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QNB Corp. Reports Earnings For First Quarter 2025

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QNB Corp. (OTCQX: QNBC) reported Q1 2025 net income of $2,578,000, or $0.69 per diluted share, compared to $2,594,000, or $0.71 per share in Q1 2024. The company's return on average assets and equity were 0.54% and 6.24% respectively.

Key financial highlights:

  • Total assets reached $1.89 billion, up from $1.87 billion in December 2024
  • Net interest income increased by $2,629,000 to $22,198,000
  • Net interest margin improved to 2.51% from 2.39% year-over-year
  • Total deposits grew by $36,014,000 (2.2%) to $1.66 billion
  • Loans receivable slightly decreased by 0.3% to $1.21 billion

The bank recorded a provision for credit losses of $551,000 in Q1 2025, with non-performing loans increasing to $8,407,000 (0.69% of loans receivable), primarily due to one commercial customer relationship.

QNB Corp. (OTCQX: QNBC) ha riportato un utile netto nel primo trimestre 2025 di 2.578.000 dollari, pari a 0,69 dollari per azione diluita, rispetto a 2.594.000 dollari, o 0,71 dollari per azione, nel primo trimestre 2024. Il rendimento sugli asset medi e sul patrimonio netto è stato rispettivamente dello 0,54% e del 6,24%.

Punti salienti finanziari:

  • Gli attivi totali hanno raggiunto 1,89 miliardi di dollari, in aumento rispetto a 1,87 miliardi a dicembre 2024
  • Il reddito netto da interessi è aumentato di 2.629.000 dollari, raggiungendo 22.198.000 dollari
  • Il margine netto di interesse è migliorato al 2,51% rispetto al 2,39% dell'anno precedente
  • I depositi totali sono cresciuti di 36.014.000 dollari (2,2%) arrivando a 1,66 miliardi
  • I prestiti in essere sono diminuiti leggermente dello 0,3%, attestandosi a 1,21 miliardi

La banca ha registrato una provision per perdite su crediti di 551.000 dollari nel primo trimestre 2025, con i prestiti in sofferenza saliti a 8.407.000 dollari (0,69% dei prestiti in essere), principalmente a causa di un rapporto commerciale con un cliente.

QNB Corp. (OTCQX: QNBC) reportó un ingreso neto en el primer trimestre de 2025 de 2.578.000 dólares, o 0,69 dólares por acción diluida, en comparación con 2.594.000 dólares, o 0,71 dólares por acción, en el primer trimestre de 2024. El retorno sobre activos promedio y sobre patrimonio fue de 0,54% y 6,24%, respectivamente.

Aspectos financieros clave:

  • Los activos totales alcanzaron 1.890 millones de dólares, frente a 1.870 millones en diciembre de 2024
  • Los ingresos netos por intereses aumentaron 2.629.000 dólares, llegando a 22.198.000 dólares
  • El margen neto de interés mejoró a 2,51% desde 2,39% interanual
  • Los depósitos totales crecieron 36.014.000 dólares (2,2%) hasta 1.660 millones
  • Los préstamos por cobrar disminuyeron ligeramente un 0,3%, situándose en 1.210 millones

El banco registró una provisión para pérdidas crediticias de 551.000 dólares en el primer trimestre de 2025, con préstamos en mora que aumentaron a 8.407.000 dólares (0,69% de los préstamos por cobrar), principalmente debido a una relación comercial con un cliente.

QNB Corp. (OTCQX: QNBC)� 2025� 1분기 순이익으� 2,578,000달러, 희석 주당순이� 0.69달러� 보고했으�, 이는 2024� 1분기� 2,594,000달러, 주당 0.71달러와 비교됩니�. 회사� 평균 자산 � 자기자본 수익률은 각각 0.54%와 6.24%였습니�.

주요 재무 하이라이�:

  • � 자산은 18� 9천만 달러� 2024� 12월의 18� 7천만 달러에서 증가
  • 순이자수익은 2,629,000달러 증가� 22,198,000달러
  • 순이자마진은 전년 대� 2.39%에서 2.51%� 개선
  • � 예금은 36,014,000달러(2.2%) 증가� 16� 6천만 달러
  • 대출채권은 0.3% 소폭 감소� 12� 1천만 달러

은행은 2025� 1분기� 551,000달러� 신용손실충당금을 기록했으�, 부실채권은 주로 � 상업 고객 관계로 인해 8,407,000달러(대출채권의 0.69%)� 증가했습니다.

QNB Corp. (OTCQX : QNBC) a annoncé un bénéfice net pour le premier trimestre 2025 de 2 578 000 dollars, soit 0,69 dollar par action diluée, contre 2 594 000 dollars, ou 0,71 dollar par action, au premier trimestre 2024. Le rendement moyen des actifs et des capitaux propres était respectivement de 0,54 % et 6,24 %.

Points financiers clés :

  • Le total des actifs a atteint 1,89 milliard de dollars, en hausse par rapport à 1,87 milliard en décembre 2024
  • Le revenu net d’intérêts a augmenté de 2 629 000 dollars pour s’établir à 22 198 000 dollars
  • La marge nette d’intérêt s’est améliorée à 2,51 % contre 2,39 % en glissement annuel
  • Les dépôts totaux ont augmenté de 36 014 000 dollars (2,2 %) pour atteindre 1,66 milliard
  • Les prêts à recevoir ont légèrement diminué de 0,3 % pour s’établir à 1,21 milliard

La banque a enregistré une provision pour pertes sur créances de 551 000 dollars au premier trimestre 2025, avec une augmentation des prêts non performants à 8 407 000 dollars (0,69 % des prêts à recevoir), principalement en raison d’une relation commerciale avec un client.

QNB Corp. (OTCQX: QNBC) meldete für das erste Quartal 2025 einen Nettogewinn von 2.578.000 US-Dollar bzw. 0,69 US-Dollar je verwässerter Aktie, verglichen mit 2.594.000 US-Dollar bzw. 0,71 US-Dollar je Aktie im ersten Quartal 2024. Die Eigenkapital- und Gesamtkapitalrendite lagen bei 0,54 % bzw. 6,24 %.

Wichtige finanzielle Eckdaten:

  • Die Gesamtaktiva stiegen auf 1,89 Milliarden US-Dollar, nach 1,87 Milliarden im Dezember 2024
  • Der Nettozinsertrag erhöhte sich um 2.629.000 US-Dollar auf 22.198.000 US-Dollar
  • Die Nettozinsmarge verbesserte sich von 2,39 % auf 2,51 % im Jahresvergleich
  • Die Gesamteinlagen wuchsen um 36.014.000 US-Dollar (2,2 %) auf 1,66 Milliarden
  • Die ausstehenden Darlehen verringerten sich leicht um 0,3 % auf 1,21 Milliarden

Die Bank bildete im ersten Quartal 2025 eine Rückstellung für Kreditausfälle in Höhe von 551.000 US-Dollar, wobei notleidende Kredite aufgrund einer gewerblichen Kundenbeziehung auf 8.407.000 US-Dollar (0,69 % der ausstehenden Darlehen) anstiegen.

Positive
  • Net interest income increased by $2.6 million year-over-year
  • Net interest margin improved to 2.51% from 2.39%
  • Total deposits grew by $36 million (2.2%)
  • Net loan recoveries of $3,000 versus charge-offs of $21,000 in prior year
Negative
  • Net income decreased to $2.57 million from $2.59 million year-over-year
  • Earnings per share declined to $0.69 from $0.71
  • Non-performing loans increased significantly to $8.4 million (0.69% of loans) from $1.97 million (0.16%)
  • Provision for credit losses increased by $644,000
  • Non-interest expense increased by $483,000

QUAKERTOWN, Pa., April 22, 2025 (GLOBE NEWSWIRE) -- QNB Corp. (the “Company� or “QNB�) (OTCQX: QNBC), the parent company of QNB Bank (the “Bank�), reported net income for the first quarter of 2025 of $2,578,000, or $0.69 per share on a diluted basis. This compares to net income of $2,594,000, or $0.71 per share on a diluted basis, for the same period in 2024.

For the first quarter of 2025, the annualized rate of return on average assets and average shareholders� equity was 0.54% and 6.24%, respectively, compared with 0.59% and 6.53%, respectively, for the first quarter 2024.

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended March 31, 2025, in comparison with the same period in 2024, due primarily to improvement in the interest margin causing a $2,229,000 increase in net interest income and an increase in non-interest income of $99,000; this was partly offset by an increase in the provision for credit losses on loans and unfunded commitments of $644,000 and an increase in non-interest expense of $483,000. The change in contribution from QNB Corp. for the quarter ended March 31, 2025, compared with the same period in 2024, is primarily due to a decrease in net interest income of $937,000, related to the subordinated debt issuance in 2024.

The following table presents disaggregated net income (loss):

Three months ended,
3/31/20253/31/2024Variance
QNB Bank$3,292,000$2,331,000$961,000
QNB Corp(714,000)263,000(977,000)
Consolidated net income$2,578,000$2,594,000$(16,000)

Total assets as of March 31, 2025 were $1,896,189,000 compared with $1,870,894,000 at December 31, 2024. Total cash and cash equivalents increased $30,844,000, or 60.8%, to $81,557,000, primarily due to increases in customer deposits. Loans receivable decreased $3,886,000, or 0.3%, to $1,212,162,000. Total deposits increased $36,014,000, or 2.2%, to $1,664,555,000. Short-term borrowing declined $10,545,000, or 19.6%.

“The Bank continued to navigate evolving fiscal policy decisions, unprecedented economic uncertainty, and market impacts, which resulted in relatively flat deposit and loan growth for the quarter,� said David W. Freeman, President and Chief Executive Officer. Freeman continued, “We are pleased with the growth in net interest income at an all-time high in the first quarter, driven by an increase in average interest rates received on our loan portfolio, combined with a decrease in average interest rates paid on deposit balances. Furthermore, we believed it prudent to modestly increase our loan loss reserves in the first quarter and will continue to closely watch asset quality as the economic environment develops while looking for responsible growth opportunities for the success of our company.�

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended March 31, 2025 totaled $22,198,000, an increase of $2,629,000, from the same period in 2024. Net interest margin was 2.51% for the first quarter of 2025 and 2.39% for the same period in 2024.

The yield on earning assets was 4.81% for the first quarter of 2025, compared with 4.57% in the first quarter of 2024; an increase of 24 basis points. The cost of interest-bearing liabilities was 2.76% for the quarter ended March 31, 2025, compared with 2.66% for the same period in 2024, an increase of 10 basis points.

Proceeds from the growth in average deposits and the issuance of both long-term and subordinated debt over the past year were invested in loans, higher-yielding securities and used to pay down short-term borrowings. Loan growth was primarily in commercial real estate, which comprised 45.5% of average earning assets in the three months of 2025 compared with 44.7% for the same period in 2024, and the increases in both rates and volume in commercial real estate loans majorly contributed to the 37 basis-point increase in the yield on loans. The increase in the available-for-sale investments portfolio was primarily in corporate debt securities. The 23-basis point increase in rate on investments was primarily due to the 129-basis point increase in the yield on corporate debt securities. The average rate paid on interest-bearing deposits decreased 12 basis points; this was more than offset by the issuance of subordinated debt which was the primary contributor to the increase in the cost of funds of ten basis points.

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

QNB recorded $551,000 in the provision for credit losses on loans in the first quarter of 2025 compared to a $93,000 reversal in the provision in the first quarter of 2024. QNB's allowance for credit losses on loans of $9,298,000 represents 0.77% of loans receivable at March 31, 2025, compared to $8,744,000, or 0.72% of loans receivable at December 31, 2024. The five basis point increase in the allowance for credit losses on loans was primarily due to an increase in reserves for collateral dependent loans and deterioration in the economic outlook. Net loan recoveries were $3,000 for the quarter ended March 31, 2025, compared with charge-offs of $21,000 for the same period in 2024. Annualized net loan recoveries for the quarter ended March 31, 2025 were 0.00% and annualized net loan charge-offs were 0.01% for the quarter ended March 31, 2024, 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 $8,407,000, or 0.69% of loans receivable at March 31, 2025, compared with $1,975,000, or 0.16% of loans receivable at December 31, 2024. The increase was primarily due to one commercial customer relationship. 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. Commercial loans classified as substandard or doubtful loans totaled $34,448,000 at March 31, 2025, compared with $34,301,000 at December 31, 2024; these were comprised primarily of commercial real estate loans.

Non-Interest Income

Total non-interest income was $1,584,000 for the first quarter of 2025 compared with $1,836,000 for the same period in 2024. There were no realized and unrealized gain/loss on securities for the quarter ended March 31, 2025 compared to a net gain of $347,000 in the same period in 2024. Excluding the net realized and unrealized gains on securities, non-interest income increased $95,000, or 6.4%.

Fees for service to customers increased $27,000 for the quarter ended March 31, 2025, as overdraft fees increased $12,000 and other deposit-related fees increased $15,000. ATM and debit card increased $20,000 due to volume. Retail brokerage and advisory income increased $48,000 to $141,000 for the same period. Other non-interest income decreased $3,000 for the same period due to a decline in merchant fee income of $24,000, partly offset by an increase in letter of credit fees of $11,000 and title company income of $8,000.

Non-Interest Expense

Total non-interest expense was $9,369,000 for the first quarter of 2025 compared with $8,833,000 for the same period in 2024. Salaries and benefits expense increased $58,000, or 1.2%, to $5,032,000 when comparing the two quarters. Salary expense and related payroll taxes increased $199,000, or 4.8%, to $4,344,000 during the first quarter of 2025 compared to the same period in 2024, primarily due to pay increases. Benefits expense decreased $141,000, or 17.0%, when comparing the two periods primarily due to a reduction in medical costs.

Net occupancy and furniture and equipment expense increased $221,000, or 14.6%, to $1,736,000 for the first quarter of 2025 primarily due to software maintenance costs and depreciation. Other non-interest expense increased $257,000, or 11.0%, when comparing first quarter of 2025 with the same period in 2024 due to an increase in bank shares tax of $167,000, due to timing of tax credits and increased capital, an increase in write-offs relating to fraud on customer accounts of $77,000, and an increase in director fees of $79,000, as fees were bought in line with peer groups. These increases were partly offset by decreases in marketing expense of $77,000, due to timing of events and promotions.

Income Taxes

Provision for income taxes decreased $39,000 to $624,000 in the first quarter of 2025 due to decreased pre-tax income, compared with the same period in 2024. The effective tax rate for the quarter ended March 31, 2025 was 19.5% compared with 20.4% for the same period in 2024.

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, 2024. 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. FreemanJeffrey Lehocky
President & Chief Executive OfficerChief Financial Officer
215-538-5600 x-5619215-538-5600 x-5716


QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands)
Balance Sheet (Period End)3/31/2512/31/249/30/246/30/243/31/24
Assets$1,896,189$1,870,894$1,841,563$1,761,487$1,716,081
Cash and cash equivalents81,55750,713104,23276,90950,963
Investment securities
Debt securities, AFS547,138546,559510,036460,418481,596
Equity securities2,7607,2336,217
Loans held-for-sale248664294786
Loans receivable1,212,1621,216,0481,171,3611,162,3101,122,616
Allowance for credit losses on loans(9,298)(8,744)(8,987)(8,858)(8,738)
Net loans1,202,8641,207,3041,162,3741,153,4521,113,878
Deposits1,664,5551,628,5411,626,2841,572,8391,536,188
Demand, non-interest bearing203,666183,499190,240190,333188,260
Interest-bearing demand, money market and savings1,083,0111,063,5841,055,4091,003,813990,451
Time377,878381,458380,635378,693357,477
Short-term borrowings43,29953,84422,91849,06655,088
Long-term debt30,00030,00030,00030,00020,000
Subordinated debt39,11839,06839,030
Shareholders' equity108,223103,349105,34096,88593,686
Asset Quality Data (Period End)
Non-accrual loans$8,651$1,975$1,696$2,078$2,001
Loans past due 90 days or more and still accruing
Non-performing loans8,6511,9751,6962,0782,001
Other real estate owned and repossessed assets
Non-performing assets$8,651$1,975$1,696$2,078$2,001
Allowance for credit losses on loans$9,298$8,744$8,987$8,858$8,738
Non-performing loans / Loans excluding held-for-sale0.71%0.16%0.14%0.18%0.18%
Non-performing assets / Assets0.46%0.11%0.09%0.12%0.12%
Allowance for credit losses on loans / Loans excluding held-for-sale0.77%0.72%0.77%0.76%0.78%


QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands, except per share data)Three months ended,
For the period:3/31/2512/31/249/30/246/30/243/31/24
Interest income$22,198$22,209$21,945$20,345$19,569
Interest expense10,66111,23410,8189,7539,401
Net interest income11,53710,97511,12710,59210,168
(Reversal in provision) provision for credit losses550(255)159114(86)
Net interest income after provision for credit losses10,98711,23010,96810,47810,254
Non-interest income:
Fees for services to customers447454469427420
ATM and debit card656708691705636
Retail brokerage and advisory income14111813912693
Net realized gain (loss) on investment securities-1,414224(1,096)377
Unrealized (loss) gain on equity securities-(1,344)1431,016(30)
Net (loss) gain on sale of loans18(3)19(2)15
Other322298282289325
Total non-interest income1,5841,6451,9671,4651,836
Non-interest expense:
Salaries and employee benefits5,0325,0794,6505,0384,974
Net occupancy and furniture and equipment1,7361,6531,5311,4811,515
Other2,6012,3492,4552,4152,344
Total non-interest expense9,3699,0818,6368,9348,833
Income before income taxes3,2023,7944,2993,0093,257
Provision for income taxes624743961544663
Net income$2,578$3,051$3,338$2,465$2,594
Share and Per Share Data:
Net income - basic$0.70$0.83$0.91$0.67$0.71
Net income - diluted$0.69$0.83$0.91$0.67$0.71
Book value$29.17$27.96$28.57$26.34$25.57
Cash dividends$0.38$0.37$0.37$0.37$0.37
Average common shares outstanding -basic3,699,8543,688,0783,679,7993,665,6953,655,176
Average common shares outstanding -diluted3,713,1413,695,5183,682,7733,665,6953,655,176
Selected Ratios:
Return on average assets0.54%0.64%0.72%0.55%0.59%
Return on average shareholders' equity6.24%7.36%8.13%6.14%6.53%
Net interest margin (tax equivalent)2.51%2.38%2.48%2.46%2.39%
Efficiency ratio (tax equivalent)70.65%71.16%65.27%73.26%72.73%
Average shareholders' equity to total average assets8.67%8.63%8.80%8.97%8.98%
Net loan charge-offs (recoveries)$(3)$1$25$12$21
Net loan charge-offs (recoveries) - annualized / Average loans excluding held-for-sale0.00%0.00%0.01%0.00%0.01%
Balance Sheet (Average)
Assets$1,932,938$1,908,914$1,856,034$1,798,040$1,778,585
Investment securities (AFS & Equities)626,557614,329552,323569,135578,615
Loans receivable1,210,3031,193,9491,158,7311,139,8741,108,836
Deposits1,633,1961,635,6291,600,9251,542,6611,497,692
Shareholders' equity167,491164,823163,274161,340159,739


QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)
Three Months Ended
March 31, 2025March 31, 2024
AverageAverageAverageAverage
BalanceRateInterestBalanceRateInterest
Assets
Investment securities:
U.S. Treasury$20,1554.38%$217$6,7825.33%$90
U.S. Government agencies75,9601.1822484,9511.17248
State and municipal105,2562.86754108,1733.42924
Mortgage-backed and CMOs363,6412.432,208365,9832.592,373
Corporate debt securities and mutual funds61,5456.881,0586,7075.5994
Equities---6,0193.7156
Total investment securities626,5572.854,461578,6152.623,785
Loans:
Commercial real estate857,6005.7112,069775,1355.3410,300
Residential real estate114,2714.331,238108,9223.921,066
Home equity loans67,9736.411,07462,2696.811,055
Commercial and industrial148,6807.412,717140,2937.502,615
Consumer loans3,4467.68653,6448.1073
Tax-exempt loans18,7954.1519218,6413.82177
Total loans, net of unearned income*1,210,7655.8117,3551,108,9045.5415,286
Other earning assets47,6414.4452246,6455.51639
Total earning assets1,884,9634.8122,3381,734,1644.5719,710
Cash and due from banks13,22612,769
Allowance for credit losses on loans(8,739)(8,946)
Other assets43,48840,598
Total assets$1,932,938$1,778,585
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest-bearing demand$380,2931.01%944$321,9040.80%643
Municipals149,5793.951,456131,8874.811,577
Money market256,2652.881,818227,8723.562,015
Savings279,6571.30893298,3531.28949
Time < $100178,5003.791,670157,7123.761,473
Time $100 through $250154,1254.251,613127,6134.341,377
Time > $25048,7854.3151849,7564.22522
Total interest-bearing deposits1,447,2042.508,9121,315,0972.628,556
Short-term borrowings47,5293.8945687,4412.88625
Long-term debt30,1114.7335620,0004.36220
Subordinated debt39,0929.59937
Total borrowings116,7326.081,749107,4413.16845
Total interest-bearing liabilities1,563,9362.7610,6611,422,5382.669,401
Non-interest-bearing deposits185,992182,595
Other liabilities15,51913,713
Shareholders' equity167,491159,739
Total liabilities and
shareholders' equity$1,932,938$1,778,585
Net interest rate spread2.05%1.91%
Margin/net interest income2.51%$11,6772.39%$10,309
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) earnings per share in Q1 2025?

QNB Corp reported earnings of $0.69 per diluted share in Q1 2025, compared to $0.71 in Q1 2024.

How much did QNBC's non-performing loans increase in Q1 2025?

Non-performing loans increased to $8.407 million (0.69% of loans receivable) from $1.975 million (0.16%) at the end of December 2024.

What was QNBC's net interest margin in Q1 2025?

QNBC's net interest margin was 2.51% in Q1 2025, up from 2.39% in Q1 2024.

How much did QNBC's total deposits grow in Q1 2025?

Total deposits increased by $36.014 million (2.2%) to $1.664 billion.

What was QNBC's provision for credit losses in Q1 2025?

QNBC recorded a $551,000 provision for credit losses in Q1 2025, compared to a $93,000 reversal in Q1 2024.
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11.33%
Banks - Regional
Financial Services
United States
Quakertown