QNB Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>QNB Corp. has filed its 2023 10-K annual report detailing its financial performance and position.</b>

AI Summary

QNB CORP (QNBC) filed a Annual Report (10-K) with the SEC on March 15, 2024. QNB Corp. filed its annual report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is commercial banking. The filing includes data related to various loan and financial asset categories. Specific data points include treasury stock, nonperforming financing receivables, and fair value measurements.

Why It Matters

For investors and stakeholders tracking QNB CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of QNB Corp.'s financial health and operational activities for the fiscal year 2023, crucial for investors and stakeholders to assess performance and future outlook. The detailed breakdown of loan portfolios, including nonperforming assets and fair value measurements, offers insights into the company's risk management strategies and asset quality.

Risk Assessment

Risk Level: medium — QNB CORP shows moderate risk based on this filing. The filing contains detailed financial data, including loan portfolio specifics and risk classifications, indicating a need for careful analysis of asset quality and potential credit risks inherent in the banking sector.

Analyst Insight

Investors should review the detailed loan portfolio segments and risk classifications within the 10-K to understand QNB Corp.'s asset quality and potential exposure to credit losses.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-03-15 — Filing Date (FILED AS OF DATE)
• 6022 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• QNB Corp (company) — FILER
• PA (location) — STATE OF INCORPORATION
• QUAKERTOWN (location) — CITY
• 2155385600 (phone) — BUSINESS PHONE
• 1934 Act (regulation) — SEC ACT
• 000-17706 (identifier) — SEC FILE NUMBER

FAQ

Risk Factors

• Credit Risk [medium — financial]: The company's financial performance is subject to credit risk, particularly related to its loan portfolio, including nonperforming and past-due financing receivables across various segments.
• Interest Rate Risk [medium — financial]: The company's operations are exposed to interest rate risk, as indicated by the mention of LIBOR as a benchmark.
• Fair Value Measurement [low — financial]: The company utilizes fair value measurements for certain assets, such as corporate debt securities and money market funds, which can be subject to market volatility.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-03-15: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

Nonperforming Financing Receivable

A financing receivable for which the borrower has not made scheduled payments for a significant period. (Indicates potential credit losses and impacts the company's asset quality.)

Treasury Stock

Shares of a company's own stock that it has repurchased from the open market. (Affects the number of outstanding shares and can be used for stock-based compensation or to return capital to shareholders.)

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. (Important for valuing certain financial instruments and can be subject to market fluctuations.)

Key Financial Figures

• $1,706,318,000 — ember 31, 2023, QNB had total assets of $1,706,318,000, total loans receivable of $1,093,533,0
• $1,093,533,000 — ,706,318,000, total loans receivable of $1,093,533,000, total deposits of $1,488,713,000 and t
• $1,488,713,000 — le of $1,093,533,000, total deposits of $1,488,713,000 and total shareholders' equity of $90,8
• $90,824,000 — 3,000 and total shareholders' equity of $90,824,000. For the year ended December 31, 2023,
• $9,483,000 — er 31, 2023, QNB reported net income of $9,483,000 compared to net income for the year end
• $15,921,000 — for the year ended December 31, 2022 of $15,921,000 and December 31, 2021 of $16,492,000.
• $16,492,000 — of $15,921,000 and December 31, 2021 of $16,492,000. At February 15, 2024, the Bank had 1
• $27,772,000 — apitalized," the Bank had approximately $27,772,000 available for payment of dividends to t
• $1 billion — fying small bank holding companies from $1 billion to $3 billion of consolidated assets. C
• $3 billion — nk holding companies from $1 billion to $3 billion of consolidated assets. Consequently, q
• $10 billion — epository institutions having less than $10 billion in total assets and meeting certain oth
• $250,000 — ermined by the FDIC, which is currently $250,000 per depositor. Under the FDIC's risk-ba
• $1,058,000 — 2023, 2022 and 2021, the Bank recorded $1,058,000, $768,000, and $793,000, respectively,
• $768,000 — and 2021, the Bank recorded $1,058,000, $768,000, and $793,000, respectively, in FDIC de
• $793,000 — Bank recorded $1,058,000, $768,000, and $793,000, respectively, in FDIC deposit insuranc

Filing Documents

• qnbc-20231231.htm (10-K) — 9780KB
• qnbc-ex10_11.htm (EX-10.11) — 173KB
• qnbc-ex21_1.htm (EX-21.1) — 2KB
• qnbc-ex23_1.htm (EX-23.1) — 4KB
• qnbc-ex31_1.htm (EX-31.1) — 11KB
• qnbc-ex31_2.htm (EX-31.2) — 11KB
• qnbc-ex32_1.htm (EX-32.1) — 7KB
• qnbc-ex32_2.htm (EX-32.2) — 7KB
• img193168269_0.jpg (GRAPHIC) — 7KB
• img193168269_1.jpg (GRAPHIC) — 210KB
• 0000950170-24-031946.txt (&nbsp;) — 39757KB
• qnbc-20231231.xsd (EX-101.SCH) — 2856KB
• qnbc-20231231_htm.xml (XML) — 10984KB

Business

Business 2 Item 1A

Risk Factors

Risk Factors 9 Item 1B Unresolved Staff Comments 13 Item 1C Cybersecurity 13 Item 2

Properties

Properties 14 Item 3

Legal Proceedings

Legal Proceedings 14 Item 4 Mine Safety Disclosures 14 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 15 Item 6 [Reserved] 16 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 7A

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 49 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 50 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 104 Item 9A

Controls and Procedures

Controls and Procedures 104 Item 9B Other Information 104 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 104 PART III Item 10 Directors, Executive Officers and Corporate Governance 105 Item 11

Executive Compensation

Executive Compensation 105 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 105 Item 13 Certain Relationships and Related Transactions, and Director Independence 106 Item 14 Principal Accounting Fees and Services 106 PART IV Item 15 Exhibits, Financial Statement Schedules 107 - 1 - PART I

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS In addition to historical information, this document contains forward-looking statements. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "intend," "estimate," "project" and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. The U.S. Private Securities Litigation Reform Act of 1995 provides a safe harbor in regard to the inclusion of forward-looking statements in this document and documents incorporated by reference. Shareholders should note that many factors, some of which are discussed elsewhere in this document and in the documents that are incorporated by reference, could affect the future financial results of QNB Corp. and its subsidiary and could cause those results to differ materially from those expressed in the forward-looking statements contained or incorporated by reference in this document. These factors include, but are not limited to, the following: Volatility in interest rates and shape of the yield curve; Credit risk; Liquidity risk; Operating, legal and regulatory risks; Economic, political and competitive forces affecting QNB Corp.'s business; The effects of unforeseen external events, including acts of terrorism, acts of war or other events involving armed conflict in other countries, natural disasters, and pandemics; and The risk that the analysis of these risks and forces could be incorrect, and/or that the strategies developed to address them could be unsuccessful. QNB Corp. (herein referred to as "QNB" or the "Company") cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, all of which change over time, and QNB assumes no duty to update forward-looking statements. Management cautions readers not to place undue reliance on any forward-looking statements. These statements speak

BUSINESS

ITEM 1. BUSINESS Overview QNB was incorporated under the laws of the Commonwealth of Pennsylvania on June 4, 1984. QNB is registered with the Board of Governors of the Federal Reserve System as a bank holding company under the Bank Holding Company Act of 1956 and conducts its business through its wholly-owned subsidiary, QNB Bank (the "Bank"). Prior to December 28, 2007, the Bank was a national banking association organized in 1877 as The Quakertown National Bank, was chartered under the National Banking Act and was subject to Federal and state laws applicable to national banks. Effective December 28, 2007, the Bank became a Pennsylvania chartered commercial bank and changed its name to QNB Bank. The Bank, whose principal office is located in Quakertown, Bucks County, Pennsylvania, operated twelve full-service community banking offices in Bucks, Montgomery and Lehigh counties in southeastern Pennsylvania as of December 31, 2023. The Bank is engaged in the general commercial banking business and provides a full range of banking services to its customers. These banking services consist of, among other things, attracting deposits and using these funds in making commercial loans, residential mortgage loans, consumer loans, and purchasing investment securities. These deposits are in the form of time, demand and savings accounts. Time deposits include certificates of deposit and individual retirement accounts. The Bank's demand and savings accounts include money market accounts, interest-bearing demand accounts (including a higher yielding checking account), club accounts, traditional statement savings accounts, and a higher yielding online savings account. - 2 - At December 31, 2023, QNB had total assets of $1,706,318,000, total loans receivable of $1,093,533,000, total deposits of $1,488,713,000 and total shareholders' equity of $90,824,000. For the year ended December 31, 2023, QNB reported net income of $9,483,000 compared to net income for the year ended

View Full Filing

View this 10-K filing on SEC EDGAR