QNB CORP.
For the period ended Jun 30, 2026. Filed Aug 10, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 10, 2026
QNBC$47.46+1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001193125-26-206302
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001193125-26-342264
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 123 previous paragraphs and 147 current paragraphs.
48 unchanged; 64 reworded; 31 added; 10 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 10 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
The Bank contributed $4,575,000 to net income for the three months ended June 30, 2026 compared to $4,679,000 for the same period 2025; and the holding company had a negative contribution of $1,560,000 to net income for the three months ended June 30, 2026 compared to a negative contribution of $796,000 for the same period of 2025. The operating performance of the Bank included three months of post-merger activity and improved for the quarter ended June 30, 2026, in comparison with the same period in 2025, due primarily to improvement in the interest margin causing a $6,072,000 increase in net interest income and a $499,000 increase in non-interest income; this was partly offset by an increase in non-interest expense of $6,377,000 of which $2,677,000 was due to merger-related costs. The contribution from QNB Corp., which included three months of post-merger activity, for the quarter ended June 30, 2026, declined compared with the same period in 2025, primarily due to a decrease in net interest income of $373,000, related to the subordinated debt acquired in the acquisition, and an increase in non-interest expense of $509,000, primarily due to merger-related expenses of $407,000.
Current report
Net interest income increased $5,699,000 to $18,351,000 and increased $7,271,000 to $31,460,000 for the three and six months ended June 30, 2026, respectively, and includes three months of post-merger activity related to the acquisition of Victory.
Current report
Net interest margin on a tax-equivalent basis increased 47 basis points for the quarter to 3.16% compared to 2.69% for the same period in 2025. Net interest margin on a tax-equivalent basis increased 40 basis points for the six months ended June 30, 2026 to 3.00% compared to 2.60% for the same period in 2025.
Current report
QNB recorded a $218,000 provision for credit losses on loans for the second quarter of 2026, compared with a $145,000 reversal of its provision for credit losses on loans for the second quarter of 2025. QNB recorded $521,000 in its provision for credit losses on loans for the six months ended June 30, 2026, compared with $406,000 for the same period in 2025.
Current report
Non-interest income increased $487,000, to $2,139,000 for the second quarter and $704,000, to $3,940,000 for the six months ended June 30, 2026 compared with the same periods in 2025. Excluding realized and unrealized gains on securities and swap termination loss, non-interest income increased $426,000 to $2,078,000 for the second quarter of 2026 compared to $1,652,000 for the same period in 2025; and increased $643,000, to $3,879,000 for the six months ended June 30, 2026 compared with $3,236,000 the same period in 2025.
Current report
Average earning assets and interest-bearing liabilities for the three and six months ended June 30, 2026 include the three-month impact of acquiring $434,318,000 in interest-earnings assets and $352,654,000 in interest-bearing liabilities which include the cancellation of
Current report
$3,000,0000 in subordinated notes owned by QNB and issued by Victory on the acquisition date. Additionally, total average assets, average liabilities and average equity for the three and six months ended June 30, 2026 include the three-month impact of the acquisition on non-earning assets of $37,735,000, non-interest bearing liabilities of $72,296,000 and equity of $47,103,000.
Current report
QNB acquired $3,000,0000 in federal funds from Victory; these funds matured in the second quarter of 2026.
Current report
2025, primarily due to a $413,526,000 increase in average balances contributing to an increase in interest income of $6,121,000 and a 37-basis point increase in rate from 5.94% in 2025 to 6.31% contributing to an increase of $1,201,000 to interest income.
Current report
Earning assets are funded by deposits and borrowed funds. Average interest-bearing deposits for the three and six months ended June 30, 2026 include the three-month impact of acquiring $338,004,000 from the acquisition of Victory. Average borrowings for the three and six months ended June 30, 2026 include the three-month impact of acquiring $14,650,000 in subordinated debt from the acquisition of Victory. Interest expense increased $1,822,000, when comparing the second quarter of 2026 to the same period in 2025. Interest expense on interest-bearing deposits increased $1,640,000 to $10,404,000 when comparing the second quarters of 2026 and 2025, with a net $364,916,000 increase in average balances contributing to a net increase in interest expense of $1,977,000 and a 12-basis point decrease in yield contributing to a $337,000 decrease in interest expense.
Current report
For the six-month period ended June 30, 2026 average earnings assets increased $235,469,000, or 12.4%, to $2,127,393,000, with average loans increasing 23.0%, average investment securities decreasing 5.0%, and average total deposits increasing $217,373,000, or 13.2%, to $1,858,007,000, compared to the same period in 2025. The net interest margin on a tax-equivalent basis was 3.00% for the six-month period ended June 30, 2026, a 40-basis point increase from the same period in 2025.
Current report
Total interest income on a tax-equivalent basis increased $7,789,000, or 17.1%, to $53,337,000, when comparing the six-month periods ended June 30, 2026 and June 30, 2025 due to an increase in volume and rate on loans. Interest income on loans increased $8,181,000 as a result of volume and increased $1,718,000 as a result of yields. The analysis of the six-month periods is similar to what was described in the quarterly analysis. The yield on earning assets increased from 4.85% to 5.06% for the six-month periods with the yield on loans up 24 basis points to 6.13%.
Current report
Total interest expense increased $528,000 for the six-month period ended June 30, 2026 compared with the same period in 2025 attributable to an increase in volume. Average interest-bearing liabilities increased $191,260,000 and the average rate paid on interest-bearing liabilities decreased 23 basis points to 2.49% for the six-month period ended June 30, 2026 versus the same period in 2025.
Current report
Average interest-bearing deposits increased $184,482,000 and the related interest expense increased $396,000 for the six-month period ended June 30, 2026 versus the same period in 2025. The average balance of total short-term borrowings increased $16,949,000 primarily due to an increase in FHLB borrowings of $19,667,000. Long-term borrowing average balance decreased $17,735,000 and interest expense decreased $423,000 due to maturity. Subordinated debt average balance increased $7,564,000 and interest expense increased $342,000 for the six-month period ended June 30, 2026 compared to the same period of 2025.
Current report
QNB recorded a $3,020,000 allowance for credit losses on loans and a $144,000 allowance for credit losses on unused commitments due to the Victory Merger.
Current report
Total non-interest income for 2026 includes three months of impact from the acquisition of Victory.
Current report
Total non-interest income was $2,139,000 for the second quarter of 2026 compared with $1,652,000 for the same period in 2025. The Bank completed the exchange offer to convert its Visa B-2 shares to B-3 and C shares; the Bank subsequently converted one-third of the Visa C shares to Visa A shares and recorded a $268,000 unrealized gain. Non-interest income for the three-months ended June 30, 2026 also included $96,000 of realized gains on the sales of investment securities and a $303,000 loss on the termination of an interest-rate swap acquired in the acquisition.
Current report
ATM and debit card income increased $87,000 due to usage and merchant fees remained level for the second quarter of 2026 compared with the same period in 2025. Bank-owned life insurance income increased $52,000. Other non-interest income increased $75,000 primarily due to increases in letter of credit fees of $44,000, mortgage and other loan servicing fees of $7,000, and credit card income of $7,000.
Current report
Six-Month Comparison
Current report
Total non-interest income was $3,940,000 for the six months ended June 30, 2026 compared with $3,236,000 for the same period of 2025, an increase of $704,000, compared to the same period of 2025. There was a $268,000 gain related to the conversion of Visa shares, $96,000 of realized gains on the sales of investment securities and a $303,000 loss on the termination of an interest-rate swap as discussed in the three-month comparison.
Current report
Net gain on sale of loans was $44,000 for the six months ended June 30, 2026 compared to a net gain $22,000 for the same period of 2025. Fees for service to customers increased $239,000 for the six months ended June 30, 2026, as overdraft fees increased $97,000 and other deposit-related fees increased $142,000.
Current report
Retail brokerage and advisory fees increased $70,000 for the six months ended June 30, 2026 compared to the same period in 2025. Advisory fees increased $57,000 and transactional fees increased $13,000 for the six months ended June 30, 2026 compared with the same period in 2025.
Current report
Total non-interest expense for 2026 includes three months of impact from the acquisition of Victory.
Current report
Other non-interest expense increased $668,000 due to the amortization of the core deposit intangible related to the Victory acquisition of $332,000, and increase in director fees of $65,000, business development of $82,000, debit card expense of $50,000, bank service fees of $42,000, courier expense of $36,000, and make-whole agreement reserve related to the Visa share exchange of $23,000.
Current report
Six-Month Comparison
Current report
Total non-interest expense was $27,574,000 for the six months ended June 30, 2026, an increase of $8,643,000 compared to the same period of 2025. For the six-month period of 2026, non-interest expense included merger-related cost of $3,972,000. Excluding merger-related costs, noninterest expense increased $4,671,000 for thesix months ended June 30,2026, compared to the same period in 2025.
Current report
Salaries and benefits expense increased $2,533,000 to $12,816,000 when comparing the six months ended June 30, 2026 to the same period in 2025. Salary expense and related payroll taxes increased $2,031,000 to $10,822,000 during the six months ended June 30, 2026 compared to the same period in 2025. Medical and dental premiums, net of employee contributions, increased $365,000 and retirement expense increased $135,000 when comparing the six-month periods.
Current report
Other non-interest expense increased $633,000, due to the reasons described above in the quarter-to-quarter comparison.
Current report
Applicable income tax expense was $817,000 for the quarter ended June 30, 2026, compared to $1,005,000 for the quarter ended June 30, 2025. The effective tax rate for the second quarter of 2026 was 21.3% compared with 20.6% for the same period in 2025. Applicable income tax expense was $1,524,000 for the six months ended June 30, 2026, compared to $1,629,000 for the same period in 2025. The effective tax rate for the six months ended June 30, 2026 was 20.9% compared with 20.1% for the same period in 2025. The increase in the tax rates for 2026 were due to non-taxable merger-related expenses.
Current report
Subordinated debt increased $14,750,000; QNB acquired subordinated debt of $14,650,00 in the Victory Merger, which is net of the cancellation of $3,000,000 of subordinated notes issued by Victory and owned by QNB at the time of the Victory Merger.
Current report
The capital ratios at June 30, 2026 include the impact of the Victory Merger and three months of post merger activity. At June 30, 2026, all capital ratios decreased since December 31, 2025 primarily due to the apportionment of equity acquired, net of disallowed intangible assets, to risk-based assets acquired. The Company remains well-capitalized by all applicable regulatory requirements as of June 30, 2026.
Removed paragraphs (10)
Previous report
period of 2026 was $0.96.
Previous report
Net interest income increased $1,572,000, or 13.6%, to $13,109,000.
Previous report
Net interest margin on a tax-equivalent basis increased 31 basis points for the quarter to 2.82% compared to 2.51% for the same period in 2025.
Previous report
QNB recorded a $303,000 provision for credit losses on loans for the first quarter of 2026, compared with a provision of $551,000 for the same period in 2025.
Previous report
Non-interest income increased $217,000, to $1,801,000 for the first quarter compared with the same period in 2025.
Previous report
8.875% per annum from and including the original issue date of the subordinated notes to but excluding September 1, 2029, payable semi-annually in arrears. From September 1, 2029, through maturity or up to an early redemption date, the interest rate resets quarterly to an interest rate per annum equal to the then current three-month SOFR plus a spread, payable quarterly in arrears. On or after the fifth anniversary of the original issue date through maturity, the QNB has the option to redeem the subordinated debt, in whole or in part, on any scheduled interest payment date. QNB may also redeem the subordinated debt in whole at any time in the event of certain specified events. The subordinated debt will mature on September 1, 2034.
Previous report
Total non-interest income for the first quarter of 2026 was $1,801,000, an increase of $217,000, compared to the first quarter of 2025.
Previous report
Other non-interest expense decreased $35,000, or 3.2%, due to a decrease in write-offs due to fraud on customer accounts of $26,000, director fees of $14,000, debit card expense of $11,000 and loan-related and loan workout costs of $10,000; partly offset by increase in business development cost of $27,000.
Previous report
Applicable income tax expense was $707,000 for the quarter ended March 31, 2026, compared to $624,000 for the quarter ended March 31, 2025. The effective tax rate for the first quarter of 2026 was 20.4% compared with 19.5% for the same period in 2025.
Previous report
At March 31, 2026, common equity Tier 1, Tier 1 capital, and total regulatory capital to risk-weighted assets decreased since December 31, 2025 primarily due to higher-risk loan growth partially offset by a reduction in lower-risk securities. Total leverage ratio increased as capital growth was proportionately greater than quarterly asset growth. The Company remains well-capitalized by all applicable regulatory requirements as of March 31, 2026.
Reworded paragraphs (64)
Previous wording
The merger-related expenses relate to the previously announced acquisition of Victory Bancorp, Inc, a highly complementary community banking franchise headquartered in Limerick, Pennsylvania. This strategic combination brings together two relationship-focused institutions with shared values, similar operating cultures, and strong community ties. The transaction officially closed on April 1, 2026, creating a franchise with nearly $2.4 billion in assets and expanding our presence deeper into Montgomery County.
Current wording
On April 1, 2026, QNB closed the acquisition of Victory Bancorp, Inc. ("Victory"), a highly complementary community banking franchise headquartered in Limerick, Pennsylvania, creating a franchise with nearly $2.4 billion in assets and expanding our presence deeper into Montgomery County. This strategic combination brings together two relationship-focused institutions with shared values, similar operating cultures, and strong community ties. Results for the three and six months of 2026 include three months of post-merger activity related to the acquisition of Victory.
Previous wording
Disclosure of our significant accounting policies is included in Note 1 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2025, which is incorporated herein by reference. Some of these policies are particularly sensitive requiring significant judgments, estimates and assumptions.
Current wording
Disclosure of our significant accounting policies is included in Note 1 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2025, which is incorporated herein by reference. Some of these policies were impacted by the acquisition of Victory; the updates are details in Note 2 of this Form 10-Q. Some of these policies are particularly sensitive requiring significant judgments, estimates and assumptions.
Previous wording
QNB reported net income for the first quarter of 2026 of $2,765,000, or $0.73 per share on a diluted basis, compared to net income of $2,578,000, or $0.69 per share on a diluted basis, for the same period in 2025. For the three-month period of 2026, net income included after-tax merger-related cost of $754,000. The merger-related costs are significant one-time costs and are not normal recurring operating expenses. Adjusted diluted earnings per share excluding the impact of the merger-related cost for the three-month
Current wording
Results for the three and six months of 2026 include three months of post-merger activity related to the acquisition of Victory. QNB reported net income for the second quarter of 2026 of $3,015,000, or $0.60 per share on a diluted basis, compared to net income of $3,883,000, or $1.04 per share on a diluted basis, for the same period in 2025. For the three-month period of 2026, net income included after-tax merger-related cost of $2,227,000. The merger-related costs are significant one-time costs, related to the acquisition of Victory and are not normal recurring operating expenses. Adjusted diluted earnings per share excluding the impact of the merger-related cost for the three-month period of 2026 was $1.05.
Previous wording
The Bank contributed $3,759,000 to net income for the three months ended March 31, 2026 compared to $3,292,000 for the same period 2025; and the holding company had a negative contribution of $994,000 to net income for the three months ended March 31, 2026 compared to a negative contribution of $714,000 for the same period 2025. The improved results at the Bank were primarily due to improvement in the interest margin causing a $1,849,000 increase in net interest income and a $229,000 increase in non-interest income; this was partly offset by and an increase in non-interest expense of $1,500,000, of which $622,000 was related to merger-related costs. The change in contribution from QNB Corp. is primarily due to a decrease in net interest income of $27,000 and an increase in non-interest expense of $281,000, primarily due to merger-related expenses of $266,000.
Current wording
The Bank contributed $8,334,000 of net income for the six months ended June 30 2026 compared to $7,971,000 for the same period 2025; and the holding company had a negative contribution of $2,554,000 to net income for the six months ended June 30, 2026 compared to a negative contribution of $1,510,000 for the same period 2025. The improved results at the Bank were primarily due to improvement in the interest margin causing a $7,671,000 increase in net interest income and a $728,000 increase in non-interest income; this was partly offset by and an increase in non-interest expense of $7,877,000, of which $3,299,000 was related to merger-related costs. The change in contribution from QNB Corp. is primarily due to a decrease in net interest income of $400,000 and an increase in non-interest expense of $790,000, primarily due to merger-related expenses of $673,000.
Previous wording
Net income expressed as an annualized rate of return on average assets and average shareholders’ equity was 0.59% and 8.40%, respectively, for the quarter ended March 31, 2026, compared with 0.56% and 9.73%, respectively, for the quarter ended March 31, 2025. Return on average assets and return on average shareholders’ equity, excluding the impact of the merger-related cost, for the three-month period of 2026 was 0.75% and 10.69%, respectively.
Current wording
Net income expressed as an annualized rate of return on average assets and average shareholders’ equity was 0.50% and 6.65%, respectively, for the quarter ended June 30, 2026, compared with 0.83% and 14.25%, respectively, for the quarter ended June 30, 2025. Return on average assets and return on average shareholders’ equity, excluding the impact of the merger-related cost, for the three-month period of 2026 was 0.88% and 11.56%, respectively. Net income expressed as an annualized rate of return on average assets and average shareholders’ equity was 0.54% and 7.38%, respectively, for the six months ended June 30, 2026, compared with 0.69% and 12.02%, respectively, for the six months ended June 30, 2025. Return on average assets and return on average shareholders’ equity, excluding the impact of the merger-related cost, for the six-month period of 2026 was 0.85% and 11.54%, respectively.
Previous wording
Total assets as of March 31, 2026 were $1,923,123,000, compared with $1,906,005,000 at December 31, 2025. Loans receivable at March 31, 2026 were $1,282,773,000, a $20,699,000 increase from $1,262,074,000 at December 31, 2025. Total deposits of $1,653,431,000 at March 31, 2026 increased $10,920,000 compared with total deposits of $1,642,511,000 at December 31, 2025.
Current wording
Total assets as of June 30, 2026 were $2,398,970,000, compared with $1,906,005,000 at December 31, 2025. Loans receivable at June 30, 2026 were $1,716,599,000; excluding the $408,379,000 in acquired loans, QNB recognized a $46,146,000, or 3.7%, increase from $1,262,074,000 at December 31, 2025. Total deposits of $2,067,151,000 at June 30, 2026 increased $15,475,000, excluding the $409,165,000 in deposits acquired, compared with total deposits of $1,642,511,000 at December 31, 2025.
Previous wording
Results for the three months ended March 31, 2026 include the following significant components:
Current wording
Results for the three and six months ended June 30, 2026 include the following significant components:
Previous wording
Non-interest expense increased $1,769,000 to $11,138,000 for the first quarter of 2026 compared with the same period in 2025. Non-interest expense, excluding merger-related costs increased $881,000, or 9.4% to $10,250,000 for the first quarter of 2026 compared with the same period in 2025.
Current wording
Non-interest expense increased $6,874,000 to $16,436,000 for the second quarter of 2026 compared with the same period in 2025. Non-interest expense, excluding merger-related costs increased $3,790,000 to $13,352,000 for the second quarter of 2026 compared with the same period in 2025. Non-interest expense increased $1,769,000 to $11,138,000 for the second quarter of 2026 compared with the same period in 2025. Non-interest expense, excluding merger-related costs increased $4,671,000 to $23,602,000 for the six months ended June 30, 2026 compared with the same period in 2025. Non-interest expense includes three months of post-merger activity related to the acquisition of Victory.
Previous wording
Total non-performing loans, comprised of loans on non-accrual status, were $9,614,000, or 0.75% of loans receivable at March 31, 2026, compared to $8,793,000, or 0.70% of loans receivable at December 31, 2025. Net loan recoveries for the three months ended March 31, 2026 were $13,000, compared with net recoveries of $3,000 for the same period in 2025.
Current wording
Total non-performing loans, comprised of loans on non-accrual status, were $10,418,000, or 0.61% of loans receivable at June 30, 2026, compared to $8,793,000, or 0.70% of loans receivable at December 31, 2025. Net loan recoveries for the six months ended June 30, 2026 were $14,000, compared with net recoveries of $19,000 for the same period in 2025.
Previous wording
The following table presents the adjustment to convert net interest income to net interest income on a fully taxable-equivalent basis for the three-month periods ended March 31, 2026 and 2025.
Current wording
The following table presents the adjustment to convert net interest income to net interest income on a fully taxable-equivalent basis for the three- and six-month periods ended June 30, 2026 and 2025.
Previous wording
Net interest income is the primary source of operating income for QNB. Net interest income is interest income, dividends, and fees on earning assets, less interest expense incurred for funding sources. Earning assets primarily include loans, investment securities, interest bearing balances at the Federal Reserve Bank and Federal funds sold. Sources used to fund these assets include deposits and borrowed funds. Net interest income is affected by changes in interest rates, the volume and mix of earning assets and interest-bearing liabilities, and the amount of earning assets funded by non-interest-bearing deposits.
Current wording
Net interest income is the primary source of operating income for QNB. Net interest income is interest income, dividends, fees on earning assets and the amortization and accretion of fair value premiums and discounts on acquired earnings assets, less interest expense incurred funding sources and the amortization and accretion of fair value premiums and discounts on acquired interest-bearing liabilities. Earning assets primarily include loans, investment securities, interest-bearing balances at the Federal Reserve Bank and Federal funds sold. Sources used to fund these assets include deposits and borrowed funds. Net interest income is affected by changes in interest rates, the volume and mix of earning assets and interest-bearing liabilities, and the amount of earning assets funded by non-interest-bearing deposits.
Previous wording
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the marginal Federal corporate tax rate of 21 percent for three months ended March 31, 2026 and 2025.
Current wording
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the marginal Federal corporate tax rate of 21 percent for three and six months ended June 30, 2026 and 2025.
Previous wording
Average earning assets for the first quarter of 2026 were $1,907,593,000, an increase of $22,630,000, or 1.2%, from the first quarter of 2025, with average loans increasing $62,834,000, or 5.2%, and average investment securities decreasing $29,663,000, or 4.7%, over the same period in 2025. Proceeds from payments on and maturities of investment securities along with interest-earning deposits over the past year were invested in higher-yielding loans. Average loans as a percentage of average earning assets was 66.8% for the first quarter of 2026, compared to 64.2% for the first quarter of 2025. On the funding side, average deposits increased $5,644,000, or 0.3%, to $1,638,840,000 for the first quarter of 2026. Average short-term borrowed funds, which consisted primarily of average commercial repurchase agreements and FHLB borrowings, increased $36,044,000 to $83,573,000 for the first quarter of 2026 compared to $47,529,000 for the same period in 2025. Proceeds from the issuance of short-term debt were used to payoff long-term debt which decreased $30,111,000 on average.
Current wording
Average earning assets for the second quarter of 2026 were $2,344,775,000, an increase of $445,967,000, or 23.5%, from the second quarter of 2025, with average loans increasing $493,981,000, or 40.6%, and average investment securities decreasing $33,261,000, or 5.4%, over the same period in 2025. Average loans as a percentage of average earning assets was 72.9% for the second quarter of 2026, compared to 64.1% for the second quarter of 2025. On the funding side, average deposits increased $426,776,000, or 25.9%, to $2,074,766,000 for the second quarter of 2026. Average short-term borrowed funds, which consisted primarily of average commercial repurchase agreements and FHLB borrowings, decreased $1,936,000 to $69,006,000 for the second quarter of 2026 compared to $70,942,000 for the same period in 2025. Subordinated debt increased $14,850,000, as a result of the Victory Merger, to $53,991,000.
Previous wording
The net interest margin for the first quarter of 2026 increased 31 basis points to 2.82% from 2.51% for the same period in 2025. Competition for quality loans and deposits in our local market continues to exert pressure on the net interest margin. Repricing strategies on loans and deposits have had a positive impact on the net interest margin.
Current wording
The net interest margin for the second quarter of 2026 increased 47 basis points to 3.16% from 2.69% for the same period in 2025. Competition for quality loans and deposits in our local market continues to exert pressure on the net interest margin. Repricing strategies on loans and deposits have had a positive impact on the net interest margin.
Previous wording
The Rate-Volume Analysis tables, as presented on a tax-equivalent basis, highlight the impact of changing rates and volumes on interest income and interest expense. Total interest income on a tax-equivalent basis increased $285,000, or 1.3%, to $22,623,000 for the first quarter of 2026; whereas total interest expense decreased $1,294,000, or 12.1%, to $9,367,000.
Current wording
The Rate-Volume Analysis tables, as presented on a tax-equivalent basis, highlight the impact of changing rates and volumes on interest income and interest expense. Total interest income on a tax-equivalent basis increased $7,504,000, or 32.3%, to $30,714,000 for the second quarter of 2026; and total interest expense increased $1,822,000, or 17.4%, to $12,280,000.
Previous wording
The yield on earning assets on a tax-equivalent basis remained flat at 4.81% for the first quarter of 2026 compared to the first quarter of 2025. The cost of interest-bearing liabilities declined 34 basis points to 2.42% for the first quarter of 2026, compared with 2.76% for the same period in 2025.
Current wording
The yield on earning assets on a tax-equivalent basis increased 36 basis points to 5.26% from 4.90% for the same period in 2025. The cost of interest-bearing liabilities declined 14 basis points to 2.54% for the second quarter of 2026, compared with 2.68% for the same period in 2025.
Previous wording
Interest income on investment securities decreased $867,000 when comparing the first quarters of 2026 and 2025. The average yield on the investment portfolio was 2.41% for the first quarter of 2026 compared with 2.85% for the same period in 2025, a decrease of 44 basis points.
Current wording
Interest income on investment securities decreased $835,000 when comparing the second quarters of 2026 and 2025. The average yield on the investment portfolio was 2.44% for the second quarter of 2026 compared with 2.84% for the same period in 2025, a decrease of 40 basis points. Average securities for the three and six months ended June 30, 2026 include the three-month impact of acquiring $15,605,000 in securities from the acquisition and the cancellation of $3,000,000 subordinated note owned by QNB and issued by Victory.
Previous wording
The yield on U.S. Treasury securities was 3.71% for the first quarter of 2026 compared to 4.38% for the same period in 2025; the decline in rate was partly offset by the average balances increase of $672,000 for a net decrease in interest income of $67,000. The average balances of U.S. Government agency securities increased $9,000 as the average rate remained unchanged at 1.18%.
Current wording
The yield on U.S. Treasury securities was 3.68% for the second quarter of 2026 compared to 4.24% for the same period in 2025. The 56 basis-point decline in rate and the average balances decrease of $220,000 caused the decrease in interest income of $32,000. The average balances of U.S. Government agency securities increased $9,000 as the average rate remained unchanged at 1.18%.
Previous wording
Interest income on municipal securities, which are primarily tax-exempt, decreased $151,000 due to a 55 basis-point decrease in rate, and a $732,000 decrease in average balances. Typically, QNB purchases municipal bonds with 10- to 20-year maturities and may have call dates between 2-10 years.
Current wording
Interest income on municipal securities, which are primarily tax-exempt, decreased $139,000 due to a 53 basis-point decrease in rate, and a $163,000 decrease in average balances. Typically, QNB purchases municipal bonds with 10- to 20-year maturities and may have call dates between 2-10 years.
Previous wording
Interest income on mortgage-backed securities and CMOs decreased $660,000 and average balances decreased $38,746,000 and the yield decreased 52 basis points. This portfolio generally provides higher yields relative to agency bonds and also provides monthly cash flow which can be used for liquidity purposes or can be reinvested as interest rates increase. Since most of these securities were purchased at a premium, any prepayments result in a shorter amortization period of this premium and therefore a reduction in income.
Current wording
Interest income on mortgage-backed securities and CMOs decreased $633,000 and average balances decreased $36,094,000 and the yield decreased 51 basis points. This portfolio generally provides higher yields relative to agency bonds and also provides monthly cash flow which can be used for liquidity purposes or can be reinvested as interest rates increase. Since most of these securities were purchased at a premium, any prepayments result in a shorter amortization period of this premium and therefore a reduction in income.
Previous wording
Interest income on corporate debt and mutual funds decreased $30,000 as average balances increased $9,134,000 and the average yield decreased 106 basis points.
Current wording
Interest income on corporate debt and mutual funds decreased $31,000 as average balances increased $3,104,000 and the average yield decreased 48 basis points.
Previous wording
Income on loans increased $1,320,000 to $18,675,000 when comparing the first quarters of 2026 and 2025, with a $62,834,000 increase in average balances contributing to an increase in interest income of $835,000 and a 14-basis point increase in yield contributing to a $485,000 increase in interest income. Higher interest rates during the repricing period were partially offset by competitive pressures that compressed the yields on new loans.
Current wording
Average loans the three and six months ended June 30, 2026 include the three-month impact of acquiring $408,379,000 in loans from the acquisition of Victory. Income on loans increased $8,579,000 to $26,691,000 when comparing the second quarters of 2026 and 2025, with a $493,981,000 increase in average balances contributing to an increase in interest income of $7,449,000 and a 29-basis point increase in yield contributing to a $1,130,000 increase in interest income.
Previous wording
The largest category of the loan portfolio is commercial real estate loans. This category of loans includes commercial purpose loans secured by either commercial properties such as office buildings, factories, warehouses, hotels and restaurants, medical facilities and retail establishments, or residential real estate, usually the residence of the business owner. The category also includes construction and land development loans. Income on commercial real estate loans increased $1,375,000 when comparing the first quarters of 2026 and 2025, primarily due to a 28-basis point increase in rate from 5.71% in 2025 to 5.99% and increased average balances of $53,323,000, or 6.2%.
Current wording
The largest category of the loan portfolio is commercial real estate loans. This category of loans includes commercial purpose loans secured by either commercial properties, such as office buildings, factories, warehouses, hotels and restaurants, medical facilities and retail establishments, or residential real estate, usually the residence of the business owner. The category also includes construction and land development loans. Income on commercial real estate loans increased $7,322,000 when comparing the second quarters of 2026 and
Previous wording
Income on commercial and industrial loans decreased $269,000 when comparing the first quarters of 2026 and 2025. The average yield on these loans decreased 38 basis points to 7.03% resulting in a decrease in income of $133,000; average balances decreased $7,476,000, to $141,204,000 for the first quarter of 2026 resulting in a $136,000 decrease in interest income. Many of the loans in this category are indexed to the prime interest rate.
Current wording
Income on commercial and industrial loans increased $531,000 when comparing the second quarters of 2026 and 2025. The average yield on these loans decreased 29 basis points to 7.12% resulting in a decrease in income of $132,000; this was offset by an average balances increased $35,906,000, to $181,167,000 for the second quarter of 2026 resulting in a $663,000 increase in interest income. Many of the loans in this category are indexed to the prime interest rate.
Previous wording
Tax-exempt loan income increased $43,000 for the first quarter of 2026 compared to the same period in 2025. Average balances increased $842,000 to $19,637,000 for the first quarter of 2026. The yield on municipal loans increased 70 basis points, to 4.85% for the first quarter of 2026, compared with the same period in 2025.
Current wording
Tax-exempt loan income increased $76,000 for the second quarter of 2026 compared to the same period in 2025. Average balances increased $1,895,000 to $21,242,000 for the second quarter of 2026. The yield on municipal loans increased 108 basis points, to 5.31% for the second quarter of 2026, compared with the same period in 2025.
Previous wording
QNB desires to be the “local consumer lender of choice”, focusing its retail lending efforts on product offerings and marketing and promotion. Interest income on residential mortgage loans secured by first lien 1-4 family increased $154,000 when comparing the first quarter of 2026 to the same period in 2025. Average residential mortgage loan balances increased by $8,098,000, or 7.1%, to $122,369,000 for the first quarter of 2026 compared to the same period in 2025, which contributed a $87,000 increase in interest income. The average yield on the portfolio increased 22 basis points and contributed an increase of $67,000 to interest income. QNB chose to retain certain mortgage loans instead of selling them in the secondary market, as the yield on our originated mortgages was higher than comparable mortgage-backed securities. Average home equity loans increased during the 2026 period by $8,561,000 to $76,534,000 and the average yield decreased 58 basis points to 5.83% resulting in a net $25,000 net increase in interest income. The yield on the consumer portfolio increased 23 basis points to 7.91% for the first quarter of 2026 and there was a $514,000 decrease in average balances resulting in a net $8,000 decrease in interest income.
Current wording
QNB desires to be the “local consumer lender of choice”, focusing its retail lending efforts on product offerings and marketing and promotion. Interest income on residential mortgage loans secured by first lien 1-4 family increased $169,000 when comparing the second quarter of 2026 to the same period in 2025. Average residential mortgage loan balances increased by $8,350,000, or 7.3%, to $122,950,000 for the second quarter of 2026 compared to the same period in 2025, which contributed a $92,000 increase in interest income. The average yield on the portfolio increased 25 basis points and contributed an increase of $77,000 to interest income. QNB chose to retain certain mortgage loans instead of selling them in the secondary market, as the yield on our originated mortgages was higher than comparable mortgage-backed securities. Average home equity loans increased during the 2026 period by $32,331,000 to $102,997,000, contributing to a $516,000 increase in interest income; this was partly offset by an average yield decrease of 28 basis points causing a $71,000 decrease in interest income. The yield on the consumer portfolio decreased 11 basis points to 7.59% for the second quarter of 2026 and there was a $1,973,000 increase in average balances resulting in a net $36,000 increase in interest income.
Previous wording
Earning assets are funded by deposits and borrowed funds. Interest expense decreased $1,294,000, when comparing the first quarter of 2026 to the same period in 2025. Interest expense on interest-bearing deposits decreased $1,244,000 to $7,668,000 when comparing the first quarters of 2026 and 2025, with a net $2,045,000 increase in average balances contributing to a net decrease in interest expense of $131,000 and a 35-basis point decrease in yield contributing to a $1,113,000 decrease in interest expense. Average interest-bearing demand accounts increased $18,955,000, or 5.0%, to $399,248,000 for the first quarter of 2026 and the average rate paid on these deposits decreased six basis points; interest expense on interest-bearing demand accounts decreased $13,000 to $931,000 for the same period. Average non-interest-bearing demand accounts increased $3,599,000 to $189,591,000 for the first quarter of 2026. Average money market accounts decreased $1,045,000 to $255,220,000 for the first quarter of 2026 compared with the same period in 2025. Interest expense on money market accounts decreased $215,000 to $1,603,000, and the average interest rate paid on money market accounts decreased 33 basis points to 2.55% for the first quarter of 2026. Most of the balances in this category are in products that pay tiered rates based on account balances.
Current wording
Average interest-bearing demand accounts increased $107,063,000 to $483,798,000 for the second quarter of 2026 and the average rate paid on these deposits increased 25 basis points; interest expense on interest-bearing demand accounts increased $550,000 to $1,438,000 for the same period. Average non-interest-bearing demand accounts increased $61,860,000 to $259,935,000 for the second quarter of 2026. Average money market accounts increased $127,331,000 to $386,952,000 for the second quarter of 2026 compared with the same period in 2025. Interest expense on money market accounts increased $829,000 to $2,691,000, and the average interest rate paid on money market accounts decreased nine basis points to 2.79% for the second quarter of 2026. Most of the balances in this category are in products that pay tiered rates based on account balances.
Previous wording
Interest expense on municipal interest-bearing demand accounts decreased $393,000 to $1,603,000 for the first quarter of 2026. The average interest rate paid on municipal interest-bearing demand accounts decreased 76 basis points to 3.19% for the first quarter of 2026 over the same quarter of 2025, and average balances decreased $14,437,000 to $135,142,000. Many of these accounts are indexed to the Federal funds rate with rate floors. Municipal deposits are seasonal in nature and are received during the second and third quarters as tax receipts are collected and are withdrawn over the course of the year.
Current wording
Interest expense on municipal interest-bearing demand accounts decreased $205,000 to $1,222,000 for the second quarter of 2026. The average interest rate paid on municipal interest-bearing demand accounts decreased 66 basis points to 3.26% for the second quarter of 2026 over the same quarter of 2025, and average balances increased $3,986,000 to $150,200,000. Many of these accounts are indexed to the Federal funds rate with rate floors. Municipal deposits are seasonal in nature and are received during the second and third quarters as tax receipts are collected and are withdrawn over the course of the year.
Previous wording
Interest expense on savings accounts increased $10,000 when comparing the first quarter of 2026 to the same quarter of 2025. The average interest rate paid on savings accounts remained about the same at 1.29% for the first quarter of 2026 compared to 1.30% for the same period in 2025. Average savings balances increased $4,599,000 to $284,256,000, or 1.6%, for the first quarter of 2026. QNB’s online e-Savings product is the largest category of savings deposits, with average balances for the first quarter of 2026 of $211,299,000 compared to $206,579,000 in the same period of 2025. The average yield paid on these accounts was 1.70% for the first quarter of 2026 compared to 1.71% for the same period in 2025. Traditional statement savings accounts, passbook savings and club accounts are also included in the savings category and average balances in these types of savings accounts decreased $121,000 when comparing the first quarter of 2026 to the same period in 2025.
Current wording
Interest expense on savings accounts increased $460,000 when comparing the second quarter of 2026 to the same quarter of 2025. The average interest rate paid on savings accounts increased 26 basis points to 1.55% for the second quarter of 2026 compared to 1.29% for the same period in 2025. Average savings balances increased $71,011,000 to $352,087,000 for the second quarter of 2026. QNB’s online e-Savings product is the largest category of savings deposits, with average balances for the second quarter of 2026 of $216,625,000 compared to $208,239,000 in the same period of 2025. The average yield paid on these accounts was 1.70% for the both second quarters of 2026 and 2025. Other savings account average balances, increased $62,625,000 when comparing the second quarter of 2026 compared to the same period in 2025 and interest expense increased $423,000.
Previous wording
Interest expense on time deposits totaled $3,168,000 for the first quarter of 2026 compared to $3,801,000 in 2025. Average total time deposits decreased $6,027,000 to $375,383,000 for the first quarter of 2026. As with fixed-rate loans and investment securities, these deposits reprice over time and, therefore, have less of an immediate impact on costs in either a rising or falling rate environment; however, the maturity and repricing characteristics of time deposits tend to be shorter.
Current wording
Interest expense on time deposits totaled $3,692,000 for the second quarter of 2026 compared to $3,686,000 in 2025. Average total time deposits increased $55,525,000 to $441,794,000 for the second quarter of 2026. As with fixed-rate loans and investment securities, these deposits reprice over time and, therefore, have less of an immediate impact on costs in either a rising or falling rate environment; however, the maturity and repricing characteristics of time deposits tend to be shorter.
Previous wording
Approximately $350,187,000, or 96%, of time deposits at March 31, 2026 will mature over the next 12 months. The average rate paid on these time deposits is approximately 3.34%. The yield on the time deposit portfolio may change in the next quarter as short-term time deposits reprice; however, given the short-term nature of these deposits, interest expense may increase if short-term time deposit rates were to increase suddenly or if customers select higher paying time deposits.
Current wording
Approximately $416,806,000, or 96%, of time deposits at June 30, 2026 will mature over the next 12 months. The average rate paid on these time deposits is approximately 3.34%. The yield on the time deposit portfolio may change in the next quarter as short-term time deposits reprice; however, given the short-term nature of these deposits, interest expense may increase if short-term time deposit rates were to increase suddenly or if customers select higher paying time deposits.
Previous wording
Short-term borrowings are comprised of sweep accounts structured as repurchase agreements with our commercial customers and short-term FHLB borrowing. Interest expense on short-term borrowings increased $306,000 for the first quarter of 2026 to $762,000 when compared to the same period in 2025. When comparing these same periods, average balances increased $36,044,000 to $83,573,000 and average rate decreased 19 basis points to 3.70%.
Current wording
Short-term borrowings are comprised of sweep accounts structured as repurchase agreements with our commercial customers and short-term FHLB borrowing. Interest expense on short-term borrowings decreased $93,000 for the second quarter of 2026 to $596,000 when compared to the same period in 2025. When comparing these same periods, average balances decreased $1,936,000 to $69,006,000 and average rate decreased 46 basis points to 3.45%.
Previous wording
Average long-term borrowings decreased $30,111,000 as short-term borrowing were used to payoff maturing long-term borrowings during the past year.
Current wording
Average long-term borrowings decreased $5,495,000 as short-term borrowing were used to payoff maturing long-term borrowings during the past year.
Previous wording
During the third quarter of 2024, the QNB Corp. issued $40,000,000 of subordinated debt; the average carrying value net of deferred costs was $39,291,000 for the first quarter of 2026 compared to $39,092,000 for same period in 2025. The average yield decreased five basis points from 9.59% to 9.54% due to the amortization of the deferred costs. The subordinated debt will initially bear interest at
Current wording
QNB Corp. issued $40,000,000 of subordinated debt in 2024 and acquired $17,650,000 of subordinated debt from Victory in the Victory Merger; $3,000,0000 of subordinated debt issued by Victory was owned by QNB and cancelled as of the merger date. The average carrying value net of deferred costs was $53,991,000 for the second quarter of 2026 compared to $39,141,000 for same period in 2025. The average yield decreased ten basis points from 9.58% to 9.48%.
Previous wording
Based on this analysis, QNB recorded $303,000 in the provision for credit losses on loans for the three months ended March 31, 2026, through the allowance for credit losses on loans, compared to $551,000 through the provision for credit losses for the same period in 2025. QNB recorded a reversal in provision of $3,000 for the allowance for credit losses for unused commitments in the three months ended March 31, 2026 compared to a reversal in provision of $1,000 for the same period in 2025.
Current wording
Based on this analysis, QNB recorded a $521,000 provision for credit losses on loans for the six months ended June 30, 2026, through the allowance for credit losses on loans, compared to a $406,000 provision for credit losses for the same period in 2025. QNB recorded a provision of $1,000 for the allowance for credit losses for unused commitments in the six months ended June 30, 2026 compared to a reversal in provision of $2,000 for the same period in 2025.
Previous wording
QNB's allowance for credit losses on loans of $9,531,000 represents 0.74% of loans receivable at March 31, 2026 compared with an allowance for credit losses on loans of $9,215,000, or 0.73% of loans receivable, at December 31, 2025, and $9,298,000, or 0.77%, at March 31, 2025. Management believes the allowance for credit losses on loans at March 31, 2026 is adequate as of that date based on its analysis of historical loss experience, current conditions and reasonable and supportable forecasts in the portfolio.
Current wording
QNB's allowance for credit losses on loans of $12,770,000 represents 0.74% of loans receivable at June 30, 2026 compared with an allowance for credit losses on loans of $9,215,000, or 0.73% of loans receivable, at December 31, 2025, and $9,169,000, or 0.75%, at June 30, 2025. Management believes the allowance for credit losses on loans at June 30, 2026 is adequate as of that date based on its analysis of historical loss experience, current conditions and reasonable and supportable forecasts in the portfolio.
Previous wording
Net recoveries were $13,000 for the three months ended March 31, 2026 compared to net recoveries of $3,000 for the three months ended March 31, 2025. Charge-offs consisted of overdrafts of $16,000 and a real estate loan secured by junior lien on 1-4 family property of $4,000. Recoveries of approximately $33,000 during the three months ended March 31, 2026 consisted of $27,000 in repayments from borrowers of previously charged-off credits and overdrafts recoveries of $7,000. Annualized net recoveries as a percentage of average loans receivable were 0.00% for the three months ended March 31, 2026, compared to annualized net recoveries of 0.00% for the three months ended March 31, 2025.
Current wording
Net recoveries were $14,000 for the six months ended June 30, 2026 compared to net recoveries of $19,000 for the six months ended June 30, 2025. Charge-offs of $44,000 during the six months ended June 30, 2026 consisted of overdrafts of $26,000, a real estate loan secured by junior lien on 1-4 family property of $4,000 and other consumer and student loans of $14,000. Recoveries of approximately $58,000 during the six months ended June 30, 2026 consisted of $45,000 in repayments from borrowers of previously charged-off credits and overdrafts recoveries of $13,000.
Previous wording
Non-performing assets were $9,614,000 at March 31, 2026 compared to $8,793,000 as of December 31, 2025 and $8,651,000 at March 31, 2025. Total non-performing loans, which represent loans on non-accrual status, loans past due 90 days or more and still accruing interest, were 0.75% of loans receivable at March 31, 2026, 0.70% at December 31, 2025 and 0.71% of loans receivable at March 31, 2025. The increase in non-accrual loans was primarily due to one consumer relationship placed on nonaccrual status during 2026. In cases where there is a collateral shortfall on non-accrual loans, specific impairment reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. Commercial loans classified as substandard or doubtful totaled $38,845,000, a decrease of $374,000 from the $39,219,000 reported at December 31, 2025 and an increase of $4,397,000 from the $34,448,000 reported at March 31, 2025.
Current wording
Non-performing assets were $10,418,000 at June 30, 2026 compared to $8,793,000 as of December 31, 2025 and $8,947,000 at June 30, 2025. Total non-performing loans, which represent loans on non-accrual status and loans past due 90 days or more and still accruing interest, were 0.61% of loans receivable at June 30, 2026, 0.70% at December 31, 2025 and 0.73% of loans receivable at June 30, 2025. The increase was primarily due to two commercial and one retail customer. At June 30, 2026, $7,832,000, or approximately 75% of the loans classified as non-accrual, are current or past due less than 30 days. In cases where there is a collateral shortfall on non-accrual loans, specific impairment reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. Commercial loans classified as substandard or doubtful loans totaled $49,156,000 at June 30, 2026, compared with $39,219,000 at December 31, 2025, an increase of $9,937,000 which includes $6,475,000 of commercial real estate loans and $3,808,000 of commercial and industrial loans acquired.
Previous wording
QNB had no loans past due 90 days or more and still accruing interest at March 31, 2026, December 31, 2025, or March 31, 2025. Total loans 30 days or more past due, which includes non-accrual loans by actual number of days delinquent, represented 0.22% of loans receivable at March 31, 2026 compared with 0.14% at December 31, 2025, and 0.69% at March 31, 2025.
Current wording
QNB had no loans past due 90 days or more and still accruing interest at June 30, 2026, December 31, 2025, or June 30, 2025. Total loans 30 days or more past due, which includes non-accrual loans by actual number of days delinquent, represented 0.46% of loans receivable at June 30, 2026 compared with 0.14% at December 31, 2025, and 0.98% at June 30, 2025.
Previous wording
There was one loan modification to a borrower experiencing financial difficulty identified during the three months ended March 31, 2026. The loan continues to be reported as accruing. The loan was modified to interest only payments for three months and one month deferred payment. QNB had no other real estate owned or repossessed assets at March 31, 2026, December 31, 2025 or March 31, 2025.
Current wording
There was one loan modification to a borrower experiencing financial difficulty identified during the six months ended June 30, 2026. The loan continues to be reported as accruing. The loan was modified to interest only payments for three months and one month deferred payment. QNB had no other real estate owned or repossessed assets at June 30, 2026, December 31, 2025 or June 30, 2025.
Showing the first 40 of 64 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
QNB reported net income for the six months ended June 2026 of $5,780,000, or $1.32 per share on a diluted basis, compared to net income of $6,461,000, or $1.74 per share on a diluted basis, for the same period in 2025. For the six-month period of 2026, net income included after-tax merger-related cost of $3,249,000. Adjusted diluted earnings per share excluding the impact of the merger-related cost for the six-month period of 2026 was $2.06.
Current report — wording carried from elsewhere
Net Interest Income and Net Interest Margin – Six-Month Comparison
Current report — wording carried from elsewhere
Net occupancy and furniture and equipment expenses combined increased $664,000 when comparing the six months ended June 30, 2026 to the same period in 2025. This is due primarily to increased software maintenance expense. Marketing expense increased $161,000 due public relations and advertising expense when comparing the six-month periods.
Current report — wording carried from elsewhere
Third party services expense increased $557,000 due to consulting costs. State taxes increased $143,000 due to the timing of tax credits received for qualified charitable contributions. FDIC insurance premiums decreased $49,000 due to a decrease in the assessment rate.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Medical and dental premiums, net of employee contributions, increased $113,000 when comparing the two quarters due to the timing of medical claims.