Current Press Releases
QNB Bank Donates $3,800 to Emmaus Public Library
QUAKERTOWN, PA (September 1, 2016) 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 6 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 year, QNB contributed a total of $3,800, which will be donated to the Emmaus Public Library. Since the program’s inception in 2011, QNB has donated $19,625 to local libraries.
Same Day ACH: Speeding Up Payments
On September 23, 2016, QNB Bank will begin accepting Same Day ACH payments. To learn more, click here.
QNB Corp. Declares Dividend
Quakertown, PA (August 24, 2016) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on August 23, 2016 declared a quarterly cash dividend of $0.30 per share. The cash dividend is payable on September 30, 2016 to shareholders of record September 16, 2016.
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 Promotes Tiffany Pompei to VP/Branch Manager at Dublin Village Office
QUAKERTOWN, PA (August 24, 2016) QNB is pleased to announce the promotion of Tiffany Pompei to the position of Vice President/Branch Manager at the Bank’s Dublin Village Office. In her role, Tiffany is responsible for increasing QNB’s client satisfaction through excellent service, community involvement, and by helping clients succeed financially. Her duties include developing team members to their maximum potential, overseeing the day-to-day operations of the Branch, and ensuring an enjoyable client experience. Her previous position was Assistant Vice President/Branch Manager at QNB’s Dublin Village Office.
Tiffany has been with QNB for 13 years. She graduated from Upper Perkiomen High School and has taken numerous American Institute of Banking courses. 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 Sponsors Manna's Move to North Penn Commons
LANSDALE, PA (August 2, 2016) QNB is supporting Manna on Main Street’s move to North Penn Commons (NPC). Manna on Main Street is a food pantry, soup kitchen, emergency financial aid and education provider serving the most vulnerable in the North Penn region. On Sunday, 9/18, Manna’s supporters will create a 1.3-mile human chain connecting Manna’s current location to their future home at NPC. Supporters will pass cans and boxes of food down the human chain to the new location. To “stand with Manna” go to mannaonmain.org.
QNB Corp. Reports Increased Earnings for Second Quarter 2016
QUAKERTOWN, PA (July 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 second quarter of 2016 of $2,098,000, or $0.62 per share on a diluted basis. This compares to net income of $1,934,000, or $0.58 per share on a diluted basis, for the same period in 2015. For the six months ended June 30, 2016, QNB reported net income of $4,363,000, or $1.29 per share on a diluted basis. This compares to net income of $4,070,000, or $1.22 per share on a diluted basis, reported for the same period in 2015.
For the second quarter ended June 30, 2016, the rate of return on average assets and average shareholders’ equity was 0.84% and 9.01%, respectively, compared with 0.81% and 8.83%, respectively, for the second quarter 2015. For six months ended June 30, 2016, the rate of return on average assets and average shareholders’ equity was 0.87% and 9.44%, respectively, compared with 0.85% and 9.41%, respectively, for the same period in 2015.
Total assets as of June 30, 2016 were $1,030,238,000 compared with $1,020,936,000 at December 31, 2015. Loans receivable at June 30, 2016 were $604,478,000 compared with $615,270,000 at December 31, 2015, a decrease of $10,792,000, or 1.8%. Total deposits at June 30, 2016 were $893,285,000 compared with $889,786,000 at December 31, 2015.
“Earnings growth has exceeded our expectations for the first half of the year. In the second quarter, net income increased 8.5% and earnings per share grew 6.9%,” said David W. Freeman, President and Chief Executive Officer. “Household growth reached record levels in June, and we continue to see improvement in asset quality.” Mr. Freeman added, “QNB Financial Services, our wealth management and retail brokerage business expanded assets under management to $86 million in at June 30, 2016, an increase of approximately $16 million from December 31, 2015.”
Net Interest Income and Net Interest Margin
Net interest income for the quarter and six months ended June 30, 2016 totaled $7,019,000 and $14,140,000, respectively, an increase of $377,000 and $811,000, respectively, from the same periods in 2015. The net interest margin for the second quarter of 2016 increased to 3.08% compared with 3.06% for the second quarter of 2015. Net interest margin for the six months ended June 30, 2016 was 3.11%, an increase of four basis points compared to the same period in 2015. Low interest rates and loan rate competition continues to exert pressure on asset yields, however, the growth in average loans as a percent of average earning assets as well as sustained growth in non-interest bearing deposits contributed to the improvement in net interest margin. The yield on earning assets increased two basis points from 3.54% for the second quarter of 2015 to 3.56% for the second quarter of 2016. For the six months ended June 30, 2016, the yield on earning assets increased four basis points, from 3.55% in 2015 to 3.59% in 2016. The cost of interest-bearing liabilities increased slightly to 0.58% for the second quarter and six months ended June 30, 2016, compared with the same periods in 2015.
Asset Quality, Provision for Loan Loss and Allowance for Loan Loss
QNB recorded a $125,000 provision for loan losses in the first quarter of 2016; no provision was required for the second quarter 2016. QNB's allowance for loan losses of $7,550,000 represents 1.25% of loans receivable at June 30, 2016 compared to $7,554,000, or 1.23% of loans receivable at December 31, 2015, and $7,655,000, or 1.32% of loans receivable at June 30, 2015. Net loan charge-offs were $129,000 for the first six months of 2016, or 0.04% annualized of total average loans, compared with net charge-offs of $406,000, or 0.14% annualized of total average loans for the same period in 2015.
Asset quality improved over the past six months and prior year with total non-performing assets of $12,583,000 as of June 30, 2016 compared with $13,372,000 as of December 31, 2015, and $15,019,000 as of June 30, 2015. Included in this classification are non-performing loans, other real estate owned (OREO) and repossessed assets, and non-accrual 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 $10,183,000, or 1.68% of loans receivable at June 30, 2016, compared with $10,719,000, or 1.74% of loans receivable at December 31, 2015, and $12,090,000, or 2.09% of loans receivable at June 30, 2015. 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, 2016, $6,319,000, or approximately 73% 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 June 30, 2016 substandard or doubtful loans totaled $23,476,000, a reduction of $3,849,000, or 14.1%, from the $27,325,000 reported at December 31, 2015 and a decrease of $5,885,000, or 20.0%, from the $29,361,000 reported at June 30, 2015.
QNB had no OREO and other repossessed assets as of June 30, 2016 and December 31, 2015 compared with three properties and one piece of leased equipment with a carrying value of $198,000 and $37,000, respectively, at June 30, 2015. Non-accrual pooled trust preferred securities are carried at fair value of $2,400,000, $2,653,000, and $2,694,000, at June 30, 2016, December 31, 2015, and June 30, 2015, respectively.
Total non-interest income was $1,374,000 for the second quarter of 2016, a decrease of $225,000, or 14.1%, compared with the same period in 2015. Non-interest income for the six months ended June 30, 2016 was $2,950,000, a decrease of $326,000, or 10.0%, compared to the same period in 2015. Net gains on investment securities declined $199,000, or 93.0%, from $214,000 in second quarter 2015 to $15,000 in second quarter 2016. Retail brokerage and advisory fees declined $78,000, or 38.2%, to $126,000 for the second quarter 2016 compared to the same period in 2015. Fees for services to customers decreased $7,000, or 1.7%, from $404,000 at June 30, 2015 to $397,000 at June 30, 2016, due primarily to a decrease in net overdraft income and the elimination of an ATM network service charge in September 2015. QNB originates residential mortgage loans for sale in the secondary market. Net gains on sale of loans decreased $48,000, or 40.3%, from $119,000 during the second quarter of 2015 to $71,000 during the second quarter 2016 due to a decline in residential mortgage activity.
These reductions in fee income were offset in part by a $28,000, or 7.1%, increase in ATM and debit card income to $422,000 for the second quarter 2016, due to increases in card-based transactions and expansion of checking account households. The net gain from trading activity of $52,000 for the second quarter of 2016 increased $86,000, or 252.9%, compared to the net loss of $34,000 for the second quarter of 2015. The “other” category of non-interest income declined slightly when comparing the second quarter of 2016 and 2015.
Total non-interest expense was $5,593,000 for the second quarter of 2016, decreasing $71,000, or 1.3%, from the same period in 2015. For the six months ended June 30, 2016 non-interest expense decreased $79,000 to $11,112,000, compared to the same period in 2015. Salaries and benefits expense decreased $65,000, or 2.1%, to $2,988,000 when comparing the two quarters. Net occupancy and furniture and equipment expense decreased $21,000, or 2.4%, to $866,000 for the second quarter 2016, primarily due to decreased utilities and rent expenses. Other non-interest expense increased $15,000, when comparing second quarter 2016 with second quarter 2015, primarily due to increased marketing and foreclosure expenses which were offset by decreased third party services and state tax expenses. Provision for income taxes increased $119,000 in the second quarter 2016. The effective tax rate for the second quarter of 2016 and 2015 was 25.1% and 23.2%, respectively. The increase in effective rate was due to a higher proportion of taxable income and increased state income taxes during the first half of 2016 compared to the same period in 2015.
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, 2015. 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 to Help United Way Stuff the Bus
QUAKERTOWN, PA (22 July 2016) – QNB will be participating in the 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 will be located at QNB Offices throughout Upper Bucks from July 25th through August 14th so that employees and customers can donate items. Participating Offices include Quakertown (Country Square, Downtown, & Towne Bank Center), Dublin Village, and Perkasie. This year, we’re hoping the program will fill 200 backpacks destined for students in Quakertown, Pennridge, and Palisades school districts.
Marti Green Joins QNB Bank as Vice President of Commercial Lending
QUAKERTOWN, PA (20 July 2016) Marti Green has accepted the position of VP/Commercial Lending at QNB Bank. Marti is responsible for developing commercial loan business customers while analyzing and structuring new commercial loan transactions. Aside from managing a portfolio of commercial loans, she is in charge of cross-selling other Bank products and services to commercial customers.
Marti has been in banking for 29 years. In her previous role at National Penn Bank, Marti served as Vice President of Commercial Lending. She attended Slippery Rock University where she earned a BA in Secondary Education. Marti went on to earn an MBA in Finance from Saint Joseph’s University.
Marti lives in Horsham with her family. She remains very active in her community where she serves as Director on the Board of the Greater Horsham Chamber of Commerce. She also serves as Treasurer on the Board and is a member of the Rotary Club of Horsham. In addition, Marti is the Treasurer on the Board of the Ocean Park Avenue Condominium Association.
QNB Bank Sponsors Lansdale Public Library Clean & Green Extravaganza Fundraiser
LANSDALE, PA (6 July 2016) 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.
Todd Alderfer Joins QNB Bank as Senior Vice President of Commercial Lending
QUAKERTOWN, PA (22 June 2016) Todd A. Alderfer has accepted the position of SVP/Commercial Lending at QNB Bank. Todd is responsible for soliciting, negotiating and coordinating the closing of commercial loans. As a team leader, he is also in charge of providing leadership, training and support to other commercial lenders at the Bank.
Todd has been in banking for 43 years. In his previous role at National Penn Bank, Todd served as Director of Commercial Lending. He attended the PA School of Banking at Bucknell University as well as the ABA National Commercial Lending School at the University of Oklahoma.
Todd lives in Gilbertsville with his family. He remains active in his community where he serves as a Board Member for both the United Way of Bucks County and the Pottstown Area Health and Wellness Foundation.