Current Press Releases

Quakertown, PA (July 27, 2017) Christa Martin, Assistant Vice President/Retail Mortgage Loan Officer of QNB Bank, recently completed coursework at the 2017 Pennsylvania Bankers Association (PA Bankers) School of Banking, June 4-8, at the Penn Stater Conference Center in State College, Pa.

Martin has served the banking industry for 17 years. At QNB, she is responsible for interviewing customers, originating applications and prequalifications and conducting loan closings. Martin is also responsible for coordinating loan transactions with other parties such as Realtors, title companies and builders.

The PA Bankers School of Banking provides students with a broad base of knowledge of the financial services industry, which can be applied in a practical manner. Topics taught at this school cover the banking system, understanding bank financial statements, marketing to customers, compliance, lending, motivation and supervision.

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.

QUAKERTOWN, PA (July 25, 2017) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank, reported net income for the second quarter of 2017 of $2,386,000, or $0.69 per share on a diluted basis, compared to net income of $2,098,000, or $0.62 per share on a diluted basis, for the same period in 2016.  For the six months ended June 30, 2017, QNB reported net income of $5,246,000, or $1.53 per share on a diluted basis. This compares to net income of $4,363,000, or $1.29 per share on a diluted basis, reported for the same period in 2016.

Total assets as of June 30, 2017 were $1,120,523,000 compared with $1,063,141,000 at December 31, 2016. Loans receivable at June 30, 2017 were $695,213,000 compared with $633,079,000 at December 31, 2016, an increase of $62,134,000, or 9.8%.  Total deposits at June 30, 2017 were $951,314,000, increasing $37,959,000, or 4.2%, compared with $913,355,000 at December 31, 2016.

“QNB is pleased to report increased net income and earnings per share for both the second quarter and year-to-date 2017,” said David W. Freeman, President and Chief Executive Officer.  “Net income for the first half of 2017 is our highest yet.  We continue to see strong loan, deposit, and household growth. 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, 2017 totaled $7,858,000 and $15,738,000, respectively, an increase of $839,000 and $1,598,000, respectively, from the same periods in 2016. The net interest margin for the second quarter 2017 was 3.10% compared to 3.08% for the second quarter 2016.  Net interest margin for the six months ended June 30, 2017 was 3.16%, an increase of five basis points compared to the same period in 2016.

The yield on average earning assets increased four basis points to 3.60% for the second quarter 2017, compared with the second quarter 2016.  For the six months ended June 30, 2017, the yield on average earning assets was 3.65%, compared with 3.59% for the same period in 2016.   The cost of interest-bearing liabilities increased to 0.61% and 0.60% for the quarter and first six months ended June 30, 2017, respectively, compared with 0.58% for the same periods 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 and second quarters of 2017 compared with $125,000 in the first quarter 2016.  No provision was required for the second quarter 2016.  QNB's allowance for loan losses of $8,035,000 represents 1.16% of loans receivable at June 30, 2017 compared to $7,394,000, or 1.17% of loans receivable at December 31, 2016, and $7,550,000, or 1.25% of loans receivable at June 30, 2016. Net loan recoveries were $16,000 and $41,000 for the quarter and six months ended June 30, 2017, respectively.

Non-performing assets totaled $10,846,000 as of June 30, 2017, compared with $14,219,000 as of December 31, 2016, and $12,583,000 as of June 30, 2016.  For periods prior to June 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, recording a loss on sale of $15,000.  The remaining trust preferred security, which had a carrying balance of $212,000 at June 30, 2017, was returned to accruing status.

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 $10,846,000, or 1.56% of loans receivable at June 30, 2017, compared with $11,938,000, or 1.89% of loans receivable at December 31, 2016, and $10,183,000, or 1.68% of loans receivable at June 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 June 30, 2017, $7,655,000, or approximately 81% 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 June 30, 2017, substandard or doubtful loans totaled $19,129,000, a reduction of $3,075,000, or 13.8%, from the $22,204,000 reported at December 31, 2016 and a decrease of $4,347,000, or 18.5%, from the $23,476,000 reported at June 30, 2016.

Non-Interest Income

Total non-interest income was $1,615,000 for the second quarter of 2017, an increase of $241,000, or 17.5%, compared with the same period in 2016.  Non-interest income for the six months ended June 30, 2017 was $3,605,000, an increase of $655,000, or 22.2%, compared to the same period in 2016.  Increases in non-interest income for the second quarter 2017, compared with the same period in 2016 comprise; net gain on sale of loans, which increased $130,000 to $201,000, attributable to gains on residential mortgage sales and a $99,000 gain on sale of a non-performing loan; net gains on investment securities, from $15,000 in second quarter 2016 to $115,000 for the same period in 2017; ATM and debit card income, up $27,000, or 6.4%, to $449,000; fees for services to customers, increasing $24,000, or 6.0%, to $421,000, due primarily to an increase in overdraft income; and other non-interest income, also increasing $24,000, or 8.2%, to $315,000 for the quarter.  Other income for the second quarter 2017 included a life insurance benefit of $51,000, increased letter of credit fees, title insurance income, and sale of checks to depositors, offset in part by a decline in income related to a sales tax refund received in 2016.

These increases in non-interest income were offset in part by decreases in trading and retail brokerage income.    QNB redeemed the trading portfolio during the second quarter of 2017, and income from this portfolio declined $42,000 when comparing the second quarter of 2017 to the same period in 2016.  Retail brokerage and advisory income declined $22,000 to $104,000 for the second quarter of 2017 compared to the same period in 2016.

Non-Interest Expense

Total non-interest expense was $5,942,000 for the second quarter of 2017, increasing $349,000, or 6.2%, from $5,593,000 for the same period in 2016.  For the six months ended June 30, 2017, non-interest expense increased $418,000, or 3.8%, from the same period in 2016.  Salaries and benefits expense increased $249,000, or 8.3%, to $3,237,000 when comparing the two quarters.  Salary expense and related payroll taxes increased $274,000 to $2,822,000, or 10.7%, during the second quarter of 2017 compared to the same period in 2016.  Benefits expense decreased $25,000, due primarily to decreased medical insurance claims when comparing the two periods.  Net occupancy and furniture and equipment expense increased $15,000, or 1.7%, to $881,000 for the second quarter 2017, with maintenance and rent expense increases of $32,000 and $20,000, respectively, partially offset by a $23,000 decrease in building repairs and maintenance and $24,000 decrease in depreciation and amortization expense.  Other non-interest expense increased $85,000, or 4.9%, when comparing the second quarter of 2017 with the second quarter of 2016, with increased marketing, third party processing, and check card expense offset in part by a reduction in foreclosure expense.  Provision for income taxes increased $143,000, or 20.4%, to $845,000 in the second quarter 2017 due to increased pre-tax income and a higher effective tax rate. The effective tax rate for the second quarters of 2017 and 2016 was 26.2% and 25.1%, respectively. The increase in the effective rate for 2017 reflects a lower proportion of tax-free income for the second 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.

Quakertown, PA (July 14, 2017) QNB Bank proudly presented a donation of $7,500 to the United Way of Bucks County on July 10^th. United Way of Bucks County is dedicated to improving lives by mobilizing the caring power of communities. Their mission is to advance the greater good by focusing on three key issues: access to a quality education, a stable income, and good health – the building blocks of a great life.

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.

Quakertown, PA (July 13, 2017) QNB Bank proudly presented a donation of $1,000 to The Perkiomen School on July 6^th. The Perkiomen School is a traditional coeducational college preparatory boarding and day school where structure, support, self-discipline, and integrity are valued. Perkiomen admits students in grades six through twelve and offers a year for postgraduate students.

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.

Quakertown, PA (July 11, 2017) QNB Bank proudly presented a donation of $2,000 to the Buxmont Academy on July 5^th. Buxmont Academy, Community Service Foundation’s (CSF) academic school, is dedicated to providing education, counseling, foster care and other services to help at-risk youth and their families in eastern Pennsylvania to grow and change through restorative practices. CSF Buxmont operates 5 school/day program sites, an elementary school program at one site and 4 community-based foster homes, in addition to in-home supervision programs, restorative reporting centers and restorative services for schools.

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.

Quakertown, PA (July 10, 2017) QNB Bank proudly presented a donation of $4,000 to the Lansdale Public Library’s Behind the Screens program on June 30^th. The Behind the Screens class engages students aged 9-15 in computer programming, robotics, 3D printing, and other STEM activities. This class is free to the students who attend and is offered at 4:30pm on Fridays during the school year and at 11:30am on Fridays in the summer. For more information, visit lansdalelibrary.org.

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.

Quakertown, PA (June 22, 2017) QNB is pleased to announce the promotion of Jackie Thomas to the position of Assistant Branch Manager I at the Bank’s Coopersburg Office. In her role, Jackie 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. Her previous position was Universal Banker Supervisor at QNB’s Perkasie Office.

Jackie has been with QNB for over 8 years. She is a graduate of Pennridge High School and has completed several banking courses including Consumer Lending, Principles of Banking and Supervisor Certification. Jackie is active in her community, lending a helping hand at various local events as needed. Jackie currently resides in Quakertown.

Quakertown, PA (June 22, 2017) Each year, a member of the United Way of Bucks County Board of Directors is awarded the Dr. Stanton Kelton Award. This long-standing award recognizes an individual who has made a significant contribution over the past year to the goals of the United Way of Bucks County and its mission in the community. This award honors the memory of Dr. Kelton, a compassionate and generous board member from 1966 to 1993, who was dedicated to advancing this community.

This year, Todd Alderfer is being honored with this prestigious award. Mr. Alderfer is Senior Vice President/Commercial Lending Team Leader at QNB. He is a member of United Way of Bucks County's Board of Directors and is being honored for exceptional contributions over the past year, which includes helping staff with fundraising and leadership giving. He is kind, wise, and generous with his knowledge—traits valued by both United Way's staff and his fellow board members.

Quakertown, PA (June 22, 2017) Dale Westwood, Executive Vice President/Chief Retail Officer of QNB Bank, has been elected to the Pennsylvania Bankers Association’s (PA Bankers) Board of Directors. Westwood is an At-Large Representative on the Board.

The Board of Directors, which includes PA Bankers’ officers, will meet at least quarterly to determine the policies and administration of the Association. Members of the board are senior-level officers of PA Bankers’ member banks.

Westwood was elected to the Board during the Association’s annual meeting on May 11 and will start her 3-year term on July 1, 2017.

In her role at QNB, Westwood is responsible for the coordination and development of all retail banking activities and functions. These duties include overseeing of branch administration, sales, and training. She has also implemented the Bank’s “Casual for a Cause” charity campaign, which has consistently raised over $10,000 per year for local and national charities. Westwood has served the banking industry for over 40 years and has been with QNB since 2008.

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.

Quakertown, PA (June 14, 2017) QNB Bank is proud to sponsor this year’s North Penn YMCA Golf Classic for Kids on Monday, June 19^th at the Indian Valley Country Club. The event helps the Y raise funds to support the more than $300,000 in charitable services and programs they provide for youth of all ages. Last year, over 400 local 7^th graders received complimentary memberships giving them a values-oriented place to go for basketball, swimming, fitness programs and recreation programs. Summer camp, swim lessons and child care are some of the programs supported by this annual fundraising event. For more information, visit NorthPennYMCA.org.