----

----

| TABLE OF CONTENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Page   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| President’s Letter to Shareholders                                                                                                                                                | 1      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Selected Consolidated Financial and Other Data                                                                                                                                          | 2      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                          | 3      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Report of Independent Registered Public Accounting Firm                                                                                                                                 | 13     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Consolidated Balance Sheets                                                                                                                                                             | 14     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Consolidated Statements of Income                                                                                                                                                       | 15     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Consolidated Statements of Stockholders’ Equity                                                                                                                                   | 16     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Consolidated Statements of Cash Flows                                                                                                                                                   | 17     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Notes to Consolidated Financial Statements                                                                                                                                              | 18     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Directors and Executive Officers                                                                                                                                                        | 42     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Banking Locations                                                                                                                                                                       | 42     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Transfer Agent/Registrar                                                                                                                                                                | 42     |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|   | /s/ Robert T. Strong                                  |
|--------|-------------------------------------------------------|
|   | Robert T. StrongPresident and Chief Executive Officer |

| Quaint Oak Family of Companies                                                                                                                                                    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Quaint Oak Bancorp, Inc.                                                                                                                                                          |
| Quaint Oak Bank                                                                                                                                                                   |
| Quaint Oak Abstract, LLC     |     Quaint Oak Mortgage, LLC     |     Quaint Oak Real Estate, LLC |
| Serving the Delaware Valley and the Lehigh Valley Markets                                                                                                                         |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | At or For the Years Ended December 31, |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2009                                   |      |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   |      |   |   |   |
| (Dollars in Thousands, except per share data)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   |      |
| Selected Financial and Other Data:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |      |   |   |   |
| Total assets                                                                                                                |   | $                                      | 93,937    |   |   | $ | 88,381 |   |
| Cash and cash equivalents                                                                                                   |   |                                   | 5,420     |   |   |   | 1,035 |   |
| Investment in interest-earning time deposits                                                                                |   |                                   | 3,153     |   |   |   | 3,735 |   |
| Investment securities available for sale (cost-2009 $1,001)                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                   | 1,002     |   |   |   | — |   |
| Investment securities held to maturity (fair value-2008 $2,263)                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                   | —   |   |   |   | 2,250 |   |
| Mortgage-backed securities held to maturity (fair value-2009 $10,132; 2008 $8,142)                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   | 7,731     |   |   |   | 9,777 |   |
| Loans receivable, net                                                                                                       |   |                                   | 72,728    |   |   |   | 69,310 |   |
| Federal Home Loan Bank stock, at cost                                                                                       |   |                                   | 797       |   |   |   | 797 |   |
| Bank premises and equipment, net                                                                                            |   |                                   | 1,092     |   |   |   | 67 |   |
| Deposits                                                                                                                    |   |                                   | 68,252    |   |   |   | 58,981 |   |
| Federal Home Loan Bank advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                   | 6,850     |   |   |   | 11,150 |   |
| Stockholders’ Equity                                                                                                  |   |                                   | 17,386    |   |   |   | 17,273 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   |      |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   |      |   |   |   |   |   |
| Selected Operating Data:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                   |      |   |   |   |   |   |
| Total interest income                                                                                                            |   | $                                      | 5,414     |   |   | $ | 5,015 |   |
| Total interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                   | 2,436     |   |   |   | 2,464 |   |
| Net interest income                                                                                                         |   |                                   | 2,978     |   |   |   | 2,551 |   |
| Provision for loan losses                                                                                                   |   |                                   |  165 |   |   |   |  142 |   |
|      Net interest income after provision for loan losses                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                   | 2,813     |   |   |   | 2,409 |   |
| Total non-interest income                                                                                                   |   |                                   | 280       |   |   |   | 29 |   |
| Total non-interest expense                                                                                                  |   |                                   | 2,292     |   |   |   | 1,584 |   |
| Income before income taxes                                                                                                  |   |                                   | 801       |   |   |   | 854 |   |
| Income taxes                                                                                                                |   |                                   | 314       |   |   |   | 343 |   |
| Net income                                                                                                                  |   | $                                      |  487 |   |   | $ |  511 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   |      |   |   |   |   |   |
| Selected Operating Ratios(1):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   |      |   |   |   |   |   |
| Average yield on interest-earning assets                                                                                    |   |                                   | 6.08      | % |   |   | 6.38 | % |
| Average rate on interest-bearing liabilities                                                                                |   |                                   | 3.26      |   |   |   | 3.98 |   |
| Average interest rate spread(2)                                                                                             |   |                                   | 2.82      |   |   |   | 2.40 |   |
| Net interest margin(2)                                                                                                      |   |                                   | 3.34      |   |   |   | 3.25 |   |
| Average interest-earning assets to average interest-bearing liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   | 119.28    |   |   |   | 127.01 |   |
| Net interest income after provision for loan losses to non-interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                   | 122.62    |   |   |   | 152.08 |   |
| Total non-interest expense to average assets                                                                                |   |                                   | 2.48      |   |   |   | 1.98 |   |
| Efficiency ratio(3)                                                                                                         |   |                                   | 70.45     |   |   |   | 61.40 |   |
| Return on average assets                                                                                                    |   |                                   | 0.52      |   |   |   | 0.64 |   |
| Return on average equity                                                                                                    |   |                                   | 2.81      |   |   |   | 2.92 |   |
| Average equity to average assets                                                                                            |   |                                   | 18.67     |   |   |   | 21.84 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   |      |   |   |   |   |   |
| Asset Quality Ratios(4):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                   |      |   |   |   |   |   |
| Non-performing loans as a percent of total loans receivable, net(5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                   | 1.27      | % |   |   | 0.63 | % |
| Non-performing assets as a percent of total assets(5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                   | 1.96      |   |   |   | 1.32 |   |
| Non-performing assets and troubled debt restructurings as a percent of total assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   | 3.58      |   |   |   | 2.37 |   |
| Allowance for loan losses as a percent of non-performing loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                   | 90.27     |   |   |   | 156.95 |   |
| Allowance for loan losses as a percent of total loans receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                   | 1.14      |   |   |   | 0.98 |   |
| Net charge-offs to average loans receivable                                                                                 |   |                                   | 0.03      |   |   |   | 0.19 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   |      |   |   |   |   |   |
| Capital Ratios(4):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |      |   |   |   |   |   |
| Tier 1 leverage ratio                                                                                                       |   |                                   | 14.51     | % |   |   | 15.44 | % |
| Tier 1 risk-based capital ratio                                                                                             |   |                                   | 21.42     |   |   |   | 20.04 |   |
| Total risk-based capital ratio                                                                                              |   |                                   | 22.69     |   |   |   | 21.14 |   |

----

| (1) | With the exception of end of period ratios, all ratios are based on average daily balances during the indicated periods. |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (2) | Average interest rate spread represents the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities, and net interest margin represents net interest income as a percentage of average interest-earning assets. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The efficiency ratio represents the ratio of non-interest expense divided by the sum of net interest income and non-interest income. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Asset quality ratios and capital ratios are end of period ratios, except for net charge-offs to average loans receivable. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (5) | Non-performing assets consist of non-performing loans and other real estate owned at December 31, 2009 and 2008.  Non-performing loans consist of non-accruing loans plus accruing loans 90 days or more past due. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                                         |   |  Year  Ended December 31, |        |
|------------------------------------------------------------------------------|--------|------------------------------------------|-------------|
|                                                                         |   |  2009                               |        |   | 2008 |   |
|                                                                         |   |  AverageBalance                     |        |   | Interest |   |   | AverageYield/Rate |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate |   |
| Interest-earning assets:                                                     |   | (Dollars in thousands)                   |        |
| Short-term investments and investment securities                             |   | $                                        | 8,706       |   |   | $ | 139 |   |   |   | 1.60 | % |   | $ | 8,966 |   |   | $ | 355 |   |   |   | 3.96 | % |
| Mortgage-backed securities                                                   |   |                                     | 8,846       |   |   |   | 425 |   |   |   | 4.80 |   |   |   | 5,183 |   |   |   | 248 |   |   |   | 4.78 |   |
| Loans receivable, net (1)                                                    |   |                                     | 71,549      |   |   |   | 4,850 |   |   |   | 6.78 |   |   |   | 63,931 |   |   |   | 4,400 |   |   |   | 6.88 |   |
| Other interest-earning assets                                                |   |                                     | -           |   |   |   | - |   |   |   | - |   |   |   | 475 |   |   |   | 12 |   |   |   | 2.53 |   |
| Total interest-earning assets                                                |   |                                     | 89,101      |   |   |   | 5,414 |   |   |   | 6.08 | % |   |   | 78,555 |   |   |   | 5,015 |   |   |   | 6.38 | % |
| Non-interest-earning assets                                                  |   |                                     |  3,721 |   |   |   |   |   |   |   |   |   |   |   |  1,511 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                 |   | $                                        | 92,822      |   |   |   |   |   |   |   |   |   |   | $ | 80,066 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                |   |                                     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Passbook accounts                                                            |   | $                                        | 3,320       |   |   |   | 30 |   |   |   | 0.90 | % |   | $ | 3,460 |   |   |   | 45 |   |   |   | 1.30 | % |
| Statement savings accounts                                                   |   |                                     | 5,713       |   |   |   | 86 |   |   |   | 1.51 |   |   |   | 5,366 |   |   |   | 129 |   |   |   | 2.40 |   |
| eSavings accounts                                                            |   |                                     | 1,305       |   |   |   | 23 |   |   |   | 1.76 |   |   |   | 171 |   |   |   | 5 |   |   |   | 2.92 |   |
| Certificate of deposit accounts                                              |   |                                     | 56,297      |   |   |   | 1,994 |   |   |   | 3.54 |   |   |   | 47,929 |   |   |   | 2,113 |   |   |   | 4.41 |   |
| Total deposits                                                               |   |                                     | 66,635      |   |   |   | 2,133 |   |   |   | 3.20 |   |   |   | 56,926 |   |   |   | 2,292 |   |   |   | 4.03 |   |
| FHLB advances                                                                |   |                                     | 7,838       |   |   |   | 292 |   |   |   | 3.73 |   |   |   | 4,925 |   |   |   | 172 |   |   |   | 3.49 |   |
| Other borrowings                                                             |   |                                     | 226         |   |   |   | 11 |   |   |   | 4.87 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total interest-bearing liabilities                                           |   |                                     | 74,699      |   |   |   | 2,436 |   |   |   | 3.26 | % |   |   | 61,851 |   |   |   | 2,464 |   |   |   | 3.98 | % |
| Non-interest-bearing liabilities                                             |   |                                     | 792         |   |   |   |   |   |   |   |   |   |   |   | 727 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                            |   |                                     | 75,491      |   |   |   |   |   |   |   |   |   |   |   | 62,578 |   |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                   |   |                                     | 17,331      |   |   |   |   |   |   |   |   |   |   |   | 17,488 |   |   |   |   |   |   |   |   |   |
| Total liabilities and Stockholders’ Equity                             |   | $                                        | 92,822      |   |   |   |   |   |   |   |   |   |   | $ | 80,066 |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                                  |   | $                                        | 14,402      |   |   |   |   |   |   |   |   |   |   | $ | 16,704 |   |   |   |   |   |   |   |   |   |
| Net interest income; average interest rate spread                            |   |                                     |        |   |   | $ | 2,978 |   |   |   | 2.82 | % |   |   |   |   |   | $ | 2,551 |   |   |   | 2.40 | % |
| Net interest margin (2)                                                      |   |                                     |        |   |   |   |   |   |   |   | 3.34 | % |   |   |   |   |   |   |   |   |   |   | 3.25 | % |
| Average interest-earning assets to average interest-bearing liabilities |   |                                     |        |   |   |   |   |   |   |   | 119.28 | % |   |   |   |   |   |   |   |   |   |   | 127.01 | % |

----

| (1) | Includes non-accrual loans during the respective periods.  Calculated net of deferred fees and discounts, loans in process and allowance for loan losses. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Equals net interest income divided by average interest-earning assets. |
|-----|------------------------------------------------------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                        |   |  2009 vs. 2008        |   |   | 2008 vs. 2007 |   |
|-------------------------------------------------------------|--------|----------------------------|--------|--------|---------------|--------|
|                                                        |   | Increase (Decrease) Due to |   |   |          |   |   | Increase (Decrease) Due to |   |   |   |   |
|                                                        |   |   Rate                |   |   | Volume        |   |   | Rate/Volume |   |   | TotalIncrease(Decrease) |   |   | Rate |   |   | Volume |   |   | Rate/Volume |   |   | TotalIncrease(Decrease) |   |
|                                                        |   | (In Thousands)             |   |
| Interest income:                                            |   |                       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term investments and  investment securities |   | $                          | (212   | )      |          | $      | (10 | ) |   | $ | 6 |   |   | $ | (216 | ) |   | $ | (127 | ) |   | $ | 11 |   |   | $ | (3 | ) |   | $ | (119 | ) |
| Mortgage-backed securities                                  |   |                       | 1      |   |          |   | 175 |   |   |   | 1 |   |   |   | 177 |   |   |   | - |   |   |   | 243 |   |   |   | - |   |   |   | 243 |   |
| Loans receivable  (1)                             |   |                       | (66    | )      |          |   | 524 |   |   |   | (8 | ) |   |   | 450 |   |   |   | (72 | ) |   |   | 556 |   |   |   | (10 | ) |   |   | 474 |   |
| Other interest-earning assets                               |   |                       | (12    | )      |          |   | (12 | ) |   |   | 12 |   |   |   | (12 | ) |   |   | (9 | ) |   |   | 14 |   |   |   | (8 | ) |   |   |  (3 | ) |
| Total interest-earning assets                               |   |                       | (289   | )      |          |   | 677 |   |   |   | 11 |   |   |   | 399 |   |   |   | (208 | ) |   |   | 824 |   |   |   | (21 | ) |   |   | 595 |   |
| Interest expense:                                           |   |                       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Passbook accounts                                           |   |                       | (13    | )      |          |   | (2 | ) |   |   | - |   |   |   | (15 | ) |   |   | (4 | ) |   |   | (11 | ) |   |   | 1 |   |   |   | (14 | ) |
| Statement savings accounts                                  |   |                       | (48    | )      |          |   | 8 |   |   |   | (3 | ) |   |   | (43 | ) |   |   | (24 | ) |   |   | (23 | ) |   |   | 3 |   |   |   | (44 | ) |
| eSavings accounts                                           |   |                       | (2     | )      |          |   | 35 |   |   |   | (16 | ) |   |   | 17 |   |   |   | 7 |   |   |   | - |   |   |   | (2 | ) |   |   | 5 |   |
| Certificate accounts                                        |   |                       | (415   | )      |          |   | 369 |   |   |   | (72 | ) |   |   | (118 | ) |   |   | (181 | ) |   |   | 181 |   |   |   | (15 | ) |   |   | (15 | ) |
| Total deposits                                              |   |                       | (478   | )      |          |   | 410 |   |   |   | (91 | ) |   |   | (159 | ) |   |   | (202 | ) |   |   | 147 |   |   |   | (13 | ) |   |   | (68 | ) |
| FHLB advances                                               |   |                       | 11     |   |          |   | 102 |   |   |   | 7 |   |   |   | 120 |   |   |   | - |   |   |   | 172 |   |   |   | - |   |   |   | 172 |   |
| Other borrowings                                            |   |                       | -      |   |          |   |  - |   |   |   | 11 |   |   |   | 11 |   |   |   | - |   |   |   |  - |   |   |   | - |   |   |   |  - |   |
| Total interest-bearing liabilities                          |   |                       | (467   | )      |          |   | 512 |   |   |   | (73 | ) |   |   | (28 | ) |   |   | (202 | ) |   |   | 319 |   |   |   | (13 | ) |   |   | 104 |   |
| Increase (decrease) in net interest income                  |   | $                          | 178    |   |          | $      | 165 |   |   | $ | 84 |   |   | $ | 427 |   |   | $ | (6 | ) |   | $ | 505 |   |   | $ | (8 | ) |   | $ | 491 |   |

----

| (1) | Includes non-accrual loans during the respective periods.  Calculated net of deferred fees and discounts, loans in process and allowance for loan losses. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                                                                                               |   | 3 Monthsor Less |    |   | More than3 Monthsto 1 Year |   |    | More than1 Yearto 3 Years |   |   | More than3 Yearsto 5 Years |   |   | More than5 Years |    |   | TotalAmount |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|---------|--------|----------------------------|--------|---------|---------------------------|--------|--------|----------------------------|--------|--------|------------------|---------|--------|-------------|--------|
|                                                                                                                               |   |            |    |   |                       |   |    |                      |   |   |                       |   |   |             |    |   |        |   |
| Interest-earning assets (1):                                                                                                       |   |            |    |   |                       |   |    |                      |   |   |                       |   |   |             |    |   |        |   |
| Loans receivable (2)                                                                                                               |   | $               | 13,814  |   |                       | $      | 22,305  |                      |   | $      | 12,341                     |   |   | $                | 11,911  |   |        | $      | 13,163 |   |   | $ | 73,534 |   |
| Short-term investments and investment securities                                                                                   |   |            | 5,336   |   |                       |   | 2,499   |                      |   |   | 654                        |   |   |             | — |   |        |   | 504 |   |   |   | 8,993 |   |
|     Mortgage-backed securities                                                                                 |   |            | 741     |   |                       |   | 2,079   |                      |   |   | 850                        |   |   |             | 972     |   |        |   | 3,089 |   |   |   | 7,731 |   |
| Investment in Federal Home Loan Bank stock                                                                                         |   |            | — |   |                       |   | — |                      |   |   | —                    |   |   |             | — |   |        |   | 797 |   |   |   | 797 |   |
| Total interest-earning assets                                                                                                      |   | $               | 19,891  |   |                       | $      | 26,883  |                      |   | $      | 13,845                     |   |   | $                | 12,883  |   |        | $      | 17,553 |   |   | $ | 91,055 |   |
|                                                                                                                               |   |            |    |   |                       |   |    |                      |   |   |                       |   |   |             |    |   |        |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                                      |   |            |    |   |                       |   |    |                      |   |   |                       |   |   |             |    |   |        |   |   |   |   |   |   |   |
| Passbook accounts                                                                                                                  |   | $               | 328     |   |                       | $      | 328     |                      |   | $      | 1,966                      |   |   | $                | 327     |   |        | $      | 328 |   |   | $ | 3,277 |   |
| Statement savings accounts                                                                                                         |   |            | 1,627   |   |                       |   | 1,627   |                      |   |   | 1,627                      |   |   |             | 814     |   |        |   | 813 |   |   |   | 6,508 |   |
| eSavings accounts                                                                                                                  |   |            | 495     |   |                       |   | 494     |                      |   |   | 495                        |   |   |             | 247     |   |        |   | 247 |   |   |   | 1,978 |   |
| Escrow accounts                                                                                                                    |   |            | 254     |   |                       |   | 509     |                      |   |   | —                    |   |   |             | — |   |        |   | — |   |   |   | 763 |   |
| Certificate accounts                                                                                                               |   |            | 13,464  |   |                       |   | 27,731  |                      |   |   | 9,505                      |   |   |             | 5,789   |   |        |   | — |   |   |   | 56,489 |   |
|      FHLB advances                                                                                        |   |            | — |   |                       |   | 1,250   |                      |   |   | 3,600                      |   |   |             | 2,000   |   |        |   | — |   |   |   | 6,850 |   |
|      Other borrowings                                                                                     |   |            | — |   |                       |   | — |                      |   |   | —                    |   |   |             | — |   |        |   | 442 |   |   |   | 442 |   |
| Total interest-bearing liabilities                                                                                                 |   | $               | 16,168  |   |                       | $      | 31,939  |                      |   | $      | 17,193                     |   |   | $                | 9,177   |   |        | $      | 1,830 |   |   | $ | 76,307 |   |
|                                                                                                                               |   |            |    |   |                       |   |    |                      |   |   |                       |   |   |             |    |   |        |   |   |   |   |   |   |   |
| Interest-earning assets less interest-bearing liabilities                                                                          |   | $               | 3,723   |   |                       | $      | (5,056  | )                         |   | $      | (3,348                     | )      |   | $                | 3,706   |   |        | $      | 15,723 |   |   |   |   |   |
|                                                                                                                               |   |            |    |   |                       |   |    |                      |   |   |                       |   |   |             |    |   |        |   |   |   |   |   |   |   |
| Cumulative interest-rate sensitivity gap (3)                                                                                       |   | $               | 3,723   |   |                       | $      | (1,333  | )                         |   | $      | (4,681                     | )      |   | $                | (975    | )      |        | $      | 14,748 |   |   |   |   |   |
|                                                                                                                               |   |            |    |   |                       |   |    |                      |   |   |                       |   |   |             |    |   |        |   |   |   |   |   |   |   |
| Cumulative interest-rate gap as a percentage of total assets at December 31, 2009                                             |   |            | 4.0     | %      |                       |   | (1.4    | )%                        |   |   | (5.0                       | )%     |   |             | (1.0    | )%     |        |   | 15.7 | % |   |   |   |   |
|                                                                                                                               |   |            |    |   |                       |   |    |                      |   |   |                       |   |   |             |    |   |        |   |   |   |   |   |   |   |
| Cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities  at December 31, 2009 |   |            | 123.0   | %      |                       |   | 97.2    | %                         |   |   | 92.8                       | %      |   |             | 98.7    | %      |        |   | 119.3 | % |   |   |   |   |

----

| (1) | Interest-earning assets are included in the period in which the balances are expected to be redeployed and/or repriced as a result of anticipated prepayments, scheduled rate adjustments and contractual maturities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | For purposes of the gap analysis, loans receivable includes non-performing loans gross of the allowance for loan losses, undisbursed loan funds, unamortized discounts and deferred loan fees. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Interest-rate sensitivity gap represents the difference between net interest-earning assets and interest-bearing liabilities. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                          |   |           |   |   | Payments Due By Period |   |
|-------------------------------|--------|----------------|--------|--------|------------------------|--------|
|                          |   | Total          |   |   | To1 Year               |   |   | 1-3Years |   |   | 4-5Years |   |   | After 5Years |   |
|                          |   | (In Thousands) |   |
| Certificates of deposit       |   | $              | 56,489 |   |                   | $      | 41,195 |   |   | $ | 9,505 |   |   | $ | 5,789 |   |   | $ | — |   |
| FHLB advances                 |   |           | 6,850  |   |                   |   | 1,250 |   |   |   | 3,600 |   |   |   | 2,000 |   |   |   | — |   |
| Other Borrowings              |   |           | 442    |   |                   |   | 20 |   |   |   | 43 |   |   |   | 379 |   |   |   | — |   |
| Operating lease obligations   |   |           | 33     |   |                   |   | 33 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total contractual obligations |   | $              | 63,814 |   |                   | $      | 42,498 |   |   | $ | 13,148 |   |   | $ | 8,168 |   |   | $ | — |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                                                                                                                                                 |   | At December 31,2009               |   |   | At December 31,2008 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                 |   | (In thousands, except share data) |   |
| ASSETS                                                                                                                                                                               |   |                              |   |   |                |   |
|                                                                                                                                                                                 |   |                              |   |   |                |   |
| Due from banks, non-interest-bearing                                                                                                                                                 |   | $                                 | 582    |   |                | $      | 490 |   |
| Due from banks, interest-bearing                                                                                                                                                     |   |                              | 4,838  |   |                |   | 545 |   |
| Cash and cash equivalents                                                                                                                                                            |   |                              | 5,420  |   |                |   | 1,035 |   |
| Investment in interest-earning time deposits                                                                                                                                         |   |                              | 3,153  |   |                |   | 3,735 |   |
| Investment securities available for sale (cost-2009 $1,001)                                                                                                                          |   |                              | 1,002  |   |                |   | - |   |
| Investment securities held to maturity (estimated fair value-2008 $2,263)                                                                                                            |   |                              | -      |   |                |   | 2,250 |   |
| Mortgage-backed securities held to maturity (estimated fair value-2009 $8,142; 2008 $10,132)                                                                                         |   |                              | 7,731  |   |                |   | 9,777 |   |
| Loans receivable, net of allowance for loan losses 2009 $835; 2008 $689                                                                                                              |   |                              | 72,728 |   |                |   | 69,310 |   |
| Accrued interest receivable                                                                                                                                                          |   |                              | 397    |   |                |   | 355 |   |
| Investment in Federal Home Loan Bank stock, at cost                                                                                                                                  |   |                              | 797    |   |                |   | 797 |   |
| Premises and equipment, net                                                                                                                                                          |   |                              | 1,092  |   |                |   | 67 |   |
| Other real estate owned, net                                                                                                                                                         |   |                              | 913    |   |                |   | 732 |   |
| Prepaid expenses and other assets                                                                                                                                                    |   |                              | 704    |   |                |   | 323 |   |
|                                                                                                                                                                                 |   |                              |   |   |                |   |   |   |
| Total Assets                                                                                                                                                                         |   | $                                 | 93,937 |   |                | $      | 88,381 |   |
|                                                                                                                                                                                 |   |                              |   |   |                |   |   |   |
|                                                                                                                                                                                 |   |                              |   |   |                |   |   |   |
|                                                                                                                                                                                 |   |                              |   |   |                |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                           |   |                              |   |   |                |   |   |   |
|                                                                                                                                                                                 |   |                              |   |   |                |   |   |   |
| LIABILITIES                                                                                                                                                                          |   |                              |   |   |                |   |   |   |
| Deposits, interest-bearing                                                                                                                                                           |   | $                                 | 68,252 |   |                | $      | 58,981 |   |
| Federal Home Loan Bank advances                                                                                                                                                      |   |                              | 6,850  |   |                |   | 11,150 |   |
| Other borrowings                                                                                                                                                                     |   |                              | 442    |   |                |   | - |   |
| Accrued interest payable                                                                                                                                                             |   |                              | 117    |   |                |   | 138 |   |
| Advances from borrowers for taxes and insurance                                                                                                                                      |   |                              | 763    |   |                |   | 729 |   |
| Accrued expenses and other liabilities                                                                                                                                               |   |                              | 127    |   |                |   | 110 |   |
| Total Liabilities                                                                                                                                                                    |   |                              | 76,551 |   |                |   | 71,108 |   |
|                                                                                                                                                                                 |   |                              |   |   |                |   |   |   |
| 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; 1,388,625 issued and 1,299,712 and 1,352,021 outstanding at December 31, 2009 and December 31, 2008, respectively |   |                              | 14     |   |                |   | 14 |   |
| Additional paid-in capital                                                                                                                                                           |   |                              | 13,442 |   |                |   | 13,409 |   |
| Treasury stock, at cost, 88,913 shares and 36,604 shares at                                                                                                                          |   |                              | (735   | )      |                |   | (312 | ) |
| December 31, 2009 and 2008, respectively                                                                                                                                             |   |                              |   |   |                |   |   |   |
| Unallocated common stock held by:                                                                                                                                                    |   |                              |   |   |                |   |   |   |
| Employee Stock Ownership Plan (ESOP)                                                                                                                                                 |   |                              | (883   | )      |                |   | (952 | ) |
| Recognition & Retention Plan Trust (RRP)                                                                                                                                         |   |                              | (440   | )      |                |   | (520 | ) |
| Accumulated other comprehensive income                                                                                                                                               |   |                              | 1      |   |                |   | - |   |
| Retained earnings                                                                                                                                                                    |   |                              | 5,987  |   |                |   | 5,634 |   |
| Total Stockholders’ Equity                                                                                                                                                     |   |                              | 17,386 |   |                |   | 17,273 |   |
|                                                                                                                                                                                 |   |                              |   |   |                |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                                     |   | $                                 | 93,937 |   |                | $      | 88,381 |   |

| See accompanying notes to consolidated financial statements. |
|--------------------------------------------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                 |   |                              |      |   |   |   |
|------------------------------------------------------|--------|-----------------------------------|-----------|--------|--------|--------|
|                                                 |   | Years Ended December 31,          |      |
|                                                 |   | 2009                              |      |   | 2008   |   |
| Interest Income                                      |   | (In thousands, except share data) |      |
| Loans receivable, including fees                     |   | $                                 | 4,850     |   |   | $      | 4,400 |   |
| Short-term investments and investment securities     |   |                              | 564       |   |   |   | 603 |   |
| Dividends                                            |   |                              | -         |   |   |   | 12 |   |
| Total Interest Income                                |   |                              | 5,414     |   |   |   | 5,015 |   |
|                                                 |   |                              |      |   |   |   |   |   |
| Interest Expense                                     |   |                              |      |   |   |   |   |   |
| Deposits                                             |   |                              | 2,133     |   |   |   | 2,292 |   |
| Federal Home Loan Bank advances and other borrowings |   |                              | 303       |   |   |   | 172 |   |
| Total Interest Expense                               |   |                              | 2,436     |   |   |   | 2,464 |   |
|                                                 |   |                              |      |   |   |   |   |   |
| Net Interest Income                                  |   |                              | 2,978     |   |   |   | 2,551 |   |
|                                                 |   |                              |      |   |   |   |   |   |
| Provision for Loan Losses                            |   |                              | 165       |   |   |   | 142 |   |
|                                                 |   |                              |      |   |   |   |   |   |
| Net Interest Income after Provision for Loan Losses  |   |                              | 2,813     |   |   |   | 2,409 |   |
|                                                 |   |                              |      |   |   |   |   |   |
| Non-Interest Income                                  |   |                              |      |   |   |   |   |   |
| Mortgage banking fees                                |   |                              | 169       |   |   |   | - |   |
| Other fees and services charges                      |   |                              | 64        |   |   |   | 51 |   |
| Investment securities losses                         |   |                              | -         |   |   |   | (22 | ) |
| Other                                                |   |                              | 47        |   |   |   | - |   |
| Total Non-Interest Income, net                       |   |                              | 280       |   |   |   | 29 |   |
|                                                 |   |                              |      |   |   |   |   |   |
| Non-Interest Expense                                 |   |                              |      |   |   |   |   |   |
| Salaries and employee benefits                       |   |                              | 1,101     |   |   |   | 821 |   |
| Directors’ fees and expenses                   |   |                              | 247       |   |   |   | 241 |   |
| Occupancy and equipment                              |   |                              | 121       |   |   |   | 94 |   |
| Professional fees                                    |   |                              | 337       |   |   |   | 235 |   |
| FDIC deposit insurance assessment                    |   |                              | 187       |   |   |   | 68 |   |
| Other real estate owned expenses                     |   |                              | 147       |   |   |   | - |   |
| Other                                                |   |                              | 152       |   |   |   | 125 |   |
| Total Other Expenses                                 |   |                              | 2,292     |   |   |   | 1,584 |   |
|                                                 |   |                              |      |   |   |   |   |   |
| Income before Income Taxes                           |   |                              | 801       |   |   |   | 854 |   |
|                                                 |   |                              |      |   |   |   |   |   |
| Income Taxes                                         |   |                              | 314       |   |   |   | 343 |   |
|                                                 |   |                              |      |   |   |   |   |   |
| Net Income                                           |   | $                                 | 487       |   |   | $      | 511 |   |
|                                                 |   |                              |      |   |   |   |   |   |
| Basic earnings per share – basic               |   | $                                 | 0.42      |   |   | $      | 0.41 |   |
| Average shares outstanding - basic                   |   |                              | 1,168,084 |   |   |   | 1,243,912 |   |
| Basic earnings per share - diluted                   |   | $                                 | 0.42      |   |   | $      | 0.41 |   |
| Average shares outstanding - diluted                 |   |                              | 1,168,532 |   |   |   | 1,245,959 |   |

| See accompanying notes to consolidated financial statements. |
|--------------------------------------------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                                            |                        |         |      |   |   |   |                     |   | UnallocatedCommonStock Held by BenefitPlans |           |      |   |                                        |   |   |   |              |   |     |
|---------------------------------------------------------------------------------|-----------------------------|--------------|-----------|--------|--------|--------|--------------------------|--------|--------------------------------------------------|----------------|-----------|--------|---------------------------------------------|--------|--------|--------|-------------------|--------|----------|
|   (In thousands, except share data)                                   |                        | Common Stock |      |   |   |   |                     |   |                                             |           |      |   |  Accumulated Other ComprehensiveIncome |   |   |   |              |   |     |   |
|                                                                            | Number of SharesOutstanding |         |      | Amount |   |   | AdditionalPaid-inCapital |   |                                             | Treasury Stock |      |   |                                        |   |   |   | Retained Earnings |   |     | Total Stockholders’Equity |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |
| BALANCE – DECEMBER 31, 2007                                               |                        |         | 1,388,625 |   |   | $      | 14                       |   |                                             | $              | 13,337    |   |                                        | $      | -      |   |              | $      | (1,021   | ) |   | $ | - |   |   | $ | 5,227 |   |   | $ | 17,557 |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock allocated by ESOP                                                  |                        |         |      |   |   |   |                     |   |                                             |           | (3        | )      |                                        |   |   |   |              |   |  69 |   |   |   |   |   |   |   |   |   |   |   |  66 |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury stock purchased                                                        |                        |         | (36,604   | )      |   |   |                     |   |                                             |           |      |   |                                        |   | (312   | )      |              |   |     |   |   |   |   |   |   |   |   |   |   |   | (312 | ) |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock acquired for Recognition and Retention   Plan Trust |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   | (520     | ) |   |   |   |   |   |   |   |   |   |   | (520 | ) |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock based compensation expense                                                |                        |         |      |   |   |   |                     |   |                                             |           |  75  |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |  75 |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared ($0.075 per share)                                      |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   | (104 | ) |   |   | (104 | ) |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                      |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   | 511 |   |   |   |  511 |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE – DECEMBER 31, 2008                                               |                        |         | 1,352,021 |   |   | $      | 14                       |   |                                             | $              | 13,409    |   |                                        | $      | (312   | )      |              | $      | (1,472   | ) |   | $ | - |   |   | $ | 5,634 |   |   | $ | 17,273 |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock allocated by ESOP                                                  |                        |         |      |   |   |   |                     |   |                                             |           | (8        | )      |                                        |   |   |   |              |   | 69       |   |   |   |   |   |   |   |   |   |   |   |  61 |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury stock purchased                                                        |                        |         | (52,309   | )      |   |   |                     |   |                                             |           |      |   |                                        |   | (423   | )      |              |   |     |   |   |   |   |   |   |   |   |   |   |   | (423 | ) |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock based compensation expense                                                |                        |         |      |   |   |   |                     |   |                                             |           |  119 |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |  119 |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Release of 8,588 Vested RRP Shares                                              |                        |         |      |   |   |   |                     |   |                                             |           | (78       | )      |                                        |   |   |   |              |   | 80       |   |   |   |   |   |   |   | (2 | ) |   |   | - |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared ($0.10 per share)                                       |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   | (132 | ) |   |   | (132 | ) |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                      |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   | 487 |   |   |   | 487 |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain on securities AFS, net of deferred taxes                        |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |  1 |   |   |   |   |   |   |   |   1 |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   | $ | 488 |   |
| Comprehensive income                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |                        |         |      |   |   |   |                     |   |                                             |           |      |   |                                        |   |   |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE – DECEMBER 31, 2009                                               |                        |         | 1,299,712 |   |   | $      | 14                       |   |                                             | $              | 13,442    |   |                                        | $      | (735   | )      |              | $      | (1,323   | ) |   | $ | 1 |   |   | $ | 5,987 |   |   | $ | 17,386 |   |

| See accompanying notes to consolidated financial statements. |
|--------------------------------------------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                                              |   |                    |   |   |   |   |
|-----------------------------------------------------------------------------------|--------|-------------------------|--------|--------|--------|--------|
|                                                                              |   | Years EndedDecember 31, |   |
|                                                                              |   | 2009                    |   |   | 2008   |   |
| Cash Flows from Operating Activities                                              |   | (In Thousands)          |   |
| Net income                                                                        |   | $                       | 487    |   |   | $      | 511 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                    |   |   |   |   |   |   |
| Provision for loan losses                                                         |   |                    | 165    |   |   |   | 142 |   |
| Provision for losses on other real estate owned                                   |   |                    | 27     |   |   |   | - |   |
| Depreciation expense                                                              |   |                    | 41     |   |   |   | 26 |   |
| Net accretion of securities discounts                                             |   |                    | (7     | )      |   |   | (2 | ) |
| Amortization of deferred loan fees and costs                                      |   |                    | (15    | )      |   |   | (12 | ) |
| Deferred income taxes                                                             |   |                    | (76    | )      |   |   | (24 | ) |
| Stock-based compensation expense                                                  |   |                    | 180    |   |   |   | 141 |   |
| Loss on redemption of investment securities                                       |   |                    | -      |   |   |   | 22 |   |
| Gain on the sale of other real estate owned                                       |   |                    | -      |   |   |   | (2 | ) |
| Changes in assets and liabilities which provided (used) cash:                     |   |                    |   |   |   |   |   |   |
| Accrued interest receivable                                                       |   |                    | (42    | )      |   |   | (61 | ) |
| Prepaid expenses and other assets                                                 |   |                    | (305   | )      |   |   | (75 | ) |
| Accrued interest payable                                                          |   |                    | (21    | )      |   |   | 37 |   |
| Accrued expenses and other liabilities                                            |   |                    | 17     |   |   |   | 56 |   |
| Net Cash Provided by Operating Activities                                         |   |                    | 451    |   |   |   | 759 |   |
| Cash Flows from Investing Activities                                              |   |                    |   |   |   |   |   |   |
| Net (increase) decrease in investment in interest-earning time deposits           |   |                    | 582    |   |   |   | (1,900 | ) |
| Purchase of investment securities available for sale                              |   |                    | (1,001 | )      |   |   | (509 | ) |
| Purchase of investment securities held to maturity                                |   |                    | -      |   |   |   | (1,000 | ) |
| Purchase of mortgage-backed securities held to maturity                           |   |                    | -      |   |   |   | (10,333 | ) |
| Proceeds from the sale or redemption of investment securities available for sale  |   |                    | -      |   |   |   | 2,488 |   |
| Proceeds from calls of investment securities held to maturity                     |   |                    | 2,250  |   |   |   | 1,000 |   |
| Principal payments on mortgage-backed securities                                  |   |                    | 2,053  |   |   |   | 561 |   |
| Net increase in loans receivable                                                  |   |                    | (3,776 | )      |   |   | (8,597 | ) |
| Net decrease in Federal Home Loan Bank stock                                      |   |                    | -      |   |   |   | (560 | ) |
| Proceeds from the sale of other real estate owned                                 |   |                    | -      |   |   |   | 110 |   |
| Purchase of property and equipment                                                |   |                    | (1,066 | )      |   |   | (34 | ) |
| Net Cash Used in Investing Activities                                             |   |                    | (958   | )      |   |   | (18,774 | ) |
| Cash Flows from Financing Activities                                              |   |                    |   |   |   |   |   |   |
| Net increase in deposits                                                          |   |                    | 9,271  |   |   |   | 3,720 |   |
| Increase (decrease) in Federal Home Loan Bank advances                            |   |                    | (4,300 | )      |   |   | 11,150 |   |
| Proceeds from other borrowings                                                    |   |                    | 450    |   |   |   | - |   |
| Repayment of other borrowings                                                     |   |                    | (8     | )      |   |   | - |   |
| Dividends paid                                                                    |   |                    | (132   | )      |   |   | (104 | ) |
| Purchase of treasury stock                                                        |   |                    | (423   | )      |   |   | (312 | ) |
| Purchase of common shares for Recognition and Retention Plan Trust                |   |                    | -      |   |   |   | (520 | ) |
| Decrease in advances from borrowers for taxes and insurance                       |   |                    | 34     |   |   |   | 129 |   |
| Net Cash Provided by Financing Activities                                         |   |                    | 4,892  |   |   |   | 14,063 |   |
| Net Increase (Decrease) in Cash and Cash Equivalents                              |   |                    | 4,385  |   |   |   | (3,952 | ) |
| Cash and Cash Equivalents – Beginning of Period                             |   |                    | 1,035  |   |   |   | 4,987 |   |
| Cash and Cash Equivalents – End of Period                                   |   | $                       | 5,420  |   |   | $      | 1,035 |   |
| Supplementary Disclosure of Cash Flow and Non-Cash Information:                   |   |                    |   |   |   |   |   |   |
| Cash payments for interest                                                        |   | $                       | 2,457  |   |   | $      | 2,427 |   |
| Cash payments for taxes                                                           |   | $                       | 340    |   |   | $      | 429 |   |
| Transfer of loans to other real estate owned                                      |   | $                       | 208    |   |   | $      | 813 |   |

| See accompanying notes to consolidated financial statements. |
|--------------------------------------------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|      ● | A reporting entity to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers; and |
|---------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|      ● | In the reconciliation for fair value measurements using significant unobservable inputs, a reporting entity should present separately information about purchases, sales, issuances, and settlements. |
|---------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|      ● | For purposes of reporting fair value measurements for each class of assets and liabilities, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities; and |
|---------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|      ● | A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. |
|---------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | 2009                 |   |   | 2008   |   |
|---------------------------------------|--------|----------------------|--------|--------|--------|--------|
|                                  |   |  (In Thousands) |   |
| Due in one year or less               |   | $                    | 2,499  |   |   | $      | 3,735 |   |
| Due after one year through five years |   |                 | 654    |   |   |   | - |   |
|                                  |   | $                    | 3,153  |   |   | $      | 3,735 |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                      |   | December 31, 2009 |      |
|-----------------------------------------------------------|--------|-------------------|-----------|
|                                                      |   | Amortized Cost    |      |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value |   |
| Available for Sale:                                       |   |              |      |   |   |   |   |   |   |   |   |   |
|     U.S. Government agency securities |   | $                 | 499       |   |   | $ | - |   |   | $ | 1 |   |   | $ | 498 |   |
|     Short-term municipal bond fund    |   |              |  502 |   |   |   |  2 |   |   |   |  - |   |   |   |  504 |   |
|                                                      |   | $                 | 1,001     |   |   | $ | 2 |   |   | $ | 1 |   |   | $ | 1,002 |   |
|                                                      |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                      |   | December 31, 2008 |   |
|-----------------------------------------------------------|--------|-------------------|--------|
|                                                      |   | Amortized Cost    |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value |   |
| Held to Maturity:                                         |   |              |   |   |   |   |   |   |   |   |   |   |
|     U.S. Government agency securities |   | $                 | 2,250  |   |   | $ | 13 |   |   | $ | - |   |   | $ | 2,263 |   |
|                                                      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                   |   | Amortized Cost       |   |   | Fair Value |   |
|----------------------------------------|--------|----------------------|--------|--------|------------|--------|
|                                   |   |  (In Thousands) |   |
| Due in one year or less                |   | $                    | -      |   |       | $      | - |   |
| Due after one year through five years  |   |                 | -      |   |       |   | - |   |
| Due after five years through ten years |   |                 | 499    |   |       |   | 498 |   |
|                                   |   | $                    | 499    |   |       | $      | 498 |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                    |   | December 31, 2009 |   |
|---------------------------------------------------------|--------|-------------------|--------|
|                                                    |   | Amortized Cost    |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value |   |
|                                                    |   |              |   |   |   |   |   |   |   |   |   |   |
| Held to Maturity:                                       |   |              |   |   |   |   |   |   |   |   |   |   |
|     FNMA pass-through certificates  |   | $                 | 4,071  |   |   | $ | 211 |   |   | $ | - |   |   | $ | 4,282 |   |
|     FHLMC pass-through certificates |   |              | 3,660  |   |   |   |  200 |   |   |   |  - |   |   |   |  3,860 |   |
|                                                    |   | $                 | 7,731  |   |   | $ | 411 |   |   | $ | - |   |   | $ | 8,142 |   |

|                                                    |   | December 31, 2008 |   |
|---------------------------------------------------------|--------|-------------------|--------|
|                                                    |   | Amortized Cost    |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value |   |
| Held to Maturity:                                       |   |              |   |   |   |   |   |   |   |   |   |   |
|     FNMA pass-through certificates  |   | $                 | 5,025  |   |   | $ | 202 |   |   | $ | - |   |   | $ | 5,227 |   |
|     FHLMC pass-through certificates |   |              | 4,752  |   |   |   |  153 |   |   |   |  - |   |   |   |  4,905 |   |
|                                                    |   | $                 | 9,777  |   |   | $ | 355 |   |   | $ | - |   |   | $ | 10,132 |   |

|                                                      |   |  2009           |   |   | 2008   |   |
|-----------------------------------------------------------|--------|----------------------|--------|--------|--------|--------|
|                                                      |   |  (In Thousands) |   |
| Real estate loans:                                        |   |                 |   |   |   |   |
|    One-to-four family residential:         |   |                 |   |   |   |   |
|        Owner occupied  |   | $                    | 15,388 |   |   | $      | 17,460 |   |
| Non-owner occupied                                        |   |                 | 25,133 |   |   |   | 21,489 |   |
| Total one-to-four family residential                      |   |                 | 40,521 |   |   |   | 38,949 |   |
|                                                      |   |                 |   |   |   |   |   |   |
|    Multi-family (five or more) residential |   |                 | 3,127  |   |   |   | 3,526 |   |
|    Commercial real estate                  |   |                 | 18,617 |   |   |   | 19,096 |   |
|    Construction                            |   |                 | 3,536  |   |   |   | 2,752 |   |
|    Commercial lines of credit              |   |                 | 1,197  |   |   |   | 813 |   |
|    Home equity loans                       |   |                 | 6,445  |   |   |   | 4,585 |   |
| Total real estate loans                                   |   |                 | 73,443 |   |   |   | 69,721 |   |
|                                                      |   |                 |   |   |   |   |   |   |
| Auto loans                                                |   |                 | 78     |   |   |   | 103 |   |
| Loans secured by deposits                                 |   |                 | 13     |   |   |   | 109 |   |
| Total Loans                                               |   |                 | 73,534 |   |   |   | 69,933 |   |

| Deferred loan fees and costs |   |   | 29     |   |   |    | 66     |   |
|------------------------------|--------|--------|--------|--------|--------|---------|--------|--------|
| Allowance for loan losses    |   |   | (835   | )      |   |    | (689   | )      |
|  Net Loans              |   | $      | 72,728 |   |   | $  | 69,310 |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                            |   | 2009           |   |   | 2008   |   |
|---------------------------------|--------|----------------|--------|--------|--------|--------|
|                            |   | (In Thousands) |   |
| Balance, beginning              |   | $              | 689    |   |   | $      | 667 |   |
| Charge-offs                     |   |           | (19    | )      |   |   | (120 | ) |
| Recoveries                      |   |           | -      |   |   |   | - |   |
| Net charge-offs                 |   |           | (19    | )      |   |   | (120 | ) |
| Provision charged to operations |   |           | 165    |   |   |   | 142 |   |
|                            |   |           |   |   |   |   |   |   |
| Balance, ending                 |   | $              | 835    |   |   | $      |  689 |   |

|                              |   | 2009           |   |   | 2008   |   |
|-----------------------------------|--------|----------------|--------|--------|--------|--------|
|                              |   | (In Thousands) |   |
| Land and building                 |   | $              | 1,016  |   |   | $      | - |   |
| Leasehold improvements            |   |           | 9      |   |   |   | 9 |   |
| Furniture, fixtures and equipment |   |           | 238    |   |   |   | 188 |   |

|                     |   |   |   |   |   |   |   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                     |   |   | 1,263  |   |   |   | 197    |   |
| Accumulated depreciation |   |   | (171   | )      |   |   | (130   | )      |
|                     |   |   |   |   |   |   |   |   |
|                     |   | $      | 1,092  |   |   | $      | 67     |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                            |   | 2009                   |   |   | 2008                               |
|---------------------------------|--------|------------------------|--------|--------|------------------------------------|
|                            |   |   Amount          |   |   |  Weighted AverageInterestRate |   |   |   Amount |   |   | WeightedAverageInterestRate |   |
|                            |   | (Dollars in Thousands) |   |
| Passbook savings accounts       |   | $                      | 3,277  |   |                               |   | 0.89 | % |   | $ | 3,356 |   |   |   | 1.28 | % |
| Statement savings accounts      |   |                   | 6,508  |   |                               |   | 1.45 |   |   |   | 5,093 |   |   |   | 2.34 |   |
| eSavings accounts               |   |                   | 1,978  |   |                               |   | 1.64 |   |   |   | 429 |   |   |   | 3.08 |   |
| Certificate of deposit accounts |   |                   | 56,489 |   |                               |   | 2.80 |   |   |   | 50,103 |   |   |   | 3.97 |   |
|                            |   | $                      | 68,252 |   |                               |   | 2.55 | % |   |  $ | 58,981 |   |   |   | 3.67 |  % |

| Year ending December 31: |   |   |   |
|--------------------------|--------|--------|--------|
| 2010                     |   | $      | 41,195 |   |
| 2011                     |   |   | 7,155  |   |
| 2012                     |   |   | 2,350  |   |
| 2013                     |   |   | 4,296  |   |
| 2014                     |   |   | 1,493  |   |
|                     |   |   |   |   |
|                     |   | $      | 56,489 |   |

|                            |   | 2009                 |   |   |  2008 |   |
|---------------------------------|--------|----------------------|--------|--------|------------|--------|
|                            |   |  (In Thousands) |   |
| Passbook savings accounts       |   | $                    | 30     |   |       | $      | 45 |   |
| Statement savings accounts      |   |                 | 86     |   |       |   | 129 |   |
| eSavings accounts               |   |                 | 23     |   |       |   | 5 |   |
| Certificate of deposit accounts |   |                 | 1,994  |   |       |   | 2,113 |   |
|                            |   |                 |   |   |       |   |   |   |
|                            |   | $                    | 2,133  |   |       | $      | 2,292 |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|   Maturity Period        |    |   | Amount |   |   | WeightedInterest Rate |   |
|-------------------------------|--------------|--------|--------|--------|--------|-----------------------|--------|
|   1 to 12 months    |         | $      | 1,250  |   |   |                  | 3.38   | % |
| 13 to 24 months               |         |   | 1,800  |   |   |                  | 3.66   | % |
| 25 to 36 months               |         |   | 1,800  |   |   |                  | 3.98   | % |
| 37 to 48 months               |         |   | 2,000  |   |   |                  | 4.19   | % |
|     Total |         | $      | 6,850  |   |   |                  | 3.85   | % |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|           |   | 2009           |   |   | 2008   |   |
|----------------|--------|----------------|--------|--------|--------|--------|
|           |   | (In Thousands) |   |
| Federal:       |   |           |   |   |   |   |
| Current        |   | $              | 334    |   |   | $      | 307 |   |
| Deferred       |   |           | (76    | )      |   |   | (24 | ) |
|           |   |           |   |   |   |   |   |   |
|           |   |           | 258    |   |   |   | 283 |   |
| State, current |   |           | 56     |   |   |   | 60 |   |
|           |   |           |   |   |   |   |   |   |
|           |   | $              | 314    |   |   | $      | 343 |   |

|                                 |   | 2009           |   |   | 2008   |   |
|--------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                 |   | (In Thousands) |   |
| Federal income tax at statutory rate |   | $              | 272    |   |   | $      | 290 |   |
| State tax, net of federal benefit    |   |           | 37     |   |   |   | 40 |   |
| Stock compensation expense           |   |           | 3      |   |   |   | 3 |   |
| Other                                |   |           | 2      |   |   |   | 10 |   |
|                                 |   |           |   |   |   |   |   |   |
|                                 |   | $              | 314    |   |   | $      | 343 |   |

|                           |   | 2009           |   |   | 2008   |   |
|--------------------------------|--------|----------------|--------|--------|--------|--------|
|                           |   | (In Thousands) |   |
| Deferred tax assets:           |   |           |   |   |   |   |
| Allowance for loan losses      |   | $              | 284    |   |   | $      | 232 |   |
| Allowance for OREO losses      |   |           | 9      |   |   |   | - |   |
| Stock-based compensation       |   |           | 30     |   |   |   | 22 |   |
|                           |   |           |   |   |   |   |   |   |
| Total deferred tax assets      |   |           | 323    |   |   |   | 254 |   |
|                           |   |           |   |   |   |   |   |   |
| Deferred tax liabilities:      |   |           |   |   |   |   |   |   |
| Bank premises and equipment    |   |           | (28    | )      |   |   | (21 | ) |
| Deferred loan costs            |   |           | (9     | )      |   |   | (23 | ) |
|                           |   |           |   |   |   |   |   |   |
| Total deferred tax liabilities |   |           | (37    | )      |   |   | (44 | ) |
|                           |   |           |   |   |   |   |   |   |
| Net Deferred Tax Asset         |   | $              | 286    |   |   | $      | 210 |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                           |  2009 |                                                |   2008 |   |
|------------------------------------------------|------------|-----------------------------------------------------|-------------|--------|
| Allocated shares                               |       | 16,664                                              |        |   |        9,258 |   |
| Unreleased  shares                   |       |      94,426                |        |   |    101,832 |   |
| Total ESOP shares                              |       |    111,090                           |        |   |    111,090 |   |
| Fair value of unreleased shares (in thousands) | $          |         803 |        | $      | 761 |   |

|                                  |   | 2009            |    |   | 2008                                  |   |
|---------------------------------------|--------|-----------------|---------|--------|---------------------------------------|--------|
|                                  |   | Number ofShares |    |   | WeightedAverage Grant Date Fair Value |   |   | Number ofShares |   |   | WeightedAverage Grant Date Fair Value |   |
| Unvested at the beginning of the year |   |            | 43,324  |   |                                  | $      | 9.05 |   |   |   | — |   |   |   | — |   |
| Granted                               |   |            | — |   |                                  |   | — |   |   |   | 43,324 |   |   | $ | 9.05 |   |
| Vested                                |   |            | (8,588  | )      |                                  |   | 9.05 |   |   |   | — |   |   |   | — |   |
| Forfeited                             |   |            | (238    | )      |                                  |   | 9.05 |   |   |   | — |   |   |   | — |   |
| Unvested at the end of the year       |   |            | 34,498  |   |                                  | $      | 9.05 |   |   |   | 43,324 |   |   | $ | 9.05 |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                     |   | 2009            |    | 2008   |                           |
|------------------------------------------|--------|-----------------|---------|--------|--------------------------------|
|                                     |   | Number ofShares |    |   | WeightedAverage Exercise Price |   |   | WeightedAverage Remaining Contractual Life (in years) |   |   | Number ofShares |   |   | WeightedAverage Exercise Price |   |
| Outstanding at the beginning of the year |   |            | 108,311 |   |                           | $ | 10.00 |   |   |   | 9.4 |   |   |   | — |   |   | $ | — |   |
| Granted                                  |   |            | — |   |                           |   | — |   |   |   | — |   |   |   | 108,311 |   |   |   | 10.00 |   |
| Exercised                                |   |            | — |   |                           |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Forfeited                                |   |            | (593    | )      |                           |   |  10.00 |   |   |   | — |   |   |   | — |   |   |   |  — |   |
| Outstanding at December 31, 2009         |   |            | 107,718 |   |                           | $ | 10.00 |   |   |   | 8.4 |   |   |   | 108,311 |   |   | $ | 10.00 |   |
| Exercisable at December 31, 2009         |   |            | 20,888  |   |                           | $ | 10.00 |   |   |   | 8.4 |   |   |   | — |   |   |   |   |   |

| Expected dividend yield    |   |   | 1.10  |   | %       |
|---------------------------------|--------|--------|-------|--------|---------|
| Risk-free interest rate         |   |   | 3.5   |   | %  |
| Expected life of options        |   |   | 7.5   |   | years   |
| Expected stock-price volatility |   |   | 19.45 |   | %       |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                       |   | 2009           |   |   | 2008   |   |
|--------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                       |   | (In Thousands) |   |
| Commitments to grant loans                 |   | $              | 191    |   |   | $      | 365 |   |
| Unfunded commitments under lines of credit |   |           | 3,227  |   |   |   | 2,255 |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                     |   | Actual                 |   |   | For Capital Adequacy Purposes |   |   | To be Well Capitalized under Prompt Corrective Action Provisions |   |
|------------------------------------------|--------|------------------------|--------|--------|-------------------------------|--------|--------|------------------------------------------------------------------|--------|
|                                     |   | Amount                 |   |   | Ratio                         |   |   | Amount                                                           |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                     |   | (Dollars in Thousands) |   |
| As of December 31, 2009:            |   |                   |   |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| Total capital (to risk-weighted assets)  |   | $                      | 13,823 |   |                          |   | 22.69  | %                                                                |   | $ | ≥4,874 |   |   |   | ≥8.00 | % |   | $ | ≥6,093 |   |   |   | ≥10.00 | % |
| Tier 1 capital (to risk-weighted assets) |   |                   | 13,051 |   |                          |   | 21.42  |                                                             |   |   | ≥2,437 |   |   |   | ≥4.00 |   |   |   | ≥3,365 |   |   |   | ≥6.00 |   |
| Tier 1 capital (to average assets)       |   |                   | 13,051 |   |                          |   | 14.51  |                                                             |   |   | ≥3,598 |   |   |   | ≥4.00 |   |   |   | ≥4,497 |   |   |   | ≥5.00 |   |
|                                     |   |                   |   |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2008:            |   |                   |   |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total capital (to risk-weighted assets)  |   | $                      | 13,299 |   |                          |   | 21.14  | %                                                                |   | $ | ≥5,033 |   |   |   | ≥8.00 | % |   | $ | ≥6,292 |   |   |   | ≥10.00 | % |
| Tier 1 capital (to risk-weighted assets) |   |                   | 12,611 |   |                          |   | 20.04  |                                                             |   |   | ≥2,517 |   |   |   | ≥4.00 |   |   |   | ≥3,775 |   |   |   | ≥ 6.00 |   |
| Tier 1 capital (to average assets)       |   |                   | 12,611 |   |                          |   | 15.44  |                                                             |   |   | ≥3,266 |   |   |   | ≥4.00 |   |   |   | ≥4,083 |   |   |   | ≥5.00 |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|  Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.                                        |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |                                                                                                                                                                             |
|  Level 2: | Quoted prices in markets that are not active, or inputs that are observable either directly or  indirectly, for substantially the full term of the asset or liability. |
|           |                                                                                                                                                                             |
| Level 3:       | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                     |   |     Carrying Value |   |   | Quoted Prices inActive Marketsfor IdenticalAssets(Level 1) |   |   |   Significant OtherObservable Inputs(Level 2) |   |   |  Significant OtherObservableInputs(Level 3) |   |
|------------------------------------------|--------|----------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|--------------------------------------------------|--------|
|                                     |   |                                   |   |
| Investment securities available for sale |   | $                                      | 1,002  |   |                                                       | $      | -      |                                                    |   | $      | 1,002                                            |   |   | $ | - |   |

|                    |   | December 31, 2009                      |   |
|-------------------------|--------|----------------------------------------|--------|
|                    |   |                                   |   |
|                    |   |     Carrying Value |   |   | Quoted Prices inActive Marketsfor IdenticalAssets(Level 1) |   |   |   Significant OtherObservable Inputs(Level 2) |   |   |  Significant OtherObservableInputs(Level 3) |   |
|                    |   |                                   |   |
| Other real estate owned |   | $                                      | 913    |   |   | $ | - |   |   | $ | - |   |   | $ | 913 |   |

|                    |   | December 31, 2008                      |   |
|-------------------------|--------|----------------------------------------|--------|
|                    |   |                                   |   |
|                    |   |     Carrying Value |   |   | Quoted Prices inActive Marketsfor IdenticalAssets(Level 1) |   |   |   Significant OtherObservable Inputs(Level 2) |   |   |  Significant OtherObservableInputs(Level 3) |   |
|                    |   |                                   |   |
| Other real estate owned |   | $                                      | 732    |   |   | $ | - |   |   | $ | - |   |   | $ | 732 |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                     |   |  2009                 |    |   |  2008        |   |
|----------------------------------------------------------|--------|----------------------------|---------|--------|-------------------|--------|
|                                                     |   | CarryingAmount             |    |   |   Fair Value |   |   |   CarryingAmount |   |   |   Fair Value |   |
|                                                     |   |   (In Thousands) |    |
| Assets:                                                  |   |                       |    |   |              |   |   |   |   |   |   |   |
|   Cash and cash equivalents                    |   | $                          | 5,420   |   |              | $      | 5,420 |   |   | $ | 1,035 |   |   | $ | 1,035 |   |
|   Investment in interest-earning time deposits |   |                       | 3,153   |   |              |   | 3,157 |   |   |   | 3,735 |   |   |   | 3,747 |   |
|   Investment securities available for sale     |   |                       | 1,002   |   |              |   | 1,002 |   |   |   | - |   |   |   | - |   |
|   Investment securities held to maturity       |   |                       | -       |   |              |   | - |   |   |   | 2,250 |   |   |   | 2,263 |   |
|   Mortgage-backed securities held to maturity  |   |                       | 7,731   |   |              |   | 8,142 |   |   |   | 9,777 |   |   |   | 10,132 |   |
|   Loans receivable, net                        |   |                       | 72,728  |   |              |   | 74,175 |   |   |   | 69,310 |   |   |   | 71,196 |   |
|   Investment in FHLB stock                     |   |                       | 797     |   |              |   | 797 |   |   |   | 797 |   |   |   | 797 |   |
|   Accrued interest receivable                  |   |                       | 397     |   |              |   | 397 |   |   |   | 355 |   |   |   | 355 |   |
|                                                     |   |                       |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                             |   |                       |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   Deposits                                     |   |                       | 68,252  |   |              |   | 68,917 |   |   |   | 58,981 |   |   |   | 59,229 |   |
|   FHLB advances, long-term                     |   |                       | 1,250   |   |              |   | 1,268 |   |   |   | 6,850 |   |   |   | 7,180 |   |
|   FHLB advances, short-term                    |   |                       | 5,600   |   |              |   | 5,854 |   |   |   | 4,300 |   |   |   | 4,312 |   |
|   Other borrowings                             |   |                       | 442     |   |              |   | 442 |   |   |   | — |   |   |   | — |   |
|   Accrued interest payable                     |   |                       | 117     |   |              |   | 117 |   |   |   | 138 |   |   |   | 138 |   |
|                                                     |   |                       |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Off-balance sheet financial instruments                  |   |                       | — |   |              |   | — |   |   |   | — |   |   |   | — |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                                           |   | December 31,2009 |   |   | December 31,2008 |   |
|--------------------------------------------------------------------------------|--------|------------------|--------|--------|------------------|--------|
| Assets                                                                         |   |             |   |   |             |   |
| Cash and cash equivalents                                                      |   | $                | 2,324  |   |             | $      | 546 |   |
| Investment in interest-earning time deposits                                   |   |             | 876    |   |             |   | 1,770 |   |
| Investments securities available for sale                                      |   |             | 501    |   |             |   | - |   |
| Investments securities held to maturity                                        |   |             | -      |   |             |   | 2,250 |   |
| Investment in Quaint Oak Bank                                                  |   |             | 13,169 |   |             |   | 12,673 |   |
| Premises and equipment, net                                                    |   |             | 1,020  |   |             |   | - |   |
| Other assets                                                                   |   |             | 71     |   |             |   | 107 |   |
|      Total Assets                                     |   | $                | 17,961 |   |             | $      | 17,346 |   |
|                                                                           |   |             |   |   |             |   |   |   |
| Liabilities and Stockholders’ Equity                                     |   |             |   |   |             |   |   |   |
| Other borrowings                                                               |   | $                | 442    |   |             | $      | - |   |
| Other liabilities                                                              |   |             | 133    |   |             |   | 73 |   |
| Stockholders’ equity                                                     |   |             | 17,386 |   |             |   | 17,273 |   |
|      Total Liabilities and Stockholders’ Equity |   | $                | 17,961 |   |             | $      | 17,346 |   |

|                                             |   |                                |   |   |                                |   |
|--------------------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                             |   | For the Year EndedDecember 31, 2009 |   |   | For the Year EndedDecember 31, 2008 |   |
| Income                                           |   |                                |   |   |                                |   |
| Interest income                                  |   | $                                   | 83     |   |                                | $      | 205 |   |
| Rental income                                    |   |                                | 3      |   |                                |   | - |   |
| Investment securities (losses)                   |   |                                | -      |   |                                |   | (22 | ) |
|    Total Income                   |   |                                | 86     |   |                                |   | 183 |   |
|                                             |   |                                |   |   |                                |   |   |   |
| Expenses                                         |   |                                |   |   |                                |   |   |   |
| Occupancy and equipment expense                  |   |                                | 35     |   |                                |   | - |   |
| Other expenses                                   |   |                                | 66     |   |                                |   | 89 |   |
|    Total Expenses                 |   |                                | 101    |   |                                |   | 89 |   |
|                                             |   |                                |   |   |                                |   |   |   |
| Net Income (Loss) Before Income Taxes            |   |                                | (15    | )      |                                |   | 94 |   |
| Equity in Undistributed Net Income of Subsidiary |   |                                | 496    |   |                                |   | 462 |   |
| Income Tax Expense  (Benefit)          |   |                                | 6      |   |                                |   | (45 | ) |
| Net Income                                       |   | $                                   | 487    |   |                                | $      | 511 |   |

----

| Quaint Oak Bancorp, Inc. |
|--------------------------|

|                                                                                                                         |   | For the Year EndedDecember 31, 2009 |   |   | For the Year EndedDecember 31, 2008 |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                                                                                                         |   |                                |   |   |                                |   |
| Operating Activities                                                                                                         |   |                                |   |   |                                |   |
| Net income                                                                                                                   |   | $                                   | 487    |   |                                | $      | 511 |   |
| Adjustments to reconcile net income to net cash provided byoperating activities:                                             |   |                                |   |   |                                |   |   |   |
|              Undistributed income in subsidiary             |   |                                | (496   | )      |                                |   | (462 | ) |
|       Depreciation expense                                                                     |   |                                | 12     |   |                                |   | - |   |
|       Stock-based compensation expense                                                         |   |                                | 180    |   |                                |   | 141 |   |
|              Amortization of investment securities premiums |   |                                | -      |   |                                |   | 3 |   |
|              Loss on redemption of investment securities    |   |                                | -      |   |                                |   | 22 |   |
|              (Increase) decrease in other assets            |   |                                | 36     |   |                                |   | (69 | ) |
|       Increase in other liabilities                                                            |   |                                | 60     |   |                                |   | 11 |   |
|            Net cash provided by operating activities                  |   |                                | 279    |   |                                |   | 157 |   |
|                                                                                                                         |   |                                |   |   |                                |   |   |   |
| Investing Activities                                                                                                         |   |                                |   |   |                                |   |   |   |
| Net increase (decrease) in investment in interest-earning time deposits                                                 |   |                                | 894    |   |                                |   | (1,576 | ) |
| Purchase of investment securities                                                                                            |   |                                | (500   | )      |                                |   | (1,509 | ) |
| Proceeds from the calls or redemption of investment securities                                                               |   |                                | 2,250  |   |                                |   | 3,488 |   |
| Purchase of property and equipment                                                                                           |   |                                | (1,032 | )      |                                |   | - |   |
| Net cash provided by  investing activities                                                                         |   |                                | 1,612  |   |                                |   | 403 |   |
|                                                                                                                         |   |                                |   |   |                                |   |   |   |
| Financing Activities                                                                                                         |   |                                |   |   |                                |   |   |   |
| Proceeds from borrowings                                                                                                     |   |                                | 450    |   |                                |   | - |   |
| Repayment of other borrowings                                                                                                |   |                                | (8     | )      |                                |   | - |   |
| Dividends paid                                                                                                               |   |                                | (132   | )      |                                |   | (104 | ) |
| Purchase of Treasury stock                                                                                                   |   |                                | (423   | )      |                                |   | (312 | ) |
| Purchase of common stock for stock compensation plans                                                                        |   |                                | -      |   |                                |   | (520 | ) |
| Net cash used in financing activities                                                                                        |   |                                | (113   | )      |                                |   | (936 | ) |
|                                                                                                                         |   |                                |   |   |                                |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents                                                                         |   |                                | 1,778  |   |                                |   | (376 | ) |
| Cash and Cash Equivalents-Beginning of Period                                                                                |   |                                | 546    |   |                                |   | 922 |   |
| Cash and Cash Equivalents-End of Period                                                                                      |   | $                                   | 2,324  |   |                                | $      | 546 |   |

----

|  DIRECTORS AND EXECUTIVE OFFICERS |
|----------------------------------------|

| Directors                                                                                                      |
|---------------------------------------------------------------------------------------------------------------------|
| Robert T. StrongPresident and Chief Executive Officer                                                               | James J. Clarke, Ph.D.Principal of Clarke Consulting, Villanova, Pennsylvania |
|  Robert J. PhillipsChairman of the Board. Partner, Phillips and Phillips Enterprises, Doylestown, Pennsylvania |  Andrew E. DiPiero, Jr., Esq.Partner with Stampone D’Angelo Renzi DiPiero, Attorney at Law, P.C., Cheltenham, Pennsylvania |
|  George M. Ager, Jr.Currently retired                                                                          |  Kenneth R. Gant, MBAAssociate Agent, Landis Agencies, Doylestown, Pennsylvania |
|  John J. Augustine, CPAChief Financial Officer                                                                 |  Marsh B. SpinkManaging Partner of Lawn-Crest Realty, Philadelphia, Pennsylvania |
|                                                                                                                |   |
| Executive Officers                                                                                             |
| Diane J. ColyerChief Operating Officer and Corporate Secretary                                                      | Robert FarrerCustomer Service Manager, Compliance Officer, Security Officer, Bank Secrecy Act Officer and Community Reinvestment Act Officer |
|                                                                                                                |   |
| Curt T. SchulmeisterChief Lending Officer                                                                           |

| BANKING LOCATIONS |
|-------------------|

| 607 Lakeside DriveSouthampton, Pennsylvania(215) 364-4059  |   | 1710 Union BoulevardAllentown, PA 18109(610) 351-9960 |
|-----------------------------------------------------------------|--------|-------------------------------------------------------|

| TRANSFER AGENT / REGISTRAR |
|----------------------------|