QUAINT OAK BANCORP, INC.

Loan Servicing Rights

The Company sells the guaranteed portion of certain SBA loans tothird parties and retains servicing rights and receives servicing fees. All such transfers are accounted for as sales. While the Company* may*retain a portion of certain sold SBA loans, its continuing involvement in the portion of the loan that was sold is limited to certain servicing responsibilities.

These servicing assets amortize in proportion to, and over the period of, the estimated future net servicing life of the underlying loans. The servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is recognized on the income statement to the extent that fair value is less than the capitalized amount of the servicing assets. Included in other assets are SBA servicing rights recognized as separate assets when the guaranteed portion of the SBA loans are sold and the servicing rights are retained. These capitalized SBA servicing rights are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing period of the underlying SBA loans. SBA servicing rights totaled $619,000 and $404,000 at* December 31, 2025and2024,* respectively. During the years ended* December 31, 2025and2024,* approximately $95,000 and $69,000 in amortization was recognized, respectively.