Note 19 - Parent Company Financial Information

12 Months Ended

Dec. 31, 2019

Note 19 - Parent Company Financial Information

Condensed financial statements of QNB Corp. only:

Balance Sheets
December 31,	2019		2018
Assets
Cash and cash equivalents	$	3,616	$	72
Investment equity securities		9,164		9,421
Investment in subsidiary		108,694		94,477
Other assets		27		379
Total assets	$	121,501	$	104,349

Liabilities
Other liabilities	$	784	$	1

Shareholders' equity		120,717		104,348
Total liabilities and shareholders' equity	$	121,501	$	104,349

Statements of Income
Year ended December 31,	2019		2018			2017
Dividends from subsidiary	$	3,820	$	4,027		$	3,382
Interest, dividend and other income		292		266			183
Securities gains (losses)		1,781		(79	)		1,477
Net unrealized gain (loss) on investment equity securities		770		(336	)		—
Total income		6,663		3,878			5,042
Expenses		420		513			301
Income before applicable income taxes and equity in undistributed income of subsidiary		6,243		3,365			4,741
Provision (benefit) for income taxes		714		(256	)		554
Income before equity in undistributed income of subsidiary		5,529		3,621			4,187
Equity in undistributed income of subsidiary		6,828		7,714			4,102
Net income	$	12,357	$	11,335		$	8,289

Statements of Comprehensive Income	(in thousands)
Year ended December 31,	2019						2018									2017
	Before tax amount		Tax expense (benefit)		Net of tax amount		Before tax amount			Tax expense (benefit)			Net of tax amount			Before tax amount			Tax expense (benefit)			Net of tax amount
Net income	$	15,207	$	2,850	$	12,357	$	12,892		$	1,557		$	11,335		$	14,189		$	5,900		$	8,289
Other comprehensive income gain (loss):
Net unrealized holding gains (losses) on securities:
Unrealized holding gains (losses) arising during the period		9,327		1,959		7,368		(3,156	)		(663	)		(2,493	)		1,002			341			661
Reclassification adjustment for losses (gains) included in net income		26		5		21		(3	)		(1	)		(2	)		(1,500	)		(510	)		(990	)
		9,353		1,964		7,389		(3,159	)		(664	)		(2,495	)		(498	)		(169	)		(329	)
Total comprehensive income	$	24,560	$	4,814	$	19,746	$	9,733		$	893		$	8,840		$	13,691		$	5,731		$	7,960

Statements of Cash Flows
Year ended December 31,	2019			2018			2017
Operating Activities
Net income	$	12,357		$	11,335		$	8,289
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income from subsidiary		(6,828	)		(7,714	)		(4,102	)
Net securities (gains) losses		(1,781	)		79			(1,477	)
Net unrealized (gain) loss on investment equity securities		(770	)		336			—
Stock-based compensation expense		118			117			102
Accretion of discounts on investment securities		(45	)		—			—
Increase (decrease) in other liabilities		762			(403	)		335
Decrease (increase) in other assets		126			(147	)		(3	)
Deferred income tax provision (benefit)		247			(158	)		98
Net cash provided by operating activities		4,186			3,445			3,242
Investing activities
Purchase of investment equity securities		(9,030	)		(9,763	)		(9,998	)
Purchase of investment securities available-for-sale		(8,730	)		—			—
Proceeds from sale of investment equity securities		11,838			4,902			14,422
Proceeds from sale of investment securities available-for-sale		8,775			—			—
Net cash provided (used) by investing activities		2,853			(4,861	)		4,424
Financing activities
Cash dividend paid		(4,086	)		(3,863	)		(3,731	)
Proceeds from issuance of common stock		591			684			672
Net cash used by financing activities		(3,495	)		(3,179	)		(3,059	)
Increase (decrease) cash and cash equivalents		3,544			(4,595	)		4,607
Cash and cash equivalents at beginning of year		72			4,667			60
Cash and cash equivalents at end of year	$	3,616		$	72		$	4,667