Quaint Oak Bancorp (QNTO) is a Pennsylvania-chartered savings bank holding company with total assets of $675.9M at December 31, 2025, down from $719.1M at September 30, 2025 (prior 10-Q) and from the prior year-end per filing context. Under a liquidation lens, the recovery posture is structurally thin and constrained by several factors. Total liabilities stand at $623.5M versus total assets of $675.9M, leaving book equity of approximately $52.3M. However, liquidation-adjusted asset recovery is materially lower than book. The loan portfolio — the dominant asset at $540.7M net ($546.2M gross) — consists primarily of real estate loans (82.4% secured by real estate per MD&A) and commercial real estate (56.7% of total loans, $309.7M). Under a liquidation discount of 55-65 cents on the dollar for a distressed CRE-heavy community bank portfolio, recoverable loan value could fall $190M-$245M below face, wiping out all equity and creating a deficiency to depositors. Cash and equivalents of $53.5M recover at par and are the clearest positive. Investment securities (AFS $882K fair value, HTM $912K amortized cost) are de minimis. Loans held for sale total $61.0M and may recover near face if sold in an orderly process, though any distress discount could reduce proceeds materially. Goodwill ($515K) and finite-lived intangibles ($28K) recover at zero. BOLI ($4.6M) recovers near face. PP&E carries net book value not separately resolvable from XBRL but is leasehold-heavy (all locations are leased per Item 2); physical asset liquidation value is negligible. On the liability side, deposits of $597.3M must be settled at face, including $354.7M in certificates of deposit (61.3% of total deposits), of which $245.4M mature within one year. Approximately $244.3M (40.9%) are uninsured. The holding company carries subordinated debt and senior unsecured notes (referenced in MD&A and exhibit list; aggregate balance not separately XBRL-tagged in this filing but visible in prior-period as ~$11.5M sub debt and ~$9.6M senior debt combined). Operating lease commitments total $6.3M undiscounted through expiry dates as late as 2040-2044; these do not extinguish on wind-up. A BSA/AML Consent Order (FDIC and PA DoBaS, effective May 2025) adds contingent compliance cost and reputational risk. The double leverage ratio of 128.4% (disclosed in MD&A) means holding company equity investment in the bank is debt-financed, further compressing net recovery to the parent equity. Bank-level regulatory capital ratios are well-capitalized (CET1 12.36%, total risk-based 13.55%, T1 leverage 10.26%), but these ratios are irrelevant to liquidation recovery math — what matters is asset recovery versus contractual liability claims at face. MFFAIS CLV/LLV/OLV are all reported at $43.9M, consistent with a thin but marginally positive book-equity position after discounting the goodwill and intangibles. Actual liquidation recovery to equity is likely negative or near zero given the structural loan haircut required. No FHLB advances outstanding at year-end 2025 (reduced from $47.9M at December 31, 2024), which removes $47.9M of secured senior priority claim, a meaningful positive change YoY. Filing does not separately XBRL-tag the subordinated debenture or senior unsecured note balances as distinct line items in TAG_CONTEXT; only interest expense on subordinated notes ($954K) is tagged, preventing precise face-value verification of those obligations from XBRL alone.
▼ Community Notes