QNB Corp. Reports Earnings for Second Quarter 2025

QNB Corp., the parent company of QNB Bank, has released its financial results for the second quarter of 2025. The company reported a significant increase in net income, driven by improvements in net interest income and a reduction in credit loss provisions.

Financial Highlights

For the second quarter of 2025, QNB Corp. reported a net income of $3.88 million, or $1.04 per diluted share, compared to $2.47 million, or $0.67 per diluted share, for the same period in 2024. For the six months ended June 30, 2025, net income was $6.46 million, or $1.74 per diluted share, up from $5.06 million, or $1.38 per diluted share, in the same period of 2024.

The net interest margin improved to 2.69% for the second quarter of 2025, up from 2.46% in the same period of 2024. Net interest income for the quarter was $12.65 million, an increase of $2.06 million from the previous year.

Business and Operational Highlights

The bank's operating performance improved due to a $2.92 million increase in net interest income and a $260,000 reduction in the provision for credit losses. However, this was partially offset by a $146,000 decrease in non-interest income and a $539,000 increase in non-interest expense.

Total assets as of June 30, 2025, were $1.88 billion, compared to $1.87 billion at the end of 2024. Total deposits increased by $23.13 million to $1.65 billion, while loans receivable grew by $2.49 million to $1.22 billion.

Strategic Initiatives and Corporate Developments

QNB Corp. saw a decline in long-term borrowing by $30 million and an increase in short-term borrowing by $13.62 million. The company also recorded a reversal of $145,000 in the provision for credit losses on loans for the second quarter of 2025, compared to a $132,000 provision in the same period of 2024.

Management's Perspective

David W. Freeman, President and CEO, commented, "Consistent with the first quarter, the Bank’s operating performance continued to improve in the second quarter, primarily driven by an expanding net interest margin that positively impacted net interest income. Loan and deposit balances remained stable, with modest increases. This tempered growth reflects our customers’ continued cautious borrowing and spending amid ongoing economic uncertainty. Looking ahead, we remain cautiously optimistic about the second half of the year, supported by a strengthening pipeline and signs of businesses adapting to a new economic environment."

Future Outlook

The company remains cautiously optimistic about the second half of the year, supported by a strengthening pipeline and signs of businesses adapting to a new economic environment.

SEC Filing: QNB CORP. [ QNBC ] - 8-K - Jul. 22, 2025