Note 4 - Investment Securities (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Debt Securities Available-for-sale

The amortized cost and fair values of investment debt securities available-for-sale at December 31, 2023 and 2022 were as follows:

			Gross		Gross			Gross
			unrealized		unrealized			unrealized
	Fair		holding		holding			fair value hedge			Amortized
December 31, 2023	value		gains		losses			losses			cost
U.S. Treasuries	$	6,451	$	3	$	—		$	—		$	6,448
U.S. Government agency		74,122		—		(10,828	)		—			84,950
State and municipal		89,189		—		(18,714	)		(445	)		108,348
U.S. Government agencies and sponsored    enterprises (GSEs):
Mortgage-backed		224,238		—		(37,831	)		(1,304	)		263,373
Collateralized mortgage obligations (CMOs)		89,973		—		(16,383	)		—			106,356
Corporate debt and money market funds		6,209		2		(496	)		—			6,703
Total investment securities available-for-sale	$	490,182	$	5	$	(84,252	)	$	(1,749	)	$	576,178

			Gross		Gross
			unrealized		unrealized
	Fair		holding		holding			Amortized
December 31, 2022	value		gains		losses			cost
U.S. Treasuries	$	301	$	2	$	—		$	299
U.S. Government agency		86,709		—		(15,233	)		101,942
State and municipal		95,367		—		(23,494	)		118,861
U.S. Government agencies and sponsored    enterprises (GSEs):
Mortgage-backed		256,161		—		(45,303	)		301,464
Collateralized mortgage obligations (CMOs)		101,672		—		(18,338	)		120,010
Corporate debt		6,315		—		(326	)		6,641
Total investment securities available-for-sale	$	546,525	$	2	$	(102,694	)	$	649,217

Investment Securities by Contractual Maturity

The amortized cost and fair value of debt securities available-for-sale by contractual maturity at December 31, 2023 are shown in the following table.

			Amortized
December 31, 2023	Fair value		cost
Due in one year or less	$	8,814	$	8,895
Due after one year through five years		159,745		179,738
Due after five years through ten years		247,158		296,154
Due after ten years		74,465		91,391
Total investment securities available-for-sale	$	490,182	$	576,178

Realized Gain (Loss) on Investments

The following table presents information related to QNB’s gains and losses on the sales of debt securities, and losses recognized for impairment of these investments.

December 31,	2023			2022			2021
Gross realized gains	$	—		$	8		$	18
Gross realized losses		(2,058	)		(147	)		—
Impairment		—			—			—
Total net (losses) gains on available-for-sale securities	$	(2,058	)	$	(139	)	$	18

Credit-related Impairment

The following table presents a summary of the cumulative credit-related impairment charges recognized as components of earnings for debt securities still held by QNB:

Year ended December 31,	2023		2022		2021
Balance, beginning of year	$	1	$	1	$	1
Reductions: sale, collateralized debt obligation		—		—		—
Additions:
Initial credit impairments		—		—		—
Subsequent credit impairments		—		—		—
Balance, end of year	$	1	$	1	$	1

Debt Securities in a Continuous Unrealized Loss Position

Debt securities that have been in a continuous unrealized loss position are as follows:

December 31, 2023
			Less than 12 months				12 months or longer					Total
	No. of		Fair		Unrealized		Fair		Unrealized			Fair		Unrealized
	securities		value		losses		value		losses			value		losses
U.S. Treasuries		1	$	494	$	—	$	—	$	—		$	494	$	—
U.S. Government agency		39		—		—		74,122		(10,828	)		74,122		(10,828	)
State and municipal		191		380		—		89,238		(18,714	)		89,618		(18,714	)
U.S. Government agencies    and sponsored enterprises    (GSEs):
Mortgage-backed		165		1		—		225,500		(37,831	)		225,501		(37,831	)
Collateralized mortgage    obligations (CMOs)		126		—		—		89,973		(16,383	)		89,973		(16,383	)
Corporate debt and money markets		4		—		—		6,101		(496	)		6,101		(496	)
Total		526	$	875	$	—	$	484,934	$	(84,252	)	$	485,809	$	(84,252	)

December 31, 2022
			Less than 12 months					12 months or longer					Total
	No. of		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	securities		value		losses			value		losses			value		losses
U.S. Government agency		46	$	3,647	$	(353	)	$	83,062	$	(14,880	)	$	86,709	$	(15,233	)
State and municipal		216		50,156		(7,816	)		45,210		(15,678	)		95,366		(23,494	)
U.S. Government agencies    and sponsored enterprises    (GSEs):
Mortgage-backed		197		58,811		(6,775	)		197,351		(38,528	)		256,162		(45,303	)
Collateralized mortgage    obligations (CMOs)		129		35,797		(3,983	)		65,875		(14,355	)		101,672		(18,338	)
Corporate debt		4		6,262		(318	)		53		(8	)		6,315		(326	)
Total		592	$	154,673	$	(19,245	)	$	391,551	$	(83,449	)	$	546,224	$	(102,694	)

Pooled Trust Preferred Securities

The following table provides additional information related to PreTSL IV as of December 31, 2023:

Deal	Class	Book value		Fair value		Unrealized gains (losses)			Realized OTTI credit loss (YTD 2023)		Total recognized OTTI credit loss		Moody's ratings	Current number of performing banks		Actual deferrals and defaults as a % of total collateral			Total performing collateral as a % of outstanding bonds
PreTSL IV	Mezzanine*	$	60	$	52	$	(7	)	$	—	$	1	Ba1		3		0.0	%		305.9	%

Mezzanine* - class of bonds still outstanding, represents the senior-most obligation of the trust)

Summary of Unrealized and Realized Gains and Losses Recognized in Net Income on Equity Securities

The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during 2023, 2022 and 2021:

December 31,	2023			2022			2021
Net gain (loss) recognized during the period on equity securities	$	231		$	(621	)	$	2,714
Less: Net (loss) gain recognized during the period on equity securities sold during the period		(19	)		405			1,788
Net unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date	$	250		$	(1,026	)	$	926