Note 11 - Regulatory Restrictions

9 Months Ended

Sep. 30, 2013

Disclosure Text Block [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

11. REGULATORY RESTRICTIONS

Dividends payable by the Company and the Bank are subject to various limitations imposed by statutes, regulations and policies adopted by bank regulatory agencies. Under Pennsylvania banking law, the Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. Under Federal Reserve regulations, the Bank is limited as to the amount it may lend affiliates, including QNB Corp., unless such loans are collateralized by specific obligations.

Both the Company and the Bank are subject to regulatory capital requirements administered by Federal banking agencies. Failure to meet minimum capital requirements can initiate actions by regulators that could have an effect on the financial statements. Under the framework for prompt corrective action, both the Company and the Bank must meet capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items. The capital amounts and classification are also subject to qualitative judgments by the regulators. Management believes, as of September 30, 2013, that the Company and the Bank met capital adequacy requirements to which they were subject.

As of the most recent notification, the primary regulator of the Bank considered it to be “well capitalized” under the regulatory framework. There are no conditions or events since that notification that management believes have changed the classification. To be categorized as well capitalized, the Company and the Bank must maintain minimum ratios as set forth in the following table.

	Capital levels
	Actual					Adequately capitalized					Well capitalized
As of September 30, 2013	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total risk-based capital (to risk-weighted assets):
Consolidated	$	85,685		13.88	%	$	49,402		8.00	%	N/A		N/A
Bank		80,446		13.13			49,019		8.00		$	61,274		10.00	%
Tier I capital (to risk-weighted assets):
Consolidated		77,721		12.59			24,701		4.00		N/A		N/A
Bank		72,770		11.88			24,510		4.00			36,764		6.00
Tier I capital (to average assets):
Consolidated		77,721		8.26			37,637		4.00		N/A		N/A
Bank		72,770		7.77			37,449		4.00			46,811		5.00

	Capital levels
	Actual					Adequately capitalized					Well capitalized
As of December 31, 2012	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total risk-based capital (to risk-weighted assets):
Consolidated	$	80,758		13.60	%	$	47,490		8.00	%	N/A		N/A
Bank		76,154		12.92			47,170		8.00		$	58,963		10.00	%
Tier I capital (to risk-weighted assets):
Consolidated		73,167		12.33			23,745		4.00		N/A		N/A
Bank		68,754		11.66			23,585		4.00			35,378		6.00
Tier I capital (to average assets):
Consolidated		73,167		7.96			36,762		4.00		N/A		N/A
Bank		68,754		7.51			36,602		4.00			45,752		5.00