Parent Company Financial Information

12 Months Ended

Dec. 31, 2011

Parent Company Financial Information

Parent Company Financial Information

Note 18 – Parent Company Financial Information

Condensed financial statements of QNB Corp. only:

Balance Sheets
December 31,	2011		2010
Assets
Cash and cash equivalents	$	31	$	4
Investment securities available-for-sale		3,800		3,770
Investment in subsidiary		66,557		56,974
Other assets		453		342
Total assets	$	70,841	$	61,090
Liabilities
Other liabilities	$	-	$	-
Shareholders' equity
Total shareholders' equity	$	70,841	$	61,090
Total liabilities and shareholders' equity	$	70,841	$	61,090

Statements of Income
Year Ended December 31,	2011			2010
Dividends from subsidiary	$	2,575		$	2,552
Interest, dividend and other income		93			83
Net gain on sale of investment securities		43			254
Total income		2,711			2,889
Expenses		295			281
Income before applicable income taxes and equity in undistributed income of subsidiary		2,416			2,608
(Benefit) provision for income taxes		(55	)		18
Income before equity in undistributed income of subsidiary		2,471			2,590
Equity in undistributed income of subsidiary		6,409			4,627
Net income	$	8,880		$	7,217

Statements of Cash Flows
Year ended December 31,	2011			2010
Operating Activities
Net income	$	8,880		$	7,217
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income from subsidiary		(6,409	)		(4,627	)
Net securities gains		(43	)		(254	)
Stock-based compensation expense		59			51
(Increase) decrease in other assets		(101	)		554
Decrease in other liabilities		-			(246	)
Deferred income tax provision		15			86
Net cash provided by operating activities		2,401			2,781
Investing activities
Purchase of investment securities		(649	)		(1,067	)
Proceeds from sale of investment securities		589			1,083
Net cash (used) provided by investing activities		(60	)		16
Financing activities
Repayment of advances from subsidiaries		-			(400	)
Cash dividend paid, net of reinvestment		(2,893	)		(2,821	)
Proceeds from issuance of common stock		547			398
Tax benefit from exercise of stock options		32			3
Net cash used by financing activities		(2,314	)		(2,820	)
Increase (decrease) in cash and cash equivalents		27			(23	)
Cash and cash equivalents at beginning of year		4			27
Cash and cash equivalents at end of year	$	31		$	4