Note 10 - Long-Term Debt

12 Months Ended

Dec. 31, 2013

Disclosure Text Block [Abstract]

Long-term Debt [Text Block]

Note 10 - Long-Term Debt

Under terms of its agreement with the FHLB, QNB maintains otherwise unencumbered qualifying assets (principally 1-4 family residential mortgage loans and U.S. Government and agency notes, bonds, and mortgage-backed securities) in the amount of at least as much as its advances from the FHLB. QNB’s FHLB stock of $1,752,000 and $2,232,000 at December 31, 2013 and 2012, respectively, is also pledged to secure these advances.

QNB has a maximum borrowing capacity with the FHLB of approximately $216,920,000. At December 31, 2013, QNB had no borrowings outstanding with the FHLB. QNB had $4,500,000 in borrowings outstanding with the FHLB at December 31, 2012. These borrowings are reported in Note 9 as other short-term borrowings.

Repurchase agreements are treated as financings with the obligations to repurchase securities sold reflected as a liability in the balance sheet. The dollar amount of securities underlying the agreements remains recorded as an asset, although the securities underlying the agreements are delivered to the broker who arranged the transactions. The broker/dealer who participated with the Company in these agreements is PNC Bank. Securities underlying sales of securities under repurchase agreements consisted of municipal securities that had an amortized cost of $5,799,000 and a fair value of $5,961,000 at December 31, 2013.

	2013						2012
Maturity date	Balance			Weighted average rate			Balance			Weighted average rate
2014	$	5,000	1		4.77	%	$	5,000	1		4.77	%

¹ $2,500,000 callable beginning 4/17/10, $2,500,000 callable beginning 4/17/12

Long term debt at December 31, 2013 and 2012 also included secured borrowings of $0 and $287,000, respectively.