QNB (QNBC) 10-K 14 Mar 19 2018 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 01, 2019	Jun. 30, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	QNB CORP
Trading Symbol	qnbc
Document Type	10-K
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		3,487,089
Entity Public Float			$ 147,669,582
Amendment Flag	false
Entity Central Index Key	0000750558
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 12,888	$ 10,793
Interest-bearing deposits in banks	570	5,538
Total cash and cash equivalents	13,458	16,331
Investment debt securities:
Available-for-sale (amortized cost $353,249 and $380,440)	344,221	374,570
Investment equity securities (cost of $10,079 and $5,296)	9,421	4,975
Restricted investment in bank stocks	797	1,501
Loans receivable	785,448	733,283
Allowance for loan losses	(8,834)	(7,841)
Net loans	776,614	725,442
Bank-owned life insurance	11,192	10,894
Premises and equipment, net	9,918	8,495
Accrued interest receivable	2,852	3,545
Net deferred tax assets	3,724	3,319
Other assets	3,255	3,265
Total assets	1,175,452	1,152,337
Deposits
Demand, non-interest bearing	128,615	129,212
Interest-bearing demand	304,652	297,470
Money market	78,781	84,562
Savings	279,762	257,522
Time	117,569	124,485
Time of $100 or more	106,219	100,697
Total deposits	1,015,598	993,948
Short-term borrowings	50,872	55,756
Accrued interest payable	449	384
Other liabilities	4,185	3,679
Total liabilities	1,071,104	1,053,767
Shareholders' Equity
Common stock, par value $0.625 per share; authorized 10,000,000 shares; 3,648,649 shares and 3,612,677 shares issued; 3,484,080 and 3,448,108 shares outstanding	2,280	2,258
Surplus	20,041	18,691
Retained earnings	91,635	84,183
Accumulated other comprehensive loss, net of tax	(7,132)	(4,086)
Treasury stock, at cost; 164,569 shares	(2,476)	(2,476)
Total shareholders' equity	104,348	98,570
Total liabilities and shareholders' equity	$ 1,175,452	$ 1,152,337

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Available-for-sale, amortized cost	$ 353,249	$ 380,440
Investment equity securities, cost	$ 10,079	$ 5,296
Common stock, par value (in dollars per share)	$ 0.625	$ 0.625
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	3,648,649	3,612,677
Common stock, shares outstanding (in shares)	3,484,080	3,448,108
Treasury stock, shares (in shares)	164,569	164,569

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest income
Interest and fees on loans	$ 34,939,000	$ 29,740,000	$ 25,525,000
Interest and dividends on investment securities (AFS & Equity):
Taxable	6,280,000	6,270,000	5,454,000
Tax-exempt	1,845,000	1,957,000	1,949,000
Interest on trading securities		45,000	138,000
Interest on interest-bearing balances and other interest income	136,000	90,000	171,000
Total interest income	43,200,000	38,102,000	33,237,000
Interest on deposits
Interest-bearing demand	2,226,000	1,137,000	666,000
Money market	329,000	249,000	192,000
Savings	1,657,000	1,156,000	923,000
Time	1,578,000	1,512,000	1,497,000
Time of $100 or more	1,723,000	1,373,000	1,301,000
Interest on short-term borrowings	672,000	253,000	154,000
Total interest expense	8,185,000	5,680,000	4,733,000
Net interest income	35,015,000	32,422,000	28,504,000
Provision for loan losses	1,130,000	1,400,000	30,000
Net interest income after provision for loan losses	33,885,000	31,022,000	28,474,000
Non-interest income
Total other-than-temporary impairment loss on investment securities		(80,000)	(192,000)
Net other-than temporary impairment losses on investment securities		(80,000)	(192,000)
Net unrealized loss on investment equity securities	(336,000)
Net (loss) gain on sale of investment securities	(76,000)	1,580,000	866,000
Net (loss) gain on investment securities	(412,000)	1,500,000	674,000
Net gain (loss) on trading activities		27,000	(40,000)
Fees for services to customers	1,699,000	1,668,000	1,621,000
ATM and debit card	1,895,000	1,749,000	1,651,000
Retail brokerage and advisory	370,000	436,000	603,000
Bank-owned life insurance	291,000	345,000	308,000
Merchant	326,000	345,000	334,000
Net gain on sale of loans	105,000	375,000	320,000
Loss on sale of indirect lease financing portfolio			(223,000)
Other	618,000	442,000	419,000
Total non-interest income	4,892,000	6,887,000	5,667,000
Non-interest expense
Salaries and employee benefits	14,411,000	13,121,000	12,011,000
Net occupancy	1,872,000	1,789,000	1,750,000
Furniture and equipment	2,165,000	1,859,000	1,753,000
Marketing	927,000	914,000	806,000
Third party services	1,889,000	1,608,000	1,691,000
Telephone, postage and supplies	685,000	804,000	752,000
State taxes	727,000	687,000	666,000
FDIC insurance premiums	624,000	577,000	568,000
Other	2,585,000	2,361,000	2,166,000
Total non-interest expense	25,885,000	23,720,000	22,163,000
Income before income taxes	12,892,000	14,189,000	11,978,000
Provision for income taxes	1,557,000	5,900,000	3,054,000
Net income	$ 11,335,000	$ 8,289,000	$ 8,924,000
Earnings per share - basic	$ 3.27	$ 2.42	$ 2.64
Earnings per share - diluted	3.25	2.41	2.63
Cash dividends per share	$ 1.28	$ 1.24	$ 1.20

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income, Before tax amount	$ 1,988	$ 3,978	$ 3,434	$ 3,492	$ 3,482	$ 3,494	$ 3,231	$ 3,982	$ 12,892	$ 14,189	$ 11,978
Net unrealized holding (losses) gains on securities:
Unrealized holding (losses) gains arising during the period, Before tax amount									(3,156)	1,002	(4,192)
Reclassification adjustment for gains included in net income, Before tax amount									(3)	(1,500)	(674)
Other comprehensive loss, Before tax amount									(3,159)	(498)	(4,866)
Unrealized holding (losses) gains arising during the period, Tax expense (benefit)									(663)	341	(1,426)
Reclassification adjustment for gains included in net income, Tax expense (benefit)									(1)	(510)	(229)
Other comprehensive loss, Tax expense (benefit)									(664)	(169)	(1,655)
Unrealized holding (losses) gains arising during the period, Net of tax amount									(2,493)	661	(2,766)
Reclassification adjustment for gains included in net income, Net of tax amount									(2)	(990)	(445)
Other comprehensive loss, Net of tax amount									(2,495)	(329)	(3,211)
Total comprehensive income, Before tax amount									9,733	13,691	7,112
Tax expense (benefit)	(339)	767	572	557	2,993	940	845	1,122	1,557	5,900	3,054
Total comprehensive income, Tax expense (benefit)									893	5,731	1,399
Net income	$ 2,327	$ 3,211	$ 2,862	$ 2,935	$ 489	$ 2,554	$ 2,386	$ 2,860	11,335	8,289	8,924
Total comprehensive income, Net of tax amount									$ 8,840	$ 7,960	$ 5,713

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($)		Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]		AOCI Attributable to Parent [Member]		Treasury Stock [Member]
Balance at Dec. 31, 2015		$ 90,443,000	$ 2,203,000	$ 15,973,000	$ 75,289,000		$ (546,000)		$ (2,476,000)
Balance (in shares) at Dec. 31, 2015			3,359,794
Net income		8,924,000			8,924,000
Other comprehensive loss, net of tax		(3,211,000)					(3,211,000)
Cash dividends declared		(4,066,000)			(4,066,000)
Stock issued in connection with dividend reinvestment and stock purchase plan		983,000	$ 19,000	964,000
Stock issued in connection with dividend reinvestment and stock purchase plan (in shares)			31,595
Stock issued for employee stock purchase plan		$ 81,000	$ 2,000	79,000
Stock issued for employee stock purchase (in shares)		2,932	2,932
Stock issued for options exercised		$ 308,000	$ 11,000	297,000
Stock issued for options exercised (in shares)		22,700	17,380
Tax benefit of stock options exercised		$ 17,000		17,000
Stock-based compensation expense		88,000		88,000
Balance at Dec. 31, 2016		93,567,000	$ 2,235,000	17,418,000	80,147,000		(3,757,000)		(2,476,000)
Balance (in shares) at Dec. 31, 2016			3,411,701
Net income		8,289,000			8,289,000
Other comprehensive loss, net of tax		(329,000)					(329,000)
Cash dividends declared		(4,253,000)			(4,253,000)
Stock issued in connection with dividend reinvestment and stock purchase plan		973,000	$ 16,000	957,000
Stock issued in connection with dividend reinvestment and stock purchase plan (in shares)			25,048
Stock issued for employee stock purchase plan		$ 91,000	$ 2,000	89,000
Stock issued for employee stock purchase (in shares)		2,660	2,660
Stock issued for options exercised		$ 130,000	$ 5,000	125,000
Stock issued for options exercised (in shares)		13,125	8,699
Stock-based compensation expense		$ 102,000		102,000
Balance at Dec. 31, 2017		$ 98,570,000	$ 2,258,000	18,691,000	84,183,000		(4,086,000)		(2,476,000)
Balance (in shares) at Dec. 31, 2017		3,448,108	3,448,108
Net income		$ 11,335,000			11,335,000
Other comprehensive loss, net of tax		(2,495,000)					(2,495,000)
Cash dividends declared		(4,434,000)			(4,434,000)
Equity securities fair value reclassification	[1]				(254,000)		254,000
ASU 2018-02 stranded tax reclassification		805,000			805,000	[2]	(805,000)	[2]
Stock issued in connection with dividend reinvestment and stock purchase plan		979,000	$ 14,000	965,000
Stock issued in connection with dividend reinvestment and stock purchase plan (in shares)			23,302
Stock issued for employee stock purchase plan		$ 117,000	$ 2,000	115,000
Stock issued for employee stock purchase (in shares)		2,963	2,963
Stock issued for options exercised		$ 159,000	$ 6,000	153,000
Stock issued for options exercised (in shares)		13,850	9,707
Stock-based compensation expense		$ 117,000		117,000
Balance at Dec. 31, 2018		$ 104,348,000	$ 2,280,000	$ 20,041,000	$ 91,635,000		$ (7,132,000)		$ (2,476,000)
Balance (in shares) at Dec. 31, 2018		3,484,080	3,484,080
[1]	Refer to Note 1, ASU 2016-01
[2]	Refer to Note 1, ASU 2018-02

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retained Earnings [Member]
Cash dividends declared, per share (in dollars per share)	$ 1.28	$ 1.24	$ 1.20

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Activities
Net income	$ 11,335	$ 8,289	$ 8,924
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	990	821	891
Provision for loan losses	1,130	1,400	30
Net loss (gain) on investment debt and equity securities	76	(1,500)	(674)
Net unrealized loss on equity securities	336
Net gain on sale of other real estate owned, repossessed assets and premises and equipment	(1)	(1)	(2)
Net gain on sale of loans	(105)	(276)	(320)
Loss on sale of indirect lease financing portfolio			223
Gain on sale of loan held for investment		(99)
Proceeds from sales of residential mortgages held-for-sale	4,478	9,041	9,204
Origination of residential mortgages held-for-sale	(4,373)	(7,976)	(8,686)
Income on bank-owned life insurance	(291)	(345)	(308)
Stock-based compensation expense	117	102	88
Net decrease in trading securities		3,596	593
Deferred income tax provision (benefit)	258	2,322	(145)
Net (decrease) increase in income taxes payable	(230)	(154)	48
Net decrease (increase) in accrued interest receivable	693	(417)	(566)
Amortization of mortgage servicing rights and change in valuation allowance	65	82	75
Net amortization of premiums and discounts on investment securities	1,434	1,694	1,846
Net increase in accrued interest payable	65	49	5
Decrease (increase) in other assets	73	(887)	(363)
Increase in other liabilities	601	421	469
Net cash provided by operating activities	16,651	16,162	11,332
Investing Activities
Proceeds from payments, maturities and calls of investment debt securities available-for-sale	48,074	52,994	107,278
Proceeds from maturities of investment debt securities held-to-maturity			147
Proceeds from the sale of investment debt securities available-for-sale	4,159	28,087	25,436
Purchases of investment debt securities available-for-sale	(26,473)	(75,267)	(167,616)
Proceeds from the sale of equity securities	4,902	14,422	7,137
Purchases of equity securities	(9,763)	(9,998)	(7,327)
Proceeds from redemption of investment in restricted bank stock	10,320	6,318	1,482
Purchase of restricted bank stock	(9,616)	(6,802)	(1,991)
Net increase in loans	(52,302)	(101,157)	(26,567)
Proceeds from sale of indirect lease financing portfolio held for investment			8,345
Net purchases of premises and equipment	(2,413)	(634)	(317)
Proceeds from sale of loans held for investment		99
Redemption of bank-owned life insurance		754
Proceeds from sales of other real estate owned and repossessed assets	1	2	2
Net cash used in investing activities	(33,111)	(91,182)	(53,991)
Financing Activities
Net (decrease) increase in non-interest bearing deposits	(597)	10,202	20,467
Net increase in interest-bearing deposits	22,247	70,391	3,102
Net (decrease) increase in short-term borrowings	(4,884)	3,096	15,497
Tax benefit from exercise of stock options			17
Cash dividends paid, net of reinvestment	(3,863)	(3,731)	(3,556)
Proceeds from issuance of common stock	684	672	862
Net cash provided by financing activities	13,587	80,630	36,389
Increase (decrease) in cash and cash equivalents	(2,873)	5,610	(6,270)
Cash and cash equivalents at beginning of year	16,331	10,721	16,991
Cash and cash equivalents at end of period	13,458	16,331	10,721
Supplemental Cash Flow Disclosures
Interest paid	8,120	5,631	4,728
Income taxes paid	$ 1,529	$ 3,731	$ 3,132

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of Significant Accounting Policies	Note 1 - Summary of Significant Accounting Policies Business QNB Corp. (the “Company”), through its wholly-owned subsidiary, QNB Bank (the “Bank”), has been serving the residents and businesses of Bucks, Lehigh, and Montgomery counties in Pennsylvania since 1877. The Bank is a locally managed community bank that provides a full range of commercial, retail banking and retail brokerage services. The Bank encounters vigorous competition for market share in the communities it serves from bank holding companies, other community banks, thrift institutions, credit unions and other non-bank financial organizations such as mutual fund companies, insurance companies and brokerage companies. The Company manages its business as a single operating segment. The Bank is a Pennsylvania chartered commercial bank. The Company and the Bank are subject to regulations of certain state and Federal agencies. These regulatory agencies periodically examine the Company and the Bank for adherence to laws and regulations. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. The consolidated entity is referred to herein as “QNB”. All significant inter-company accounts and transactions have been eliminated in the consolidated financial statements. Tabular information, other than share and per share data, is presented in thousands of dollars. Certain prior period amounts have been reclassified to conform with the current year’s presentation. Use of Estimates These statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and predominant practices within the banking industry. The preparation of these consolidated financial statements requires QNB to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. QNB evaluates estimates on an on-going basis. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the determination of the valuation of other real estate owned, the fair value of financial instruments, other-than-temporary impairment of investment securities, the determination of impairment of restricted bank stock and the valuation of deferred tax assets and income taxes. QNB bases its estimates on historical experience and various other factors and assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within Bucks, Montgomery and Lehigh Counties in southeastern Pennsylvania. Note 4 discusses the types of investment securities in which the Company invests. Note 5 discusses the types of lending in which the Company engages. The Company does not have any significant concentrations to any one industry or customer. Although the Company has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by the region’s economy. Cash and Cash Equivalents For purposes of the statement of cash flows, cash and cash equivalents consist of cash on hand, cash items in process of collection, amounts due from banks, interest-bearing deposits in the Federal Reserve Bank and other banks and Federal funds sold. QNB maintains a portion of its interest-bearing deposits at various commercial financial institutions. At times, the balances exceed the FDIC insured limits. Trading Securities The Company engages in trading activities for its own account. Interest and dividends are included in interest income. Debt and equity securities that are bought and held principally for the purpose of selling in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Investment Securities Investment debt securities that QNB has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Interest is included in interest income. Debt securities not classified as either held-to-maturity securities or trading securities are classified as available-for-sale debt securities and reported at fair value, with unrealized gains and losses, net of tax, excluded from earnings and reported in other comprehensive income or loss, a separate component of shareholders’ equity. Management determines the appropriate classification of securities at the time of purchase. Available-for-sale debt securities include securities that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in credit ratings, changes in market interest rates and related changes in the securities’ prepayment risk or to meet liquidity needs. Premiums and discounts on debt securities are recognized in interest income using a constant yield method. Gains and losses on sales of available-for-sale securities are recorded on the trade date and are computed on the specific identification method and included in non-interest income. Equity investments with readily determinable fair values are measured at fair value. Beginning January 1, 2018, the changes in fair value are recognized in net income. Dividends are included in interest income. Other-than-Temporary Impairment of Investment Securities Securities are evaluated periodically to determine whether a decline in their value is other-than-temporary. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other-than-temporary. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support realizable value equal to or greater than carrying value of the investment. For equity securities, once a decline in value is determined to be other-than-temporary, the value of the equity security is reduced to fair value and a corresponding charge to earnings is recognized. Temporary improvements in the fair value on equity securities with an OTTI change would not be recognized. The Company follows the accounting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320-10 as it relates to the recognition and presentation of other-than-temporary impairment (“OTTI”). This accounting guidance specifies that (a) if a company does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held to maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the non-credit portion of a previous other-than-temporary impairment would be amortized prospectively over the remaining life of the security based on the timing of future estimated cash flows of the security. Restricted Investment in Bank Stock Restricted bank stock is comprised of restricted stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) in the amount of $785,000, the Atlantic Community Bankers Bank in the amount of $12,000 and VISA Class B stock with a carrying cost of $0 at December 31, 2018. Federal law requires a member institution of the FHLB to hold stock of its district bank according to a predetermined formula. These restricted securities are carried at cost. The Bank owns 6,502 shares of Visa Class B stock, which was necessary to participate in Visa services in support of the Bank’s credit card, debit card, and related payment programs (permissible activities under banking regulations) as a member institution. Following the resolution of Visa’s covered litigation, shares of Visa’s Class B stock will be converted to Visa Class A shares using a conversion factor (1.6298 as of December 31, 2018), which is periodically adjusted to reflect VISA’s ongoing litigation costs. There is a very limited market for this stock, as only current owners of Class B shares are permitted to transact in Class B. Due to the lack of orderly trades and public information of such trades, Visa Class B does not have a readily determinable fair value. These restricted investments are carried at cost and evaluated for OTTI periodically. As of December 31, 2018, there was no OTTI associated with these shares. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the principal amount outstanding, net of deferred loan fees and costs. Interest income is accrued on the principal amount outstanding. Loan origination and commitment fees and related direct costs are deferred and amortized to income over the term of the respective loan and loan commitment period as a yield adjustment. Loans held-for-sale consist of residential mortgage loans and are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recognized through a valuation allowance charged to income. Gains and losses on residential mortgages held-for-sale are included in non-interest income. Non-Performing Assets Non-performing assets are comprised of accruing loans past due 90 days or more, non-accrual loans and investment securities, restructured loans, other real estate owned and repossessed assets. Non-accrual loans and investment securities are those on which the accrual of interest has ceased. Loans are placed on non-accrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and collateral is insufficient to cover principal and interest. Interest accrued, but not collected at the date a loan is placed on non-accrual status, is reversed and charged against interest income. Subsequent cash receipts are applied either to the outstanding principal or recorded as interest income, depending on management’s assessment of the ultimate collectability of principal and interest. Loans are returned to an accrual status when the borrower’s ability to make periodic principal and interest payments has returned to normal (i.e. brought current with respect to principal or interest or restructured) and the paying capacity of the borrower and/or the underlying collateral is deemed sufficient to cover principal and interest. From time to time, QNB may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers that may be experiencing financial difficulties. A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions may include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates to less than the current market rate for new obligations with similar risk. Loans classified as TDRs are considered non-performing and are also designated as impaired. Accounting for impairment in the performance of a loan is required when it is probable that all amounts, including both principal and interest, will not be collected in accordance with the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, at the loan’s observable market price or the fair value of the collateral if the loans are collateral dependent. Impairment criteria are applied to the loan portfolio exclusive of smaller homogeneous loans such as residential mortgage and consumer loans which are evaluated collectively for impairment. Loans are fully charged-off or charged down to net realizable value (fair value of collateral less estimated costs to sell) when deemed uncollectible due to bankruptcy or other factors, or when they reach a defined number of days past due based on loan product, industry practice, terms and other factors. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. Allowance for Loan Losses QNB maintains an allowance for loan losses, which is intended to absorb probable known and inherent losses in the outstanding loan portfolio. The allowance is reduced by actual credit losses and is increased by the provision for loan losses and recoveries of previous losses. The provisions for loan losses are charged to earnings to bring the total allowance for loan losses to a level considered necessary by management. The allowance for loan losses is based on management’s continuing review and evaluation of the loan portfolio. The level of the allowance is determined by assigning specific reserves to individually identified problem credits and general reserves to all other loans. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The portion of the allowance that is allocated to internally criticized and non-accrual loans is determined by estimating the inherent loss on each credit after giving consideration to the value of underlying collateral. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates. These loss rates are based on a three-year history of charge-offs and are more heavily weighted for recent experience for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: • Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices. • External factor effects, such as legal and regulatory requirements. • National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. • Nature and volume of the portfolio including growth. • Experience, ability, and depth of lending management and staff. • Volume and severity of past due, classified and nonaccrual loans. • Quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors. • Existence and effect of any concentrations of credit and changes in the level of such concentrations. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Management emphasizes loan quality and close monitoring of potential problem credits. Credit risk identification and review processes are utilized in order to assess and monitor the degree of risk in the loan portfolio. QNB’s lending and credit administration staff are charged with reviewing the loan portfolio and identifying changes in the economy or in a borrower’s circumstances which may affect the ability to repay debt or the value of pledged collateral. A loan classification and review system exists that identifies those loans with a higher than normal risk of collection. Each commercial loan is assigned a grade based upon an assessment of the borrower’s financial capacity to service the debt and the presence and value of collateral for the loan. An independent loan review group tests risk assessments and evaluates the adequacy of the allowance for loan losses. Management meets monthly to review the credit quality of the loan portfolio and quarterly to review the allowance for loan losses. In addition, various regulatory agencies, as an integral part of their examination process, periodically review QNB’s allowance for loan losses. Such agencies may require QNB to recognize additions to the allowance based on their judgments using information available to them at the time of their examination. Management believes that it uses the best information available to make determinations about the adequacy of the allowance and that it has established its existing allowance for loan losses in accordance with GAAP. If circumstances differ substantially from the assumptions used in making determinations, future adjustments to the allowance for loan losses may be necessary and results of operations could be affected. Because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that increases to the allowance will not be necessary should the quality of any loans deteriorate as a result of the factors discussed above. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Servicing Assets Servicing assets are recognized as separate assets when rights are acquired through the sale of financial assets. When mortgage loans are sold, a portion of the cost of originating the loan is allocated to the servicing rights based on relative fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The Company subsequently measures servicing rights using the amortization method where servicing rights are amortized in proportion to and over the period of estimated net servicing income. On a quarterly basis, an independent third party determines the fair value of QNB’s servicing assets. These assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranches. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the valuation allowance may be recorded as an increase to income. Capitalized servicing rights are reported in other assets and are amortized into other non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as other non-interest income when earned and netted against the amortization of mortgage servicing rights. Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. At both December 31, 2018 and 2017, the Company had no foreclosed assets. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated principally on an accelerated or straight-line basis over the estimated useful lives of the assets, or the shorter of the estimated useful life or lease term for leasehold improvements, as follows: Buildings 10 to 39 years Furniture and equipment 3 to 15 years Leasehold improvements 5 to 30 years Expenditures for maintenance and repairs are charged to operations as incurred. Gains or losses upon disposition are reflected in earnings as realized. Bank-Owned Life Insurance The Bank invests in bank-owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a select group of employees. The Bank is the owner and beneficiary of the policies. Income from the increase in cash surrender value of the policies as well as the receipt of death benefits is included in non-interest income on the consolidated statement of income. The BOLI policies are an asset that can be liquidated, if necessary, with associated tax costs. However, QNB intends to hold these policies and, accordingly, has not provided for deferred income taxes on the earnings from the increase in cash surrender value. The Company follows the accounting guidance for postretirement benefit aspects of endorsement split-dollar life insurance arrangements which applies to life insurance arrangements that provide an employee with a specified benefit that is not limited to the employee’s active service period, including certain bank-owned life insurance policies. It requires an employer to recognize a liability and related compensation costs for future benefits that extend to postretirement periods. The expense recorded during 2018, 2017 and 2016 was approximately $53,000, $23,000 and $94,000, respectively, and is included in non-interest expense under salaries and benefits expense. The decrease in 2017 is related to a death claim, reducing the post-retirement liability. Stock-Based Compensation At December 31, 2018, QNB sponsored stock-based compensation plans, administered by a Board committee, under which both qualified and non-qualified stock options may be granted periodically to certain employees. QNB accounts for all awards granted under stock-based compensation plans in accordance with FASB ASC 718, Compensation - Stock Compensation Stock-based compensation expense was approximately $117,000, $102,000 and $88,000 for the years ended December 31, 2018, 2017 and 2016, respectively. There were $12,000, $19,000 and $20,000 in tax benefits recognized related to the nonqualified compensation and disqualifying dispositions for the years ended December 31, 2018, 2017 and 2016, respectively. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the option and each vesting date. QNB estimated the fair value of stock options on the date of the grant using the Black-Scholes option pricing model. The model requires the use of numerous assumptions, many of which are highly subjective in nature. The following assumptions were used in the option pricing model in determining the fair value of options granted during the periods presented. Year ended December 31, 2018 2017 2016 Risk free interest rate 2.15 % 1.48 % 1.14 % Dividend yield 1.24 % 3.19 % 3.78 % Volatility 18.1 % 17.9 % 22.6 % Expected life (years) 4.2 4.2 4.2 The weighted average fair value per share of options granted during 2018, 2017 and 2016 was $5.29, $3.88 and $3.79, respectively. The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued. Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and expected lives of the options. Income Taxes QNB accounts for income taxes under the asset/liability method in accordance with income tax accounting guidance, ASC 740 - Income Taxes In connection with the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions, QNB has evaluated its tax positions as of December 31, 2018. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has more than a 50 percent likelihood of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Under the “more-likely-than-not” threshold guidelines, QNB believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. As of December 31, 2018, QNB had no material unrecognized tax benefits or accrued interest and $8,000 in tax penalties. QNB’s policy is to account for interest as a component of interest expense and penalties as a component of other expense. The Company and its subsidiary are subject to U.S. Federal income tax as well as income tax of the Commonwealth of Pennsylvania and the State of New Jersey. Tax years from 2015 to date remain subject to examination by the tax authorities. Treasury Stock Common stock shares repurchased are recorded as treasury stock at cost. Earnings Per Share Basic earnings per share excludes any dilutive effects of options and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share gives effect to all dilutive potential common shares that were outstanding during the period. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. Treasury shares are not deemed outstanding for earnings per share calculations. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business entity during a period due to transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. Comprehensive income (loss) consists of net income and other comprehensive income (loss). For QNB, the primary component of other comprehensive income (loss) is the unrealized holding gains or losses on available-for-sale investment securities and unrealized losses on available-for-sale investment securities related to factors other than credit on debt securities. Revenue Recognition The primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method. The recognition of revenues from interest earning assets is based upon formulas from underlying loan agreements, securities contracts or other similar contracts. The Company recognizes non-interest revenue from contracts with customers in the consolidated statements of income per Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) (ASC 606), as it is earned and when collectability is reasonably assured. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of income are as follows: • Fees for services to customers—fees include service charges on deposits which are included as liabilities in the consolidated statement of financial position and consist of transaction-based fees, stop payment fees, Automated Clearing House (ACH) fees, account maintenance fees, and overdraft services fees for various retail and business checking customers. These fees are charged as earned on the day of the transaction or within the month of the service, with the exception of Enhanced Account Analysis Fees, which are calculated on the previous month’s activity and assessed in the following month. The Enhanced Account Analysis Fees are currently being accrued; the revenue is currently being recorded in the month it is earned. Service charges on deposits are withdrawn directly from the customer’s account balance. • ATM and debit card – fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. • Retail brokerage and advisory—fee income and related expenses are accrued monthly to properly record the revenues in the month earned. Advisory fees are collected in advance on a quarterly basis. These advisory fees are recorded in the first month of the quarter for which the service is being performed. Fees that are transaction based are recognized at the point in time that the transaction is executed (i.e. trade date). • Merchant – QNB earns interchange fees from credit/debit cardholder transactions conducted through VISA/MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized monthly, concurrently with the transaction processing services provided to the cardholder within the month. All other non-interest income is recognized on the accrual basis of accounting as services are provided or as transactions occur. Advertising Costs Advertising costs are recorded in the period they are incurred within operating expenses in non-interest expense in the consolidated statements of income. Financial Instruments with Off-Balance-Sheet Risk The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of these instruments. The Company uses the same credit policies in making commitments and contractual obligations as it does for on-balance-sheet instruments. The Company reflects its estimate of credit risk for these instruments in other liabilities on the consolidated balance sheet with the corresponding expense recorded in other operating expenses in the consolidated statement of income. Subsequent Events QNB has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2018 through the date the consolidated financial statements are being issued for items that should potentially be recognized or disclosed in these consolidated financial statements. On September 30, 2018, the Deposit Insurance Fund Reserve Ratio reached 1.36%. Because the reserve ratio has exceeded 1.35%, a change impacting QNB’s deposit insurance assessment occurred under the FDIC regulations: Small banks (total consolidated assets of less than $10 billion) were awarded assessment credits for the portion of their assessments that contributed to the growth in the reserve ratio from 1.15% to 1.35%, to be applied when

Note 2 - Earnings Per Share and

Note 2 - Earnings Per Share and Share Repurchase Plan	12 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share and Share Repurchase Plan	Note 2 – Earnings Per Share and Share Repurchase Plan The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2018 2017 2016 Numerator for basic and diluted earnings per share - net income $ 11,335 $ 8,289 $ 8,924 Denominator for basic earnings per share - weighted average shares outstanding 3,463,450 3,428,970 3,386,766 Effect of dilutive securities - employee stock options 19,059 16,841 9,073 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 3,482,509 3,445,811 3,395,839 Earnings per share - basic $ 3.27 $ 2.42 $ 2.64 Earnings per share - diluted $ 3.25 $ 2.41 $ 2.63 There were 25,000, 25,000, and 23,500 stock options that were anti-dilutive as of December 31, 2018, 2017, and 2016 respectively. These stock options were not included in the above calculation. On January 24, 2008, QNB announced that the Board of Directors authorized the repurchase of up to 50,000 shares of its common stock in open market or privately negotiated transactions. On February 9, 2009, the Board of Directors approved increasing the authorization to 100,000 shares. The repurchase authorization does not bear a termination date. There were no shares repurchased during the years ended December 31, 2018 or 2017. As of December 31, 2018 and 2017, 57,883 shares were repurchased under this authorization at an average price of $16.97 and a total cost of $982,000 and were recorded to Treasury stock.

Note 3 - Cash and Cash Equivale

Note 3 - Cash and Cash Equivalents	12 Months Ended
	Dec. 31, 2018
Cash And Cash Equivalents [Abstract]
Cash and Cash Equivalents	Note 3 – Cash and Cash Equivalents Included in cash and cash equivalents are reserves in the form of deposits with the Federal Reserve Bank of Philadelphia. As of December 31, 2018 and 2017, QNB was not required to maintain reserves with the Federal Reserve Bank of Philadelphia.

Note 4 - Investment Securities

Note 4 - Investment Securities	12 Months Ended
	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Investment Securities	Note 4 - Investment Securities Trading QNB engaged in trading activities for its own account, comprised of municipal securities that were held principally for resale in the near term are recorded in the trading account at fair value with changes in fair value recorded in net gain on trading activities in non-interest income. Interest and dividends are included in interest income. During the second quarter 2017, the Bank redeemed the trading securities portfolio, as lack of volatility and the interest rate environment resulted in declining performance of the portfolio. There were net realized gains of $27,000 and net realized losses of $40,000, for the years ended December 31, 2017 and 2016, respectively Available-For-Sale Debt Securities The amortized cost and fair values of investment debt securities available-for-sale at December 31, 2018 and 2017 were as follows: Gross Gross unrealized unrealized Fair holding holding Amortized December 31, 2018 value gains losses cost U.S. Government agency $ 68,409 $ — $ (2,072 ) $ 70,481 State and municipal 66,313 195 (464 ) 66,582 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 125,913 79 (4,251 ) 130,085 Collateralized mortgage obligations (CMOs) 75,491 87 (2,549 ) 77,953 Pooled trust preferred 116 — (6 ) 122 Corporate debt 7,979 33 (80 ) 8,026 Total investment securities available-for-sale $ 344,221 $ 394 $ (9,422 ) $ 353,249 Gross Gross unrealized unrealized Fair holding holding Amortized December 31, 2017 value gains losses cost U.S. Government agency $ 70,524 $ — $ (1,948 ) $ 72,472 State and municipal 76,804 717 (113 ) 76,200 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 142,703 195 (2,401 ) 144,909 Collateralized mortgage obligations (CMOs) 76,302 29 (2,292 ) 78,565 Pooled trust preferred 215 — (26 ) 241 Corporate debt 8,022 6 (37 ) 8,053 Total investment securities available-for-sale $ 374,570 $ 947 $ (6,817 ) $ 380,440 The amortized cost and fair value of debt securities available-for-sale by contractual maturity at December 31, 2018 are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities are assigned to categories based on contractual maturity except for mortgage-backed securities and CMOs which are based on the estimated average life of these securities and state and municipal securities which are based on pre-refunded date, if applicable. Amortized December 31, 2018 Fair value cost Due in one year or less $ 4,743 $ 4,735 Due after one year through five years 235,969 242,711 Due after five years through ten years 82,786 84,752 Due after ten years 20,723 21,051 Total investment securities available-for-sale $ 344,221 $ 353,249 Proceeds from sales of investment debt securities available-for-sale were $4,159,000, $28,087,000 and $25,436,000 for the years ended December 31, 2018, 2017, and 2016, respectively. The following table presents information related to the Company’s gains and losses on the sales of debt securities, and losses recognized for the other-than-temporary impairment (“OTTI”) of these investments. December 31, 2018 2017 2016 Gross realized gains $ 25 $ 581 $ 181 Gross realized losses (22 ) (558 ) (73 ) Other-than-temporary impairment — — — Total net gains (losses) on AFS debt securities $ 3 $ 23 $ 108 The tax expense applicable to the net realized gains on debt securities were $1,000, $8,000 and $37,000 for the years ended December 31, 2018, 2017, and 2016, respectively. There were no other-than-temporary impairment charges recognized for debt securities still held by QNB for the years ended December 31, 2018, 2017, or 2016. QNB recognizes OTTI for debt securities classified as available-for-sale in accordance with FASB ASC 320, Investments – Debt and Equity Securities The following table presents a rollforward of the credit loss component recognized in earnings. The credit loss component of the amortized cost represents the difference between the present value of expected future cash flows and the amortized cost basis of the security prior to considering credit losses. The beginning balance represents the credit loss component for debt securities for which OTTI occurred prior to the beginning of the year. Credit-impaired debt securities must be presented in two components based upon whether the current period is the first time the debt security was credit-impaired (initial credit impairment) or is not the first time the debt security was credit-impaired (subsequent credit impairments). No credit impairments were recognized in 2018, 2017, or 2016. The following table presents a summary of the cumulative credit-related other-than-temporary impairment charges recognized as components of earnings for debt securities still held by QNB: Year ended December 31, 2018 2017 2016 Balance, beginning of year $ 1 $ 1,153 $ 1,153 Reductions: sale, collateralized debt obligation — (1,152 ) — Additions: Initial credit impairments — — — Subsequent credit impairments — — — Balance, end of year $ 1 $ 1 $ 1,153 At December 31, 2018 and 2017, investments in debt securities available-for-sale totaling $194,573,000 and $202,887,000, respectively, were pledged as collateral for repurchase agreements and deposits of public funds. Debt securities that have been in a continuous unrealized loss position are as follows: December 31, 2018 Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized securities value losses value losses value losses U.S. Government agency 51 $ — $ — $ 68,409 $ (2,072 ) $ 68,409 $ (2,072 ) State and municipal 81 21,657 (204 ) 10,558 (260 ) 32,215 (464 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 111 12,561 (91 ) 108,802 (4,160 ) 121,363 (4,251 ) Collateralized mortgage obligations (CMOs) 73 433 (1 ) 62,467 (2,548 ) 62,900 (2,549 ) Pooled trust preferred 1 — — 116 (6 ) 116 (6 ) Corporate debt 4 — — 3,947 (80 ) 3,947 (80 ) Total 321 $ 34,651 $ (296 ) $ 254,299 $ (9,126 ) $ 288,950 $ (9,422 ) December 31, 2017 Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized securities value losses value losses value losses U.S. Government agency 53 $ 10,828 $ (155 ) $ 59,696 $ (1,793 ) $ 70,524 $ (1,948 ) State and municipal 37 10,577 (49 ) 4,446 (64 ) 15,023 (113 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 99 61,069 (705 ) 72,318 (1,696 ) 133,387 (2,401 ) Collateralized mortgage obligations (CMOs) 70 21,660 (349 ) 52,833 (1,943 ) 74,493 (2,292 ) Pooled trust preferred 1 — — 215 (26 ) 215 (26 ) Corporate debt 4 3,018 (20 ) 988 (17 ) 4,006 (37 ) Total 264 $ 107,152 $ (1,278 ) $ 190,496 $ (5,539 ) $ 297,648 $ (6,817 ) Management evaluates debt securities, which are comprised of U.S. Government Agencies, state and municipalities, mortgage-backed securities, CMOs and other issuers, for OTTI and considers the current economic conditions, the length of time and the extent to which the fair value has been less than cost, interest rates and the bond rating of each security. The unrealized losses at December 31, 2018 in U.S. Government securities, state and municipal securities, mortgage-backed securities, CMOs and corporate debt securities are primarily the result of interest rate fluctuations. If held to maturity, these bonds will mature at par, and QNB will not realize a loss. QNB has the intent to hold the securities and does not believe it will be required to sell the securities before recovery occurs. QNB holds one trust preferred security, PreTSL IV which is classified as available-for-sale and carried at fair value. In 2017, PreTSL IV was reclassified from impaired to a performing asset: all capitalized interest had been repaid, no cashflows were being diverted to any senior tranche, and the bond had excess subordination, which represents cushion to absorb future defaults or deferrals. This security has been in an unrealized loss position for more than twelve months. The following table provides additional information related to PreTSL IV as of December 31, 2018: Deal Class Book value Fair value Unrealized gains (losses) Realized OTTI credit loss (YTD 2018) Total recognized OTTI credit loss Moody's /Fitch ratings Current number of performing banks Current number of performing insurance companies Actual deferrals and defaults as a % of total collateral Total performing collateral as a % of outstanding bonds PreTSL IV Mezzanine * $ 122 $ 116 $ (6 ) $ — $ (1 ) Ba1/BB 4 — 0.0 % 187.3 % Mezzanine* - only class of bonds still outstanding (represents the senior-most obligation of the trust) In June 2017, QNB Bank sold five non-performing pooled trust preferred securities, with $2,235,000 carrying value, recording a loss on sale of $15,000, included in non-interest income in the consolidated statement of income. Several years ago, QNB had recorded $1,152,000 in OTTI for four of these five these bonds, and subsequently applied any cashflow received to the balance of these non-performing, nonaccrual assets. Improvement in market prices for these securities during the second quarter 2017 reduced realized losses, and the reduction of approximately $19,000,000 in risk-based assets required for the bonds drove the decision to redeem these debt securities. Marketable Equity Securities The Company’s investment in marketable equity securities primarily consists of investments in large cap stock companies. These equity securities are analyzed for impairment on an ongoing basis. When a decline in value is determined to be other-than-temporary, the value of the equity security is reduced to fair value and a corresponding charge to earnings is recognized. QNB evaluated the near-term prospects of the issuers in relation to the severity and duration of the impairment as well as the individual issuer’s financial condition, industry, geographic and legal environment. Based on that evaluation the Company recorded impairment charges of $80,000 and $192,000 to non-interest income for equity holdings during 2017 and 2016, respectively. There was no other-than-temporary impairment recorded during 2018. QNB has the ability and intent to hold securities in an unrealized loss position until recovery. At December 31, 2018 and 2017, the Company had $9,421,000 and $4,975,000, respectively, in equity securities recorded at fair value. Prior to January 1, 2018, equity securities were stated at fair value with unrealized gains and losses reported as a separate component of Accumulated Other Comprehensive Income (“AOCI”), net of tax. At December 31, 2017, net unrealized losses, net of tax, of $254,000 had been recognized in AOCI. On January 1, 2018, these unrealized gains and losses were reclassified out of AOCI and into retained earnings with subsequent changes in fair value being recognized in net income. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during 2018: December 31, 2018 Net losses recognized during the period on equity securities $ (415 ) Less: Net losses recognized during the period on equity securities sold during the period (79 ) Net unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (336 ) The following table presents information related to the Company’s gains and losses on the sales of equity securities, and losses recognized for the OTTI of these investments during 2017 and 2016: December 31, 2017 2016 Gross realized gains $ 1,557 $ 758 Gross realized losses — — Other-than-temporary impairment (80 ) (192 ) Total net gains on equity securities $ 1,477 $ 566 Tax benefit applicable to the net realized losses for the year ended December 31, 2018 was $120,000. Tax expense applicable to the net realized gains for the year ended December 31, 2017 and 2016 were $600,000 and $230,000, respectively. Proceeds from sales of investment equity securities were $4,902,000, $14,422,000 and $7,137,000 for the years ended December 31, 2018, 2017, and 2016, respectively.

Note 5 - Loans Receivable and t

Note 5 - Loans Receivable and the Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2018
Receivables [Abstract]
Loans Receivable and the Allowance for Loan Losses	Note 5 - Loans Receivable and the Allowance for Loan Losses Major classes of loans are as follows: December 31, 2018 2017 Commercial: Commercial and industrial $ 162,452 $ 147,190 Construction 50,135 51,157 Secured by commercial real estate 308,590 286,867 Secured by residential real estate 68,581 71,703 State and political subdivisions 43,737 38,087 Retail: 1-4 family residential mortgages 67,453 55,818 Home equity loans and lines 77,475 75,576 Consumer 6,785 6,680 Total loans 785,208 733,078 Net unearned costs 240 205 Loans receivable $ 785,448 $ 733,283 Loans secured by commercial real estate include all loans collateralized at least in part by commercial real estate. These loans may not be for the express purpose of conducting commercial real estate transactions. Overdrafts are reclassified as loans and are included in consumer loans above and total loans on the balance sheet. At December 31, 2018 and 2017, overdrafts were $183,000 and $126,000, respectively. QNB generally lends in its trade area which is comprised of Quakertown and the surrounding communities. To a large extent, QNB makes loans collateralized at least in part by real estate. Its lending activities could be affected by changes in the general economy, the regional economy, or real estate values. Other than disclosed in the table above, at December 31, 2018, there was a concentration of loans to lessors of residential buildings and dwellings of 15.8% of total loans and to lessors of nonresidential buildings of 18.1% of total loans, compared with 15.7% and 17.3% of total loans, respectively, at December 31, 2017. These concentrations were primarily within the commercial real estate categories. The Company engages in a variety of lending activities, including commercial, residential real estate and consumer transactions. The Company focuses its lending activities on individuals, professionals and small to medium sized businesses. Risks associated with lending activities include economic conditions and changes in interest rates, which can adversely impact both the ability of borrowers to repay their loans and the value of the associated collateral. Commercial and industrial loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers and are more susceptible to a risk of loss during a downturn in the business cycle. These loans may involve greater risk because the availability of funds to repay these loans depends on the successful operation of the borrower’s business. The assets financed are used within the business for its ongoing operation. Repayment of these types of loans generally comes from the cash flow of the business or the ongoing conversions of assets, such as accounts receivable and inventory, to cash. Typical collateral for commercial and industrial loans includes the borrower’s accounts receivable, inventory and machinery and equipment. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the eastern Pennsylvania market area at conservative loan-to-value ratios and often backed by the individual guarantees of the borrowers or owners. Repayment of this kind of loan is dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties, as well as the factors affecting residential real estate borrowers. Loans to state and political subdivisions are tax-exempt or taxable loans to municipalities, school districts and housing and industrial development authorities. These loans can be general obligations of the municipality or school district repaid through their taxing authority, revenue obligations repaid through the income generated by the operations of the authority, such as a water or sewer authority, or loans issued to a housing and industrial development agency, for which a private corporation is responsible for payments on the loans. In October 2016, the Company sold its interest in third-party originated lease financing receivables, recording a loss on sale of $223,000, which was essentially offset by a $220,000 reversal of the allowance for loan losses associated with this sold portfolio. The lease financing receivables comprised loans to small businesses collateralized by equipment to borrowers within Pennsylvania and in states contiguous to Pennsylvania. QNB was not the lessor and did not service these loans. The Company originates fixed-rate and adjustable-rate real estate-residential mortgage loans for personal purposes that are secured by first liens on the underlying 1-4 family residential properties. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-income ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance. The real estate-home equity portfolio consists of fixed-rate home equity loans and variable-rate home equity lines of credit. Risks associated with loans secured by residential properties are generally lower than commercial loans and include general economic risks, such as the strength of the job market, employment stability and the strength of the housing market. Since most loans are secured by a primary or secondary residence, the borrower’s continued employment is the greatest risk to repayment. The Company offers a variety of loans to individuals for personal and household purposes. Consumer loans are generally considered to have greater risk than first or second mortgages on real estate because they may be unsecured, or, if they are secured, the value of the collateral may be difficult to assess and is more likely to decrease in value than real estate. Credit risk in this portfolio is controlled by conservative underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values. The Company employs a ten-grade risk rating system related to the credit quality of commercial loans and loans to state and political subdivisions of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. 1 - Excellent - no apparent risk 2 - Good - minimal risk 3 - Acceptable - lower risk 4 - Acceptable - average risk 5 - Acceptable – high risk 6 - Pass watch 7 - Special Mention - potential weaknesses 8 - Substandard - well defined weaknesses 9 - Doubtful - full collection unlikely 10 - Loss - considered uncollectible The Company maintains a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential problem loans. Each loan officer assigns a rating to commercial loans and loans to state and political subdivisions at the time the loan is originated. Loans with risk ratings of one through five are reviewed annually based on the borrower’s fiscal year. Loans with risk ratings of six are reviewed every six to twelve months based on the dollar amount of the relationship with the borrower. Loans with risk ratings of seven through ten are reviewed at least quarterly, and as often as monthly, at management’s discretion. The Company also utilizes an outside loan review firm to review the portfolio on a semi-annual basis to provide the Board of Directors and senior management an independent review of the Bank’s loan portfolio on an ongoing basis. These reviews are designed to recognize deteriorating credits in their earliest stages in an effort to reduce and control risk in the lending function as well as identifying potential shifts in the quality of the loan portfolio. The examinations by the outside loan review firm include the review of lending activities with respect to underwriting and processing new loans, monitoring the risk of existing loans and to provide timely follow-up and corrective action for loans showing signs of deterioration in quality. In addition, the outside firm reviews the methodology for the allowance for loan losses to determine compliance to policy and regulatory guidance. The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2018 and 2017: December 31, 2018 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 155,219 $ 82 $ 7,151 $ — $ 162,452 Construction 50,135 — — — 50,135 Secured by commercial real estate 297,713 1,259 9,618 — 308,590 Secured by residential real estate 66,838 173 1,570 — 68,581 State and political subdivisions 43,737 — — — 43,737 Total $ 613,642 $ 1,514 $ 18,339 $ — $ 633,495 December 31, 2017 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 139,820 $ 863 $ 6,507 $ — $ 147,190 Construction 51,156 — 1 — 51,157 Secured by commercial real estate 268,069 10,569 8,229 — 286,867 Secured by residential real estate 69,571 222 1,910 — 71,703 State and political subdivisions 38,087 — — — 38,087 Total $ 566,703 $ 11,654 $ 16,647 $ — $ 595,004 For retail loans, the Company evaluates credit quality based on the performance of the individual credits. The following tables present the recorded investment in the retail classes of the loan portfolio based on payment activity as of December 31, 2018 and 2017: December 31, 2018 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 66,513 $ 940 $ 67,453 Home equity loans and lines 77,309 166 77,475 Consumer 6,659 126 6,785 Total $ 150,481 $ 1,232 $ 151,713 December 31, 2017 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 54,936 $ 882 $ 55,818 Home equity loans and lines 75,433 143 75,576 Consumer 6,595 85 6,680 Total $ 136,964 $ 1,110 $ 138,074 The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio (excluding deferred fees and costs) summarized by the past due status, regardless of whether the loan is on non-accrual status, as of December 31, 2018 and 2017: December 31, 2018 30-59 past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 94 $ 141 $ 1,372 $ 1,607 $ 160,845 $ 162,452 Construction — — — — 50,135 50,135 Secured by commercial real estate 305 1,029 638 1,972 306,618 308,590 Secured by residential real estate 24 352 291 667 67,914 68,581 State and political subdivisions — — — — 43,737 43,737 Retail: 1-4 family residential mortgages 544 245 476 1,265 66,188 67,453 Home equity loans and lines 82 205 61 348 77,127 77,475 Consumer 23 35 24 82 6,703 6,785 Total $ 1,072 $ 2,007 $ 2,862 $ 5,941 $ 779,267 $ 785,208 December 31, 2017 30-59 past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 25 $ 429 $ 57 $ 511 $ 146,679 $ 147,190 Construction — — — — 51,157 51,157 Secured by commercial real estate 899 — 730 1,629 285,238 286,867 Secured by residential real estate 24 — 210 234 71,469 71,703 State and political subdivisions — — — — 38,087 38,087 Retail: 1-4 family residential mortgages 744 152 504 1,400 54,418 55,818 Home equity loans and lines 251 44 119 414 75,162 75,576 Consumer 23 8 — 31 6,649 6,680 Total $ 1,966 $ 633 $ 1,620 $ 4,219 $ 728,859 $ 733,078 The following tables disclose the recorded investment in loans receivable that are either on non-accrual status or past due 90 days or more and still accruing interest as of December 31, 2018 and 2017: December 31, 2018 90 due (still accruing) Non-accrual Commercial: Commercial and industrial $ — $ 3,179 Construction — — Secured by commercial real estate — 1,965 Secured by residential real estate — 1,102 State and political subdivisions — — Retail: 1-4 family residential mortgages — 940 Home equity loans and lines — 166 Consumer — 126 Total $ — $ 7,478 December 31, 2017 90 due (still accruing) Non-accrual Commercial: Commercial and industrial $ — $ 3,367 Construction — — Secured by commercial real estate — 1,987 Secured by residential real estate — 1,458 State and political subdivisions — — Retail: 1-4 family residential mortgages — 882 Home equity loans and lines — 142 Consumer — 85 Total $ — $ 7,921 Activity in the allowance for loan losses for the years ended December 31, 2018, 2017 and 2016 are as follows: Year ended December 31, 2018 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 2,711 $ 341 $ — $ 40 $ 3,092 Construction 563 (12 ) — — 551 Secured by commercial real estate 2,410 391 — 23 2,824 Secured by residential real estate 816 (12 ) (77 ) 27 754 State and political subdivisions 114 39 — — 153 Retail: 1-4 family residential mortgages 444 54 (1 ) — 497 Home equity loans and lines 357 52 (84 ) 13 338 Consumer 57 185 (112 ) 34 164 Unallocated 369 92 N/A N/A 461 Total $ 7,841 $ 1,130 $ (274 ) $ 137 $ 8,834 Year ended December 31, 2017 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,459 $ 2,178 $ (960 ) $ 34 $ 2,711 Construction 449 114 — — 563 Secured by commercial real estate 2,646 (244 ) — 8 2,410 Secured by residential real estate 1,760 (959 ) (23 ) 38 816 State and political subdivisions 123 (9 ) — — 114 Retail: 1-4 family residential mortgages 366 78 — — 444 Home equity loans and lines 353 (6 ) — 10 357 Consumer 76 41 (92 ) 32 57 Unallocated 162 207 N/A N/A 369 Total $ 7,394 $ 1,400 $ (1,075 ) $ 122 $ 7,841 Year ended December 31, 2016 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,521 $ 41 $ (140 ) $ 37 $ 1,459 Construction 286 163 — — 449 Secured by commercial real estate 2,411 227 — 8 2,646 Secured by residential real estate 1,812 (44 ) (120 ) 112 1,760 State and political subdivisions 222 (99 ) — — 123 Indirect lease financing 164 (121 ) (52 ) 9 — Retail: 1-4 family residential mortgages 350 16 — — 366 Home equity loans and lines 428 (91 ) — 16 353 Consumer 76 60 (92 ) 32 76 Unallocated 284 (122 ) N/A N/A 162 Total $ 7,554 $ 30 $ (404 ) $ 214 $ 7,394 As previously discussed, the Company maintains a loan review system, which includes a continuous review of the loan portfolio by internal and external parties to aid in the early identification of potential impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial loans and loans to state and political subdivisions by using either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential mortgage loans for impairment disclosures, unless such loans are part of a larger relationship that is impaired or are classified as a troubled debt restructuring. An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of the majority of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable agings or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. From time to time, QNB may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers that may be experiencing financial difficulties. A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, extension of terms, forgiveness of principal or interest, or other modifications of interest rates to less than the current market rate for new obligations with similar risk. Loans classified as TDRs are considered non-performing and are also designated as impaired. The concessions made for TDRs involve lowering the monthly payments on loans through periods of interest only payments, a reduction in interest rate below a market rate or an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these three methods. The restructurings rarely result in the forgiveness of principal or accrued interest. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. Performing TDRs (not reported as non-accrual or past due 90 days or more and still accruing) totaled $2,160,000 and $1,321,000 as of December 31, 2018 and 2017, respectively. Non-performing TDRs totaled $1,317,000 and $2,994,000 as of December 31, 2018 and 2017, respectively. All TDRs are included in impaired loans. The following table illustrates the specific reserve for loan losses allocated to loans modified as TDRs. These specific reserves are included in the allowance for loan losses for loans individually evaluated for impairment. There were charge-offs resulting from loans modified as TDRs of $51,000, $3,000 and $0 during the years ended December 31, 2018, 2017 and 2016, respectively. December 31, 2018 2017 Unpaid principal balance Related allowance Unpaid principal balance Related allowance TDRs with no specific allowance recorded $ 2,513 $ — $ 3,448 $ — TDRs with an allowance recorded 964 411 867 235 Total $ 3,477 $ 411 $ 4,315 $ 235 There were four newly identified TDRs during the year ended December 31, 2018. As of December 31, 2018 and 2017, QNB had commitments of $0, respectively, to lend additional funds to customers with loans whose terms have been modified in troubled debt restructurings. The following table presents loans, by loan class, modified as TDRs during the years ended December 31, 2018 and 2017. The pre-modification outstanding recorded investment disclosed represents the carrying amounts immediately prior to the modification of the loan. The post-modification outstanding recorded investment is net of loan repayments. Year ended December 31, 2018 2017 Number contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Number contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Commercial: Secured by commercial real estate 1 $ 99 $ 99 — $ — $ — Secured by residential real estate 1 39 29 — — — Retail: Home equity loans and lines 2 95 86 — — — Total 4 $ 233 $ 214 — $ — $ — There were no loans modified as TDRs, included above, within the previous 12 months from December 31, 2018 and 2017, for which there was a payment default, past due 60 days or more, during the respective year end. The company had five mortgages secured by residential real estate with a recorded investment of $537,000 for which foreclosure proceedings were in process as of December 31, 2018. There were three mortgage loans secured by residential real estate with a recorded investment of $421,000 for which foreclosure proceedings were in process at December 31, 2017. The following tables present the balance in the allowance of loan losses disaggregated on the basis of the Company’s impairment method by class of loans receivable along with the balance of loans receivable by class, excluding unearned fees and costs, disaggregated on the basis of the Company’s impairment methodology: Allowance for Loan Losses Loans Receivable December 31, 2018 Balance Balance to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 3,092 $ 1,461 $ 1,631 $ 162,452 $ 7,128 $ 155,324 Construction 551 — 551 50,135 — 50,135 Secured by commercial real estate 2,824 101 2,723 308,590 6,083 302,507 Secured by residential real estate 754 97 657 68,581 1,740 66,841 State and political subdivisions 153 — 153 43,737 — 43,737 Retail: 1-4 family residential mortgages 497 — 497 67,453 1,268 66,185 Home equity loans and lines 338 5 333 77,475 186 77,289 Consumer 164 — 164 6,785 77 6,708 Unallocated 461 N/A N/A N/A N/A N/A Total $ 8,834 $ 1,664 $ 6,709 $ 785,208 $ 16,482 $ 768,726 Allowance for Loan Losses Loans Receivable December 31, 2017 Balance Balance to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 2,711 $ 1,260 $ 1,451 $ 147,190 $ 6,498 $ 140,692 Construction 563 — 563 51,157 1 51,156 Secured by commercial real estate 2,410 — 2,410 286,867 3,874 282,993 Secured by residential real estate 816 84 732 71,703 1,744 69,959 State and political subdivisions 114 — 114 38,087 — 38,087 Retail: 1-4 family residential mortgages 444 8 436 55,818 1,218 54,600 Home equity loans and lines 357 40 317 75,576 164 75,412 Consumer 57 — 57 6,680 85 6,595 Unallocated 369 N/A N/A N/A N/A N/A Total $ 7,841 $ 1,392 $ 6,080 $ 733,078 $ 13,584 $ 719,494 The following table summarizes additional information regarding impaired loans by loan portfolio class as of December 31, 2018 and 2017: December 31, 2018 December 31, 2017 Recorded investment (after charge-offs) Unpaid principal balance Related allowance Recorded investment (after charge-offs) Unpaid principal balance Related allowance With no specific allowance recorded: Commercial: Commercial and industrial $ 4,243 $ 4,525 $ — $ 5,070 $ 5,461 $ — Construction — — — 1 1 — Secured by commercial real estate 5,012 5,577 — 3,874 4,464 — Secured by residential real estate 1,023 1,140 — 914 1,239 — Retail: 1-4 family residential mortgages 1,268 1,357 — 1,057 1,108 — Home equity loans and lines 140 190 — 124 168 — Consumer 77 84 — 85 90 — Total $ 11,763 $ 12,873 $ — $ 11,125 $ 12,531 $ — With an allowance recorded: Commercial: Commercial and industrial $ 2,885 $ 4,128 $ 1,461 $ 1,428 $ 2,593 $ 1,260 Construction — — — — — — Secured by commercial real estate 1,071 1,095 101 — — — Secured by residential real estate 717 773 97 830 879 84 Retail: 1-4 family residential mortgages — — — 161 163 8 Home equity loans and lines 46 46 5 40 41 40 Consumer — — — — — — Total $ 4,719 $ 6,042 $ 1,664 $ 2,459 $ 3,676 $ 1,392 Total: Commercial: Commercial and industrial $ 7,128 $ 8,653 $ 1,461 $ 6,498 $ 8,054 $ 1,260 Construction — — — 1 1 — Secured by commercial real estate 6,083 6,672 101 3,874 4,464 — Secured by residential real estate 1,740 1,913 97 1,744 2,118 84 Retail: 1-4 family residential mortgages 1,268 1,357 — 1,218 1,271 8 Home equity loans and lines 186 236 5 164 209 40 Consumer 77 84 — 85 90 — Total $ 16,482 $ 18,915 $ 1,664 $ 13,584 $ 16,207 $ 1,392 The following table presents additional information regarding the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial: Commercial and industrial $ 6,064 $ 227 $ 5,301 $ 14 $ 4,200 $ 58 Construction — — 51 2 370 18 Secured by commercial real estate 4,908 189 5,744 145 6,129 131 Secured by residential real estate 1,800 23 2,252 23 1,960 15 Indirect lease financing — — — — 88 — Retail: 1-4 family residential mortgages 1,251 12 1,155 13 583 10 Home equity loans and lines 186 1 138 1 129 1 Consumer 81 — 97 — 29 — Total $ 14,290 $ 452 $ 14,738 $ 198 $ 13,488 $ 233

Note 6 - Premises and Equipment

Note 6 - Premises and Equipment	12 Months Ended
	Dec. 31, 2018
Property Plant And Equipment [Abstract]
Premises and Equipment	Note 6 - Premises and Equipment Premises and equipment, stated at cost less accumulated depreciation and amortization, are summarized below: December 31, 2018 2017 Land and buildings $ 12,258 $ 11,464 Furniture and equipment 14,618 13,599 Leasehold improvements 2,816 2,328 Book value 29,692 27,391 Accumulated depreciation and amortization (19,774 ) (18,896 ) Net book value $ 9,918 $ 8,495 Depreciation and amortization expense on premises and equipment amounted to $990,000, $821,000, and $891,000 for the years ended December 31, 2018, 2017 and 2016, respectively.

Note 7 - Intangible Assets and

Note 7 - Intangible Assets and Loan Servicing	12 Months Ended
	Dec. 31, 2018
Transfers And Servicing Of Financial Assets [Abstract]
Intangible Assets and Loan Servicing	Note 7 - Intangible Assets and Loan Servicing Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $73,993,000 and $77,170,000 at December 31, 2018 and 2017, respectively. The following table reflects the activity of mortgage servicing rights for the periods indicated: Year ended December 31, 2018 2017 2016 Balance at beginning of year $ 483 $ 498 $ 504 Mortgage servicing rights capitalized 33 67 69 Mortgage servicing rights amortized (66 ) (83 ) (79 ) Fair market value adjustments 1 1 4 Balance at end of year $ 451 $ 483 $ 498 The balance of these mortgage servicing rights is included in other assets at December 31, 2018 and 2017 and the fair value of these rights was $604,000 and $585,000, respectively. The fair value of servicing rights was determined using discount rates ranging from 12% to 12.5 % for 2018 and 13% to 15% for 2017. The annual estimated amortization expense of intangible assets for each of the five succeeding fiscal years is as follows: 2019 $ 71 2020 62 2021 53 2022 46 2023 39

Note 8 - Time Deposits

Note 8 - Time Deposits	12 Months Ended
	Dec. 31, 2018
Banking And Thrift [Abstract]
Time Deposits	Note 8 - Time Deposits The aggregate amount of time deposits, including deposits in denominations of $100,000 or more, was $223,788,000 and $225,182,000 at December 31, 2018 and 2017, respectively. Time deposits that meet or exceed the FDIC insurance limit of $250,000 at December 31, 2018 and 2017 were $47,266,000 and $42,362,000, respectively. At December 31, 2018, the scheduled maturities of time deposits were as follows: 2019 $ 78,931 2020 73,399 2021 43,441 2022 17,272 2023 10,745 Thereafter — Total time deposits $ 223,788

Note 9 - Short-Term Borrowings

Note 9 - Short-Term Borrowings	12 Months Ended
	Dec. 31, 2018
Disclosure Text Block [Abstract]
Short-Term Borrowings	Note 9 - Short-Term Borrowings December 31, Securities sold under agreements to repurchase (a) Other short - term borrowings (b) 2018 Balance $ 47,007 $ 3,865 Maximum indebtedness at any month end 47,007 46,451 Daily average indebtedness outstanding 38,172 22,767 Average rate paid for the year 0.55 % 2.03 % Average rate on period-end borrowings 0.67 2.65 2017 Balance $ 41,845 $ 13,911 Maximum indebtedness at any month end 43,834 33,773 Daily average indebtedness outstanding 39,301 9,371 Average rate paid for the year 0.38 % 1.09 % Average rate on period-end borrowings 0.40 1.20 (a) Securities sold under agreements to repurchase mature overnight. The repurchase agreements were collateralized by U.S. Government mortgage-backed securities and CMOs with an amortized cost of $62,445,000 and $53,112,000 and a fair value of $60,408,000 and $51,823,000 and at December 31, 2018 and 2017, respectively. These securities are held in safekeeping at the Federal Reserve Bank of Boston. (b) Other short-term borrowings include Federal funds purchased and overnight borrowings from the FHLB. The Bank has four unsecured Federal funds lines granted by correspondent banks totaling $46,000,000. Federal funds purchased under these lines were $0 at both December 31, 2018 and 2017.

Note 10 - Long-Term Debt

Note 10 - Long-Term Debt	12 Months Ended
	Dec. 31, 2018
Disclosure Text Block [Abstract]
Long-Term Debt	Note 10 - Long-Term Debt FHLB advances are collateralized by certain mortgage loans and also require the purchase of FHLB capital stock, which is included within restricted investment in bank stock on the consolidated balance sheets. QNB’s FHLB stock is $785,000 and $1,489,000 at December 31, 2018 and 2017, respectively. QNB has a maximum borrowing capacity with the FHLB of approximately $315,334,000. At December 31, 2018 QNB had $3,865,000 in borrowings outstanding with the FHLB reported in Note 9 as other short-term borrowings and a letter of credit issued of $350,000. QNB had $13,911,000 borrowings outstanding with the FHLB at December 31, 2017.

Note 11 - Income Taxes

Note 11 - Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 11 - Income Taxes The Tax Cuts and Jobs Act (the “2017 Tax Reform Act”) was enacted on December 22, 2017. The 2017 Tax Reform Act reduced the U.S. Federal corporate tax rate for QNB from 34% to 21% effective January 1, 2018. U.S. GAAP required that the tax impact of the rate change on existing tax account balances be recognized in the 2017 provision. A reasonable estimate of the rate change effect on QNB’s existing deferred tax asset/liability accounts (DTA/DTL) was made and a $2,054,000 adjustment to the 2017 tax provision was recorded. A portion of the DTA/DTL tax rate change effect related to QNB’s unrealized gains(losses) on available for sale securities, net of their expected deferred tax benefit, included in AOCI and created a “stranded tax effect” of $805,000. In February 2018, FASB issued ASU 2018-02, as discussed in Note 1, allowing a one-time reclassification of such “stranded tax effect” from AOCI to retained earnings. In the first quarter of 2018, QNB reclassified $805,000 of deferred tax benefits from AOCI to retained earnings as reflected in the Consolidated Statements of Shareholders’ Equity. In 2018, QNB’s 2017 Federal tax return was filed and included an election to change tax methods for bad debt conformity and for loan originations costs. This resulted in a tax benefit of $415,000 related to the change in the tax rate from 34% to 21%. These discrete tax items were recorded in 2018. The components of the provision for income taxes are as follows: Year ended December 31, 2018 2017 2016 Current Federal income taxes $ 1,742 $ 3,454 $ 3,137 Current state income taxes 57 124 62 Deferred Federal income taxes (benefits) 363 268 (145 ) Deferred state income taxes (benefits) (105 ) — — Other (85 ) — — Net provision prior to discrete tax adjustments 1,972 3,846 3,054 DTL writeoff due to change in tax methods (415 ) — — Net DTA revaluation for change in tax rate under 2017 Tax Reform — 2,054 — Net provision $ 1,557 $ 5,900 $ 3,054 At December 31, 2018 and 2017, the tax effects of temporary differences that represent the significant portion of deferred tax assets and liabilities are as follows: December 31, 2018 2017 Deferred tax assets Allowance for loan losses $ 1,855 $ 1,647 Net unrealized holding losses on investment securities available-for-sale 1,896 1,255 Fair value adjustment on equity securities 190 — Non-credit OTTI on investment securities available-for-sale — 45 Non-accrual interest income 76 324 Deferred rent 59 55 Deferred revenue 121 80 Incurred but not reported medical expense 33 18 Bonus 178 130 State net operating loss carryforward 29 — Other 27 16 Total deferred tax assets 4,464 3,570 Deferred tax liabilities Deferred loan costs 361 — Depreciation 179 24 Mortgage servicing rights 95 101 Net unrealized holding gains on trading investment securities — 21 Prepaid expenses 92 95 Other 13 10 Total deferred tax liabilities 740 251 Net deferred tax asset $ 3,724 $ 3,319 The ability to realize deferred tax assets is dependent upon a variety of factors, including the generation of future taxable income, the existence of taxes paid and recoverable, the reversal of deferred tax liabilities and tax planning strategies. Based upon these and other factors, management believes it is more likely than not that QNB will realize the benefits of the above deferred tax assets. A reconciliation of the tax provision on income before taxes computed at the statutory rates of 21% for 2018 and 34% for 2017 and 2016 and the actual tax provision was as follows: Year ended December 31, 2018 2017 2016 Dollar % Dollar % Dollar % Provision at statutory rate $ 2,707 21.0 % $ 4,825 34.0 % $ 4,073 34.0 % Tax-exempt interest and dividend income (577 ) (4.5 ) (948 ) (6.7 ) (1,033 ) (8.6 ) Bank-owned life insurance (61 ) (0.4 ) (100 ) (0.7 ) (105 ) (0.9 ) Life insurance proceeds — — (18 ) (0.1 ) — — Stock-based compensation expense 17 0.1 19 0.1 30 0.3 State income tax (19 ) (0.1 ) 82 0.6 41 0.3 Other (95 ) (0.8 ) (14 ) (0.1 ) 48 0.4 Net provision prior to discrete tax adjustments 1,972 15.3 3,846 27.1 3,054 25.5 % DTL writeoff for change in tax methods (415 ) (3.2 ) — — — — Net DTA revaluation for change in tax rate under 2017 Tax Reform — — 2,054 14.5 — — Net provision $ 1,557 12.1 % $ 5,900 41.6 % $ 3,054 25.5 %

Note 12 - Employee Benefit Plan

Note 12 - Employee Benefit Plans	12 Months Ended
	Dec. 31, 2018
Compensation Related Costs [Abstract]
Employee Benefit Plans	Note 12 - Employee Benefit Plans The QNB Bank Retirement Savings Plan provides for elective employee contributions up to the maximum allowed by the IRS and a matching company contribution limited to 3%. In addition, the plan provides for safe harbor non-elective contributions of 5% of total compensation by QNB. QNB contributed a matching contribution of approximately $271,000, $259,000 and $206,000 for the years ended December 31, 2018, 2017, and 2016, respectively, and a safe harbor contribution of approximately $494,000 for 2018, $478,000 for 2017, and $445,000 for 2016. QNB’s Employee Stock Purchase Plan (the Plan) offers eligible employees an opportunity to purchase shares of QNB Corp. common stock at a 10% discount from the lesser of fair market value on the first or last day of each offering period (as defined by the Plan). At the 2016 Annual Meeting, shareholders approved the 2016 Employee Stock Purchase Plan (the 2016 Plan), which authorizes the issuance of 30,000 shares. As of December 31, 2018, 7,015 shares were issued under the 2016 Plan. The 2016 Plan expires May 31, 2021. The 2011 Employee Stock Purchase Plan (the 2011 Plan), which was approved by shareholders at the 2011 Annual Meeting, expired May 31, 2016. A total of 17,516 shares were issued under the 2011 plan. Shares issued pursuant to the Plan were as follows: Year ended December 31, 2018 2017 2016 Shares 2,963 2,660 2,932 Price per share $39.60 and $39.47 $31.95 and $36.18 $26.73 and $28.35

Note 13 - Stock Option Plan

Note 13 - Stock Option Plan	12 Months Ended
	Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Option Plan	Note 13 - Stock Option Plan QNB has stock option plans (the Plans) administered by a committee which consists of three or more members of QNB’s Board of Directors. The Plans provide for the granting of either (i) Non-Qualified Stock Options (NQSOs) or (ii) Incentive Stock Options (ISOs). The exercise price of an option, as defined by the Plans, is the fair market value of QNB’s common stock at the date of grant. The Plans provide for the exercise either in cash or in securities of the Company or in any combination thereof. The 2005 Plan authorized the issuance of 200,000 shares. The time period by which any option is exercisable under the Plan is determined by the Committee but shall not commence before the expiration of six months after the date of grant or continue beyond the expiration of five years after the date grant date. The granted options vest after a three-year period. As of December 31, 2018, there were 184,200 options granted, 65,850 options forfeited, 95,675 options exercised and 22,675 options outstanding under this Plan. The 2005 Plan expired March 15, 2015. The 2015 Plan authorizes the issuance of 300,000 shares. The terms of the 2015 Plan are identical to the 2005 plan. There were 73,500 options granted, 1,100 options forfeited, 72,400 options outstanding and no options exercised under this Plan as of December 31, 2018. As of December 31, 2018, there was approximately $114,000 of unrecognized compensation cost related to unvested stock option awards granted. That cost is expected to be recognized over the next 26 months. Stock option activity during 2018, 2017, and 2016 was as follows: Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at December 31, 2015 82,875 $ 24.33 Exercised (22,700 ) 20.90 Forfeited (9,725 ) 25.60 Granted 23,500 30.40 Outstanding at December 31, 2016 73,950 27.14 Exercised (13,125 ) 22.42 Forfeited (300 ) 22.58 Granted 25,000 37.60 Outstanding at December 31, 2017 85,525 30.94 Exercised (13,850 ) 24.96 Forfeited (1,600 ) 32.52 Granted 25,000 43.60 Outstanding at December 31, 2018 95,075 $ 35.11 2.58 $ 450 Exercisable at December 31, 2018 22,675 $ 27.84 0.73 $ 242 As of December 31, 2018, outstanding stock options consist of the following: Options outstanding Exercise price Remaining life (in years) Options exercisable Exercise price 7,825 $ 25.16 0.08 7,825 $ 25.16 14,850 29.25 1.08 14,850 29.25 22,950 30.40 2.13 — — 24,450 37.60 3.13 — — 25,000 43.60 4.14 — — Outstanding at December 31, 2018 95,075 $ 35.11 2.58 22,675 $ 27.84 The intrinsic value related to total stock options exercised during 2018, 2017, and 2016 are as follows: 2018 2017 2016 Intrinsic value of stock options exercised $ 274 $ 204 $ 234

Note 14 - Related Party Transac

Note 14 - Related Party Transactions	12 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Note 14 - Related Party Transactions QNB has had, and may be expected to have in the future, banking transactions in the ordinary course of business with its executive officers, directors, principal shareholders, their immediate families and affiliated companies. The following table presents activity and amounts due from directors, principal officers, and their related interests. All of these transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons. These transactions did not involve more than normal risk of collectability or present any other unfavorable features. Balance, December 31, 2017 $ 12,837 New loans 12,613 Repayments (12,559 ) Balance, December 31, 2018 $ 12,891 The following table provides additional information regarding transactions with related parties. December 31, 2018 2017 Commitments to extend credit $ 6,867 $ 3,149 Letters of credit 1,296 1,000 Deposits received 7,181 9,550

Note 15 - Commitments and Conti

Note 15 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 15 - Commitments and Contingencies Financial instruments with off-balance sheet risk: In the normal course of business there are various legal proceedings, commitments, and contingent liabilities which are not reflected in the consolidated financial statements. Management does not anticipate any material losses as a result of these transactions and activities. They include, among other things, commitments to extend credit and standby letters of credit. The maximum exposure to credit loss, which represents the possibility of sustaining a loss due to the failure of the other parties to a financial instrument to perform according to the terms of the contract, is represented by the contractual amount of these instruments. QNB uses the same lending standards and policies in making credit commitments as it does for on-balance sheet instruments. The activity is controlled through credit approvals, control limits, and monitoring procedures. A summary of the Bank's financial instrument commitments is as follows: December 31, 2018 2017 Commitments to extend credit and unused lines of credit $ 266,021 $ 313,541 Standby letters of credit 17,269 15,211 Total financial instrument commitments $ 283,290 $ 328,752 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. QNB evaluates each customer’s creditworthiness on a case-by-case basis. Standby letters of credit are conditional commitments issued by the Bank to guarantee the financial or performance obligation of a customer to a third party. QNB’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making conditional obligations as it does for on-balance sheet instruments. Standby letters of credit totaling $16,694,000 expire within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Bank requires collateral and personal guarantees supporting these letters of credit as deemed necessary. The amount of collateral obtained for letters of credit and commitments to extend credit is based on management’s credit evaluation of the customer. Collateral varies, but may include real estate, accounts receivable, marketable securities, pledged deposits, inventory or equipment. Management believes that the proceeds obtained through a liquidation of such collateral and the enforcement of personal guarantees would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The amount of the liability as of December 31, 2018 and 2017 for guarantees under standby letters of credit issued is not material. Other commitments: QNB has committed to various operating leases for several of their branch and office facilities. Some of these leases include renewal options as well as specific provisions relating to rent increases. The minimum annual rental commitments under these leases outstanding at December 31, 2018 are as follows: Minimum lease payments 2019 $ 596 2020 484 2021 403 2022 404 2023 357 Thereafter 5,153 Total $ 7,397 Some of the leases contain renewal options to extend the initial terms of the lease for periods ranging from one to ten years and certain leases allow for multiple extensions. With the exception of the renewals for a land lease related to a permanent branch site, the commitment for such renewals is not included above if they have not been exercised as of December 31, 2018. Rent expense under leases, which includes common area maintenance costs not included in the minimum lease payments above, for the years ended December 31, 2018, 2017 and 2016, was $681,000, $645,000 and $606,000, respectively.

Note 16 - Accumulated Other Com

Note 16 - Accumulated Other Comprehensive Income (Loss)	12 Months Ended
	Dec. 31, 2018
Other Comprehensive Income Loss Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	Note 16 - Accumulated Other Comprehensive Income (Loss) The following shows the components of accumulated other comprehensive income (loss) during the periods ended December 31, 2018, 2017 and 2016: December 31, 2018 2017 2016 Unrealized net holding (losses) gains on available-for-sale securities $ (9,028 ) $ (6,165 ) $ (5,446 ) Unrealized losses on available-for-sale securities for which a portion of an other-than-temporary impairment loss has been recognized in earnings — (26 ) (247 ) Accumulated other comprehensive (loss) income (9,028 ) (6,191 ) (5,693 ) Tax effect* 1,896 1,300 1,936 Stranded tax effect — 805 — Accumulated other comprehensive income (loss), net of tax $ (7,132 ) $ (4,086 ) $ (3,757 ) * At tax rates of 21% for 2018, 21% for 2017, and 34% for 2016 The stranded tax effect is related to the recognition of tax rate change effects on AFS DTA/DTL revaluation, resulting from the 2017 Tax Reform Act, as described in Note 11. The following table presents amounts reclassified out of accumulated other comprehensive income (loss) for the years ended December 31, 2018, 2017 and 2016: Amount reclassified from accumulated other comprehensive income (loss) Details about accumulated other comprehensive income (loss) 2018 2017 2016 Affected line item in statement of income Realized net holding gains on available-for-sale securities $ 3 $ 1,580 $ 866 Net gain on sale of investment securities Other-than-temporary impairment losses on investment securities — (80 ) (192 ) Net other-than-temporary impairment losses on investment securities Net gain on sale of investment securities 3 1,500 674 Tax effect* (1 ) (510 ) (229 ) Provision for income taxes Total reclassification out of accumulated other comprehensive income (loss), net of tax $ 2 $ 990 $ 445 Net of tax *At rate of 21% for 2018 and 34% for both 2017 and 2016

Note 17 - Fair Value Measuremen

Note 17 - Fair Value Measurements and Fair Values of Financial Instruments	12 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements and Fair Values of Financial Instruments	Note 17 - Fair Value Measurements and Fair Values of Financial Instruments Financial Accounting Standards Board (“FASB”) ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The measurement of fair value should be consistent with one of the following valuation techniques: market approach, income approach, and/or cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). For example, valuation techniques consistent with the market approach often use market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering factors specific to the measurement (qualitative and quantitative). Valuation techniques consistent with the market approach include matrix pricing. Matrix pricing is a mathematical technique used principally to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the security’s relationship to other benchmark quoted securities. For financial assets measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used were as follows: December 31, 2018 Quoted in active markets for identical assets (Level 1) Significant other observable input (Level 2) Significant unobservable inputs (Level 3) Balance at end of period Recurring fair value measurements Securities available-for-sale U.S. Government agency securities $ — $ 68,409 $ — $ 68,409 State and municipal securities — 66,313 — 66,313 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 125,913 — 125,913 Collateralized mortgage obligations (CMOs) — 75,491 — 75,491 Pooled trust preferred securities — — 116 116 Corporate debt securities — 7,979 — 7,979 Total securities available-for-sale — 344,105 116 344,221 Equity securities 9,421 — — 9,421 Total recurring fair value measurements $ 9,421 $ 344,105 $ 116 $ 353,642 Nonrecurring fair value measurements * Impaired loans $ — $ — $ 3,055 $ 3,055 Mortgage servicing rights — — 5 5 Total nonrecurring fair value measurements $ — $ — $ 3,060 $ 3,060 * impairment December 31, 2017 Quoted in active markets for identical assets (Level 1) Significant other observable input (Level 2) Significant unobservable inputs (Level 3) Balance at end of period Recurring fair value measurements Securities available-for-sale U.S. Government agency securities $ — $ 70,524 $ — $ 70,524 State and municipal securities — 76,804 — 76,804 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 142,703 — 142,703 Collateralized mortgage obligations (CMOs) — 76,302 — 76,302 Pooled trust preferred securities — — 215 215 Corporate debt securities — 8,022 — 8,022 Total securities available-for-sale — 374,355 215 374,570 Equity securities 4,975 — — 4,975 Total recurring fair value measurements $ 4,975 $ 374,355 $ 215 $ 379,545 Nonrecurring fair value measurements * Impaired loans $ — $ — $ 1,067 $ 1,067 Mortgage servicing rights — — 34 34 Total nonrecurring fair value measurements $ — $ — $ 1,101 $ 1,101 * impairment The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which QNB has utilized Level 3 inputs to determine fair value: Quantitative information about Level 3 fair value measurements December 31, 2018 Fair Valuation techniques Unobservable input Value of values Impaired loans $ 1,632 Appraisal (1) Appraisal adjustments (2) -20% to -90% Liquidation expenses (3) -10% Impaired loans 1,415 Financial statement values for UCC collateral Financial statement value discounts (5) -25% to -100% Impaired loans 8 Used commercial vehicle guides Guide value discounts (4) -10 % Mortgage servicing rights 5 Discounted cash flow Remaining term 2 - 26 yrs Discount rate 12.0% to 12.5% Quantitative information about Level 3 fair value measurements December 31, 2017 Fair Valuation techniques Unobservable input Value of values Impaired loans $ 943 Appraisal (1) Appraisal adjustments (2) -15% to -90% Liquidation expenses (3) -10% Impaired loans 124 Financial statement values for UCC collateral Financial statement value discounts (5) -25% to -50% Mortgage servicing rights 34 Discounted cash flow Remaining term 2 - 26 yrs Discount rate 13.0% to 15.0% (1) Fair value is primarily determined through appraisals of the underlying collateral by independent parties, which generally includes various level 3 inputs which are not always identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and the age of the appraisal. The range is presented as a percent of the initial appraised value. (3) Appraisals and pending agreements of sale are adjusted by management for estimated liquidation expenses. The range is presented as a percent of the initial appraised value. (4) If lendable value (lower than wholesale) is utilized then no additional discounts are taken. If lendable value is not provided, then additional discounts are applied. (5) Values obtained from financial statements for UCC collateral (fixed assets and inventory) are discounted to estimated realizable liquidation value. The following table presents additional information about the securities available-for-sale measured at fair value on a recurring basis and for which QNB utilized significant unobservable inputs (Level 3 inputs) to determine fair value for the year ended December 31: Fair value measurements using significant unobservable inputs (Level 3) Securities available-for-sale 2018 2017 Balance, beginning of year $ 215 $ 2,281 Payments received (119 ) (55 ) Sale of securities — (2,026 ) Total gains or losses (realized/unrealized) Included in earnings — (15 ) Included in other comprehensive income 20 30 Transfers in and/or out of Level 3 — — Balance, end of year $ 116 $ 215 There were also no transfers in or out of level 3 for the same periods. There was $0 and $15,000 in losses included in earnings attributable to the change in unrealized gains or losses relating to the available-for-sale securities above with fair value measurements utilizing significant unobservable inputs for the years ended December 31, 2018 and 2017, respectively. The Level 3 securities consist of one collateralized debt obligation security (“PreTSL”), which is backed by trust preferred securities issued by banks. At December 31, 2018 was not active and markets for similar securities also are not active. The new issue market is also inactive and there are currently very few market participants who are willing and or able to transact for these securities. Given conditions in the debt markets today and the absence of observable transactions in the secondary and new issue markets, we determined: • The few observable transactions and market quotations that are available are not reliable for purposes of determining fair value at December 31, 2018 • An income valuation approach technique (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs will be equally or more representative of fair value than the market approach valuation technique used at prior measurement dates; and • PreTSLs will be classified within Level 3 of the fair value hierarchy because significant adjustments are required to determine fair value at the measurement date. The Bank used an independent third party to value this security using a discounted cash flow analysis. Based on management’s review of the bond’s four underlying issuers, there are no expected credit losses or prepayments; cashflows used were contractual based on the Bloomberg YA screen. The assumed cashflows have been discounted using and estimated market discount rate based on the 30-year swap rate. The 30-year is used as the reference rate since it is indicative of market expectation for short-term rates in the future. This is consistent with the 30-year nature of PreTSL securities, which are priced using the 3-month LIBOR as a reference rate. The discount rate of 5.75% includes the risk-free rate, a credit component and a spread for illiquidity. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of QNB’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between QNB’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of each major classification of financial instrument and non-financial asset at December 31, 2018 and 2017: Cash and cash equivalents, accrued interest receivable and accrued interest payable (carried at cost): The carrying amounts reported in the balance sheet approximate those assets’ fair value. Investment securities: trading (carried at fair value), available-for-sale (carried at fair value) and held-to-maturity (carried at amortized cost): The fair value of securities are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Level 2 debt securities are valued by a third-party pricing service commonly used in the banking industry. Level 2 fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution date, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) were used to support fair values of certain Level 3 investments. Restricted investment in bank stocks (carried at cost): The fair value of stock in Atlantic Community Bankers Bank and the Federal Home Loan Bank and VISA Class B is the carrying amount, based on redemption provisions, and considers the limited marketability of such securities. Loans Held for Sale (carried at lower of cost or fair value): The fair value of loans held for sale is determined, when possible, using quoted secondary market prices. If no such quoted prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for the specific attributes of that loan. Loans Receivable (carried at cost): The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Impaired Loans (generally carried at fair value): Impaired loans are loans in which the Company has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. None of the impaired loans at December 31, 2018 or 2017, respectively, that had specific reserves required were partially charged-off at year end. Mortgage Servicing Rights (carried at lower of cost or fair value): The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The mortgage servicing rights are stratified into tranches based on predominant characteristics, such as interest rate, loan type and investor type. The valuation incorporates assumptions that market participants would use in estimating future net servicing income. Deposit liabilities (carried at cost): The fair value of deposits with no stated maturity (e.g. demand deposits, interest-bearing demand accounts, money market accounts and savings accounts) are by definition, equal to the amount payable on demand at the reporting date (i.e. their carrying amounts). This approach to estimating fair value excludes the significant benefit that results from the low-cost funding provided by such deposit liabilities, as compared to alternative sources of funding. Deposits with a stated maturity (time deposits) have been valued using the present value of cash flows discounted at rates approximating the current market for similar deposits. Short-term borrowings (carried at cost): The carrying amount of short-term borrowings approximates their fair values. Off-balance-sheet instruments (disclosed at cost): The fair value for the Bank’s off-balance sheet instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of the respective period ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year end. The estimated fair values and carrying amounts of the Company’s financial and off-balance sheet instruments are summarized as follows: Fair value measurements December 31, 2018 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 13,458 $ 13,458 $ 13,458 $ — $ — Investment securities: Available-for-sale 344,221 344,221 — 344,105 116 Equity 9,421 9,421 9,421 — — Restricted investment in bank stocks 797 797 — 797 — Net loans 776,614 771,685 — — 771,685 Mortgage servicing rights 451 604 — — 604 Accrued interest receivable 2,852 2,852 — 2,852 — Financial liabilities Deposits with no stated maturities $ 791,810 $ 791,810 $ 791,810 $ — $ — Deposits with stated maturities 223,788 220,876 — 220,876 — Short-term borrowings 50,872 50,872 50,872 — — Accrued interest payable 449 449 — 449 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — 31 — 31 — Fair value measurements December 31, 2017 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 16,331 $ 16,331 $ 16,331 $ — $ — Investment securities: Available-for-sale 374,570 374,570 — 374,355 215 Equities 4,975 4,975 4,975 — — Restricted investment in bank stocks 1,501 1,501 — 1,501 — Net loans 725,442 727,341 — — 727,341 Mortgage servicing rights 483 585 — — 585 Accrued interest receivable 3,545 3,545 — 3,545 — Financial liabilities Deposits with no stated maturities $ 768,766 $ 768,766 $ 768,766 $ — $ — Deposits with stated maturities 225,182 223,325 — 223,325 — Short-term borrowings 55,756 55,756 55,756 — — Accrued interest payable 384 384 — 384 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — — — — —

Note 18 - Parent Company Financ

Note 18 - Parent Company Financial Information	12 Months Ended
	Dec. 31, 2018
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]
Parent Company Financial Information	Note 18 - Parent Company Financial Information Condensed financial statements of QNB Corp. only: Balance Sheets December 31, 2018 2017 Assets Cash and cash equivalents $ 72 $ 4,667 Investment equity securities 9,421 4,975 Investment in subsidiary 94,477 89,258 Other assets 379 74 Total assets $ 104,349 $ 98,974 Liabilities Other liabilities $ 1 $ 404 Shareholders' equity 104,348 98,570 Total liabilities and shareholders' equity $ 104,349 $ 98,974 Statements of Income Year ended December 31, 2018 2017 2016 Dividends from subsidiary $ 4,027 $ 3,382 $ 3,093 Interest, dividend and other income 266 183 171 Securities gains (79 ) 1,477 566 Net unrealized loss on investment equity securities (336 ) — — Total income 3,878 5,042 3,830 Expenses 513 301 295 Income before applicable income taxes and equity in undistributed income of subsidiary 3,365 4,741 3,535 Provision for income taxes (256 ) 554 159 Income before equity in undistributed income of subsidiary 3,621 4,187 3,376 Equity in undistributed income of subsidiary 7,714 4,102 5,548 Net income $ 11,335 $ 8,289 $ 8,924 Statements of Comprehensive Income (in thousands) Year ended December 31, 2018 2017 2016 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 $ 12,892 $ 1,557 $ 11,335 $ 14,189 $ 5,900 $ 8,289 $ 11,978 $ 3,054 $ 8,924 Other comprehensive (loss) income: Net unrealized holding (losses) gains on securities: Unrealized holding (losses) gains arising during the period (3,156 ) (663 ) (2,493 ) 1,002 341 661 (4,192 ) (1,426 ) (2,766 ) Reclassification adjustment for gains included in net income (3 ) (1 ) (2 ) (1,500 ) (510 ) (990 ) (674 ) (229 ) (445 ) Other comprehensive loss (3,159 ) (664 ) (2,495 ) (498 ) (169 ) (329 ) (4,866 ) (1,655 ) (3,211 ) Total comprehensive income $ 9,733 $ 893 $ 8,840 $ 13,691 $ 5,731 $ 7,960 $ 7,112 $ 1,399 $ 5,713 Statements of Cash Flows Year ended December 31, 2018 2017 2016 Operating Activities Net income $ 11,335 $ 8,289 $ 8,924 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income from subsidiary (7,714 ) (4,102 ) (5,548 ) Net securities losses (gains) 79 (1,477 ) (566 ) Net unrealized loss on investment equity securities 336 — — Stock-based compensation expense 117 102 88 (Decrease) increase in other liabilities (403 ) 335 (67 ) Decrease (increase) in other assets (147 ) (3 ) 3 Deferred income tax provision (158 ) 98 14 Net cash provided by operating activities 3,445 3,242 2,848 Investing activities Purchase of investment equity securities (9,763 ) (9,998 ) (7,327 ) Proceeds from sale of investment equity securities 4,902 14,422 7,137 Net cash used by investing activities (4,861 ) 4,424 (190 ) Financing activities Cash dividend paid (3,863 ) (3,731 ) (3,556 ) Proceeds from issuance of common stock 684 672 862 Tax benefit from exercise of stock options — — 17 Net cash used by financing activities (3,179 ) (3,059 ) (2,677 ) (Decrease) increase in cash and cash equivalents (4,595 ) 4,607 (19 ) Cash and cash equivalents at beginning of year 4,667 60 79 Cash and cash equivalents at end of year $ 72 $ 4,667 $ 60

Note 19 - Regulatory Restrictio

Note 19 - Regulatory Restrictions	12 Months Ended
	Dec. 31, 2018
Banking And Thrift [Abstract]
Regulatory Restrictions	Note 19 - 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 and Federal 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 the Company, unless such loans are collateralized by specific obligations. Both the Company and the Bank are subject to regulatory capital requirements administered by Federal bank regulatory 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 final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (“Basel III”) became effective for QNB on January 1, 2015, with full compliance with all the of final rule’s requirements phased in over a multi-year schedule, to be fully phased-in by January 1, 2019. Under the final rules, minimum requirements increased for both the quantity and quality of capital held by banks. The rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A new capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer will be phased in beginning January 1, 2016, at 0.625% of risk-weighted assets and increase each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. Strict eligibility criteria for regulatory capital instruments were also implemented. The final rules also revised the definition and calculation of Tier 1 capital, Total Capital, and risk-weighted assets. On May 24, 2018, the Economic Growth, Regulatory Relief, and Consumer Protection Act (the “Act”), was enacted into law. Section 214 of the Act prescribes that the Federal banking agencies may only require depository institutions to apply a heightened risk-weight to exposures that are “high volatility commercial real estate” (“HVCRE”) if the exposures meet the definition of a HVCRE Acquisition, Development or Construction (“ADC”) loan as set forth in that section. The new definition applies to a narrower scope of exposures. The new definition of HVCRE ADC loan excludes loans made prior to January 1, 2015, amends the loan-to-value/capital contribution exemption, specifies the loan must primarily finance the property, has the purpose of providing financing to acquire, develop or improve such real property in income-producing property and is dependent upon future income or sales proceeds or refinancing of such property to repay the loan. Once the property sufficiently produces cashflows to support the debt service and expenses in accordance with the bank’s underwriting criteria for permanent financing, the loan meets the exemption as a HVCRE ADC loan. The new definition is applicable for QNB’s reporting of its Regulatory Capital Ratios for 2018 and had a positive impact of approximately five basis points to the ratios. The capital amounts and classification are also subject to qualitative judgments by the regulators. Management believes, as of December 31, 2018, that the Company and the Bank met capital adequacy requirements to which they were subject. The Bank is presently considered to be “well capitalized” under the regulatory framework. To be categorized as well capitalized, the Company and the Bank must maintain minimum ratios set forth in the table below. The Company and the Bank’s actual capital amounts and ratios are presented as follows: Capital levels Actual Adequately capitalized Well capitalized As of December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 120,379 13.21 % $ 72,910 8.00 % $ 91,137 10.00 % Bank 110,508 12.52 70,619 8.00 88,273 10.00 Tier I capital (to risk-weighted assets): Consolidated 111,472 12.23 54,682 6.00 54,682 6.00 Bank 101,601 11.51 52,964 6.00 70,619 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 111,472 12.23 41,012 4.50 N/A N/A Bank 101,601 11.51 39,723 4.50 57,378 6.50 Tier I capital (to average assets): Consolidated 111,472 9.40 47,458 4.00 N/A N/A Bank 101,601 8.64 47,045 4.00 58,807 5.00 Capital levels Actual Adequately capitalized Well capitalized As of December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 110,352 12.52 % $ 70,520 8.00 % $ 88,150 10.00 % Bank 101,040 11.67 69,277 8.00 86,596 10.00 Tier I capital (to risk-weighted assets): Consolidated 102,438 11.62 52,890 6.00 52,890 6.00 Bank 93,126 10.75 51,957 6.00 69,277 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 102,438 11.62 39,668 4.50 N/A N/A Bank 93,126 10.75 38,968 4.50 56,287 6.50 Tier I capital (to average assets): Consolidated 102,438 8.88 46,149 4.00 N/A N/A Bank 93,126 8.14 45,761 4.00 57,201 5.00

Note 20 - Consolidated Quarterl

Note 20 - Consolidated Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information	Note 20 - Consolidated Quarterly Financial Data (Unaudited) The unaudited quarterly results of operations for the years ended 2018 and 2017 are in the following table: Quarters Ended 2018 Quarters Ended 2017 March 31 June 30 Sept. 30 Dec. 31 March 31 June 30 Sept. 30 Dec. 31 Interest income $ 10,509 $ 10,562 $ 10,926 $ 11,203 $ 9,136 $ 9,192 $ 9,830 $ 9,944 Interest expense 1,718 1,862 2,222 2,383 1,256 1,334 1,515 1,575 Net interest income 8,791 8,700 8,704 8,820 7,880 7,858 8,315 8,369 Provision for (credit to) loan losses 188 187 568 187 300 300 100 700 Non-interest income 1,067 1,454 2,227 144 1,990 1,615 1,470 1,812 Non-interest expense 6,178 6,533 6,385 6,789 5,588 5,942 6,191 5,999 Income before income taxes 3,492 3,434 3,978 1,988 3,982 3,231 3,494 3,482 Provision for income taxes 557 572 767 (339 ) 1,122 845 940 2,993 Net Income $ 2,935 $ 2,862 $ 3,211 $ 2,327 $ 2,860 $ 2,386 $ 2,554 $ 489 Earnings Per Share - basic * $ 0.85 $ 0.83 $ 0.93 $ 0.67 $ 0.84 $ 0.70 $ 0.74 $ 0.14 Earnings Per Share - diluted * $ 0.85 $ 0.82 $ 0.92 $ 0.67 $ 0.83 $ 0.69 $ 0.74 $ 0.14 * Due to rounding, quarterly earnings per share may not sum to annual earnings per share

Note 1 - Summary of Significa_2

Note 1 - Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. The consolidated entity is referred to herein as “QNB”. All significant inter-company accounts and transactions have been eliminated in the consolidated financial statements. Tabular information, other than share and per share data, is presented in thousands of dollars. Certain prior period amounts have been reclassified to conform with the current year’s presentation.
Use of Estimates	Use of Estimates These statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and predominant practices within the banking industry. The preparation of these consolidated financial statements requires QNB to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. QNB evaluates estimates on an on-going basis. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the determination of the valuation of other real estate owned, the fair value of financial instruments, other-than-temporary impairment of investment securities, the determination of impairment of restricted bank stock and the valuation of deferred tax assets and income taxes. QNB bases its estimates on historical experience and various other factors and assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Significant Group Concentrations of Credit Risk	Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within Bucks, Montgomery and Lehigh Counties in southeastern Pennsylvania. Note 4 discusses the types of investment securities in which the Company invests. Note 5 discusses the types of lending in which the Company engages. The Company does not have any significant concentrations to any one industry or customer. Although the Company has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by the region’s economy.
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of the statement of cash flows, cash and cash equivalents consist of cash on hand, cash items in process of collection, amounts due from banks, interest-bearing deposits in the Federal Reserve Bank and other banks and Federal funds sold. QNB maintains a portion of its interest-bearing deposits at various commercial financial institutions. At times, the balances exceed the FDIC insured limits.
Trading Securities and Investment Securities	Trading Securities The Company engages in trading activities for its own account. Interest and dividends are included in interest income. Debt and equity securities that are bought and held principally for the purpose of selling in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Investment Securities Investment debt securities that QNB has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Interest is included in interest income. Debt securities not classified as either held-to-maturity securities or trading securities are classified as available-for-sale debt securities and reported at fair value, with unrealized gains and losses, net of tax, excluded from earnings and reported in other comprehensive income or loss, a separate component of shareholders’ equity. Management determines the appropriate classification of securities at the time of purchase. Available-for-sale debt securities include securities that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in credit ratings, changes in market interest rates and related changes in the securities’ prepayment risk or to meet liquidity needs. Premiums and discounts on debt securities are recognized in interest income using a constant yield method. Gains and losses on sales of available-for-sale securities are recorded on the trade date and are computed on the specific identification method and included in non-interest income. Equity investments with readily determinable fair values are measured at fair value. Beginning January 1, 2018, the changes in fair value are recognized in net income. Dividends are included in interest income.
Other-than-Temporary Impairment of Investment Securities	Other-than-Temporary Impairment of Investment Securities Securities are evaluated periodically to determine whether a decline in their value is other-than-temporary. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other-than-temporary. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support realizable value equal to or greater than carrying value of the investment. For equity securities, once a decline in value is determined to be other-than-temporary, the value of the equity security is reduced to fair value and a corresponding charge to earnings is recognized. Temporary improvements in the fair value on equity securities with an OTTI change would not be recognized. The Company follows the accounting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320-10 as it relates to the recognition and presentation of other-than-temporary impairment (“OTTI”). This accounting guidance specifies that (a) if a company does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held to maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the non-credit portion of a previous other-than-temporary impairment would be amortized prospectively over the remaining life of the security based on the timing of future estimated cash flows of the security.
Restricted Investment in Bank Stock	Restricted Investment in Bank Stock Restricted bank stock is comprised of restricted stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) in the amount of $785,000, the Atlantic Community Bankers Bank in the amount of $12,000 and VISA Class B stock with a carrying cost of $0 at December 31, 2018. Federal law requires a member institution of the FHLB to hold stock of its district bank according to a predetermined formula. These restricted securities are carried at cost. The Bank owns 6,502 shares of Visa Class B stock, which was necessary to participate in Visa services in support of the Bank’s credit card, debit card, and related payment programs (permissible activities under banking regulations) as a member institution. Following the resolution of Visa’s covered litigation, shares of Visa’s Class B stock will be converted to Visa Class A shares using a conversion factor (1.6298 as of December 31, 2018), which is periodically adjusted to reflect VISA’s ongoing litigation costs. There is a very limited market for this stock, as only current owners of Class B shares are permitted to transact in Class B. Due to the lack of orderly trades and public information of such trades, Visa Class B does not have a readily determinable fair value. These restricted investments are carried at cost and evaluated for OTTI periodically. As of December 31, 2018, there was no OTTI associated with these shares.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the principal amount outstanding, net of deferred loan fees and costs. Interest income is accrued on the principal amount outstanding. Loan origination and commitment fees and related direct costs are deferred and amortized to income over the term of the respective loan and loan commitment period as a yield adjustment. Loans held-for-sale consist of residential mortgage loans and are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recognized through a valuation allowance charged to income. Gains and losses on residential mortgages held-for-sale are included in non-interest income.
Non-Performing Assets	Non-Performing Assets Non-performing assets are comprised of accruing loans past due 90 days or more, non-accrual loans and investment securities, restructured loans, other real estate owned and repossessed assets. Non-accrual loans and investment securities are those on which the accrual of interest has ceased. Loans are placed on non-accrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and collateral is insufficient to cover principal and interest. Interest accrued, but not collected at the date a loan is placed on non-accrual status, is reversed and charged against interest income. Subsequent cash receipts are applied either to the outstanding principal or recorded as interest income, depending on management’s assessment of the ultimate collectability of principal and interest. Loans are returned to an accrual status when the borrower’s ability to make periodic principal and interest payments has returned to normal (i.e. brought current with respect to principal or interest or restructured) and the paying capacity of the borrower and/or the underlying collateral is deemed sufficient to cover principal and interest. From time to time, QNB may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers that may be experiencing financial difficulties. A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions may include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates to less than the current market rate for new obligations with similar risk. Loans classified as TDRs are considered non-performing and are also designated as impaired. Accounting for impairment in the performance of a loan is required when it is probable that all amounts, including both principal and interest, will not be collected in accordance with the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, at the loan’s observable market price or the fair value of the collateral if the loans are collateral dependent. Impairment criteria are applied to the loan portfolio exclusive of smaller homogeneous loans such as residential mortgage and consumer loans which are evaluated collectively for impairment. Loans are fully charged-off or charged down to net realizable value (fair value of collateral less estimated costs to sell) when deemed uncollectible due to bankruptcy or other factors, or when they reach a defined number of days past due based on loan product, industry practice, terms and other factors. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates.
Allowance for Loan Losses	Allowance for Loan Losses QNB maintains an allowance for loan losses, which is intended to absorb probable known and inherent losses in the outstanding loan portfolio. The allowance is reduced by actual credit losses and is increased by the provision for loan losses and recoveries of previous losses. The provisions for loan losses are charged to earnings to bring the total allowance for loan losses to a level considered necessary by management. The allowance for loan losses is based on management’s continuing review and evaluation of the loan portfolio. The level of the allowance is determined by assigning specific reserves to individually identified problem credits and general reserves to all other loans. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The portion of the allowance that is allocated to internally criticized and non-accrual loans is determined by estimating the inherent loss on each credit after giving consideration to the value of underlying collateral. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates. These loss rates are based on a three-year history of charge-offs and are more heavily weighted for recent experience for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: • Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices. • External factor effects, such as legal and regulatory requirements. • National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. • Nature and volume of the portfolio including growth. • Experience, ability, and depth of lending management and staff. • Volume and severity of past due, classified and nonaccrual loans. • Quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors. • Existence and effect of any concentrations of credit and changes in the level of such concentrations. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Management emphasizes loan quality and close monitoring of potential problem credits. Credit risk identification and review processes are utilized in order to assess and monitor the degree of risk in the loan portfolio. QNB’s lending and credit administration staff are charged with reviewing the loan portfolio and identifying changes in the economy or in a borrower’s circumstances which may affect the ability to repay debt or the value of pledged collateral. A loan classification and review system exists that identifies those loans with a higher than normal risk of collection. Each commercial loan is assigned a grade based upon an assessment of the borrower’s financial capacity to service the debt and the presence and value of collateral for the loan. An independent loan review group tests risk assessments and evaluates the adequacy of the allowance for loan losses. Management meets monthly to review the credit quality of the loan portfolio and quarterly to review the allowance for loan losses. In addition, various regulatory agencies, as an integral part of their examination process, periodically review QNB’s allowance for loan losses. Such agencies may require QNB to recognize additions to the allowance based on their judgments using information available to them at the time of their examination. Management believes that it uses the best information available to make determinations about the adequacy of the allowance and that it has established its existing allowance for loan losses in accordance with GAAP. If circumstances differ substantially from the assumptions used in making determinations, future adjustments to the allowance for loan losses may be necessary and results of operations could be affected. Because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that increases to the allowance will not be necessary should the quality of any loans deteriorate as a result of the factors discussed above.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Servicing Assets	Servicing Assets Servicing assets are recognized as separate assets when rights are acquired through the sale of financial assets. When mortgage loans are sold, a portion of the cost of originating the loan is allocated to the servicing rights based on relative fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The Company subsequently measures servicing rights using the amortization method where servicing rights are amortized in proportion to and over the period of estimated net servicing income. On a quarterly basis, an independent third party determines the fair value of QNB’s servicing assets. These assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranches. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the valuation allowance may be recorded as an increase to income. Capitalized servicing rights are reported in other assets and are amortized into other non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as other non-interest income when earned and netted against the amortization of mortgage servicing rights.
Foreclosed Assets	Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. At both December 31, 2018 and 2017, the Company had no foreclosed assets.
Premises and Equipment	Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated principally on an accelerated or straight-line basis over the estimated useful lives of the assets, or the shorter of the estimated useful life or lease term for leasehold improvements, as follows: Buildings 10 to 39 years Furniture and equipment 3 to 15 years Leasehold improvements 5 to 30 years Expenditures for maintenance and repairs are charged to operations as incurred. Gains or losses upon disposition are reflected in earnings as realized.
Bank-Owned Life Insurance	Bank-Owned Life Insurance The Bank invests in bank-owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a select group of employees. The Bank is the owner and beneficiary of the policies. Income from the increase in cash surrender value of the policies as well as the receipt of death benefits is included in non-interest income on the consolidated statement of income. The BOLI policies are an asset that can be liquidated, if necessary, with associated tax costs. However, QNB intends to hold these policies and, accordingly, has not provided for deferred income taxes on the earnings from the increase in cash surrender value. The Company follows the accounting guidance for postretirement benefit aspects of endorsement split-dollar life insurance arrangements which applies to life insurance arrangements that provide an employee with a specified benefit that is not limited to the employee’s active service period, including certain bank-owned life insurance policies. It requires an employer to recognize a liability and related compensation costs for future benefits that extend to postretirement periods. The expense recorded during 2018, 2017 and 2016 was approximately $53,000, $23,000 and $94,000, respectively, and is included in non-interest expense under salaries and benefits expense. The decrease in 2017 is related to a death claim, reducing the post-retirement liability.
Stock-Based Compensation	Stock-Based Compensation At December 31, 2018, QNB sponsored stock-based compensation plans, administered by a Board committee, under which both qualified and non-qualified stock options may be granted periodically to certain employees. QNB accounts for all awards granted under stock-based compensation plans in accordance with FASB ASC 718, Compensation - Stock Compensation Stock-based compensation expense was approximately $117,000, $102,000 and $88,000 for the years ended December 31, 2018, 2017 and 2016, respectively. There were $12,000, $19,000 and $20,000 in tax benefits recognized related to the nonqualified compensation and disqualifying dispositions for the years ended December 31, 2018, 2017 and 2016, respectively. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the option and each vesting date. QNB estimated the fair value of stock options on the date of the grant using the Black-Scholes option pricing model. The model requires the use of numerous assumptions, many of which are highly subjective in nature. The following assumptions were used in the option pricing model in determining the fair value of options granted during the periods presented. Year ended December 31, 2018 2017 2016 Risk free interest rate 2.15 % 1.48 % 1.14 % Dividend yield 1.24 % 3.19 % 3.78 % Volatility 18.1 % 17.9 % 22.6 % Expected life (years) 4.2 4.2 4.2 The weighted average fair value per share of options granted during 2018, 2017 and 2016 was $5.29, $3.88 and $3.79, respectively. The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued. Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and expected lives of the options.
Income Taxes	Income Taxes QNB accounts for income taxes under the asset/liability method in accordance with income tax accounting guidance, ASC 740 - Income Taxes In connection with the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions, QNB has evaluated its tax positions as of December 31, 2018. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has more than a 50 percent likelihood of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Under the “more-likely-than-not” threshold guidelines, QNB believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. As of December 31, 2018, QNB had no material unrecognized tax benefits or accrued interest and $8,000 in tax penalties. QNB’s policy is to account for interest as a component of interest expense and penalties as a component of other expense. The Company and its subsidiary are subject to U.S. Federal income tax as well as income tax of the Commonwealth of Pennsylvania and the State of New Jersey. Tax years from 2015 to date remain subject to examination by the tax authorities.
Treasury Stock	Treasury Stock Common stock shares repurchased are recorded as treasury stock at cost.
Earnings Per Share	Earnings Per Share Basic earnings per share excludes any dilutive effects of options and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share gives effect to all dilutive potential common shares that were outstanding during the period. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. Treasury shares are not deemed outstanding for earnings per share calculations.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business entity during a period due to transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. Comprehensive income (loss) consists of net income and other comprehensive income (loss). For QNB, the primary component of other comprehensive income (loss) is the unrealized holding gains or losses on available-for-sale investment securities and unrealized losses on available-for-sale investment securities related to factors other than credit on debt securities.
Revenue Recognition	Revenue Recognition The primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method. The recognition of revenues from interest earning assets is based upon formulas from underlying loan agreements, securities contracts or other similar contracts. The Company recognizes non-interest revenue from contracts with customers in the consolidated statements of income per Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) (ASC 606), as it is earned and when collectability is reasonably assured. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of income are as follows: • Fees for services to customers—fees include service charges on deposits which are included as liabilities in the consolidated statement of financial position and consist of transaction-based fees, stop payment fees, Automated Clearing House (ACH) fees, account maintenance fees, and overdraft services fees for various retail and business checking customers. These fees are charged as earned on the day of the transaction or within the month of the service, with the exception of Enhanced Account Analysis Fees, which are calculated on the previous month’s activity and assessed in the following month. The Enhanced Account Analysis Fees are currently being accrued; the revenue is currently being recorded in the month it is earned. Service charges on deposits are withdrawn directly from the customer’s account balance. • ATM and debit card – fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. • Retail brokerage and advisory—fee income and related expenses are accrued monthly to properly record the revenues in the month earned. Advisory fees are collected in advance on a quarterly basis. These advisory fees are recorded in the first month of the quarter for which the service is being performed. Fees that are transaction based are recognized at the point in time that the transaction is executed (i.e. trade date). • Merchant – QNB earns interchange fees from credit/debit cardholder transactions conducted through VISA/MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized monthly, concurrently with the transaction processing services provided to the cardholder within the month. All other non-interest income is recognized on the accrual basis of accounting as services are provided or as transactions occur.
Advertising Costs	Advertising Costs Advertising costs are recorded in the period they are incurred within operating expenses in non-interest expense in the consolidated statements of income.
Financial Instruments with Off-Balance-Sheet Risk	Financial Instruments with Off-Balance-Sheet Risk The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of these instruments. The Company uses the same credit policies in making commitments and contractual obligations as it does for on-balance-sheet instruments. The Company reflects its estimate of credit risk for these instruments in other liabilities on the consolidated balance sheet with the corresponding expense recorded in other operating expenses in the consolidated statement of income.
Subsequent Events	Subsequent Events QNB has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2018 through the date the consolidated financial statements are being issued for items that should potentially be recognized or disclosed in these consolidated financial statements. On September 30, 2018, the Deposit Insurance Fund Reserve Ratio reached 1.36%. Because the reserve ratio has exceeded 1.35%, a change impacting QNB’s deposit insurance assessment occurred under the FDIC regulations: Small banks (total consolidated assets of less than $10 billion) were awarded assessment credits for the portion of their assessments that contributed to the growth in the reserve ratio from 1.15% to 1.35%, to be applied when the reserve ratio is at least 1.38%. On January 24, 2019, QNB was notified by the FDIC that its preliminary estimated credit was approximately $234,000. QNB offers a Dividend Reinvestment and Stock Purchase Plan (the “Plan”) to provide participants a convenient and economical method for investing cash dividends paid on the Company’s common stock in additional shares at a discount. QNB plans to add an additional 300,000 shares to the Plan in 2019.
Recent Accounting Pronouncements	Recent Accounting Pronouncements QNB adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), effective January 1, 2018. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised services in an amount that reflects the consideration the entity expects to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. QNB applied the five-step method outlined in ASU 2014-09 to all revenue streams within the scoped of the ASU and elected the modified retrospective implementation method. Substantially all of QNB’s interest income and non-interest income were not impacted by the adoption of this ASU because either the revenue from those contracts with customers is covered by other guidance in U.S. GAAP or the revenue recognition outcomes were similar to our current revenue recognition practices. We reviewed noninterest sources of income and related contracts to document the impact of the new standard on our service offerings that are in the scope of the ASU including: service charges on deposits; ATM and debit card income; retail brokerage and advisory fees; merchant income; credit card income; sale of checks to depositors; miscellaneous fees; and sale of OREOs. Based on our analysis, we concluded that the adoption of ASC 606 did not change the timing and pattern of revenue recognition related to non-interest income sources and only required additional disclosures. In addition, we reviewed, and where necessary, enhanced our business processes, systems and controls to support recognition and disclosures under the new standard. The implementation of the guidance had no material impact on the measurement or recognition of revenue of prior periods, however, additional disclosures have been added in accordance with the ASU. See Revenue Recognition in this Note 1. QNB adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, effective January 1, 2018. This ASU was issued by the Financial Accounting Standards Board (FASB) on January 5, 2016 to enhance the reporting model for financial instruments to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The FASB issued ASU 2018-03 in February 2018 which provides technical corrections and improvements to ASU 2016-01. QNB adopted the applicable requirements under these ASUs as follows: • Equity investments with readily determinable fair values must be measured at fair value with changes in fair value recognized in net income. • Equity investments without readily determinable fair values must be measured at either fair value or at cost adjusted for changes in observable prices minus impairment. Changes in value under either of these methods would be recognized in net income. The Company chose to continue to measure equity investments without readily determinable fair value at cost adjusted for changes in observable prices minus impairment. The Company will reassess at each reporting period whether these equity investments without readily determinable fair values qualify to be measured in accordance with the practical expedient to estimate fair value; if the Company elects such treatment, the election would be irrevocable. Any gains or losses resulting from changes in the fair value would be recognized in net income. • Entities that record financial liabilities at fair value due to a fair value option election must recognize changes in fair value in other comprehensive income if it is related to instrument-specific credit risk. • Entities must assess whether a valuation allowance is required for deferred tax assets related to available-for-sale debt securities. QNB used the modified retrospective method for transition in which the cumulative effect will be recognized at the date of adoption with no restatement of comparative periods presented. QNB reclassified a net loss of $254,000 from accumulated other comprehensive loss to retained earnings on January 1, 2018. Based on an evaluation of our deferred tax asset and considering the effect of the new guidance, management believes that deferred tax assets related to AFS debt securities are realizable and no valuation allowance would be required. Management believes the potential effect of using exit versus entry price is most relevant for fair value disclosures of loans, which considers the impact of credit risk on fair value. QNB adopted ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 202) during the first quarter of 2018. The amendments in this ASU, issued by the FASB on February 2, 2018, affect any entity that is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Reform Act and eliminates the stranded tax effects resulting from the 2017 Tax Reform Act. The Company chose to early adopt the amendments in this update as permitted. QNB reclassed $805,000 from accumulated other comprehensive loss to retained earnings in the consolidated statement of shareholders’ equity during the first quarter of 2018. On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This new standard on accounting for leases introduces a lessee model that brings most leases on the balance sheet but recognizes expenses in the income statement similar to how items are recorded today. The new standard eliminates the requirement in current U.S. GAAP for an entity to use bright-line tests in determining lease classification. The ASU also eliminates the current real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. All entities will classify leases to determine how to recognize the related revenue and expense and this classification will affect amounts that lessors record on the balance sheet. The new guidance will be effective for public companies for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. In 2018, the FASB added a transition option for all entities to help reduce the cost and complexity of implementation. Under this transition option, entities can opt to not apply the new guidance, including disclosure requirements, in the comparative periods they present in their financial statements in the year of adoption. QNB does not expect the adoption of ASU 2016-02 to have a material impact on net income; however, as of January 1, 2019, QNB expects to record a right of use asset of approximately $2,005,000, a finance lease liability of approximately $1,983,000, an operating lease liability of approximately $304,000, and the reversal of a deferred rent liability of approximately $283,000. On June 16, 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The new guidance requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. To that end, the new guidance: • Eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, reflects an organization’s current estimate of all expected credit losses over the contractual term of its financial assets • Broadens the information an entity can consider when measuring credit losses to include forward-looking information • Increases usefulness of the financial statements by requiring timely inclusion of forecasted information in forming expectations of credit losses • Increases comparability of purchased financial assets with credit deterioration (PCD assets) with other purchased assets that do not have credit deterioration as well as originated assets because credit losses that are expected will be recorded through an allowance for credit losses for all assets • Increases users’ understanding of underwriting standards and credit quality trends by requiring additional information about credit quality indicators by year of origination (vintage) • For available-for-sale debt securities, aligns the income statement recognition of credit losses with the reporting period in which changes occur by recording credit losses (and subsequent changes in credit losses) through an allowance rather than a write down The new guidance affects organizations that hold financial assets and net investments in leases that are not accounted for at fair value with changes in fair value reported in net income. The new guidance affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. QNB is currently assessing the potential impact on our consolidated financial statements; however, due to the significant differences in the revised guidance from existing GAAP, the implementation of this guidance may result in material changes in our accounting for credit losses on financial instruments. On March 30, 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. This ASU is intended to enhance the accounting for the amortization of premiums for purchased callable debt securities and will require premiums to be amortized to the earliest call date. For public companies, the ASU is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual reporting periods. QNB does not anticipate this new standard will have a material impact on its consolidated financial statements as it already uses the earliest call date to amortize premiums on callable debt securities. On August 28, 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement. This ASU changes the fair value measurement disclosure requirements of ASC 820. The amendments in this ASU are the result of a broader disclosure project called FASB Concepts Statement, Conceptual Framework for Financial Reporting — Chapter 8: Notes to Financial Statements, which the FASB finalized on August 28, 2018. The FASB used the guidance in the Concepts Statement to improve the effectiveness of ASC 820’s disclosure requirements. New disclosure requirements include: 1) Changes in unrealized gains or losses included in other comprehensive income (OCI) for recurring Level 3 fair value measurements held at the end of the reporting period; and 2) Explicit requirement to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. Disclosures eliminated include: 1) Amount of and reasons for transfers between Level 1 and Level 2; 2) Valuation processes for Level 3 fair value measurements; and 3) Policy for timing of transfers between levels of the fair value hierarchy. The ASU is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU.

Note 1 - Summary of Significa_3

Note 1 - Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Schedule of Estimated Useful Lives of Assets	Depreciation and amortization are calculated principally on an accelerated or straight-line basis over the estimated useful lives of the assets, or the shorter of the estimated useful life or lease term for leasehold improvements, as follows: Buildings 10 to 39 years Furniture and equipment 3 to 15 years Leasehold improvements 5 to 30 years
Assumptions Used in Option Pricing Model	Year ended December 31, 2018 2017 2016 Risk free interest rate 2.15 % 1.48 % 1.14 % Dividend yield 1.24 % 3.19 % 3.78 % Volatility 18.1 % 17.9 % 22.6 % Expected life (years) 4.2 4.2 4.2

Note 2 - Earnings Per Share a_2

Note 2 - Earnings Per Share and Share Repurchase Plan (Tables)	12 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2018 2017 2016 Numerator for basic and diluted earnings per share - net income $ 11,335 $ 8,289 $ 8,924 Denominator for basic earnings per share - weighted average shares outstanding 3,463,450 3,428,970 3,386,766 Effect of dilutive securities - employee stock options 19,059 16,841 9,073 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 3,482,509 3,445,811 3,395,839 Earnings per share - basic $ 3.27 $ 2.42 $ 2.64 Earnings per share - diluted $ 3.25 $ 2.41 $ 2.63

Note 4 - Investment Securities

Note 4 - Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Debt Securities Available-for-sale	The amortized cost and fair values of investment debt securities available-for-sale at December 31, 2018 and 2017 were as follows: Gross Gross unrealized unrealized Fair holding holding Amortized December 31, 2018 value gains losses cost U.S. Government agency $ 68,409 $ — $ (2,072 ) $ 70,481 State and municipal 66,313 195 (464 ) 66,582 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 125,913 79 (4,251 ) 130,085 Collateralized mortgage obligations (CMOs) 75,491 87 (2,549 ) 77,953 Pooled trust preferred 116 — (6 ) 122 Corporate debt 7,979 33 (80 ) 8,026 Total investment securities available-for-sale $ 344,221 $ 394 $ (9,422 ) $ 353,249 Gross Gross unrealized unrealized Fair holding holding Amortized December 31, 2017 value gains losses cost U.S. Government agency $ 70,524 $ — $ (1,948 ) $ 72,472 State and municipal 76,804 717 (113 ) 76,200 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 142,703 195 (2,401 ) 144,909 Collateralized mortgage obligations (CMOs) 76,302 29 (2,292 ) 78,565 Pooled trust preferred 215 — (26 ) 241 Corporate debt 8,022 6 (37 ) 8,053 Total investment securities available-for-sale $ 374,570 $ 947 $ (6,817 ) $ 380,440
Investment Securities by Contractual Maturity	The amortized cost and fair value of debt securities available-for-sale by contractual maturity at December 31, 2018 are shown in the following table. Amortized December 31, 2018 Fair value cost Due in one year or less $ 4,743 $ 4,735 Due after one year through five years 235,969 242,711 Due after five years through ten years 82,786 84,752 Due after ten years 20,723 21,051 Total investment securities available-for-sale $ 344,221 $ 353,249
Realized Gain (Loss) on Investments	The following table presents information related to the Company’s gains and losses on the sales of debt securities, and losses recognized for the other-than-temporary impairment (“OTTI”) of these investments. December 31, 2018 2017 2016 Gross realized gains $ 25 $ 581 $ 181 Gross realized losses (22 ) (558 ) (73 ) Other-than-temporary impairment — — — Total net gains (losses) on AFS debt securities $ 3 $ 23 $ 108 The following table presents information related to the Company’s gains and losses on the sales of equity securities, and losses recognized for the OTTI of these investments during 2017 and 2016: December 31, 2017 2016 Gross realized gains $ 1,557 $ 758 Gross realized losses — — Other-than-temporary impairment (80 ) (192 ) Total net gains on equity securities $ 1,477 $ 566
Credit-related Other-than-temporary Impairment	The following table presents a summary of the cumulative credit-related other-than-temporary impairment charges recognized as components of earnings for debt securities still held by QNB: Year ended December 31, 2018 2017 2016 Balance, beginning of year $ 1 $ 1,153 $ 1,153 Reductions: sale, collateralized debt obligation — (1,152 ) — Additions: Initial credit impairments — — — Subsequent credit impairments — — — Balance, end of year $ 1 $ 1 $ 1,153
Debt Securities in a Continuous Unrealized Loss Position	Debt securities that have been in a continuous unrealized loss position are as follows: December 31, 2018 Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized securities value losses value losses value losses U.S. Government agency 51 $ — $ — $ 68,409 $ (2,072 ) $ 68,409 $ (2,072 ) State and municipal 81 21,657 (204 ) 10,558 (260 ) 32,215 (464 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 111 12,561 (91 ) 108,802 (4,160 ) 121,363 (4,251 ) Collateralized mortgage obligations (CMOs) 73 433 (1 ) 62,467 (2,548 ) 62,900 (2,549 ) Pooled trust preferred 1 — — 116 (6 ) 116 (6 ) Corporate debt 4 — — 3,947 (80 ) 3,947 (80 ) Total 321 $ 34,651 $ (296 ) $ 254,299 $ (9,126 ) $ 288,950 $ (9,422 ) December 31, 2017 Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized securities value losses value losses value losses U.S. Government agency 53 $ 10,828 $ (155 ) $ 59,696 $ (1,793 ) $ 70,524 $ (1,948 ) State and municipal 37 10,577 (49 ) 4,446 (64 ) 15,023 (113 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 99 61,069 (705 ) 72,318 (1,696 ) 133,387 (2,401 ) Collateralized mortgage obligations (CMOs) 70 21,660 (349 ) 52,833 (1,943 ) 74,493 (2,292 ) Pooled trust preferred 1 — — 215 (26 ) 215 (26 ) Corporate debt 4 3,018 (20 ) 988 (17 ) 4,006 (37 ) Total 264 $ 107,152 $ (1,278 ) $ 190,496 $ (5,539 ) $ 297,648 $ (6,817 )
Pooled Trust Preferred Securities	The following table provides additional information related to PreTSL IV as of December 31, 2018: Deal Class Book value Fair value Unrealized gains (losses) Realized OTTI credit loss (YTD 2018) Total recognized OTTI credit loss Moody's /Fitch ratings Current number of performing banks Current number of performing insurance companies Actual deferrals and defaults as a % of total collateral Total performing collateral as a % of outstanding bonds PreTSL IV Mezzanine * $ 122 $ 116 $ (6 ) $ — $ (1 ) Ba1/BB 4 — 0.0 % 187.3 % Mezzanine* - only class of bonds still outstanding (represents the senior-most obligation of the trust)
Summary of Unrealized and Realized Gains and Losses Recognized in Net Income on Equity Securities	The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during 2018: December 31, 2018 Net losses recognized during the period on equity securities $ (415 ) Less: Net losses recognized during the period on equity securities sold during the period (79 ) Net unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (336 )

Note 5 - Loans Receivable and_2

Note 5 - Loans Receivable and the Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2018
Troubled Debt Restructuring [Member]
Allowance for Loan Losses	December 31, 2018 2017 Unpaid principal balance Related allowance Unpaid principal balance Related allowance TDRs with no specific allowance recorded $ 2,513 $ — $ 3,448 $ — TDRs with an allowance recorded 964 411 867 235 Total $ 3,477 $ 411 $ 4,315 $ 235
Total Retail Loans [Member]
Major Classes of Loans	December 31, 2018 2017 Commercial: Commercial and industrial $ 162,452 $ 147,190 Construction 50,135 51,157 Secured by commercial real estate 308,590 286,867 Secured by residential real estate 68,581 71,703 State and political subdivisions 43,737 38,087 Retail: 1-4 family residential mortgages 67,453 55,818 Home equity loans and lines 77,475 75,576 Consumer 6,785 6,680 Total loans 785,208 733,078 Net unearned costs 240 205 Loans receivable $ 785,448 $ 733,283
Internal Risk Ratings and Payment Activity	December 31, 2018 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 155,219 $ 82 $ 7,151 $ — $ 162,452 Construction 50,135 — — — 50,135 Secured by commercial real estate 297,713 1,259 9,618 — 308,590 Secured by residential real estate 66,838 173 1,570 — 68,581 State and political subdivisions 43,737 — — — 43,737 Total $ 613,642 $ 1,514 $ 18,339 $ — $ 633,495 December 31, 2017 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 139,820 $ 863 $ 6,507 $ — $ 147,190 Construction 51,156 — 1 — 51,157 Secured by commercial real estate 268,069 10,569 8,229 — 286,867 Secured by residential real estate 69,571 222 1,910 — 71,703 State and political subdivisions 38,087 — — — 38,087 Total $ 566,703 $ 11,654 $ 16,647 $ — $ 595,004 December 31, 2018 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 66,513 $ 940 $ 67,453 Home equity loans and lines 77,309 166 77,475 Consumer 6,659 126 6,785 Total $ 150,481 $ 1,232 $ 151,713 December 31, 2017 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 54,936 $ 882 $ 55,818 Home equity loans and lines 75,433 143 75,576 Consumer 6,595 85 6,680 Total $ 136,964 $ 1,110 $ 138,074
Past Due Loans	December 31, 2018 30-59 past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 94 $ 141 $ 1,372 $ 1,607 $ 160,845 $ 162,452 Construction — — — — 50,135 50,135 Secured by commercial real estate 305 1,029 638 1,972 306,618 308,590 Secured by residential real estate 24 352 291 667 67,914 68,581 State and political subdivisions — — — — 43,737 43,737 Retail: 1-4 family residential mortgages 544 245 476 1,265 66,188 67,453 Home equity loans and lines 82 205 61 348 77,127 77,475 Consumer 23 35 24 82 6,703 6,785 Total $ 1,072 $ 2,007 $ 2,862 $ 5,941 $ 779,267 $ 785,208 December 31, 2017 30-59 past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 25 $ 429 $ 57 $ 511 $ 146,679 $ 147,190 Construction — — — — 51,157 51,157 Secured by commercial real estate 899 — 730 1,629 285,238 286,867 Secured by residential real estate 24 — 210 234 71,469 71,703 State and political subdivisions — — — — 38,087 38,087 Retail: 1-4 family residential mortgages 744 152 504 1,400 54,418 55,818 Home equity loans and lines 251 44 119 414 75,162 75,576 Consumer 23 8 — 31 6,649 6,680 Total $ 1,966 $ 633 $ 1,620 $ 4,219 $ 728,859 $ 733,078
Non-accrual Loans	December 31, 2018 90 due (still accruing) Non-accrual Commercial: Commercial and industrial $ — $ 3,179 Construction — — Secured by commercial real estate — 1,965 Secured by residential real estate — 1,102 State and political subdivisions — — Retail: 1-4 family residential mortgages — 940 Home equity loans and lines — 166 Consumer — 126 Total $ — $ 7,478 December 31, 2017 90 due (still accruing) Non-accrual Commercial: Commercial and industrial $ — $ 3,367 Construction — — Secured by commercial real estate — 1,987 Secured by residential real estate — 1,458 State and political subdivisions — — Retail: 1-4 family residential mortgages — 882 Home equity loans and lines — 142 Consumer — 85 Total $ — $ 7,921
Allowance for Loan Losses	Activity in the allowance for loan losses for the years ended December 31, 2018, 2017 and 2016 are as follows: Year ended December 31, 2018 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 2,711 $ 341 $ — $ 40 $ 3,092 Construction 563 (12 ) — — 551 Secured by commercial real estate 2,410 391 — 23 2,824 Secured by residential real estate 816 (12 ) (77 ) 27 754 State and political subdivisions 114 39 — — 153 Retail: 1-4 family residential mortgages 444 54 (1 ) — 497 Home equity loans and lines 357 52 (84 ) 13 338 Consumer 57 185 (112 ) 34 164 Unallocated 369 92 N/A N/A 461 Total $ 7,841 $ 1,130 $ (274 ) $ 137 $ 8,834 Year ended December 31, 2017 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,459 $ 2,178 $ (960 ) $ 34 $ 2,711 Construction 449 114 — — 563 Secured by commercial real estate 2,646 (244 ) — 8 2,410 Secured by residential real estate 1,760 (959 ) (23 ) 38 816 State and political subdivisions 123 (9 ) — — 114 Retail: 1-4 family residential mortgages 366 78 — — 444 Home equity loans and lines 353 (6 ) — 10 357 Consumer 76 41 (92 ) 32 57 Unallocated 162 207 N/A N/A 369 Total $ 7,394 $ 1,400 $ (1,075 ) $ 122 $ 7,841 Year ended December 31, 2016 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,521 $ 41 $ (140 ) $ 37 $ 1,459 Construction 286 163 — — 449 Secured by commercial real estate 2,411 227 — 8 2,646 Secured by residential real estate 1,812 (44 ) (120 ) 112 1,760 State and political subdivisions 222 (99 ) — — 123 Indirect lease financing 164 (121 ) (52 ) 9 — Retail: 1-4 family residential mortgages 350 16 — — 366 Home equity loans and lines 428 (91 ) — 16 353 Consumer 76 60 (92 ) 32 76 Unallocated 284 (122 ) N/A N/A 162 Total $ 7,554 $ 30 $ (404 ) $ 214 $ 7,394
Loans by Loan Class Modified as TDRs	Year ended December 31, 2018 2017 Number contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Number contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Commercial: Secured by commercial real estate 1 $ 99 $ 99 — $ — $ — Secured by residential real estate 1 39 29 — — — Retail: Home equity loans and lines 2 95 86 — — — Total 4 $ 233 $ 214 — $ — $ —
Loans Disaggregated by Impairment Method	Allowance for Loan Losses Loans Receivable December 31, 2018 Balance Balance to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 3,092 $ 1,461 $ 1,631 $ 162,452 $ 7,128 $ 155,324 Construction 551 — 551 50,135 — 50,135 Secured by commercial real estate 2,824 101 2,723 308,590 6,083 302,507 Secured by residential real estate 754 97 657 68,581 1,740 66,841 State and political subdivisions 153 — 153 43,737 — 43,737 Retail: 1-4 family residential mortgages 497 — 497 67,453 1,268 66,185 Home equity loans and lines 338 5 333 77,475 186 77,289 Consumer 164 — 164 6,785 77 6,708 Unallocated 461 N/A N/A N/A N/A N/A Total $ 8,834 $ 1,664 $ 6,709 $ 785,208 $ 16,482 $ 768,726 Allowance for Loan Losses Loans Receivable December 31, 2017 Balance Balance to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 2,711 $ 1,260 $ 1,451 $ 147,190 $ 6,498 $ 140,692 Construction 563 — 563 51,157 1 51,156 Secured by commercial real estate 2,410 — 2,410 286,867 3,874 282,993 Secured by residential real estate 816 84 732 71,703 1,744 69,959 State and political subdivisions 114 — 114 38,087 — 38,087 Retail: 1-4 family residential mortgages 444 8 436 55,818 1,218 54,600 Home equity loans and lines 357 40 317 75,576 164 75,412 Consumer 57 — 57 6,680 85 6,595 Unallocated 369 N/A N/A N/A N/A N/A Total $ 7,841 $ 1,392 $ 6,080 $ 733,078 $ 13,584 $ 719,494
Impaired Loans	December 31, 2018 December 31, 2017 Recorded investment (after charge-offs) Unpaid principal balance Related allowance Recorded investment (after charge-offs) Unpaid principal balance Related allowance With no specific allowance recorded: Commercial: Commercial and industrial $ 4,243 $ 4,525 $ — $ 5,070 $ 5,461 $ — Construction — — — 1 1 — Secured by commercial real estate 5,012 5,577 — 3,874 4,464 — Secured by residential real estate 1,023 1,140 — 914 1,239 — Retail: 1-4 family residential mortgages 1,268 1,357 — 1,057 1,108 — Home equity loans and lines 140 190 — 124 168 — Consumer 77 84 — 85 90 — Total $ 11,763 $ 12,873 $ — $ 11,125 $ 12,531 $ — With an allowance recorded: Commercial: Commercial and industrial $ 2,885 $ 4,128 $ 1,461 $ 1,428 $ 2,593 $ 1,260 Construction — — — — — — Secured by commercial real estate 1,071 1,095 101 — — — Secured by residential real estate 717 773 97 830 879 84 Retail: 1-4 family residential mortgages — — — 161 163 8 Home equity loans and lines 46 46 5 40 41 40 Consumer — — — — — — Total $ 4,719 $ 6,042 $ 1,664 $ 2,459 $ 3,676 $ 1,392 Total: Commercial: Commercial and industrial $ 7,128 $ 8,653 $ 1,461 $ 6,498 $ 8,054 $ 1,260 Construction — — — 1 1 — Secured by commercial real estate 6,083 6,672 101 3,874 4,464 — Secured by residential real estate 1,740 1,913 97 1,744 2,118 84 Retail: 1-4 family residential mortgages 1,268 1,357 — 1,218 1,271 8 Home equity loans and lines 186 236 5 164 209 40 Consumer 77 84 — 85 90 — Total $ 16,482 $ 18,915 $ 1,664 $ 13,584 $ 16,207 $ 1,392 Year Ended December 31, 2018 2017 2016 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial: Commercial and industrial $ 6,064 $ 227 $ 5,301 $ 14 $ 4,200 $ 58 Construction — — 51 2 370 18 Secured by commercial real estate 4,908 189 5,744 145 6,129 131 Secured by residential real estate 1,800 23 2,252 23 1,960 15 Indirect lease financing — — — — 88 — Retail: 1-4 family residential mortgages 1,251 12 1,155 13 583 10 Home equity loans and lines 186 1 138 1 129 1 Consumer 81 — 97 — 29 — Total $ 14,290 $ 452 $ 14,738 $ 198 $ 13,488 $ 233

Note 6 - Premises and Equipme_2

Note 6 - Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Property Plant And Equipment [Abstract]
Premises and Equipment	Premises and equipment, stated at cost less accumulated depreciation and amortization, are summarized below: December 31, 2018 2017 Land and buildings $ 12,258 $ 11,464 Furniture and equipment 14,618 13,599 Leasehold improvements 2,816 2,328 Book value 29,692 27,391 Accumulated depreciation and amortization (19,774 ) (18,896 ) Net book value $ 9,918 $ 8,495

Note 7 - Intangible Assets an_2

Note 7 - Intangible Assets and Loan Servicing (Tables)	12 Months Ended
	Dec. 31, 2018
Transfers And Servicing Of Financial Assets [Abstract]
Activity of Mortgage Servicing Rights	The following table reflects the activity of mortgage servicing rights for the periods indicated: Year ended December 31, 2018 2017 2016 Balance at beginning of year $ 483 $ 498 $ 504 Mortgage servicing rights capitalized 33 67 69 Mortgage servicing rights amortized (66 ) (83 ) (79 ) Fair market value adjustments 1 1 4 Balance at end of year $ 451 $ 483 $ 498
Annual Estimated Amortization Expense of Intangible Assets	The annual estimated amortization expense of intangible assets for each of the five succeeding fiscal years is as follows: 2019 $ 71 2020 62 2021 53 2022 46 2023 39

Note 8 - Time Deposits (Tables)

Note 8 - Time Deposits (Tables)	12 Months Ended
	Dec. 31, 2018
Banking And Thrift [Abstract]
Schedule Of Maturities Of Time Deposits Table Text Block	At December 31, 2018, the scheduled maturities of time deposits were as follows: 2019 $ 78,931 2020 73,399 2021 43,441 2022 17,272 2023 10,745 Thereafter — Total time deposits $ 223,788

Note 9 - Short-Term Borrowings

Note 9 - Short-Term Borrowings (Tables)	12 Months Ended
	Dec. 31, 2018
Disclosure Text Block [Abstract]
Schedule of Short-Term Borrowings	December 31, Securities sold under agreements to repurchase (a) Other short - term borrowings (b) 2018 Balance $ 47,007 $ 3,865 Maximum indebtedness at any month end 47,007 46,451 Daily average indebtedness outstanding 38,172 22,767 Average rate paid for the year 0.55 % 2.03 % Average rate on period-end borrowings 0.67 2.65 2017 Balance $ 41,845 $ 13,911 Maximum indebtedness at any month end 43,834 33,773 Daily average indebtedness outstanding 39,301 9,371 Average rate paid for the year 0.38 % 1.09 % Average rate on period-end borrowings 0.40 1.20 (a) Securities sold under agreements to repurchase mature overnight. The repurchase agreements were collateralized by U.S. Government mortgage-backed securities and CMOs with an amortized cost of $62,445,000 and $53,112,000 and a fair value of $60,408,000 and $51,823,000 and at December 31, 2018 and 2017, respectively. These securities are held in safekeeping at the Federal Reserve Bank of Boston. (b) Other short-term borrowings include Federal funds purchased and overnight borrowings from the FHLB.

Note 11 - Income Taxes (Tables)

Note 11 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	Year ended December 31, 2018 2017 2016 Current Federal income taxes $ 1,742 $ 3,454 $ 3,137 Current state income taxes 57 124 62 Deferred Federal income taxes (benefits) 363 268 (145 ) Deferred state income taxes (benefits) (105 ) — — Other (85 ) — — Net provision prior to discrete tax adjustments 1,972 3,846 3,054 DTL writeoff due to change in tax methods (415 ) — — Net DTA revaluation for change in tax rate under 2017 Tax Reform — 2,054 — Net provision $ 1,557 $ 5,900 $ 3,054
Schedule of Deferred Tax Assets and Liabilities	December 31, 2018 2017 Deferred tax assets Allowance for loan losses $ 1,855 $ 1,647 Net unrealized holding losses on investment securities available-for-sale 1,896 1,255 Fair value adjustment on equity securities 190 — Non-credit OTTI on investment securities available-for-sale — 45 Non-accrual interest income 76 324 Deferred rent 59 55 Deferred revenue 121 80 Incurred but not reported medical expense 33 18 Bonus 178 130 State net operating loss carryforward 29 — Other 27 16 Total deferred tax assets 4,464 3,570 Deferred tax liabilities Deferred loan costs 361 — Depreciation 179 24 Mortgage servicing rights 95 101 Net unrealized holding gains on trading investment securities — 21 Prepaid expenses 92 95 Other 13 10 Total deferred tax liabilities 740 251 Net deferred tax asset $ 3,724 $ 3,319
Schedule of Effective Income Tax Rate Reconciliation	Year ended December 31, 2018 2017 2016 Dollar % Dollar % Dollar % Provision at statutory rate $ 2,707 21.0 % $ 4,825 34.0 % $ 4,073 34.0 % Tax-exempt interest and dividend income (577 ) (4.5 ) (948 ) (6.7 ) (1,033 ) (8.6 ) Bank-owned life insurance (61 ) (0.4 ) (100 ) (0.7 ) (105 ) (0.9 ) Life insurance proceeds — — (18 ) (0.1 ) — — Stock-based compensation expense 17 0.1 19 0.1 30 0.3 State income tax (19 ) (0.1 ) 82 0.6 41 0.3 Other (95 ) (0.8 ) (14 ) (0.1 ) 48 0.4 Net provision prior to discrete tax adjustments 1,972 15.3 3,846 27.1 3,054 25.5 % DTL writeoff for change in tax methods (415 ) (3.2 ) — — — — Net DTA revaluation for change in tax rate under 2017 Tax Reform — — 2,054 14.5 — — Net provision $ 1,557 12.1 % $ 5,900 41.6 % $ 3,054 25.5 %

Note 12 - Employee Benefit Pl_2

Note 12 - Employee Benefit Plans (Tables)	12 Months Ended
	Dec. 31, 2018
Compensation Related Costs [Abstract]
Schedule of Shares Issued	Shares issued pursuant to the Plan were as follows: Year ended December 31, 2018 2017 2016 Shares 2,963 2,660 2,932 Price per share $39.60 and $39.47 $31.95 and $36.18 $26.73 and $28.35

Note 13 - Stock Option Plan (Ta

Note 13 - Stock Option Plan (Tables)	12 Months Ended
	Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Option Activity	Stock option activity during 2018, 2017, and 2016 was as follows: Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at December 31, 2015 82,875 $ 24.33 Exercised (22,700 ) 20.90 Forfeited (9,725 ) 25.60 Granted 23,500 30.40 Outstanding at December 31, 2016 73,950 27.14 Exercised (13,125 ) 22.42 Forfeited (300 ) 22.58 Granted 25,000 37.60 Outstanding at December 31, 2017 85,525 30.94 Exercised (13,850 ) 24.96 Forfeited (1,600 ) 32.52 Granted 25,000 43.60 Outstanding at December 31, 2018 95,075 $ 35.11 2.58 $ 450 Exercisable at December 31, 2018 22,675 $ 27.84 0.73 $ 242
Outstanding Stock Options	As of December 31, 2018, outstanding stock options consist of the following: Options outstanding Exercise price Remaining life (in years) Options exercisable Exercise price 7,825 $ 25.16 0.08 7,825 $ 25.16 14,850 29.25 1.08 14,850 29.25 22,950 30.40 2.13 — — 24,450 37.60 3.13 — — 25,000 43.60 4.14 — — Outstanding at December 31, 2018 95,075 $ 35.11 2.58 22,675 $ 27.84
Intrinsic Value Related to Stock Options Exercised	The intrinsic value related to total stock options exercised during 2018, 2017, and 2016 are as follows: 2018 2017 2016 Intrinsic value of stock options exercised $ 274 $ 204 $ 234

Note 14 - Related Party Trans_2

Note 14 - Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Schedule of Activity and Amounts Due from Directors, Principal Officers, and Their Related Interests	The following table presents activity and amounts due from directors, principal officers, and their related interests. Balance, December 31, 2017 $ 12,837 New loans 12,613 Repayments (12,559 ) Balance, December 31, 2018 $ 12,891
Schedule of Additional Information Regarding Transactions with Related Parties	The following table provides additional information regarding transactions with related parties. December 31, 2018 2017 Commitments to extend credit $ 6,867 $ 3,149 Letters of credit 1,296 1,000 Deposits received 7,181 9,550

Note 15 - Commitments and Con_2

Note 15 - Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Financial Instrument Commitments	A summary of the Bank's financial instrument commitments is as follows: December 31, 2018 2017 Commitments to extend credit and unused lines of credit $ 266,021 $ 313,541 Standby letters of credit 17,269 15,211 Total financial instrument commitments $ 283,290 $ 328,752
Minimum Annual Rental Commitments	The minimum annual rental commitments under these leases outstanding at December 31, 2018 are as follows: Minimum lease payments 2019 $ 596 2020 484 2021 403 2022 404 2023 357 Thereafter 5,153 Total $ 7,397

Note 16 - Accumulated Other C_2

Note 16 - Accumulated Other Comprehensive Income (Loss) (Tables)	12 Months Ended
	Dec. 31, 2018
Other Comprehensive Income Loss Tax [Abstract]
Components of Accumulated Other Comprehensive Income (Loss)	The following shows the components of accumulated other comprehensive income (loss) during the periods ended December 31, 2018, 2017 and 2016: December 31, 2018 2017 2016 Unrealized net holding (losses) gains on available-for-sale securities $ (9,028 ) $ (6,165 ) $ (5,446 ) Unrealized losses on available-for-sale securities for which a portion of an other-than-temporary impairment loss has been recognized in earnings — (26 ) (247 ) Accumulated other comprehensive (loss) income (9,028 ) (6,191 ) (5,693 ) Tax effect* 1,896 1,300 1,936 Stranded tax effect — 805 — Accumulated other comprehensive income (loss), net of tax $ (7,132 ) $ (4,086 ) $ (3,757 ) * At tax rates of 21% for 2018, 21% for 2017, and 34% for 2016
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)	The following table presents amounts reclassified out of accumulated other comprehensive income (loss) for the years ended December 31, 2018, 2017 and 2016: Amount reclassified from accumulated other comprehensive income (loss) Details about accumulated other comprehensive income (loss) 2018 2017 2016 Affected line item in statement of income Realized net holding gains on available-for-sale securities $ 3 $ 1,580 $ 866 Net gain on sale of investment securities Other-than-temporary impairment losses on investment securities — (80 ) (192 ) Net other-than-temporary impairment losses on investment securities Net gain on sale of investment securities 3 1,500 674 Tax effect* (1 ) (510 ) (229 ) Provision for income taxes Total reclassification out of accumulated other comprehensive income (loss), net of tax $ 2 $ 990 $ 445 Net of tax *At rate of 21% for 2018 and 34% for both 2017 and 2016

Note 17 - Fair Value Measurem_2

Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Financial Assets Measured at Fair Value on a Recurring and Nonrecurring Basis	For financial assets measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used were as follows: December 31, 2018 Quoted in active markets for identical assets (Level 1) Significant other observable input (Level 2) Significant unobservable inputs (Level 3) Balance at end of period Recurring fair value measurements Securities available-for-sale U.S. Government agency securities $ — $ 68,409 $ — $ 68,409 State and municipal securities — 66,313 — 66,313 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 125,913 — 125,913 Collateralized mortgage obligations (CMOs) — 75,491 — 75,491 Pooled trust preferred securities — — 116 116 Corporate debt securities — 7,979 — 7,979 Total securities available-for-sale — 344,105 116 344,221 Equity securities 9,421 — — 9,421 Total recurring fair value measurements $ 9,421 $ 344,105 $ 116 $ 353,642 Nonrecurring fair value measurements * Impaired loans $ — $ — $ 3,055 $ 3,055 Mortgage servicing rights — — 5 5 Total nonrecurring fair value measurements $ — $ — $ 3,060 $ 3,060 * impairment December 31, 2017 Quoted in active markets for identical assets (Level 1) Significant other observable input (Level 2) Significant unobservable inputs (Level 3) Balance at end of period Recurring fair value measurements Securities available-for-sale U.S. Government agency securities $ — $ 70,524 $ — $ 70,524 State and municipal securities — 76,804 — 76,804 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 142,703 — 142,703 Collateralized mortgage obligations (CMOs) — 76,302 — 76,302 Pooled trust preferred securities — — 215 215 Corporate debt securities — 8,022 — 8,022 Total securities available-for-sale — 374,355 215 374,570 Equity securities 4,975 — — 4,975 Total recurring fair value measurements $ 4,975 $ 374,355 $ 215 $ 379,545 Nonrecurring fair value measurements * Impaired loans $ — $ — $ 1,067 $ 1,067 Mortgage servicing rights — — 34 34 Total nonrecurring fair value measurements $ — $ — $ 1,101 $ 1,101 * impairment
Quantitative Information about Assets Measured at Fair Value	The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which QNB has utilized Level 3 inputs to determine fair value: Quantitative information about Level 3 fair value measurements December 31, 2018 Fair Valuation techniques Unobservable input Value of values Impaired loans $ 1,632 Appraisal (1) Appraisal adjustments (2) -20% to -90% Liquidation expenses (3) -10% Impaired loans 1,415 Financial statement values for UCC collateral Financial statement value discounts (5) -25% to -100% Impaired loans 8 Used commercial vehicle guides Guide value discounts (4) -10 % Mortgage servicing rights 5 Discounted cash flow Remaining term 2 - 26 yrs Discount rate 12.0% to 12.5% Quantitative information about Level 3 fair value measurements December 31, 2017 Fair Valuation techniques Unobservable input Value of values Impaired loans $ 943 Appraisal (1) Appraisal adjustments (2) -15% to -90% Liquidation expenses (3) -10% Impaired loans 124 Financial statement values for UCC collateral Financial statement value discounts (5) -25% to -50% Mortgage servicing rights 34 Discounted cash flow Remaining term 2 - 26 yrs Discount rate 13.0% to 15.0% (1) Fair value is primarily determined through appraisals of the underlying collateral by independent parties, which generally includes various level 3 inputs which are not always identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and the age of the appraisal. The range is presented as a percent of the initial appraised value. (3) Appraisals and pending agreements of sale are adjusted by management for estimated liquidation expenses. The range is presented as a percent of the initial appraised value. (4) If lendable value (lower than wholesale) is utilized then no additional discounts are taken. If lendable value is not provided, then additional discounts are applied. (5) Values obtained from financial statements for UCC collateral (fixed assets and inventory) are discounted to estimated realizable liquidation value.
Available-for-sale Securities Measured at Fair Value Using Significant Unobservable Inputs	The following table presents additional information about the securities available-for-sale measured at fair value on a recurring basis and for which QNB utilized significant unobservable inputs (Level 3 inputs) to determine fair value for the year ended December 31: Fair value measurements using significant unobservable inputs (Level 3) Securities available-for-sale 2018 2017 Balance, beginning of year $ 215 $ 2,281 Payments received (119 ) (55 ) Sale of securities — (2,026 ) Total gains or losses (realized/unrealized) Included in earnings — (15 ) Included in other comprehensive income 20 30 Transfers in and/or out of Level 3 — — Balance, end of year $ 116 $ 215
Financial and Off-balance Sheet Instruments	The estimated fair values and carrying amounts of the Company’s financial and off-balance sheet instruments are summarized as follows: Fair value measurements December 31, 2018 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 13,458 $ 13,458 $ 13,458 $ — $ — Investment securities: Available-for-sale 344,221 344,221 — 344,105 116 Equity 9,421 9,421 9,421 — — Restricted investment in bank stocks 797 797 — 797 — Net loans 776,614 771,685 — — 771,685 Mortgage servicing rights 451 604 — — 604 Accrued interest receivable 2,852 2,852 — 2,852 — Financial liabilities Deposits with no stated maturities $ 791,810 $ 791,810 $ 791,810 $ — $ — Deposits with stated maturities 223,788 220,876 — 220,876 — Short-term borrowings 50,872 50,872 50,872 — — Accrued interest payable 449 449 — 449 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — 31 — 31 — Fair value measurements December 31, 2017 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 16,331 $ 16,331 $ 16,331 $ — $ — Investment securities: Available-for-sale 374,570 374,570 — 374,355 215 Equities 4,975 4,975 4,975 — — Restricted investment in bank stocks 1,501 1,501 — 1,501 — Net loans 725,442 727,341 — — 727,341 Mortgage servicing rights 483 585 — — 585 Accrued interest receivable 3,545 3,545 — 3,545 — Financial liabilities Deposits with no stated maturities $ 768,766 $ 768,766 $ 768,766 $ — $ — Deposits with stated maturities 225,182 223,325 — 223,325 — Short-term borrowings 55,756 55,756 55,756 — — Accrued interest payable 384 384 — 384 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — — — — —

Note 18 - Parent Company Fina_2

Note 18 - Parent Company Financial Information (Tables)	12 Months Ended
	Dec. 31, 2018
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]
Condensed Balance Sheet	Balance Sheets December 31, 2018 2017 Assets Cash and cash equivalents $ 72 $ 4,667 Investment equity securities 9,421 4,975 Investment in subsidiary 94,477 89,258 Other assets 379 74 Total assets $ 104,349 $ 98,974 Liabilities Other liabilities $ 1 $ 404 Shareholders' equity 104,348 98,570 Total liabilities and shareholders' equity $ 104,349 $ 98,974
Condensed Income Statement	Statements of Income Year ended December 31, 2018 2017 2016 Dividends from subsidiary $ 4,027 $ 3,382 $ 3,093 Interest, dividend and other income 266 183 171 Securities gains (79 ) 1,477 566 Net unrealized loss on investment equity securities (336 ) — — Total income 3,878 5,042 3,830 Expenses 513 301 295 Income before applicable income taxes and equity in undistributed income of subsidiary 3,365 4,741 3,535 Provision for income taxes (256 ) 554 159 Income before equity in undistributed income of subsidiary 3,621 4,187 3,376 Equity in undistributed income of subsidiary 7,714 4,102 5,548 Net income $ 11,335 $ 8,289 $ 8,924
Condensed Comprehensive Income	Statements of Comprehensive Income (in thousands) Year ended December 31, 2018 2017 2016 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 $ 12,892 $ 1,557 $ 11,335 $ 14,189 $ 5,900 $ 8,289 $ 11,978 $ 3,054 $ 8,924 Other comprehensive (loss) income: Net unrealized holding (losses) gains on securities: Unrealized holding (losses) gains arising during the period (3,156 ) (663 ) (2,493 ) 1,002 341 661 (4,192 ) (1,426 ) (2,766 ) Reclassification adjustment for gains included in net income (3 ) (1 ) (2 ) (1,500 ) (510 ) (990 ) (674 ) (229 ) (445 ) Other comprehensive loss (3,159 ) (664 ) (2,495 ) (498 ) (169 ) (329 ) (4,866 ) (1,655 ) (3,211 ) Total comprehensive income $ 9,733 $ 893 $ 8,840 $ 13,691 $ 5,731 $ 7,960 $ 7,112 $ 1,399 $ 5,713
Condensed Cash Flow Statement	Statements of Cash Flows Year ended December 31, 2018 2017 2016 Operating Activities Net income $ 11,335 $ 8,289 $ 8,924 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income from subsidiary (7,714 ) (4,102 ) (5,548 ) Net securities losses (gains) 79 (1,477 ) (566 ) Net unrealized loss on investment equity securities 336 — — Stock-based compensation expense 117 102 88 (Decrease) increase in other liabilities (403 ) 335 (67 ) Decrease (increase) in other assets (147 ) (3 ) 3 Deferred income tax provision (158 ) 98 14 Net cash provided by operating activities 3,445 3,242 2,848 Investing activities Purchase of investment equity securities (9,763 ) (9,998 ) (7,327 ) Proceeds from sale of investment equity securities 4,902 14,422 7,137 Net cash used by investing activities (4,861 ) 4,424 (190 ) Financing activities Cash dividend paid (3,863 ) (3,731 ) (3,556 ) Proceeds from issuance of common stock 684 672 862 Tax benefit from exercise of stock options — — 17 Net cash used by financing activities (3,179 ) (3,059 ) (2,677 ) (Decrease) increase in cash and cash equivalents (4,595 ) 4,607 (19 ) Cash and cash equivalents at beginning of year 4,667 60 79 Cash and cash equivalents at end of year $ 72 $ 4,667 $ 60

Note 19 - Regulatory Restrict_2

Note 19 - Regulatory Restrictions (Tables)	12 Months Ended
	Dec. 31, 2018
Banking And Thrift [Abstract]
Capital Ratios and Regulatory Minimum Requirements	The Company and the Bank’s actual capital amounts and ratios are presented as follows: Capital levels Actual Adequately capitalized Well capitalized As of December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 120,379 13.21 % $ 72,910 8.00 % $ 91,137 10.00 % Bank 110,508 12.52 70,619 8.00 88,273 10.00 Tier I capital (to risk-weighted assets): Consolidated 111,472 12.23 54,682 6.00 54,682 6.00 Bank 101,601 11.51 52,964 6.00 70,619 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 111,472 12.23 41,012 4.50 N/A N/A Bank 101,601 11.51 39,723 4.50 57,378 6.50 Tier I capital (to average assets): Consolidated 111,472 9.40 47,458 4.00 N/A N/A Bank 101,601 8.64 47,045 4.00 58,807 5.00 Capital levels Actual Adequately capitalized Well capitalized As of December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 110,352 12.52 % $ 70,520 8.00 % $ 88,150 10.00 % Bank 101,040 11.67 69,277 8.00 86,596 10.00 Tier I capital (to risk-weighted assets): Consolidated 102,438 11.62 52,890 6.00 52,890 6.00 Bank 93,126 10.75 51,957 6.00 69,277 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 102,438 11.62 39,668 4.50 N/A N/A Bank 93,126 10.75 38,968 4.50 56,287 6.50 Tier I capital (to average assets): Consolidated 102,438 8.88 46,149 4.00 N/A N/A Bank 93,126 8.14 45,761 4.00 57,201 5.00

Note 20 - Consolidated Quarte_2

Note 20 - Consolidated Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Unaudited Quarterly Results of Operations	The unaudited quarterly results of operations for the years ended 2018 and 2017 are in the following table: Quarters Ended 2018 Quarters Ended 2017 March 31 June 30 Sept. 30 Dec. 31 March 31 June 30 Sept. 30 Dec. 31 Interest income $ 10,509 $ 10,562 $ 10,926 $ 11,203 $ 9,136 $ 9,192 $ 9,830 $ 9,944 Interest expense 1,718 1,862 2,222 2,383 1,256 1,334 1,515 1,575 Net interest income 8,791 8,700 8,704 8,820 7,880 7,858 8,315 8,369 Provision for (credit to) loan losses 188 187 568 187 300 300 100 700 Non-interest income 1,067 1,454 2,227 144 1,990 1,615 1,470 1,812 Non-interest expense 6,178 6,533 6,385 6,789 5,588 5,942 6,191 5,999 Income before income taxes 3,492 3,434 3,978 1,988 3,982 3,231 3,494 3,482 Provision for income taxes 557 572 767 (339 ) 1,122 845 940 2,993 Net Income $ 2,935 $ 2,862 $ 3,211 $ 2,327 $ 2,860 $ 2,386 $ 2,554 $ 489 Earnings Per Share - basic * $ 0.85 $ 0.83 $ 0.93 $ 0.67 $ 0.84 $ 0.70 $ 0.74 $ 0.14 Earnings Per Share - diluted * $ 0.85 $ 0.82 $ 0.92 $ 0.67 $ 0.83 $ 0.69 $ 0.74 $ 0.14 * Due to rounding, quarterly earnings per share may not sum to annual earnings per share

Note 1 - Summary of Significa_4

Note 1 - Summary of Significant Accounting Policies (Details Textual)	Mar. 14, 2019shares	Jan. 24, 2019USD ($)	Jan. 01, 2019USD ($)	Dec. 31, 2018USD ($)shares	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017USD ($)$ / shares	Dec. 31, 2016USD ($)$ / shares	Jan. 01, 2018USD ($)
Summary of Significant Accounting Policies [Line Items]
Restricted investment in stocks				$ 797,000		$ 797,000	$ 1,501,000
Other than temporary impairment charge of restricted investment						0
Other Postretirement Benefit Expense						53,000	23,000	$ 94,000
Allocated Share-based Compensation Expense						117,000	102,000	88,000
Employee service Share-based compensation, tax benefit from nonqualified compensation expense and disqualifying dispositions						$ 12,000	$ 19,000	$ 20,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ / shares						$ 5.29	$ 3.88	$ 3.79
Unrecognized Tax Benefits				0		$ 0
Interest accrued				0		0
Penalties expense						8,000
Tax years subject to examination by tax authorities							2015
ASU 2016-01 [Member]
Summary of Significant Accounting Policies [Line Items]
New accounting pronouncement or change in accounting principle on reclassification net loss from accumulated other comprehensive loss to retained earnings									$ 254,000
ASU 2018-02 [Member]
Summary of Significant Accounting Policies [Line Items]
Reclassification from accumulated other comprehensive loss to retained earnings				805,000	$ 805,000	805,000
Subsequent Event [Member]
Summary of Significant Accounting Policies [Line Items]
FDIC preliminary estimated credit		$ 234,000
Right of use asset			$ 2,005,000
Finance lease liability			1,983,000
Operating lease liability			304,000
Reversal of deferred rent liability			$ 283,000
Subsequent Event [Member] | Dividend Reinvestment and Stock Purchase Plan [Member]
Summary of Significant Accounting Policies [Line Items]
Number of new stock added to the plan | shares	300,000
Other Assets [Member]
Summary of Significant Accounting Policies [Line Items]
Other Real Estate, Foreclosed Assets, and Repossessed Assets				0		0	$ 0
Investment in Federal Home Loan Bank Stock [Member]
Summary of Significant Accounting Policies [Line Items]
Restricted investment in stocks				785,000		785,000
Investment in Atlantic Community Bankers Bank Stock [Member]
Summary of Significant Accounting Policies [Line Items]
Restricted investment in stocks				12,000		12,000
VISA Class B Stock [Member]
Summary of Significant Accounting Policies [Line Items]
Restricted investment in stocks				$ 0		$ 0
Number of shares owned | shares				6,502		6,502
VISA Class A Stock [Member]
Summary of Significant Accounting Policies [Line Items]
Conversion factor per share				1.6298		1.6298

Note 1 - Schedule of Estimated

Note 1 - Schedule of Estimated Useful Lives of Assets (Details)	12 Months Ended
	Dec. 31, 2018
Minimum [Member] | Buildings [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	10 years
Minimum [Member] | Furniture and Equipment Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	3 years
Minimum [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	5 years
Maximum [Member] | Buildings [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	39 years
Maximum [Member] | Furniture and Equipment Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	15 years
Maximum [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of assets	30 years

Note 1 - Assumptions Used in Op

Note 1 - Assumptions Used in Option Pricing Model (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assumptions Utilized for Stock Option Grants [Abstract]
Risk free interest rate	2.15%	1.48%	1.14%
Dividend yield	1.24%	3.19%	3.78%
Volatility	18.10%	17.90%	22.60%
Expected life (years)	4 years 2 months 12 days	4 years 2 months 12 days	4 years 2 months 12 days

Note 2 - Computation of Basic a

Note 2 - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2018		Sep. 30, 2018		Jun. 30, 2018		Mar. 31, 2018		Dec. 31, 2017		Sep. 30, 2017		Jun. 30, 2017		Mar. 31, 2017		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Numerator for basic and diluted earnings per share - net income	$ 2,327		$ 3,211		$ 2,862		$ 2,935		$ 489		$ 2,554		$ 2,386		$ 2,860		$ 11,335	$ 8,289	$ 8,924
Denominator for basic earnings per share - weighted average shares outstanding																	3,463,450	3,428,970	3,386,766
Effect of dilutive securities - employee stock options																	19,059	16,841	9,073
Denominator for diluted earnings per share - adjusted weighted average shares outstanding																	3,482,509	3,445,811	3,395,839
Earnings per share - basic	$ 0.67	[1]	$ 0.93	[1]	$ 0.83	[1]	$ 0.85	[1]	$ 0.14	[1]	$ 0.74	[1]	$ 0.70	[1]	$ 0.84	[1]	$ 3.27	$ 2.42	$ 2.64
Earnings per share - diluted	$ 0.67	[1]	$ 0.92	[1]	$ 0.82	[1]	$ 0.85	[1]	$ 0.14	[1]	$ 0.74	[1]	$ 0.69	[1]	$ 0.83	[1]	$ 3.25	$ 2.41	$ 2.63
[1]	Due to rounding, quarterly earnings per share may not sum to annual earnings per share

Note 2 - Earnings Per Share a_3

Note 2 - Earnings Per Share and Share Repurchase Plan (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Feb. 09, 2009	Jan. 24, 2008
Earnings Per Share and Share Repurchase Plan [Line Items]
Treasury Stock, Shares	164,569	164,569
Treasury Stock, Value	$ 2,476	$ 2,476
Share Repurchase Program 1 [Member]
Earnings Per Share and Share Repurchase Plan [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased				100,000	50,000
Treasury Stock, Shares, Acquired	0	0
Treasury Stock, Shares	57,883	57,883
Treasury Stock Shares Average Price Per Share Acquired	$ 16.97	$ 16.97
Treasury Stock, Value	$ 982	$ 982
Employee Stock Option [Member]
Earnings Per Share and Share Repurchase Plan [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	25,000	25,000	23,500

Note 4 - Investment Securitie_2

Note 4 - Investment Securities (Details Textual)	1 Months Ended	3 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)security	Jun. 30, 2017USD ($)	Dec. 31, 2018USD ($)security	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Investment Securities [Line Items]
Net (loss) gain on trading activities				$ 27,000	$ (40,000)
Proceeds from sale of investment securities			$ 4,159,000	28,087,000	25,436,000
Other than temporary impairment charges recognized for debt securities			0	0	0
Other than temporary impairment, credit losses recognized in earnings			0	0	0
Available-for-sale securities pledged as collateral			$ 194,573,000	$ 202,887,000
Debt Securities, Available-for-sale, Restriction Type [Extensible List]			us-gaap:CollateralPledgedMember	us-gaap:CollateralPledgedMember
(Gain) loss on sale of investments			$ 76,000	$ (1,500,000)	(674,000)
Recorded OTTI credit loss				80,000	192,000
Investment equity securities			9,421,000	4,975,000
Unrealized losses, net of tax			2,493,000	(661,000)	2,766,000
Proceeds from the sale of equity securities			4,902,000	14,422,000	7,137,000
Debt Securities [Member]
Investment Securities [Line Items]
Income tax expense (benefit) related to net realized gains (losses) on sales of securities			$ 1,000	8,000	37,000
PreTSL IV [Member]
Investment Securities [Line Items]
Number of trust preferred securities | security			1
PreTSL [Member]
Investment Securities [Line Items]
Non-performing securities sold | security	5
Carrying value of securities	$ 2,235,000	$ 2,235,000
Number of securities OTTI recorded | security	4
Recorded OTTI credit loss	$ 1,152,000
Amount of reduction in risk-based assets		$ 19,000,000
PreTSL [Member] | Non-interest Income [Member]
Investment Securities [Line Items]
(Gain) loss on sale of investments	$ 15,000
Equity Securities [Member]
Investment Securities [Line Items]
Income tax expense (benefit) related to net realized gains (losses) on sales of securities			$ (120,000)	600,000	230,000
Recorded OTTI credit loss			$ 0	80,000	$ 192,000
Unrealized losses, net of tax				$ 254,000

Note 4 - Debt Securities Availa

Note 4 - Debt Securities Available-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale, debt securities	$ 344,221	$ 374,570
Investment securities available-for-sale, debt securities gross unrealized holding gains	394	947
Investment securities available-for-sale, debt securities gross unrealized holding losses	(9,422)	(6,817)
Investment securities available-for-sale, debt securities amortized cost	353,249	380,440
US Government Agencies Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale, debt securities	68,409	70,524
Investment securities available-for-sale, debt securities gross unrealized holding losses	(2,072)	(1,948)
Investment securities available-for-sale, debt securities amortized cost	70,481	72,472
US States and Political Subdivisions Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale, debt securities	66,313	76,804
Investment securities available-for-sale, debt securities gross unrealized holding gains	195	717
Investment securities available-for-sale, debt securities gross unrealized holding losses	(464)	(113)
Investment securities available-for-sale, debt securities amortized cost	66,582	76,200
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale, debt securities	125,913	142,703
Investment securities available-for-sale, debt securities gross unrealized holding gains	79	195
Investment securities available-for-sale, debt securities gross unrealized holding losses	(4,251)	(2,401)
Investment securities available-for-sale, debt securities amortized cost	130,085	144,909
Collateralized Mortgage Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale, debt securities	75,491	76,302
Investment securities available-for-sale, debt securities gross unrealized holding gains	87	29
Investment securities available-for-sale, debt securities gross unrealized holding losses	(2,549)	(2,292)
Investment securities available-for-sale, debt securities amortized cost	77,953	78,565
Collateralized Debt Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale, debt securities	116	215
Investment securities available-for-sale, debt securities gross unrealized holding losses	(6)	(26)
Investment securities available-for-sale, debt securities amortized cost	122	241
Corporate Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale, debt securities	7,979	8,022
Investment securities available-for-sale, debt securities gross unrealized holding gains	33	6
Investment securities available-for-sale, debt securities gross unrealized holding losses	(80)	(37)
Investment securities available-for-sale, debt securities amortized cost	$ 8,026	$ 8,053

Note 4 - Investment Securitie_3

Note 4 - Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investments Debt And Equity Securities [Abstract]
Due in one year or less, Fair value	$ 4,743
Due after one year through five years, Fair value	235,969
Due after five years through ten years, Fair value	82,786
Due after ten years, Fair value	20,723
Total investment securities available-for-sale, Fair value	344,221	$ 374,570
Due in one year or less, Amortized cost	4,735
Due after one year through five years, Amortized cost	242,711
Due after five years through ten years, Amortized cost	84,752
Due after ten years, Amortized cost	21,051
Investment securities available-for-sale, debt securities amortized cost	$ 353,249	$ 380,440

Note 4 - Gross Realized Losses

Note 4 - Gross Realized Losses on Debt Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Gross realized gains	$ 25,000	$ 581,000	$ 181,000
Gross realized losses	(22,000)	(558,000)	(73,000)
Other-than-temporary impairment	0	0	0
Total net gains (losses) on AFS debt securities	$ 3,000	$ 23,000	$ 108,000

Note 4 - Credit-related Other-t

Note 4 - Credit-related Other-than-temporary Impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Balance, beginning of year	$ 1	$ 1,153	$ 1,153
Reductions: sale, collateralized debt obligation	0	(1,152)	0
Initial credit impairments	0	0	0
Subsequent credit impairments	0	0	0
Balance, end of year	$ 1	$ 1	$ 1,153

Note 4 - Debt Securities in a C

Note 4 - Debt Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
Schedule Of Available For Sale Securities [Line Items]
No. of debt securities | security	321	264
Debt Securities in an unrealized loss position less than 12 months, fair value	$ 34,651	$ 107,152
Debt Securities in an unrealized loss position less than 12 months, unrealized losses	(296)	(1,278)
Debt Securities in an unrealized loss position 12 months or longer, fair value	254,299	190,496
Debt Securities in an unrealized loss position 12 months or longer, unrealized losses	(9,126)	(5,539)
Debt Securities in an unrealized loss position, fair value	288,950	297,648
Debt Securities in an unrealized loss position, unrealized losses	$ (9,422)	$ (6,817)
US Government Agencies Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of debt securities | security	51	53
Debt Securities in an unrealized loss position less than 12 months, fair value		$ 10,828
Debt Securities in an unrealized loss position less than 12 months, unrealized losses		(155)
Debt Securities in an unrealized loss position 12 months or longer, fair value	$ 68,409	59,696
Debt Securities in an unrealized loss position 12 months or longer, unrealized losses	(2,072)	(1,793)
Debt Securities in an unrealized loss position, fair value	68,409	70,524
Debt Securities in an unrealized loss position, unrealized losses	$ (2,072)	$ (1,948)
US States and Political Subdivisions Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of debt securities | security	81	37
Debt Securities in an unrealized loss position less than 12 months, fair value	$ 21,657	$ 10,577
Debt Securities in an unrealized loss position less than 12 months, unrealized losses	(204)	(49)
Debt Securities in an unrealized loss position 12 months or longer, fair value	10,558	4,446
Debt Securities in an unrealized loss position 12 months or longer, unrealized losses	(260)	(64)
Debt Securities in an unrealized loss position, fair value	32,215	15,023
Debt Securities in an unrealized loss position, unrealized losses	$ (464)	$ (113)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of debt securities | security	111	99
Debt Securities in an unrealized loss position less than 12 months, fair value	$ 12,561	$ 61,069
Debt Securities in an unrealized loss position less than 12 months, unrealized losses	(91)	(705)
Debt Securities in an unrealized loss position 12 months or longer, fair value	108,802	72,318
Debt Securities in an unrealized loss position 12 months or longer, unrealized losses	(4,160)	(1,696)
Debt Securities in an unrealized loss position, fair value	121,363	133,387
Debt Securities in an unrealized loss position, unrealized losses	$ (4,251)	$ (2,401)
Collateralized Mortgage Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of debt securities | security	73	70
Debt Securities in an unrealized loss position less than 12 months, fair value	$ 433	$ 21,660
Debt Securities in an unrealized loss position less than 12 months, unrealized losses	(1)	(349)
Debt Securities in an unrealized loss position 12 months or longer, fair value	62,467	52,833
Debt Securities in an unrealized loss position 12 months or longer, unrealized losses	(2,548)	(1,943)
Debt Securities in an unrealized loss position, fair value	62,900	74,493
Debt Securities in an unrealized loss position, unrealized losses	$ (2,549)	$ (2,292)
Collateralized Debt Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of debt securities | security	1	1
Debt Securities in an unrealized loss position less than 12 months, fair value	$ 0	$ 0
Debt Securities in an unrealized loss position less than 12 months, unrealized losses	0	0
Debt Securities in an unrealized loss position 12 months or longer, fair value	116	215
Debt Securities in an unrealized loss position 12 months or longer, unrealized losses	(6)	(26)
Debt Securities in an unrealized loss position, fair value	116	215
Debt Securities in an unrealized loss position, unrealized losses	$ (6)	$ (26)
Corporate Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of debt securities | security	4	4
Debt Securities in an unrealized loss position less than 12 months, fair value		$ 3,018
Debt Securities in an unrealized loss position less than 12 months, unrealized losses		(20)
Debt Securities in an unrealized loss position 12 months or longer, fair value	$ 3,947	988
Debt Securities in an unrealized loss position 12 months or longer, unrealized losses	(80)	(17)
Debt Securities in an unrealized loss position, fair value	3,947	4,006
Debt Securities in an unrealized loss position, unrealized losses	$ (80)	$ (37)

Note 4 - Pooled Trust Preferred

Note 4 - Pooled Trust Preferred Securities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)bankInsuranceCompany	Dec. 31, 2017USD ($)
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale, amortized cost	$ 353,249	$ 380,440
Fair value	344,221	$ 374,570
Unrealized gains (losses)	$ (336)
PreTSL IV [Member]
Schedule Of Available For Sale Securities [Line Items]
Class	Mezzanine*
Investment securities available-for-sale, amortized cost	$ 122
Fair value	116
Unrealized gains (losses)	(6)
Realized OTTI credit loss	0
Total recognized OTTI credit loss	$ (1)
Moody's/Fitch ratings	Ba1/BB
Current number of performing banks | bank	4
Current number of performing insurance companies | InsuranceCompany	0
Actual deferrals and defaults as a % of total collateral	0.00%
Total performing collateral as a % of outstanding bonds	187.30%

Note 4 - Summary of Unrealized

Note 4 - Summary of Unrealized and Realized Gains and Losses Recognized in Net Income on Equity Securities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Investments Debt And Equity Securities [Abstract]
Net losses recognized during the period on equity securities	$ (415)
Less: Net losses recognized during the period on equity securities sold during the period	(79)
Net unrealized losses recognized during the reporting period on equity securities still held at the reporting date	$ (336)

Note 4 - Gross Realized Losse_2

Note 4 - Gross Realized Losses on Equity Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Gain (Loss) on Securities [Line Items]
Other-than-temporary impairment		$ (80,000)	$ (192,000)
Equity Securities [Member]
Gain (Loss) on Securities [Line Items]
Gross realized gains		1,557,000	758,000
Gross realized losses		0	0
Other-than-temporary impairment	$ 0	(80,000)	(192,000)
Total net gains on equity securities		$ 1,477,000	$ 566,000

Note 5 - Major Classes of Loans

Note 5 - Major Classes of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	$ 785,208	$ 733,078
Net unearned costs	240	205
Loans receivable	785,448	733,283
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	162,452	147,190
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	50,135	51,157
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	308,590	286,867
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	68,581	71,703
State and Political Subdivisions Portfolio Segment [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	43,737	38,087
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	6,785	6,680
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	67,453	55,818
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	$ 77,475	$ 75,576

Note 5 - Loans Receivable and_3

Note 5 - Loans Receivable and the Allowance for Loan Losses (Details Textual)	1 Months Ended	12 Months Ended
	Oct. 31, 2016USD ($)	Dec. 31, 2018USD ($)contractloan	Dec. 31, 2017USD ($)contractloan	Dec. 31, 2016USD ($)
Accounts Notes And Loans Receivable [Line Items]
Bank overdrafts		$ 183,000	$ 126,000
Loss on sale of indirect lease financing portfolio	$ (223,000)			$ (223,000)
Reversal of allowance for loan losses	$ 220,000
Financing receivable, modifications, recorded investment		3,477,000	4,315,000
Financing receivables, impaired, troubled debt restructuring, write-down		$ 51,000	3,000	$ 0
Number of newly identified TDRs during the current period | contract		4
Loans and leases receivable, impaired, commitment to lend		$ 0	$ 0
Financing receivable, modifications, subsequent default, number of contracts | contract		0	0
Performing Financial Instruments [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, modifications, recorded investment		$ 2,160,000	$ 1,321,000
Nonperforming Financial Instruments [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, modifications, recorded investment		$ 1,317,000	$ 2,994,000
Residential Portfolio Segment [Member]
Accounts Notes And Loans Receivable [Line Items]
Mortgage loan on real estate number of loan in foreclosure | loan		5	3
Mortgage loans in process of foreclosure, amount		$ 537,000	$ 421,000
Residential Portfolio Segment [Member] | Maximum [Member]
Accounts Notes And Loans Receivable [Line Items]
Loan to value ratio		80.00%
Residential Buildings and Dwellings [Member]
Accounts Notes And Loans Receivable [Line Items]
Concentration of loans to lessors percentage of total loans		15.80%	15.70%
Nonresidential Buildings [Member]
Accounts Notes And Loans Receivable [Line Items]
Concentration of loans to lessors percentage of total loans		18.10%	17.30%

Note 5 - Internal Risk Ratings

Note 5 - Internal Risk Ratings and Payment Activity (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	$ 785,208	$ 733,078
Excluding Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	633,495	595,004
Pass [Member] | Excluding Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	613,642	566,703
Special Mention [Member] | Excluding Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	1,514	11,654
Substandard [Member] | Excluding Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	18,339	16,647
Doubtful [Member] | Excluding Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	162,452	147,190
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	50,135	51,157
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	308,590	286,867
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	68,581	71,703
Commercial Portfolio Segment [Member] | Pass [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	155,219	139,820
Commercial Portfolio Segment [Member] | Pass [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	50,135	51,156
Commercial Portfolio Segment [Member] | Pass [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	297,713	268,069
Commercial Portfolio Segment [Member] | Pass [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	66,838	69,571
Commercial Portfolio Segment [Member] | Special Mention [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	82	863
Commercial Portfolio Segment [Member] | Special Mention [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
Commercial Portfolio Segment [Member] | Special Mention [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	1,259	10,569
Commercial Portfolio Segment [Member] | Special Mention [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	173	222
Commercial Portfolio Segment [Member] | Substandard [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	7,151	6,507
Commercial Portfolio Segment [Member] | Substandard [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	1
Commercial Portfolio Segment [Member] | Substandard [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	9,618	8,229
Commercial Portfolio Segment [Member] | Substandard [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	1,570	1,910
Commercial Portfolio Segment [Member] | Doubtful [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
State and Political Subdivisions Portfolio Segment [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	43,737	38,087
State and Political Subdivisions Portfolio Segment [Member] | Pass [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	43,737	38,087
State and Political Subdivisions Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
State and Political Subdivisions Portfolio Segment [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
State and Political Subdivisions Portfolio Segment [Member] | Doubtful [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	$ 0	$ 0

Note 5 - Retail Loans by Credit

Note 5 - Retail Loans by Credit Quality (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	$ 785,208	$ 733,078
Total Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	151,713	138,074
Performing Financial Instruments [Member] | Total Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	150,481	136,964
Nonperforming Financial Instruments [Member] | Total Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	1,232	1,110
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	6,785	6,680
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	67,453	55,818
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	77,475	75,576
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	6,659	6,595
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Family Residential Mortgages [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	66,513	54,936
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	77,309	75,433
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	126	85
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Family Residential Mortgages [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	940	882
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	$ 166	$ 143

Note 5 - Past Due Loans (Detail

Note 5 - Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	$ 5,941	$ 4,219
Loans current	779,267	728,859
Loans and leases receivable	785,208	733,078
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	1,072	1,966
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	2,007	633
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	2,862	1,620
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	1,607	511
Loans current	160,845	146,679
Loans and leases receivable	162,452	147,190
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	94	25
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	141	429
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	1,372	57
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Loans current	50,135	51,157
Loans and leases receivable	50,135	51,157
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	1,972	1,629
Loans current	306,618	285,238
Loans and leases receivable	308,590	286,867
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	305	899
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	1,029	0
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	638	730
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	667	234
Loans current	67,914	71,469
Loans and leases receivable	68,581	71,703
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	24	24
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	352	0
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	291	210
State and Political Subdivisions Portfolio Segment [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Loans current	43,737	38,087
Loans and leases receivable	43,737	38,087
State and Political Subdivisions Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
State and Political Subdivisions Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
State and Political Subdivisions Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	82	31
Loans current	6,703	6,649
Loans and leases receivable	6,785	6,680
Retail Portfolio Segment [Member] | Consumer Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	23	23
Retail Portfolio Segment [Member] | Consumer Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	35	8
Retail Portfolio Segment [Member] | Consumer Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	24	0
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	1,265	1,400
Loans current	66,188	54,418
Loans and leases receivable	67,453	55,818
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	544	744
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	245	152
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	476	504
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	348	414
Loans current	77,127	75,162
Loans and leases receivable	77,475	75,576
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	82	251
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	205	44
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	$ 61	$ 119

Note 5 - Non-accrual Loans (Det

Note 5 - Non-accrual Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	$ 0	$ 0
Loans receivable	7,478	7,921
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	3,179	3,367
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	0	0
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	1,965	1,987
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	1,102	1,458
State and Political Subdivisions Portfolio Segment [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	0	0
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	126	85
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	940	882
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	$ 166	$ 142

Note 5 - Allowance for Loan Los

Note 5 - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	$ 7,841	$ 7,394	$ 7,554
Provision for (credit to) loan losses	1,130	1,400	30
Charge-offs	(274)	(1,075)	(404)
Recoveries	137	122	214
Allowance for loan losses, end of period	8,834	7,841	7,394
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	2,711	1,459	1,521
Provision for (credit to) loan losses	341	2,178	41
Charge-offs	0	(960)	(140)
Recoveries	40	34	37
Allowance for loan losses, end of period	3,092	2,711	1,459
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	563	449	286
Provision for (credit to) loan losses	(12)	114	163
Charge-offs	0	0	0
Recoveries	0	0	0
Allowance for loan losses, end of period	551	563	449
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	2,410	2,646	2,411
Provision for (credit to) loan losses	391	(244)	227
Charge-offs	0	0	0
Recoveries	23	8	8
Allowance for loan losses, end of period	2,824	2,410	2,646
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	816	1,760	1,812
Provision for (credit to) loan losses	(12)	(959)	(44)
Charge-offs	(77)	(23)	(120)
Recoveries	27	38	112
Allowance for loan losses, end of period	754	816	1,760
State and Political Subdivisions Portfolio Segment [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	114	123	222
Provision for (credit to) loan losses	39	(9)	(99)
Charge-offs	0	0	0
Recoveries	0	0	0
Allowance for loan losses, end of period	153	114	123
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	57	76	76
Provision for (credit to) loan losses	185	41	60
Charge-offs	(112)	(92)	(92)
Recoveries	34	32	32
Allowance for loan losses, end of period	164	57	76
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	444	366	350
Provision for (credit to) loan losses	54	78	16
Charge-offs	(1)	0	0
Recoveries	0	0	0
Allowance for loan losses, end of period	497	444	366
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	357	353	428
Provision for (credit to) loan losses	52	(6)	(91)
Charge-offs	(84)	0	0
Recoveries	13	10	16
Allowance for loan losses, end of period	338	357	353
Unallocated Financing Receivables [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	369	162	284
Provision for (credit to) loan losses	92	207	(122)
Charge-offs	0	0	0
Recoveries	0	0	0
Allowance for loan losses, end of period	$ 461	369	162
Finance Leases Portfolio Segment [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period		$ 0	164
Provision for (credit to) loan losses			(121)
Charge-offs			(52)
Recoveries			9
Allowance for loan losses, end of period			$ 0

Note 5 - Specific Reserve for L

Note 5 - Specific Reserve for Loans Modified as TDR's (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
TDRs with no specific allowance recorded - unpaid principal balance	$ 2,513	$ 3,448
TDRs with an allowance recorded - unpaid principal balance	964	867
Unpaid principal balance	3,477	4,315
TDRs with an allowance recorded - related allowance	$ 411	$ 235

Note 5 - Loans by Loan Class Mo

Note 5 - Loans by Loan Class Modified as TDRs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)contract
Financing Receivable Modifications [Line Items]
Number of contracts | contract	4
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | contract	1
Pre- modification outstanding recorded investment	$ 99
Post- modification outstanding recorded investment	$ 99
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | contract	1
Pre- modification outstanding recorded investment	$ 39
Post- modification outstanding recorded investment	$ 29
Retail Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | contract	4
Pre- modification outstanding recorded investment	$ 233
Post- modification outstanding recorded investment	$ 214
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | contract	2
Pre- modification outstanding recorded investment	$ 95
Post- modification outstanding recorded investment	$ 86

Note 5 - Loans Disaggregated by

Note 5 - Loans Disaggregated by Impairment Method (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	$ 8,834	$ 7,841	$ 7,394	$ 7,554
Allowance for loan losses - individually evaluated for impairment	1,664	1,392
Allowance for loan losses - collectively evaluated for impairment	6,709	6,080
Loans and leases receivable	785,208	733,078
Loans - individually evaluated for impairment	16,482	13,584
Loans - collectively evaluated for impairment	768,726	719,494
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	3,092	2,711	1,459	1,521
Allowance for loan losses - individually evaluated for impairment	1,461	1,260
Allowance for loan losses - collectively evaluated for impairment	1,631	1,451
Loans and leases receivable	162,452	147,190
Loans - individually evaluated for impairment	7,128	6,498
Loans - collectively evaluated for impairment	155,324	140,692
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	551	563	449	286
Allowance for loan losses - individually evaluated for impairment	0	0
Allowance for loan losses - collectively evaluated for impairment	551	563
Loans and leases receivable	50,135	51,157
Loans - individually evaluated for impairment		1
Loans - collectively evaluated for impairment	50,135	51,156
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	2,824	2,410	2,646	2,411
Allowance for loan losses - individually evaluated for impairment	101
Allowance for loan losses - collectively evaluated for impairment	2,723	2,410
Loans and leases receivable	308,590	286,867
Loans - individually evaluated for impairment	6,083	3,874
Loans - collectively evaluated for impairment	302,507	282,993
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	754	816	1,760	1,812
Allowance for loan losses - individually evaluated for impairment	97	84
Allowance for loan losses - collectively evaluated for impairment	657	732
Loans and leases receivable	68,581	71,703
Loans - individually evaluated for impairment	1,740	1,744
Loans - collectively evaluated for impairment	66,841	69,959
State and Political Subdivisions Portfolio Segment [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	153	114	123	222
Allowance for loan losses - individually evaluated for impairment	0	0
Allowance for loan losses - collectively evaluated for impairment	153	114
Loans and leases receivable	43,737	38,087
Loans - individually evaluated for impairment	0	0
Loans - collectively evaluated for impairment	43,737	38,087
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	164	57	76	76
Allowance for loan losses - individually evaluated for impairment	0	0
Allowance for loan losses - collectively evaluated for impairment	164	57
Loans and leases receivable	6,785	6,680
Loans - individually evaluated for impairment	77	85
Loans - collectively evaluated for impairment	6,708	6,595
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	497	444	366	350
Allowance for loan losses - individually evaluated for impairment		8
Allowance for loan losses - collectively evaluated for impairment	497	436
Loans and leases receivable	67,453	55,818
Loans - individually evaluated for impairment	1,268	1,218
Loans - collectively evaluated for impairment	66,185	54,600
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	338	357	353	428
Allowance for loan losses - individually evaluated for impairment	5	40
Allowance for loan losses - collectively evaluated for impairment	333	317
Loans and leases receivable	77,475	75,576
Loans - individually evaluated for impairment	186	164
Loans - collectively evaluated for impairment	77,289	75,412
Unallocated Financing Receivables [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	$ 461	$ 369	$ 162	$ 284

Note 5 - Impaired Loans (Detail

Note 5 - Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	$ 11,763	$ 11,125
Unpaid principal balance - with no specific allowance	12,873	12,531
Recorded investment - with an allowance	4,719	2,459
Unpaid principal balance - with an allowance	6,042	3,676
Related allowance	1,664	1,392
Unpaid principal balance	18,915	16,207
Recorded investment	16,482	13,584
Average recorded investment	14,290	14,738	$ 13,488
Interest income recognized	452	198	233
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	4,243	5,070
Unpaid principal balance - with no specific allowance	4,525	5,461
Recorded investment - with an allowance	2,885	1,428
Unpaid principal balance - with an allowance	4,128	2,593
Related allowance	1,461	1,260
Unpaid principal balance	8,653	8,054
Recorded investment	7,128	6,498
Average recorded investment	6,064	5,301	4,200
Interest income recognized	227	14	58
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	0	1
Unpaid principal balance - with no specific allowance	0	1
Recorded investment - with an allowance	0	0
Unpaid principal balance - with an allowance	0	0
Related allowance	0	0
Unpaid principal balance	0	1
Recorded investment	0	1
Average recorded investment		51	370
Interest income recognized		2	18
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	5,012	3,874
Unpaid principal balance - with no specific allowance	5,577	4,464
Recorded investment - with an allowance	1,071	0
Unpaid principal balance - with an allowance	1,095	0
Related allowance	101	0
Unpaid principal balance	6,672	4,464
Recorded investment	6,083	3,874
Average recorded investment	4,908	5,744	6,129
Interest income recognized	189	145	131
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	1,023	914
Unpaid principal balance - with no specific allowance	1,140	1,239
Recorded investment - with an allowance	717	830
Unpaid principal balance - with an allowance	773	879
Related allowance	97	84
Unpaid principal balance	1,913	2,118
Recorded investment	1,740	1,744
Average recorded investment	1,800	2,252	1,960
Interest income recognized	23	23	15
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	77	85
Unpaid principal balance - with no specific allowance	84	90
Recorded investment - with an allowance	0	0
Unpaid principal balance - with an allowance	0	0
Related allowance	0	0
Unpaid principal balance	84	90
Recorded investment	77	85
Average recorded investment	81	97	29
Interest income recognized			0
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	1,268	1,057
Unpaid principal balance - with no specific allowance	1,357	1,108
Recorded investment - with an allowance	0	161
Unpaid principal balance - with an allowance	0	163
Related allowance	0	8
Unpaid principal balance	1,357	1,271
Recorded investment	1,268	1,218
Average recorded investment	1,251	1,155	583
Interest income recognized	12	13	10
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	140	124
Unpaid principal balance - with no specific allowance	190	168
Recorded investment - with an allowance	46	40
Unpaid principal balance - with an allowance	46	41
Related allowance	5	40
Unpaid principal balance	236	209
Recorded investment	186	164
Average recorded investment	186	138	129
Interest income recognized	$ 1	$ 1	1
Finance Leases Portfolio Segment [Member]
Financing Receivable Impaired [Line Items]
Average recorded investment			88
Interest income recognized			$ 0

Note 6 - Premises and Equipme_3

Note 6 - Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Book value	$ 29,692	$ 27,391
Accumulated depreciation and amortization	(19,774)	(18,896)
Net book value	9,918	8,495
Land and Building [Member]
Property, Plant and Equipment [Line Items]
Book value	12,258	11,464
Furniture and Equipment Member]
Property, Plant and Equipment [Line Items]
Book value	14,618	13,599
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Book value	$ 2,816	$ 2,328

Note 6 - Premises and Equipme_4

Note 6 - Premises and Equipment (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Abstract]
Depreciation	$ 990,000	$ 821,000	$ 891,000

Note 7 - Intangible Assets an_3

Note 7 - Intangible Assets and Loan Servicing (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Intangible Assets and Loan Servicing Details [Line Items]
Servicing asset loans unpaid principal balance	$ 73,993	$ 77,170
Servicing asset at fair value, amount	$ 604	$ 585
Minimum [Member]
Intangible Assets and Loan Servicing Details [Line Items]
Servicing assets and servicing liabilities at fair value, assumptions used to estimate fair value, discount rate	12.00%	13.00%
Maximum [Member]
Intangible Assets and Loan Servicing Details [Line Items]
Servicing assets and servicing liabilities at fair value, assumptions used to estimate fair value, discount rate	12.50%	15.00%

Note 7 - Activity of Mortgage S

Note 7 - Activity of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Transfers And Servicing Of Financial Assets [Abstract]
Balance at beginning of year	$ 483	$ 498	$ 504
Mortgage servicing rights capitalized	33	67	69
Mortgage servicing rights amortized	(66)	(83)	(79)
Fair market value adjustments	1	1	4
Balance at end of year	$ 451	$ 483	$ 498

Note 7 - Annual Estimated Amort

Note 7 - Annual Estimated Amortization Expense of Intangible Assets (Details) $ in Thousands	Dec. 31, 2018USD ($)
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
2019	$ 71
2020	62
2021	53
2022	46
2023	$ 39

Note 8 - Time Deposits (Details

Note 8 - Time Deposits (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Banking And Thrift [Abstract]
Total time deposits	$ 223,788	$ 225,182
Time deposits $250,000 or more	$ 47,266	$ 42,362

Note 8 - Time Deposits - Schedu

Note 8 - Time Deposits - Schedule of Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Maturities Of Time Deposits [Abstract]
2019	$ 78,931
2020	73,399
2021	43,441
2022	17,272
2023	10,745
Total time deposits	$ 223,788	$ 225,182

Note 9 - Schedule of Short-Term

Note 9 - Schedule of Short-Term Borrowings (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017
Short-term Borrowings [Line Items]
Balance		$ 50,872	$ 55,756
Securities Sold under Agreements to Repurchase [Member]
Short-term Borrowings [Line Items]
Balance	[1]	47,007	41,845
Maximum indebtedness at any month end	[1]	47,007	43,834
Daily average indebtedness outstanding	[1]	$ 38,172	$ 39,301
Average rate paid for the year	[1]	0.55%	0.38%
Average rate on period-end borrowings	[1]	0.67%	0.40%
Other Short Term Debt [Member]
Short-term Borrowings [Line Items]
Balance	[2]	$ 3,865	$ 13,911
Maximum indebtedness at any month end	[2]	46,451	33,773
Daily average indebtedness outstanding	[2]	$ 22,767	$ 9,371
Average rate paid for the year	[2]	2.03%	1.09%
Average rate on period-end borrowings	[2]	2.65%	1.20%
[1]	Securities sold under agreements to repurchase mature overnight. The repurchase agreements were collateralized by U.S. Government mortgage-backed securities and CMOs with an amortized cost of $62,445,000 and $53,112,000 and a fair value of $60,408,000 and $51,823,000 and at December 31, 2018 and 2017, respectively. These securities are held in safekeeping at the Federal Reserve Bank of Boston.
[2]	Other short-term borrowings include Federal funds purchased and overnight borrowings from the FHLB.

Note 9 - Short-Term Borrowing_2

Note 9 - Short-Term Borrowings (Details Textual)	Dec. 31, 2018USD ($)FederalFund	Dec. 31, 2017USD ($)
Short-term Borrowings [Line Items]
Available-for-sale Securities Pledged as Collateral	$ 194,573,000	$ 202,887,000
Federal Funds Unsecured Number of Lines | FederalFund	4
Federal Funds Unsecured Lines	$ 46,000,000
Federal Funds Purchased	0	0
Securities Sold under Agreements to Repurchase [Member]
Short-term Borrowings [Line Items]
Available for Sale Securities Pledged as Collateral Amortized Cost	62,445,000	53,112,000
Available-for-sale Securities Pledged as Collateral	$ 60,408,000	$ 51,823,000

Note 10 - Long-Term Debt (Detai

Note 10 - Long-Term Debt (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Long Term Debt [Line Items]
FHLB stock	$ 785	$ 1,489
Maximum borrowing capacity with FHLB	315,334
Borrowings outstanding with FHLB	3,865	$ 13,911
Letter of Credit [Member]
Long Term Debt [Line Items]
Borrowings outstanding with FHLB	$ 350

Note 11 - Income Taxes (Details

Note 11 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax [Line Items]
Effective income tax rate reconciliation, at federal statutory income tax rate, percent			21.00%	34.00%	34.00%
Tax Cuts and Jobs Act, accounting complete				true
Tax Cuts and Jobs Act, change in tax rate, income tax expense benefit			$ 415,000,000	$ 2,054,000
ASU 2018-02 stranded tax reclassification			805,000
ASU 2018-02 [Member]
Income Tax [Line Items]
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings	$ 805,000	$ 805,000	$ 805,000

Note 11 - Provision for Income

Note 11 - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Provision For Income Taxes [Abstract]
Current Federal income taxes									$ 1,742	$ 3,454	$ 3,137
Current state income taxes									57	124	62
Deferred Federal income taxes (benefits)									363	268	(145)
Deferred state income taxes (benefits)									(105)	0	0
Other									(85)	0	0
Net provision prior to discrete tax adjustments									1,972	3,846	3,054
DTL writeoff due to change in tax methods									(415)	0	0
Net DTA revaluation for change in tax rate under 2017 Tax Reform									0	2,054	0
Net provision	$ (339)	$ 767	$ 572	$ 557	$ 2,993	$ 940	$ 845	$ 1,122	$ 1,557	$ 5,900	$ 3,054

Note 11 - Deferred Tax Assets a

Note 11 - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets
Allowance for loan losses	$ 1,855	$ 1,647
Net unrealized holding losses on investment securities available-for-sale	1,896	1,255
Fair value adjustment on equity securities	190	0
Non-credit OTTI on investment securities available-for-sale	0	45
Non-accrual interest income	76	324
Deferred rent	59	55
Deferred revenue	121	80
Incurred but not reported medical expense	33	18
Bonus	178	130
State net operating loss carryforward	29	0
Other	27	16
Total deferred tax assets	4,464	3,570
Deferred tax liabilities
Deferred loan costs	361	0
Depreciation	179	24
Mortgage servicing rights	95	101
Net unrealized holding gains on trading investment securities	0	21
Prepaid expenses	92	95
Other	13	10
Total deferred tax liabilities	740	251
Net deferred tax asset	$ 3,724	$ 3,319

Note 11 - Reconciliation of the

Note 11 - Reconciliation of the Tax Provision (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation Of The Tax Provision [Abstract]
Provision at statutory rate									$ 2,707	$ 4,825	$ 4,073
Tax-exempt interest and dividend income									(577)	(948)	(1,033)
Bank-owned life insurance									(61)	(100)	(105)
Life insurance proceeds									0	(18)	0
Stock-based compensation expense									17	19	30
State income tax									(19)	82	41
Other									(95)	(14)	48
Net provision prior to discrete tax adjustments									1,972	3,846	3,054
DTL writeoff due to change in tax methods									(415)	0	0
Net DTA revaluation for change in tax rate under 2017 Tax Reform									0	2,054	0
Net provision	$ (339)	$ 767	$ 572	$ 557	$ 2,993	$ 940	$ 845	$ 1,122	$ 1,557	$ 5,900	$ 3,054
Provision at statutory rate									21.00%	34.00%	34.00%
Tax-exempt interest and dividend income									(4.50%)	(6.70%)	(8.60%)
Bank-owned life insurance									(0.40%)	(0.70%)	(0.90%)
Life insurance proceeds									(0.00%)	(0.10%)	(0.00%)
Stock-based compensation expense									0.10%	0.10%	0.30%
State income tax									(0.10%)	0.60%	0.30%
Other									(0.80%)	(0.10%)	0.40%
Net provision prior to discrete tax adjustments									15.30%	27.10%	25.50%
DTL writeoff for change in tax methods									(3.20%)	0.00%	0.00%
Net DTA revaluation for change in tax rate under 2017 Tax Reform									0.00%	14.50%	0.00%
Net provision									12.10%	41.60%	25.50%

Note 12 - Employee Benefit Pl_3

Note 12 - Employee Benefit Plans (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee Benefit Plans [Line Items]
Defined contribution plan, plan name	QNB Bank Retirement Savings Plan
Matching company contribution	3.00%
Safe harbor non-elective contributions	5.00%
Matching contribution, amount	$ 271	$ 259	$ 206
Safe harbor contribution, amount	$ 494	$ 478	$ 445
Employee Stock Purchase Plan 2016 [Member]
Employee Benefit Plans [Line Items]
Discount rate on common stock	10.00%
Shares authorized for issuance	30,000
Shares issued	7,015
Expiration date	May 31, 2021
Employee Stock Purchase Plan 2011 [Member]
Employee Benefit Plans [Line Items]
Shares issued since inception of plan	17,516

Note 12 - Schedule of Shares Is

Note 12 - Schedule of Shares Issued (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee Benefit Plans (Details) - Employee Stock Purchase Plan [Line Items]
Shares	2,963	2,660	2,932
Minimum [Member]
Employee Benefit Plans (Details) - Employee Stock Purchase Plan [Line Items]
Price per share	$ 39.47	$ 31.95	$ 26.73
Maximum [Member]
Employee Benefit Plans (Details) - Employee Stock Purchase Plan [Line Items]
Price per share	$ 39.60	$ 36.18	$ 28.35

Note 13 - Stock Option Plan (De

Note 13 - Stock Option Plan (Details Textual) - USD ($)	12 Months Ended			45 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, options, grants in period, gross	25,000	25,000	23,500
Share-based compensation arrangement by share-based payment award, options, exercises in period	13,850	13,125	22,700
Share-based compensation arrangement by share-based payment award, options, outstanding, number	95,075	85,525	73,950	95,075	82,875
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized	$ 114,000			$ 114,000
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition	26 months
The 2005 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of additional shares authorized	200,000
Share-based compensation arrangement by share-based payment award, options, grants in period, gross	184,200
Share-based compensation arrangement by share-based payment award, options, forfeitures and expirations in period	65,850
Share-based compensation arrangement by share-based payment award, options, exercises in period	95,675
Share-based compensation arrangement by share-based payment award, options, outstanding, number	22,675			22,675
The 2015 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, options, grants in period, gross				73,500
Share-based compensation arrangement by share-based payment award, options, forfeitures and expirations in period				1,100
Share-based compensation arrangement by share-based payment award, options, exercises in period	0
Share-based compensation arrangement by share-based payment award, options, outstanding, number	72,400			72,400
Shares authorized for issuance	300,000			300,000
Employee Stock Option [Member] | The 2005 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, period options can be exercised after grant date	6 months
Share-based compensation arrangement by share-based payment award, expiration period	5 years
Share-based compensation arrangement by share-based payment award, award vesting period	3 years

Note 13 - Stock Option Activity

Note 13 - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward
Outstanding-Number of options (in shares)	85,525	73,950	82,875
Exercised-Number of options (in shares)	(13,850)	(13,125)	(22,700)
Forfeited-Number of options (in shares)	(1,600)	(300)	(9,725)
Granted-Number of options (in shares)	25,000	25,000	23,500
Outstanding ending-Number of options (in shares)	95,075	85,525	73,950
Exercisable-Number of options (in shares)	22,675
Outstanding-Weighted average exercise price (in dollars per share)	$ 30.94	$ 27.14	$ 24.33
Exercised-Weighted average exercise price (in dollars per share)	24.96	22.42	20.90
Forfeited-Weighted average exercise price (in dollars per share)	32.52	22.58	25.60
Granted-Weighted average exercise price (in dollars per share)	43.60	37.60	30.40
Outstanding ending-Weighted average exercise price (in dollars per share)	35.11	$ 30.94	$ 27.14
Exercisable-Weighted average exercise price (in dollars per share)	$ 27.84
Outstanding ending-Weighted average remaining contractual term	2 years 6 months 29 days
Exercisable-Weighted average remaining contractual term	8 months 23 days
Outstanding ending-Aggregate intrinsic value	$ 450
Exercisable-Aggregate intrinsic value	$ 242

Note 13 - Outstanding Stock Opt

Note 13 - Outstanding Stock Options (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding	95,075	85,525	73,950	82,875
Exercise price, outstanding	$ 35.11	$ 30.94	$ 27.14	$ 24.33
Remaining life	2 years 6 months 29 days
Options exercisable	22,675
Exercise price, exercisable	$ 27.84
Exercise Price $25.16 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding	7,825
Exercise price, outstanding	$ 25.16
Remaining life	29 days
Options exercisable	7,825
Exercise price, exercisable	$ 25.16
Exercise Price $29.25 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding	14,850
Exercise price, outstanding	$ 29.25
Remaining life	1 year 29 days
Options exercisable	14,850
Exercise price, exercisable	$ 29.25
Exercise Price $30.40 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding	22,950
Exercise price, outstanding	$ 30.40
Remaining life	2 years 1 month 17 days
Exercise Price $37.60 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding	24,450
Exercise price, outstanding	$ 37.60
Remaining life	3 years 1 month 17 days
Exercise Price $43.60 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding	25,000
Exercise price, outstanding	$ 43.60
Remaining life	4 years 1 month 20 days

Note 13 - Intrinsic Value Relat

Note 13 - Intrinsic Value Related to Stock Options Exercised (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Tax Benefits and Intrinsic Value Related to Stock Options Exercised [Abstract]
Intrinsic value of stock options exercised	$ 274	$ 204	$ 234

Note 14 - Schedule of Activity

Note 14 - Schedule of Activity and Amounts Due from Directors, Principal Officers, and Their Related Interests (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Related Party Transactions [Abstract]
Balance, December 31, 2017	$ 12,837
New loans	12,613
Repayments	(12,559)
Balance, December 31, 2018	$ 12,891

Note 14 - Schedule of Additiona

Note 14 - Schedule of Additional Information Regarding Transactions with Related Parties (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Related Party Transactions [Abstract]
Commitments to extend credit	$ 6,867	$ 3,149
Letters of credit	1,296	1,000
Deposits received	$ 7,181	$ 9,550

Note 15 - Financial Instrument

Note 15 - Financial Instrument Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Commitments And Contingencies Disclosure [Line Items]
Commitments to extend credit and unused lines of credit	$ 283,290	$ 328,752
Commitments to Extend Credit [Member]
Commitments And Contingencies Disclosure [Line Items]
Commitments to extend credit and unused lines of credit	266,021	313,541
Standby Letters of Credit [Member]
Commitments And Contingencies Disclosure [Line Items]
Commitments to extend credit and unused lines of credit	$ 17,269	$ 15,211

Note 15 - Commitments and Con_3

Note 15 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments And Contingencies Disclosure [Line Items]
Standby letters of credit	$ 16,694
Operating leases, rent expense, net	$ 681	$ 645	$ 606
Maximum [Member]
Commitments And Contingencies Disclosure [Line Items]
Standby letters of credit expiration period	1 year
Lessee leasing arrangements, operating leases, renewal term	10 years
Minimum [Member]
Commitments And Contingencies Disclosure [Line Items]
Lessee leasing arrangements, operating leases, renewal term	1 year

Note 15 - Minimum Annual Rental

Note 15 - Minimum Annual Rental Commitments (Details) $ in Thousands	Dec. 31, 2018USD ($)
Minimum Annual Rental Commitments [Abstract]
2019	$ 596
2020	484
2021	403
2022	404
2023	357
Thereafter	5,153
Total	$ 7,397

Note 16 - Components of Accumul

Note 16 - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive (loss) income		$ (9,028)	$ (6,191)	$ (5,693)
Tax effect	[1]	1,896	1,300	1,936
Stranded tax effect			805
Accumulated other comprehensive income (loss), net of tax		(7,132)	(4,086)	(3,757)
Unrealized Net Holding (Losses) Gains on Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive (loss) income		$ (9,028)	(6,165)	(5,446)
Unrealized Losses on Available-for-sale Securities for which a Portion of an Other-than-temporary Impairment Loss has been Recognized in Earnings [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive (loss) income			$ (26)	$ (247)
[1]	At tax rates of 21% for 2018, 21% for 2017, and 34% for 2016

Note 16 - Amounts Reclassified

Note 16 - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)		3 Months Ended								12 Months Ended
		Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Total other-than-temporary impairment loss on investment securities											$ (80,000)	$ (192,000)
Income before income taxes		$ 1,988,000	$ 3,978,000	$ 3,434,000	$ 3,492,000	$ 3,482,000	$ 3,494,000	$ 3,231,000	$ 3,982,000	$ 12,892,000	14,189,000	11,978,000
Tax effect		339,000	(767,000)	(572,000)	(557,000)	(2,993,000)	(940,000)	(845,000)	(1,122,000)	(1,557,000)	(5,900,000)	(3,054,000)
Net income		$ 2,327,000	$ 3,211,000	$ 2,862,000	$ 2,935,000	$ 489,000	$ 2,554,000	$ 2,386,000	$ 2,860,000	11,335,000	8,289,000	8,924,000
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Realized net holding gains on available-for-sale securities										3,000	1,580,000	866,000
Total other-than-temporary impairment loss on investment securities											(80,000)	(192,000)
Income before income taxes										3,000	1,500,000	674,000
Tax effect	[1]									(1,000)	(510,000)	(229,000)
Net income										$ 2,000	$ 990,000	$ 445,000
[1]	At rate of 21% for 2018 and 34% for both 2017 and 2016

Note 17 - Financial Assets Meas

Note 17 - Financial Assets Measured at Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	$ 344,221	$ 374,570
Equity securities	9,421	4,975
US Government Agencies Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	68,409	70,524
US States and Political Subdivisions Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	66,313	76,804
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	125,913	142,703
Collateralized Mortgage Obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	75,491	76,302
Pooled Trust Preferred Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	116	215
Corporate Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	7,979	8,022
Fair Value, Inputs, Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity securities	9,421	4,975
Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	344,105	374,355
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	68,409	70,524
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	66,313	76,804
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	125,913	142,703
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	75,491	76,302
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	7,979	8,022
Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	116	215
Fair Value, Inputs, Level 3 [Member] | Pooled Trust Preferred Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt securities available-for-sale	116	215
Recurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset fair value measurements	353,642	379,545
Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset fair value measurements	9,421	4,975
Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset fair value measurements	344,105	374,355
Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset fair value measurements	116	215
Nonrecurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset fair value measurements	3,060	1,101
Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset fair value measurements	3,055	1,067
Nonrecurring [Member] | Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset fair value measurements	5	34
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset fair value measurements	3,060	1,101
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset fair value measurements	3,055	1,067
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset fair value measurements	$ 5	$ 34

Note 17 - Quantitative Informat

Note 17 - Quantitative Information about Assets Measured at Fair Value (Details) $ in Thousands		12 Months Ended
		Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Nonrecurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Asset fair value measurements		$ 3,060	$ 1,101
Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Asset fair value measurements		3,055	1,067
Nonrecurring [Member] | Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Asset fair value measurements		5	34
Fair Value, Inputs, Level 3 [Member] | Nonrecurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Asset fair value measurements		3,060	1,101
Fair Value, Inputs, Level 3 [Member] | Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Asset fair value measurements		3,055	1,067
Fair Value, Inputs, Level 3 [Member] | Nonrecurring [Member] | Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Asset fair value measurements		$ 5	$ 34
Fair Value, Inputs, Level 3 [Member] | Appraisal Valuation Technique [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value liquidation inputs	[1],[2]	(10.00%)	(10.00%)
Fair Value, Inputs, Level 3 [Member] | Appraisal Valuation Technique [Member] | Measurement Input, Comparability Adjustment [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[2],[3]	(0.20)	(0.15)
Fair Value, Inputs, Level 3 [Member] | Appraisal Valuation Technique [Member] | Measurement Input, Comparability Adjustment [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[2],[3]	(0.90)	(0.90)
Fair Value, Inputs, Level 3 [Member] | Appraisal Valuation Technique [Member] | Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Asset fair value measurements	[2]	$ 1,632	$ 943
Fair Value, Inputs, Level 3 [Member] | Used Commercial Vehicle Guides Valuation Technique [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[4]	(10.00%)
Fair Value, Inputs, Level 3 [Member] | Used Commercial Vehicle Guides Valuation Technique [Member] | Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Asset fair value measurements	[4]	$ 8
Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flow Valuation Technique [Member] | Measurement Input, Expected Term [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value expected term		2 years	2 years
Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flow Valuation Technique [Member] | Measurement Input, Expected Term [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value expected term		26 years	26 years
Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flow Valuation Technique [Member] | Measurement Input, Discount Rate [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs		12.00%	13.00%
Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flow Valuation Technique [Member] | Measurement Input, Discount Rate [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs		12.50%	15.00%
Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flow Valuation Technique [Member] | Nonrecurring [Member] | Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Asset fair value measurements		$ 5	$ 34
Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[5]	(25.00%)	(25.00%)
Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Maximum [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[5]	(100.00%)	(50.00%)
Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Nonrecurring [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Asset fair value measurements	[5]	$ 1,415	$ 124
[1]	Appraisals and pending agreements of sale are adjusted by management for estimated liquidation expenses. The range is presented as a percent of the initial appraised value.
[2]	Fair value is primarily determined through appraisals of the underlying collateral by independent parties, which generally includes various level 3 inputs which are not always identifiable.
[3]	Appraisals may be adjusted by management for qualitative factors such as economic conditions and the age of the appraisal. The range is presented as a percent of the initial appraised value.
[4]	If lendable value (lower than wholesale) is utilized then no additional discounts are taken. If lendable value is not provided, then additional discounts are applied.
[5]	Values obtained from financial statements for UCC collateral (fixed assets and inventory) are discounted to estimated realizable liquidation value.

Note 17 - Available-for-sale Se

Note 17 - Available-for-sale Securities Measured at Fair Value Using Significant Unobservable Inputs (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance, beginning of year	$ 215	$ 2,281
Payments received	(119)	(55)
Sale of securities	0	(2,026)
Included in earnings	0	(15)
Included in other comprehensive income	20	30
Transfers in and/or out of Level 3	0	0
Balance, end of year	$ 116	$ 215

Note 17 - Fair Value Measurem_3

Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details Textual)	12 Months Ended
	Dec. 31, 2018USD ($)securityissuer	Dec. 31, 2017USD ($)
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Number of underlying issuers | issuer	4
Expected credit losses or prepayments	$ 0
Swap rate period	30 years
Measurement Input, Discount Rate [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Discount rate	0.0575
Fair Value, Inputs, Level 3 [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset, gain (loss) included in earnings	$ 0	$ (15,000)
Fair Value, Inputs, Level 3 [Member] | Collateralized Debt Obligations [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Number of trust preferred securities | security	1
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value, measurement with unobservable inputs reconciliation, recurring basis, asset, gain (loss) included in earnings	$ 0	$ (15,000)

Note 17 - Financial and Off-bal

Note 17 - Financial and Off-balance Sheet Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 13,458	$ 16,331	$ 10,721	$ 16,991
Available-for-sale	344,221	374,570
Equity	9,421	4,975
Restricted investment in bank stocks	797	1,501
Net loans	776,614	725,442
Mortgage servicing rights	451	483
Accrued interest receivable	2,852	3,545
Deposits	1,015,598	993,948
Short-term borrowings	50,872	55,756
Accrued interest payable	449	384
Cash and cash equivalents	13,458	16,331
Restricted investment in bank stocks	797	1,501
Net loans	771,685	727,341
Mortgage servicing rights	604	585
Accrued interest receivable	2,852	3,545
Short-term borrowings	50,872	55,756
Accrued interest payable	449	384
Fair Value, Inputs, Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Equity	9,421	4,975
Cash and cash equivalents	13,458	16,331
Short-term borrowings	50,872	55,756
Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale	344,105	374,355
Restricted investment in bank stocks	797	1,501
Accrued interest receivable	2,852	3,545
Accrued interest payable	449	384
Fair Value, Inputs, Level 3 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Available-for-sale	116	215
Net loans	771,685	727,341
Mortgage servicing rights	604	585
Standby Letters of Credit [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Commitments to extend credit	31
Standby Letters of Credit [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Commitments to extend credit	31
With No Stated Maturities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Deposits	791,810	768,766
Deposits	791,810	768,766
With No Stated Maturities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Deposits	791,810	768,766
With Stated Maturities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Deposits	223,788	225,182
Deposits	220,876	223,325
With Stated Maturities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Deposits	$ 220,876	$ 223,325

Note 18 - Condensed Balance She

Note 18 - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 13,458	$ 16,331	$ 10,721	$ 16,991
Investment equity securities	9,421	4,975
Other assets	3,255	3,265
Total assets	1,175,452	1,152,337
Liabilities
Other liabilities	4,185	3,679
Shareholders' equity	104,348	98,570	93,567	90,443
Total liabilities and shareholders' equity	1,175,452	1,152,337
Parent Company [Member]
Assets
Cash and cash equivalents	72	4,667	$ 60	$ 79
Investment equity securities	9,421	4,975
Investment in subsidiary	94,477	89,258
Other assets	379	74
Total assets	104,349	98,974
Liabilities
Other liabilities	1	404
Shareholders' equity	104,348	98,570
Total liabilities and shareholders' equity	$ 104,349	$ 98,974

Note 18 - Condensed Statement o

Note 18 - Condensed Statement of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Income Statements, Captions [Line Items]
Securities gains									$ (79)
Net unrealized loss on investment equity securities									(336)
Provision for income taxes	$ (339)	$ 767	$ 572	$ 557	$ 2,993	$ 940	$ 845	$ 1,122	1,557	$ 5,900	$ 3,054
Net income	$ 2,327	$ 3,211	$ 2,862	$ 2,935	$ 489	$ 2,554	$ 2,386	$ 2,860	11,335	8,289	8,924
Parent Company [Member]
Condensed Income Statements, Captions [Line Items]
Dividends from subsidiary									4,027	3,382	3,093
Interest, dividend and other income									266	183	171
Securities gains									(79)	1,477	566
Net unrealized loss on investment equity securities									(336)
Total income									3,878	5,042	3,830
Expenses									513	301	295
Income before applicable income taxes and equity in undistributed income of subsidiary									3,365	4,741	3,535
Provision for income taxes									(256)	554	159
Income before equity in undistributed income of subsidiary									3,621	4,187	3,376
Equity in undistributed income of subsidiary									7,714	4,102	5,548
Net income									$ 11,335	$ 8,289	$ 8,924

Note 18 - Condensed Statement_2

Note 18 - Condensed Statement of Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Statement of Income Captions [Line Items]
Net income, Before tax amount	$ 1,988	$ 3,978	$ 3,434	$ 3,492	$ 3,482	$ 3,494	$ 3,231	$ 3,982	$ 12,892	$ 14,189	$ 11,978
Net unrealized holding (losses) gains on securities:
Unrealized holding (losses) gains arising during the period, Before tax amount									(3,156)	1,002	(4,192)
Reclassification adjustment for gains included in net income, Before tax amount									(3)	(1,500)	(674)
Other comprehensive loss, Before tax amount									(3,159)	(498)	(4,866)
Unrealized holding (losses) gains arising during the period, Tax expense (benefit)									(663)	341	(1,426)
Reclassification adjustment for gains included in net income, Tax expense (benefit)									(1)	(510)	(229)
Other comprehensive loss, Tax expense (benefit)									(664)	(169)	(1,655)
Unrealized holding (losses) gains arising during the period, Net of tax amount									(2,493)	661	(2,766)
Reclassification adjustment for gains included in net income, Net of tax amount									(2)	(990)	(445)
Other comprehensive loss, Net of tax amount									(2,495)	(329)	(3,211)
Total comprehensive income, Before tax amount									9,733	13,691	7,112
Total comprehensive income, Tax expense (benefit)									893	5,731	1,399
Net income	$ 2,327	$ 3,211	$ 2,862	$ 2,935	$ 489	$ 2,554	$ 2,386	$ 2,860	11,335	8,289	8,924
Total comprehensive income, Net of tax amount									8,840	7,960	5,713
Parent Company [Member]
Condensed Statement of Income Captions [Line Items]
Net income, Before tax amount									12,892	14,189	11,978
Net unrealized holding (losses) gains on securities:
Unrealized holding (losses) gains arising during the period, Before tax amount									(3,156)	1,002	(4,192)
Reclassification adjustment for gains included in net income, Before tax amount									(3)	(1,500)	(674)
Other comprehensive loss, Before tax amount									(3,159)	(498)	(4,866)
Unrealized holding (losses) gains arising during the period, Tax expense (benefit)									(663)	341	(1,426)
Reclassification adjustment for gains included in net income, Tax expense (benefit)									(1)	(510)	(229)
Other comprehensive loss, Tax expense (benefit)									(664)	(169)	(1,655)
Unrealized holding (losses) gains arising during the period, Net of tax amount									(2,493)	661	(2,766)
Reclassification adjustment for gains included in net income, Net of tax amount									(2)	(990)	(445)
Other comprehensive loss, Net of tax amount									(2,495)	(329)	(3,211)
Total comprehensive income, Before tax amount									9,733	13,691	7,112
Tax expense (benefit)									1,557	5,900	3,054
Total comprehensive income, Tax expense (benefit)									893	5,731	1,399
Net income									11,335	8,289	8,924
Total comprehensive income, Net of tax amount									$ 8,840	$ 7,960	$ 5,713

Note 18 - Condensed Statement_3

Note 18 - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Activities
Net income	$ 2,327	$ 3,211	$ 2,862	$ 2,935	$ 489	$ 2,554	$ 2,386	$ 2,860	$ 11,335	$ 8,289	$ 8,924
Adjustments to reconcile net income to net cash provided by operating activities:
Net unrealized loss on investment equity securities									336
Stock-based compensation expense									117	102	88
(Decrease) increase in other liabilities									601	421	469
Decrease (increase) in other assets									73	(887)	(363)
Deferred income tax provision									258	2,322	(145)
Net cash provided by operating activities									16,651	16,162	11,332
Investing activities
Purchase of investment equity securities									(9,763)	(9,998)	(7,327)
Proceeds from sale of investment equity securities									4,902	14,422	7,137
Net cash used in investing activities									(33,111)	(91,182)	(53,991)
Financing activities
Cash dividend paid									(3,863)	(3,731)	(3,556)
Proceeds from issuance of common stock									684	672	862
Tax benefit from exercise of stock options											17
Net cash provided by financing activities									13,587	80,630	36,389
Increase (decrease) in cash and cash equivalents									(2,873)	5,610	(6,270)
Cash and cash equivalents at beginning of year				16,331				10,721	16,331	10,721	16,991
Cash and cash equivalents at end of period	13,458				16,331				13,458	16,331	10,721
Parent Company [Member]
Operating Activities
Net income									11,335	8,289	8,924
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income from subsidiary									(7,714)	(4,102)	(5,548)
Net securities losses (gains)									79	(1,477)	(566)
Net unrealized loss on investment equity securities									336
Stock-based compensation expense									117	102	88
(Decrease) increase in other liabilities									(403)	335	(67)
Decrease (increase) in other assets									(147)	(3)	3
Deferred income tax provision									(158)	98	14
Net cash provided by operating activities									3,445	3,242	2,848
Investing activities
Purchase of investment equity securities									(9,763)	(9,998)	(7,327)
Proceeds from sale of investment equity securities									4,902	14,422	7,137
Net cash used in investing activities									(4,861)	4,424	(190)
Financing activities
Cash dividend paid									(3,863)	(3,731)	(3,556)
Proceeds from issuance of common stock									684	672	862
Tax benefit from exercise of stock options											17
Net cash provided by financing activities									(3,179)	(3,059)	(2,677)
Increase (decrease) in cash and cash equivalents									(4,595)	4,607	(19)
Cash and cash equivalents at beginning of year				$ 4,667				$ 60	4,667	60	79
Cash and cash equivalents at end of period	$ 72				$ 4,667				$ 72	$ 4,667	$ 60

Note 19 - Regulatory Restrict_3

Note 19 - Regulatory Restrictions (Details Textual)	Jan. 01, 2019	Dec. 31, 2018	Jan. 01, 2016	Dec. 31, 2014
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Common Equity Tier1 Capital to Risk Weighted Assets, Actual, Ratio		4.50%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets		6.00%		4.00%
Capital Required for Capital Adequacy to Risk Weighted Assets		8.00%
Tier One Leverage Capital to Average Assets		4.00%
Capital Conservation Buffer			0.625%
Capital Conservation Buffer Annual Phase-in			0.625%
Subsequent Event [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital Conservation Buffer	2.50%

Note 19 - Capital Ratios and Re

Note 19 - Capital Ratios and Regulatory Minimum Requirements (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2014
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Tier 1 leverage capital to average assets	4.00%
Capital required for capital adequacy to risk-weighted assets	8.00%
Tier 1 capital required for capital adequacy to risk-weighted assets	6.00%		4.00%
Consolidated Entities [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital	$ 120,379	$ 110,352
Tier 1 capital	111,472	102,438
Common equity tier 1 capital	111,472	102,438
Tier 1 leverage capital	$ 111,472	$ 102,438
Capital to risk-weighted assets	13.21%	12.52%
Tier 1 capital to risk-weighted assets	12.23%	11.62%
Common equity tier 1 capital to risk-weighted assets	12.23%	11.62%
Tier 1 leverage capital to average assets	9.40%	8.88%
Capital required for capital adequacy	$ 72,910	$ 70,520
Tier 1 capital required for capital adequacy	54,682	52,890
Common equity tier 1 capital required for capital adequacy	41,012	39,668
Tier 1 leverage capital required for capital adequacy	$ 47,458	$ 46,149
Capital required for capital adequacy to risk-weighted assets	8.00%	8.00%
Tier 1 capital required for capital adequacy to risk-weighted assets	6.00%	6.00%
Common equity tier 1 capital required for capital adequacy to risk-weighted assets	4.50%	4.50%
Tier 1 leverage capital required for capital adequacy to average assets	4.00%	4.00%
Capital required to be well capitalized	$ 91,137	$ 88,150
Tier 1 capital required to be well capitalized	$ 54,682	$ 52,890
Capital required to be well capitalized to risk-weighted assets	10.00%	10.00%
Tier 1 capital required to be well capitalized to risk-weighted assets	6.00%	6.00%
Bank [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital	$ 110,508	$ 101,040
Tier 1 capital	101,601	93,126
Common equity tier 1 capital	101,601	93,126
Tier 1 leverage capital	$ 101,601	$ 93,126
Capital to risk-weighted assets	12.52%	11.67%
Tier 1 capital to risk-weighted assets	11.51%	10.75%
Common equity tier 1 capital to risk-weighted assets	11.51%	10.75%
Tier 1 leverage capital to average assets	8.64%	8.14%
Capital required for capital adequacy	$ 70,619	$ 69,277
Tier 1 capital required for capital adequacy	52,964	51,957
Common equity tier 1 capital required for capital adequacy	39,723	38,968
Tier 1 leverage capital required for capital adequacy	$ 47,045	$ 45,761
Capital required for capital adequacy to risk-weighted assets	8.00%	8.00%
Tier 1 capital required for capital adequacy to risk-weighted assets	6.00%	6.00%
Common equity tier 1 capital required for capital adequacy to risk-weighted assets	4.50%	4.50%
Tier 1 leverage capital required for capital adequacy to average assets	4.00%	4.00%
Capital required to be well capitalized	$ 88,273	$ 86,596
Tier 1 capital required to be well capitalized	70,619	69,277
Common equity tier 1 capital required to be well capitalized	57,378	56,287
Tier 1 leverage capital required to be well capitalized	$ 58,807	$ 57,201
Capital required to be well capitalized to risk-weighted assets	10.00%	10.00%
Tier 1 capital required to be well capitalized to risk-weighted assets	8.00%	8.00%
Common equity tier 1 capital required to be well capitalized to risk-weighted assets	6.50%	6.50%
Tier 1 leverage capital required to be well capitalized to average assets	5.00%	5.00%

Note 20 - Unaudited Quarterly R

Note 20 - Unaudited Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2018		Sep. 30, 2018		Jun. 30, 2018		Mar. 31, 2018		Dec. 31, 2017		Sep. 30, 2017		Jun. 30, 2017		Mar. 31, 2017		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Unaudited Quarterly Results Of Operations [Abstract]
Interest income	$ 11,203		$ 10,926		$ 10,562		$ 10,509		$ 9,944		$ 9,830		$ 9,192		$ 9,136		$ 43,200	$ 38,102	$ 33,237
Interest expense	2,383		2,222		1,862		1,718		1,575		1,515		1,334		1,256		8,185	5,680	4,733
Net interest income	8,820		8,704		8,700		8,791		8,369		8,315		7,858		7,880		35,015	32,422	28,504
Provision for (credit to) loan losses	187		568		187		188		700		100		300		300		1,130	1,400	30
Non-interest income	144		2,227		1,454		1,067		1,812		1,470		1,615		1,990		4,892	6,887	5,667
Non-interest expense	6,789		6,385		6,533		6,178		5,999		6,191		5,942		5,588		25,885	23,720	22,163
Income before income taxes	1,988		3,978		3,434		3,492		3,482		3,494		3,231		3,982		12,892	14,189	11,978
Provision for income taxes	(339)		767		572		557		2,993		940		845		1,122		1,557	5,900	3,054
Net income	$ 2,327		$ 3,211		$ 2,862		$ 2,935		$ 489		$ 2,554		$ 2,386		$ 2,860		$ 11,335	$ 8,289	$ 8,924
Earnings Per Share - basic	$ 0.67	[1]	$ 0.93	[1]	$ 0.83	[1]	$ 0.85	[1]	$ 0.14	[1]	$ 0.74	[1]	$ 0.70	[1]	$ 0.84	[1]	$ 3.27	$ 2.42	$ 2.64
Earnings Per Share - diluted	$ 0.67	[1]	$ 0.92	[1]	$ 0.82	[1]	$ 0.85	[1]	$ 0.14	[1]	$ 0.74	[1]	$ 0.69	[1]	$ 0.83	[1]	$ 3.25	$ 2.41	$ 2.63
[1]	Due to rounding, quarterly earnings per share may not sum to annual earnings per share