$QNBC

QNB CORP

CIK:0000750558|SEC Filings

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income
Interest and fees on loans	$ 26,632	$ 18,067	$ 45,258	$ 35,382
Interest and dividends on available-for-sale & equity securities:
Taxable	3,120	3,970	6,263	7,983
Tax-exempt	368	355	723	708
Interest on interest-bearing balances and other interest income	511	718	863	1,235
Total interest income	30,631	23,110	53,107	45,308
Interest on deposits
Interest-bearing demand	2,660	2,315	4,654	4,715
Money market	2,691	1,862	4,294	3,680
Savings	1,361	901	2,264	1,794
Time less than or equal to $250	2,956	3,159	5,594	6,442
Time greater than $250	736	527	1,266	1,045
Interest on short-term borrowings	596	689	1,358	1,145
Interest on long-term debt	0	67	0	423
Interest on subordinated debt	1,280	938	2,217	1,875
Total interest expense	12,280	10,458	21,647	21,119
Net interest income	18,351	12,652	31,460	24,189
Provision (reversal) for credit losses	222	(146)	522	404
Net interest income after provision (reversal) for credit losses	18,129	12,798	30,938	23,785
Non-interest income
Fees for services to customers	658	485	1,171	932
ATM and debit card	811	724	1,552	1,380
Retail brokerage and advisory	148	140	351	281
Bank-owned life insurance	133	81	225	168
Merchant	81	82	163	157
Net gain on sale of securities	96	0	96	0
Net unrealized gain on equity securities	268	0	268	0
Net loss on interest-rate swap termination	(303)	0	(303)	0
Net gain on sale of loans	36	4	44	22
Other	211	136	373	296
Total non-interest income	2,139	1,652	3,940	3,236
Non-interest expense
Salaries and employee benefits	7,200	5,251	12,816	10,283
Net occupancy	767	546	1,452	1,160
Furniture and equipment	1,422	1,135	2,629	2,257
Marketing	242	250	600	439
Third party services	1,193	788	2,007	1,450
Telephone, postage and supplies	150	120	273	244
State taxes	441	236	646	503
FDIC insurance premiums	302	269	494	543
Merger-related expenses	3,084	0	3,972	0
Other	1,635	967	2,685	2,052
Total non-interest expense	16,436	9,562	27,574	18,931
Income before income taxes	3,832	4,888	7,304	8,090
Provision for income taxes	817	1,005	1,524	1,629
Net income	$ 3,015	$ 3,883	$ 5,780	$ 6,461
Earnings per share - basic	$ 0.61	$ 1.05	$ 1.32	$ 1.74
Earnings per share - diluted	0.6	1.04	1.32	1.74
Cash dividends per share	$ 0.39	$ 0.38	$ 0.78	$ 0.76

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities
Net income	$ 5,780,000	$ 6,461,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	927,000	890,000
Provision for credit losses	522,000	404,000
Reserve for make whole agreement	23,000	0
Net gain on investment debit and equity securities	(96,000)	0
Net unrealized gain on equity securities	(268,000)	0
Net gain on sale of loans	(44,000)	(22,000)
Proceeds from sales of residential mortgages held-for-sale	2,565,000	668,000
Origination of residential mortgages held-for-sale	(2,670,000)	(2,005,000)
Increase in cash surrender value of bank-owned life insurance	(225,000)	(168,000)
Stock-based compensation expense	298,000	164,000
Amortization of core deposit intangible asset	332,000	0
Deferred income tax (income) expense	(917,000)	32,000
Net (decrease) increase in income taxes payable	(754,000)	199,000
Net decrease (increase) in accrued interest receivable	31,000	(37,000)
Fair value remeasurements on interest rate swap	42,000	(70,000)
Amortization of mortgage servicing rights and change in valuation allowance	21,000	21,000
Net amortization of premiums and discounts on investment securities	252,000	520,000
Net amortization of deferred costs on subordinated debt	100,000	100,000
Net decrease in accrued interest payable	(988,000)	(1,329,000)
Operating lease payments	(395,000)	(323,000)
(Increase) decrease in other assets	(398,000)	456,000
Increase (Decrease) in other liabilities	812,000	(1,217,000)
Net cash provided by operating activities	4,950,000	4,744,000
Investing Activities
Proceeds from payments, maturities and calls of investments available-for-sale	68,094,000	49,226,000
Proceeds from sale of investment securities available-for-sale	6,752,000	0
Purchases of investments available-for-sale	(33,449,000)	(40,452,000)
Proceeds from redemption of investment in restricted stock	6,776,000	3,270,000
Purchases of restricted stock	(5,948,000)	(3,606,000)
Net increase in loans	(45,540,000)	(1,615,000)
Net purchases of premises and equipment	(1,525,000)	(413,000)
Cash received in acquisition	20,553,000	0
Net cash provided by investing activities	15,713,000	6,410,000
Financing Activities
Net increase in non-interest-bearing deposits	5,002,000	17,961,000
Net increase in interest-bearing deposits	10,463,000	5,165,000
Net (decrease) increase in short-term borrowings	(5,173,000)	13,620,000
Repayments of long-term debt	0	(30,000,000)
Cash dividends paid, net of reinvestment	(3,078,000)	(2,489,000)
Proceeds from issuance of common stock	1,166,000	347,000
Net cash provided by financing activities	8,380,000	4,604,000
Increase in cash and cash equivalents	29,043,000	15,758,000
Cash and cash equivalents at beginning of year	50,297,000	50,713,000
Cash and cash equivalents at end of period	79,340,000	66,471,000
Supplemental Cash Flow Disclosures
Interest paid	22,360,000	22,448,000
Federal income taxes paid, net of refunds received	2,000,000	1,400,000
State income taxes paid, net of refunds received	80,000	0
Supplemental Schedule of Non-cash Investing and Financing Activities
Transfer of loans from held-for-sale to loans receivable	0	857,000
Right-of-use assets obtained in exchange for new operating lease liabilities	3,420,000	0
Non-cash consideration transferred for the Victory Acquisition	$ 47,103,000	$ 0