QNB (QNBC) risk factors, 2025 10-K

QNB's 2025 10-K lists 17 risk factors. No earlier 10-K is on file to compare against, so the most company-specific risks are read out below.

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Risk factors listed
170 groups
Section length
4k wordsItem 1A

What dominates the section

  • Interest-rate spreads, borrower credit quality, and economic conditions in Bucks, Lehigh, and Montgomery Counties drive core banking risk.
  • Commercial real estate concentration and reliance on FHLB wholesale funding could constrain lending, liquidity, or capital.
  • Technology vendors, cybersecurity, securities valuations, and an $18.325 million deferred tax asset create additional financial risks.

The risks most specific to QNB

  • High concentrations of commercial real estate loans ("CRE loans") could subject the Bank to increased regulatory scrutiny and directives, which could force us to preserve or raise capital and/or limit future commercial lending activities

    High commercial real estate loan concentrations could trigger regulatory scrutiny, capital requirements, or limits on future commercial lending.

  • If we lose the availability of wholesale funding we may be unable to support interest-earning asset growth, which could adversely impact our operating results and liquidity

    Losing FHLB borrowings and other wholesale funding could restrict support for loan growth, deposit withdrawals, and liquidity needs.

  • Our assets at December 31, 2024 included a deferred tax asset and we may not be able to realize the full benefit of that asset

    QNB may be unable to realize the full $18.325 million deferred tax asset without sufficient qualifying taxable income.

  • A deterioration in regional or national economic conditions may adversely affect our financial condition and results of operations

    A downturn in Bucks, Lehigh, or Montgomery Counties could reduce deposits and demand from qualified borrowers.

  • We are subject to credit risk in connection with our lending activities, and our financial condition and results of operations may be negatively affected by economic conditions and other factors that could adversely affect our customers

    Borrower defaults or insufficient collateral could produce credit losses that materially hurt QNB’s financial condition and results.

  • Our net interest income, net income and results of operations are sensitive to fluctuations in interest rates

    Changes in interest rates could compress the spread between yields on earning assets and costs of deposits and other liabilities.

  • Our results of operations may be adversely affected by impairment charges relating to our debt securities

    Impairment charges on government, mortgage-backed, municipal, and corporate debt securities could reduce operating results.

  • A disruption in components of our business infrastructure resulting from financial or technological difficulties of our third- party vendors on which we rely could adversely affect our business

    Failures or capacity problems at third-party providers of Internet, software, network, or communications infrastructure could disrupt customer services.

  • Our failure to properly or timely utilize effective technologies to deliver our products and services, or a systems failure or breach of network security with respect to our information systems could adversely affect our business

    Technology failures, network-security breaches, or slow adoption of Internet and mobile banking could impair operations and competitiveness.

All 17 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Our net interest income, net income and results of operations are sensitive to fluctuations in interest rates
  2. 02We are subject to credit risk in connection with our lending activities, and our financial condition and results of operations may be negatively affected by economic conditions and other factors that could adversely affect our customers
  3. 03A deterioration in regional or national economic conditions may adversely affect our financial condition and results of operations
  4. 04We face significant competition from other banks and financial institutions in our market area, many of which are larger in terms of asset size and market capitalization
  5. 05Our results of operations may be adversely affected by impairment charges relating to our debt securities
  6. 06Our results of operations may be adversely affected by fair value declines in our investments in equity securities
  7. 07the KEEP Home Energy Loan Program, designed to assist Pennsylvania homeowners in reducing their energy costs
  8. 08Our assets at December 31, 2024 included a deferred tax asset and we may not be able to realize the full benefit of that asset
  9. 09A disruption in components of our business infrastructure resulting from financial or technological difficulties of our third- party vendors on which we rely could adversely affect our business
  10. 10Our failure to properly or timely utilize effective technologies to deliver our products and services, or a systems failure or breach of network security with respect to our information systems could adversely affect our business
  11. 11Our accounting policies and methods are fundamental to how we record and report our financial condition and results of operations. From time to time the FASB changes the financial accounting and reporting standards that govern the preparation of our financial statements
  12. 12We operate in a highly regulated environment and are subject to examination and supervision by bank regulatory agencies, which could have an adverse impact on our operations or increase the cost of our operations
  13. 13High concentrations of commercial real estate loans ("CRE loans") could subject the Bank to increased regulatory scrutiny and directives, which could force us to preserve or raise capital and/or limit future commercial lending activities
  14. 14If we lose the availability of wholesale funding we may be unable to support interest-earning asset growth, which could adversely impact our operating results and liquidity
  15. 15Our disclosure controls and procedures and our internal control over financial reporting may not achieve their intended objectives
  16. 16We may not be able to attract and retain highly qualified personnel to execute our business strategy
  17. 17Acts of terrorism and other external events, including natural disasters, national or global health emergencies, and events of armed conflict in other countries, could impact our ability to do business or otherwise adversely affect our business, operations or financial condition

Other QNB 10-Ks

  • 2026 10-K risk factors

    18 risks, 1 new, 1 reworded since the prior year. Pending Victory and Victory Bank acquisition adds integration, retention, customer, geographic expansion, and unknown-liability risks.

    Filed Mar 16, 2026

About this page

Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.

QNB (QNBC) Risk Factors: 2025 10-K, What Changed | Gloomberb