Current Press Releases

QNB Corp. Increases Dividend

Quakertown, PA (23 February 2016) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on February 23, 2016 declared a quarterly cash dividend of $0.30 per share. The amount represents a 3.4% increase from the prior quarter. Based upon the closing price of a share as of close of business February 22, 2016, this represents a yield of 3.9%. The cash dividend is payable on March 25, 2016 to shareholders of record March 11, 2016.

“As a result of the continued solid financial performance of QNB Corp., the Board of Directors is pleased to be able to increase the dividend by 3.4%. As a result of its well capitalized position, QNB Corp. is able to continue its uninterrupted history of quarterly dividends,” said David W. Freeman, President and Chief Executive Officer.

QNB Corp. offers commercial and retail banking services through the eleven 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 http://www.qnbbank.com/.

QNB Sponsors Lansdale Public Library Clean & Green Extravaganza Fundraiser

QNB is proud to sponsor the 6th annual Clean & Green Extravaganza fundraiser for the Lansdale Public Library. The event will take place at the Lansdale Public Library on Saturday, July 16th from 9am to 1pm. This year’s Clean & Green Extravaganza will include a carwash, book sale, document shredding, and electronics recycling.

 

QNB Bank Promotes Denise Landis to Assistant Vice President/Retail Lending Officer

QUAKERTOWN, PA (11 February 2016) Denise Landis has been named Assistant Vice President/Retail Lending Officer at QNB’s Towne Bank Center. Denise is responsible for processing and underwriting new retail loan applications as well as preparing closing documents and closing loans when needed.  She is also responsible for answering retail loan questions from Branch personnel and customers. Her previous position was Retail Lending Officer.

Denise has been employed by QNB for over 30 years. She graduated from Palisades High School and acquired her General Banking Diploma from the American Institute of Banking. Denise has also completed a variety of AIB courses to further expand her banking knowledge.

Denise lives in Coopersburg with her family. She remains active in the Upper Bucks community where she serves as Treasurer for the Salvation Army.

Chris Cattie Joins QNB Bank as Executive Vice President/Chief Information Technology Officer

QUAKERTOWN, PA (19 February 2016) QNB Bank has hired Chris Cattie for the position of Executive Vice President/Chief Information Technology Officer at QNB’s Towne Bank Center. Chris is responsible for directing and managing the Departments of Information Technology, Deposit Operations, and Electronic Banking. In his role as a community banker, Chris looks forward to developing relationships with employees, business people, and vendors that live and work in the local community.

Chris has been in banking for 20 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.

QNB Bank Promotes Wendy L. Awckland to Assistant Vice President/Branch Manager at Quakertown Commons Office

QUAKERTOWN, PA (28 January 2016) Wendy L. Awckland has been named Assistant Vice President/Branch Manager of QNB Bank’s Quakertown Commons Office located inside the GIANT food store. Wendy is responsible for the efficient and effective management of a full-service supermarket branch office, as well as coaching and motivating branch staff.  Her previous position was Assistant Branch Manager at QNB’s Dublin Village Office.

Wendy has been employed by QNB for nearly four years while her overall banking career spans over 20 years. She graduated from Upper Perkiomen High School and attended Western Montgomery VoTech. Wendy studied Finance and Accounting and has American Institute of Banking Certifications in Principles of Banking, Accounting, Consumer Lending, and Law and Banking.
Wendy lives in Quakertown with her family. She remains active in the Souderton and East Greenville communities where she previously resided. She is also active in Upper Bucks Relay for Life.

 

QNB Corp. Reports Earnings

QUAKERTOWN, PA (January 26, 2016) 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 2015 of $1,943,000, or $0.58 per share on a diluted basis. This compares to net income of $2,486,000, or $0.75 per share on a diluted basis, for the same period in 2014.  For the year ended December 31, 2015, QNB reported net income of $8,233,000, or $2.46 per share on a diluted basis. This compares to net income of $8,998,000, or $2.72 per share on a diluted basis, reported for 2014.

For the year 2015 the rate of return on average assets and average shareholders’ equity was 0.83% and 9.29%, respectively, compared with 0.95% and 10.89%, respectively, for the year 2014.

Total assets as of December 31, 2015 were $1,020,936,000 compared with $977,135,000 at December 31, 2014. Loans receivable at December 31, 2015 were $615,270,000 compared with $555,282,000 at December 31, 2014, an increase of $59,988,000, or 10.8%, with commercial lending as the largest contributor to the growth.  Total deposits at December 31, 2015 were $889,786,000, an increase of 4.5% compared with $851,592,000 at December 31, 2014, due to strong growth in non-time deposits.

David W. Freeman, President and Chief Executive Officer stated, “Loan, deposit and household growth for the fourth quarter and the entire year contributed to our results.  We continue to see trends in asset quality improvement as well.  The decline in net interest margin slowed in 2015, as we continue to experience net interest margin pressure, due to the rate environment and competition.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter and twelve months ended December 31, 2015 totaled $7,025,000 and $27,369,000, respectively, an increase of $374,000 and $1,243,000, respectively, from the same periods in 2014. The net interest margin for the fourth quarter of 2015 was 3.00% compared to 2.96% for the fourth quarter of 2014.  Net interest margin for the twelve months ended December 31, 2015 was 3.05%, a decrease of two basis points compared to the same period in 2014.  While the prolonged low interest rate environment and loan rate competition continues to exert pressure on asset yields, the growth in loans as a percent of earning assets as well as growth in non-interest bearing deposits during 2015 contributed to the Company’s ability to maintain net interest margin.  The yield on earning assets increased one basis point from 3.45% for the fourth quarter of 2014 to 3.46% for the fourth quarter of 2015. For the twelve months ended December 31, 2015, the yield on earning assets declined four basis points, from 3.57% in 2014 to 3.53% in 2015.    The cost of interest-bearing liabilities was 0.56% for the fourth quarter and the year ended December 31, 2015, compared with 0.57% and 0.58% for the same periods in 2014.

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

QNB recorded a $140,000 provision for loan losses in the fourth quarter of 2015, compared to $400,000 for the fourth quarter 2014.  For the year 2015, QNB recorded $200,000 in provision, compared to $400,000 for the year 2014.   QNB's allowance for loan losses of $7,554,000 represents 1.23% of loans receivable at December 31, 2015 compared to an allowance for loan losses of $8,001,000, or 1.44% of loans receivable at December 31, 2014. Net loan charge-offs were $255,000 for the fourth quarter of 2015, or 0.17% annualized of total average loans, compared with net charge-offs of $765,000 for the fourth quarter of 2014, or 0.56% of total average loans. For the years ended December 31, 2015 and 2014 net loan charge-offs were $647,000, or 0.11%, and $1,324,000, or 0.25%, of total average loans, respectively. The majority of charge-offs recorded during both 2015 and 2014 had specific reserves established during the allowance for loan loss calculation process prior to the decision to charge-off the loan.

Asset quality improved over the past year with total non-performing assets of $13,372,000 at December 31, 2015 compared with $18,152,000 as of December 31, 2014. Included in this classification are non-performing loans, other real estate owned (OREO) and repossessed assets, and non-performing pooled trust preferred securities. 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 $10,719,000, or 1.74% of loans receivable at December 31, 2015, compared with $12,667,000, or 2.28% of loans receivable at December 31, 2014. 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, 2015, $7,395,000, or approximately 79% 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, also improved. At December 31, 2015 substandard or doubtful loans totaled $27,325,000, a reduction of $7,029,000, or 20.5%, from the $34,354,000 reported at December 31, 2014.

QNB had no other real estate owned and other repossessed assets as of December 31, 2015 compared with five properties with a carrying value of $3,046,000 at December 31, 2014.  Included in the December 31, 2014 amount was one property with a fair value of $2,325,000, which was sold in January 2015.  For the twelve months ended December 31, 2015, a total of six OREO properties were sold, one of which was acquired during the year and subsequently sold. Non-accrual pooled trust preferred securities are carried at fair value of $2,653,000, and $2,439,000, at December 31, 2015 and December 31, 2014, respectively.  The increase in the carrying value of these securities reflects an improvement in their fair value.

Non-Interest Income

Total non-interest income was $1,263,000 for the fourth quarter of 2015, and $6,032,000 for the year ended December 31, 2015, a decrease of $1,325,000 and $1,510,000, compared to the same periods in 2014, respectively.  On November 26, 2014, QNB transferred its former internet domain name to a third party for a purchase price of $1.0 million, as disclosed in a Form 8-k filing dated December 2, 2014. The Company also received a life insurance benefit totaling $158,000 during the fourth quarter 2014.  Excluding these two non-recurring items, the Company’s non-interest income declined $167,000, or 11.7%, and $352,000, or 5.5%, when comparing the quarters and years ended December 31, 2015 and 2014, respectively.

Net gains on investment securities decreased $42,000 for the quarter and $329,000 for the year ended December 31, 2015, primarily due to market conditions which resulted in fewer opportunities for sales in 2015 compared to 2014.   QNB recorded net gains in trading activity of $16,000 for the quarter and $33,000 for year ended December 31, 2015, compared with net gains from trading activity of $1,000 and $156,000 for the fourth quarter and year ended December 31, 2014, respectively.  Net gains on the sale of residential mortgage loans for the fourth quarter and year ended December 31, 2015 were $54,000 and $356,000, respectively, a decrease of $33,000 for the fourth quarter 2015, and an increase of $98,000 for the year 2015, respectively, compared to the same periods in 2014.  Growth in QNB Financial Services resulted in an additional $29,000 in retail brokerage and advisory income for the year ended December 31, 2015, while fourth quarter 2015 saw a decline of $75,000, when compared to the same periods in 2014. Increased debit card usage resulted in an increase in income of $46,000 for the quarter and $86,000 for the year 2015 compared to the same periods in 2014.

Non-Interest Expense

Total non-interest expense was $5,634,000 for the fourth quarter of 2015, an increase of $12,000, or 0.2%, compared with $5,622,000 for the fourth quarter of 2014.  For year ended December 31, 2015, total non-interest expense increased $772,000, or 3.6%, to $22,398,000, compared to the same period in 2014.  Salaries and benefits expense increased $61,000, or 2.0%, for the quarter ended December 31, 2015, compared to the same period in 2014. For the year ended December 31, 2015 salaries and benefits expense increased $427,000, or 3.7%, compared to the same period in 2014.  Salary expense decrease of $14,000 for the fourth quarter 2015 compared to the same period in 2014 was offset by increased benefits costs of $75,000, primarily medical insurance premiums.  For the year ended December 31, 2015, salary expense increase of $574,000, or 6.4%, was offset by a reduction in net benefits costs. The reduction in benefits expense is due primarily to insurance reimbursements for medical claims paid in prior periods.  Net occupancy and furniture and equipment expense declined $10,000, or 1.1%, for the fourth quarter 2015 compared to the same period in 2014.  For year ended December 31, 2015, net occupancy and furniture and equipment costs increased $30,000 compared to the same period in 2014, due primarily to increased software maintenance and rental expense, offset in part by lower depreciation expense.  Other operating expenses for the three months ended December 31, 2015 decreased $39,000.  Other operating expenses for the twelve months ended December 31, 2015 increased $315,000, or 4.8%, as increased taxes, third party services, collection costs and  debit card expenses  were partially offset by a decline in marketing, and FDIC insurance expense.  Debit card expenses include a $208,000 contract termination fee related to card platform upgrades anticipated to occur during 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, 2014. 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.

 

Contacts:         David W. Freeman                                                       Janice S. McCracken Erkes

                        President & Chief Executive Officer                              Chief Financial Officer

                        215-538-5600 x-5619                                                    215-538-5600 x-5716

                        dfreeman@qnbbank.com                                             jmccracken@qnbbank.com

 

 

QNB Bank Customers Save On TurboTax®

QUAKERTOWN, PA (20 January 2016) QNB has teamed up with TurboTax® to get your taxes done right. Through a marketing alliance with Intuit® Inc., QNB Bank customers can save up to $25 on TurboTax federal products. In addition, Intuit offers a TurboTax Federal Free Edition for basic tax returns and free efile on all of its editions. With TurboTax, taxpayers can easily prepare and file federal and state income tax returns online. TurboTax searches over 350 deductions and credits, so you won’t miss a thing. QNB’s customers can be confident that their returns are accurate and complete. This year, file your taxes the smarter way and get your biggest possible refund with TurboTax.

TurboTax can be accessed from QNB Bank’s homepage and is available to use through October 15, 2016, the last filing date for tax year 2015.

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.

Intuit and TurboTax are registered trademarks of Intuit Inc.

 

Lucy P. N. Sharp, Esq., Elected Board President of Keystone Opportunity Center

SOUDERTON, PA (14 January 2016) Lucy P. N. Sharp, Esq., has been elected President of the Board of Directors of Keystone Opportunity Center. After serving as Keystone’s Vice President for 2 years, Lucy wholeheartedly shares the values of Keystone Opportunity Center. Their mission is to help community members in need by offering a comprehensive array of social services that educate, encourage, and empower them to become self-sufficient. Keystone’s staff collaborates with hundreds of volunteers to provide housing for the homeless in Upper Bucks and Montgomery Counties while feeding the hungry and educating parents and their children. Lucy is currently the Vice President/Chief Compliance Officer at QNB Bank.

 

QNB Bank and Employees Donate Over $28,000 to United Way

QUAKERTOWN, PA (12 January 2016) QNB Bank recently held its annual campaign to raise funds for the United Way. Led by Ann Gaspar, this year’s campaign was the most successful yet, tallying up an impressive $24,054 from employees and an additional $4,500 from the Bank for a total contribution of $28,554.

(Pictured: Ann Gaspar, Executive Secretary, and Dave Freeman, President/CEO of QNB Bank)

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.

 

QNB Bank Promotes Cory Fosbenner to Vice President/Branch Manager at Wescosville Office

QUAKERTOWN, PA (7 January 2016) QNB is pleased to announce the promotion of Cory Fosbenner to the position of Vice President/Branch Manager at the Bank’s Wescosville Office. In his role, Mr. Fosbenner is responsible for increasing QNB’s client satisfaction through excellent service, community involvement, and by helping clients succeed financially. His duties include developing team members to their maximum potential, overseeing the day-to-day operations of the Bank’s northernmost branch, and ensuring an enjoyable client experience. His previous position was Assistant Vice President/Branch Manager at QNB’s Quakertown Commons Office.

Mr. Fosbenner attended Millersville University and has been with QNB since 2013. Aside from his education at Millersville, Mr. Fosbenner also attended US Army Basic Training, US Army Airborne School, John F Kennedy Special Warfare School, and the 18th Airborne Corps Noncommissioned Officer Academy. As an active individual in the community, Mr. Fosbenner is an Upper Buck YMCA and Quakertown Alive committee member, an Upper Bucks Chamber of Commerce member, a National American Legion member, and a member of the 82nd Airborne Association. He currently resides in Quakertown with his wife and two sons and enjoys skiing, the outdoors, and travelling.

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