QNB Corp. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. The company reported net income for the fourth quarter of 2013 of $1,962,000, or $0.60 per share on a diluted basis compared to net income of $2,125,000, or $0.66 per share on a diluted basis, for the same period in 2012. Net interest income for the quarter ended December 31, 2013 totaled $6,430,000, a decrease of $165,000, or 2.5%, from the same period in 2012. Net interest income continues to be negatively impacted by declining yields on earning assets resulting from the prolonged low interest rate environment and the extremely competitive interest rate environment for loans. Partially offsetting the impact of declining asset yields on net interest income was the growth in earning assets, primarily loans. For the quarter, interest income was $7,606,000 against $8,015,000 for the same period a year ago. Income before income taxes was $2,481,000 against $2,675,000 for the same period a year ago. Return on average total assets was 0.83% against 0.92% for the same period a year ago. Return on average stockholders' equity was 9.90% against 11.63% for the same period a year ago.

For the year ended December 31, 2013, net income was $8,392,000, or $2.57 per share on a diluted basis. This compares to 2012 net income of $9,175,000, or $2.86 per share on a diluted basis. For the year 2013, the rate of return on average assets and average shareholders' equity was 0.91% and 10.95%, respectively, compared with 1.03% and 13.07%, respectively, for the year 2012. The decrease in 2013 earnings versus 2012 was mainly the result of a decline in the net interest margin from 3.36% to 3.09%. For the year ended December 31, 2013 net interest income was $25,551,000, a decrease of $1,349,000, or 5.0%, from the $26,900,000 reported for 2012. For the year, interest income was $30,584,000 against $33,348,000 for the same period a year ago. Income before income taxes was $10,738,000 against $11,784,000 for the same period a year ago. Book value per share as at December 31, 2013 was $23.12 against $24.05 at the same period a year ago.

For the fourth quarter, the company recorded net loan charge-offs of $220,000 compared to $245,000 a year ago.