Business
QNB Corp. Reports Earnings for Second Quarter 2025
QNB Corp. Reports Earnings for Second Quarter
About this update from Qnb Corp.
QUAKERTOWN, Pa., July 22, 2025 (GLOBE NEWSWIRE) -- QNB Corp. (the “Company” or “QNB”) (OTCQX: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the second quarter of 2025 of $3,883,000 or $1.04 per share on a diluted basis. This compares to net income of $2,465,000, or $0.67 per share on a diluted basis, for the same period in 2024. For the six months ended June 30, 2025, QNB reported net income of $6,461,000, or $1.74 per share on a diluted basis. This compares to net income of $5,059,000, or $1.38 per share on a diluted basis, reported for the same period in 2024. For the second quarter ended June 30, 2025, the annualized rate of return on average assets and average shareholders’ equity was 0.83% and 14.25%, respectively, compared with 0.57% and 10.73%, respectively, for the second quarter 2024. The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended June 30, 2025, in comparison with the same period in 2024, due primarily to improvement in the interest margin causing a $2,915,000 increase in net interest income and a reduction in the provision for credit losses on loans and unfunded commitments of $260,000; this was partly offset by a decrease in non-interest income of $146,000 and an increase in non-interest expense of $539,000. The change in contribution from QNB Corp. for the quarter ended June 30, 2025, compared with the same period in 2024, is primarily due to a decrease in net interest income of $855,000, related to the subordinated debt issuance in 2024. The following table presents disaggregated net income (loss): Three months ended, Six months ended, 6/30/2025 6/30/2024 Variance 6/30/2025 6/30/2024 Variance QNB Bank $ 4,679,000 $ 2,741,000 $ 1,938,000 $ 7,971,000 $ 5,072,000 $ 2,899,000 QNB Corp (796,000 ) (276,000 ) (520,000 ) (1,510,000 ) (13,000 ) (1,497,000 ) Consolidated net income $ 3,883,000 $ 2,465,000 $ 1,418,000 $ 6,461,000 $ 5,059,000 $ 1,402,000 Total assets as of June 30, 2025 were $1,884,828,000 compared with $1,870,894,000 at December 31, 2024. Total cash and cash equivalents increased $15,758,000, or 31.1%, to $66,471,000, primarily due to increases in customer deposits. Loans receivable increased $2,491,000 to $1,218,539,000. Total deposits increased $23,126,000, or 1.4%, to $1,651,667,000. Long-term borrowing declined $30,000,000 and short-term borrowing increased $13,620,000. “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,” said David W. Freeman, President and Chief Executive Officer. He added, “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.” Net Interest Income and Net Interest Margin Net interest income for the quarter ended June 30, 2025 totaled $12,652,000, an increase of $2,060,000, from the same period in 2024. Net interest margin was 2.69% for the second quarter of 2025 and 2.46% for the same period in 2024. Net interest margin was 2.60% for the six months ended June 30, 2025, compared with 2.43% for the same period in 2024. The yield on earning assets was 4.90% for the second quarter of 2025, compared with 4.70% in the second quarter of 2024; an increase of 20 basis points. For the six-month period ended June 30, 2025, the yield on earning assets was 4.85%, compared with 4.64% for the same period in 2024. The cost of interest-bearing liabilities was 2.68% for the second quarter ended June 30, 2025, compared with 2.73% for the same period in 2024, a decrease of five basis points. For the six-month period ended June 30, 2025, the cost of interest-bearing liabilities was 2.72% compared with 2.70% for the same period in 2024. Proceeds from the growth in average deposits and the issuance of subordinated debt over the past year were invested in loans, higher-yielding securities and used to pay down short-term borrowings. Loan growth was primarily in commercial real estate, which comprised 45.5% of average earning assets in the six months of 2025 compared with 45.2% for the same period in 2024, and the increases in both rates and volume in commercial real estate loans majorly contributed to the 29 basis-point increase in the yield on loans. The increase in the available-for-sale investments portfolio was primarily in corporate debt securities. The 18-basis point increase in rate on investments was primarily due to the 96-basis point increase in the yield on corporate debt securities. The average rate paid on interest-bearing deposits decreased 22 basis points; this was more than offset by the issuance of subordinated debt, which was the primary contributor to the increase in the cost of funds of two basis points. Asset Quality, Provision for Credit Losses on Loans and Allowance for Credit Losses QNB recorded a reversal of $145,000 in the provision for credit losses on loans in the second quarter of 2025 compared to a $132,000 provision in the second quarter of 2024. QNB recorded a provision of $406,000 in the provision for credit losses on loans for the six-month ended June 30, 2025 compared to a $39,000 provision for the same period of 2024. QNB's allowance for credit losses on loans of $9,169,000 represents 0.75% of loans receivable at June 30, 2025, compared to $8,744,000, or 0.72% of loans receivable at December 31, 2024. The three-basis point increase in the allowance for credit losses on loans was primarily due to an increase in loans and reserves for collateral dependent loans partly offset by an improvement in the economic outlook. Net loan recoveries were $16,000 for the quarter ended June 30, 2025, compared with charge-offs of $12,000 for the same period in 2024. Annualized net loan recoveries for the quarter ended June 30, 2025 were 0.01% and annualized net loan charge-offs were 0.00% for the quarter ended June 30, 2024, of average loans receivable, respectively. Net loan recoveries were $19,000 for the six months ended June 30, 2025, compared with charge-offs of $33,000 for the same period in 2024. Annualized net loan recoveries for the six months ended June 30, 2025 were 0.00% compared to annualized net charge-offs of 0.01% for the same period in 2024, of average loans receivable, respectively. Total non-performing loans, which represent loans on non-accrual status and loans past due 90 days or more and still accruing interest, were $8,947,000, or 0.73% of loans receivable at June 30, 2025, compared with $1,975,000, or 0.16% of loans receivable at December 31, 2024. The increase was primarily due to one commercial customer relationship. In cases where there is a collateral shortfall on non-accrual loans, specific reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. At June 30, 2025, $7,841,000, or approximately 88% of the loans classified as non-accrual, are current or past due less than 30 days. Commercial loans classified as substandard or doubtful loans totaled $34,275,000 at June 30, 2025, compared with $34,301,000 at December 31, 2024; these were comprised primarily of commercial real estate loans. Non-Interest Income Total non-interest income was $1,652,000 for the second quarter of 2025 compared with $1,465,000 for the same period in 2024. There were no realized and unrealized gain/loss on securities for the quarter ended June 30, 2025 compared to a net loss of $80,000 in the same period in 2024. Excluding the net realized and unrealized gains on securities, non-interest income increased $107,000, or 6.9%. During the second quarter of 2024 the Bank sold lower-yielding securities to better position its net interest margin; the total loss on security sales was $1,096,000. The Bank also completed the exchange offer to convert its Visa B-1 shares to B-2 and C shares; the Bank recorded a $1,354,000 unrealized gain on the Visa C shares in the second quarter of 2024. Fees for service to customers increased $58,000 for the quarter ended June 30, 2025, as overdraft fees increased $45,000 and other deposit-related fees increased $13,000. ATM and debit card increased $19,000 due to volume. Retail brokerage and advisory income increased $14,000 to $140,000 for the same period. Other non-interest income increased $10,000 for the same period due to an increase in letter of credit fees of $7,000 and referral income of $6,000. For the six months ended June 30, 2025, non-interest income was $3,236,000 a decrease of $65,000 compared to the same period in 2024, primarily due to the change in fair value of the equities portfolio of $986,000 in 2024; primarily related to the Visa stock conversion discussed above. Realized loss on sale of securities in 2024 was $719,000. Net gain on sale of loans increased $9,000 when comparing the six months ended June 30, 2025 with the same period in 2024. Increases in non-interest income for the six months ended June 30, 2025 compared to the same period in 2024 comprise: fees for services to customers, ATM and debit card fees and retail brokerage and advisory, which increased $85,000, $39,000 and $62,000, respectively. Other non-interest income increased $7,000 due primarily to increases in letter of credit fees and title insurance company income partly offset by a decrease in merchant servicing income. Non-Interest Expense Total non-interest expense was $9,562,000 for the second quarter of 2025 compared with $8,934,000 for the same period in 2024. Salaries and benefits expense increased $213,000, or 4.2%, to $5,251,000 when comparing the two quarters. Salary expense and related payroll taxes increased $350,000, or 8.5%, to $4,447,000 during the second quarter of 2025 compared to the same period in 2024, primarily due to pay increases. Benefits expense decreased $177,000, or 31.3%, when comparing the two periods primarily due to a reduction in medical costs. Net occupancy and furniture and equipment expense increased $200,000, or 13.5%, to $1,681,000 for the second quarter of 2025 primarily due to software maintenance costs and depreciation. Other non-interest expense increased $215,000, or 8.9%, when comparing second quarter of 2025 with the same period in 2024 due to an increase in third-party services of $127,000 related to information technology services and consultant expense and an increase in write-offs relating to fraud on customer accounts of $150,000. These increases were partly offset by the recording of a potential expense of $85,000 related to the Visa stock exchange make-whole agreement in the 2024 period. For the six months ended June 30, 2025, non-interest expense was $18,931,000, an increase of $1,164,000, or 6.6%, compared to the same period in 2024. Income Taxes Provision for income taxes increased $461,000 to $1,005,000 in the second quarter of 2025 due increased pre-tax income, compared with the same period in 2024. The effective tax rate for the quarter ended June 30, 2025 was 20.6% compared with 18.1% for the same period in 2024. The effective tax rate for the six months ended June 30, 2025 was 20.1% compared with 19.3% for the same period in 2024. About the Company QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve branches in Bucks, Lehigh and Montgomery Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at QNBBank.com. Forward Looking Statement This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including "Item lA. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. Contacts: David W. Freeman Jeffrey Lehocky President & Chief Executive Officer Chief Financial Officer 215-538-5600 x-5619 215-538-5600 x-5716 [email protected] [email protected] QNB Corp. Consolidated Selected Financial Data (unaudited) (Dollars in thousands) Balance Sheet (Period End) 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 Assets $ 1,884,828 $ 1,896,189 $ 1,870,894 $ 1,841,563 $ 1,761,487 Cash and cash equivalents 66,471 81,557 50,713 104,232 76,909 Investment securities Debt securities, AFS 544,262 547,138 546,559 510,036 460,418 Equity securities — — — 2,760 7,233 Loans held-for-sale 1,166 248 664 294 786 Loans receivable 1,218,539 1,212,162 1,216,048 1,171,361 1,162,310 Allowance for credit losses on loans (9,169 ) (9,298 ) (8,744 ) (8,987 ) (8,858 ) Net loans 1,209,370 1,202,864 1,207,304 1,162,374 1,153,452 Deposits 1,651,667 1,664,555 1,628,541 1,626,284 1,572,839 Demand, non-interest bearing 201,460 203,666 183,499 190,240 190,333 Interest-bearing demand, money market and savings 1,060,688 1,083,011 1,063,584 1,055,409 1,003,813 Time 389,519 377,878 381,458 380,635 378,693 Short-term borrowings 67,464 43,299 53,844 22,918 49,066 Long-term debt — 30,000 30,000 30,000 30,000 Subordinated debt 39,168 39,118 39,068 39,030 — Shareholders' equity 113,269 108,223 103,349 105,340 96,885 Asset Quality Data (Period End) Non-accrual loans $ 8,947 $ 8,651 $ 1,975 $ 1,696 $ 2,078 Loans past due 90 days or more and still accruing — — — — — Non-performing loans 8,947 8,651 1,975 1,696 2,078 Other real estate owned and repossessed assets — — — — — Non-performing assets $ 8,947 $ 8,651 $ 1,975 $ 1,696 $ 2,078 Allowance for credit losses on loans $ 9,169 $ 9,298 $ 8,744 $ 8,987 $ 8,858 Non-performing loans / Loans excluding held-for-sale 0.73 % 0.71 % 0.16 % 0.14 % 0.18 % Non-performing assets / Assets 0.47 % 0.46 % 0.11 % 0.09 % 0.12 % Allowance for credit losses on loans / Loans excluding held-for-sale 0.75 % 0.77 % 0.72 % 0.77 % 0.76 % QNB Corp. Consolidated Selected Financial Data (unaudited) (Dollars in thousands, except per share data) Three months ended, Six months ended, For the period: 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 Interest income $ 23,110 $ 22,198 $ 22,209 $ 21,945 $ 20,345 $ 45,308 $ 39,914 Interest expense 10,458 10,661 11,234 10,818 9,753 21,119 19,154 Net interest income 12,652 11,537 10,975 11,127 10,592 24,189 20,760 (Reversal of) provision for credit losses (146 ) 550 (255 ) 159 114 404 28 Net interest income after provision for credit losses 12,798 10,987 11,230 10,968 10,478 23,785 20,732 Non-interest income: Fees for services to customers 485 447 454 469 427 932 847 ATM and debit card 724 656 708 691 705 1,380 1,341 Retail brokerage and advisory income 140 141 118 139 126 281 219 Net realized gain (loss) on investment securities - - 1,414 224 (1,096 ) - (719 ) Unrealized (loss) gain on equity securities - - (1,344 ) 143 1,016 - 986 Net (loss) gain on sale of loans 4 18 (3 ) 19 (2 ) 22 13 Other 299 322 298 282 289 621 614 Total non-interest income 1,652 1,584 1,645 1,967 1,465 3,236 3,301 Non-interest expense: Salaries and employee benefits 5,251 5,032 5,079 4,650 5,038 10,283 10,012 Net occupancy and furniture and equipment 1,681 1,736 1,653 1,531 1,481 3,417 2,996 Other 2,630 2,601 2,349 2,455 2,415 5,231 4,759 Total non-interest expense 9,562 9,369 9,081 8,636 8,934 18,931 17,767 Income before income taxes 4,888 3,202 3,794 4,299 3,009 8,090 6,266 Provision for income taxes 1,005 624 743 961 544 1,629 1,207 Net income $ 3,883 $ 2,578 $ 3,051 $ 3,338 $ 2,465 $ 6,461 $ 5,059 Share and Per Share Data: Net income - basic $ 1.05 $ 0.70 $ 0.83 $ 0.91 $ 0.67 $ 1.74 $ 1.38 Net income - diluted $ 1.04 $ 0.69 $ 0.83 $ 0.91 $ 0.67 $ 1.74 $ 1.38 Book value $ 30.46 $ 27.96 $ 28.57 $ 26.34 $ 25.57 $ 30.46 $ 25.57 Cash dividends $ 0.38 $ 0.38 $ 0.37 $ 0.37 $ 0.37 $ 0.76 $ 0.74 Average common shares outstanding -basic 3,710,878 3,699,854 3,688,078 3,679,799 3,665,695 3,705,396 3,660,435 Average common shares outstanding -diluted 3,724,808 3,713,141 3,695,518 3,682,773 3,665,695 3,718,513 3,660,435 Selected Ratios: Return on average assets (1) 0.83 % 0.56 % 0.66 % 0.74 % 0.57 % 0.69 % 0.59 % Return on average shareholders' equity (1) 14.25 % 9.73 % 11.62 % 13.25 % 10.73 % 12.02 % 11.05 % Net interest margin (tax equivalent) 2.69 % 2.51 % 2.38 % 2.48 % 2.46 % 2.60 % 2.43 % Efficiency ratio (tax equivalent) 66.39 % 70.65 % 71.16 % 65.27 % 73.26 % 68.43 % 73.00 % Average shareholders' equity to total average assets 5.79 % 5.74 % 5.65 % 5.59 % 5.35 % 5.77 % 5.35 % Net loan (recoveries) charge-offs $ (16 ) $ (3 ) $ 1 $ 25 $ 12 $ (19 ) $ 33 Net loan (recoveries) charge-offs - annualized / Average loans excluding held-for-sale -0.01 % 0.00 % 0.00 % 0.01 % 0.00 % 0.00 % 0.01 % Balance Sheet (Average) Assets (1) $ 1,887,138 $ 1,872,950 $ 1,848,524 $ 1,792,952 $ 1,729,132 $ 1,880,083 $ 1,719,837 Investment securities 621,128 614,329 552,323 569,135 578,615 623,827 573,876 Loans receivable 1,216,011 1,193,949 1,158,731 1,139,874 1,108,836 1,213,173 1,124,354 Deposits 1,647,990 1,635,629 1,600,925 1,542,661 1,497,692 1,640,634 1,520,176 Shareholders' equity (1) 109,299 107,503 104,433 100,192 92,432 108,406 92,064 (1) In 2025, the Company changed its calculation of average assets and average equity to include the impact of accumulated other comprehensive income (loss), net of tax, to align its calculation with its peer group. Prior period information has been restated for this new calculation; specifically impacting the non-GAAP performance ratios for return on average assets and return on average equity. QNB Corp. (Consolidated) Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis) Three Months Ended June 30, 2025 June 30, 2024 Average Average Average Average Balance Rate Interest Balance Rate Interest Assets Investment securities: U.S. Treasury $ 21,032 4.24 % $ 223 $ 6,824 5.19 % $ 88 U.S. Government agencies 75,963 1.18 224 84,558 1.17 246 State and municipal 105,090 2.88 756 107,881 3.51 947 Mortgage-backed and CMOs 354,349 2.46 2,184 356,650 2.73 2,436 Corporate debt securities and mutual funds 64,694 6.38 1,031 6,721 5.72 96 Equities - - - 6,501 3.55 57 Total investment securities 621,128 2.84 4,418 569,135 2.72 3,870 Loans: Commercial real estate 863,096 5.94 12,775 801,691 5.46 10,876 Residential real estate 114,600 4.38 1,255 108,693 4.07 1,106 Home equity loans 70,666 6.41 1,130 65,575 6.83 1,114 Commercial and industrial 145,262 7.41 2,682 142,174 7.60 2,686 Consumer loans 3,355 7.70 65 3,781 7.50 71 Tax-exempt loans 19,347 4.23 205 18,284 3.87 176 Total loans, net of unearned income* 1,216,326 5.97 18,112 1,140,198 5.65 16,029 Other earning assets 61,355 4.45 680 43,200 5.44 584 Total earning assets 1,898,809 4.90 23,210 1,752,533 4.70 20,483 Cash and due from banks 13,806 13,313 Accumulated other comprehensive loss, net of tax (59,922 ) (68,908 ) Allowance for credit losses on loans (9,376 ) (8,885 ) Other assets 43,821 41,079 Total assets $ 1,887,138 $ 1,729,132 Liabilities and Shareholders' Equity Interest-bearing deposits: Interest-bearing demand $ 376,735 0.94 % 888 $ 334,017 0.84 % 702 Municipals 146,214 3.92 1,427 132,762 4.81 1,587 Money market 259,621 2.88 1,862 229,984 3.58 2,049 Savings 281,076 1.29 901 290,172 1.28 924 Time < $100 179,411 3.61 1,617 170,640 4.03 1,708 Time $100 through $250 155,026 3.99 1,542 143,315 4.59 1,636 Time > $250 51,832 4.08 527 53,316 4.63 614 Total interest-bearing deposits 1,449,915 2.42 8,764 1,354,206 2.74 9,220 Short-term borrowings 70,942 3.90 689 52,383 1.52 199 Long-term debt 5,495 4.79 67 28,132 4.70 334 Subordinated debt 39,141 9.58 938 — — — Total borrowings 115,578 5.88 1,694 80,515 2.66 533 Total interest-bearing liabilities 1,565,493 2.68 10,458 1,434,721 2.73 9,753 Non-interest-bearing deposits 198,075 188,455 Other liabilities 14,271 13,524 Shareholders' equity 109,299 92,432 Total liabilities and shareholders' equity $ 1,887,138 $ 1,729,132 Net interest rate spread 2.22 % 1.97 % Margin/net interest income 2.69 % $ 12,752 2.46 % $ 10,730 Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21% Non-accrual loans and investment securities are included in earning assets. * Includes loans held-for-sale QNB Corp. (Consolidated) Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis) Six Months Ended June 30, 2025 June 30, 2024 Average Average Average Average Balance Rate Interest Balance Rate Interest Assets Investment securities: U.S. Treasury $ 20,596 4.31 % $ 440 $ 6,803 5.26 % $ 178 U.S. Government agencies 75,962 1.18 448 84,755 1.17 494 State and municipal 105,172 2.87 1,510 108,027 3.46 1,871 Mortgage-backed and CMOs 358,969 2.45 4,392 361,317 2.66 4,809 Corporate debt securities and mutual funds 63,128 6.62 2,089 6,714 5.66 190 Equities - - - 6,260 3.63 113 Total investment securities 623,827 2.85 8,879 573,876 2.67 7,655 Loans: Commercial real estate 860,363 5.82 24,844 788,413 5.40 21,176 Residential real estate 114,436 4.36 2,493 108,808 3.99 2,172 Home equity loans 69,327 6.41 2,204 63,922 6.82 2,169 Commercial and industrial 146,962 7.41 5,399 141,233 7.55 5,301 Consumer loans 3,400 7.69 130 3,712 7.80 144 Tax-exempt loans 19,073 4.19 397 18,462 3.85 353 Total loans, net of unearned income* 1,213,561 5.89 35,467 1,124,550 5.60 31,315 Other earning assets 54,536 4.44 1,202 44,922 5.48 1,223 Total earning assets 1,891,924 4.85 45,548 1,743,348 4.64 40,193 Cash and due from banks 13,517 13,041 Accumulated other comprehensive loss, net of tax (59,954 ) (68,475 ) Allowance for credit losses on loans (9,059 ) (8,916 ) Other assets 43,655 40,839 Total assets $ 1,880,083 $ 1,719,837 Liabilities and Shareholders' Equity Interest-bearing deposits: Interest-bearing demand $ 378,504 0.98 % 1,832 $ 327,961 0.82 % 1,345 Municipals 147,887 3.93 2,883 132,325 4.81 3,164 Money market 257,952 2.88 3,680 228,928 3.57 4,064 Savings 280,371 1.29 1,794 294,262 1.28 1,873 Time < $100 178,958 3.70 3,287 164,175 3.90 3,181 Time $100 through $250 154,578 4.12 3,155 135,464 4.47 3,013 Time > $250 50,317 4.19 1,045 51,536 4.43 1,136 Total interest-bearing deposits 1,448,567 2.46 17,676 1,334,651 2.68 17,776 Short-term borrowings 59,300 3.90 1,145 69,912 2.37 824 Long-term debt 17,735 4.74 423 24,066 4.56 554 Subordinated debt 39,117 9.59 1,875 — — — Total borrowings 116,152 5.98 3,443 93,978 2.95 1,378 Total interest-bearing liabilities 1,564,719 2.72 21,119 1,428,629 2.70 19,154 Non-interest-bearing deposits 192,067 185,525 Other liabilities 14,891 13,619 Shareholders' equity 108,406 92,064 Total liabilities and shareholders' equity $ 1,880,083 $ 1,719,837 Net interest rate spread 2.13 % 1.94 % Margin/net interest income 2.60 % $ 24,429 2.43 % $ 21,039 Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21% Non-accrual loans and investment securities are included in earning assets. * Includes loans held-for-sale