Qnb Corp. · NASDAQ:QNBC
Qnb — Investor Presentation (March 2025)
27 slides from Qnb's investor presentation, Mar 20, 2025
Slide 1: Investor Presentation
Holding Company for: Investor Presentation OTCPK: QNBC March 6, 2025
Slide 2: QNB Bank Vision and Mission
QNB Bank Vision and Mission (1) Vision We will help customers achieve their goals by providing a total financial relationship built upon exceptional personal service and a sincere interest in their success. Mission The mission of QNB is to operate in an environment in which: • Our customers always c
Slide 3: QNB's History in the Community
QNB’s History in the Community • Stability and longevity through attentive, capable and enduring leadership • Only seven Bank presidents since 1877 • QNB Corp. founded in 1984 • High impact in markets served due to history, mission, and reputation • Tangible, economic competitive advantages, with a
Slide 4: Bank Management Team Overview
Bank Management Team Overview Seasoned Management Team with Decades of Operating Experience • Senior management team comprised of individuals with over 200 years of combined banking and financial services experience (1) • In its 145+ year history, stability and consistency have been hallmarks of QNB
Slide 5: Core Market Overview
Core Market Overview QNB Bank services a highly-educated and high-earning market with the need for a strong Community Bank that will continue to grow alongside it. • 9 of 12 Bank branches located in counties with a median income approximately 40% higher than the national median income of $76 thousan
Slide 6: QNB Bank & Corp. Overview
QNB Bank & Corp. Overview • QNB Bank founded in 1877 as Quakertown National Bank • 12 bank branches – 7 in Bucks County, 3 in Lehigh County, and 2 in Montgomery County, with market area extending Market Area into Berks and Northampton counties • QNB Corp. (the holding company for QNB Bank) is public
Slide 7: 2024 Year-End Highlights and Commentary
2024 Year-End Highlights and Commentary Highlights Commentary 2023Y 2024Y • In 2024, QNB Corp. rebounded from the effects of Balance Sheet ($ in Thousands) the historic rise in interest rates. Total Assets $1,706,318 $1,870,894 Total Gross Loans $1,094,082 $1,216,712 • The near $2 million increase i
Slide 8: Income Statement
Income Statement Earnings trajectory back on track - net interest income recovering from rapid rise in interest rates Net Income ($mm) Net Interest Income after Provision ($mm) $20.0 $0.9 $0.1 $50.0 $0.8 $16.5 $15.9 $40.0 $15.0 $12.4 $12.1 $11.4 $30.0 $42.1 $44.5 $40.2 $42.9 $9.5 $20.0 $36.3 $37.2 $
Slide 9: Organic Balance Sheet Growth
Organic Balance Sheet Growth QNBC boasts attractive, steady growth on both sides of the balance sheet. Total Assets ($mm) Total Gross Loans (1) ($mm) $1,217 $1,871 $1,094 $2,000 $1,200 $1,039 $1,673 $1,668 $1,706 $927 $926 $1,440 $1,500 $900 $1,000 $600 $500 $300 $0 $0 2020Y 2021Y 2022Y 2023Y 2024Y
Slide 10: Historical Regulatory Capital Ratios
Historical Regulatory Capital Ratios QNBC has maintained strong Regulatory Capital, well in excess of regulatorily well-capitalized (1). Tier 1 Leverage Ratio Common Equity Tier 1 Ratio Tier 1 Leverage Ratio Common Equity Tier 1 Ratio 10.00% 14.00% 12.00% 9.07% 8.92% 12.86% 12.59% 12.33% 12.39% 7.50
Slide 11: QNBC Loan Growth
QNBC Loan Growth QNBC has displayed consistent year over year loan growth, without compromising (and actually improving upon) Asset Quality. Annual Loan Growth Since 2015 $1,300.0 2.5 $1,216.7 $1,200.0 2.0 1.89 $1,094.1 2 $1,100.0 1.74 $1,039.4 $1,000.0 1.53 $926.6 $926.5 1.5 $900.0 1.26 1.26 1.23 $
Slide 12: Loan Portfolio Diversification & Growth
Loan Portfolio Diversification & Growth Total Gross Loans (1) ($mm) $1,400 $1,217 $1,094 $1,200 $1,039 $927 $926 12/31/24 Bank Loan Composition $1,000 $800 $600 Other 1.7% $400 $200 Construction & Land $0 Development Multifamily Commercial & 2020Y 2021Y 2022Y 2023Y 2024Y 10.6% 11.3% Industrial 12.6%
Slide 13: Asset Quality & Reserve Coverage Ratios
Asset Quality & Reserve Coverage Ratios Pristine asset quality as NPAs and charge-offs remain at low levels Commentary NPAs (3) / Assets (%) • QNB, with NPAs (3) / Assets of 0.11% as of December 31, 2024, 0.60% has meaningfully lower NPAs (3) / Assets than its State (1) and 0.55% 0.50% 0.47% Peers (
Slide 14: Deposit Composition
Deposit Composition Well-diversified Deposit portfolio, with no single depositor accounting for more than 3.5% of Deposits. QNBC Deposit Composition Jumbo Time (>250k) $46,681 Non-Interest-Bearing Deposits / Total Deposits (%) 2.9% NIB (1) 20.00% $183,499 16.70% 16.80% 16.30% Retail Time 11.3% (<250
Slide 15: Valuable Core Deposit Franchise Translates to Better Cost of Funding vs. Peers
Valuable Core Deposit Franchise Translates to Better Cost of Funding vs. Peers Core Deposits / Total Deposits (1, 2) (%) Commentary 100.0% 98.3% • The Bank has over 100 years of brand value in the 97.6% 97.6% 97.1% 98.0% 96.8% market 96.0% 95.2% 94.0% 94.8% • As of December 31, 2024, 97.1% of QNB Co
Slide 16: Valuable Core Deposit Franchise = Significant Funding Advantage Historically
Valuable Core Deposit Franchise = Significant Funding Advantage Historically • During the previous rate hike cycle, from Q1’16 to Q2’19, QNB Corp’s Cost of Deposits increased from 0.51% to 1.10%, while the Fed Funds Target Rate increased from 0.50% to 2.50%. • Similarly, QNB Corp. has been able to k
Slide 17: Rates on Earning Assets and Interest-Bearing Deposits
Rates on Earning Assets and Interest-Bearing Deposits Spread between assets and deposits has been increasing for the last two consecutive quarters. 2.40% 2.50% 6.00% 2.05% 2.09% 1.99% 2.02% 1.96% 1.95% 1.96% 2.00% 5.00% 4.86% 4.78% 4.70% 4.57% 4.44% 4.00% 4.28% 1.50% 3.77% 3.83% 3.00% 1.00% 2.00% 2.
Slide 18: Net Interest Margin vs. Net Noninterest Expense / Avg. Assets
Net Interest Margin vs. Net Noninterest Expense / Avg. Assets QNBC has remained disciplined on expenses amidst an inflationary macro environment. 3.00% 2.73% 2.72% 2.68% 2.55% 2.46% 2.48% 2.50% 2.38% 2.39% 2.38% 2.36% 2.27% 2.00% 1.89% 1.65% 1.67% 1.68% 1.68% 1.55% 1.50% 1.61% 1.55% 1.58% 1.43% 1.17
Slide 19: Stock Price Performance
Stock Price Performance Improvement in financial results has led to a sustained increase in QNBC’s stock price. QNBC Closing Stock Price $40.00 P/TBV (1) 0.94% P/TBV (1) 1.22% $35.50 $35.00 $36.00 $36.94 $33.92 P/TBV (1) $30.00 P/TBV (1) 1.05% $29.49 1.34% $25.99 $27.50 $26.99 $25.00 $26.33 $25.05 $
Slide 20: Notices
Notices Forward Looking Statement This Investor Presentation may contain forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate
Slide 21: Appendix
#ONB #ONBBank 21
Slide 22: Management Team Overview
Management Team Overview David W. Freeman Years in Banking: 50 President, Chief Executive Officer, and Director At QNB: 15 Mr. Freeman has been the Chief Executive Officer of QNB and the Bank from January 2013 to present. Mr. Freeman served as the President of QNB and the Bank from September 2010 to
Slide 23: Management Team Overview
Management Team Overview Courtney L. Covelens Years in Banking: 24 Executive VP, Chief Retail & Business Banking Officer At QNB: 24 Ms. Covelens has served as Executive Vice President and Chief Retail Officer and Chief Business Banking Officer of the Bank; she has served in those roles since January
Slide 24: Historical Consolidated Balance Sheet (1 of 2)
Historical Consolidated Balance Sheet (1 of 2) (dol la rs s hown i n thous a nds ) As of December 31, 2019 2020 2021 2,022 2023 2024 Assets Ca s h a nd due from ba nks $12,398 $13,422 $9,194 $14,657 $11,447 $11,369 Interes t-bea ring depos its in ba nks $5,210 $25,909 $4,196 $1,242 $51,210 $39,344 T
Slide 25: Historical Consolidated Balance Sheet (2 of 2)
Historical Consolidated Balance Sheet (2 of 2) (dol la rs s hown i n thous a nds ) As of December 31, 2019 2020 2021 2,022 2023 2024 Liabilities Depos i ts Dema nd, non-i nteres t bea ri ng $146,270 $204,584 $243,006 $231,849 $185,098 $183,499 Interes t- bea ri ng dema nd $332,918 $395,364 $468,199
Slide 26: Historical Consolidated Income Statement (1 of 2)
Historical Consolidated Income Statement (1 of 2) (dollars shown in thousands) Year-ended December 31, 2019 2020 2021 2022 2023 2024 INTEREST INCOME AND EXPENSE Interest Income Interes t a nd fees on l oa ns $38,187 $36,504 $38,330 $40,922 $53,884 $65,367 Interes t a nd di vi dends on a va i l a bl
Slide 27: Historical Consolidated Income Statement (2 of 2)
Historical Consolidated Income Statement (2 of 2) (dollars shown in thousands) Year-ended December 31, 2019 2020 2021 2022 2023 2024 NON-INTEREST INCOME AND EXPENSE Non-Interest Income Net (l os s ) ga i n on s a l es a nd ca l l s of a va i l a bl e-for-s a l e a nd equi ty s ecuri ti es $770 -$47