OTCPK:QNBC

Stock Analysis Report

Executive Summary

QNB Corp. operates as a bank holding company for QNB Bank that provides commercial and retail banking services for the residents and businesses in southeastern Pennsylvania.

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has QNB's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.03%

QNBC

4.8%

US Banks

2.3%

US Market


1 Year Return

-20.5%

QNBC

0.04%

US Banks

5.6%

US Market

Return vs Industry: QNBC underperformed the US Banks industry which returned 0% over the past year.

Return vs Market: QNBC underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

QNBCIndustryMarket
7 Day0.03%4.8%2.3%
30 Day0.4%-0.5%-1.0%
90 Day0.6%2.0%-0.7%
1 Year-17.8%-20.5%2.9%0.04%7.9%5.6%
3 Year18.4%7.8%51.5%41.1%45.6%36.3%
5 Year60.7%35.4%70.9%52.3%65.8%47.6%

Price Volatility Vs. Market

How volatile is QNB's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is QNB undervalued compared to its fair value and its price relative to the market?

2.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: QNBC ($36.56) is trading below our estimate of fair value ($37.33)

Significantly Undervalued: QNBC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: QNBC is good value based on its PE Ratio (10.6x) compared to the Banks industry average (12.6x).

PE vs Market: QNBC is good value based on its PE Ratio (10.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate QNBC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: QNBC is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is QNB forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QNBC's forecast earnings growth (2.9% per year) is above the savings rate (2.7%).

Earnings vs Market: QNBC's earnings (2.9% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: QNBC's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if QNBC's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if QNBC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if QNBC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has QNB performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QNBC's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: QNBC's earnings growth over the past year (36.4%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: QNBC earnings growth over the past year (36.4%) exceeded the Banks industry 31.8%.


Return on Equity

High ROE: QNBC's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: QNBC's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate QNBC's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is QNB's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: QNBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: QNBC's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: QNBC's level of assets compared to its equity is moderate.

Allowance for Bad Loans: QNBC has a low allowance for bad loans.

Low Risk Liabilities: QNBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: QNBC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: QNBC's loans are broadly funded by customer deposits.

Level of Bad Loans: QNBC has an appropriate level of bad loans (1.18%)


Next Steps

Dividend

What is QNB's current dividend yield, its reliability and sustainability?

3.61%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: QNBC's dividend (3.61%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: QNBC's dividend (3.61%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: QNBC's dividends per share have been stable in the past 10 years.

Growing Dividend: QNBC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.5%), QNBC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of QNB's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Dave Freeman (63yo)

6.8yrs

Tenure

US$572,917

Compensation

Mr. David W. Freeman, also known as Dave, has been the President of QNB Corp. and its subsidiary QNB Bank since September 8, 2010 and has also been its Chief Executive Officer since January 1, 2013. Mr. Fr ...


CEO Compensation Analysis

Compensation vs. Market: Dave's total compensation ($USD572.92K) is about average for companies of similar size in the US market ($USD493.00K).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: QNBC's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

10.9yrs

Average Tenure

63yo

Average Age

Experienced Board: QNBC's board of directors are seasoned and experienced ( 10.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$7,77629 Jan 19
Janice McCracken
EntityIndividual
Shares195.42
Max PriceUS$44.36
BuyUS$1,39429 Jan 19
Janice McCracken
EntityIndividual
Shares33.73
Max PriceUS$43.99
BuyUS$94,48229 Jan 19
W. Stauffer
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,281.6
Max PriceUS$43.99
BuyUS$5,96929 Jan 19
Gary Parzych
EntityIndividual
Role
Member of the Board of Directors
Director
Shares144.14
Max PriceUS$43.99
BuyUS$3,67829 Jan 19
Anna Papso
EntityIndividual
Role
Member of the Board of Directors
Director
Shares88.83
Max PriceUS$43.99
BuyUS$20,42429 Jan 19
Jennifer Mann
EntityIndividual
Role
Member of the Board of Directors
Director
Shares491.76
Max PriceUS$43.99
BuyUS$4,29929 Jan 19
David Freeman
EntityIndividual
Role
Chief Executive Officer
President
Shares112.27
Max PriceUS$38.29
BuyUS$1,77929 Jan 19
Christopher Cattie
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Information Technology Officer
Shares45
Max PriceUS$39.60
BuyUS$2129 Jan 19
Christopher Cattie
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Information Technology Officer
Shares0.54
Max PriceUS$43.99
BuyUS$3,84109 Jan 19
Dale Westwood
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Retail Officer
Shares95.51
Max PriceUS$44.36
BuyUS$1,95009 Jan 19
Dale Westwood
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Retail Officer
Shares47.04
Max PriceUS$43.99
BuyUS$14,12306 Dec 18
David Freeman
EntityIndividual
Role
Chief Executive Officer
President
Shares348.58
Max PriceUS$44.36

Ownership Breakdown


Management Team

  • Scott Orzehoski (53yo)

    Executive VP & Chief Lending Officer

    • Tenure: 17.8yrs
    • Compensation: US$314.01k
  • Mary Beth Liddle

    Senior VP & Chief Accounting Officer

    • Tenure: 1.7yrs
  • Dale Westwood (63yo)

    Executive VP & Chief Retail Officer

    • Tenure: 11yrs
    • Compensation: US$222.02k
  • Ali Rashid A. Al-Mohannadi (47yo)

    • Tenure: 4.1yrs
  • Dave Freeman (63yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$572.92k
  • Janice McCracken Erkes (54yo)

    Executive VP & Chief Financial Officer

    • Tenure: 5.1yrs
    • Compensation: US$326.79k
  • Jean Scholl

    Assistant Secretary

    • Tenure: 0yrs
  • Christopher Cattie (46yo)

    Executive VP & Chief Information Technology Officer

    • Tenure: 3.5yrs
    • Compensation: US$244.70k
  • Suzanne Weisberg

    Secretary

    • Tenure: 0yrs
  • William Marks

    Senior VP & Commercial Loan Officer

    • Tenure: 0yrs

Board Members

  • Anna Papso (75yo)

    Director

    • Tenure: 15yrs
    • Compensation: US$28.50k
  • Autumn Bayles (48yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$20.80k
  • Tom Bisko (72yo)

    Director

    • Tenure: 33.8yrs
    • Compensation: US$30.13k
  • Kenneth Brown (63yo)

    Director

    • Tenure: 26.8yrs
    • Compensation: US$29.00k
  • Dennis Helf (72yo)

    Chairman of the Board

    • Tenure: 17.8yrs
    • Compensation: US$52.63k
  • Gary Parzych (63yo)

    Director

    • Tenure: 24.8yrs
    • Compensation: US$28.68k
  • Scott Stevenson (58yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$21.13k
  • Dave Freeman (63yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$572.92k
  • W. Stauffer (64yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$23.00k
  • Jennifer Mann (49yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$21.88k

Company Information

QNB Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: QNB Corp.
  • Ticker: QNBC
  • Exchange: OTCPK
  • Founded: 1877
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$128.013m
  • Shares outstanding: 3.50m
  • Website: https://www.qnbbank.com

Number of Employees


Location

  • QNB Corp.
  • 15 North Third Street
  • PO Box 9005
  • Quakertown
  • Pennsylvania
  • 18951
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QNBCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDApr 1991

Biography

QNB Corp. operates as a bank holding company for QNB Bank that provides commercial and retail banking services for the residents and businesses in southeastern Pennsylvania. It offers various deposit produ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:40
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.