Current Press Releases

QNB Bank Promotes Melissa Brindley to Vice President, Branch Manager at Colmar Office

Quakertown, PA (August 20, 2019) – Melissa Brindley was recently named Vice President, Branch Manager at QNB Bank’s Colmar Office. In her role, Melissa is responsible for the efficient, effective management of the Branch, as well as coaching Branch staff, developing new business and retaining and expanding existing relationships.

Melissa has been in banking for 12 years, previously serving as a Branch Manager at Bucks County Bank and most recently as Assistant Vice President, Branch Manager at QNB’s Colmar Office. She earned her associate degree from Bucks County Community College and has completed several Pennsylvania Bankers Association courses.

Melissa lives in Perkasie with her family. As an active member in the community, she is involved in several local Chambers of Commerce. Melissa also serves on the Young Professionals Council for the Greater Montgomery County Chamber of Commerce.

Lori Knerr Joins QNB Bank as Vice President, Branch Manager at New Allentown Office

Quakertown, PA (August 14, 2019) – Lori Knerr was recently named Vice President, Branch Manager at QNB Bank’s new Allentown Office. In her role, Lori is responsible for the efficient, effective management of the Branch, as well as coaching Branch staff, developing new business and retaining and expanding existing relationships.

Lori has been in banking for 29 years. In her previous employment, she served as Branch Manager for Univest. Lori earned her associate degree in business management from Warren County Community College. She has also completed numerous American Bankers Association classes and other banking industry training programs.

Lori lives in Palmer Township, PA with her family. She remains active in her community where she serves as Chairwoman for the Warren County Community College Foundation Board, Secretary for the Bethlehem Rotary, Board Member for B.E.S.T. Inc., and Treasurer for the Domestic Abuse & Sexual Assault Crisis Center of Warren County.

Teresa Milazzo Joins QNB Bank as Vice President, Treasury/Investment Portfolio Manager

Quakertown, PA (August 12, 2019) – Teresa Milazzo was recently named Vice President, Treasury/Investment Portfolio Manager at QNB Bank. She is responsible for managing the interest rate sensitivity, liquidity, and capital position of the Bank. Her duties also include preparing annual budgets, forecasts, and strategic plans.

Teresa has been in banking for 23 years. In her previous employment, she served as Senior Vice President, Director of Treasury Services for Univest. Teresa earned her bachelor’s degree in accounting from St. Francis University. She then continued her education at St. Francis University to earn her master’s degree.

Teresa lives in Harleysville, PA with her family.

QNB Bank Promotes Mark Mascarinas to Assistant Vice President, Branch Manager at Quakertown Commons Office

Quakertown, PA (August 8, 2019) – QNB Bank has promoted Mark Mascarinas to the position of Assistant Vice President, Branch Manager at QNB’s Quakertown Commons Office. In his role, Mark is responsible for the efficient, effective management of the Branch, as well as coaching Branch staff, developing new business and retaining and expanding existing relationships.

Mark has been in banking for 24 years, previously serving as a Financial Services Representative at TD Bank and most recently as Assistant Branch Manager at QNB’s Downtown Office. Mark earned his bachelor’s degree in accounting from Xavier University in the Philippines.

Mark lives in Allentown with his family. He remains active in his community as a Committee Member of the Filipino-American Basketball Organization and a Member of Quakertown Alive.

QNB Bank Promotes Tracey Sell to Vice President, Branch Manager at Pennsburg Office

Quakertown, PA (August 6, 2019) – QNB Bank has promoted Tracey Sell to the position of Vice President, Branch Manager at QNB’s Pennsburg Office. In her role, Tracey is responsible for the efficient, effective management of the Branch, as well as coaching Branch staff, developing new business and retaining and expanding existing relationships.

Tracey has been in banking for 33 years, previously serving as Assistant Branch Manager at First Niagara Bank and most recently as Assistant Vice President, Branch Manager at QNB’s Quakertown Commons Office. She has completed numerous American Bankers Association classes and other banking industry training programs. She has also received several awards for sales performance and excellence in customer service.

Tracey lives in Spinnerstown with her family. During her time as Branch Manager at QNB’s Quakertown Commons Office, she remained active in her community where she volunteered her time for various Upper Bucks Chamber and Quakertown Alive events.

QNB Bank Receives Approval for 12th Branch Location

Allentown, PA (August 2, 2019) – QNB Bank received regulatory approval for the opening of its 12th branch office. The new branch will be located at 535 N. 19th Street in Allentown’s West End neighborhood, adjacent to the Civic Theatre. Construction began recently and will continue through August with an anticipated opening in September 2019 followed by a Grand Opening Celebration in October.

Dave Freeman, President and CEO of QNB said, “It’s exciting to be bringing our brand of community banking to Allentown’s West End neighborhood. We trust our current and future customers in the area will find the new branch to be a great value.”

QNB’s new Allentown branch will feature full-service retail banking, as well as a full-time staff of commercial bankers ready to assist local businesses with all their banking needs. The branch will feature a 24/7 ATM and night depository and lobby hours six days a week, Monday through Saturday.

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 eleven branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

QNB Bank Donates $45,000 to Local Education Organizations

Quakertown, PA (July 31, 2019) QNB Bank recently donated $45,000 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 and Scholarship Organizations. Since 2017, QNB has donated $112,750 through the program.

For 2019, QNB donated to the following organizations: Allentown School District Foundation, Allentown Symphony Association, ATG Learning Academy, Big Brothers Big Sister of Bucks County, Big Brothers Big Sisters of the Lehigh Valley, Bucks County Community College Foundation, Buxmont Academy, Centennial Education Foundation, Communities in Schools of the Lehigh Valley, Inc., Flint Hill Farm Educational Center, Inc., Indian Valley Education Foundation, Lehigh Carbon Community College Foundation, North Penn School District Educational Foundation, Pearl S. Buck International, Inc., Perkiomen Valley School District Foundation, Touchstone Theatre, United Friends School of the Greater Lehigh Valley, Inc., Upper Perkiomen Education Foundation.

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 eleven branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

QNB Corp. Reports Earnings for Second Quarter 2019

Quakertown, PA (July 23, 2019) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank, reported net income for the second quarter of 2019 of $3,143,000, or $0.90 per share on a diluted basis, compared to net income of $2,862,000, or $0.82 per share on a diluted basis, for the same period in 2018.  For the six months ended June 30, 2019, QNB reported net income of $6,522,000, or $1.86 per share on a diluted basis. This compares to net income of $5,797,000, or $1.67 per share on a diluted basis, reported for the same period in 2018.

Total assets as of June 30, 2019 were $1,212,005,000 compared with $1,175,452,000 at December 31, 2018. Loans receivable at June 30, 2019 were $817,593,000 compared with $785,448,000 at December 31, 2018, an increase of $32,145,000, or 4.1%.  Total deposits at June 30, 2019 were $1,030,661,000, increasing $15,063,000, compared with $1,015,598,000 at December 31, 2018.

“QNB is pleased to report increased earnings and earnings per share for the second quarter and first half of 2019,” said David W. Freeman, President and Chief Executive Officer.  “During the second quarter, we continued to see strong loan, deposit, and household growth throughout the communities the Bank serves. Asset quality and net interest margin improved as well.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter and six months ended June 30, 2019 totaled $9,111,000 and $17,947,000, respectively, an increase of $411,000 and $456,000, respectively, from the same periods in 2018. The net interest margin for the second quarter 2019 was 3.20% compared to 3.15% for the second quarter 2018.  Net interest margin for the six months ended June 30, 2019 was 3.19%, an increase of five basis points for the quarter and one basis point for the six  months ended June 30, 2019, respectively, compared to the same periods in 2018.

The yield on average earning assets improved 29 basis points to 4.10% for the second quarter 2019, compared with the second quarter 2018.  For the six months ended June 30, 2019, the yield on average earning assets was 4.07%, compared with 3.82% for the same period in 2018, primarily due the proportionate increase in loans as a percent of earning assets, along with increased rates.  The cost of interest-bearing liabilities increased 30 basis points to 1.11% for the quarter, and 31 basis points to 1.09% for the six months ended June 30, 2019, respectively, compared with the same periods in 2018.

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

QNB recorded a $150,000 provision for loan losses in the second quarter of 2019 compared with $187,000 in the second quarter 2018.  QNB's allowance for loan losses of $9,164,000 represents 1.12% of loans receivable at June 30, 2019 compared to $8,834,000, or 1.12% of loans receivable at December 31, 2018, and $8,192,000, or 1.05% of loans receivable at June 30, 2018. Net loan charge offs were $1,000 and $45,000 for the quarter and six months ended June 30, 2019, respectively, compared with $32,000 and $24,000 for the same periods in 2018, respectively.   Annualized net loan charge-offs for the quarter and six months ended June 30, 2019 were 0.00% and 0.01% of average loans receivable, 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 $9,677,000, or 1.18% of loans receivable at June 30, 2019, compared with $9,638,000, or 1.23% of loans receivable at December 31, 2018, and $7,987,000, or 1.02% of loans receivable at June 30, 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 June 30, 2019, $2,172,000, or approximately 28% 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 $12,572,000 at June 30, 2019, a decrease of $5,767,000, or 31.4%, from the $18,339,000 reported at December 31, 2018, and a decrease of $5,627,000, or 30.9%, from the $18,199,000 reported at June 30, 2018.  The decrease is largely due to improved financial performance of two large commercial relationships resulting in upgrades to pass ratings, as well a payoff of a classified loan due to the sale of the collateral by the borrower.

Non-Interest Income

Total non-interest income was $1,654,000 for the second quarter of 2019, an increase of $200,000, or 13.8%, compared with the same period in 2018.  Increases in non-interest income comprise; net gain on the sale of investment securities, other income, ATM and debit card,  brokerage and advisory, and fees for services to customers, which increased $536,000, $45,000, $32,000, $28,000, and $14,000 respectively, in second quarter 2019 compared with the same period in 2018.  Other income increased $45,000 to $373,000, due to increased merchant fee income and the recording of a $58,000 deferred gain on sale of a bank-financed OREO property.  These increases were offset in part due to a reduction in miscellaneous income from $60,000 to $28,000.  The Company recorded a $53,000 sales tax refund during second quarter 2018.

Unrealized loss on equity securities decreased $446,000 when comparing the second quarter 2019 to the same period in 2018, due toa the decrease in fair value of the equities portfolio.  Net gains on sale of loans decreased $9,000, due to reduced mortgage loan activity during the second quarter 2019, compared to the same period in 2018.

For the six months ended June 30, 2019, non-interest income was $3,963,000, an increase of $1,442,000, or 57.2%, compared to the same period in 2018, primarily due to net realized gains on the sale of investment securities of $457,000 and improved fair value of equity securities of $776,000, when comparing the two periods.

Non-Interest Expense

Total non-interest expense was $6,793,000 for the second quarter of 2019, increasing $260,000, or 4.0% from $6,533,000  for the same period in 2018.  Salaries and benefits expense increased $163,000, or 4.5%, to $3,790,000 when comparing the two quarters.  Salary expense and related payroll taxes increased $288,000, or 9.6%, to $3,277,000 during the second quarter 2019 compared to the same period in 2018 due to increased employees and salaries.  Retirement plan expenses increased $27,000, or 14.1%, for the same reasons.    Medical premiums decreased $152,000, or 29.5%, due to reduced medical claims when comparing the two periods.  Net occupancy and furniture and equipment expense increased $86,000, or 8.5%, to $1,097,000 for the second quarter 2019, due primarily to increased rent, building repairs and maintenance, depreciation of furniture and equipment and software maintenance expense of $19,000, $42,000, $36,000, and $25,000, respectively, offset in part by decreased software amortization, and equipment maintenance expense of $7,000 and $23,000, respectively, when comparing the two periods.  Other non-interest expense increased $11,000, or 0.6%, when comparing second quarter 2019 with second quarter 2018.

For the six months ended June 30, 2019, non-interest expense was $13,517,000, an increase of $806,000, or 6.3%, compared to the same period in 2018.

Provision for income taxes increased 18.7%, to $679,000 in the second quarter 2019 due to increased pre-tax income and a higher effective tax rate,  compared with the same period in 2018.  The effective tax rates for the quarter and six months ended June 30, 2019  were 17.8% and 18.7%, respectively, compared with 16.7% and 16.3%, respectively, for the same periods in 2018.  The increase in effective tax rates is due to the increased proportional share of taxable versus non-taxable income during the quarter and six months ended June 30, 2019, compared with the same period in 2018.

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates eleven branches in Bucks, Montgomery and Lehigh Counties and offers commercial and retail banking services in the communities it serves.  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 Breaks Ground for New Upper Perkiomen Valley Office

Pennsburg, PA (July 23, 2019) QNB Bank held a groundbreaking ceremony on Monday, July 22nd for its new Upper Perkiomen Valley Office. The new branch will replace the existing Pennsburg Office inside the Pennsburg Square Shopping Center. Conveniently located at the corner of Seminary Street and Route 663 (410 Pottstown Avenue) in Pennsburg, PA, construction of the new Upper Perkiomen Valley Office is expected to continue through the fall with a branch opening anticipated for December.

Dave Freeman, President and CEO of QNB said, “We are pleased to be able to relocate to such a convenient location for our new Upper Perkiomen Valley Office. We trust our current and future customers in the area will find the new branch to be a great value.”

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 eleven branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

QNB Bank Promotes Jessica Bealer to Vice President, International Services

Quakertown, PA (July 12, 2019) QNB Bank has promoted Jessica Bealer to the position of Vice President, International Services. In her role, Jessica is responsible for managing and delivering the bank’s suite of international products. In addition, she assists in the execution of international transactions and meets with customers and prospects to provide education.

Jessica has been in banking for 27 years, previously serving as VP, International Operations Manager at National Penn Bank and most recently as Credit Analyst & International Specialist at QNB Bank. She graduated from Moravian College where she earned her Bachelor of Arts degree in Accounting.

Jessica lives in Douglasville, PA with her family.

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