QNB Corp. (QNBC) Stock Analysis

Why this analysis is different

• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

QNB Corp. (QNBC) Financial Services Profile

QNB Corp., through its QNB Bank subsidiary, provides a full range of community banking services, including diverse deposit and loan products, retail brokerage, and digital banking, primarily serving Bucks, Montgomery, and Lehigh counties in southeastern Pennsylvania. Founded in 1877, the institution maintains a localized market position with a focus on comprehensive client financial needs.

What Is the Investment Thesis for QNBC?

QNB Corp. presents as a regional community banking institution with a stable operational foundation, evidenced by a P/E ratio of 11.58 and a profit margin of 14.9%. The company's dividend yield of 3.52% indicates a commitment to shareholder returns. Its established presence since 1877 and twelve community banking locations in southeastern Pennsylvania underscore a deep understanding of its local market. Key value drivers include its diversified product portfolio, encompassing a wide range of deposit and loan products, alongside ancillary services like retail brokerage and insurance, which contribute to multiple revenue streams. Growth catalysts for QNBC are primarily tied to economic expansion within its core operating counties—Bucks, Montgomery, and Lehigh—driving demand for commercial and residential lending. Continued adoption and enhancement of its digital banking platforms are crucial for retaining and attracting tech-savvy customers, potentially expanding its reach without significant physical expansion costs. The company's ability to effectively manage its net interest margin in a dynamic interest rate environment will be a critical determinant of future profitability. Risks include intense competition from larger regional and national banks, as well as fintech disruptors, and regulatory changes impacting the banking sector. Its relatively small market capitalization of $178M suggests lower liquidity and potential volatility.

Based on FMP financials and quantitative analysis

QNBC Key Highlights

Market Capitalization: QNB Corp. maintains a market capitalization of $178M, indicating its position as a smaller regional financial institution.

• Price-to-Earnings (P/E) Ratio: The company trades at a P/E ratio of 11.58, which provides insight into how the market values its earnings relative to its share price.
• Profitability: QNBC reported a profit margin of 14.9%, reflecting the percentage of revenue translated into net income after all expenses.
• Gross Margin: The company achieved a gross margin of 58.0%, demonstrating its efficiency in managing the direct costs associated with its financial services.
• Dividend Yield: Shareholders benefit from a dividend yield of 3.52%, signifying a portion of the company's earnings distributed to investors.

Who Are QNBC's Competitors?

QNBC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are QNBC's Key Strengths?

Established local presence and strong community ties in southeastern Pennsylvania since 1877.

• Diversified financial product portfolio catering to both commercial and individual clients.
• Solid profitability with a 14.9% profit margin and a 3.52% dividend yield.
• Comprehensive digital banking capabilities enhancing customer convenience.

What Are QNBC's Weaknesses?

Relatively small market capitalization of $178M, potentially leading to lower liquidity.

• Geographic concentration in three Pennsylvania counties, limiting broader market diversification.
• Potential for higher operating costs compared to larger, more scaled financial institutions.
• Reliance on traditional banking models amidst increasing fintech disruption.

What Could Drive QNBC Stock Higher?

QNBC catalyst: **Ongoing:** Continued economic growth in Bucks, Montgomery, and Lehigh counties, driving increased demand for commercial and residential loans.

• **Upcoming:** Strategic enhancements to digital banking platforms, potentially attracting new customers and improving operational efficiency.
• **Ongoing:** Effective management of net interest margin in response to changing interest rate environments, positively impacting profitability.
• **Upcoming:** Expansion or optimization of wealth management and financial advisory services, contributing to non-interest income growth.
• **Ongoing:** Sustained dividend payments, reinforcing shareholder confidence and attracting income-focused investors.

What Are the Key Risks for QNBC?

Financial-distress signal — its Altman Z-Score of 0.20 sits in the distress zone (elevated bankruptcy risk).

• **Potential:** Intense competition from larger regional and national banks, as well as agile fintech companies, potentially eroding market share.
• **Ongoing:** Sensitivity to interest rate fluctuations, which can compress net interest margins if not managed effectively.
• **Potential:** Economic downturns or localized recessions in its core operating counties, leading to increased loan defaults and reduced demand for financial services.
• **Ongoing:** Regulatory changes and increased compliance costs within the banking sector, impacting operational expenses and profitability.
• **Potential:** Lower liquidity and higher price volatility due to its small market capitalization and trading on the OTC Other tier.

What Are the Growth Opportunities for QNBC?

• **Expansion of Digital Banking Services**: The digital banking market continues to grow significantly, driven by consumer demand for convenience and accessibility. QNB Corp. can capitalize on this by further enhancing its internet and mobile banking platforms, electronic bill payment, and remote check deposit capabilities. Investing in user experience, adding new features like personal financial management tools, or integrating with third-party fintech solutions could attract a younger demographic and expand its customer base beyond physical branch proximity. The global digital banking market size was valued at approximately $10 trillion in 2023 and is projected to grow substantially, offering QNBC a clear avenue for operational efficiency and customer acquisition over the next 3-5 years.
• **Targeted Commercial Lending in Southeastern Pennsylvania**: QNBC's established presence in Bucks, Montgomery, and Lehigh counties provides a strong foundation for expanding its commercial and industrial financing. These counties represent dynamic local economies with ongoing business development. By leveraging its local relationships and understanding of regional economic trends, QNBC can strategically increase its market share in commercial mortgages, construction, and land development loans. Focusing on specific industry niches or small to medium-sized enterprises (SMEs) within these areas, potentially offering tailored financial solutions, could drive significant loan portfolio growth over the next 2-4 years, capitalizing on local economic expansion.
• **Growth in Residential Mortgage and Home Equity Market Share**: The housing market in southeastern Pennsylvania, while subject to national trends, maintains consistent demand. QNB Corp. can strategically grow its 1-4 family home mortgages, home equity loans, and lines of credit by offering competitive rates, streamlined application processes, and personalized service. Developing targeted marketing campaigns within its operating counties, potentially partnering with local real estate agents or developers, could increase its visibility and capture a larger share of the local residential lending market. This growth opportunity is ongoing, with potential for increased revenue generation over the next 3-5 years, especially as interest rate environments stabilize.
• **Enhancement and Promotion of Retail Brokerage and Financial Advisory Services**: With an aging population and increasing wealth accumulation in its service areas, there is a growing demand for sophisticated financial planning and investment management. QNB Corp. already offers retail brokerage and financial advisory services. By expanding the range of investment products, enhancing advisory capabilities, and cross-selling these services to existing deposit and loan customers, QNBC can deepen customer relationships and generate non-interest income. This segment often provides higher-margin revenue and can contribute to customer loyalty, representing a long-term growth opportunity over the next 5-7 years as wealth management needs evolve.
• **Strategic Optimization of Branch Network and Customer Experience**: While digital banking is crucial, physical branches remain vital for community banks. QNBC can optimize its twelve community banking locations by modernizing existing branches, potentially consolidating underperforming ones, or strategically opening new, smaller "smart branches" in underserved areas within its target counties. Focusing on enhancing the in-branch customer experience through technology integration and highly trained staff can reinforce its community bank identity. This ongoing operational optimization can lead to improved efficiency, reduced costs, and enhanced customer satisfaction, driving sustainable growth and competitive advantage over the next 2-5 years.

What Are QNBC's Competitive Advantages?

• **Deep Local Market Penetration**: Over a century of operation since 1877 has fostered strong community ties and brand recognition in Bucks, Montgomery, and Lehigh counties.
• **Relationship-Based Banking**: As a community bank, QNBC emphasizes personalized service and local decision-making, differentiating it from larger, more impersonal national banks.
• **Diversified Product Offering**: A comprehensive suite of deposit, loan, brokerage, and insurance products creates a "one-stop shop" for local clients, enhancing customer stickiness.
• **Established Branch Network**: Twelve physical locations provide accessibility and a tangible presence, which remains valuable for certain customer segments and complex financial needs.

What Does QNBC Do?

QNB Corp. functions as the parent entity for QNB Bank, a long-standing financial institution that delivers a comprehensive array of financial services to both commercial and individual clients. Established in 1877 and headquartered in Quakertown, Pennsylvania, the company has evolved from a traditional local bank into a diversified financial services provider. Its core offerings include a wide selection of deposit accounts, such as money market, interest-bearing checking, club, traditional statement savings, and online savings options, alongside time-based investments like certificates of deposit and individual retirement accounts. Beyond deposits, QNB Corp. provides an extensive portfolio of loan products designed to meet various client needs. These encompass commercial and industrial financing, mortgages for both commercial and residential properties, construction and land development loans, and indirect lease financing. For individual homeowners, the bank offers 1-4 family home mortgages, home equity loans and lines of credit, and a variety of consumer loans. The company has also expanded its service capabilities to include retail brokerage and financial advisory services, credit cards, insurance products, and merchant processing solutions. In response to evolving customer preferences and technological advancements, QNB Corp. has invested in modern banking infrastructure, offering ATM and debit card facilities, alongside advanced digital banking features. These digital offerings include internet and mobile banking, electronic bill payment, and remote check deposit capabilities, enhancing accessibility and convenience for its clientele. As of December 31, 2021, QNB Corp. maintained a physical presence through twelve comprehensive community banking locations strategically situated across Bucks, Montgomery, and Lehigh counties in southeastern Pennsylvania, solidifying its local market footprint and commitment to community-centric financial services.

What Products and Services Does QNBC Offer?

• Offers a full spectrum of financial services to commercial and individual clients.
• Provides diverse deposit accounts, including money market, checking, savings, and online savings.
• Manages time-based investments such as certificates of deposit and individual retirement accounts.
• Extends various loan products, including commercial, residential, construction, and consumer loans.
• Offers indirect lease financing for businesses.
• Provides home equity loans and lines of credit.
• Includes retail brokerage and financial advisory services.
• Supplies credit cards, insurance products, and merchant processing.
• Facilitates ATM and debit card services.
• Delivers advanced digital banking features like internet/mobile banking, electronic bill payment, and remote check deposit.

How Does QNBC Make Money?

• Generates net interest income from the spread between interest earned on loans and investments and interest paid on deposits.
• Earns non-interest income through fees from services like retail brokerage, financial advisory, credit cards, merchant processing, and ATM usage.
• Manages a diversified loan portfolio, including commercial, residential, construction, and consumer loans, to generate interest revenue.
• Attracts and retains customer deposits, which serve as a primary funding source for lending activities.
• Provides insurance products and indirect lease financing to diversify revenue streams beyond traditional banking.

What Industry Does QNBC Operate In?

QNB Corp. operates within the highly competitive Banks - Regional industry, a segment of the broader Financial Services sector characterized by its focus on local communities and small to medium-sized businesses. This industry is currently navigating a landscape shaped by evolving interest rate environments, increasing digital transformation, and stringent regulatory oversight. Regional banks like QNBC typically differentiate themselves through personalized customer service, deep local market knowledge, and community engagement, contrasting with the scale and broader reach of national banks. The competitive landscape includes other community banks, larger regional players, and increasingly, non-bank financial technology (fintech) companies. Market trends indicate a growing demand for convenient digital banking solutions, while traditional branch networks remain important for complex transactions and relationship building. QNBC, with its twelve locations in southeastern Pennsylvania, positions itself as a community-centric provider, aiming to capture market share by serving the specific financial needs of its local clientele.

Who Are QNBC's Key Customers?

• **Commercial Clients**: Small to medium-sized businesses seeking commercial and industrial loans, commercial mortgages, construction financing, and merchant processing services.
• **Individual Clients**: Retail customers requiring deposit accounts, residential mortgages, home equity loans, consumer loans, and digital banking solutions.
• **Investors**: Individuals seeking retail brokerage and financial advisory services, as well as individual retirement accounts and certificates of deposit.
• **Local Community Members**: Residents and businesses within Bucks, Montgomery, and Lehigh counties in southeastern Pennsylvania.

QNB Corp.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.20 places it in the distress zone, a signal of elevated financial risk.

Return on equity for QNB Corp. stands at 11.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.7%, showing how much profit it generates from its asset base. QNBC trades at a trailing price-to-earnings ratio of 11.46, below the Financial Services sector average of ~18x. Its free cash flow yield is 9.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.65 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 8.7%, the inverse of the P/E and a quick read on earnings relative to price.

QNB Corp. (QNBC) Valuation Context

Valued at $178M, QNBC is classified as a micro-cap stock. Relative to its peer group, QNBC's quantitative score of 53/100 is below the peer average of 92/100.

QNBC Revenue & Earnings Trend

In Q2 2026, QNBC generated $26.6M in top-line revenue, marking a sequential increase of 18.2%. The company recorded net income of $3.0M, with diluted EPS of $0.60. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Financial Services. Across the four most recent quarters, QNBC averaged $0.84 in diluted EPS.

Company Profile

QNB Corp. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Quakertown, US. The company is led by CEO David W. Freeman. QNBC has traded publicly since 2003.

QNBC Financials

QNBC Latest News

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QNBC Analyst Consensus

QNBC MoonshotScore

Common Questions About QNBC (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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