Current Press Releases
QNB Corp. Reports Record Earnings for First Quarter 2017
Quakertown, PA (April 25, 2017) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank, reported net income for the first quarter of 2017 of $2,860,000, or $0.83 per share on a diluted basis, compared to net income of $2,265,000, or $0.67 per share on a diluted basis, for the same period in 2016.
Total assets as of March 31, 2017 were $1,089,007,000 compared with $1,063,141,000 at December 31, 2016. Loans receivable at March 31, 2017 were $659,039,000 compared with $633,079,000 at December 31, 2016, an increase of $25,960,000, or 4.1%. Total deposits at March 31, 2017 were $942,891,000, increasing $29,536,000, or 3.2%, compared with $913,355,000 at December 31, 2016.
“We are pleased with our record-setting earnings in first quarter 2017 with net income and earnings per share growing 26.3% and 23.9%, respectively,” said David W. Freeman, President and Chief Executive Officer. “The loan, deposit, and household growth we saw in 2016 was sustained during first quarter 2017. Asset quality remains strong.”
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended March 31, 2017 totaled $7,880,000, an increase of $759,000, or 10.7%, from the same period in 2016. The net interest margin for the first quarter of 2017 was 3.22% compared to 3.14% for the first quarter 2016. The increase in margin was due to $416,000 of interest collected at payoff on a non-accrual loan. Without the additional interest recognized, the net interest margin would have been 3.05% compared with 2.97% for the fourth quarter of 2016.
The yield on earning assets was 3.71% for the first quarter 2017. Excluding the additional interest income referenced above, the yield on earning assets was 3.55%, a seven basis point decline when compared with the first quarter of 2016. The cost of interest-bearing liabilities was 0.60% for the first quarter ended March 31, 2017, compared with 0.58% for the same period in 2016.
Asset Quality, Provision for Loan Loss and Allowance for Loan Loss
QNB recorded a $300,000 provision for loan losses in the first quarter of 2017 compared with $125,000 in the first quarter 2016. QNB's allowance for loan losses of $7,719,000 represents 1.17% of loans receivable at March 31, 2017 compared to $7,394,000, or 1.17% of loans receivable at December 31, 2016, and $7,556,000, or 1.26% of loans receivable at March 31, 2016. Net loan recoveries were $25,000 for the first quarter of 2017, or -0.02% annualized of total average loans, compared with net charge-offs of $123,000, or 0.08% annualized of total average loans for the first quarter of 2016.
Non-performing assets totaled $13,446,000 as of March 31, 2017, compared with $14,219,000 as of December 31, 2016, and $12,765,000 as of March 31, 2016. Included in this classification are non-performing loans 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 $11,023,000, or 1.67% of loans receivable at March 31, 2017, compared with $11,938,000, or 1.89% of loans receivable at December 31, 2016, and $10,110,000, or 1.68% of loans receivable at March 31, 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 March 31, 2017, $8,077,000, or approximately 84% 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, improved. At March 31, 2017, substandard or doubtful loans totaled $18,267,000, a reduction of $3,937,000, or 17.7%, from the $22,204,000 reported at December 31, 2016 and a decrease of $7,703,000, or 29.7%, from the $25,970,000 reported at March 31, 2016.
Total non-interest income was $1,990,000 for the first quarter of 2017, an increase of $414,000, or 26.3%, compared with the same period in 2016. Increases in non-interest income comprise; net gains on investment securities, which more than doubled, from $319,000 in first quarter 2016 to $749,000 for the same period in 2017; ATM and debit card income, up $29,000, or 7.5%, to $417,000; other non-interest income also increasing $29,000, or 12.4%, to $262,000 for the quarter, primarily due to increased credit card fees, letter of credit fees, title insurance income, and sale of checks to depositors; and fees for services to customers, up $9,000, or 2.3%, to $392,000 for the quarter ended March 31, 2017 compared to the same period in 2016, due primarily to an increase in overdraft income.
These increases in non-interest income were offset in part by a $67,000, or 39.4%, decrease in retail brokerage and advisory income to $103,000 for the first quarter 2017, and a $17,000, or 50%, decrease in trading portfolio gains.
Total non-interest expense was $5,588,000 for the first quarter of 2017, increasing slightly from $5,519,000 for the same period in 2016. Salaries and benefits expense increased $32,000, or 1.0%, to $3,086,000 when comparing the two quarters. Salary expense and related payroll taxes increased $106,000, or 4.1%, to $2,702,000 during the first quarter 2017 compared to the same period in 2016, while medical premiums and post-retirement life insurance declined $42,000 and $35,000, respectively. Net occupancy and furniture and equipment expense increased $14,000, or 1.6%, to $880,000 for the first quarter 2017, with maintenance cost increases of $30,000 partially offset by a $16,000 decrease in leasehold and equipment depreciation expense. Other non-interest expense increased $23,000, or 1.4%, when comparing first quarter 2017 with first quarter 2016, with a reduction in foreclosure expense as the primary contributor. Provision for income taxes increased $334,000, or 42.4%, to $1,122,000 in the first quarter 2017 due to increased pre-tax income and a higher effective tax rate. The effective tax rate for the first quarters of 2017 and 2016 was 28.2% and 25.8%, respectively. The increase in the effective rate for 2017 reflects lower proportionate tax-free income for the first 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.
Area Bankers Receive Years of Service Award
Quakertown, PA (April 20, 2017) Bob Beck, Harry McGuirk, Richard Slimmer, and Todd Alderfer of QNB Bank were recognized for serving 40 or more years in the banking industry at the Pennsylvania Bankers Association (PA Bankers) Group 2 meeting held on April 4th at the Rivercrest Golf Club in Phoenixville.
The 40-Year Club consists of bankers completing 40 or more years of service in Pennsylvania’s banking industry who are regular members of the PA Bankers.
Bob Beck has served the banking industry for 40 years. In his current position of Vice President/Information Technology of QNB Bank, Bob is responsible for the efficient and effective operation of the Information Technology Department. Bob holds a Bachelor of Arts degree in Psychology from Muhlenberg College. Formerly, Bob was the IT Director for Bank & Trust Company of Old York Road.
Harry McGuirk has served the banking industry for 41 years. As Senior Vice President/ Commercial Loan Manager of QNB Bank, Harry is responsible for managing a commercial loan portfolio, developing staff and assisting with the development and implementation of commercial lending policies and procedures. Harry received a Bachelor of Science-Business Administration from Widener University. He also holds a Masters of Business Administration from Penn State University. Previously, he served as Senior Vice President/Commercial Lending at National Penn Bank.
Richard Slimmer has served the banking industry for 42 years. In his current position of Vice President/Commercial Loan Officer of QNB Bank, Richard is responsible for servicing commercial lending customers, including interviewing applicants and analyzing financial data pertaining to commercial loans. He holds a Bachelor of Arts degree in Accounting and Economics from Muhlenberg College.
Todd Alderfer has served the banking industry for 42 years. As Senior Vice President, Commercial Lending of QNB Bank, Todd is responsible for soliciting, negotiating and coordinating the closing of commercial loans while providing leadership, training and support to other commercial lenders at the Bank. Todd attended the PA School of Banking at Bucknell University as well as the ABA National Commercial Lending School at the University of Oklahoma. Previously, he served as Director of Commercial Lending at National Penn Bank.
The Pennsylvania Bankers Association, located in Harrisburg, is the Commonwealth’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 Seeking Student Art for 2018 Collector Calendar
Quakertown, PA (April 5, 2017) QNB Bank is seeking artwork for its 2018 Student Art Calendar Contest from High School students (grades 9-12) from all schools in the QNB Bank market area. This will be the 22nd installment of the QNB Student Art Collector Calendar.
The theme for this year is “Pets” 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 at participating schools’ art departments.
All artwork must be received by Wednesday, 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:
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.
QNB Bank Sponsors Philadelphia Symmetry Skating Teams
Quakertown, PA (March 29, 2017) QNB Bank is proud to support Philadelphia Symmetry Synchronized Skating Teams. Formed in 2004, Philadelphia Symmetry currently serves over 130 skaters on nine competitive and two exhibition teams. The organization is one of the top four on the East Coast and one of the top 12 in the country. QNB’s support will allow the organization to add additional value to its program. Support is needed for extra on-ice and off-ice practices, provide for team buses for competition travel, and reduce the fees for its participants.
For more information about Philadelphia Symmetry, please visit PhiladelphiaSymmetry.org.
QNB Bank Helps Rehab Quakertown Home for Local Family
Quakertown, PA (March 24, 2017) QNB Bank is very proud to support Habitat for Humanity of Bucks County’s latest project to rehab a home in Quakertown for a local family in need. QNB’s $10,000 donation will help cover renovation costs for the 3-bedroom 216 Yardley Court townhouse. Brian Kelleher, local uniform company worker and single father to 4 boys, is honored to be the homebuyer for the Yardley Court project. His new home will provide much more living space for him and his 4 growing boys, allowing them to gather around one table at mealtime. Mr. Kelleher and his family are scheduled to move into their new home later this summer.
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 volunteer 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.
Since 1990, Habitat Bucks has built 104 affordable homes in Bucks County. Through 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 ReStores 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 www.habitatbucks.org.
QNB Bank Promotes Deb McDonald to VP, Branch Manager III
Quakertown, PA (March 3, 2017) QNB is pleased to announce the promotion of Deb McDonald to the position of Vice President, Branch Manager III at the Bank’s Coopersburg Office. In her role, Deb is responsible for the effective management of the full service branch which exceeds $100 million in deposits. In addition, her duties include developing new business, retaining and expanding current businesses, and representing QNB through various civic and community functions. Her previous position was Vice President, Branch Manager II at QNB’s Coopersburg Office.
Deb has been with QNB for over 30 years. She graduated from Pennridge High School and obtained her American Institute of Banking Diploma in 1994. She then continued college through the AIB while working on her degree. As an active member in her community, Deb serves on the Foundation Board of the Greater Lehigh Valley Chamber of Commerce, also known as Main Street Lehigh Valley. She was also a past Board of Governors member for the Greater Lehigh Valley Chamber of Commerce and a past President for the Southern Lehigh Chamber of Commerce. Deb continues to speak to students in different schools, including Southern Lehigh High School, about budgeting, loans and credit. Deb currently resides in Quakertown with her family.
QNB Corp. Increases Dividend
Quakertown, PA (February 28, 2017) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on February 28, 2017 declared a quarterly cash dividend of $0.31 per share. The amount represents a 3.3% increase from the prior quarter. Based upon the closing price of a share as of close of business February 27, 2017, this represents a yield of 3.3%. The cash dividend is payable on March 31, 2017 to shareholders of record March 17, 2017.
“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 3.3%. 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 QNBbank.com.
QNB Bank Promotes Tiffany Pompei to VP, Compliance Analyst
Quakertown, PA (February 10, 2017) QNB is pleased to announce the promotion of Tiffany Pompei to the position of Vice President, Compliance Analyst. In her new role, Tiffany will work directly with the SVP, Chief Compliance Officer to oversee the QNB Bank Compliance Management System, functioning with independence and objectivity to review and evaluate compliance issues and concerns within the organization. Her previous position was Vice President, Branch Manager at QNB’s Dublin Village Office.
Tiffany has been with QNB for over 13 years. She graduated from Upper Perkiomen High School and has taken numerous American Institute of Banking courses. She is also pursuing a degree in business at the University of Phoenix. As an active member in her community, Tiffany serves on the Board of Discover Dublin, Pennridge Chamber of Commerce and Kiwanis of Upper Bucks. Tiffany currently resides in Quakertown with her family.
QNB Bank Customers Save on TurboTax®
Quakertown, PA (February 2, 2017) 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 16, 2017, the last filing date for tax year 2016.
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.
Intuit and TurboTax are registered trademarks of Intuit Inc.
Lea Garrard Joins QNB Bank as Branch Manager at Warminster Office
Quakertown, PA (January 26, 2017) Lea Garrard was recently named Vice President, Branch Manager at QNB’s Warminster Branch. Lea 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.
Lea has been in banking for 29 years. In her previous employment at BB&T Bank, Lea served as a Cluster Market Leader. She graduated from Fairleigh Dickinson University. She has also completed management development courses at Penn State University as well as commercial lending, banking management and analyzing financial statements classes at the American Institute of Banking.
Lea lives in Perkasie with her family. She remains active in the community as a member of the Warminster Rotary Club as well as the Greater BucksMont Chamber of Commerce. She also enjoys participating in the annual Bridge to Beach Bike-a-thon with Team Medi-Dose in support of the American Cancer Society.