QNB Corp. Reports Slight Decrease in Net Income for First Quarter 2025

QNB Corp. reported a net income of $2.578 million, or $0.69 per diluted share, for the first quarter of 2025, a slight decrease from the $2.594 million, or $0.71 per diluted share, recorded in the same period of 2024. The bank's performance was bolstered by an increase in net interest income, which rose by 13.5% to $11.537 million, driven by higher interest income from loans and investment securities. However, this was partially offset by a provision for credit losses of $550,000, compared to a reversal of $86,000 in the prior year, reflecting a more cautious outlook on credit quality amid rising interest rates.

Total assets for QNB Corp. increased to $1.896 billion as of March 31, 2025, up from $1.871 billion at the end of 2024. The bank's loan portfolio saw a slight decline, with loans receivable at $1.212 billion, down from $1.216 billion. In contrast, total deposits grew to $1.665 billion, an increase of $36 million from the previous quarter, indicating a strong customer base and effective deposit-gathering strategies. The bank's non-interest income, however, decreased to $1.584 million from $1.836 million, primarily due to the absence of realized gains on securities sales, which were present in the prior year.

Operationally, QNB Corp. has focused on enhancing its service offerings and expanding its customer relationships within its geographic footprint in Pennsylvania. The bank's total non-performing loans increased to $8.651 million, representing 0.71% of total loans, compared to $1.975 million, or 0.16%, at the end of 2024. This rise in non-performing loans has prompted the bank to increase its allowance for credit losses, which now stands at $9.298 million, or 0.77% of total loans.

Looking ahead, QNB Corp. anticipates continued pressure on net interest margins due to competitive conditions in the lending and deposit markets. The bank's management remains committed to maintaining a strong capital position, with shareholders' equity increasing to $108.223 million, or 5.71% of total assets, as of March 31, 2025. The bank's capital ratios remain well above regulatory requirements, positioning it favorably for future growth and stability in a challenging economic environment.