Quaint Oak Bancorp, Inc. Announces Results of Annual Meeting of Shareholders and...

Quaint Oak Bancorp, Inc. Announces Results of Annual Meeting of Shareholders and Stock Purchases to Fund Plan

SOUTHAMPTON, Pa.--(Business Wire)--
Quaint Oak Bancorp, Inc. (OTC Bulletin Board: QNTO) (the
"Company"), the holding company for Quaint Oak Bank, today announced
it had received approval of the four proposals presented to
shareholders at the annual meeting held on Wednesday, May 14, 2008.

At the annual meeting, shareholders approved the election of three
directors for three-year terms, adoption of the 2008 Stock Option
Plan, adoption of the 2008 Recognition and Retention Plan and
ratification of independent registered public accountants.

Quaint Oak Bank completed its mutual to stock conversion on July
3, 2007 and sold 1,388,625 shares of common stock. At a meeting held
on May 14, 2008, the Company's Compensation Committee granted stock
options and awarded shares pursuant to the Stock Option Plan and
Recognition and Retention Plan following shareholder approval to
eligible employees and non-employee directors. The Compensation
Committee determined to award the stock options at an exercise price
of $10.00 per share, the initial offering price per share in the
conversion, but higher than the closing price of the Company's common
stock on May 14, 2008.

"I am pleased by the support of our shareholders in voting in
favor of our four proposals," said Robert T. Strong, President and
Chief Executive Officer. Mr. Strong continued, "We are gratified by
this showing of shareholder support for our stock benefit plans during
the first year following our mutual to stock conversion and the
confidence they have shown in the management of the Company. I believe
that the Compensation Committee's decision to grant the stock options
at an exercise price of $10.00 per share demonstrates our commitment
to growing long-term shareholder value."

In order to fund the 2008 Recognition and Retention Plan, the
related trust will purchase 55,545 shares of Quaint Oak Bancorp's
common stock in the open market. Purchases will be made from time to
time at the discretion of management.

Quaint Oak Bancorp, Inc. is a community-based, savings and loan
holding company providing consumer and commercial banking services
through its wholly-owned subsidiary, Quaint Oak Bank, headquartered in
Southampton, Pennsylvania. Quaint Oak Bank has served individuals and
businesses in the Bucks County area for more than 80 years. Quaint Oak
Bancorp's website is www.quaintoak.com.

Statements contained in this news release which are not historical
facts may be forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause
actual results to differ materially from those currently anticipated
due to a number of factors. Factors which could result in material
variations include, but are not limited to, changes in interest rates
which could affect net interest margin and net interest income,
competitive factors which could affect net interest income and
noninterest income, changes in demand for loans, deposits and other
financial services in Quaint Oak Bancorp's market area; changes in
asset quality, general economic conditions as well as other factors
discussed in documents filed by Quaint Oak Bancorp with the Securities
and Exchange Commission from time to time. Quaint Oak Bancorp
undertakes no obligation to update these forward-looking statements to
reflect events or circumstances that occur after the date on which
such statements were made.

Quaint Oak Bancorp, Inc.
Robert T. Strong, President and Chief Executive Officer
215-364-4059

Copyright Business Wire 2008