QUAKERTOWN, Pa., Jan. 24, 2023 (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 2022 of $5,447,000, or $1.52 per share on a diluted basis. This compares to net income of $4,149,000, or $1.17 per share on a diluted basis, for the same period in 2021. For the twelve months ended December 31, 2022, QNB reported net income of $15,921,000, or $4.47 per share on a diluted basis. This compares to net income of $16,492,000 or $4.64 per share on a diluted basis, reported for the same period in 2021.
For the quarter ended December 31, 2022, the annualized rate of return on average assets and average shareholders’ equity was 1.24% and 14.38%, respectively, compared with 0.98% and 11.82%, respectively, for the fourth quarter 2021.
The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended December 31, 2022, in comparison with the same period in 2021 due to growth in net interest income and the reversal of $850,000 in provision loan losses. The change in contribution from QNB Corp. for the quarter ended December 31, 2022, compared with the same period in 2021, is primarily due to the change in fair value of the equities portfolio held at the holding company.
The following table presents disaggregated net income:
Three months ended, | Twelve months ended, | ||||||||||||||||||||||||||||||||||||||
12/31/2022 | 12/31/2021 | Variance | 12/31/2022 | 12/31/2021 | Variance | ||||||||||||||||||||||||||||||||||
QNB Bank | $ | 4,408,000 | $ | 3,537,000 | $ | 871,000 | $ | 16,445,000 | $ | 14,607,000 | $ | 1,838,000 | |||||||||||||||||||||||||||
QNB Corp | 1,039,000 | 612,000 | 427,000 | (524,000 | ) | 1,885,000 | (2,409,000 | ) | |||||||||||||||||||||||||||||||
Consolidated net income | $ | 5,447,000 | $ | 4,149,000 | $ | 1,298,000 | $ | 15,921,000 | $ | 16,492,000 | $ | (571,000 | ) |
Total assets as of December 31, 2022 were $1,668,497,000 compared with $1,673,340,000 at December 31, 2021. Total available-for-sale debt securities decreased $145,835,000, or 21.1%, to $546,525,000, due primarily to the reduction in fair value of the portfolio, in response to the rise in interest rates during the period. The Bank participated in both rounds of the Small Business Administration’s Paycheck Protection Program (“PPP”). Loans receivable, excluding PPP, grew $124,470,000 to approximately $1,037,095,000 since December 31, 2021. Total deposits decreased $31,376,000 to $1,418,369,000. Short-term borrowing grew $92,851,000 to support loan growth.
“2022 ended well with continued solid performance results and growth at the Bank. Our earnings were the direct result of our core banking operations and were not supported by gains on the sale of investments, as in 2021,” stated David W. Freeman, President, and Chief Executive Officer, continuing, “the quarter also showed improvement in net interest income and improved margins. Plus, loan outstandings, fueled by commercial growth, exceeded one billion for the first time in the bank’s history.”
Net Interest Income and Net Interest Margin
Net interest income for the quarter and twelve months ended December 31, 2022 totaled $11,279,000 and $44,497,000, respectively, an increase of $471,000 and $2,370,000, respectively, from the same periods in 2021. Net interest margin was 2.68% for the fourth quarter of 2022 and for the same period in 2021. Net interest margin was 2.71% for the twelve months ended December 31, 2022 compared with 2.79% for the same period in 2021.
The yield on earning assets was 3.49% for the fourth quarter 2022 compared with 2.95% in the fourth quarter of 2021. For the twelve-month period ended December 31, 2022, the yield on earning assets was 3.18%, compared with 3.09% for the same period in 2021. The cost of interest-bearing liabilities was 1.03% for the quarter and 0.60% for the twelve months ended December 31, 2022 compared with 0.35% and 0.39% for the same periods in 2021.
Proceeds from average deposit growth, PPP loan forgiveness and short-term borrowings over the past year were invested in loans. Loan growth was primarily in commercial real estate, which comprised 38% of average earning assets in the twelve months of 2022 compared with 36% for the same period in 2021 and was the major contributor to the 11 basis-point increase in the yield on loans. Growth in the available-for-sale portfolio was primarily in mortgage-backed securities, which comprised 27% of average earnings assets in the twelve months of 2022 compared with 23% for the same period in 2021. This increase in marketable securities as a percent of earnings assets also contributed to the increase in net interest margin.
Asset Quality, Provision for Loan Loss and Allowance for Loan Loss
QNB reversed $850,000 in provision for loan losses in the fourth quarter of 2022 compared to no provision in the fourth of quarter 2021. QNB received over $1,000,000 in payments on a non-performing loan during the fourth quarter of 2022. QNB's allowance for loan losses of $10,531,000 represents 1.01% of loans receivable at December 31, 2022, compared to $11,184,000, or 1.21% of loans receivable at December 31, 2021, and $10,826,000, or 1.18% of loans receivable at December 31, 2020. Excluding the PPP loans, which are expected to be fully forgiven within the next several months and are 100% guaranteed by the SBA, the allowance represents 1.02% of loans receivable. Net loan recoveries were $43,000 and $197,000 for the quarter and twelve months ended December 31, 2022, respectively, compared with charge-offs of $30,000 and $100,000 for the same periods in 2021, respectively. Annualized net loan recoveries for the quarter and twelve months ended December 31, 2022 were both 0.02% of average loans receivable.
Total non-performing loans, which represent loans on non-accrual status, loans past due 90 days or more and still accruing interest and restructured loans, were $9,121,000, or 0.88% of loans receivable at December 31, 2022, compared with $11,672,000, or 1.26% of loans receivable at December 31, 2021, and $14,109,000, or 1.53% of loans receivable at December 31, 2020. In cases where there is a collateral shortfall on impaired loans, specific impairment 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, 2022, $3,435,000, or approximately 71% 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 $13,684,000 at December 31, 2022, compared with $18,531,000 reported at December 31, 2021, and $22,193,000 at December 31, 2020.
Non-Interest Income
Total non-interest income was $2,997,000 for the fourth quarter of 2022 compared with $2,528,000 for the same period in 2021. There was a net realized loss of $227,000 on the sale of investments for the quarter ended December 31, 2022 compared with a gain of $766,000 for the same period in 2021. Unrealized gain on the investment equity securities was $1,602,000 for the quarter ended December 31, 2022 compared to a gain of $87,000 for the same period in 2021. The equities portfolio comprises blue-chip large-capitalized stocks, providing a taxable equivalent dividend yield of 3.32%.
Fees for services to customers increased $36,000 to $404,000 for the fourth quarter 2022 compared with the same period in 2021, due primarily to increased overdraft occurrences. ATM and debit card income increased $11,000 to $704,000 for the same period, due to card usage when comparing the two periods. Retail brokerage and advisory income decreased $24,000 to $184,000 attributable to decreased advisory income.
Net gain on sales of loans decreased $58,000 when comparing the fourth quarter of 2022 with the same period in 2021, as there was a decrease in mortgage originations when comparing the periods. Other non-interest income decreased $18,000 when comparing the two periods due primarily to reduced merchant fee income of $14,000.
For the twelve months ended December 31, 2022, non-interest income was $5,731,000, a decrease of $4,050,000 compared to the same period in 2021, primarily due to a negative change in fair value of the equity portfolio of $1,952,000. Realized gains on sales of securities was $266,000, a decline of $993,000 for the twelve months ended December 31, 2022 compared with the same period in 2021. Net gain on sale of loans decreased $589,000 when comparing the twelve months ended December 31, 2022 with the same period in 2021, as there was a decrease in mortgage originations. Increases in non-interest income for the twelve months ended December 31, 2022 compared to the same period in 2021 comprise: fees for services to customers, ATM and debit card fees, and retail brokerage and advisory income, which increased $288,000, $37,000, and $2,000, respectively. Other non-interest income decreased $296,000 due primarily to a life insurance benefit of $193,000 realized during the first quarter of 2021 compared to $46,000 realized in the third quarter of 2022, and a $57,000 decrease in merchant income.
Non-Interest Expense
Total non-interest expense was $8,119,000 for the fourth quarter of 2022 compared with $8,135,000 for the same period in 2021. Salaries and benefits expense decreased $76,000, or 1.7%, to $4,464,000 when comparing the two quarters. Salary expense and related payroll taxes increased $158,000, to $3,870,000 during the fourth quarter 2022 compared to the same period in 2021 with increases in salaries of $268,000 partly offset by decreases om incentive bonus and related taxes of $150,000. Benefits expense decreased $234,000, when comparing the two periods.
Net occupancy and furniture and equipment expense decreased $14,000, to $1,259,000 for the fourth quarter 2022 due to security expense and equipment maintenance partially offset by increased software maintenance.
Other non-interest expense decreased $18,000, or 5.2%, when comparing fourth quarter 2022 with the same period in 2021 due to decreased FDIC insurance and marketing expense, partly offset by increased in third-party services.
For the twelve months ended December 31, 2022, non-interest expense was $31,492,000, an increase of $495,000, or 1.6%, compared to the same period in 2021.
Provision for income taxes increased $508,000 to $1,560,000 in the fourth quarter 2022 due to increased pre-tax income and a higher effective tax rate, compared with the same period in 2021. The effective tax rates for the quarter and twelve months ended December 31, 2022 were 22.3% and 18.7%, respectively, compared with 20.2% and 19.4%, respectively, for the same periods in 2021.
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, Montgomery and Lehigh 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, 2021. 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) | 12/31/22 | 9/30/22 | 6/30/22 | 3/31/22 | 12/31/21 | |||||||||||||||
Assets | $ | 1,668,497 | $ | 1,645,068 | $ | 1,646,695 | $ | 1,647,986 | $ | 1,673,340 | ||||||||||
Cash and cash equivalents | 15,899 | 17,218 | 17,094 | 13,260 | 13,390 | |||||||||||||||
Investment securities | ||||||||||||||||||||
Debt securities, AFS | 546,525 | 555,710 | 609,567 | 656,846 | 692,360 | |||||||||||||||
Equity securities | 12,056 | 10,444 | 11,617 | 12,652 | 12,410 | |||||||||||||||
Loans held-for-sale | - | - | - | - | - | |||||||||||||||
Loans receivable | 1,039,385 | 1,008,306 | 963,414 | 926,369 | 926,470 | |||||||||||||||
Allowance for loan losses | (10,531 | ) | (11,338 | ) | (11,297 | ) | (11,231 | ) | (11,184 | ) | ||||||||||
Net loans | 1,028,854 | 996,968 | 952,117 | 915,138 | 915,286 | |||||||||||||||
Deposits | 1,418,369 | 1,476,668 | 1,467,728 | 1,451,753 | 1,449,745 | |||||||||||||||
Demand, non-interest bearing | 231,849 | 236,167 | 240,281 | 242,024 | 243,006 | |||||||||||||||
Interest-bearing demand, money market and savings | 1,011,071 | 1,065,472 | 1,065,638 | 1,046,074 | 1,038,366 | |||||||||||||||
Time | 175,449 | 175,029 | 161,809 | 163,655 | 168,373 | |||||||||||||||
Short-term borrowings | 161,327 | 92,896 | 77,836 | 76,738 | 68,476 | |||||||||||||||
Long-term debt | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | |||||||||||||||
Shareholders' equity | 70,958 | 58,124 | 83,738 | 102,498 | 136,494 | |||||||||||||||
Asset Quality Data (Period End) | ||||||||||||||||||||
Non-accrual loans | $ | 4,820 | $ | 6,337 | $ | 7,085 | $ | 7,272 | $ | 7,530 | ||||||||||
Loans past due 90 days or more and still accruing | - | - | - | - | - | |||||||||||||||
Restructured loans | 4,301 | 4,357 | 4,309 | 4,375 | 4,142 | |||||||||||||||
Non-performing loans | 9,121 | 10,694 | 11,394 | 11,647 | 11,672 | |||||||||||||||
Other real estate owned and repossessed assets | - | - | - | - | - | |||||||||||||||
Non-performing assets | $ | 9,121 | $ | 10,694 | $ | 11,394 | $ | 11,647 | $ | 11,672 | ||||||||||
Allowance for loan losses | $ | 10,531 | $ | 11,338 | $ | 11,297 | $ | 11,231 | $ | 11,184 | ||||||||||
Non-performing loans / Loans excluding held-for-sale | 0.88 | % | 1.06 | % | 1.18 | % | 1.26 | % | 1.26 | % | ||||||||||
Non-performing assets / Assets | 0.55 | % | 0.65 | % | 0.69 | % | 0.71 | % | 0.70 | % | ||||||||||
Allowance for loan losses / Loans excluding held-for-sale | 1.01 | % | 1.12 | % | 1.17 | % | 1.21 | % | 1.21 | % |
QNB Corp. | ||||||||||||||||||||||
Consolidated Selected Financial Data (unaudited) | ||||||||||||||||||||||
(Dollars in thousands, except per share data) | Three months ended, | Twelve months ended | ||||||||||||||||||||
For the period: | 12/31/22 | 9/30/22 | 6/30/22 | 3/31/22 | 12/31/21 | 12/31/22 | 12/31/21 | |||||||||||||||
Interest income | $ | 14,739 | $ | 13,546 | $ | 12,327 | $ | 11,809 | $ | 11,938 | $ | 52,421 | $ | 46,770 | ||||||||
Interest expense | 3,460 | 2,167 | 1,224 | 1,073 | 1,130 | 7,924 | 4,643 | |||||||||||||||
Net interest income | 11,279 | 11,379 | 11,103 | 10,736 | 10,808 | 44,497 | 42,127 | |||||||||||||||
Provision for loan losses | (850 | ) | - | - | - | - | (850 | ) | 458 | |||||||||||||
Net interest income after provision for loan losses | 12,129 | 11,379 | 11,103 | 10,736 | 10,808 | 45,347 | 41,669 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||||
Fees for services to customers | 404 | 423 | 403 | 384 | 368 | 1,614 | 1,326 | |||||||||||||||
ATM and debit card | 704 | 669 | 705 | 641 | 693 | 2,719 | 2,682 | |||||||||||||||
Retail brokerage and advisory income | 184 | 194 | 205 | 205 | 208 | 788 | 786 | |||||||||||||||
Net realized gain on investment securities | (227 | ) | - | 457 | 36 | 766 | 266 | 1,806 | ||||||||||||||
Unrealized gain (loss) on equity securities | 1,602 | (1,174 | ) | (1,446 | ) | (8 | ) | 87 | (1,026 | ) | 926 | |||||||||||
Net gain on sale of loans | - | 6 | - | - | 58 | 6 | 595 | |||||||||||||||
Other | 330 | 366 | 315 | 353 | 348 | 1,364 | 1,660 | |||||||||||||||
Total non-interest income | 2,997 | 484 | 639 | 1,611 | 2,528 | 5,731 | 9,781 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||||
Salaries and employee benefits | 4,464 | 4,371 | 4,205 | 4,266 | 4,540 | 17,306 | 17,453 | |||||||||||||||
Net occupancy and furniture and equipment | 1,259 | 1,314 | 1,274 | 1,265 | 1,273 | 5,112 | 5,015 | |||||||||||||||
Other | 2,396 | 2,129 | 2,267 | 2,282 | 2,322 | 9,074 | 8,529 | |||||||||||||||
Total non-interest expense | 8,119 | 7,814 | 7,746 | 7,813 | 8,135 | 31,492 | 30,997 | |||||||||||||||
Income before income taxes | 7,007 | 4,049 | 3,996 | 4,534 | 5,201 | 19,586 | 20,453 | |||||||||||||||
Provision for income taxes | 1,560 | 634 | 647 | 824 | 1,052 | 3,665 | 3,961 | |||||||||||||||
Net income | $ | 5,447 | $ | 3,415 | $ | 3,349 | $ | 3,710 | $ | 4,149 | $ | 15,921 | $ | 16,492 | ||||||||
Share and Per Share Data: | ||||||||||||||||||||||
Net income - basic | $ | 1.52 | $ | 0.96 | $ | 0.94 | $ | 1.04 | $ | 1.17 | $ | 4.47 | $ | 4.64 | ||||||||
Net income - diluted | $ | 1.52 | $ | 0.96 | $ | 0.94 | $ | 1.04 | $ | 1.17 | $ | 4.47 | $ | 4.64 | ||||||||
Book value | $ | 19.84 | $ | 16.25 | $ | 23.47 | $ | 28.81 | $ | 38.41 | $ | 19.84 | $ | 38.41 | ||||||||
Cash dividends | $ | 0.36 | $ | 0.36 | $ | 0.36 | $ | 0.36 | $ | 0.35 | $ | 1.44 | $ | 1.40 | ||||||||
Average common shares outstanding - basic | 3,577,587 | 3,567,987 | 3,559,185 | 3,552,854 | 3,549,584 | 3,564,481 | 3,553,949 | |||||||||||||||
Average common shares outstanding - diluted | 3,577,587 | 3,567,987 | 3,559,185 | 3,554,456 | 3,550,542 | 3,564,481 | 3,554,138 | |||||||||||||||
QNB Corp. | ||||||||||||||||||||||
Consolidated Selected Financial Data (unaudited) | ||||||||||||||||||||||
(Dollars in thousands, except per share data) | Three months ended, | Twelve months ended | ||||||||||||||||||||
For the period: | 12/31/22 | 9/30/22 | 6/30/22 | 3/31/22 | 12/31/21 | 12/31/22 | 12/31/21 | |||||||||||||||
Selected Ratios: | ||||||||||||||||||||||
Return on average assets | 1.24 | % | 0.78 | % | 0.79 | % | 0.90 | % | 0.98 | % | 0.93 | % | 1.04 | % | ||||||||
Return on average shareholders' equity | 14.38 | % | 9.20 | % | 9.28 | % | 10.60 | % | 11.82 | % | 10.90 | % | 12.19 | % | ||||||||
Net interest margin (tax equivalent) | 2.68 | % | 2.72 | % | 2.73 | % | 2.71 | % | 2.68 | % | 2.71 | % | 2.79 | % | ||||||||
Efficiency ratio (tax equivalent) | 56.20 | % | 64.88 | % | 64.98 | % | 62.35 | % | 59.29 | % | 61.82 | % | 58.69 | % | ||||||||
Average shareholders' equity to total average assets | 8.65 | % | 8.53 | % | 8.51 | % | 8.43 | % | 8.53 | % | 8.54 | % | 8.53 | % | ||||||||
Net loan charge-offs (recoveries) | $ | (43 | ) | $ | (41 | ) | $ | (66 | ) | $ | (47 | ) | $ | 30 | $ | (197 | ) | $ | 100 | |||
Net loan charge-offs (recoveries) - annualized / Average loans excluding held-for-sale | -0.02 | % | -0.02 | % | -0.03 | % | -0.02 | % | 0.01 | % | -0.02 | % | 0.01 | % | ||||||||
Balance Sheet (Average) | ||||||||||||||||||||||
Assets | $ | 1,737,679 | $ | 1,727,132 | $ | 1,700,600 | $ | 1,675,385 | $ | 1,672,267 | $ | 1,710,449 | $ | 1,585,627 | ||||||||
Investment securities (AFS & Equities) | 673,117 | 691,010 | 710,856 | 710,109 | 690,792 | 696,158 | 565,924 | |||||||||||||||
Loans receivable | 1,020,102 | 984,968 | 944,773 | 918,602 | 918,631 | 967,438 | 928,017 | |||||||||||||||
Deposits | 1,462,654 | 1,475,668 | 1,458,921 | 1,444,049 | 1,440,611 | 1,460,416 | 1,359,100 | |||||||||||||||
Shareholders' equity | 150,281 | 147,296 | 144,688 | 141,986 | 139,227 | 146,088 | 135,324 |
QNB Corp. (Consolidated) | |||||||||||||||
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis) | |||||||||||||||
Three Months Ended | |||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||
Average | Average | Average | Average | ||||||||||||
Balance | Rate | Interest | Balance | Rate | Interest | ||||||||||
Assets | |||||||||||||||
Investment securities: | |||||||||||||||
U.S. Treasury | $ | 298 | 1.50 | % | $ | 1 | $ | - | 0.00 | % | $ | - | |||
U.S. Government agencies | 101,941 | 1.11 | 283 | 97,975 | 1.07 | 262 | |||||||||
State and municipal | 124,514 | 2.35 | 731 | 127,969 | 2.39 | 766 | |||||||||
Mortgage-backed and CMOs | 428,186 | 1.62 | 1,737 | 444,048 | 1.33 | 1,472 | |||||||||
Corporate debt securities | 6,647 | 4.38 | 73 | 6,710 | 4.33 | 72 | |||||||||
Equities | 11,531 | 3.50 | 102 | 14,090 | 3.14 | 111 | |||||||||
Total investment securities | 673,117 | 1.74 | 2,927 | 690,792 | 1.55 | 2,683 | |||||||||
Loans: | |||||||||||||||
Commercial real estate | 678,061 | 4.43 | 7,578 | 585,184 | 4.06 | 5,988 | |||||||||
Residential real estate | 106,045 | 3.47 | 920 | 98,233 | 3.35 | 823 | |||||||||
Home equity loans | 58,860 | 5.63 | 835 | 56,232 | 3.27 | 462 | |||||||||
Commercial and industrial | 152,183 | 6.14 | 2,357 | 154,080 | 4.90 | 1,903 | |||||||||
Consumer loans | 4,298 | 6.65 | 72 | 4,873 | 5.11 | 63 | |||||||||
Tax-exempt loans | 20,655 | 3.44 | 179 | 22,093 | 3.29 | 183 | |||||||||
Total loans, net of unearned income* | 1,020,102 | 4.64 | 11,941 | 920,695 | 4.06 | 9,422 | |||||||||
Other earning assets | 4,360 | 3.93 | 43 | 18,740 | 0.39 | 18 | |||||||||
Total earning assets | 1,697,579 | 3.49 | 14,911 | 1,630,227 | 2.95 | 12,123 | |||||||||
Cash and due from banks | 12,854 | 14,364 | |||||||||||||
Allowance for loan losses | (11,351 | ) | (11,220 | ) | |||||||||||
Other assets | 38,597 | 38,896 | |||||||||||||
Total assets | $ | 1,737,679 | $ | 1,672,267 | |||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||
Interest-bearing deposits: | |||||||||||||||
Interest-bearing demand | $ | 351,283 | 0.46 | 412 | $ | 329,406 | 0.19 | 154 | |||||||
Municipals | 127,252 | 2.91 | 933 | 140,378 | 0.32 | 113 | |||||||||
Money market | 132,282 | 0.65 | 216 | 138,309 | 0.32 | 110 | |||||||||
Savings | 433,930 | 0.79 | 863 | 413,047 | 0.30 | 309 | |||||||||
Time < $100 | 91,196 | 0.88 | 201 | 94,801 | 0.83 | 198 | |||||||||
Time $100 through $250 | 60,200 | 1.38 | 209 | 51,425 | 0.74 | 96 | |||||||||
Time > $250 | 25,103 | 1.05 | 66 | 24,673 | 0.77 | 48 | |||||||||
Total interest-bearing deposits | 1,221,246 | 0.94 | 2,900 | 1,192,039 | 0.34 | 1,028 | |||||||||
Short-term borrowings | 106,295 | 1.94 | 520 | 72,820 | 0.34 | 62 | |||||||||
Long-term debt | 10,000 | 1.57 | 40 | 10,000 | 1.57 | 40 | |||||||||
Total interest-bearing liabilities | 1,337,541 | 1.03 | 3,460 | 1,274,859 | 0.35 | 1,130 | |||||||||
Non-interest-bearing deposits | 241,408 | 248,572 | |||||||||||||
Other liabilities | 8,449 | 9,609 | |||||||||||||
Shareholders' equity | 150,281 | 139,227 | |||||||||||||
Total liabilities and | |||||||||||||||
shareholders' equity | $ | 1,737,679 | $ | 1,672,267 | |||||||||||
Net interest rate spread | 2.46 | % | 2.60 | % | |||||||||||
Margin/net interest income | 2.68 | % | $ | 11,451 | 2.68 | % | $ | 10,993 | |||||||
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) | |||||||||||||||
Year Ended | |||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||
Average | Average | Average | Average | ||||||||||||
Balance | Rate | Interest | Balance | Rate | Interest | ||||||||||
Assets | |||||||||||||||
Investment securities: | |||||||||||||||
U.S. Treasury | $ | 524 | 1.18 | % | $ | 6 | $ | - | 0.00 | % | $ | - | |||
U.S. Government agencies | 101,455 | 1.10 | 1,119 | 80,340 | 1.05 | 842 | |||||||||
State and municipal | 128,126 | 2.39 | 3,056 | 112,011 | 2.47 | 2,765 | |||||||||
Mortgage-backed and CMOs | 447,369 | 1.58 | 7,059 | 351,801 | 1.29 | 4,540 | |||||||||
Corporate debt securities | 6,673 | 4.37 | 291 | 7,291 | 4.01 | 292 | |||||||||
Equities | 12,011 | 3.32 | 399 | 14,481 | 3.02 | 437 | |||||||||
Total investment securities | 696,158 | 1.71 | 11,930 | 565,924 | 1.57 | 8,876 | |||||||||
Loans: | |||||||||||||||
Commercial real estate | 637,023 | 4.20 | 26,759 | 556,822 | 4.15 | 23,098 | |||||||||
Residential real estate | 104,397 | 3.34 | 3,484 | 95,241 | 3.41 | 3,244 | |||||||||
Home equity loans | 56,155 | 4.38 | 2,459 | 57,311 | 3.29 | 1,886 | |||||||||
Commercial and industrial | 145,579 | 5.10 | 7,432 | 193,491 | 4.75 | 9,189 | |||||||||
Consumer loans | 4,512 | 5.63 | 254 | 5,097 | 4.98 | 254 | |||||||||
Tax-exempt loans | 19,778 | 3.42 | 676 | 24,026 | 3.47 | 835 | |||||||||
Total loans, net of unearned income* | 967,444 | 4.24 | 41,064 | 931,988 | 4.13 | 38,506 | |||||||||
Other earning assets | 5,782 | 2.42 | 140 | 36,715 | 0.26 | 94 | |||||||||
Total earning assets | 1,669,384 | 3.18 | 53,134 | 1,534,627 | 3.09 | 47,476 | |||||||||
Cash and due from banks | 13,803 | 23,408 | |||||||||||||
Allowance for loan losses | (11,287 | ) | (11,157 | ) | |||||||||||
Other assets | 38,549 | 38,749 | |||||||||||||
Total assets | $ | 1,710,449 | $ | 1,585,627 | |||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||
Interest-bearing deposits: | |||||||||||||||
Interest-bearing demand | $ | 345,054 | 0.27 | 933 | $ | 307,258 | 0.20 | 624 | |||||||
Municipals | 122,824 | 1.43 | 1,758 | 127,828 | 0.32 | 411 | |||||||||
Money market | 137,830 | 0.45 | 617 | 122,361 | 0.31 | 381 | |||||||||
Savings | 443,104 | 0.49 | 2,175 | 386,630 | 0.30 | 1,178 | |||||||||
Time < $100 | 91,216 | 0.79 | 723 | 98,986 | 0.93 | 921 | |||||||||
Time $100 through $250 | 52,314 | 0.93 | 489 | 52,693 | 0.86 | 454 | |||||||||
Time > $250 | 25,296 | 0.83 | 209 | 26,833 | 0.96 | 257 | |||||||||
Total interest-bearing deposits | 1,217,638 | 0.57 | 6,904 | 1,122,589 | 0.38 | 4,226 | |||||||||
Short-term borrowings | 106,295 | 1.00 | 861 | 72,820 | 0.36 | 258 | |||||||||
Long-term debt | 10,000 | 1.57 | 159 | 10,000 | 1.57 | 159 | |||||||||
Total interest-bearing liabilities | 1,333,933 | 0.60 | 7,924 | 1,205,409 | 0.39 | 4,643 | |||||||||
Non-interest-bearing deposits | 242,778 | 236,511 | |||||||||||||
Other liabilities | 8,069 | 9,545 | |||||||||||||
Shareholders' equity | 146,088 | 135,324 | |||||||||||||
Total liabilities and | |||||||||||||||
shareholders' equity | $ | 1,730,868 | $ | 1,586,789 | |||||||||||
Net interest rate spread | 2.58 | % | 2.70 | % | |||||||||||
Margin/net interest income | 2.71 | % | $ | 45,210 | 2.79 | % | $ | 42,833 | |||||||
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 |
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