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Note 11 - Regulatory Restrictions
6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
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 June 30, 2016, 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
 
 
Minimum required
 
 
Well capitalized
 
As of June 30, 2016
 
Amount
 
 
Ratio
 
 
Amount
 
 
Ratio
 
 
Amount
 
 
Ratio
 
Total risk-based capital (to risk-weighted assets):
                                               
Consolidated
  $ 101,748       13.13 %   $ 61,978       8.00 %   $ 77,473       10.00 %
Bank
    93,948       12.50       60,132       8.00       75,165       10.00  
                                                 
Tier I capital (to risk-weighted assets):
                                               
Consolidated
    94,128       12.15       46,484       6.00       46,484       6.00  
Bank
    86,339       11.49       45,099       6.00       60,132       8.00  
                                                 
Common equity tier 1 capital (to risk-weighted assets):
                                               
Consolidated
    94,128       12.15       34,863       4.50       N/A       N/A  
Bank
    86,339       11.49       33,824       4.50       48,857       6.50  
                                                 
Tier I capital (to average assets):
                                               
Consolidated
    94,128       9.35       40,281       4.00       N/A       N/A  
Bank
    86,339       8.64       39,962       4.00       49,952       5.00  
 
 
 
Capital levels
 
 
 
Actual
 
 
Minimum required
 
 
Well capitalized
 
As of December 31, 2015
 
Amount
 
 
Ratio
 
 
Amount
 
 
Ratio
 
 
Amount
 
 
Ratio
 
Total risk-based capital (to risk-weighted assets):
                                               
Consolidated
  $ 98,432       12.58 %   $ 62,613       8.00 %   $ 78,266       10.00 %
Bank
    91,091       11.97       60,874       8.00       76,093       10.00  
                                                 
Tier I capital (to risk-weighted assets):
                                               
Consolidated
    90,819       11.60       46,960       6.00       46,960       6.00  
Bank
    83,478       10.97       45,656       6.00       60,874       8.00  
                                                 
Common equity tier 1 capital (to risk-weighted assets):
                                               
Consolidated
    90,819       11.60       35,220       4.50       N/A       N/A  
Bank
    83,478       10.97       34,242       4.50       49,460       6.50  
                                                 
Tier I capital (to average assets):
                                               
Consolidated
    90,819       8.87       40,934       4.00       N/A       N/A  
Bank
    83,478       8.22       40,632       4.00       50,790       5.00