Current Press Releases
QNB Corp. Reports Increased Earnings for Third Quarter 2017
Quakertown, PA (October 24, 2017) 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 2017 of $2,554,000, or $0.74 per share on a diluted basis. This compares to net income of $2,292,000, or $0.67 per share on a diluted basis, for the same period in 2016. For the nine months ended September 30, 2017, QNB reported net income of $7,800,000, or $2.27 per share on a diluted basis. This compares to net income of $6,655,000, or $1.96 per share on a diluted basis, reported for the same period in 2016.
For the quarter ended September 30, 2017, the annualized rate of return on average assets and average shareholders’ equity was 0.89% and 9.90%, respectively, compared with 0.86% and 9.57%, respectively, for the third quarter 2016. For the nine months ended September 30, 2017, the annualized rate of return on average assets and average shareholders’ equity was 0.94% and 10.37%, respectively, compared with 0.87% and 9.48%, respectively, for the same period in 2016.
“QNB is pleased to report our seventh consecutive quarter of year-over-year increases in net income and earnings per share,” said David W. Freeman, President and Chief Executive Officer. “Household growth continues at a strong pace and QNB Financial Services, our wealth management and retail brokerage business expanded assets under management to $121 million at September 30, 2017, an increase of approximately $21 million from December 31, 2016.”
Net Interest Income and Net Interest Margin
Net interest income for the quarter and nine months ended September 30, 2017 totaled $8,215,000 and $23,353,000, respectively, an increase of $1,130,000 and $2,253,000, respectively, from the same periods in 2016. The net interest margin for the third quarter of 2017 was 3.15% compared with 2.93% for the third quarter of 2016. Net interest margin for the nine months ended September 30, 2017 was 3.15%, an increase of ten basis points compared to the same period in 2016. The yield on average earning assets increased 29 basis points to 3.69% for the third quarter of 2017, compared with the third quarter of 2016. For the nine months ended September 30, 2017, the yield on average earning assets was 3.67%, compared with 3.52% for the same period in 2016. The cost of interest-bearing liabilities increased to 0.66% and 0.62% for the quarter and nine months ended September 30, 2017, respectively, compared with 0.57% and 0.58% for the same periods in 2016.
Asset Quality, Provision for Loan Loss and Allowance for Loan Loss
QNB recorded a $100,000 provision for loan losses in the third quarter of 2017; no provision was required for the third quarter 2016. For the nine months ended September 30, 2017 and 2016, QNB recorded $700,000 and $125,000, respectively, in provision for loan losses. QNB's allowance for loan losses of $8,125,000 represents 1.15% of loans receivable at September 30, 2017 compared to $7,394,000, or 1.17% of loans receivable at December 31, 2016, and $7,593,000, or 1.25% of loans receivable at September 30, 2016. Net loan recoveries were $31,000 for the first nine months of 2017, or -0.01% annualized of total average loans, compared with net charge-offs of $86,000, or 0.02% annualized of total average loans for the same period in 2016.
Non-performing assets were $10,437,000 as of September 30, 2017 compared with $14,219,000 as of December 31, 2016, and $11,811,000 as of September 30, 2016. For periods prior to June 30, 2017, this category comprised non-performing loans and trust preferred securities. In June 2017, QNB Bank sold five non-performing pooled trust preferred securities, with a $2,234,000 carrying value. The remaining pooled trust preferred security, which had a carrying balance of $212,000 at September 30, 2017, was returned to accruing status in June 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 $10,437,000, or 1.48% of loans receivable at September 30, 2017, compared with $11,938,000, or 1.89% of loans receivable at December 31, 2016, and $9,536,000, or 1.57% of loans receivable at September 30, 2016. 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, 2017, $7,507,000, or approximately 82% of the loans classified as non-accrual are current or past due less than 30 days. Commercial loans classified as substandard or doubtful, which include non-performing loans, also improved. At September 30, 2017 substandard or doubtful loans totaled $18,064,000, a reduction of $4,140,000, or 18.6%, from the $22,204,000 reported at December 31, 2016 and a decrease of $4,101,000, or 18.5%, from the $22,165,000 reported at September 30, 2016.
Total non-interest income was $1,470,000 for the third quarter of 2017, a decrease of $174,000, or 10.6%, compared with the same period in 2016. Non-interest income for the nine months ended September 30, 2017 was $5,075,000, an increase of $481,000, or 10.5%, compared to the same period in 2016. Gain on sale of investment securities decreased $218,000, and gain on sale of loans decreased $78,000, due to decreased mortgage activity for the third quarter 2017, compared with the same period in 2016. These were offset in part by the following increases in non-interest income; retail brokerage and advisory income, which increased $39,000 to $168,000, attributable to the growth in assets under management; other non-interest income, which increased $24,000, or 9.6%, due primarily to increased letter of credit income; ATM and debit card income, up $16,000, or 3.9%, to $435,000; and a net loss on trading securities of $39,000 during 2016. QNB redeemed the trading portfolio during the second quarter of 2017.
Total non-interest expense was $6,191,000 for the third quarter of 2017, increasing $575,000, or 10.2%, from $5,616,000 for the same period in 2016. For the nine months ended September 30, 2017, non-interest expense increased $993,000, or 5.9%, from the same period in 2016. Salaries and benefits expense increased $442,000, or 14.4%, to $3,514,000 when comparing the two quarters. Salary expense and related payroll taxes increased $366,000 to $2,979,000, or 14.0%, during the third quarter of 2017 compared to the same period in 2016, attributable to a $171,000 increase in employee salaries and $139,000 increase in bonus accrual. Benefits expense increased $76,000, or 16.6%, due primarily to increased medical insurance claims and retirement plan expense, offset in part by decreased post-retirement life insurance benefit cost, when comparing the two periods. Net occupancy and furniture and equipment expense increased $69,000, or 7.9%, to $944,000 for the third quarter 2017, due primarily to increased maintenance expense. Other non-interest expense increased $64,000, or 3.8%, when comparing the third quarter of 2017 with the third quarter of 2016, with increased check card and third- party processing, telephone and collection expense offset in part by decreases in professional services and marketing expenses.
Provision for income taxes increased $119,000, or 14.5%, to $940,000 in the third quarter 2017 due to a higher effective tax rate and increased pre-tax income. The effective tax rate for the third quarters of 2017 and 2016 was 26.9% and 26.4%, respectively. The increase in the effective rate for 2017 reflects a lower proportion of tax-free income for the third quarter of 2017 compared to the same period in 2016.
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, 2016. 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.
Robert Zukowski Joins QNB Bank as Branch Manager at Souderton Office
Quakertown, PA (October 17, 2017) Robert Zukowski was recently named Vice President, Branch Manager II at QNB’s Souderton Branch. Robert 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.
Robert has been in banking for 25 years. In his previous employment at BB&T Bank, he served as Assistant Vice President, Market Leader III. Robert attended Bucks County Community College and earned his Associate’s Degree at Temple University.
Robert lives in North Wales with his family. As an active member in the community, he is a current member of the Indian Valley Chamber of Commerce.
QNB Bank Helped United Way Stuff the Bus
Quakertown, PA (August 25, 2017) QNB was proud to participate in this year’s Stuff the Bus School Supply Drive organized by United Way of Bucks County. Stuff the Bus is a campaign designed to collect school supplies such as backpacks, notepads, and binders so that all students in the Upper Bucks schools have the tools they need to succeed in their education.
Drop off boxes were placed at QNB Offices and other supporting businesses throughout Upper Bucks from July 28th through August 15th for employees and customers to donate items. On August 25th, representatives from Quakertown, Pennridge and Palisades School Districts and the Quakertown Food Pantry received a total of 268 supply-filled backpacks destined for local students.
Same Day ACH: Speeding Up Payments (Phase 2)
You may have already noticed a change in the times during the day that we apply electronic Direct Deposits to your account. Beginning on Friday, September 15, 2017, we also will change the times that we apply certain electronic debit payments to your account. Click here to learn more.
QNB Bank Donates $5,700 to Southern Lehigh Public Library
Quakertown, PA (August 24, 2017) QNB Bank has once again teamed up with the Lehigh Valley IronPigs to help raise money for local libraries through the “Batting for Books” campaign. For the past 7 years, the Bank has pledged to donate $25 for each double hit by the IronPigs in their home stadium at Coca-Cola Park in Allentown. This season, the team hit a whopping 228 doubles for a total Bank contribution of $5,700! This year’s proud recipient was the Southern Lehigh Public Library. Since the program’s inception in 2011, QNB has donated $25,325 to local libraries.
QNB Corp. Declares Dividend
Quakertown, PA (August 22, 2017) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on August 22, 2017 declared a quarterly cash dividend of $0.31 per share. The cash dividend is payable on September 29, 2017 to shareholders of record September 15, 2017.
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 Bank Helps Rehab Quakertown Home for Local Family
Quakertown, PA (August 16, 2017) QNB Bank was very proud to support Habitat for Humanity of Bucks County’s 104th home building project for a local family in need. QNB’s $10,000 donation helped to cover renovation costs for the 3-bedroom 216 Yardley Court townhouse in Quakertown. Brian Kelleher, local uniform company worker and single father to 4 boys, was honored to be the homebuyer for the Yardley Court project. His new home provides much more living space for him and his 4 growing boys, allowing them to gather around one table at mealtime. Mr. Kelleher and his children were presented with the key to their new home on July 28th.
The mission of Habitat for Humanity of Bucks County (Habitat Bucks) is, Building Communities, Empowering Families. Habitat Bucks has an open-door policy: all who believe that everyone deserves a decent, affordable place to live are welcome to lend a helping hand.
The Habitat Bucks Homeownership Program provides an opportunity for low-income families to build strength, stability and self-reliance by partnering with Habitat. Habitat homebuyers contribute a minimum of 200 hours of sweat equity during the construction of their homes.
Habitat Bucks began building affordable homes in 1990. In addition, their home repair program, A Brush with Kindness, Habitat Bucks also makes repairs to the exterior of homes, including porch repair and installation of handicapped accessible ramps, and modifications to interiors of homes to help aging and disabled individuals remain safe in their own homes. Revenue from Habitat ReStore (31 Oak Ave., Suite 100, Chalfont, PA 18914) provides a source of sustainable funding for the construction and repair of homes.
For more information about Habitat Bucks, please call 215-822-2812 or visit habitatbucks.org.
QNB Bank Recognized for 140 Years of Service
Quakertown, PA (August 11, 2017) QNB Bank is honored to be recognized by the Pennsylvania Bankers Association for serving customers, communities and shareholders for 140 years. QNB Bank currently operates eleven branches in Bucks, Montgomery and Lehigh Counties and offers commercial and retail banking in the communities it serves. In addition, QNB 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.
The Pennsylvania Bankers Association, located in Harrisburg, is the state’s leading banking trade association representing an expansive and diverse membership. The association offers extensive continuing education programs, government relations representation on behalf of the industry, and provides numerous products and services for banks and their employees.
QNB Bank Promotes April Donahue to Vice President, Business Development Officer at Colmar Office
Quakertown, PA (August 10, 2017) QNB is pleased to announce the promotion of April Donahue to the position of Vice President, Business Development Officer at the Bank’s Colmar Office. In her role, April is responsible for the development of relationships with businesses in North Penn and the surrounding areas. Her duties also include representing QNB through various civic and community functions. Her previous position was VP, Branch Manager at the Colmar Office.
April has been with QNB for over 32 years. She earned her Associate’s Degree from Bucks County Community College and holds a Bachelor of Science from Delaware Valley University. April is very active in her community, serving as Vice Chair of the Community Health & Youth Foundation. She is also a board member of the International Spring Festival as well as the Hatfield Chamber of Commerce. In addition, April serves as Ambassador of the PennSuburban Chamber of Commerce and Treasurer of the National Ovarian Cancer Coalition. April currently resides in Hilltown with her family.
Melissa Brindley Joins QNB Bank as Branch Manager at Colmar Office
Quakertown, PA (August 7, 2017) Melissa Brindley was recently named Assistant Vice President, Branch Manager at QNB’s Colmar Branch. 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 10 years. In her previous employment at Bucks County Bank, Melissa served as Branch Manager. She earned her Associate’s Degree from Bucks County Community College and has also completed several Pennsylvania Bankers Association courses.
Melissa lives in Sellersville with her family. As an active member in the community, she has been involved in several local Chambers of Commerce. Melissa also looks forward to lending a helping hand at various community events.