Qnb Corp. · NASDAQ:QNBC
Qnb — Investor Presentation (June 2025)
32 slides from Qnb's investor presentation, Jun 5, 2025
Slide 1: QNB Corp. Investor Presentation, June 3, 2025
Holding Company for: OTCQX: QNBC June 3, 2025
Slide 2: Forward-looking statements and non-GAAP disclaimer
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,” “project” and variations of suc
Slide 3: Stability and longevity of QNB
• 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 high cost of replication – as m
Slide 4: Mission and strategic pillars
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. The mission of QNB is to operate in an environment in which: • Our Customers always come first and perceive the Bank as a trusted re
Slide 5: How we track our progress
How we track our progress Technology, Products & Exceptional Customer Pillar Grow The Bank Responsibly Culture Risk & Regulatory Service Experience Employee Satisfaction Customer Satisfaction External Exam & Internal Household Growth Product Gaps Eliminated Ratings Ratings - % Overall Audit - Rating
Slide 6: Seasoned Management Team with Decades of Operating Experience
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 Bank leadership, helping to n
Slide 7: Highly-educated and high-earning market area
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 $79 thousand, with a projected gr
Slide 8: QNB Bank overview and market area
• 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 into Berks and Northampton counties Market Area Note: Consolidated financial data shown per SEC filings, unless otherwise noted (1
Slide 9: QNB Corp. publicly traded on OTCQX, financial snapshot
• QNB Corp. (the holding company for QNB Bank) is publicly traded on the OTCQX exchange (ticker: QNBC) • As of 3/31/2025, QNB Corp. has a market capitalization of ~$131 million and total assets of ~$1.9 billion ($ in millions) 2020Y 2021Y 2022Y 2023Y 2024Y 2024Q1 2025Q1 Total Assets $1,440 $1,673 $1
Slide 10: Highlights and Commentary
Highlights Commentary 2024Q1 2025Q1 Balance Sheet ($ in Thousands) • QNB Corp. continues to rebound from the effects of Total Assets $1,716,081 $1,896,189 the historic rise in interest rates Total Gross Loans $1,122,616 $1,212,410 • Strong organic growth in Assets (+10.5%) led by Loans Total Deposit
Slide 11: Net interest income at record level, modest increase in provision
Net interest income at record level, modest increase in provision Net Income ($mm) Net Interest Income after Provision ($mm) $0.3 $4.0 $0.1 $3.3 $12.0 $3.1 $10.0 $2.6 $2.5 $2.6 $8.0 $6.0 $10.2 $10.6 $11.1 $11.0 $11.5 $2.0 $4.0 $2.0 $0.0 ($0.1) ($0.2) ($0.6) ($2.0) 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1
Slide 12: Steady growth on both sides of the balance sheet
QNBC boasts attractive, steady growth on both sides of the balance sheet Total Assets ($mm) Total Gross Loans (1) ($mm) $1,217 $1,212 $1,871 $1,896 $2,000 $1,200 $1,094 $1,673 $1,668 $1,706 $1,039 $927 $926 $1,440 $1,500 $900 $1,000 $600 $500 $300 $0 $0 2020Y 2021Y 2022Y 2023Y 2024Y 2025Q1 2020Y 202
Slide 13: Strong Regulatory Capital in excess of well-capitalized
QNBC has maintained strong Regulatory Capital, well in excess of regulatorily well-capitalized (1) Tier 1 Leverage Ratio Common Equity Tier 1 Ratio 10.00% 14.00% 12.00% 9.07% 8.92% 12.86% 12.59% 8.75% 8.70% 8.67% 12.33% 12.39% 12.02% 12.16% 7.50% 8.39% 10.00% 8.00% 5.00% Well-Capitalized Tier 1 Leve
Slide 14: Consistent loan growth with improving asset quality
QNBC has displayed consistent loan growth, without compromising (and actually improving upon) Asset Quality Annual Loan Growth Since 2015 $1,300.0 2.5 $1,216.7 $1,212.4 $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 $821.6 $800.0 $786.2 $734
Slide 15: Pristine asset quality as NPAs and charge-offs remain low
Pristine asset quality as NPAs and charge-offs remain at low levels Commentary NPAs (3) / Assets (%) • QNB, with NPAs (3) / Assets of 0.46% as of March 31, 2025, is in 0.60% line with its State (1) and Peers (2) 0.55% 0.51% 0.50% 0.47% • The Bank has seen minimal NCOs (4), with NCOs (4) / Avg. Loans
Slide 16: Commercial Loan portfolio growth with underwriting standards
QNB has shown growth in the Commercial Loan portfolio without compromising underwriting standards ($ in Thousands) Loan-to-Value Reconciling COMMERCIAL LOAN BREAKDOWN BY LTV 0-50% 50-60% 60-65% 65-70% 70-75% >75% Adjustments(1) Total Commercial and Industrial Loans $38,669 $3,810 $2,325 $1,543 $4,15
Slide 17: Well-diversified Loan portfolio
QNB continues to maintain a well-diversified Loan portfolio QNB Bank Loan Composition Since 2021 2021Y 2022Y 2023Y 2024Y 2025Q1 Loan Composition Balance % of Total Balance % of Total Balance % of Total Balance % of Total Balance % of Total C&I 144,158 15.6% 156,703 15.1% 133,051 12.2% 149,185 12.3%
Slide 18: Securities portfolio and liquidity
Asset Class Breakdown Commentary Other • As of March 31, 2025, QNB Bank has ~$526.4 million of Securities, debt securities (1) 2.7% ➢ This represents 28.1% of total assets State & ➢ ~16% of the portfolio is invested in floating rate Political securities Subdiv Secs, 17.5% • The securities portfolio
Slide 19: Well-diversified Deposit portfolio
Well-diversified Deposit portfolio, with no single depositor accounting for more than 2.5% of Deposits QNBC Deposit Composition Jumbo Time (>250k) $49,713 Non-Interest-Bearing Deposits / Total Deposits (%) 3.0% (1) NIB $203,666 Retail Time 20.0% 12.2% 16.7% 16.8% 16.3% (<250k) $328,165 16.0% 19.7% 1
Slide 20: Core Deposits vs. PA Bank Holding Companies
Core Deposits / Total Deposits (1, 2) (%) 100.0% 98.3% 97.6% 97.6% 97.1% 97.0% 98.0% 96.8% 96.0% 95.2% 94.8% 94.0% 93.7% 92.0% 91.4% 90.0% 88.0% 89.7% 86.0% 85.2% 84.0% 82.0% 80.0% 2020Y 2021Y 2022Y 2023Y 2024Y 2025Q1 QNBC PA Bank Holding Companies Commentary • The Bank has over 100 years of brand v
Slide 21: Cost of Interest-Bearing Deposits vs. Fed Funds Target Rate
• 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 keep Cost of Deposits insulated in the recent cycle. From Q1’22 to Q1’25, QNB’s
Slide 22: Spread between assets and deposits increasing
Spread between assets and deposits has been increasing for the last four consecutive quarters 2.40% 2.50% 2.31% 6.00% 2.09% 2.02% 2.05% 1.99% 1.96% 1.96% 1.95% 2.00% 5.00% 4.86% 4.78% 4.81% 4.70% 4.57% 4.44% 4.00% 4.28% 1.50% 3.77% 3.83% 3.00% 1.00% 2.00% 2.62% 2.74% 2.81% 2.69% 0.50% 2.48% 2.50% 2.
Slide 23: Interest rate risk well balanced across scenarios
QNB interest rate risk is well balanced across multiple interest rate scenarios Net Interest Income Sensitivity Profile Interest Rate Scenario -200 -100 Base +100 +200 Net Interest Income Change - Next 12 Months -4.1% -1.9% 0.0% 1.5% 2.5% Net Interest Income Change - Next 24 Months -10.0 -4.8% 0.0%
Slide 24: Disciplined on expenses amidst inflationary environment
QNBC has remained disciplined on expenses amidst an inflationary macro environment 3.00% 2.55% 2.48% 2.51% 2.46% 2.50% 2.38% 2.39% 2.38% 2.36% 2.27% 2.00% 1.89% 1.65% 1.67% 1.55% 1.63% 1.50% 1.61% 1.55% 1.58% 1.43% 1.00% 0.50% 0.00% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 (1) Q1'25 Net Inter
Slide 25: Improved results led to sustained increase in stock price
Improvement in financial results has led to a sustained increase in QNBC’s stock price QNBC Closing Stock Price $40.00 P/TBV(1) P/TBV(1) 1.21% 1.22% $35.00 35.25 $33.92 P/TBV(1) P/TBV(1) $30.00 1.34% 1.05% $29.49 $25.99 $25.05 $25.00 $26.33 $22.96 $23.49 $24.19 $23.23 $20.00 $15.00 12/30/2022 3/31/2
Slide 26: Appendix
Appendix #ONBBank
Slide 27: Management biographies: Freeman, Lehocky, Cattie
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 present. Mr. Freeman als
Slide 28: Management biographies: Covelens, McDonald, Orzehoski
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 2023. Ms. Covelens serve
Slide 29: Consolidated balance sheet: assets
(dollars shown in thousands) Year-ended December 31, As of Quarter End, 2020 2021 2,022 2023 2024 2024Q1 2025Q1 Assets Cash and due from banks $13,422 $9,194 $14,657 $11,447 $11,369 $12,470 $17,746 Interest-bearing deposits in banks $25,909 $4,196 $1,242 $51,210 $39,344 $38,493 $63,811 Total cash an
Slide 30: Consolidated balance sheet: liabilities
(dollars shown in thousands) Year-ended December 31, As of Quarter End, 2020 2021 2,022 2023 2024 2024Q1 2025Q1 Liabilities Deposits Demand, non-interest bearing $204,584 $243,006 $231,849 $185,098 $183,499 $188,260 $203,666 Interest- bearing demand $395,364 $468,199 $452,927 $462,712 $537,846 $460,
Slide 31: Interest income and expense
(dollars shown in thousands) Year-ended December 31, As of Quarter End, 2020 2021 2022 2023 2024 2024Q1 2025Q1 INTEREST INCOME AND EXPENSE Interest Income Interest and fees on loans $36,504 $38,330 $40,922 $53,884 $65,367 $15,250 $17,315 Interest and dividends on available-for-sale & equity securiti
Slide 32: Non-interest income and expense
(dollars shown in thousands) Year-ended December 31, As of Quarter End, 2020 2021 2022 2023 2024 2024Q1 2025Q1 NON-INTEREST INCOME AND EXPENSE Non-Interest Income Net (loss) gain on sales and calls of available-for-sale and equity securities -$47 $926 $266 -$2,077 $919 $377 $0 Unrealized gain (loss)