QUAKERTOWN, Pa., Oct. 22, 2024 (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 third quarter of 2024 of $3,338,000, or $0.91 per share on a diluted basis. This compares to net income of $2,344,000, or $0.65 per share on a diluted basis, for the same period in 2023. For the nine months ended September 30, 2024, QNB reported net income of $8,397,000, or $2.29 per share on a diluted basis. This compares to net income of $8,349,000, or $2.32 per share on a diluted basis, reported for the same period in 2023.
For the third quarter of 2024, the annualized rate of return on average assets and average shareholders’ equity was 0.72% and 8.13%, respectively, compared with 0.52% and 5.88%, respectively, for the third quarter 2023.
The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended September 30, 2024, in comparison with the same period in 2023, due primarily to improvement in the interest margin causing a $1,182,000 increase in net interest income, decreased provision for credit losses on loans and unfunded commitments of $300,000 and a decrease in non-interest expense of $37,000; this was partly offset by a decrease in non-interest income of $96,000. The change in contribution from QNB Corp. for the quarter ended September 30, 2024, compared with the same period in 2023, is primarily due to more gains on sales from the equities portfolio and less unrealized losses on the equity portfolio; partly offset by interest expense on subordinated debt held at the holding company.
The following table presents disaggregated net income (loss):
|
Three months ended, |
|
|
|
|
|
Nine months ended, |
|
|
|
|
|
9/30/2024 |
|
|
9/30/2023 |
|
|
Variance |
|
|
9/30/2024 |
|
|
9/30/2023 |
|
|
Variance |
|
| QNB Bank |
$ |
3,394,000 |
|
|
$ |
2,334,000 |
|
|
$ |
1,060,000 |
|
|
$ |
8,466,000 |
|
|
$ |
8,568,000 |
|
|
$ |
(102,000 |
) |
| QNB Corp |
|
(56,000 |
) |
|
|
10,000 |
|
|
|
(66,000 |
) |
|
|
(69,000 |
) |
|
|
(219,000 |
) |
|
|
150,000 |
|
| Consolidated net income |
$ |
3,338,000 |
|
|
$ |
2,344,000 |
|
|
$ |
994,000 |
|
|
$ |
8,397,000 |
|
|
$ |
8,349,000 |
|
|
$ |
48,000 |
|
|
Total assets as of September 30, 2024 were $1,841,563,000 compared with $1,706,318,000 at December 31, 2023. Total available-for-sale debt securities increased $19,855,000, or 7.9%, to $510,036,000, primarily due to purchases of higher-yielding securities partly offset be the sales of lower-yielding securities and payments. Loans receivable increased $77,828,000, or 7.1%, to $1,171,361,000. Total deposits increased $137,571,000, or 9.2%, to $1,626,284,000. Short-term borrowing declined $71,176,000, or 75.6%. During the third quarter of 2024, the QNB Corp. issued $40,000,000 of subordinated debt; the carrying value net of deferred costs was $39,030,000 at September 30, 2024.
“We continue to experience strong growth in customer loan and deposit balances, which has led to improvement in our net interest income and margin. Growth combined with solid liquidity and good asset quality, has our franchise positioned for positive momentum,” stated David W. Freeman, President and Chief Executive Officer. Freeman continued, “Our successful Sub-Debt issuance has further strengthened our Capital position and will enable continued growth in the future. I am optimistic that we are well positioned to capitalize on the foundation we have built.”
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended September 30, 2024 totaled $11,127,000, an increase of $914,000, from the same period in 2023. Net interest margin was 2.48% for the third quarter of 2024 and 2.38% for the same period in 2023. Net interest margin was 2.45% for the nine months ended September 30, 2024, compared with 2.40% for the same period in 2023.
The yield on earning assets was 4.86% for the third quarter 2024, compared with 4.28% in the third quarter of 2023; an increase of 58 basis points. For the nine-month period ended September 30, 2024, the yield on earning assets was 4.71%, compared with 3.97% for the same period in 2023. The cost of interest-bearing liabilities was 2.90% for the quarter ended September 30, 2024, compared with 2.35% for the same period in 2023, an increase of 55 basis points. For the nine-month period ended September 30, 2024, the cost of interest-bearing liabilities was 2.77% compared with 1.96% for the same period in 2023.
Proceeds from the growth in average deposits and proceeds from the issuance of subordinated debt and the sale and payments received on investment securities over the past year were invested in loans and other interest earning assets, 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 third quarter 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 47 basis-point increase in the yield on loans. The decline in the available-for-sale portfolio was primarily in mortgage-backed securities, which comprised 19% of average earnings assets in the third quarter of 2024 compared with 23% for the same period in 2023. The 40-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, contributing to the increase in net interest margin. The 55 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 55 basis points.
Asset Quality, Provision for Credit Losses on Loans and Allowance for Credit Losses
QNB recorded $154,000 in provision for credit losses on loans in the third quarter of 2024 compared to $452,000 in provision in the third quarter of 2023. QNB's allowance for credit losses on loans of $8,987,000 represents 0.77% of loans receivable at September 30, 2024, compared to $8,852,000, or 0.81% of loans receivable at December 31, 2023. Net loan charge-offs were $25,000 for the quarter ended September 30, 2024, compared with $275,000 for the same period in 2023. Annualized net loan charge-offs for the quarter ended September 30, 2024 were 0.01% and 0.10% for the quarter ended September 30, 2023, of average loans receivable, respectively. Net loan charge-offs were $58,000 for the nine months ended September 30, 2024, compared with recoveries of $219,000 for the same period in 2023 were primarily due to two large commercial customers. Annualized net loan charge-offs for the nine months ended September 30, 2024 were 0.01% compared to annualized net recoveries of 0.03% 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 $1,696,000, or 0.14% of loans receivable at September 30, 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 September 30, 2024, $1,021,000, 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 $26,883,000 at September 30, 2024, compared with $11,747,000 at December 31, 2023; these were comprised primarily of commercial real estate loans.
Non-Interest Income
Total non-interest income was $1,967,000 for the third quarter of 2024 compared with $1,755,000 for the same period in 2023. There was a net realized gain of $224,000 on the sale of investments for the quarter ended September 30, 2024 compared to a net gain of $131,000 on the sales of securities in the same period in 2023. Unrealized net gain on investment equity securities was $143,000 for the quarter ended September 30, 2024 compared to a net loss of $138,000 for the same period in 2023. During the third quarter of 2024 the Bank sold lower yielding securities to better position its net interest margin.
Fees for service to customers increased $48,000 for the quarter ended September 30, 2024, as overdraft fees decreased $16,000 and other deposit-related fees increased $32,000. Retail brokerage and advisory income decreased $80,000 to $139,000 for the same period, due to a decrease in customer balances following employee turnover. Other non-interest income decreased $151,000 for the same period due to a sales tax refund of $115,000 received in 2023 and a decline in merchant fee income of $16,000 due to value.
For the nine months ended September 30, 2024, non-interest income was $5,268,000 an increase of $714,000 compared to the same period in 2023, primarily due to the change in fair value of the equities portfolio of $1,783,000. 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; the fair value of the Visa C shares was a gain of $1,419,000 at September 30, 2024. Realized loss on sale of securities was $495,000, a decline of $680,000 for the nine months ended September 30, 2024, compared with the same period in 2023. Net gain on sale of loans increased $27,000 when comparing the nine months ended September 30, 2024 with the same period in 2023. Increases in non-interest income for the nine months ended September 30, 2024 compared to the same period in 2023 comprise: fees for services to customers which increased $79,000. Decreases in non-interest income comprised: ATM and debit card fees, retail brokerage and advisory income, and other which decreased $16,000, $297,000 and $182,000, respectively. Other non-interest income decreased the $182,000 due primarily to a sales tax refund of $115,000 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 $8,636,000 for the third quarter of 2024 compared with $8,671,000 for the same period in 2023. Salaries and benefits expense decreased $321,000, or 6.5%, to $4,650,000 when comparing the two quarters. Salary expense and related payroll taxes increased $77,000, or 1.9%, to $4,209,000 during the third quarter of 2024 compared to the same period in 2023. Benefits expense decreased $400,000, or 81.1%, 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 $27,000, or 1.8%, to $1,531,000 for the third quarter of 2024 primarily due to software maintenance costs partly offset by a reduction in repairs and maintenance. Other non-interest expense increased $259,000, or 11.8%, when comparing third quarter of 2024 with the same period in 2023 due to an increase in Bank shares tax of $89,000, due to the timing of tax credits received, an increase of $50,000 in debit card expense, an increase in FDIC insurance of $67,000, an increase in third-party services of $69,000, and an increase in write-offs due to fraud on customer accounts of $44,000, partly offset by decreases in director fees of $16,000, a decrease in marketing expense of $19,000 and a reduction loan-related costs of $23,000.
For the nine months ended September 30, 2024, non-interest expense was $26,403,000, an increase of $1,040,000, or 4.1%, compared to the same period in 2023.
Income Taxes
Provision for income taxes increased $467,000 to $961,000 in the third quarter of 2024 due to increased pre-tax income, compared with the same period in 2023. The effective tax rates for the quarter ended September 30, 2024 was 22.4% compared with 17.4% for the same period in 2023. The effective tax rates for the nine months ended September 30, 2024 was 20.5% compared with 18.9% 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.
| QNB Corp. |
|
| Consolidated Selected Financial Data (unaudited) |
|
| (Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
| Balance Sheet (Period End) |
9/30/24 |
|
6/30/24 |
|
3/31/24 |
|
12/31/23 |
|
9/30/23 |
|
| Assets |
$ |
1,841,563 |
|
$ |
1,761,487 |
|
$ |
1,716,081 |
|
$ |
1,706,318 |
|
$ |
1,684,392 |
|
| Cash and cash equivalents |
|
104,232 |
|
|
76,909 |
|
|
50,963 |
|
|
62,657 |
|
|
55,141 |
|
| Investment securities |
|
|
|
|
|
|
|
|
|
|
| Debt securities, AFS |
|
510,036 |
|
|
460,418 |
|
|
481,596 |
|
|
490,181 |
|
|
505,390 |
|
| Equity securities |
|
2,760 |
|
|
7,233 |
|
|
6,217 |
|
|
5,910 |
|
|
4,765 |
|
| Loans held-for-sale |
|
294 |
|
|
786 |
|
|
— |
|
|
549 |
|
|
446 |
|
| Loans receivable |
|
1,171,361 |
|
|
1,162,310 |
|
|
1,122,616 |
|
|
1,093,533 |
|
|
1,060,450 |
|
| Allowance for loan losses |
|
(8,987 |
) |
|
(8,858 |
) |
|
(8,738 |
) |
|
(8,852 |
) |
|
(8,542 |
) |
| Net loans |
|
1,162,374 |
|
|
1,153,452 |
|
|
1,113,878 |
|
|
1,084,681 |
|
|
1,051,908 |
|
| Deposits |
|
1,626,284 |
|
|
1,572,839 |
|
|
1,536,188 |
|
|
1,488,713 |
|
|
1,483,333 |
|
| Demand, non-interest bearing |
|
190,240 |
|
|
190,333 |
|
|
188,260 |
|
|
185,098 |
|
|
192,226 |
|
| Interest-bearing demand, money market and savings |
|
1,055,409 |
|
|
1,003,813 |
|
|
990,451 |
|
|
988,634 |
|
|
1,000,921 |
|
| Time |
|
380,635 |
|
|
378,693 |
|
|
357,477 |
|
|
314,981 |
|
|
290,186 |
|
| Short-term borrowings |
|
22,918 |
|
|
49,066 |
|
|
55,088 |
|
|
94,094 |
|
|
96,703 |
|
| Long-term debt |
|
30,000 |
|
|
30,000 |
|
|
20,000 |
|
|
20,000 |
|
|
20,000 |
|
| Subordinated debt |
|
39,030 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Shareholders' equity |
|
105,340 |
|
|
96,885 |
|
|
93,686 |
|
|
90,824 |
|
|
74,081 |
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Quality Data (Period End) |
|
|
|
|
|
|
|
|
|
|
| Non-accrual loans |
$ |
1,696 |
|
$ |
2,078 |
|
$ |
2,001 |
|
$ |
1,940 |
|
$ |
1,893 |
|
| Loans past due 90 days or more and still accruing |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Non-performing loans |
|
1,696 |
|
|
2,078 |
|
|
2,001 |
|
|
1,940 |
|
|
1,893 |
|
| Other real estate owned and repossessed assets |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Non-performing assets |
$ |
1,696 |
|
$ |
2,078 |
|
$ |
2,001 |
|
$ |
1,940 |
|
$ |
1,893 |
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses on loans |
$ |
8,987 |
|
$ |
8,858 |
|
$ |
8,738 |
|
$ |
8,852 |
|
$ |
8,542 |
|
|
|
|
|
|
|
|
|
|
|
|
| Non-performing loans / Loans excluding held-for-sale |
|
0.14 |
% |
|
0.18 |
% |
|
0.18 |
% |
|
0.18 |
% |
|
0.18 |
% |
| Non-performing assets / Assets |
|
0.09 |
% |
|
0.12 |
% |
|
0.12 |
% |
|
0.11 |
% |
|
0.11 |
% |
| Allowance for credit losses on loans / Loans excluding held-for-sale |
|
0.77 |
% |
|
0.76 |
% |
|
0.78 |
% |
|
0.81 |
% |
|
0.81 |
% |
| QNB Corp. |
| Consolidated Selected Financial Data (unaudited) |
| (Dollars in thousands, except per share data) |
Three months ended, |
|
Nine months ended, |
| For the period: |
9/30/24 |
6/30/24 |
3/31/24 |
12/31/23 |
9/30/23 |
|
9/30/24 |
9/30/23 |
| Interest income |
$ |
21,945 |
|
$ |
20,345 |
|
$ |
19,569 |
|
$ |
19,257 |
|
$ |
18,497 |
|
|
$ |
61,859 |
|
$ |
49,825 |
|
| Interest expense |
|
10,818 |
|
|
9,753 |
|
|
9,401 |
|
|
9,065 |
|
|
8,284 |
|
|
|
29,972 |
|
|
19,862 |
|
| Net interest income |
|
11,127 |
|
|
10,592 |
|
|
10,168 |
|
|
10,192 |
|
|
10,213 |
|
|
|
31,887 |
|
|
29,963 |
|
| Provision for credit losses |
|
159 |
|
|
114 |
|
|
(86 |
) |
|
293 |
|
|
459 |
|
|
|
187 |
|
|
(1,137 |
) |
| Net interest income after provision for credit losses |
|
10,968 |
|
|
10,478 |
|
|
10,254 |
|
|
9,899 |
|
|
9,754 |
|
|
|
31,700 |
|
|
31,100 |
|
| Non-interest income: |
|
|
|
|
|
|
|
|
| Fees for services to customers |
|
469 |
|
|
427 |
|
|
420 |
|
|
414 |
|
|
421 |
|
|
|
1,316 |
|
|
1,237 |
|
| ATM and debit card |
|
691 |
|
|
705 |
|
|
636 |
|
|
687 |
|
|
685 |
|
|
|
2,032 |
|
|
2,048 |
|
| Retail brokerage and advisory income |
|
139 |
|
|
126 |
|
|
93 |
|
|
207 |
|
|
219 |
|
|
|
358 |
|
|
655 |
|
| Net realized (loss) gain on investment securities |
|
224 |
|
|
(1,096 |
) |
|
377 |
|
|
(2,262 |
) |
|
131 |
|
|
|
(495 |
) |
|
185 |
|
| Unrealized gain (loss) on equity securities |
|
143 |
|
|
1,016 |
|
|
(30 |
) |
|
904 |
|
|
(138 |
) |
|
|
1,129 |
|
|
(654 |
) |
| Net gain on sale of loans |
|
19 |
|
|
(2 |
) |
|
15 |
|
|
11 |
|
|
4 |
|
|
|
32 |
|
|
5 |
|
| Other |
|
282 |
|
|
289 |
|
|
325 |
|
|
322 |
|
|
433 |
|
|
|
896 |
|
|
1,078 |
|
| Total non-interest income |
|
1,967 |
|
|
1,465 |
|
|
1,836 |
|
|
283 |
|
|
1,755 |
|
|
|
5,268 |
|
|
4,554 |
|
| Non-interest expense: |
|
|
|
|
|
|
|
|
| Salaries and employee benefits |
|
4,650 |
|
|
5,038 |
|
|
4,974 |
|
|
4,717 |
|
|
4,971 |
|
|
|
14,662 |
|
|
14,309 |
|
| Net occupancy and furniture and equipment |
|
1,531 |
|
|
1,481 |
|
|
1,515 |
|
|
1,477 |
|
|
1,504 |
|
|
|
4,527 |
|
|
4,348 |
|
| Other |
|
2,455 |
|
|
2,415 |
|
|
2,344 |
|
|
2,552 |
|
|
2,196 |
|
|
|
7,214 |
|
|
6,706 |
|
| Total non-interest expense |
|
8,636 |
|
|
8,934 |
|
|
8,833 |
|
|
8,746 |
|
|
8,671 |
|
|
|
26,403 |
|
|
25,363 |
|
| Income before income taxes |
|
4,299 |
|
|
3,009 |
|
|
3,257 |
|
|
1,436 |
|
|
2,838 |
|
|
|
10,565 |
|
|
10,291 |
|
| Provision for income taxes |
|
961 |
|
|
544 |
|
|
663 |
|
|
302 |
|
|
494 |
|
|
|
2,168 |
|
|
1,942 |
|
| Net income |
$ |
3,338 |
|
$ |
2,465 |
|
$ |
2,594 |
|
$ |
1,134 |
|
$ |
2,344 |
|
|
$ |
8,397 |
|
$ |
8,349 |
|
|
|
|
|
|
|
|
|
|
| Share and Per Share Data: |
|
|
|
|
|
|
|
|
| Net income - basic |
$ |
0.91 |
|
$ |
0.67 |
|
$ |
0.71 |
|
$ |
0.31 |
|
$ |
0.65 |
|
|
$ |
2.29 |
|
$ |
2.32 |
|
| Net income - diluted |
$ |
0.91 |
|
$ |
0.67 |
|
$ |
0.71 |
|
$ |
0.31 |
|
$ |
0.65 |
|
|
$ |
2.29 |
|
$ |
2.32 |
|
| Book value |
$ |
28.57 |
|
$ |
26.34 |
|
$ |
25.57 |
|
$ |
24.86 |
|
$ |
20.35 |
|
|
$ |
28.57 |
|
$ |
20.35 |
|
| Cash dividends |
$ |
0.37 |
|
$ |
0.37 |
|
$ |
0.37 |
|
$ |
0.37 |
|
$ |
0.37 |
|
|
$ |
1.11 |
|
$ |
1.11 |
|
| Average common shares outstanding -basic |
|
3,679,799 |
|
|
3,665,695 |
|
|
3,655,176 |
|
|
3,642,096 |
|
|
3,613,230 |
|
|
|
3,666,937 |
|
|
3,600,137 |
|
| Average common shares outstanding -diluted |
|
3,682,773 |
|
|
3,665,695 |
|
|
3,655,176 |
|
|
3,642,096 |
|
|
3,613,230 |
|
|
|
3,666,937 |
|
|
3,600,137 |
|
| Selected Ratios: |
|
|
|
|
|
|
|
|
| Return on average assets |
|
0.72 |
% |
|
0.55 |
% |
|
0.59 |
% |
|
0.25 |
% |
|
0.52 |
% |
|
|
0.62 |
% |
|
0.64 |
% |
| Return on average shareholders' equity |
|
8.13 |
% |
|
6.14 |
% |
|
6.53 |
% |
|
2.83 |
% |
|
5.88 |
% |
|
|
6.95 |
% |
|
7.13 |
% |
| Net interest margin (tax equivalent) |
|
2.48 |
% |
|
2.46 |
% |
|
2.39 |
% |
|
2.36 |
% |
|
2.38 |
% |
|
|
2.45 |
% |
|
2.40 |
% |
| Efficiency ratio (tax equivalent) |
|
65.28 |
% |
|
73.26 |
% |
|
72.73 |
% |
|
82.38 |
% |
|
71.59 |
% |
|
|
70.28 |
% |
|
72.55 |
% |
| Average shareholders' equity to total average assets |
|
8.80 |
% |
|
8.97 |
% |
|
8.98 |
% |
|
8.93 |
% |
|
8.91 |
% |
|
|
8.92 |
% |
|
9.01 |
% |
| Net loan charge-offs (recoveries) |
$ |
25 |
|
$ |
12 |
|
$ |
21 |
|
$ |
(19 |
) |
$ |
275 |
|
|
$ |
58 |
|
$ |
(219 |
) |
| Net loan charge-offs (recoveries) - annualized / Average loans excluding held-for-sale |
|
0.01 |
% |
|
0.00 |
% |
|
0.01 |
% |
|
-0.01 |
% |
|
0.10 |
% |
|
|
0.01 |
% |
|
-0.03 |
% |
| Balance Sheet (Average) |
|
|
|
|
|
|
|
|
| Assets |
$ |
1,856,034 |
|
$ |
1,798,040 |
|
$ |
1,778,585 |
|
$ |
1,779,627 |
|
$ |
1,773,138 |
|
|
$ |
1,811,051 |
|
$ |
1,737,417 |
|
| Investment securities (AFS & Equities) |
|
552,323 |
|
|
569,135 |
|
|
578,615 |
|
|
604,292 |
|
|
624,423 |
|
|
|
566,638 |
|
|
636,498 |
|
| Loans receivable |
|
1,158,731 |
|
|
1,139,874 |
|
|
1,108,836 |
|
|
1,072,616 |
|
|
1,039,170 |
|
|
|
1,135,898 |
|
|
1,029,042 |
|
| Deposits |
|
1,600,925 |
|
|
1,542,661 |
|
|
1,497,692 |
|
|
1,490,244 |
|
|
1,488,632 |
|
|
|
1,547,290 |
|
|
1,443,816 |
|
| Shareholders' equity |
|
163,274 |
|
|
161,340 |
|
|
159,739 |
|
|
158,987 |
|
|
158,063 |
|
|
|
161,458 |
|
|
156,499 |
|
| QNB Corp. (Consolidated) |
|
| Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, 2024 |
|
|
September 30, 2023 |
|
|
Average |
|
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Balance |
|
Rate |
|
Interest |
|
|
Balance |
|
Rate |
|
Interest |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Treasury |
$ |
12,811 |
|
|
4.94 |
% |
$ |
159 |
|
|
$ |
7,111 |
|
|
5.17 |
% |
$ |
92 |
|
| U.S. Government agencies |
|
75,956 |
|
|
1.18 |
|
|
224 |
|
|
|
101,947 |
|
|
1.11 |
|
|
283 |
|
| State and municipal |
|
105,674 |
|
|
3.74 |
|
|
989 |
|
|
|
109,157 |
|
|
3.30 |
|
|
901 |
|
| Mortgage-backed and CMOs |
|
345,119 |
|
|
2.84 |
|
|
2,453 |
|
|
|
394,607 |
|
|
2.53 |
|
|
2,500 |
|
| Corporate debt securities and mutual funds |
|
8,804 |
|
|
5.97 |
|
|
131 |
|
|
|
6,648 |
|
|
4.40 |
|
|
73 |
|
| Equities |
|
3,959 |
|
|
4.61 |
|
|
46 |
|
|
|
4,953 |
|
|
4.70 |
|
|
59 |
|
| Total investment securities |
|
552,323 |
|
|
2.90 |
|
|
4,002 |
|
|
|
624,423 |
|
|
2.50 |
|
|
3,908 |
|
| Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial real estate |
|
819,091 |
|
|
5.60 |
|
|
11,525 |
|
|
|
722,833 |
|
|
5.10 |
|
|
9,288 |
|
| Residential real estate |
|
110,760 |
|
|
4.21 |
|
|
1,165 |
|
|
|
107,332 |
|
|
3.81 |
|
|
1,022 |
|
| Home equity loans |
|
66,239 |
|
|
6.84 |
|
|
1,138 |
|
|
|
57,694 |
|
|
6.65 |
|
|
967 |
|
| Commercial and industrial |
|
140,980 |
|
|
7.61 |
|
|
2,696 |
|
|
|
128,601 |
|
|
7.23 |
|
|
2,343 |
|
| Consumer loans |
|
3,613 |
|
|
7.75 |
|
|
70 |
|
|
|
3,823 |
|
|
7.53 |
|
|
73 |
|
| Tax-exempt loans |
|
18,305 |
|
|
3.88 |
|
|
179 |
|
|
|
19,630 |
|
|
3.59 |
|
|
178 |
|
| Total loans, net of unearned income* |
|
1,158,988 |
|
|
5.76 |
|
|
16,773 |
|
|
|
1,039,913 |
|
|
5.29 |
|
|
13,871 |
|
| Other earning assets |
|
95,780 |
|
|
5.43 |
|
|
1,307 |
|
|
|
62,420 |
|
|
5.48 |
|
|
862 |
|
| Total earning assets |
|
1,807,091 |
|
|
4.86 |
|
|
22,082 |
|
|
|
1,726,756 |
|
|
4.28 |
|
|
18,641 |
|
| Cash and due from banks |
|
15,540 |
|
|
|
|
|
|
|
15,679 |
|
|
|
|
|
| Allowance for loan losses |
|
(8,860 |
) |
|
|
|
|
|
|
(8,396 |
) |
|
|
|
|
| Other assets |
|
42,263 |
|
|
|
|
|
|
|
39,099 |
|
|
|
|
|
| Total assets |
$ |
1,856,034 |
|
|
|
|
|
|
$ |
1,773,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand |
$ |
356,763 |
|
|
1.00 |
% |
|
898 |
|
|
$ |
319,335 |
|
|
0.74 |
% |
|
600 |
|
| Municipals |
|
154,619 |
|
|
4.69 |
|
|
1,823 |
|
|
|
157,391 |
|
|
4.63 |
|
|
1,837 |
|
| Money market |
|
238,494 |
|
|
3.56 |
|
|
2,132 |
|
|
|
201,277 |
|
|
3.01 |
|
|
1,527 |
|
| Savings |
|
278,247 |
|
|
1.28 |
|
|
896 |
|
|
|
325,567 |
|
|
1.27 |
|
|
1,038 |
|
| Time < $100 |
|
178,228 |
|
|
4.12 |
|
|
1,846 |
|
|
|
128,884 |
|
|
2.92 |
|
|
947 |
|
| Time $100 through $250 |
|
152,416 |
|
|
4.64 |
|
|
1,777 |
|
|
|
106,920 |
|
|
3.69 |
|
|
996 |
|
| Time > $250 |
|
49,506 |
|
|
4.61 |
|
|
573 |
|
|
|
43,856 |
|
|
3.41 |
|
|
377 |
|
| Total interest-bearing deposits |
|
1,408,273 |
|
|
2.81 |
|
|
9,945 |
|
|
|
1,283,230 |
|
|
2.26 |
|
|
7,322 |
|
| Short-term borrowings |
|
34,078 |
|
|
2.18 |
|
|
186 |
|
|
|
95,568 |
|
|
3.07 |
|
|
740 |
|
| Long-term debt |
|
30,000 |
|
|
4.75 |
|
|
364 |
|
|
|
20,000 |
|
|
4.36 |
|
|
222 |
|
| Subordinated debt |
|
13,716 |
|
|
9.42 |
|
|
323 |
|
|
|
— |
|
|
— |
|
|
— |
|
| Total interest-bearing liabilities |
|
1,486,067 |
|
|
2.90 |
|
|
10,818 |
|
|
|
1,398,798 |
|
|
2.35 |
|
|
8,284 |
|
| Non-interest-bearing deposits |
|
192,652 |
|
|
|
|
|
|
|
205,402 |
|
|
|
|
|
| Other liabilities |
|
14,041 |
|
|
|
|
|
|
|
10,875 |
|
|
|
|
|
| Shareholders' equity |
|
163,274 |
|
|
|
|
|
|
|
158,063 |
|
|
|
|
|
| Total liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
| shareholders' equity |
$ |
1,856,034 |
|
|
|
|
|
|
$ |
1,773,138 |
|
|
|
|
|
| Net interest rate spread |
|
|
|
1.96 |
% |
|
|
|
|
|
|
1.93 |
% |
|
|
| Margin/net interest income |
|
|
|
2.48 |
% |
$ |
11,264 |
|
|
|
|
|
2.38 |
% |
$ |
10,357 |
|
| 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
September 30, 2024 |
|
|
September 30, 2023 |
|
|
Average |
|
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Balance |
|
Rate |
|
Interest |
|
|
Balance |
|
Rate |
|
Interest |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Treasury |
$ |
8,820 |
|
|
5.10 |
% |
$ |
337 |
|
|
$ |
3,618 |
|
|
4.97 |
% |
$ |
134 |
|
| U.S. Government agencies |
|
81,800 |
|
|
1.17 |
|
|
718 |
|
|
|
101,945 |
|
|
1.11 |
|
|
849 |
|
| State and municipal |
|
107,237 |
|
|
3.56 |
|
|
2,860 |
|
|
|
109,877 |
|
|
2.64 |
|
|
2,173 |
|
| Mortgage-backed and CMOs |
|
355,878 |
|
|
2.72 |
|
|
7,262 |
|
|
|
405,979 |
|
|
1.96 |
|
|
5,971 |
|
| Corporate debt securities and mutual funds |
|
7,416 |
|
|
5.78 |
|
|
321 |
|
|
|
6,637 |
|
|
4.41 |
|
|
219 |
|
| Equities |
|
5,487 |
|
|
3.87 |
|
|
159 |
|
|
|
8,442 |
|
|
4.07 |
|
|
257 |
|
| Total investment securities |
|
566,638 |
|
|
2.74 |
|
|
11,657 |
|
|
|
636,498 |
|
|
2.01 |
|
|
9,603 |
|
| Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial real estate |
|
798,714 |
|
|
5.47 |
|
|
32,701 |
|
|
|
700,375 |
|
|
4.79 |
|
|
25,091 |
|
| Residential real estate |
|
109,463 |
|
|
4.07 |
|
|
3,337 |
|
|
|
106,817 |
|
|
3.67 |
|
|
2,943 |
|
| Home equity loans |
|
64,700 |
|
|
6.83 |
|
|
3,307 |
|
|
|
57,317 |
|
|
6.44 |
|
|
2,762 |
|
| Commercial and industrial |
|
141,148 |
|
|
7.57 |
|
|
7,997 |
|
|
|
141,176 |
|
|
7.55 |
|
|
7,977 |
|
| Consumer loans |
|
3,679 |
|
|
7.78 |
|
|
214 |
|
|
|
3,942 |
|
|
7.15 |
|
|
211 |
|
| Tax-exempt loans |
|
18,410 |
|
|
3.86 |
|
|
532 |
|
|
|
19,984 |
|
|
3.53 |
|
|
527 |
|
| Total loans, net of unearned income* |
|
1,136,114 |
|
|
5.65 |
|
|
48,088 |
|
|
|
1,029,611 |
|
|
5.13 |
|
|
39,511 |
|
| Other earning assets |
|
61,999 |
|
|
5.45 |
|
|
2,530 |
|
|
|
27,195 |
|
|
5.67 |
|
|
1,153 |
|
| Total earning assets |
|
1,764,751 |
|
|
4.71 |
|
|
62,275 |
|
|
|
1,693,304 |
|
|
3.97 |
|
|
50,267 |
|
| Cash and due from banks |
|
13,880 |
|
|
|
|
|
|
|
14,046 |
|
|
|
|
|
| Allowance for loan losses |
|
(8,897 |
) |
|
|
|
|
|
|
(8,871 |
) |
|
|
|
|
| Other assets |
|
41,317 |
|
|
|
|
|
|
|
38,938 |
|
|
|
|
|
| Total assets |
$ |
1,811,051 |
|
|
|
|
|
|
$ |
1,737,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand |
$ |
337,632 |
|
|
0.89 |
% |
|
2,243 |
|
|
$ |
314,012 |
|
|
0.52 |
% |
|
1,227 |
|
| Municipals |
|
139,810 |
|
|
4.76 |
|
|
4,987 |
|
|
|
128,270 |
|
|
4.34 |
|
|
4,163 |
|
| Money market |
|
232,140 |
|
|
3.57 |
|
|
6,196 |
|
|
|
169,308 |
|
|
2.30 |
|
|
2,913 |
|
| Savings |
|
288,885 |
|
|
1.28 |
|
|
2,769 |
|
|
|
363,496 |
|
|
1.18 |
|
|
3,208 |
|
| Time < $100 |
|
168,894 |
|
|
3.98 |
|
|
5,027 |
|
|
|
113,951 |
|
|
2.30 |
|
|
1,960 |
|
| Time $100 through $250 |
|
141,156 |
|
|
4.53 |
|
|
4,790 |
|
|
|
104,697 |
|
|
3.42 |
|
|
2,676 |
|
| Time > $250 |
|
50,855 |
|
|
4.49 |
|
|
1,709 |
|
|
|
36,590 |
|
|
2.80 |
|
|
767 |
|
| Total interest-bearing deposits |
|
1,359,372 |
|
|
2.72 |
|
|
27,721 |
|
|
|
1,230,324 |
|
|
1.84 |
|
|
16,914 |
|
| Short-term borrowings |
|
57,880 |
|
|
2.33 |
|
|
1,010 |
|
|
|
112,724 |
|
|
2.99 |
|
|
2,518 |
|
| Long-term debt |
|
26,058 |
|
|
4.63 |
|
|
918 |
|
|
|
14,267 |
|
|
3.98 |
|
|
430 |
|
| Subordinated debt |
|
4,605 |
|
|
9.35 |
|
|
323 |
|
|
|
— |
|
|
— |
|
|
— |
|
| Total interest-bearing liabilities |
|
1,447,915 |
|
|
2.77 |
|
|
29,972 |
|
|
|
1,357,315 |
|
|
1.96 |
|
|
19,862 |
|
| Non-interest-bearing deposits |
|
187,918 |
|
|
|
|
|
|
|
213,492 |
|
|
|
|
|
| Other liabilities |
|
13,760 |
|
|
|
|
|
|
|
10,111 |
|
|
|
|
|
| Shareholders' equity |
|
161,458 |
|
|
|
|
|
|
|
156,499 |
|
|
|
|
|
| Total liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
| shareholders' equity |
$ |
1,811,051 |
|
|
|
|
|
|
$ |
1,737,417 |
|
|
|
|
|
| Net interest rate spread |
|
|
|
1.94 |
% |
|
|
|
|
|
|
2.01 |
% |
|
|
| Margin/net interest income |
|
|
|
2.45 |
% |
$ |
32,303 |
|
|
|
|
|
2.40 |
% |
$ |
30,405 |
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contacts David W. Freeman President & Chief Executive Officer 215-538-5600 x-5619 dfreeman@QNBbank.com Jeffrey Lehocky Chief Financial Officer 215-538-5600 x-5716 jlehocky@QNBbank.com
