QNB Corp reported increased net income and strong loan growth for the second quarter

From GlobeNewswire: 2024-07-23 13:37:00

QNB Corp reported a net income of $2,465,000 for the second quarter of 2024, compared to $1,887,000 for the same period in 2023. The Bank’s total assets as of June 30, 2024 were $1,761,487,000, with total available-for-sale debt securities decreasing by 6.1% and loans receivable increasing by 6.3%. Strong loan and deposit growth contributed to the highest quarterly net interest income since 2022.

Net interest income for the second quarter of 2024 totaled $10,592,000, with a net interest margin of 2.46%. The Bank’s cost of interest-bearing liabilities increased by 77 basis points. Loan growth was primarily in commercial real estate, contributing to a 62 basis-point increase in the yield on loans. The Bank strategically sold lower-yielding securities, offsetting losses with an unrealized gain on Visa C shares.

QNB recorded a provision for credit losses on loans of $132,000 in the second quarter of 2024, compared to $212,000 in the same period in 2023. The Bank’s allowance for credit losses on loans stood at $8,858,000. Net loan charge-offs amounted to $12,000 for the quarter ended June 30, 2024. Non-performing loans totaled $2,078,000, or 0.18% of loans receivable at June 30, 2024.

Total non-interest income for the second quarter of 2024 was $1,465,000, with a net realized loss of $1,096,000 on the sale of lower-yielding investments. The Bank saw a net unrealized gain of $1,016,000 on investment equity securities. Fees for services to customers increased slightly, while retail brokerage and advisory income decreased. The Bank strategically positioned its earnings by selling lower-yielding securities and reinvesting the proceeds.



Read more at GlobeNewswire:: QNB Corp. Reports Earnings for Second Quarter 2024