Current Press Releases

QNB Bank Donates $40,000 to Local Education Organizations

Quakertown, PA (April 6, 2020) QNB Bank recently donated $40,000 to local education organizations through the State 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 $152,750 through the program.

For 2020, QNB donated to the following organizations: Allentown School District Foundation, Allentown Symphony Association, Big Brothers Big Sister of Bucks County, Big Brothers Big Sisters of the Lehigh Valley, Boy Scouts of America - Minsi Trails Council, Bucks County Community College Foundation, Centennial Education Foundation, Communities in Schools of the Lehigh Valley, Inc., Community Bike Works, Flint Hill Farm Educational Center, Inc., Lehigh Carbon Community College Foundation, North Penn School District Educational Foundation, North Penn Valley Boys & Girls Club, Inc., Perkiomen Valley School District Foundation, Touchstone Theatre, Valley Youth House Committee, Inc., and YMCA of Bucks County.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.2 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

Local Banker Graduates from PA Bankers Leadership Institute

QUAKERTOWN, PA | April 1, 2020 – Lisa Otery, Senior Vice President of Deposit Operations at QNB Bank, recently graduated from the 2019-20 PA Bankers Leadership Institute.

Through six two-day sessions over 15 months, the PA Bankers Leadership Institute utilizes a multi-dimensional leadership training model, which takes participants “behind the curtain” to examine the success that comes from a strong organizational culture and assess how it relates to performance, leadership, engagement and communication to achieve results. Participants are guided by banking leadership experts, including Dr. Linda Eagle, president and co-founder of Global Bankers Institute, and Dennis Budinich, senior vice president, chief culture officer at Investors Bank.

“The Pennsylvania Bankers Association is proud to continually offer the PA Bankers Leadership Institute,” said Duncan Campbell, PA Bankers’ president & CEO. “Through its unique model, the program develops leaders who will sustain, maintain and grow Pennsylvania’s banking industry, which is vital to the economic future of the commonwealth.”

Lisa Otery has served the banking industry for over 30 years. In her role at QNB, she is responsible for the efficient operation and supervision of her department. In addition to her role at QNB, Lisa assists the current board members of the Jack Henry-Silver Lake Mid-Atlantic Regional User Group where she had once served as President.

PA Bankers has been bringing banks and bankers together for 125 years to learn, grow, serve and engage with their peers, communities and lawmakers. The association has built a strong reputation as a leading advocate for pro-banking policies at the state and federal levels, as well as the delivery of quality education, products and services for banks of all sizes and their employees.

QNB Bank Seeking Student Art for 2021 Collector Calendar

QUAKERTOWN, PA | March 13, 2020 – QNB Bank is seeking artwork for its 2021 Student Art Calendar Contest from high school students (grades 9-12) of all schools in the QNB Bank market area. This will be the 25th installment of the QNB Student Art Collector Calendar.

The theme for this year is “Flowers, Plants & Trees” and the art format is the same as previous years – 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 are available on QNB's website and can also be picked up at any QNB Bank location or participating schools’ art departments. 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. Increases Dividend

Quakertown, PA (February 25, 2020) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on February 25, 2020 declared a quarterly cash dividend of $0.34 per share. The amount represents a 3.0% increase from the prior quarter. Based upon the closing price of a share as of close of business February 24, 2020, this represents a yield of 3.8%. The cash dividend is payable on March 27, 2020 to shareholders of record March 13, 2020.

“As a result of the continued solid financial performance of QNB Corp., the Board of Directors is pleased to be able to increase the dividend by 3.0%. As a result of its well capitalized position, QNB Corp. is able to continue its uninterrupted history of quarterly dividends,” said David W. Freeman, President and Chief Executive Officer.

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 web site at QNBbank.com.

QNB Bank Employees Donate Over $39,000 to United Way

Quakertown, PA (February 12, 2020) – QNB Bank recently held its annual campaign to raise funds for United Way. Led by Patti Cole, this year’s campaign was the most successful yet, tallying up an impressive $32,539 from employees and an additional $6,507 from the Bank for a total contribution of $39,046.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.2 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

QNB Bank Celebrates Upper Perkiomen Valley Office Grand Opening

Pennsburg, PA (January 30, 2020) – The Grand Opening and Ribbon Cutting Celebration for QNB Bank’s new Upper Perkiomen Valley Office took place on January 29th. Located at 410 Pottstown Avenue, the new branch is right next to where QNB’s old Pennsburg Office used to reside in the Pennsburg Square Shopping Center. The new full-service branch features 2 drive-thru lanes, expanded parking, full cash handling via automated cash recyclers, a coin machine, instant issue check cards, and a 24-hour ATM and night depository.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.2 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 Fourth Quarter 2019

Quakertown, PA (January 30, 2020) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the quarter of 2019 of $2,745,000, or $0.78 per share on a diluted basis. This compares to net income of $2,327,000, or $0.67 per share on a diluted basis, for the same period in 2018.  For the twelve months ended December 31, 2019, QNB reported net income of $12,357,000, or $3.53 per share on a diluted basis. This compares to net income of $11,335,000, or $3.25 per share on a diluted basis, reported for the same period in 2018.

For the quarter ended December 31, 2019, the annualized rate of return on average assets and average shareholders’ equity was 0.88% and 9.06%, respectively, compared with 0.78%% and 8.29%, respectively, for the fourth quarter 2018.  For the twelve months ended December 31, 2019, the return on average assets and average shareholders’ equity was 1.02% and 10.58%, respectively, compared with 0.96% and 10.47%, respectively, for the same period in 2018.

QNB is pleased to report increased net income and earnings per share for the quarter, and record net income and earnings per share for the year ended December 31, 2019.  Loan, deposit and household growth remained strong throughout 2019.  In addition to opening a 12th location -- our Allentown Office late in the third quarter -- in December we relocated our full-service branch within the Pennsburg Square Shopping Center to a free-standing pad site in the same center. Our newly named Upper Perkiomen Valley Office provides improved visibility and convenience of access to customers.

Net Interest Income and Net Interest Margin

Net interest income for the quarter and twelve months ended December 31, 2019 totaled $9,165,000 and $36,294,000, respectively, an increase of $345,000 and $1,279,000, respectively, from the same periods in 2018. The net interest margin for the fourth quarter of 2019 and 2018 was 3.11%.  Net interest margin for the twelve months ended December 31, 2019 was 3.16%, an increase of three basis point compared to the same period in 2018.  The yield on average earning assets increased one basis point to 3.92% for the fourth quarter of 2019, compared with the fourth quarter of 2018.  For the twelve months ended December 31, 2019, the yield on average earning assets was 4.02%, compared with 3.85% for the same period in 2018.   The cost of interest-bearing liabilities increased to 1.02% and 1.07% for the quarter and twelve months ended December 31, 2019, respectively, compared with 1.01% and 0.88% for the same periods in 2018.

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

QNB recorded a $375,000 provision for loan losses in the fourth quarter of 2019, compared with $187,000 for the same period in 2018.   For the twelve months ended December 31, 2019 and 2018, QNB recorded $1,300,000 and $1,130,000, respectively, in provision for loan losses.  QNB's allowance for loan losses of $9,887,000 represents 1.20% of loans receivable at December 31, 2019 compared to $8,834,000, or 1.12% of loans receivable at December 31, 2018.  Net loan charge-offs were $247,000 for 2019, or 0.03% of total average loans, compared with net charge-offs of $137,000, or 0.02% of total average loans, for the same periods in 2018.

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 $16,464,000, or 2.01% of loans receivable at December 31, 2019, compared with $9,638,000, or 1.23% of loans receivable at December 31, 2018.  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 December 31, 2019, $7,245,000, or approximately 62% of the loans classified as non-accrual are current or past due less than 30 days.  At December 31, 2019 commercial substandard or doubtful loans totaled $15,922,000, compared with $18,339,000 reported at December 31, 2018.   

Non-Interest Income

Total non-interest income was $2,210,000 for the fourth quarter of 2019, an increase of $2,066,000 compared with the same period in 2018, due largely to combined realized and unrealized net gains on investment securities totaling $696,000 in 2019 compared to a loss of $1,252,000 in 2018.  Non-interest income for the twelve months ended December 31, 2019 was $8,317,000, an increase of $3,425,000, or 70.0%, compared to the same period in 2018, of which $2,937,000 is attributable to increased realized and unrealized investment gains.  ATM and debit card income increased $46,000 due to increased card activity when comparing the two quarterly periods.  Retail brokerage income increased $75,000 due to increased penetration due to increased assets under management.  Net gain on sale of loans increased $60,000, due to increased mortgage loan originations and secondary market sales, the result of lower interest rates in the fourth quarter 2019.  Fees for services to customers declined $7,000 during fourth quarter 2019 compared to fourth quarter 2018, due to less overdraft income and service charges on deposits accounts.  Other non-interest income declined $56,000, due primarily to a reduction in income for sale of checks, and disposal of fixed assets related to the relocation of the Pennsburg location.

Non-Interest Expense

Total non-interest expense was $7,632,000 for the fourth quarter of 2019, increasing $843,000, or 12.4%, from $6,789,000 for the same period in 2018.  For the twelve months ended December 31, 2019, non-interest expense increased $2,219,000, or 8.6%, from the same period in 2018.  Salaries and benefits expense increased $625,000, or 16.3%, to $4,452,000 when comparing the two quarters.  Salary expense and related payroll taxes increased $510,000 to $3,759,000, or 15.7%, during the fourth quarter of 2019 compared to the same period in 2018, due, in part, to the addition of branch staff in our new Allentown location and increased expense for incentive compensation.  Benefits expense increased $115,000, or 20.1%, due primarily to medical insurance claims reimbursements and increased retirement plan costs, when comparing the two periods.  

Net occupancy and furniture and equipment expense increased $186,000, or 17.4%, to $1,254,000 for the fourth quarter 2019, due primarily to increased building and furniture depreciation expense, increased rent expense and computer software amortization and maintenance expense.  Other non-interest expense increased $32,000 when comparing the fourth quarter of 2019 with the fourth quarter of 2018, with increased marketing, state taxes, travel and entertainment, check charge-offs and check card expenses offset in part by decreased FDIC insurance costs.  During the fourth quarter 2019, we received a “small bank assessment credit”, applicable for our third quarter FDIC insurance assessment in the amount of $136,000.  The FDIC insurance fund was determined to have a surplus, and small institutions were eligible for a payment credit.

Provision for income taxes increased $962,000 in the fourth quarter 2019, compared with the same period in 2018.   During the fourth quarter of 2018, the Company recorded a $418,000 income tax benefit to tax provision.  This one-time tax benefit was related to an elected change in accounting for deferred loan origination fees and nonaccrual interest income, taking advantage of the reduction in the federal tax rate from 34% to 21%, resulting from the Tax Cuts and Jobs Act, effective January 1, 2018. 

The effective tax rates for the quarter and twelve months ended December 31, 2019 were 18.5% and 18.7%, respectively.  This compares with effective tax rates for the same periods in 2018 of -17.1% and 12.1%, respectively. 

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, 2018. 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.

QNB Bank Customers Save on TurboTax

Quakertown, PA (January 23, 2020) – QNB has teamed up with TurboTax® to get your taxes done right. Through a marketing alliance with Intuit® Inc., QNB Bank customers can save up to $15 on TurboTax federal products. In addition, Intuit offers a TurboTax Free Edition for basic tax returns and free e-filing on all federal and state products. With TurboTax, taxpayers can easily prepare and file federal and state income tax returns online. TurboTax guarantees 100% accurate calculations and your maximum refund, so you can be confident your taxes are done right.

TurboTax can be accessed from QNB Bank’s website and is available to use through October 15, 2020, the last filing date for tax year 2019.

QNB Bank currently operates twelve branches in Bucks, Montgomery and Lehigh Counties and offers commercial and retail banking in the communities it serves.

Intuit and TurboTax are registered trademarks of Intuit Inc.

QNB Bank Opens New Upper Perkiomen Valley Office

Pennsburg, PA (December 13, 2019) –QNB Bank officially opened the doors of its new Upper Perkiomen Valley Office on Monday, December 9th. Located at 410 Pottstown Avenue, the new branch is right next to where QNB’s old Pennsburg Office used to reside in the Pennsburg Square Shopping Center. The Upper Perkiomen Valley Office offers full-service retail banking and features convenient services including full cash handling via automated cash recyclers, a coin machine, instant issue check cards, and a 24-hour ATM and night depository. The new branch also features more space, better parking, and improved functionality.

The Grand Opening and Ribbon Cutting Ceremony for QNB’s new Upper Perkiomen Valley Office is scheduled for Wednesday, January 29th.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.2 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

QNB Corp. Declares Dividend

Quakertown, PA (27 November 2019) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on November 26, 2019 declared a quarterly cash dividend of $0.33 per share. The cash dividend is payable on December 27, 2019 to shareholders of record December 13, 2019.

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 web site at QNBbank.com.

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