One-to-Four Family Residential Owner Occupied Real Estate Loans. As part of our
strategy of diversifying our loan portfolio with higher yielding and shorter-term
loan products, Quaint Oak Bank does not emphasize the origination of one-to-four
family owner occupied residential loans to be held in our loan portfolio. All
of these loans originated for portfolio have fixed rates of interest.
One-to-Four Family Residential Non-Owner Occupied Real Estate Loans. A significant
part of Quaint Oak Bank's lending activity is the origination of loans secured
by single-family residences for non-owner occupied properties.
It is our policy to lend in a first lien position on non-owner occupied residential
property with fixed and variable rates and terms generally up to 15 years or
longer amortizations. Generally, such loans are originated at a fixed rate with
a three or five year maturity. Such loans are generally limited to 75%, or less,
of the appraised value, or sales price plus improvement costs of the secured
real estate property.
One-to-Four Family Residential Loans Originated for Sale. Quaint Oak Bank through
its subsidiary, Quaint Oak Mortgage LLC, brokers and originates one-to-four
family residential fixed and variable rate first mortgages with amortizing terms
less than or equal to 30 years in accordance with secondary market standards.
Loans originated by Quaint Oak Mortgage LLC are sold into the secondary market
along with the loans' servicing rights.
Multi-Family Residential Loans. Quaint Oak Bank originates loans for multi-unit
(five or more) residential properties. These loans are offered with fixed and
adjustable interest rates and amortizations not to exceed 25 years. Generally,
the loan-to-value ratio does not exceed 75%. These loans are underwritten with
the same criteria and procedures as commercial real estate loans.
Commercial Real Estate Loans and Lines of Credit. Quaint Oak Bank also originates
loans secured by commercial real estate.
Construction Loans. Our construction loans are generally originated for the
purpose of building or renovating a single family residential home. Generally,
we do not make construction loans for speculative development. Funds are advanced
incrementally as work is completed. The borrower is required to make monthly
interest payments. When the construction is finished, the amount of the outstanding
loan is less than 70% of the completed value of the property. Quaint Oak Bank
is paid in full when the borrower seeks permanent financing or the property
is sold.
Home Equity Loans. Quaint Oak Bank is authorized to make loans for a wide variety
of personal or consumer purposes. Quaint Oak Bank originates home equity loans
and home equity lines of credit in order to accommodate its customers and because
such loans generally have shorter terms than residential mortgage loans.
Commercial Business Loans. Quaint Oak Bank originates loans to businesses primarily
for the purchase of business essential equipment. Business essential equipment
is equipment necessary for a business to support or assist with the day-to-day
operation or profitability of the business.
Other Consumer Loans. Quaint Oak Bank originates auto loans and loans secured
by savings accounts in order to accommodate its existing customers.