Current Press Releases

QNB Corp. Declares Q2 2022 Dividend

Quakertown, PA (May 24, 2022) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on May 24, 2022, declared a quarterly cash dividend of $0.36 per share. The cash dividend is payable on June 24, 2022, to shareholders of record on June 10, 2022.

QNB Corp. offers commercial and retail banking services through the twelve banking offices of its subsidiary, QNB Bank. QNB Corp.’s stock is traded in the over-the-counter market under the symbol “QNBC.” For more information, visit QNB’s website at QNBbank.com.

QNB Bank Promotes Mandi Remick to Assistant Manager at Customer Service Center

Quakertown, PA (May 9, 2022) Mandi Remick was named Assistant Manager II at QNB Bank’s Customer Service Center. In her role, Mandi is responsible for directing the workflow of the service center while managing and developing customer relationships. She works with customers and prospects over the phone and through QNB’s chat feature, providing best-in-class service and customer support.

Mandi has been in banking for 13 years, previously serving as Assistant Manager I at QNB’s Customer Service Center. She graduated from Quakertown Community High School and earned an associate degree from the Culinary Institute of America. She also earned an American Bankers Association Team Leader Certificate. Mandi is active in the community serving as Team QNB Co-Captain for the March of Dimes March for Babies fundraiser. She also enjoys taking part in various other local volunteering opportunities.

QNB Bank Employee Earns International Trade Certificate

Quakertown, PA (May 4, 2022) QNB Bank is pleased to announce Jessica Bealer, Vice President, International Services, recently earned her Certificate for Documentary Credit Specialists (“CDCS”) from The London Institute of Banking & Finance.

The CDCS is a professional qualification recognized worldwide as a benchmark of competence for international trade practitioners. Earning the CDCS demonstrates a breadth of knowledge and understanding of the complex issues associated with documentary credit practice, compliance with regulatory requirements, transaction risk and mitigation, and products and payment methods. To qualify for the CDCS certification, individuals must have experience and education in international trade in a financial services environment and pass an examination.

“Earning the CDCS certification is an impressive accomplishment that highlights Jessica’s extensive experience, discipline, and knowledge of international trade,” said Dave Freeman, QNB Bank President and CEO. “We salute Jessica on receiving this internationally recognized certification and are proud of the international trade capabilities QNB offers our customers.”

Ms. Bealer has been in banking for 30 years. Prior to joining QNB Bank in 2017, she served as VP, International Operations Manager at National Penn Bank. She graduated from Moravian College where she earned her Bachelor of Arts degree in Accounting.

QNB Bank Donates $40,000 to Local Education Organizations

Quakertown, PA (April 28, 2022) QNB Bank has donated $40,000 to local education organizations through the Commonwealth of Pennsylvania’s Educational Improvement Tax Credit (EITC) program. The program awards tax credits to businesses for contributions to Educational Improvement Organizations. Since 2017, QNB has donated $247,750 through the program.

For 2022, QNB donated to the following 17 organizations: Allentown School District Foundation, Allentown Symphony Association, Big Brothers Big Sisters of the Lehigh Valley, Boy Scouts of America - Minsi Trails Council, Bucks County Community College Foundation, Camelot for Children, Centennial Education Foundation, Communities in Schools of the Lehigh Valley, Inc., Community Bike Works, Flint Hill Farm Educational Center, Inc., Girl Scouts of Eastern Pennsylvania, Lehigh Carbon Community College Foundation, Lower Macungie Library, Inc., North Penn Valley Boys & Girls Club, Inc., Touchstone Theatre, Upper Perkiomen Education Foundation, and Valley Youth House Committee, Inc.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.6 billion, QNB currently operates twelve branches in Bucks, Montgomery, and Lehigh Counties. More information about QNB is available at QNBbank.com.

QNB Corp. Reports Earnings for First Quarter 2022

Quakertown, PA (April 26, 2022) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the first quarter of 2022 of $3,710,000, or $1.04 per share on a diluted basis. This compares to net income of $5,050,000, or $1.42  per share on a diluted basis, for the same period in 2021. 

For the quarter ended March 31, 2022, the annualized rate of return on average assets and average shareholders’ equity was 0.90% and 10.60%, respectively, compared with 1.40% and 15.70%, respectively, for the first quarter 2021.

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., declined for the quarter ended March 31, 2022 in comparison with the same period in 2021 due to reduced non-interest income.  The change in contribution from QNB Corp. for the quarter ended March 31, 2022, compared with the same period in 2021, is primarily due to the change in fair value of the equities portfolio held at the holding company.

The following table presents disaggregated net income:

QNBC Q1 2022 Earnings

Total assets as of March 31, 2022 were $1,647,986,000 compared with $1,673,340,000 at December 31, 2021.  Total available for sale debt securities decreased $35,514,000, or 5.1%, to  $656,846,000, due primarily to the reduction in fair value of the portfolio, in response to the rise in interest rates during the period.  Total deposits increased $2,008,000 to $1,451,753,000.  The Bank participated in both rounds of the Small Business Administration’s Paycheck Protection Program (“PPP”).  Loans receivable, excluding PPP, grew $7,900,000 to approximately $920,500,000 since December 31, 2021.

“The quarter, while not record-setting, provided solid shareholder returns of $1.04 per share.   We are pleased with the operating performance at the bank, our very strong credit quality and continued household growth,” stated David W. Freeman, President and Chief Executive Officer.

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended March 31, 2022 totaled $10,736,000, an increase of $219,000 from the same period in 2021. The net interest margin for the first quarters of 2022 and 2021 was 2.71% and 3.07%, respectively.   The yield on average earning assets decreased 44 basis points to 2.97% for the first quarter of 2022, compared with 3.41% the first quarter of 2021.  The cost of interest-bearing liabilities decreased to 0.34% for the quarter, compared with 0.44% for the same period in 2021.  Proceeds from average deposit growth, PPP loan forgiveness and excess cash over the past year were invested in available-for-sale securities, primarily mortgage-backed securities, which comprised 42.7% of average earnings assets in the first quarter of 2022, compared with 30.7% for the same period in 2021.  This increase in marketable securities as a percent of earnings assets is the primary reason for the reduction in net interest margin, as these securities yield less than loans.

Asset Quality, Provision for Loan Loss and Allowance for Loan Loss

QNB recorded no provision for loan losses in the first quarter of 2022, compared with $275,000 in provision for the same period in 2021.  QNB's allowance for loan losses of $11,231,000  represents 1.21% of loans receivable at March 31, 2022 compared to $11,184,000, or 1.21% of loans receivable at December 31, 2021.  Net loan recoveries for the quarter ended March 31, 2022 and 2021 were $47,000 and $14,000, respectively.

Total non-performing loans, which represent loans on non-accrual status, loans past due 90 days or more and still accruing interest and restructured loans were $11,647,000, or 1.26% of loans receivable at March 31, 2022, compared with $11,672,000, or 1.26% of loans receivable at December 31, 2021.  In cases where there is a collateral shortfall on impaired loans, specific impairment reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. At March 31, 2022, $4,144,000, or approximately 57% of the loans classified as non-accrual are current or past due less than 30 days.  At March 31, 2022, commercial substandard or doubtful loans totaled $19,072,000, compared with $18,531,000 reported at December 31, 2021.

Non-Interest Income

Total non-interest income was $1,611,000 for the first quarter of 2022, a decrease of $1,793,000 compared with the same period in 2021, due largely to a $1,104,000 decrease in the change in unrealized net gains on investment securities, a $306,000 decrease in realized gains on sale of securities to $36,000 and decreased net gains on sale of loans of $352,000, when comparing the two periods.  The equities portfolio comprises blue-chip large-capitalized stocks, providing a taxable equivalent dividend yield of 3.20%.

Fees for services to customers increased $85,000, or 28.4% when comparing the first quarter 2022 to the same period in 2021, primarily due to increased overdraft occurrences when comparing the two periods.  ATM and debit card income increased $48,000, or 8.1% when comparing the first quarter 2022 to the same period in 2021, due to increased card activity.  Retail brokerage income increased $38,000, or 22.8% due to increased assets under management.  Other non-interest income decreased $202,000 due primarily to a life insurance benefit of $193,000 realized during the first quarter of 2021.

Non-Interest Expense

Total non-interest expense was $7,813,000 for the first quarter of 2022, increasing $490,000, or 6.7% compared with the same period in 2021.  Salaries and benefits expense increased $249,000, or 6.2%, to $4,266,000 when comparing the two quarters.  Salary expense and related payroll taxes increased $178,000 to $3,606,000, or 5.2%, during the first quarter of 2022 compared to the same period in 2021, due to decreased deferred loan origination cost of $97,000, increased salary and related taxes of $71,000, and increased incentive compensation of $11,000.  Benefits expense increased $71,000, or 11.9%, due primarily to increased medical insurance claims expense, when comparing the two periods.

Net occupancy, furniture and equipment expense decreased $23,000, or 1.8%, to $1,265,000 for the first quarter 2022, due primarily to decreased building repair expense and decreased leasehold and furniture depreciation and computer software amortization expense, offset in part by increased software maintenance expense.  Other non-interest expense increased $264,000, or 13.1% when comparing the first quarter of 2022 with the first quarter of 2021, due to increases in legal, consulting and third-party expenses, increased FDIC insurance costs, increased travel and entertainment expense, and increased check fraud cost, offset in part by lower marketing and loan origination expenses, when comparing the two periods.

Provision for income taxes decreased $449,000, to $824,000 in the first quarter 2022, compared with the same period in 2021, due to the decrease in pre-tax income.  The effective tax rates for the quarter ended March 31, 2022 was 18.2%.  This compares with an effective tax rate for the same period in 2021 of 20.1%.

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve branches in Bucks, Montgomery and Lehigh Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at www.qnbbank.com.

Forward Looking Statement

This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including "Item lA. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

QNBC Q1 2022 Earnings

QNBC Q1 2022 Earnings

QNBC Q1 2022 Earnings

QNB Bank Promotes April Donahue to Vice President, Retail Lending Manager

Quakertown, PA (April 5, 2022) April Donahue was named Vice President, Retail Lending Manager at QNB Bank. In her role, April is responsible for managing QNB’s Retail Lending Department. She is also responsible for establishing a strong market presence for QNB Bank by developing relationships to support the lending needs of individuals in our communities.

April has been in banking for 36 years, previously serving as Vice President, Business Development Officer at QNB Bank. She earned her Bachelor of Science and MBA at Delaware Valley University. April is very active in the community, serving as a Board member of Manna on Main Street, Indian Valley Chamber of Commerce, National Ovarian Cancer Coalition, and Chalfont New Britain Business Alliance. She is also a member of the Montgo-New Britain Rotary Club.

QNB Bank Promotes Robert Zukowski to Vice President, Branch Manager at Country Square Office

Quakertown, PA (March 23, 2022) Robert Zukowski was named Vice President, Branch Manager at QNB Bank’s Country Square Office in Quakertown. In his role, Robert is responsible for all aspects of branch management, including staff development, new business development and supporting community and customer relationships within the Quakertown market.

Robert has been in financial services for over 30 years, previously serving as Vice President, Branch Manager at QNB’s Souderton Office. In his previous employment at BB&T, he served as Assistant Vice President, Market Leader in Souderton. He attended Bucks County Community College and earned a bachelor’s degree from Temple University. Robert is very involved with the local community and currently serves on the Upper Bucks Chamber of Commerce Board and is a committee member of the Quakertown Alive Association. He was previously a long-time member of the Souderton/Telford Rotary Club. In addition, Robert serves on the Board for Keystone Opportunity Center, a local non-profit in Souderton. Robert grew up in Bucks County and currently lives in Montgomery Township with his wife and two children.

QNB Bank Seeking Student Art for 2023 Collector Calendar

Quakertown, PA (March 16, 2022) QNB Bank is seeking artwork for its 2023 Student Art Calendar Contest from high school students (grades 9-12) of all schools in the QNB Bank market area. This will be the 27th installment of the QNB Student Art Collector Calendar.

The theme for this year is “Things with Wings” and the art format is the same as years past – a pen and ink drawing. Fourteen drawings will be selected by the Bank to be featured in the calendar. Entry forms with a full list of rules and regulations for the contest can be picked up at any QNB Bank location, participating schools’ art departments, or on QNB’s website at QNBbank.com/contest. Artwork may be mailed to:

QNB Bank
Attn: Marketing Department
PO Box 9005
Quakertown, PA 18951-9005

Winners of the contest will be chosen and notified in June. Questions may be directed to the QNB Bank Marketing Department at 215-538-5600 ext. 5756.

QNB Corp. Declares Q1 2022 Dividend

Quakertown, PA (March 1, 2022) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on March 1, 2022, declared a quarterly cash dividend of $0.36 per share. The cash dividend is payable on March 25, 2022, to shareholders of record March 11, 2022.

QNB Corp. offers commercial and retail banking services through the twelve banking offices of its subsidiary, QNB Bank. QNB Corp.’s stock is traded in the over-the-counter market under the symbol “QNBC.” For more information, visit QNB’s website at QNBbank.com.

QNB Corp. Appoints Ranajoy Ray-Chaudhuri to Board of Directors

Quakertown, PA (February 15, 2022) The Board of Directors of QNB Corp. (the “Company”) the parent company of QNB Bank (the “Bank”) has announced the appointment of Ranajoy Ray-Chaudhuri to the Board of Directors of both the Company and the Bank.

Dr. Ray-Chaudhuri is an Associate Professor of Economics and Finance at Muhlenberg College. His educational background includes a master’s and a doctorate in Economics from The Ohio State University. His teaching interests include Money and Banking, Macroeconomics and Development Economics, and his research focuses on the history of financial regulations, regulatory changes in the financial sector, central bank anatomy and the conduct of monetary policy, and the impact of financial development on economic growth. Dr. Ray-Chaudhuri’s knowledge and perspective of financial regulations, central banking and economic development give him the qualifications and skills to serve as a director of QNB. In addition, Dr. Ray-Chaudhuri will serve on the Audit Committee.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.6 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

Pages