QNB Corp. Reports Earnings for Fourth Quarter 2024

Rhea-AI Summary

QNB Corp. (QNBC) reported strong financial results for Q4 2024, with net income of $3,051,000 ($0.83 per diluted share), compared to $1,134,000 ($0.31 per share) in Q4 2023. Full-year 2024 net income reached $11,488,000 ($3.12 per share), up from $9,483,000 ($2.63 per share) in 2023.

Total assets grew 9.6% to $1.87 billion, with loans increasing 11.2% to $1.22 billion and deposits rising 9.4% to $1.63 billion. Net interest margin improved to 2.38% in Q4 2024 from 2.36% in Q4 2023. The Bank's asset quality remained strong with non-performing loans at 0.16% of total loans.

The company issued $40 million in subordinated debt in Q3 2024 and increased available-for-sale debt securities by 11.5% to $546.6 million. The allowance for credit losses decreased to 0.72% of loans receivable, down from 0.81% at the end of 2023.

Positive

• Net income increased 169% YoY to $3.05M in Q4 2024
• Full-year net income grew 21.1% to $11.49M
• Loan portfolio expanded 11.2% to $1.22B
• Deposits increased 9.4% to $1.63B
• Net interest margin improved to 2.38% from 2.36% YoY

Negative

• Commercial loans classified as substandard/doubtful increased to $27.65M from $11.61M YoY
• Retail brokerage and advisory income decreased by $89,000 due to employee turnover
• Non-interest expense increased 4% YoY to $35.48M

QUAKERTOWN, Pa., Jan. 21, 2025 (GLOBE NEWSWIRE) -- QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the fourth quarter of 2024 of $3,051,000, or $0.83 per share on a diluted basis.  This compares to net income of $1,134,000, or $0.31 per share on a diluted basis, for the same period in 2023.  For the twelve months ended December 31, 2024, QNB reported net income of $11,488,000, or $3.12 per share on a diluted basis.  This compares to net income of $9,483,000, or $2.63 per share on a diluted basis, reported for the same period in 2023.

For the fourth quarter of 2024, the annualized rate of return on average assets and average shareholders’ equity was 0.61% and 7.36%, respectively, compared with 0.25% and 2.83%, respectively, for the fourth quarter 2023. 

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended December 31, 2024, in comparison with the same period in 2023, due primarily to improvement in the interest margin causing a $1,621,000 increase in net interest income, decreased provision for credit losses on loans and unfunded commitments of $548,000 and an increase in non-interest income of $1,814,000; this was partly offset by an increase in non-interest expense of $303,000.  The change in contribution from QNB Corp. for the quarter ended December 31, 2024, compared with the same period in 2023, is primarily due to a decrease in net interest income of $838,000, related to the subordinated debt issuance in 2024, and fewer unrealized gains on the equity portfolio; partly offset by less losses on sales of equity securities.

The following table presents disaggregated net income (loss):   

	Three months ended,												Twelve months ended,
	12/31/2024				12/31/2023				Variance				12/31/2024				12/31/2023				Variance
QNB Bank	$	3,771,000			$	827,000			$	2,944,000			$	12,237,000			$	9,395,000			$	2,842,000
QNB Corp		(720,000	)			307,000				(1,027,000	)			(789,000	)			88,000				(877,000	)
Consolidated net income	$	3,051,000			$	1,134,000			$	1,917,000			$	11,448,000			$	9,483,000			$	1,965,000

Total assets as of December 31, 2024 were $1,870,894,000 compared with $1,706,318,000 at December 31, 2023. Total available-for-sale debt securities increased $56,378,000, or 11.5%, to $546,559,000, primarily due to purchases of higher-yielding securities to offset the cost of the $40,000,000 of subordinated debt issued in the third quarter of 2024. Loans receivable increased $122,515,000, or 11.2%, to $1,216,048,000. Total deposits increased $139,828,000, or 9.4%, to $1,628,541,000. Short-term borrowing declined $50,250,000, or 53.4%. Long term debt increased $20,000,000 and the carrying value of the subordinated debt, net of deferred costs, was $39,068,000 at December 31, 2024.

“We are pleased with the strong growth and quality of our business throughout 2024, resulting in a $1.9 million increase in earnings vs. the prior year,” said David W. Freeman, President and Chief Executive Officer. Freeman continued, “Assets increased by 9.6% during the year, driven by growth in our loan portfolio. Although deposit growth slowed in the 4th quarter, we finished the year with an increase of 9.4% in deposits over the prior year. We are focused on top-line growth, prudent use of capital, and managing our balance sheet. As a result of disciplined management, we continued to realize improvement in Net Interest Income. We will continue to capitalize on market opportunities and are optimistic moving into 2025.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended December 31, 2024 totaled $10,975,000, an increase of $783,000, from the same period in 2023. Net interest margin was 2.38% for the fourth quarter of 2024 and 2.36% for the same period in 2023. Net interest margin was 2.43% for the twelve months ended December 30, 2024, compared with 2.39% for the same period in 2023.  

The yield on earning assets was 4.78% for the fourth quarter of 2024, compared with 4.44% in the fourth quarter of 2023; an increase of 34 basis points.  For the twelve-month period ended December 31, 2024, the yield on earning assets was 4.73%, compared with 4.09% for the same period in 2023.  The cost of interest-bearing liabilities was 2.91% for the quarter ended December 31, 2024, compared with 2.55% for the same period in 2023, an increase of 36 basis points.  For the twelve-month period ended December 31, 2024, the cost of interest-bearing liabilities was 2.80% compared with 2.11% for the same period in 2023.

Proceeds from the growth in average deposits, paydowns on investment securities and from the issuance of both long-term and subordinated debt over the past year were invested in loans and other interest earning assets, reinvested in higher-yielding securities and used to pay down short-term borrowings.  Loan growth was primarily in commercial real estate, which comprised 45% of average earning assets in the twelve months of 2024 compared with 42% for the same period in 2023, and the increases in both rates and volume in commercial real estate loans majorly contributed to the 50 basis-point increase in the yield on loans.  The decline in the available-for-sale portfolio was primarily in mortgage-backed securities, which comprised 20% of average earnings assets in the twelve months of 2024 compared with 23% for the same period in 2023.  The 57-basis point increase in rate on investments was primarily due to the impact of the interest rate swaps entered into at the end of the second quarter of 2023 and the investment in higher-yielding securities, contributing to the increase in net interest margin.  The 70 basis-point increase in the rate paid on deposits and the issuance of subordinated debt were the primary contributors to the increase in the cost of funds of 69 basis points.

Asset Quality, Provision for Credit Losses on Loans and Allowance for Credit Losses

QNB recorded a $242,000 reversal in the provision for credit losses on loans in the fourth quarter of 2024 compared to $291,000 in additional provision in the fourth quarter of 2023.  QNB's allowance for credit losses on loans of $8,744,000 represents 0.72% of loans receivable at December 31, 2024, compared to $8,852,000, or 0.81% of loans receivable at December 31, 2023.  The nine basis point decrease in the allowance for credit losses on loans was primarily due to improvements in the economic outlook. Net loan charge-offs were $1,000 for the quarter ended December 31, 2024, compared with recoveries of $19,000 for the same period in 2023.  Annualized net loan charge-offs for the quarter ended December 31, 2024 were 0.00% and annualized net loan recoveries were 0.01% for the quarter ended December 31, 2023, of average loans receivable, respectively.  Net loan charge-offs of $59,000 for the twelve months ended December 31, 2024, compared with recoveries of $238,000 for the same period in 2023, were primarily due to two large commercial customers.  Annualized net loan charge-offs for the twelve months ended December 31, 2024 were 0.01%, compared to annualized net loan recoveries of 0.02% for the same period in 2023, of average loans receivable, respectively.

Total non-performing loans, which represent loans on non-accrual status and loans past due 90 days or more and still accruing interest, were $1,975,000, or 0.16% of loans receivable at December 31, 2024, compared with $1,940,000, or 0.18% of loans receivable at December 31, 2023.  In cases where there is a collateral shortfall on non-accrual loans, specific reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement.  At December 31, 2024, $1,178,000, or approximately 60% of the loans classified as non-accrual, are current or past due less than 30 days.  Commercial loans classified as substandard or doubtful loans totaled $27,652,000 at December 31, 2024, compared with $11,610,000 at December 31, 2023; these were comprised primarily of commercial real estate loans.

Non-Interest Income

Total non-interest income was $1,645,000 for the fourth quarter of 2024 compared with $283,000 for the same period in 2023.  Net realized and unrealized gain/loss on securities were a net gain of $70,000 for the quarter ended December 31, 2024 compared to a net loss of $1,358,000 in the same period in 2023.  During the fourth quarter of 2024, QNB sold all remaining equity securities and reversed the unrealized gains and losses on equity securities and recorded realized gains and losses on sales.  The Bank also sold lower yielding securities to better position its net interest margin.

Fees for service to customers increased $40,000 for the quarter ended December 31, 2024, as overdraft fees increased $20,000 and other deposit-related fees increased $20,000.  ATM and debit card increased $21,000 due to volume.  Retail brokerage and advisory income decreased $89,000 to $118,000 for the same period, due to a decrease in customer balances following employee turnover.  Other non-interest income decreased $24,000 for the same period due to a decline in merchant fee income of $14,000 and less letter of credit fees of $9,000.  

For the twelve months ended December 31, 2024, non-interest income was $6,913,000, an increase of $2,076,000 compared to the same period in 2023.  Net realized and unrealized gains (losses) on securities were a net gain of $704,000 for the year ended December 31, 2024 compared to a net loss of $1,827,000 in the same period in 2023.  QNB completed the exchange offer to convert the Bank's Visa B-1 shares to B-2 and C shares in the second quarter of 2024; QNB sold the Visa Class C shares in the fourth quarter of 2024 and realized a gain of $1,498,000.  QNB sold its other equity securities and realized a gain of $517,000 during the twelve months ended December 31, 2024 compared to a loss of $19,000 for the same period of 2023.  Realized gain/loss on sale of available-for-sale debt securities was a loss of $2,230,000, a decline of $172,000 for the twelve months ended December 31, 2024, compared with the same period in 2023.  Net gain on sale of loans increased $13,000 when comparing the twelve months ended December 31, 2024 with the same period in 2023.  Increases in non-interest income for the twelve months ended December 31, 2024 compared to the same period in 2023 comprise:  fees for services to customers which increased $119,000 and ATM and debit card income of $5,000.  Decreases in non-interest income comprised:  retail brokerage and advisory income, merchant income, and other which decreased $386,000, $46,000 and $206,000, respectively.  Other non-interest income decreased the $206,000 due primarily to a sales tax refund of $117,000 received in 2023, losses on disposals of furniture and equipment, mortgage servicing fees and letter of credit fees.    

Non-Interest Expense

Total non-interest expense was $9,081,000 for the fourth quarter of 2024 compared with $8,746,000 for the same period in 2023.  Salaries and benefits expense increased $362,000, or 7.7%, to $5,079,000 when comparing the two quarters.  Salary expense and related payroll taxes increased $518,000, or 13.2%, to $4,430,000 during the fourth quarter of 2024 compared to the same period in 2023, primarily due to bonuses related to financial goal improvement.  Benefits expense decreased $165,000, or 37.1%, when comparing the two periods primarily due to a reduction in medical costs and stop-loss reimbursements.

Net occupancy and furniture and equipment expense increased $176,000, or 11.9%, to $1,653,000 for the fourth quarter of 2024 primarily due to software maintenance costs and depreciation.  Other non-interest expense decreased $203,000, or 8.0%, when comparing fourth quarter of 2024 with the same period in 2023 due to a decrease in write-offs relating to fraud on customer accounts of $215,000 and a decrease in FDIC insurance of $185,000, partly offset by increases in marketing expense of $67,000, third-party service expenses of $64,000, and debit card expense of $63,000.

For the twelve months ended December 31, 2024, non-interest expense was $35,484,000, an increase of $1,375,000, or 4.0%, compared to the same period in 2024.

Income Taxes

Provision for income taxes increased $441,000 to $743,000 in the fourth quarter of 2024 due to increased pre-tax income, compared with the same period in 2023.  The effective tax rate for the quarter ended December 31, 2024 was 19.6% compared with 21.0% for the same period in 2023.  The effective tax rate for the twelve months ended December 31, 2024 was 20.3% compared with 19.1% for the same period in 2023. 

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania.  QNB Bank currently operates twelve branches in Bucks, Lehigh and Montgomery Counties and offers commercial and retail banking services in the communities it serves.  In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC.  More information about QNB Corp. and QNB Bank is available at QNBBank.com.

Forward Looking Statement

This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995.  Actual results and trends could differ materially from those set forth in such statements due to various factors.  Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including "Item lA. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023.  You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise.  The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

Contacts:	David W. Freeman	Jeffrey Lehocky
	President & Chief Executive Officer	Chief Financial Officer
	215-538-5600 x-5619	215-538-5600 x-5716
	dfreeman@QNBbank.com	jlehocky@QNBbank.com

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands)
Balance Sheet (Period End)	12/31/24			9/30/24			6/30/24			3/31/24			12/31/23
Assets	$	1,870,894		$	1,841,563		$	1,761,487		$	1,716,081		$	1,706,318
Cash and cash equivalents		50,713			104,232			76,909			50,963			62,657
Investment securities
Debt securities, AFS		546,559			510,036			460,418			481,596			490,181
Equity securities		—			2,760			7,233			6,217			5,910
Loans held-for-sale		664			294			786			—			549
Loans receivable		1,216,048			1,171,361			1,162,310			1,122,616			1,093,533
Allowance for loan losses		(8,744	)		(8,987	)		(8,858	)		(8,738	)		(8,852	)
Net loans		1,207,304			1,162,374			1,153,452			1,113,878			1,084,681
Deposits		1,628,541			1,626,284			1,572,839			1,536,188			1,488,713
Demand, non-interest bearing		183,499			190,240			190,333			188,260			185,098
Interest-bearing demand, money market and savings		1,063,584			1,055,409			1,003,813			990,451			988,634
Time		381,458			380,635			378,693			357,477			314,981
Short-term borrowings		43,844			22,918			49,066			55,088			94,094
Long-term debt		40,000			30,000			30,000			20,000			20,000
Subordinated debt		39,068			39,030			—			—			—
Shareholders' equity		103,349			105,340			96,885			93,686			90,824
Asset Quality Data (Period End)
Non-accrual loans	$	1,975		$	1,696		$	2,078		$	2,001		$	1,940
Loans past due 90 days or more and still accruing		—			—			—			—			—
Non-performing loans		1,975			1,696			2,078			2,001			1,940
Other real estate owned and repossessed assets		—			—			—			—			—
Non-performing assets	$	1,975		$	1,696		$	2,078		$	2,001		$	1,940
Allowance for credit losses on loans	$	8,744		$	8,987		$	8,858		$	8,738		$	8,852
Non-performing loans / Loans excluding held-for-sale		0.16	%		0.14	%		0.18	%		0.18	%		0.18	%
Non-performing assets / Assets		0.11	%		0.09	%		0.12	%		0.12	%		0.11	%
Allowance for credit losses on loans / Loans excluding held-for-sale		0.72	%		0.77	%		0.76	%		0.78	%		0.81	%

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands, except per share data)	Three months ended,																Twelve months ended,
For the period:	12/31/24			9/30/24			6/30/24			3/31/24			12/31/23				12/31/24			12/31/23
Interest income	$	22,209		$	21,945		$	20,345		$	19,569		$	19,257			$	84,068		$	69,082
Interest expense		11,234			10,818			9,753			9,401			9,065				41,206			28,927
Net interest income		10,975			11,127			10,592			10,168			10,192				42,862			40,155
(Reversal in provision) provision for credit losses		(255	)		159			114			(86	)		293				(68	)		(844	)
Net interest income after provision  for credit losses		11,230			10,968			10,478			10,254			9,899				42,930			40,999
Non-interest income:
Fees for services to customers		454			469			427			420			414				1,770			1,651
ATM and debit card		708			691			705			636			687				2,740			2,735
Retail brokerage and advisory income		118			139			126			93			207				476			862
Net realized gain (loss) on investment securities		1,414			224			(1,096	)		377			(2,262	)			919			(2,077	)
Unrealized (loss) gain on  equity securities		(1,344	)		143			1,016			(30	)		904				(215	)		250
Net (loss) gain on sale of loans		(3	)		19			(2	)		15			11				29			16
Other		298			282			289			325			322				1,194			1,400
Total non-interest income		1,645			1,967			1,465			1,836			283				6,913			4,837
Non-interest expense:
Salaries and employee benefits		5,079			4,650			5,038			4,974			4,717				19,741			19,026
Net occupancy and furniture and equipment		1,653			1,531			1,481			1,515			1,477				6,180			5,825
Other		2,349			2,455			2,415			2,344			2,552				9,563			9,258
Total non-interest expense		9,081			8,636			8,934			8,833			8,746				35,484			34,109
Income before income taxes		3,794			4,299			3,009			3,257			1,436				14,359			11,727
Provision for income taxes		743			961			544			663			302				2,911			2,244
Net income	$	3,051		$	3,338		$	2,465		$	2,594		$	1,134			$	11,448		$	9,483
Share and Per Share Data:
Net income - basic	$	0.83		$	0.91		$	0.67		$	0.71		$	0.31			$	3.12		$	2.63
Net income - diluted	$	0.83		$	0.91		$	0.67		$	0.71		$	0.31			$	3.12		$	2.63
Book value	$	27.96		$	28.57		$	26.34		$	25.57		$	24.86			$	27.96		$	24.86
Cash dividends	$	0.37		$	0.37		$	0.37		$	0.37		$	0.37			$	1.48		$	1.48
Average common shares outstanding -basic		3,688,078			3,679,799			3,665,695			3,655,176			3,642,096				3,672,251			3,610,713
Average common shares outstanding -diluted		3,695,518			3,682,773			3,665,695			3,655,176			3,642,096				3,673,697			3,610,713
Selected Ratios:
Return on average assets		0.64	%		0.72	%		0.55	%		0.58	%		0.25	%			0.62	%		0.54	%
Return on average shareholders' equity		7.36	%		8.13	%		6.14	%		6.51	%		2.83	%			7.05	%		6.04	%
Net interest margin (tax equivalent)		2.38	%		2.48	%		2.46	%		2.39	%		2.36	%			2.43	%		2.39	%
Efficiency ratio (tax equivalent)		71.16	%		65.28	%		73.26	%		72.73	%		82.38	%			70.50	%		74.84	%
Average shareholders' equity to total average assets		8.63	%		8.80	%		8.97	%		8.98	%		8.93	%			8.84	%		8.99	%
Net loan charge-offs (recoveries)	$	1		$	25		$	12		$	21		$	(19	)		$	59		$	(238	)
Net loan charge-offs (recoveries) -  annualized / Average loans excluding  held-for-sale		0.00	%		0.01	%		0.00	%		0.01	%		-0.01	%			0.01	%		-0.02	%
Balance Sheet (Average)
Assets	$	1,908,914		$	1,856,034		$	1,798,040		$	1,778,585		$	1,779,627			$	1,835,650		$	1,748,029
Investment securities (AFS &  Equities)		614,329			552,323			569,135			578,615			604,292				578,626			628,380
Loans receivable		1,193,949			1,158,731			1,139,874			1,108,836			1,072,616				1,150,489			1,040,121
Deposits		1,635,629			1,600,925			1,542,661			1,497,692			1,490,244				1,569,494			1,455,517
Shareholders' equity		164,823			163,274			161,340			159,739			158,987				162,304			157,126

QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)
	Three Months Ended
	December 31, 2024										December 31, 2023
	Average			Average							Average			Average
	Balance			Rate			Interest				Balance			Rate			Interest
Assets
Investment securities:
U.S. Treasury	$	20,207			4.86	%	$	247			$	7,255			5.19	%	$	95
U.S. Government agencies		75,958			1.18			224				95,852			1.13			270
State and municipal		105,522			2.89			763				108,771			3.64			991
Mortgage-backed and CMOs		364,229			2.55			2,318				380,666			2.72			2,584
Corporate debt securities and mutual funds		47,774			5.78			691				6,708			4.40			74
Equities		639			4.30			7				5,040			4.98			63
Total investment securities		614,329			2.77			4,250				604,292			2.70			4,077
Loans:
Commercial real estate		845,700			5.69			12,104				751,629			5.18			9,809
Residential real estate		112,872			4.27			1,205				109,048			3.89			1,062
Home equity loans		68,735			6.76			1,168				60,599			6.76			1,032
Commercial and industrial		144,528			7.39			2,685				128,440			7.31			2,367
Consumer loans		3,505			9.16			81				3,732			7.71			72
Tax-exempt loans		18,799			4.00			189				19,556			3.66			180
Total loans, net of unearned income*		1,194,139			5.81			17,432				1,073,004			5.37			14,522
Other earning assets		52,988			5.02			669				57,432			5.52			800
Total earning assets		1,861,456			4.78			22,351				1,734,728			4.44			19,399
Cash and due from banks		13,747										13,539
Allowance for loan losses		(9,166	)									(8,668	)
Other assets		42,877										40,028
Total assets	$	1,908,914									$	1,779,627
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest-bearing demand	$	373,270			1.05	%		982			$	321,858			0.83	%		673
Municipals		166,210			4.32			1,807				141,524			4.78			1,704
Money market		251,758			3.14			1,985				223,646			3.39			1,910
Savings		273,473			1.28			882				305,502			1.27			979
Time < $100		177,265			4.00			1,781				144,386			3.39			1,234
Time $100 through $250		156,535			4.52			1,780				116,054			4.05			1,183
Time > $250		46,783			4.57			538				42,485			3.78			404
Total interest-bearing deposits		1,445,294			2.69			9,755				1,295,455			2.48			8,087
Short-term borrowings		20,667			2.65			138				97,402			3.08			755
Long-term debt		33,261			4.75			404				20,000			4.36			223
Subordinated debt		39,045			9.39			937				—			—			—
Total borrowings		92,973			6.33			1,479				117,402			3.31			978
Total interest-bearing liabilities		1,538,267			2.91			11,234				1,412,857			2.55			9,065
Non-interest-bearing deposits		190,335										194,789
Other liabilities		15,489										12,994
Shareholders' equity		164,823										158,987
Total liabilities and
shareholders' equity	$	1,908,914									$	1,779,627
Net interest rate spread					1.87	%									1.89	%
Margin/net interest income					2.38	%	$	11,117							2.36	%	$	10,334
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale

QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)
	Twelve Months Ended
	December 31, 2024										December 31, 2023
	Average			Average							Average			Average
	Balance			Rate			Interest				Balance			Rate			Interest
Assets
Investment securities:
U.S. Treasury	$	11,682			5.00	%	$	584			$	4,535			5.06	%	$	229
U.S. Government agencies		80,332			1.17			942				100,409			1.11			1,119
State and municipal		106,806			3.39			3,623				109,598			2.89			3,164
Mortgage-backed and CMOs		357,977			2.68			9,580				399,599			2.14			8,555
Corporate debt securities and mutual funds		17,560			5.76			1,012				6,655			4.40			293
Equities		4,269			3.88			166				7,584			4.22			320
Total investment securities		578,626			2.75			15,907				628,380			2.18			13,680
Loans:
Commercial real estate		810,525			5.53			44,805				713,294			4.89			34,900
Residential real estate		110,320			4.12			4,542				107,379			3.73			4,005
Home equity loans		65,714			6.81			4,475				58,144			6.52			3,794
Commercial and industrial		141,998			7.52			10,682				137,966			7.50			10,344
Consumer loans		3,635			8.12			295				3,889			7.29			283
Tax-exempt loans		18,507			3.90			721				19,876			3.56			707
Total loans, net of unearned income*		1,150,699			5.69			65,520				1,040,548			5.19			54,033
Other earning assets		59,734			5.36			3,199				34,816			5.61			1,953
Total earning assets		1,789,059			4.73			84,626				1,703,744			4.09			69,666
Cash and due from banks		13,847										13,918
Allowance for loan losses		(8,965	)									(8,820	)
Other assets		41,709										39,187
Total assets	$	1,835,650									$	1,748,029
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest-bearing demand	$	346,590			0.93	%		3,225			$	315,990			0.60	%		1,900
Municipals		146,446			4.64			6,794				131,610			4.46			5,867
Money market		237,071			3.45			8,181				183,004			2.64			4,823
Savings		285,011			1.28			3,651				348,878			1.20			4,187
Time < $100		170,998			3.98			6,808				121,622			2.63			3,194
Time $100 through $250		145,022			4.53			6,570				107,560			3.59			3,859
Time > $250		49,831			4.51			2,247				38,076			3.08			1,171
Total interest-bearing deposits		1,380,969			2.71			37,476				1,246,740			2.01			25,001
Short-term borrowings		48,526			2.37			1,148				108,862			3.01			3,273
Long-term debt		27,869			4.67			1,322				15,712			4.10			653
Subordinated debt		13,262			9.34			1,260				—			—			—
Total borrowings		89,657			4.16			3,730				124,574			3.15			3,926
Total interest-bearing liabilities		1,470,626			2.80			41,206				1,371,314			2.11			28,927
Non-interest-bearing deposits		188,525										208,777
Other liabilities		14,195										10,812
Shareholders' equity		162,304										157,126
Total liabilities and
shareholders' equity	$	1,835,650									$	1,748,029
Net interest rate spread					1.93	%									1.98	%
Margin/net interest income					2.43	%	$	43,420							2.39	%	$	40,739
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale

FAQ

What was QNBC's net income for Q4 2024?

QNBC reported net income of $3,051,000 ($0.83 per diluted share) for Q4 2024.

How much did QNBC's loan portfolio grow in 2024?

QNBC's loan portfolio grew by $122,515,000 or 11.2% to $1,216,048,000 in 2024.

What was QNBC's deposit growth in 2024?

QNBC's total deposits increased by $139,828,000 or 9.4% to $1,628,541,000 in 2024.

How did QNBC's asset quality metrics change in 2024?

Non-performing loans were 0.16% of loans receivable at the end of 2024, compared to 0.18% in 2023, while the allowance for credit losses decreased to 0.72% from 0.81%.

What was the size of QNBC's subordinated debt issuance in 2024?

QNBC issued $40,000,000 in subordinated debt during the third quarter of 2024.