Current Press Releases

Local Banker Graduates from Stonier Graduate School of Banking

Quakertown, PA (August 17, 2018) Chris Cattie, Executive Vice President/Chief Information Technology Officer of QNB Bank, recently graduated from the American Bankers Association Stonier Graduate School of Banking in Philadelphia.

Offered in partnership with the University of Pennsylvania’s Wharton School, the ABA Stonier Graduate School of Banking trains the future leaders of the industry. Nine percent of last year’s 684 attendees were executive vice presidents, chairpersons or CEO’s, while an additional 27 percent held the title of vice president or director. In addition, many attendees represent federal regulatory agencies or firms serving the industry. All participants are considered rising stars in their organizations and represent more than 48 states and 21 countries. For more than 80 years, Stonier has trained more than 26,000 of the nation’s top banking executives and government regulators, many of whom have reached the pinnacle of their organizations.

Chris has been in banking for 22 years. In his previous role at another financial institution, Chris served as Senior Vice President of Information Technology. He earned a Bachelor of Science from Lock Haven University for Accounting and Management. He then continued his education at LaSalle University where he received his MBA. Chris lives in Willow Grove with his family. He remains active in his community where he serves as a volunteer and coach for the Upper Moreland Soccer Club.

John Ventura Appointed as Community Reinvestment Act Officer of QNB Bank

Quakertown, PA (July 26, 2018) John Ventura has been appointed as the Community Reinvestment Act (CRA) Officer of QNB Bank. In addition to his current responsibilities as Vice President of Retail Lending, he will have supplementary responsibilities for the Bank’s Community Reinvestment and Fair Lending activities.

Prior to joining QNB Bank, John served as Chief Lending Officer at Gratz Bank. He also served as the Chief Credit and Administrative Officer at South Eastern Economic Development Corporation of Pennsylvania and Executive Vice President/Chief Lending/CRA Officer at First Savings Bank of Perkasie.

John holds a BA (Cum Laude) in Marketing from Alvernia University. He is also a graduate of the American Bankers Association School of Retail Banking, the PA Bankers School of Commercial Lending, and the Cannon Trust School. He holds an American Bankers Association Certificate in Lending Compliance. He has also taken numerous Risk Management Association (RMA) courses as well as Small Business Administration and PA Bankers Association courses. 

John is a member of PA Bankers Association Professional Development Policy Committee and is the Director of the PA Bankers Association Advanced School of Banking for 2018.

QNB Corp. Reports Increased Earnings for Second Quarter 2018

QUAKERTOWN, PA (July 24, 2018) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank, reported net income for the second quarter of 2018 of $2,862,000, or $0.82 per share on a diluted basis, compared to net income of $2,386,000, or $0.69 per share on a diluted basis, for the same period in 2017. For the six months ended June 30, 2018, QNB reported net income of $5,797,000, or $1.67 per share on a diluted basis. This compares to net income of $5,246,000, or $1.53 per share on a diluted basis, reported for the same period in 2017.

Total assets as of June 30, 2018 were $1,172,874,000 compared with $1,152,337,000 at December 31, 2017. Loans receivable at June 30, 2018 were $779,886,000 compared with $733,283,000 at December 31, 2017, an increase of $46,603,000, or 6.4%. Total deposits at June 30, 2018 were $985,726,000, decreasing $8,222,000, compared with $993,948,000 at December 31, 2017.

“QNB is pleased to report record earnings—with net income and earnings per share being the highest reported for the first half of 2018,” said David W. Freeman, President and Chief Executive Officer. “During the second quarter, we relocated our Warminster office to larger space, combining full-service branch banking, along with our lower Bucks loan center. We continue to see strong loan, deposit, and household growth throughout our service footprint. Asset quality and net interest margin continue to improve.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter and six months ended June 30, 2018 totaled $8,700,000 and $17,491,000, respectively, an increase of $842,000 and $1,753,000, respectively, from the same periods in 2017. The net interest margin for the second quarter 2018 was 3.15% compared to 3.10% for the second quarter 2017. Net interest margin for the six months ended June 30, 2018 was 3.18%, an increase of two basis points compared to the same period in 2017.

The yield on average earning assets improved 21 basis points to 3.81% for the second quarter 2018, compared with the second quarter 2017. For the six months ended June 30, 2018, the yield on average earning assets was 3.82%, compared with 3.65% for the same period in 2017, primarily due to loan growth. The cost of interest-bearing liabilities increased 20 basis points to 0.81% for the quarter, and 18 basis points to 0.78% for the six months ended June 30, 2018, respectively.

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

QNB recorded a $187,000 provision for loan losses in the second quarter of 2018 compared with $300,000 in the second quarter 2017. QNB's allowance for loan losses of $8,192,000 represents 1.05% of loans receivable at June 30, 2018 compared to $7,841,000, or 1.07% of loans receivable at December 31, 2017, and $8,035,000, or 1.16% of loans receivable at June 30, 2017. Net loan charge offs were $32,000 and $24,000 for the quarter and six months ended June 30, 2018, respectively, compared with net recoveries of $16,000 and $41,000 for the same periods in 2017, respectively. Annualized net loan charge-offs for the quarter and six months ended June 30, 2018 were 0.02% 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 $7,987,000, or 1.02% of loans receivable at June 30, 2018, compared with $9,242,000, or 1.26% of loans receivable at December 31, 2017, and $10,846,000, or 1.56% of loans receivable at June 30, 2017. 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, 2018, $3,512,000, or approximately 52% of the loans classified as non-accrual are current or past due less than 30 days. Commercial loans classified as substandard or doubtful, which includes non-performing loans, totaled $18,199,000 at June 30, 2018, an increase of $1,552,000, or 9.3%, from the $16,647,000 reported at December 31, 2017, and a decrease of $930,000, or 4.9%, from the $19,129,000 reported at June 30, 2017.

Non-Interest Income

Total non-interest income was $1,454,000 for the second quarter of 2018, a decrease of $161,000, or 10.0%, compared with the same period in 2017. Non-interest income for the six months ended June 30, 2018 was $2,521,000, a decrease of $1,084,000, or 30.1%, compared to the same period in 2017, primarily due to net gains on investment securities of $864,000 in 2017 compared to combined realized and unrealized net losses on investment securities of $72,000 in 2018. Decreases in non-interest income for the second quarter 2018, compared with the same period in 2017, comprise; net gain on sale of loans, decreased $164,000, attributable to reduced gains on residential mortgage sales of $65,000, and a $99,000 gain on sale of a non-performing loan which took place in 2017; net gains on investment securities, from $115,000 in second quarter 2017 to combined realized and unrealized gains on investment securities totaling $89,000 for the same period in 2018; and a decrease of $13,000 in fees for services to customers from $421,000 in second quarter 2017 to $408,000 for the same period in 2018 attributable primarily to decreased overdraft charges, net of fee waivers. 

These decreases in non-interest income were offset in part by a $38,000, or 8.5% increase in ATM and debit card income to $487,000. Other non-interest income increased $13,000, or 4.1%, to $328,000, due to increased income related to sales tax refunds of $53,000, increased letter of credit fees of $14,000 and increased loan servicing income of $7,000, offset in part by decreased merchant fee income of $10,000 and decreased life insurance cash surrender income of $51,000. The Company received a life insurance benefit of $52,000 in the second quarter of 2017.  Retail brokerage and advisory income remained flat at $105,000 for the second quarter of 2018 compared to the same period in 2017.

Non-Interest Expense

Total non-interest expense was $6,533,000 for the second quarter of 2018, increasing $591,000, or 9.9%, from $5,942,000 for the same period in 2017. For the six months ended June 30, 2018, non-interest expense increased $1,181,000, or 10.2%, from the same period in 2017.  Salaries and benefits expense increased $390,000, or 12.0%, to $3,627,000 when comparing the two quarters. Salary expense and related payroll taxes increased $167,000 to $2,989,000, or 5.9%, during the second quarter of 2018 compared to the same period in 2017. Benefits expense increased $223,000, or 53.7%, to $638,000, due primarily to increased medical insurance claims when comparing the two periods.

Net occupancy and furniture and equipment expense increased $130,000, or 14.8%, to $1,011,000 for the second quarter 2018, due to the relocation of the Warminster location to a full-service branch as well as the renovation of the operations center. Building and equipment maintenance expense increased $54,000, depreciation expense increased $19,000, and computer software amortization and maintenance expense increased $43,000. Other non-interest expense increased $71,000, or 3.9%, when comparing the second quarter of 2018 with the second quarter of 2017. Increased third party, check card and training and entertainment expense of $99,000, $39,000, and $24,000, respectively, were offset in part by reduced marketing expense of $86,000.

Provision for income taxes decreased $273,000, or 32.3%, to $572,000 in the second quarter 2018 due to a reduced corporate 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 six months ended June 30, 2018 were 16.7% and 16.3%, respectively. This compares with effective tax rates for the same periods in 2017 of 26.2% and 27.3%, respectively.

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. 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, 2017. 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 Supports Coopersburg Streetscape Plan

Coopersburg, PA (July 23, 2018) QNB Bank is proud to support the Borough of Coopersburg’s comprehensive Streetscape Plan designed to beautify and enhance Coopersburg’s historic character. QNB donated $5,000 toward the community improvement project, with a second $5,000 donation to be made again next year. Coopersburg’s Streetscape Plan includes improving sidewalks and curbs, installing brick patterned crosswalks and ornamental light poles, calming traffic through delineation of parking spaces and shared lane bicycle markings, and enhancing the connection between the Saucon Rail Trail and Main Street business district. Construction of the new improvements is scheduled to begin in Spring/Summer 2019.

Janet Wooler Joins QNB Bank as Assistant Branch Manager at Country Square Office

Quakertown, PA (June 1, 2018) Janet Wooler was recently named Assistant Branch Manager II at QNB’s Country Square Office. In her role, Janet is responsible for directing the workflow of the customer service area including supervising, coaching and scheduling staff in order to ensure the efficient operation of the Branch. She will also represent QNB through various civic and community functions. Janet has been in banking for 33 years. In her previous employment at BB&T Bank, she served as Market Leader. Janet lives in Quakertown with her family.

QNB Bank Sponsors She Nailed It Competition of Habitat For Humanity Lehigh Valley

Quakertown, PA (May 24, 2018) QNB Bank was proud to sponsor and take part in the “She Nailed It!” Social & Competition at ArtsQuest Musikfest Café on May 7th. The annual fundraiser benefits Habitat for Humanity’s Women Build initiative, designed to recruit, educate and empower women to break stereotypes and fight poverty housing. This year’s donations benefitted a Women Build home in Bethlehem to be purchased by a Habitat homebuyer.

At the event, teams of four competed to see who could hammer home the cause the fastest in a nail-hammering relay race. Coached by QNB’s Brian Mack, Courtney Covelens, Sherrie Rotenberger, Jennifer James, and Lynn Housenick took 1st place in fundraising for the second year in a row and made it to the 3rd round of the hammer competition!

QNB Corp. Declares Dividend

Quakertown, PA (May 23, 2018) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on May 22, 2018 declared a quarterly cash dividend of $0.32 per share. The cash dividend is payable on June 29, 2018 to shareholders of record June 15, 2018.

QNB Corp. offers commercial and retail banking services through the 11 banking offices of its subsidiary, QNB Bank. In addition, QNB Bank provides securities and advisory services under the name of QNB Financial Services through Investment Professionals, Inc., a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. 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 Corp. Reports Record Earnings for First Quarter 2018

Quakertown, PA (April 24, 2018) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank, reported net income for the first quarter of 2018 of $2,935,000, or $0.85 per share on a diluted basis, compared to net income of $2,860,000, or $0.83 per share on a diluted basis, for the same period in 2017. 

Total assets as of March 31, 2018 were $1,172,168,000 compared with $1,152,337,000 at December 31, 2017. Loans receivable at March 31, 2018 were $750,187,000 compared with $733,283,000 at December 31, 2017, an increase of $16,904,000, or 2.3%.  Total deposits at March 31, 2018 were $1,006,369,000, increasing $12,421,000, or 1.2%, compared with $993,948,000 at December 31, 2017.

“The first quarter of 2018 marked record-setting earnings and several milestones for the Bank,” said David W. Freeman, President and Chief Executive Officer. “Net income and earnings per share grew 2.6% and 2.4%, respectively compared to the first quarter of 2017. The loan, deposit, and household growth we saw in 2017 was sustained during first quarter 2018 and asset quality remains strong.  Construction was completed on our relocated and expanded Warminster Office in 56 days  ̶  our 11th full-service branch opened for business on April 16.  Also, our securities and advisory service, QNB Financial Services, saw assets under management exceed $130 million”.

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended March 31, 2018 totaled $8,791,000, an increase of $911,000, or 11.6%, from the same period in 2017. The net interest margin was 3.22% for both the first quarter of 2018 and 2017.  The yield on earning assets was 3.83% for the first quarter 2018, an increase of twelve basis points from 3.71% in the first quarter of 2017.  The cost of interest-bearing liabilities was 0.75% for the first quarter ended March 31, 2018, compared with 0.60% for the same period in 2017.

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

QNB recorded a $188,000 provision for loan losses in the first quarter of 2018 compared with $300,000 in the first quarter 2017.  QNB's allowance for loan losses of $8,037,000 represents 1.07% of loans receivable at March 31, 2018 compared to $7,841,000, or 1.07% of loans receivable at December 31, 2017, and $7,719,000, or 1.17% of loans receivable at March 31, 2017. Net loan recoveries were $8,000 for the first quarter of 2018, compared with net recoveries of $25,000 for the first quarter of 2017.

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 $8,327,000, or 1.11% of loans receivable at March 31, 2018, compared with $9,242,000, or 1.26% of loans receivable at December 31, 2017, and $11,023,000, or 1.67% of loans receivable at March 31, 2017. 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, 2018, $4,964,000, or approximately 70% of the loans classified as non-accrual are current or past due less than 30 days.  Commercial loans classified as substandard or doubtful, which includes non-performing loans, totaled $17,416,000 at March 31, 2018.  This was an increase of $769,000, or 4.6%, from the $16,647,000 reported at December 31, 2017 and a decrease of $851,000, or 4.7%, from the $18,267,000 reported at March 31, 2017.

Non-Interest Income

Total non-interest income was $1,067,000 for the first quarter of 2018, a decrease of $923,000, or 46.4%, compared with the same period in 2017.  Decreases in non-interest income comprise; net gains on investment securities, net gain from trading activity and net gain on sale of loans, which decreased $910,000, $17,000, and $43,000, respectively, in first quarter 2018 compared with the same period in 2017.  The net gain on investment securities was $85,000 in the first quarter of 2018 compared with $765,000 for the same period in 2018.  The adoption of Accounting Standard Update 2016-01 effective January 1, 2018 requires the Company to record unrealized gains or losses on available for sale securities classified as equity securities through earnings, rather than in other comprehensive income (loss), a component of shareholders’ equity.  At March 31, 2018, these unrealized losses totaled $246,000.  Fees for services to customers and ATM and debit card income increased $29,000, or 7.4% and $13,000, or 3.1%, respectively, to $421,000 and $430,000, respectively.  The increase in fees for services to customers is due primarily to an increase in overdraft income, while the increase in ATM and debit card income is due to increased credit card activity for the first quarter of 2018 compared. to the same period in 2017.

Non-Interest Expense

Total non-interest expense was $6,178,000 for the first quarter of 2018, increasing $590,000, or 10.6% from $5,588,000 for the same period in 2017.  Salaries and benefits expense increased $259,000, or 8.4%, to $3,345,000 when comparing the two quarters.  Salary expense and related payroll taxes increased $149,000, or 5.5%, to $2,851,000 during the first quarter 2018 compared to the same period in 2017.  Medical premiums, retirement plan expense and post-retirement life insurance benefit expense increased $63,000, $21,000, and $24,000, respectively during the same period.   Net occupancy and furniture and equipment expense increased $78,000, or 8.9%, to $958,000 for the first quarter 2018, due to increased equipment, building and software maintenance totaling $70,000 and utilities expense, increasing $7,000, comparing the first quarter of 2018 with the same period in 2017.  Other non-interest expense increased $253,000, or 15.6%, when comparing first quarter 2018 with first quarter 2017, due to increased expenses for marketing of $81,000, third-party services of $28,000, employee training of $26,000, FDIC insurance of $34,000, and ATM/check cards of $75,000.

Provision for income taxes decreased $565,000, or 50.4%, to $557,000 in the first quarter 2018 due to decreased pre-tax income and a reduced corporate tax rate from 34% to 21%, resulting from the Tax Cuts and Jobs Act, effective January 1, 2018.  The effective tax rates for the first quarters of 2018 and 2017 were 16.0% and 28.2%, respectively.

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. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through Investment Professionals, Inc., 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, 2017. 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 Seeking Art for 2019 Collector Calendar

Quakertown, PA (March 27, 2018) QNB Bank is seeking artwork for its 2019 Student Art Calendar Contest from High School students (grades 9-12) from all schools in the QNB Bank market area. This will be the 23rd installment of the QNB Student Art Collector Calendar.

The theme for this year is “Sports” and the art format is pen and ink drawings. 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 of QNB Bank’s Branch Offices or participating schools’ art departments.

All artwork must be received by Thursday, May 31st and may be dropped off at the QNB Towne Bank Center, located at 320 W. Broad Street, Quakertown, or any of QNB Bank’s Branch Offices. Artwork may also 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.

Mary Beth Liddle Joins QNB Bank as Senior Vice President, Chief Accounting Officer/Controller

Quakertown, PA (March 12, 2018) Mary Beth Liddle was recently named Senior Vice President, Chief Accounting Officer/Controller at QNB Bank. She is responsible for managing the Bank’s accounting, regulatory reporting and tax functions while maintaining a system of internal controls.

Mary Beth has been in banking for 32 years. In her previous employment, she served as Senior Vice President & Controller for Univest Corporation of PA. Mary Beth earned her Bachelor of Science Degree at Delaware Valley University where she graduated magna cum laude.

Mary Beth lives in Pipersville, PA with her family. She has served as past President and Board Member of the Philadelphia Chapter of the Financial Managers Society (FMS) as well as Treasurer of the FMS East Coast Regional.

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