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QNB Corp. Reports Earnings for Third Quarter 2024

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QNB Corp. (QNBC) reported net income of $3,338,000, or $0.91 per diluted share, for the third quarter of 2024, compared to $2,344,000, or $0.65 per diluted share, for the same period in 2023. The company's performance improved due to:

1. A $1,182,000 increase in net interest income
2. A $300,000 decrease in provision for credit losses
3. A $37,000 decrease in non-interest expense

These gains were partially offset by a $96,000 decrease in non-interest income. The net interest margin increased to 2.48% from 2.38% year-over-year. Total assets grew to $1,841,563,000, with loans receivable increasing by 7.1% and deposits by 9.2%. The company also issued $40,000,000 of subordinated debt, strengthening its capital position.

QNB Corp. (QNBC) ha riportato un utile netto di $3.338.000, ovvero $0,91 per azione diluita, per il terzo trimestre del 2024, rispetto a $2.344.000, o $0,65 per azione diluita, per lo stesso periodo del 2023. Le performance della società sono migliorate grazie a:

1. Un aumento di $1.182.000 nel reddito netto da interessi
2. Una diminuzione di $300.000 nella provvista per perdite su crediti
3. Una diminuzione di $37.000 nelle spese non da interesse

Questi guadagni sono stati parzialmente compensati da una diminuzione di $96.000 nel reddito non da interessi. Il margine di interesse netto è aumentato al 2,48% rispetto al 2,38% anno su anno. Il totale degli attivi è cresciuto a $1.841.563.000, con prestiti in crescita del 7,1% e depositi del 9,2%. La società ha inoltre emesso $40.000.000 di debito subordinato, rafforzando la sua posizione patrimoniale.

QNB Corp. (QNBC) reportó un ingreso neto de $3,338,000, o $0.91 por acción diluida, para el tercer trimestre de 2024, en comparación con $2,344,000, o $0.65 por acción diluida, para el mismo período de 2023. El rendimiento de la empresa mejoró gracias a:

1. Un aumento de $1,182,000 en el ingreso neto por intereses
2. Una disminución de $300,000 en la provisión para pérdidas crediticias
3. Una disminución de $37,000 en los gastos no relacionados con intereses

Estas ganancias fueron parcialmente compensadas por una disminución de $96,000 en ingresos no relacionados con intereses. El margen de interés neto aumentó al 2.48% desde el 2.38% año tras año. Los activos totales crecieron a $1,841,563,000, con préstamos en aumento del 7.1% y depósitos del 9.2%. La empresa también emitió $40,000,000 en deuda subordinada, fortaleciendo su posición de capital.

QNB Corp. (QNBC)는 순이익이 $3,338,000, 또는 희석주당 $0.91을 기록했다고 발표했습니다. 이는 2024년 3분기에 해당하며, 2023년 같은 기간의 $2,344,000, 또는 희석주당 $0.65에 비해 증가한 수치입니다. 회사의 성과는 다음과 같은 이유로 개선되었습니다:

1. 순이자 수익이 $1,182,000 증가
2. 신용 손실에 대한 충당금이 $300,000 감소
3. 비이자 비용이 $37,000 감소

이러한 이익은 비이자 수익이 $96,000 감소함으로써 부분적으로 상쇄되었습니다. 순이자 마진은 2.48%로 증가했으며, 이는 전년 동기 대비 2.38%에서 상승한 것입니다. 총 자산은 $1,841,563,000로 증가했으며, 대출은 7.1%, 예금은 9.2% 증가했습니다. 회사는 또한 $40,000,000의 후순위 부채를 발행하여 자본 위치를 강화했습니다.

QNB Corp. (QNBC) a annoncé un résultat net de 3 338 000 $, soit 0,91 $ par action diluée, pour le troisième trimestre de 2024, contre 2 344 000 $, ou 0,65 $ par action diluée, pour la même période en 2023. Les performances de l'entreprise se sont améliorées grâce à :

1. Une augmentation de 1 182 000 $ des revenus nets d'intérêts
2. Une diminution de 300 000 $ de la provision pour pertes sur crédits
3. Une diminution de 37 000 $ des dépenses non liées aux intérêts

Ces gains ont été partiellement compensés par une diminution de 96 000 $ des revenus non liés aux intérêts. Le marge d'intérêt nette a augmenté à 2,48%, contre 2,38% d'une année sur l'autre. Les actifs totaux ont augmenté à 1 841 563 000 $, avec une augmentation de 7,1 % des prêts et de 9,2 % des dépôts. L'entreprise a également émis 40 000 000 $ de dettes subordonnées, renforçant ainsi sa position en capital.

QNB Corp. (QNBC) berichtete von einem Nettoeinkommen von $3.338.000, oder $0,91 pro verwässerter Aktie, für das dritte Quartal 2024, verglichen mit $2.344.000, oder $0,65 pro verwässerter Aktie, im gleichen Zeitraum 2023. Die Leistung des Unternehmens verbesserte sich aufgrund von:

1. einem Anstieg von $1.182.000 im Nettozinsertrag
2. einem Rückgang von $300.000 in der Risikovorsorge für Kreditverluste
3. einem Rückgang von $37.000 bei den nichtzinsbezogenen Aufwendungen

Diese Gewinne wurden teilweise durch einen Rückgang von $96.000 bei den nichtzinsbezogenen Erträgen ausgeglichen. Der Nettozinssatz stieg auf 2,48% im Vergleich zu 2,38% im Vorjahr. Die Gesamtaktiva stiegen auf $1.841.563.000, wobei die Forderungen aus Krediten um 7,1% und die Einlagen um 9,2% zunahmen. Das Unternehmen gab auch $40.000.000 an nachrangigen Schulden aus, um seine Kapitalposition zu stärken.

Positive
  • Net income increased by 42.4% year-over-year to $3,338,000
  • Earnings per diluted share rose from $0.65 to $0.91
  • Net interest margin improved from 2.38% to 2.48%
  • Total assets grew by 7.9% to $1,841,563,000
  • Loans receivable increased by 7.1% to $1,171,361,000
  • Total deposits increased by 9.2% to $1,626,284,000
  • Successful issuance of $40,000,000 subordinated debt strengthening capital position
Negative
  • Non-interest income decreased by $96,000
  • Commercial loans classified as substandard or doubtful increased from $11,747,000 to $26,883,000
  • Retail brokerage and advisory income decreased by $80,000 due to customer balance decrease following employee turnover

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:9/30/246/30/243/31/2412/31/239/30/23 9/30/249/30/23
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             

FAQ

What was QNB Corp's (QNBC) net income for Q3 2024?

QNB Corp. (QNBC) reported net income of $3,338,000 for the third quarter of 2024.

How did QNBC's earnings per share change in Q3 2024 compared to Q3 2023?

QNBC's earnings per diluted share increased from $0.65 in Q3 2023 to $0.91 in Q3 2024.

What was the net interest margin for QNBC in Q3 2024?

The net interest margin for QNBC was 2.48% in the third quarter of 2024, up from 2.38% in the same period of 2023.

How much subordinated debt did QNBC issue in Q3 2024?

QNB Corp. issued $40,000,000 of subordinated debt during the third quarter of 2024.

What was the growth in QNBC's total deposits as of September 30, 2024?

QNBC's total deposits increased by 9.2% to $1,626,284,000 as of September 30, 2024.

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