Current Press Releases

Quakertown, PA (March 9, 2023) QNB Bank is seeking artwork for its 2024 Student Art Calendar Contest from high school students (grades 9-12) of all schools in the QNB Bank market area. This will be the 28^th installment of the QNB Student Art Collector Calendar.

The theme for this year is “Architecture” 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.

Quakertown, PA (February 28, 2023) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on February 28, declared a quarterly cash dividend of $0.37 per share. The cash dividend is payable on March 31, 2023, to shareholders of record March 17, 2023.

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.

Quakertown, PA (February 22, 2023) QNB Bank (the “Bank” or “QNB”) (a division of QNB Corp (the “Bank”), OTC Bulletin Board: QNBC) announced today that it is committing $3 million of first mortgage funding to low-to-moderate income individuals through its QNB Housing Opportunity Program.

QNB’s Housing Opportunity Program offers low-to-moderate-income borrowers relaxed lending guidelines when purchasing a primary residence in Bucks, Montgomery, and Lehigh Counties. Some program features include 100% financing based on the lower of the purchase price or appraised value, no origination fee, credit scores below conforming, and slightly higher debt-to-income ratios to help more borrowers qualify. To ensure borrowers are prepared for the financial responsibilities and success in their lending experience, homebuying counseling is a program requirement.

“Our goal is to help as many individuals as possible qualify for home mortgage loans to build better communities,” stated David W. Freeman, President and CEO. Continuing, “We have developed this program to push beyond traditional conforming loans because this is the right thing to do.”

April Donahue, Senior Vice President of Retail Lending, added, “we work with all borrowers to offer exceptional mortgage lending support and personalized attention through the home mortgage process. We found people in our communities prepared to buy a home who would not otherwise qualify under traditional underwriting guidelines. Our program helps low-to-moderate income individuals with their mortgage needs.”

For more information and detailed QNB Housing Opportunity guidelines, visit qnbbank.com/hop.

QNB Corp. is the holding company for QNB Bank, 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 QNBbank.com.

Quakertown, PA (January 24, 2023) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the fourth quarter of 2022 of $5,447,000, or $1.52 per share on a diluted basis. This compares to net income of $4,149,000, or $1.17 per share on a diluted basis, for the same period in 2021. For the twelve months ended December 31, 2022, QNB reported net income of $15,921,000, or $4.47 per share on a diluted basis. This compares to net income of $16,492,000 or $4.64 per share on a diluted basis, reported for the same period in 2021.

For the quarter ended December 31, 2022, the annualized rate of return on average assets and average shareholders’ equity was 1.24% and 14.38%, respectively, compared with 0.98% and 11.82%, respectively, for the fourth quarter 2021.

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended December 31, 2022, in comparison with the same period in 2021 due to growth in net interest income and the reversal of $850,000 in provision loan losses. The change in contribution from QNB Corp. for the quarter ended December 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:

Total assets as of December 31, 2022 were $1,668,497,000 compared with $1,673,340,000 at December 31, 2021. Total available-for-sale debt securities decreased $145,835,000, or 21.1%, to $546,525,000, due primarily to the reduction in fair value of the portfolio, in response to the rise in interest rates during the period. The Bank participated in both rounds of the Small Business Administration’s Paycheck Protection Program (“PPP”). Loans receivable, excluding PPP, grew $124,470,000 to approximately $1,037,095,000 since December 31, 2021. Total deposits decreased $31,376,000 to $1,418,369,000. Short-term borrowing grew $92,851,000 to support loan growth.

“2022 ended well with continued solid performance results and growth at the Bank. Our earnings were the direct result of our core banking operations and were not supported by gains on the sale of investments, as in 2021,” stated David W. Freeman, President, and Chief Executive Officer, continuing, “the quarter also showed improvement in net interest income and improved margins. Plus, loan outstandings, fueled by commercial growth, exceeded one billion for the first time in the bank’s history.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter and twelve months ended December 31, 2022 totaled $11,279,000 and $44,497,000, respectively, an increase of $471,000 and $2,370,000, respectively, from the same periods in 2021. Net interest margin was 2.68% for the fourth quarter of 2022 and for the same period in 2021. Net interest margin was 2.71% for the twelve months ended December 31, 2022 compared with 2.79% for the same period in 2021.

The yield on earning assets was 3.49% for the fourth quarter 2022 compared with 2.95% in the fourth quarter of 2021. For the twelve-month period ended December 31, 2022, the yield on earning assets was 3.18%, compared with 3.09% for the same period in 2021. The cost of interest-bearing liabilities was 1.03% for the quarter and 0.60% for the twelve months ended December 31, 2022 compared with 0.35% and 0.39% for the same periods in 2021.

Proceeds from average deposit growth, PPP loan forgiveness and short-term borrowings over the past year were invested in loans. Loan growth was primarily in commercial real estate, which comprised 38% of average earning assets in the twelve months of 2022 compared with 36% for the same period in 2021 and was the major contributor to the 11 basis-point increase in the yield on loans. Growth in the available-for-sale portfolio was primarily in mortgage-backed securities, which comprised 27% of average earnings assets in the twelve months of 2022 compared with 23% for the same period in 2021. This increase in marketable securities as a percent of earnings assets also contributed to the increase in net interest margin.

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

QNB reversed $850,000 in provision for loan losses in the fourth quarter of 2022 compared to no provision in the fourth of quarter 2021. QNB received over $1,000,000 in payments on a non-performing loan during the fourth quarter of 2022. QNB's allowance for loan losses of $10,531,000 represents 1.01% of loans receivable at December 31, 2022, compared to $11,184,000, or 1.21% of loans receivable at December 31, 2021, and $10,826,000, or 1.18% of loans receivable at December 31, 2020. Excluding the PPP loans, which are expected to be fully forgiven within the next several months and are 100% guaranteed by the SBA, the allowance represents 1.02% of loans receivable. Net loan recoveries were $43,000 and $197,000 for the quarter and twelve months ended December 31, 2022, respectively, compared with charge-offs of $30,000 and $100,000 for the same periods in 2021, respectively. Annualized net loan recoveries for the quarter and twelve months ended December 31, 2022 were both 0.02% of average loans receivable.

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 $9,121,000, or 0.88% of loans receivable at December 31, 2022, compared with $11,672,000, or 1.26% of loans receivable at December 31, 2021, and $14,109,000, or 1.53% of loans receivable at December 31, 2020. 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, 2022, $3,435,000, or approximately 71% of the loans classified as non-accrual, are current or past due less than 30 days. Commercial loans classified as substandard or doubtful loans totaled $13,684,000 at December 31, 2022, compared with $18,531,000 reported at December 31, 2021, and $22,193,000 at December 31, 2020.

Non-Interest Income

Total non-interest income was $2,997,000 for the fourth quarter of 2022 compared with $2,528,000 for the same period in 2021. There was a net realized loss of $227,000 on the sale of investments for the quarter ended December 31, 2022 compared with a gain of $766,000 for the same period in 2021. Unrealized gain on the investment equity securities was $1,602,000 for the quarter ended December 31, 2022 compared to a gain of $87,000 for the same period in 2021. The equities portfolio comprises blue-chip large-capitalized stocks, providing a taxable equivalent dividend yield of 3.32%.

Fees for services to customers increased $36,000 to $404,000 for the fourth quarter 2022 compared with the same period in 2021, due primarily to increased overdraft occurrences. ATM and debit card income increased $11,000 to $704,000 for the same period, due to card usage when comparing the two periods. Retail brokerage and advisory income decreased $24,000 to $184,000 attributable to decreased advisory income.

Net gain on sales of loans decreased $58,000 when comparing the fourth quarter of 2022 with the same period in 2021, as there was a decrease in mortgage originations when comparing the periods. Other non-interest income decreased $18,000 when comparing the two periods due primarily to reduced merchant fee income of $14,000.

For the twelve months ended December 31, 2022, non-interest income was $5,731,000, a decrease of $4,050,000 compared to the same period in 2021, primarily due to a negative change in fair value of the equity portfolio of $1,952,000. Realized gains on sales of securities was $266,000, a decline of $993,000 for the twelve months ended December 31, 2022 compared with the same period in 2021. Net gain on sale of loans decreased $589,000 when comparing the twelve months ended December 31, 2022 with the same period in 2021, as there was a decrease in mortgage originations. Increases in non-interest income for the twelve months ended December 31, 2022 compared to the same period in 2021 comprise: fees for services to customers, ATM and debit card fees, and retail brokerage and advisory income, which increased $288,000, $37,000, and $2,000, respectively. Other non-interest income decreased $296,000 due primarily to a life insurance benefit of $193,000 realized during the first quarter of 2021 compared to $46,000 realized in the third quarter of 2022, and a $57,000 decrease in merchant income.

Non-Interest Expense

Total non-interest expense was $8,119,000 for the fourth quarter of 2022 compared with $8,135,000 for the same period in 2021. Salaries and benefits expense decreased $76,000, or 1.7%, to $4,464,000 when comparing the two quarters. Salary expense and related payroll taxes increased $158,000, to $3,870,000 during the fourth quarter 2022 compared to the same period in 2021 with increases in salaries of $268,000 partly offset by decreases om incentive bonus and related taxes of $150,000. Benefits expense decreased $234,000, when comparing the two periods.

Net occupancy and furniture and equipment expense decreased $14,000, to $1,259,000 for the fourth quarter 2022 due to security expense and equipment maintenance partially offset by increased software maintenance.

Other non-interest expense decreased $18,000, or 5.2%, when comparing fourth quarter 2022 with the same period in 2021 due to decreased FDIC insurance and marketing expense, partly offset by increased in third-party services.

For the twelve months ended December 31, 2022, non-interest expense was $31,492,000, an increase of $495,000, or 1.6%, compared to the same period in 2021.

Provision for income taxes increased $508,000 to $1,560,000 in the fourth quarter 2022 due to increased pre-tax income and a higher effective tax rate, compared with the same period in 2021. The effective tax rates for the quarter and twelve months ended December 31, 2022 were 22.3% and 18.7%, respectively, compared with 20.2% and 19.4%, respectively, for the same periods in 2021.

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 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.

Quakertown, PA (November 22, 2022) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on November 22, 2022, declared a quarterly cash dividend of $0.36 per share. The cash dividend is payable on December 30, 2022, to shareholders of record on December 16, 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.

Quakertown, PA (November 8, 2022) Earlier this year, QNB Bank began calling for pen and ink drawing entries to its annual Student Art Collector Calendar contest. The contest was open to all high school students (grades 9-12) in QNB's market area. Of the 143 artwork submissions from 12 different schools, fourteen winners were selected to receive a prize and have their artwork published in the 2023 calendar.

The 27th installment of the QNB Student Art Collector Calendar is now available at all QNB Bank locations in both large and pocket sizes. Pick up a free copy of the 2023 calendar while supplies last and see the amazing art from talented students in our communities.

Quakertown, PA (November 4, 2022) On November 1, 2022, Jeffrey Lehocky was appointed Executive Vice President and Chief Financial Officer at QNB Bank. In his role, Mr. Lehocky is responsible for the planning, oversight, and management of all accounting, financial, and treasury operations in a manner consistent with the strategic vision and goals of QNB Bank. Previously, he served as Managing Director, Head of Business and Risk Management, Global Transaction Bank for Mitsubishi UFJ Financial Group (MUFG). Prior to MUFG, he held various executive-level roles at Deutsche Bank in Finance and Business Operations.

Jeffrey Lehocky has extensive financial experience in the banking industry, with a proven track record of leveraging finance, risk, and operations expertise to define solutions that impact change. He earned a Bachelor of Arts in Accounting at Villanova University and a Masters of Business Administration in Finance at Seton Hall University. He is also a Certified Public Accountant and a Certified Internal Auditor. In addition, he serves on Villanova University’s School of Business, Moran Center for Global Leadership Advisory Board.

“We are thrilled to welcome Jeff as our new Chief Financial Officer,” said David Freeman, President and CEO of QNB Bank. “He brings incredible financial and strategic expertise, which will be invaluable to the future growth and success of our company.”

About QNB Bank

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.

Quakertown, PA (October 25, 2022) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the third quarter of 2022 of $3,415,000, or $0.96 per share on a diluted basis. This compares to net income of $3,424,000, or $0.96 per share on a diluted basis, for the same period in 2021. For the nine months ended September 30, 2022, QNB reported net income of $10,474,000, or $2.94 per share on a diluted basis. This compares to net income of $12,343,000 or $3.47 per share on a diluted basis, reported for the same period in 2021.

For the quarter ended September 30, 2022, the annualized rate of return on average assets and average shareholders’ equity was 0.78% and 9.20%, respectively, compared with 0.84% and 9.92%, respectively, for the third quarter 2021.

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended September 30, 2022, in comparison with the same period in 2021 due to growth in net interest income. The change in contribution from QNB Corp. for the quarter ended September 30, 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:

Total assets as of September 30, 2022 were $1,645,068,000 compared with $1,673,340,000 at December 31, 2021. Total available for sale debt securities decreased $136,650,000, or 19.7%, to $555,710,000, 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 $26,923,000 to $1,476,668,000. The Bank participated in both rounds of the Small Business Administration’s Paycheck Protection Program (“PPP”). Loans receivable, excluding PPP, grew $93,364,000 to approximately $1,005,989,000 since December 31, 2021.

“Our Bank continues to perform well. The quarter was not supported by gains on the sale of investments, as in 2021. This quarter, we experienced an improvement in our bank operating results, with net interest income rising and improving margins. In the quarter, our loan outstanding exceed one billion and our loan demand was steady and with growth primarily in commercial,” said David W. Freeman, President and Chief Executive Officer.

Net Interest Income and Net Interest Margin

Net interest income for the quarter and nine months ended September 30, 2022 totaled $11,379,000 and $33,218,000 respectively, an increase of $795,000 and $1,899,000, respectively from the same periods in 2021. Net interest margin was 2.72% for the third quarter of 2022 and for the same period in 2021. Net interest margin was 2.72% for the nine months ended September 30, 2022, compared with 2.83% for the same period in 2021.

The yield on earning assets was 3.23% for the third quarter 2022, compared with 3.01% in the third quarter of 2021. For the nine-month period ended September 30, 2022, yield on earning assets was 3.08%, compared with 3.15% for the same period in 2021. The cost of interest-bearing liabilities was 0.65% for the quarter and 0.46% for the nine months ended September 30, 2022, compared with 0.36% and 0.40% for the same periods in 2021.

Proceeds from average deposit growth, PPP loan forgiveness and excess cash over the past year were invested in loans, and available-for-sale securities. Loan growth was primarily in commercial real estate which comprised 38% of average earning assets in the first nine months of 2022 compared with 36% for the same period in 2021 and was the major contributor to the six basis-point decline in the yield on loans. Growth in the available-for sale portfolio was primarily in mortgage-backed securities, which comprised 27% of average earnings assets in the first nine months of 2022, compared with 21% for the same period in 2021. These increase in marketable securities as a percent of earnings assets also contributed to 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 third quarter of 2022 or in the third quarter 2021. QNB's allowance for loan losses of $11,338,000 represents 1.12% of loans receivable at September 30, 2022 compared to $11,184,000, or 1.21% of loans receivable at December 31, 2021, and $11,214,000, or 1.21% of loans receivable at September 30, 2021. Excluding the PPP loans, which are expected to be fully forgiven within the several months, and are 100% guaranteed by the SBA, the allowance represents 1.13% of loans receivable. Net loan recoveries were $41,000 and $154,000 for the quarter and nine months ended September 30, 2022, respectively, compared with recoveries of $12,000 and net charge-offs of $70,000 for the same periods in 2021, respectively. Annualized net loan recoveries for the quarter and nine months ended September 30, 2022 were 0.02% of average loans receivable for both periods.

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 $10,694,000, or 1.06% of loans receivable at September 30, 2022, compared with $11,672,000, or 1.26% of loans receivable at December 31, 2021, and $12,144,000, or 1.31% of loans receivable at September 30, 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 September 30, 2022, $3,889,000, or approximately 61% of the loans classified as non-accrual are current or past due less than 30 days. Commercial loans classified as substandard or doubtful loans totaled $17,554,000 at September 30, 2022, compared with $18,531,000 reported at December 31, 2021, and $18,946,000 at September 30, 2021.

Non-Interest Income

Total non-interest income was $484,000 for the third quarter of 2022, compared with $1,315,000 for the same period in 2021. There was a net realized gain on the sale of investments of $404,000 for the quarter ended September 30, 2021 compared with no sales or gains for the same period in 2022. Unrealized loss on the investment equity securities was $1,174,000 for the quarter ended September 30, 2022 compared to $836,000 for the same period in 2021. The equities portfolio comprises blue-chip large-capitalized stocks, providing a taxable equivalent dividend yield of 3.36%.

Fees for services to customers increased $60,000, to $423,000 for the third quarter 2022 compared with the same period in 2021 due primarily to increased overdraft occurrences. ATM and debit card income declined $18,000 to $669,000 for the same period due to reduced card usage when comparing the two periods. Retail brokerage and advisory income decreased $24,000 to $194,000 attributable to decreased advisory income.

Net gain on sales of loans decreased $59,000 when comparing the third quarter of 2022 with the same period in 2021, as there was a decrease in mortgage originations when comparing the periods. Other non-interest income decreased $48,000 when comparing the two periods. In the third quarter of 2022, the Bank recorded a life insurance benefit of $46,000. In the third quarter of 2021, the Bank recorded $37,000 in other income related to an anti-trust class action settlement related to the purchase of US government agency securities over several years. The remaining negative variance is due primarily to reduced merchant fee income, title insurance income, bank owned life insurance and mortgage serving fees and of $24,000, $14,000, $12,000 and $10,000, respectively.

For the nine months ended September 30, 2022, non-interest income was $2,734,000 a decrease of $4,591,000 compared to the same period in 2021, primarily due to the change in fair value of the equity portfolio totaling $3,467,000. Realized gain on sale of securities was $493,000, a decline of $547,000 for the nine months ended September 30, 2022, compared with the same period in 2021. Net gain on sale of loans decreased $531,000 when comparing the nine months ended September 30, 2022 with the same period in 2021, as there was a decrease in mortgage originations. Increases in non-interest income for the nine months ended September 30, 2022 compared to the same period in 2021 comprise: fees for services to customers, ATM and debit card fees, and retail brokerage and advisory income, which increased $252,000, $26,000, and $26,000, respectively. Other non-interest income decreased $278,000 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 $7,814,000 for the third quarter of 2022, compared with $7,790,000 for the same period in 2021. Salaries and benefits expense decreased $183,000, or 3.9%, to $4,371,000 when comparing the two quarters. Salary expense and related payroll taxes decreased $172,000, to $3,727,000 during the third quarter 2022 compared to the same period in 2021 with decreases in incentive bonus and related taxes of $263,000 and stock-based compensation expense of $13,000, offset in part by increased salary expense and related taxes of $104,000. Benefits expense decreased $11,000, when comparing the two periods.

Net occupancy and furniture and equipment expense increased $65,000, or 5.2%, to $1,314,000 for the third quarter 2022 due to increased software maintenance of $93,000, offset in part by decreased depreciation expense of $25,000.

Other non-interest expense increased $142,000, or 7.1%, when comparing third quarter 2022 with the same period in 2021 due to increased third-party services, timing of tax credits, travel and entertainment, and ATM and check card expense, offset in part by decreased FDIC insurance, marketing expense and the reimbursement of special asset costs.

For the nine months ended September 30, 2022, non-interest expense was $23,373,000, an increase of $511,000, or 2.2%, compared to the same period in 2021.

Provision for income taxes decreased $51,000 to $634,000 in the third quarter 2022 due to decreased pre-tax income and a lower effective tax rate, compared with the same period in 2021. The effective tax rates for the quarter and nine months ended September 30, 2022 were 15.7% and 16.7%, respectively, compared with 16.2% and 19.1%, respectively, for the same periods in 2021.

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 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.

Quakertown, PA (September 26, 2022) For the past 12 years, QNB Bank has teamed up with the Lehigh Valley IronPigs to help raise money for local libraries through the “Batting for Books” campaign. On September 20 at Coca-Cola Park in Allentown, QNB donated $4,500 to this year’s proud beneficiary, the Upper Perkiomen Valley Library. Since the program’s inception in 2011, QNB has donated $47,550 to local libraries.

Quakertown, PA (August 23, 2022) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on August 23, 2022, declared a quarterly cash dividend of $0.36 per share. The cash dividend is payable on September 30, 2022, to shareholders of record on September 16, 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.