For the quarter ended
The operating performance of the Bank, a wholly-owned subsidiary of
The following table presents disaggregated net income:
Three months ended, | Twelve months ended, | ||||||||||||||||||||||||||||||||||||||
12/31/2022 | 12/31/2021 | Variance | 12/31/2022 | 12/31/2021 | Variance | ||||||||||||||||||||||||||||||||||
$ | 4,408,000 | $ | 3,537,000 | $ | 871,000 | $ | 16,445,000 | $ | 14,607,000 | $ | 1,838,000 | ||||||||||||||||||||||||||||
1,039,000 | 612,000 | 427,000 | (524,000 | ) | 1,885,000 | (2,409,000 | ) | ||||||||||||||||||||||||||||||||
Consolidated net income | $ | 5,447,000 | $ | 4,149,000 | $ | 1,298,000 | $ | 15,921,000 | $ | 16,492,000 | $ | (571,000 | ) |
Total assets as of
“2022 ended well with continued solid performance results and growth at the Bank. Our earnings were the direct result of our core banking operations and were not supported by gains on the sale of investments, as in 2021,” stated
Net Interest Income and Net Interest Margin
Net interest income for the quarter and twelve months ended
The yield on earning assets was 3.49% for the fourth quarter 2022 compared with 2.95% in the fourth quarter of 2021. For the twelve-month period ended
Proceeds from average deposit growth, PPP loan forgiveness and short-term borrowings over the past year were invested in loans. Loan growth was primarily in commercial real estate, which comprised 38% of average earning assets in the twelve months of 2022 compared with 36% for the same period in 2021 and was the major contributor to the 11 basis-point increase in the yield on loans. Growth in the available-for-sale portfolio was primarily in mortgage-backed securities, which comprised 27% of average earnings assets in the twelve months of 2022 compared with 23% for the same period in 2021. This increase in marketable securities as a percent of earnings assets also contributed to the increase in net interest margin.
Asset Quality, Provision for Loan Loss and Allowance for Loan Loss
QNB reversed
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
Non-Interest Income
Total non-interest income was
Fees for services to customers increased
Net gain on sales of loans decreased
For the twelve months ended
Non-Interest Expense
Total non-interest expense was
Net occupancy and furniture and equipment expense decreased
Other non-interest expense decreased
For the twelve months ended
Provision for income taxes increased
About the Company
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
Consolidated Selected Financial Data (unaudited) | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance Sheet (Period End) | | 3/31/22 | 12/31/21 | |||||||||||||||||
Assets | $ | 1,668,497 | $ | 1,645,068 | $ | 1,646,695 | $ | 1,647,986 | $ | 1,673,340 | ||||||||||
Cash and cash equivalents | 15,899 | 17,218 | 17,094 | 13,260 | 13,390 | |||||||||||||||
Investment securities | ||||||||||||||||||||
Debt securities, AFS | 546,525 | 555,710 | 609,567 | 656,846 | 692,360 | |||||||||||||||
Equity securities | 12,056 | 10,444 | 11,617 | 12,652 | 12,410 | |||||||||||||||
Loans held-for-sale | - | - | - | - | - | |||||||||||||||
Loans receivable | 1,039,385 | 1,008,306 | 963,414 | 926,369 | 926,470 | |||||||||||||||
Allowance for loan losses | (10,531 | ) | (11,338 | ) | (11,297 | ) | (11,231 | ) | (11,184 | ) | ||||||||||
Net loans | 1,028,854 | 996,968 | 952,117 | 915,138 | 915,286 | |||||||||||||||
Deposits | 1,418,369 | 1,476,668 | 1,467,728 | 1,451,753 | 1,449,745 | |||||||||||||||
Demand, non-interest bearing | 231,849 | 236,167 | 240,281 | 242,024 | 243,006 | |||||||||||||||
Interest-bearing demand, money market and savings | 1,011,071 | 1,065,472 | 1,065,638 | 1,046,074 | 1,038,366 | |||||||||||||||
Time | 175,449 | 175,029 | 161,809 | 163,655 | 168,373 | |||||||||||||||
Short-term borrowings | 161,327 | 92,896 | 77,836 | 76,738 | 68,476 | |||||||||||||||
Long-term debt | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | |||||||||||||||
Shareholders' equity | 70,958 | 58,124 | 83,738 | 102,498 | 136,494 | |||||||||||||||
Asset Quality Data (Period End) | ||||||||||||||||||||
Non-accrual loans | $ | 4,820 | $ | 6,337 | $ | 7,085 | $ | 7,272 | $ | 7,530 | ||||||||||
Loans past due 90 days or more and still accruing | - | - | - | - | - | |||||||||||||||
Restructured loans | 4,301 | 4,357 | 4,309 | 4,375 | 4,142 | |||||||||||||||
Non-performing loans | 9,121 | 10,694 | 11,394 | 11,647 | 11,672 | |||||||||||||||
Other real estate owned and repossessed assets | - | - | - | - | - | |||||||||||||||
Non-performing assets | $ | 9,121 | $ | 10,694 | $ | 11,394 | $ | 11,647 | $ | 11,672 | ||||||||||
Allowance for loan losses | $ | 10,531 | $ | 11,338 | $ | 11,297 | $ | 11,231 | $ | 11,184 | ||||||||||
Non-performing loans / Loans excluding held-for-sale | 0.88 | % | 1.06 | % | 1.18 | % | 1.26 | % | 1.26 | % | ||||||||||
Non-performing assets / Assets | 0.55 | % | 0.65 | % | 0.69 | % | 0.71 | % | 0.70 | % | ||||||||||
Allowance for loan losses / Loans excluding held-for-sale | 1.01 | % | 1.12 | % | 1.17 | % | 1.21 | % | 1.21 | % |
Consolidated Selected Financial Data (unaudited) | ||||||||||||||||||||||
(Dollars in thousands, except per share data) | Three months ended, | Twelve months ended | ||||||||||||||||||||
For the period: | ||||||||||||||||||||||
Interest income | $ | 14,739 | $ | 13,546 | $ | 12,327 | $ | 11,809 | $ | 11,938 | $ | 52,421 | $ | 46,770 | ||||||||
Interest expense | 3,460 | 2,167 | 1,224 | 1,073 | 1,130 | 7,924 | 4,643 | |||||||||||||||
Net interest income | 11,279 | 11,379 | 11,103 | 10,736 | 10,808 | 44,497 | 42,127 | |||||||||||||||
Provision for loan losses | (850 | ) | - | - | - | - | (850 | ) | 458 | |||||||||||||
Net interest income after provision for loan losses | 12,129 | 11,379 | 11,103 | 10,736 | 10,808 | 45,347 | 41,669 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||||
Fees for services to customers | 404 | 423 | 403 | 384 | 368 | 1,614 | 1,326 | |||||||||||||||
ATM and debit card | 704 | 669 | 705 | 641 | 693 | 2,719 | 2,682 | |||||||||||||||
Retail brokerage and advisory income | 184 | 194 | 205 | 205 | 208 | 788 | 786 | |||||||||||||||
Net realized gain on investment securities | (227 | ) | - | 457 | 36 | 766 | 266 | 1,806 | ||||||||||||||
Unrealized gain (loss) on equity securities | 1,602 | (1,174 | ) | (1,446 | ) | (8 | ) | 87 | (1,026 | ) | 926 | |||||||||||
Net gain on sale of loans | - | 6 | - | - | 58 | 6 | 595 | |||||||||||||||
Other | 330 | 366 | 315 | 353 | 348 | 1,364 | 1,660 | |||||||||||||||
Total non-interest income | 2,997 | 484 | 639 | 1,611 | 2,528 | 5,731 | 9,781 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||||
Salaries and employee benefits | 4,464 | 4,371 | 4,205 | 4,266 | 4,540 | 17,306 | 17,453 | |||||||||||||||
Net occupancy and furniture and equipment | 1,259 | 1,314 | 1,274 | 1,265 | 1,273 | 5,112 | 5,015 | |||||||||||||||
Other | 2,396 | 2,129 | 2,267 | 2,282 | 2,322 | 9,074 | 8,529 | |||||||||||||||
Total non-interest expense | 8,119 | 7,814 | 7,746 | 7,813 | 8,135 | 31,492 | 30,997 | |||||||||||||||
Income before income taxes | 7,007 | 4,049 | 3,996 | 4,534 | 5,201 | 19,586 | 20,453 | |||||||||||||||
Provision for income taxes | 1,560 | 634 | 647 | 824 | 1,052 | 3,665 | 3,961 | |||||||||||||||
Net income | $ | 5,447 | $ | 3,415 | $ | 3,349 | $ | 3,710 | $ | 4,149 | $ | 15,921 | $ | 16,492 | ||||||||
Share and Per Share Data: | ||||||||||||||||||||||
Net income - basic | $ | 1.52 | $ | 0.96 | $ | 0.94 | $ | 1.04 | $ | 1.17 | $ | 4.47 | $ | 4.64 | ||||||||
Net income - diluted | $ | 1.52 | $ | 0.96 | $ | 0.94 | $ | 1.04 | $ | 1.17 | $ | 4.47 | $ | 4.64 | ||||||||
Book value | $ | 19.84 | $ | 16.25 | $ | 23.47 | $ | 28.81 | $ | 38.41 | $ | 19.84 | $ | 38.41 | ||||||||
Cash dividends | $ | 0.36 | $ | 0.36 | $ | 0.36 | $ | 0.36 | $ | 0.35 | $ | 1.44 | $ | 1.40 | ||||||||
Average common shares outstanding - basic | 3,577,587 | 3,567,987 | 3,559,185 | 3,552,854 | 3,549,584 | 3,564,481 | 3,553,949 | |||||||||||||||
Average common shares outstanding - diluted | 3,577,587 | 3,567,987 | 3,559,185 | 3,554,456 | 3,550,542 | 3,564,481 | 3,554,138 | |||||||||||||||
Consolidated Selected Financial Data (unaudited) | ||||||||||||||||||||||
(Dollars in thousands, except per share data) | Three months ended, | Twelve months ended | ||||||||||||||||||||
For the period: | ||||||||||||||||||||||
Selected Ratios: | ||||||||||||||||||||||
Return on average assets | 1.24 | % | 0.78 | % | 0.79 | % | 0.90 | % | 0.98 | % | 0.93 | % | 1.04 | % | ||||||||
Return on average shareholders' equity | 14.38 | % | 9.20 | % | 9.28 | % | 10.60 | % | 11.82 | % | 10.90 | % | 12.19 | % | ||||||||
Net interest margin (tax equivalent) | 2.68 | % | 2.72 | % | 2.73 | % | 2.71 | % | 2.68 | % | 2.71 | % | 2.79 | % | ||||||||
Efficiency ratio (tax equivalent) | 56.20 | % | 64.88 | % | 64.98 | % | 62.35 | % | 59.29 | % | 61.82 | % | 58.69 | % | ||||||||
Average shareholders' equity to total average assets | 8.65 | % | 8.53 | % | 8.51 | % | 8.43 | % | 8.53 | % | 8.54 | % | 8.53 | % | ||||||||
Net loan charge-offs (recoveries) | $ | (43 | ) | $ | (41 | ) | $ | (66 | ) | $ | (47 | ) | $ | 30 | $ | (197 | ) | $ | 100 | |||
Net loan charge-offs (recoveries) - annualized / Average loans excluding held-for-sale | -0.02 | % | -0.02 | % | -0.03 | % | -0.02 | % | 0.01 | % | -0.02 | % | 0.01 | % | ||||||||
Balance Sheet (Average) | ||||||||||||||||||||||
Assets | $ | 1,737,679 | $ | 1,727,132 | $ | 1,700,600 | $ | 1,675,385 | $ | 1,672,267 | $ | 1,710,449 | $ | 1,585,627 | ||||||||
Investment securities (AFS & Equities) | 673,117 | 691,010 | 710,856 | 710,109 | 690,792 | 696,158 | 565,924 | |||||||||||||||
Loans receivable | 1,020,102 | 984,968 | 944,773 | 918,602 | 918,631 | 967,438 | 928,017 | |||||||||||||||
Deposits | 1,462,654 | 1,475,668 | 1,458,921 | 1,444,049 | 1,440,611 | 1,460,416 | 1,359,100 | |||||||||||||||
Shareholders' equity | 150,281 | 147,296 | 144,688 | 141,986 | 139,227 | 146,088 | 135,324 |
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis) | |||||||||||||||
Three Months Ended | |||||||||||||||
Average | Average | Average | Average | ||||||||||||
Balance | Rate | Interest | Balance | Rate | Interest | ||||||||||
Assets | |||||||||||||||
Investment securities: | |||||||||||||||
$ | 298 | 1.50 | % | $ | 1 | $ | - | 0.00 | % | $ | - | ||||
101,941 | 1.11 | 283 | 97,975 | 1.07 | 262 | ||||||||||
State and municipal | 124,514 | 2.35 | 731 | 127,969 | 2.39 | 766 | |||||||||
Mortgage-backed and CMOs | 428,186 | 1.62 | 1,737 | 444,048 | 1.33 | 1,472 | |||||||||
Corporate debt securities | 6,647 | 4.38 | 73 | 6,710 | 4.33 | 72 | |||||||||
Equities | 11,531 | 3.50 | 102 | 14,090 | 3.14 | 111 | |||||||||
Total investment securities | 673,117 | 1.74 | 2,927 | 690,792 | 1.55 | 2,683 | |||||||||
Loans: | |||||||||||||||
Commercial real estate | 678,061 | 4.43 | 7,578 | 585,184 | 4.06 | 5,988 | |||||||||
Residential real estate | 106,045 | 3.47 | 920 | 98,233 | 3.35 | 823 | |||||||||
Home equity loans | 58,860 | 5.63 | 835 | 56,232 | 3.27 | 462 | |||||||||
Commercial and industrial | 152,183 | 6.14 | 2,357 | 154,080 | 4.90 | 1,903 | |||||||||
Consumer loans | 4,298 | 6.65 | 72 | 4,873 | 5.11 | 63 | |||||||||
Tax-exempt loans | 20,655 | 3.44 | 179 | 22,093 | 3.29 | 183 | |||||||||
Total loans, net of unearned income* | 1,020,102 | 4.64 | 11,941 | 920,695 | 4.06 | 9,422 | |||||||||
Other earning assets | 4,360 | 3.93 | 43 | 18,740 | 0.39 | 18 | |||||||||
Total earning assets | 1,697,579 | 3.49 | 14,911 | 1,630,227 | 2.95 | 12,123 | |||||||||
Cash and due from banks | 12,854 | 14,364 | |||||||||||||
Allowance for loan losses | (11,351 | ) | (11,220 | ) | |||||||||||
Other assets | 38,597 | 38,896 | |||||||||||||
Total assets | $ | 1,737,679 | $ | 1,672,267 | |||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||
Interest-bearing deposits: | |||||||||||||||
Interest-bearing demand | $ | 351,283 | 0.46 | 412 | $ | 329,406 | 0.19 | 154 | |||||||
Municipals | 127,252 | 2.91 | 933 | 140,378 | 0.32 | 113 | |||||||||
Money market | 132,282 | 0.65 | 216 | 138,309 | 0.32 | 110 | |||||||||
Savings | 433,930 | 0.79 | 863 | 413,047 | 0.30 | 309 | |||||||||
Time < | 91,196 | 0.88 | 201 | 94,801 | 0.83 | 198 | |||||||||
Time | 60,200 | 1.38 | 209 | 51,425 | 0.74 | 96 | |||||||||
Time > | 25,103 | 1.05 | 66 | 24,673 | 0.77 | 48 | |||||||||
Total interest-bearing deposits | 1,221,246 | 0.94 | 2,900 | 1,192,039 | 0.34 | 1,028 | |||||||||
Short-term borrowings | 106,295 | 1.94 | 520 | 72,820 | 0.34 | 62 | |||||||||
Long-term debt | 10,000 | 1.57 | 40 | 10,000 | 1.57 | 40 | |||||||||
Total interest-bearing liabilities | 1,337,541 | 1.03 | 3,460 | 1,274,859 | 0.35 | 1,130 | |||||||||
Non-interest-bearing deposits | 241,408 | 248,572 | |||||||||||||
Other liabilities | 8,449 | 9,609 | |||||||||||||
Shareholders' equity | 150,281 | 139,227 | |||||||||||||
Total liabilities and | |||||||||||||||
shareholders' equity | $ | 1,737,679 | $ | 1,672,267 | |||||||||||
Net interest rate spread | 2.46 | % | 2.60 | % | |||||||||||
Margin/net interest income | 2.68 | % | $ | 11,451 | 2.68 | % | $ | 10,993 | |||||||
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%. | |||||||||||||||
Non-accrual loans and investment securities are included in earning assets. | |||||||||||||||
* Includes loans held-for-sale |
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis) | |||||||||||||||
Year Ended | |||||||||||||||
Average | Average | Average | Average | ||||||||||||
Balance | Rate | Interest | Balance | Rate | Interest | ||||||||||
Assets | |||||||||||||||
Investment securities: | |||||||||||||||
$ | 524 | 1.18 | % | $ | 6 | $ | - | 0.00 | % | $ | - | ||||
101,455 | 1.10 | 1,119 | 80,340 | 1.05 | 842 | ||||||||||
State and municipal | 128,126 | 2.39 | 3,056 | 112,011 | 2.47 | 2,765 | |||||||||
Mortgage-backed and CMOs | 447,369 | 1.58 | 7,059 | 351,801 | 1.29 | 4,540 | |||||||||
Corporate debt securities | 6,673 | 4.37 | 291 | 7,291 | 4.01 | 292 | |||||||||
Equities | 12,011 | 3.32 | 399 | 14,481 | 3.02 | 437 | |||||||||
Total investment securities | 696,158 | 1.71 | 11,930 | 565,924 | 1.57 | 8,876 | |||||||||
Loans: | |||||||||||||||
Commercial real estate | 637,023 | 4.20 | 26,759 | 556,822 | 4.15 | 23,098 | |||||||||
Residential real estate | 104,397 | 3.34 | 3,484 | 95,241 | 3.41 | 3,244 | |||||||||
Home equity loans | 56,155 | 4.38 | 2,459 | 57,311 | 3.29 | 1,886 | |||||||||
Commercial and industrial | 145,579 | 5.10 | 7,432 | 193,491 | 4.75 | 9,189 | |||||||||
Consumer loans | 4,512 | 5.63 | 254 | 5,097 | 4.98 | 254 | |||||||||
Tax-exempt loans | 19,778 | 3.42 | 676 | 24,026 | 3.47 | 835 | |||||||||
Total loans, net of unearned income* | 967,444 | 4.24 | 41,064 | 931,988 | 4.13 | 38,506 | |||||||||
Other earning assets | 5,782 | 2.42 | 140 | 36,715 | 0.26 | 94 | |||||||||
Total earning assets | 1,669,384 | 3.18 | 53,134 | 1,534,627 | 3.09 | 47,476 | |||||||||
Cash and due from banks | 13,803 | 23,408 | |||||||||||||
Allowance for loan losses | (11,287 | ) | (11,157 | ) | |||||||||||
Other assets | 38,549 | 38,749 | |||||||||||||
Total assets | $ | 1,710,449 | $ | 1,585,627 | |||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||
Interest-bearing deposits: | |||||||||||||||
Interest-bearing demand | $ | 345,054 | 0.27 | 933 | $ | 307,258 | 0.20 | 624 | |||||||
Municipals | 122,824 | 1.43 | 1,758 | 127,828 | 0.32 | 411 | |||||||||
Money market | 137,830 | 0.45 | 617 | 122,361 | 0.31 | 381 | |||||||||
Savings | 443,104 | 0.49 | 2,175 | 386,630 | 0.30 | 1,178 | |||||||||
Time < | 91,216 | 0.79 | 723 | 98,986 | 0.93 | 921 | |||||||||
Time | 52,314 | 0.93 | 489 | 52,693 | 0.86 | 454 | |||||||||
Time > | 25,296 | 0.83 | 209 | 26,833 | 0.96 | 257 | |||||||||
Total interest-bearing deposits | 1,217,638 | 0.57 | 6,904 | 1,122,589 | 0.38 | 4,226 | |||||||||
Short-term borrowings | 106,295 | 1.00 | 861 | 72,820 | 0.36 | 258 | |||||||||
Long-term debt | 10,000 | 1.57 | 159 | 10,000 | 1.57 | 159 | |||||||||
Total interest-bearing liabilities | 1,333,933 | 0.60 | 7,924 | 1,205,409 | 0.39 | 4,643 | |||||||||
Non-interest-bearing deposits | 242,778 | 236,511 | |||||||||||||
Other liabilities | 8,069 | 9,545 | |||||||||||||
Shareholders' equity | 146,088 | 135,324 | |||||||||||||
Total liabilities and | |||||||||||||||
shareholders' equity | $ | 1,730,868 | $ | 1,586,789 | |||||||||||
Net interest rate spread | 2.58 | % | 2.70 | % | |||||||||||
Margin/net interest income | 2.71 | % | $ | 45,210 | 2.79 | % | $ | 42,833 | |||||||
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21% | |||||||||||||||
Non-accrual loans and investment securities are included in earning assets. | |||||||||||||||
* Includes loans held-for-sale |
Contacts:David W. Freeman President & Chief Executive Officer 215-538-5600 x-5619 dfreeman@qnbbank.comJeffrey Lehocky Chief Financial Officer 215-538-5600 x-5716 jlehocky@qnbbank.com
Source:
2023 GlobeNewswire, Inc., source