QNB Corp. Reports Record Earnings For First Quarter 2017

QNB recorded a $300,000 provision for loan losses in the first quarter of 2017 compared with $125,000 in the first quarter 2016.  QNB's allowance for loan losses of $7,719,000 represents 1.17% of loans receivable at March 31, 2017 compared to $7,394,000, or 1.17% of loans receivable at December 31, 2016, and $7,556,000, or 1.26% of loans receivable at March 31, 2016. Net loan recoveries were $25,000 for the first quarter of 2017, or -0.02% annualized of total average loans, compared with net charge-offs of $123,000, or 0.08% annualized of total average loans for the first quarter of 2016.

Non-performing assets totaled $13,446,000 as of March 31, 2017, compared with $14,219,000 as of December 31, 2016, and $12,765,000 as of March 31, 2016.  Included in this classification are non-performing loans and non-performing pooled trust preferred securities. Total non-performing loans, which represent loans on non-accrual status, loans past due 90 days or more and still accruing interest and restructured loans were $11,023,000, or 1.67% of loans receivable at March 31, 2017, compared with $11,938,000, or 1.89% of loans receivable at December 31, 2016, and $10,110,000, or 1.68% of loans receivable at March 31, 2016. In cases where there is a collateral shortfall on impaired loans, specific impairment reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. At March 31, 2017, $8,077,000, or approximately 84% of the loans classified as non-accrual are current or past due less than 30 days.  Commercial loans classified as substandard or doubtful, which includes non-performing loans, improved. At March 31, 2017, substandard or doubtful loans totaled $18,267,000, a reduction of $3,937,000, or 17.7%, from the $22,204,000 reported at December 31, 2016 and a decrease of $7,703,000, or 29.7%, from the $25,970,000 reported at March 31, 2016.

Non-Interest Income

Total non-interest income was $1,990,000 for the first quarter of 2017, an increase of $414,000, or 26.3%, compared with the same period in 2016.  Increases in non-interest income comprise; net gains on investment securities, which more than doubled, from $319,000 in first quarter 2016 to $749,000 for the same period in 2017; ATM and debit card income, up $29,000, or 7.5%, to $417,000; other non-interest income also increasing $29,000, or 12.4%, to $262,000 for the quarter, primarily due to increased credit card fees, letter of credit fees, title insurance income, and sale of checks to depositors; and fees for services to customers, up $9,000, or 2.3%, to $392,000 for the quarter ended March 31, 2017 compared to the same period in 2016, due primarily to an increase in overdraft income.

These increases in non-interest income were offset in part by a $67,000, or 39.4%, decrease in retail brokerage and advisory income to $103,000 for the first quarter 2017, and a $17,000, or 50%, decrease in trading portfolio gains.

Non-Interest Expense

Total non-interest expense was $5,588,000 for the first quarter of 2017, increasing slightly from $5,519,000 for the same period in 2016.  Salaries and benefits expense increased $32,000, or 1.0%, to $3,086,000 when comparing the two quarters.  Salary expense and related payroll taxes increased $106,000, or 4.1%, to $2,702,000 during the first quarter 2017 compared to the same period in 2016, while medical premiums and post-retirement life insurance declined $42,000 and $35,000, respectively.  Net occupancy and furniture and equipment expense increased $14,000, or 1.6%, to $880,000 for the first quarter 2017, with maintenance cost increases of $30,000 partially offset by a $16,000 decrease in leasehold and equipment depreciation expense.  Other non-interest expense increased $23,000, or 1.4%, when comparing first quarter 2017 with first quarter 2016, with a reduction in foreclosure expense as the primary contributor.  Provision for income taxes increased $334,000, or 42.4%, to $1,122,000 in the first quarter 2017 due to increased pre-tax income and a higher effective tax rate. The effective tax rate for the first quarters of 2017 and 2016 was 28.2% and 25.8%, respectively. The increase in the effective rate for 2017 reflects lower proportionate tax-free income for the first quarter of 2017 compared to the same period in 2016.

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates eleven branches in Bucks, Montgomery and Lehigh Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through Investment Professionals, Inc., a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at www.qnbbank.com.

Forward Looking Statement

This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company's financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission, including "Item lA. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands)
Balance Sheet (Period End)		3/31/17				12/31/16				9/30/16				6/30/16				3/31/16
Assets		$	1,089,007			$	1,063,141			$	1,071,931			$	1,030,238			$	1,004,552
Cash and cash equivalents			20,542				10,721				69,428				57,949				32,138
Investment securities
Trading			2,358				3,596				4,312				3,459				4,006
Available-for-sale			382,296				390,475				368,834				344,253				345,118
Held-to-maturity			-				-				147				147				147
Loans held-for-sale			903				789				456				184				90
Loans receivable			659,039				633,079				608,231				604,478				601,686
Allowance for loan losses			(7,719)				(7,394)				(7,593)				(7,550)				(7,556)
Net loans			651,320				625,684				600,638				596,928				594,130
Deposits			942,891				913,355				926,712				893,285				865,360
Demand, non-interest bearing			121,778				119,010				105,029 Werbung Mehr Nachrichten zur QNB Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 25.04.24 - PR Newswire BlackRock Energy and Resources Income Trust Plc - Portfolio Update 25.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Gresham Technologies Plc 25.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - TClarke Plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59