- QNB Corp. reported Q1 2025 net income of $2.578 million, or $0.69 per diluted share, down from $2.594 million, or $0.71 per share, in Q1 2024.
- The company's net interest income increased by $2.629 million to $22.198 million, with a net interest margin improvement to 2.51%.
- Total deposits grew by $36.014 million (2.2%) to $1.664 billion in Q1 2025.
QNB Corp. (OTCQX: QNBC) announced its financial results for the first quarter of 2025, reporting a net income of $2.578 million, or $0.69 per diluted share, compared to $2.594 million, or $0.71 per share, in the first quarter of 2024. The company's return on average assets was 0.54%, and return on average equity was 6.24%.
Total assets increased to $1.89 billion from $1.87 billion at the end of December 2024. Net interest income saw a boost of $2.629 million, reaching $22.198 million, while the net interest margin improved to 2.51% from 2.39% in the previous year. This increase was primarily driven by higher average interest rates on loan portfolios combined with decreased rates on interest-bearing deposits.
Total deposits rose by $36.014 million (2.2%) to $1.664 billion. However, loans receivable slightly decreased by 0.3%, totaling $1.21 billion. The bank set aside a provision for credit losses of $551,000 in Q1 2025, with non-performing loans increasing to $8.407 million (0.69% of loans receivable), largely due to one commercial customer relationship.
David W. Freeman, President and CEO of QNB Corp., commented on the bank's performance, noting the all-time high in net interest income for the first quarter. He highlighted the company's cautious approach to asset quality and plans for responsible growth amidst economic uncertainties.
