QNB Corp. Files Q2 2024 10-Q Report

TL;DR

QNB Corp. dropped its Q2 10-Q. Bank's looking solid.

AI Summary

QNB Corp. reported its financial results for the period ending June 30, 2024. The company, a commercial bank based in Quakertown, PA, filed its 10-Q with the SEC on August 8, 2024. Specific financial details and performance metrics for the second quarter of 2024 are outlined in the filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for QNB Corp., crucial for understanding the bank's health and market position.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report with no immediate red flags or significant negative developments indicated.

Key Numbers

• 1231 — Fiscal Year End (Indicates the end of the company's annual financial reporting cycle.)
• 6022 — Standard Industrial Classification (Classifies QNB Corp. as a State Commercial Bank.)

Key Players & Entities

• QNB Corp. (company) — Filer of the 10-Q report
• Quakertown, PA (location) — Company's business address
• 0000950170-24-093462 (other) — Accession number for the filing
• 20240630 (date) — Conformed period of report
• 20240808 (date) — Filed as of date

FAQ

Key Financial Figures

• $0.625 — July 31, 2024 Common Stock, par value $0.625 3,679,497 QNB CORP. AND SUBSIDIARY
• $100 — gs 287,057 303,079 Time less than $100 175,902 149,851 Time $100 through
• $250 — 175,902 149,851 Time $100 through $250 148,907 121,793 Time greater than

Filing Documents

• qnbc-20240630.htm (10-Q) — 8298KB
• 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
• 0000950170-24-093462.txt ( ) — 35228KB
• qnbc-20240630.xsd (EX-101.SCH) — 1859KB
• qnbc-20240630_htm.xml (XML) — 11602KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) PAGE Consolidated Balance Sheets at June 30, 2024 and December 31, 2023 2 Consolidated Statements of Income for the Three and Six Months Ended June 30, 2024 and 2023 3 Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2024 and 2023 4 Consolidated Statement of Shareholders' Equity for the Three and Six Months Ended June 30, 2024 and 2023 5 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 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 40 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK 57 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 58

- OTHER INFORMATION

PART II - OTHER INFORMATION ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 59 ITEM 1A.

RISK FACTORS

RISK FACTORS 59 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 59 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 59 ITEM 4. MINE SAFETY DISCLOSURES 59 ITEM 5. OTHER INFORMATION 59 ITEM 6. EXHIBITS 60

SIGNATURES

SIGNATURES 61 CERTIFICATIONS 1 QNB Corp. and Subsidiary CONSOLIDATED B ALANCE SHEETS (in thousands, except share data) (current period unaudited) June 30, 2024 December 31, 2023 Assets Cash and due from banks $ 15,911 $ 11,447 Interest-bearing deposits in banks 60,998 51,210 Total cash and cash equivalents 76,909 62,657 Investments: Available-for-sale (amortized cost $ 542,491 and $ 576,178 ) 460,418 490,182 Equity securities (cost of $ 6,032 and $ 5,695 ) 7,233 5,910 Restricted investment in stocks 3,114 2,730 Loans held-for-sale 786 549 Loans receivable 1,162,310 1,093,533 Allowance for credit losses on loans ( 8,858 ) ( 8,852 ) Loans receivable, net 1,153,452 1,084,681 Bank-owned life insurance 11,778 11,946 Premises and equipment, net 15,488 14,952 Accrued interest receivable 6,402 6,101 Net deferred tax assets 18,393 19,290 Other assets 7,514 7,320 Total assets $ 1,761,487 $ 1,706,318 Liabilities Deposits Demand, non-interest bearing $ 190,333 $ 185,098 Interest-bearing demand 481,760 462,712 Money market 234,996 222,843 Savings 287,057 303,079 Time less than $100 175,902 149,851 Time $100 through $250 148,907 121,793 Time greater than $250 53,884 43,337 Total deposits 1,572,839 1,488,713 Short-term borrowings 49,066 94,094 Long-term debt 30,000 20,000 Accrued interest payable 4,488 5,294 Other liabilities 8,209 7,393 Total liabilities 1,664,602 1,615,494 Shareholders' Equity Common stock, par value $ 0.625 per share; authorized 10,000,000 shares; 3,886,653 shares and 3,861,940 shares issued; 3,677,967 and 3,653,254 shares outstanding 2,429 2,414 Surplus 27,036 26,439 Retained earnings 136,295 133,945 Accumulated other comprehensive loss, net of tax ( 64,838 ) ( 67,937 ) Treasury stock, at cost; 208,686 and 208,68

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- and six-month periods ended June 30, 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 June 30, 2024 for items that should potentially be recognized or disclosed in these consolidated financial statements and has not identified any subsequent event. 2. RECENT ACCOUNTING PRONOUNCEMENTS On March 6, 2024, the Securities and Exchange Commission (SEC) adopted final rules requiring registrants to disclose climate-related information in registration statements and annual reports. These enhance

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