QNB Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>QNB Corp's Q1 2024 10-Q filing details its financial position, focusing on commercial and retail loan portfolios and associated risks.</b>

AI Summary

QNB CORP (QNBC) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. QNB Corp filed a 10-Q report for the period ending March 31, 2024. The filing includes data related to commercial and retail portfolios. Specific segments mentioned include 'RealEstateSecuredBy1stLeinOn14FamilyPropertiesPersonalMember' and 'RetailPortfolioSegmentMember'. The report details financing receivables, including those that are 90+ days past due. Fair value inputs for Level 2 assets, such as Mortgage Backed Securities and Standby Letters of Credit, are also noted.

Why It Matters

For investors and stakeholders tracking QNB CORP, this filing contains several important signals. The filing provides a granular view of QNB Corp's loan portfolio segments, including specific types of real estate-secured loans and their delinquency status, which is crucial for assessing credit risk. Details on fair value measurements for financial instruments like MBS and Standby Letters of Credit offer insight into the company's risk management strategies and the valuation of its assets.

Risk Assessment

Risk Level: — QNB CORP shows moderate risk based on this filing. The filing details various categories of financing receivables, including those past due and nonaccrual, indicating potential credit quality concerns within the loan portfolio.

Analyst Insight

Investors should analyze the trends in nonaccrual and past-due loans across different portfolio segments to assess the evolving credit risk profile of QNB Corp.

Key Numbers

• 2024-03-31 — Report Date (CONFORMED PERIOD OF REPORT)
• 2024-05-09 — 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) — BUSINESS ADDRESS CITY
• 2155385600 (phone) — BUSINESS PHONE

FAQ

Risk Factors

• Financing Receivables Past Due [medium — financial]: The filing details various categories of financing receivables, including those 30-59 days past due, 90+ days past due, and nonaccrual, across different portfolio segments.
• Fair Value Measurements [low — financial]: The company reports fair value inputs for Level 2 assets, including Mortgage Backed Securities and Standby Letters of Credit, indicating the valuation methods used for these instruments.

Key Dates

• 2024-03-31: Quarter End — Period covered by the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a snapshot of the company's financial performance and position during the quarter.)

Financing Receivables

Loans and other amounts owed to the company that arise from the financing of goods or services. (Key indicator of the company's lending activities and credit risk.)

Nonaccrual

Loans for which the accrual of interest has been discontinued, typically due to concerns about the borrower's ability to repay. (Signals potential credit quality deterioration and future charge-offs.)

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 financial instruments and assessing the company's balance sheet.)

Key Financial Figures

• $0.625 — pril 26, 2024 Common Stock, par value $0.625 3,664,074 QNB CORP. AND SUBSIDIARY
• $100 — gs 294,437 303,079 Time less than $100 163,951 149,851 Time $100 through
• $250 — 163,951 149,851 Time $100 through $250 137,895 121,793 Time greater than

Filing Documents

• qnbc-20240331.htm (10-Q) — 6951KB
• qnbc-ex31_1.htm (EX-31.1) — 14KB
• qnbc-ex31_2.htm (EX-31.2) — 14KB
• qnbc-ex32_1.htm (EX-32.1) — 7KB
• qnbc-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-056531.txt (&nbsp;) — 31693KB
• qnbc-20240331.xsd (EX-101.SCH) — 1918KB
• qnbc-20240331_htm.xml (XML) — 10410KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) PAGE Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 2 Consolidated Statements of Income for the Three Months Ended March 31, 2024 and 2023 3 Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023 4 Consolidated Statement of Shareholders' Equity for the Three Months Ended March 31, 2024 and 2023 5 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 39 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK 53 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 54

- OTHER INFORMATION

PART II - OTHER INFORMATION ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 55 ITEM 1A.

RISK FACTORS

RISK FACTORS 55 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 55 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 55 ITEM 4. MINE SAFETY DISCLOSURES 55 ITEM 5. OTHER INFORMATION 55 ITEM 6. EXHIBITS 56

SIGNATURES

SIGNATURES 57 CERTIFICATIONS 1 QNB Corp. and Subsidiary CONSOLIDATED B ALANCE SHEETS (in thousands, except share data) (current period unaudited) March 31, 2024 December 31, 2023 Assets Cash and due from banks $ 12,470 $ 11,447 Interest-bearing deposits in banks 38,493 51,210 Total cash and cash equivalents 50,963 62,657 Investments: Available-for-sale (amortized cost $ 565,864 and $ 576,178 ) 481,596 490,182 Equity securities (cost of $ 6,032 and $ 5,695 ) 6,217 5,910 Restricted investment in stocks 2,730 2,730 Loans held-for-sale — 549 Loans receivable 1,122,616 1,093,533 Allowance for credit losses on loans ( 8,738 ) ( 8,852 ) Loans receivable, net 1,113,878 1,084,681 Bank-owned life insurance 11,700 11,946 Premises and equipment, net 14,849 14,952 Accrued interest receivable 6,184 6,101 Net deferred tax assets 19,029 19,290 Other assets 8,935 7,320 Total assets $ 1,716,081 $ 1,706,318 Liabilities Deposits Demand, non-interest bearing $ 188,260 $ 185,098 Interest-bearing demand 460,494 462,712 Money market 235,520 222,843 Savings 294,437 303,079 Time less than $100 163,951 149,851 Time $100 through $250 137,895 121,793 Time greater than $250 55,631 43,337 Total deposits 1,536,188 1,488,713 Short-term borrowings 55,088 94,094 Long-term debt 20,000 20,000 Accrued interest payable 3,806 5,294 Other liabilities 7,313 7,393 Total liabilities 1,622,395 1,615,494 Shareholders' Equity Common stock, par value $ 0.625 per share; authorized 10,000,000 shares; 3,872,760 shares and 3,861,940 shares issued; 3,664,074 and 3,653,254 shares outstanding 2,420 2,414 Surplus 26,687 26,439 Retained earnings 135,187 133,945 Accumulated other comprehensive loss, net of tax ( 66,571 ) ( 67,937 ) Treasury stock, at cost; 208,686 and 208,686

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of QNB Corp. and its wholly-owned subsidiary, QNB Bank (the "Bank"). The consolidated entity is referred to herein as "QNB" or the "Company". All significant intercompany accounts and transactions are eliminated in the consolidated financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in QNB's 2023 Annual Report incorporated in the Form 10-K. Operating results for the three-month period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The unaudited consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the results of operations for the period and are of a normal and recurring nature. Tabular information, other than share and per share data, is presented in thousands of dollars. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from such estimates. QNB has evaluated events and transactions occurring subsequent to the balance sheet date of March 31, 2024 for items that should potentially be recognized or disclosed in these consolidated financial statements and has identified the following subsequent event. Subsequent Event: On April 8, 2024, Visa, Inc. commenced an initial exchange offer for all of its outstanding shares of Class B-1 common stock for a combination of Class B-2 and Class C common shares. The exchange offer is optional for current C

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View this 10-Q filing on SEC EDGAR