(114,000)	(47,000)
Provision for Loan Losses
Net Interest Income after Provision for Loan Losses		(114,000)	(47,000)
Insurance commissions
Income from bank-owned life insurance
Net gain on loans held for sale		591,000	781,000
Gain on sale of investment securities available for sale
Gain on the sale of SBA loans
Total Non-Interest Income		686,000	931,000
Salaries and employee benefits		472,000	311,000
Directors’ fees and expenses
Occupancy and equipment		79,000	70,000
Data processing		75,000	29,000
Professional fees		17,000	17,000
FDIC deposit insurance assessment
Other real estate owned expenses
Advertising		14,000	14,000
Amortization of Intangible Assets, Total
Other		20,000	14,000
Total Non-Interest Expense		677,000	455,000
Pretax Segment (Loss) Profit		(105,000)	429,000
Segment Assets		30,943,000	18,054,000
Quaint Oak Bank, Mortgage [Member] | Mortgage Banking and Abstract Fees [Member]
Non-interest revenue		95,000	150,000
Quaint Oak Bank, Mortgage [Member] | Real Estate Sales Commissions [Member]
Non-interest revenue
Quaint Oak Bank, Mortgage [Member] | Other Fees and Services Fees [Member]
Non-interest revenue
Quaint Oak Bank, Mortgage [Member] | Loan Servicing Fee [Member]
Non-interest revenue

[1] Includes Quaint Oak Bancorp, Inc. and the Bank's subsidiaries, Quaint Oak Real Estate, Quaint Oak Abstract, Quaint Oak Insurance Agency, QOB Properties, and Oakmont Capital Holdings, LLC.quaiquaint