Executive Summary

Q4 2024 delivered materially stronger profitability: net income rose to $3.051M and diluted EPS reached $0.83, up from $1.134M and $0.31 in Q4 2023, driven by higher net interest income, gains in non-interest income, and a reversal of credit loss provision .
Net interest margin remained stable at 2.38% (tax-equivalent) while cost of funds increased due to deposit repricing and subordinated debt; asset quality metrics were steady with NPLs at 0.16% of loans .
Non-interest income swung positive on securities gains, including realized gains tied to Visa shares and sales of equity securities; efficiency ratio improved vs prior year but worsened sequentially vs Q3 .
No formal revenue/EPS guidance issued; dividend maintained at $0.37 in Q4 and raised to $0.38 for Q1 2025, signaling confidence in earnings power into 2025 .
Estimate comparison unavailable: S&P Global consensus estimates for QNBC were not retrievable at time of writing; results likely prompt constructive reassessment given strong YoY and sequential trends (see Estimates Context) [*S&P Global data unavailable].

What Went Well and What Went Wrong

What Went Well

Net income and EPS surged YoY: $3.051M and $0.83 vs $1.134M and $0.31, respectively, reflecting stronger core profitability and non-interest income improvement .
Management executed on balance sheet strategy: higher-yield purchases and swaps lifted asset yields; loan growth (commercial real estate) supported NII and NIM resilience despite higher funding costs .
CEO emphasized disciplined management and optimism for 2025: “We are focused on top-line growth, prudent use of capital, and managing our balance sheet… We will continue to capitalize on market opportunities and are optimistic moving into 2025.” — David W. Freeman, President & CEO .

What Went Wrong

Cost of interest-bearing liabilities increased 36 bps YoY to 2.91% in Q4, reflecting deposit repricing and subordinated debt interest burden .
Efficiency ratio deteriorated sequentially to 71.16% from 65.28% in Q3, as expenses rose; salaries and benefits increased 7.7% YoY in Q4 (bonuses tied to improved financial goals) .
Asset classification migration: commercial loans classified as substandard/doubtful increased to $27.652M from $11.610M YoY, largely in commercial real estate, warranting continued monitoring even amid low charge-offs .

Financial Results

Quarterly Financial Comparison (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Income ($USD Thousands)	$2,465	$3,338	$3,051
Diluted EPS ($USD)	$0.67	$0.91	$0.83
Net Interest Income ($USD Thousands)	$10,592	$11,127	$10,975
Total Non-Interest Income ($USD Thousands)	$1,465	$1,967	$1,645
Provision for Credit Losses ($USD Thousands)	$114	$159	(255)
Net Interest Margin (tax-equivalent, %)	2.46%	2.48%	2.38%
Efficiency Ratio (tax-equivalent, %)	73.26%	65.28%	71.16%

Note: The press release narrative references a $242k provision reversal for Q4 vs the table’s (255) value; use (255) for quantitative consistency and acknowledge the narrative discrepancy .

Q4 vs Prior Quarter vs Prior Year (oldest → newest)

Metric	Q4 2023	Q3 2024	Q4 2024
Net Income ($USD Thousands)	$1,134	$3,338	$3,051
Diluted EPS ($USD)	$0.31	$0.91	$0.83
Provision for Credit Losses ($USD Thousands)	$293	$159	(255)
Total Non-Interest Income ($USD Thousands)	$283	$1,967	$1,645
Salaries & Employee Benefits ($USD Thousands)	$4,717	$4,650	$5,079
Net Interest Margin (tax-equivalent, %)	2.36%	2.48%	2.38%

Segment Contribution (Q4 2024 vs Q4 2023)

Metric	Q4 2023	Q4 2024
QNB Bank Net Income ($USD Thousands)	$827	$3,771
QNB Corp Contribution ($USD Thousands)	$307	$(720)
Consolidated Net Income ($USD Thousands)	$1,134	$3,051

KPIs and Balance Sheet (Period-End)

Metric	Q2 2024	Q3 2024	Q4 2024
Assets ($USD Thousands)	$1,761,487	$1,841,563	$1,870,894
Loans Receivable ($USD Thousands)	$1,162,310	$1,171,361	$1,216,048
Deposits ($USD Thousands)	$1,572,839	$1,626,284	$1,628,541
Non-Performing Loans ($USD Thousands)	$2,078	$1,696	$1,975
NPLs / Loans (%)	0.18%	0.14%	0.16%
ACL / Loans (%)	0.76%	0.77%	0.72%
Shareholders’ Equity ($USD Thousands)	$96,885	$105,340	$103,349
Subordinated Debt (Carrying Value, $USD Thousands)	—	$39,030	$39,068

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q4 2024	$0.37 (declared Nov 26, 2024)	$0.37 (paid Dec 27, 2024)	Maintained
Dividend per share	Q1 2025	$0.37	$0.38 (declared Feb 25, 2025)	Raised
Revenue/EPS/NIM/OpEx/Tax rate	Q4 2024	Not provided	Not provided	Maintained (no formal guidance)

Management did not issue quantitative forward guidance in the Q4 materials; narrative commentary emphasized optimism and focus on margin and top-line growth .

Earnings Call Themes & Trends

No Q4 earnings call transcript was available in the document catalog; themes below reflect management commentary across Q2–Q4 press releases.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Net Interest Margin	Q2: 2.46%; strategy included selling lower-yield securities/reinvesting, swaps aided investment yields . Q3: 2.48%; asset yields up 58 bps YoY .	2.38%; yield on earning assets +34 bps YoY; funding costs +36 bps YoY .	Stable YoY with modest sequential pressure .
Deposit Pricing / Cost of Funds	Q2: cost of interest-bearing liabilities +77 bps YoY . Q3: +55 bps YoY .	+36 bps YoY; deposit growth slowed in Q4 .	Continued upward pressure; pace moderating .
Loan Growth (CRE emphasis)	Q2: CRE ~46% of AEA; loan yields +62 bps . Q3: CRE ~45% of AEA; loan yields +47 bps .	CRE ~45% of AEA; loan yields +50 bps .	Sustained growth and higher yields .
Securities Repositioning / Visa Shares	Q2: realized loss $1.096M, offset by $1.016M equity unrealized gain; Visa C-share exchange unrealized gain $1.354M . Q3: continued repositioning; modest realized gains .	Realized equity gains including $1.498M from Visa C sales; net realized/unrealized gain in Q4 .	Positive contribution intensifies .
Asset Quality	Q2: NPLs 0.18%; ACL 0.76%; net charge-offs minimal . Q3: NPLs 0.14%; low net charge-offs .	NPLs 0.16%; net charge-offs $1; ACL 0.72% .	Stable, low losses .
Capital Actions	Q3: $40M subordinated debt issued .	Sub debt carrying value $39.068M at 12/31; long-term debt +$20M YoY .	Supports growth, raises funding cost .
Efficiency and Expenses	Q2: efficiency 73.26% . Q3: improved to 65.28% .	71.16%; salaries/benefits +7.7% YoY; bonuses tied to goals .	Mixed; sequentially weaker vs Q3 .

Management Commentary

“Assets increased by 9.6% during the year, driven by growth in our loan portfolio… We continued to realize improvement in Net Interest Income… optimistic moving into 2025.” — David W. Freeman, President & CEO .
“We continue to experience strong growth in customer loan and deposit balances, which has led to improvement in our net interest income and margin… Sub-Debt issuance has further strengthened our Capital position…” — Q3 perspective, David W. Freeman .
Strategic balance sheet actions: proceeds from deposits and debt were invested in loans and higher-yielding securities; interest rate swaps and reinvestment increased investment yields .

Q&A Highlights

No Q4 2024 earnings call transcript was available in the document set; no Q&A themes or guidance clarifications could be sourced from transcripts [ListDocuments: earnings-call-transcript returned none].

Estimates Context

Wall Street consensus (S&P Global) for QNBC’s Q4 2024 EPS and revenue was unavailable at the time of writing due to data retrieval limitations; therefore, explicit beat/miss vs consensus cannot be determined [*Values retrieved from S&P Global unavailable].
Given YoY EPS and net income strength and improved non-interest income, sell-side expectations (where applicable) may need upward revision; however, we refrain from quantifying without accessible consensus .

Key Takeaways for Investors

Strong YoY profit inflection: EPS rose to $0.83 and net income to $3.051M, supported by higher NII, securities gains, and provision reversal; sequential performance remained solid despite higher funding costs .
Balance sheet growth intact: loans up 11.2% YoY to $1.216B; deposits up 9.4% YoY to $1.629B; asset base reached $1.871B .
Margin resilience amid funding pressure: NIM at 2.38% with asset yields rising; watch funding costs as deposit repricing and sub debt interest continue to weigh .
Asset quality stable: NPLs at 0.16% of loans; net charge-offs negligible; ACL/loans at 0.72%—adequate coverage given low loss experience .
Non-interest income catalysts: realized gains from Visa share actions and equity security sales boosted Q4; management also sold lower-yielding securities to support future NIM .
Shareholder returns: dividend maintained at $0.37 in Q4 and raised to $0.38 in Q1 2025, indicating confidence in earnings trajectory .
Strategic visibility and liquidity access: sub debt strengthened capital for growth; OTCQX upgrade enhances trading transparency and investor access, a potential stock liquidity catalyst .

Appendix: Additional Data Points and Notes

Yield on earning assets increased to 4.78% in Q4 (up 34 bps YoY), while cost of interest-bearing liabilities rose to 2.91% (up 36 bps YoY) .
Efficiency ratio moved to 71.16% in Q4 from 65.28% in Q3, with salaries and payroll taxes higher due to bonuses tied to improved financial goals .
Minor discrepancy: Q4 “provision reversal” referenced as $242k in narrative vs $(255)k in the financial table; we used the table for quantitative analysis and noted the narrative difference .

QNB CORP (QNBC)·Q4 2024 Earnings Summary