Current Press Releases

Quakertown, PA (March 23, 2022) Robert Zukowski was named Vice President, Branch Manager at QNB Bank’s Country Square Office in Quakertown. In his role, Robert is responsible for all aspects of branch management, including staff development, new business development and supporting community and customer relationships within the Quakertown market.

Robert has been in financial services for over 30 years, previously serving as Vice President, Branch Manager at QNB’s Souderton Office. In his previous employment at BB&T, he served as Assistant Vice President, Market Leader in Souderton. He attended Bucks County Community College and earned a bachelor’s degree from Temple University. Robert is very involved with the local community and currently serves on the Upper Bucks Chamber of Commerce Board and is a committee member of the Quakertown Alive Association. He was previously a long-time member of the Souderton/Telford Rotary Club. In addition, Robert serves on the Board for Keystone Opportunity Center, a local non-profit in Souderton. Robert grew up in Bucks County and currently lives in Montgomery Township with his wife and two children.

Quakertown, PA (March 16, 2022) QNB Bank is seeking artwork for its 2023 Student Art Calendar Contest from high school students (grades 9-12) of all schools in the QNB Bank market area. This will be the 27th installment of the QNB Student Art Collector Calendar.

The theme for this year is “Things with Wings” and the art format is the same as years past – a pen and ink drawing. 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 QNB Bank location, participating schools’ art departments, or on QNB’s website at QNBbank.com/contest. Artwork may be mailed to:

QNB Bank
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.

Quakertown, PA (March 1, 2022) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on March 1, 2022, declared a quarterly cash dividend of $0.36 per share. The cash dividend is payable on March 25, 2022, to shareholders of record March 11, 2022.

QNB Corp. offers commercial and retail banking services through the twelve banking offices of its subsidiary, QNB Bank. QNB Corp.’s stock is traded in the over-the-counter market under the symbol “QNBC.” For more information, visit QNB’s website at QNBbank.com.

Quakertown, PA (February 15, 2022) The Board of Directors of QNB Corp. (the “Company”) the parent company of QNB Bank (the “Bank”) has announced the appointment of Ranajoy Ray-Chaudhuri to the Board of Directors of both the Company and the Bank.

Dr. Ray-Chaudhuri is an Associate Professor of Economics and Finance at Muhlenberg College. His educational background includes a master’s and a doctorate in Economics from The Ohio State University. His teaching interests include Money and Banking, Macroeconomics and Development Economics, and his research focuses on the history of financial regulations, regulatory changes in the financial sector, central bank anatomy and the conduct of monetary policy, and the impact of financial development on economic growth. Dr. Ray-Chaudhuri’s knowledge and perspective of financial regulations, central banking and economic development give him the qualifications and skills to serve as a director of QNB. In addition, Dr. Ray-Chaudhuri will serve on the Audit Committee.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.6 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

Quakertown, PA (February 14, 2022) QNB Bank recently held its annual campaign to raise funds for United Way. Led by Patti Cole, Executive Assistant of QNB Bank, this year’s campaign was very successful, tallying up an impressive $19,325 from employees and an additional $4,831 from the Bank for a total contribution of $24,156.

United Way is dedicated to improving lives by mobilizing the caring power of communities. They help to advance the greater good by providing others with access to quality education, a stable income, and good health. For more information, visit unitedway.org.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.6 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

Quakertown, PA (January 25, 2022) QNB Bank has proudly pledged $50,000 to Grand View Health Foundation’s This Is Us Together campaign supporting critical healthcare infrastructure. For more than a century, Grand View Health and QNB Bank have been protecting the well-being of people in Upper Bucks and Northern Montgomery counties while delivering exceptional services trusted by the people they serve.

“QNB is tremendously grateful to support Grand View Health’s ongoing commitment to the well-being of our community,” said David Freeman, QNB Bank President & CEO. “Together, we are helping make this community a great place to live and work because we care.”

In summer 2023, Grand View Health will mark 110 years of serving the community by opening a new 190,000 square foot, six-story pavilion. Located on Lawn Ave. in Sellersville, the hospital expansion will feature 52 private patient rooms, ten state-of-the-art operating rooms, and a new emergency department and rooftop helipad to support Grand View Health’s Level II adult trauma center, the only level II trauma center in Upper Bucks County.

“The importance of this gift from QNB Bank cannot be understated as we move toward our goal to raise $14 million,” said Sandy Alderfer, Grand View Health Foundation Board Chair and Campaign Chair.

Doug Hughes, interim President and CEO of Grand View Health, added: “Since we announced our building project a little over two years ago, healthcare has undergone a historic transformation and reinforced the need for high quality, community-based healthcare services. We’ve been able to take what we’ve learned from the pandemic and adapt our plans so that we can be ready for whatever comes next.”

About QNB Bank

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.6 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

About This Is Us Together

At Grand View Health, we believe every one of us has a role to play in making our community healthy and strong. That’s why we’ve embarked on a capital campaign called This Is Us Together to ensure we’re ready for whatever comes next, while continuing to deliver exceptional healthcare in a familiar place, right here, close to home.

About Grand View Health Foundation

The Grand View Health Foundation raises funds to improve the health and wellness of residents in Bucks and Montgomery counties. Their mission is to assure the delivery of quality care, exceptional patient experiences and innovative medical treatments close to where residents live, work and raise their families.

Quakertown, PA (January 25, 2022) 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 2021 of $4,149,000, or $1.17 per share on a diluted basis. This compares to net income of $4,151,000, or $1.17 per share on a diluted basis, for the same period in 2020.  For the year ended December 31, 2021, QNB reported net income of $16,492,000, or $4.64 per share on a diluted basis. This compares to net income of $12,083,000, or $3.42 per share on a diluted basis, reported for the same period in 2020.

For the quarter ended December 31, 2021, the annualized rate of return on average assets and average shareholders’ equity was 0.98% and 11.82%, respectively, compared with 1.16% and 12.95%, respectively, for the fourth quarter 2020.  For the year ended December 31, 2021, the return on average assets and average shareholders’ equity was 1.04% and 12.19%, respectively, compared with 0.90% and 9.76%, respectively, for the same period in 2020.

The operating performance of QNB Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter and year ended December 31, 2021 in comparison with the same periods in 2020.  The change in contribution from QNB Corp. for the quarter and year ended December 31, 2021 compared to the same periods in 2020 is primarily due to the change in fair value of the equities portfolio held at the holding company.

The following table presents disaggregated net income:

Total assets as of December 31, 2021 were $1,673,340,000 compared with $1,440,229,000 at December 31, 2020. Total available for sale debt securities increased $256,714,000, or 58.9%, to $692,360,000, as excess funds from deposit growth and loan repayments were deployed into higher-yielding securities instead of cash. Total deposits increased $221,678,000 or 18.1% to $1,449,745,000.  QNB Bank participated in both rounds of the Small Business Administration’s (“SBA’s”) Paycheck Protection Program (“PPP”), originating 315 loans totaling $35,021,000 during round two in 2021. The SBA discontinued the program May 31, 2021. Loans receivable, excluding PPP, grew $63.6 million, or 7.5%, to approximately $912,533,000 since December 31, 2020.

“QNB finished 2021 strong. We reported record net income and earnings per share for the year, and saw substantial growth in deposits, loans and total households. Our ability to continue to serve the community, despite the difficult environment, resulted in significant acquisition of new retail and business relationships,” stated David W. Freeman, President and Chief Executive Officer.

Net Interest Income and Net Interest Margin

Net interest income for the quarter and year ended December 31, 2021 totaled $10,808,000 and $42,127,000, respectively, an increase of $1,287,000 and $4,879,000, respectively, from the same periods in 2020. The net interest margin for the fourth quarters of 2021 and 2020 was 2.68% and 2.82%, respectively. Net interest margin for the years ended December 31, 2021 and 2020 was 2.79% and 2.92%, respectively. The yield on average earning assets decreased 25 basis points to 2.95% for the fourth quarter of 2021, compared with the fourth quarter of 2020.  For the year ended December 31, 2021, the yield on average earning assets was 3.09%, compared with 3.42% for the same period in 2020. The cost of interest-bearing liabilities decreased to 0.35% for the quarter and 0.39% for the year ended December 31, 2021, respectively, compared with 0.50% and 0.63% for the same periods in 2020. The decrease in margin is due to repricing loans and prepayment of available for sale investments, and reinvesting in bonds with lower rates.

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

QNB recorded no provision for loan losses in the fourth quarter of 2021, compared with $250,000 for the same period in 2020. For the years ended December 31, 2021 and 2020, QNB recorded $458,000 and $1,250,000, respectively, in provision for loan losses. QNB's allowance for loan losses of $11,184,000  represents 1.21% of loans receivable at December 31, 2021 compared to $10,826,000, or 1.18% of loans receivable at December 31, 2020.  Net loan charge-offs for the year ended December 31, 2021 were $100,000 for 2021, or 0.01% of total average loans, compared with net charge-offs of $311,000, or 0.04% of total average loans, for the same period in 2020.

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 $11,672,000, or 1.26% of loans receivable at December 31, 2021, compared with $14,109,000, or 1.53% of loans receivable at December 31, 2020.  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, 2021, $4,499,000, or approximately 60% of the loans classified as non-accrual are current or past due less than 30 days. At December 31, 2021 commercial substandard or doubtful loans totaled $18,531,000, compared with $22,193,000 reported at December 31, 2020.

Non-Interest Income

Total non-interest income was $2,528,000 for the fourth quarter of 2021, a decrease of $1,019,000 compared with the same period in 2020, due largely to a $1,013,000 decrease in unrealized net gains on investment securities to $87,000, and decreased net gains on sale of loans of $631,000, to $58,000, when comparing the two periods. Net realized gain on securities increased $524,000 when comparing the two quarters.

ATM and debit card income increased $100,000, or 16.9% when comparing the fourth quarter 2021 to the same period in 2020, due to increased card activity when comparing the two periods. Retail brokerage income increased $50,000 due to increased assets under management. Other non-interest income decreased $54,000; merchant fee income decreased $12,000 (decreased volume), sale of checks to depositors decreased $31,000 (instant issue debit card machines were provided in 2020 from the check vendor), and bank owned life insurance declined $14,000 and gain on sale of equipment decreased $5,000 (equipment trade-in value in 2020). These decreases were offset in part by a $7,000 increase in title insurance income and a $6,000 increase in credit card income. Fees for services to customers declined $5,000 during fourth quarter 2021 compared to fourth quarter 2020, due to less overdraft income and service charges on deposits accounts.

Non-interest income for the year ended December 31, 2021 was $9,781,000, an increase of $2,179,000, or 28.7%, compared to the same period in 2020, of which $2,176,000 is attributable to increased combined realized and unrealized gain on equity securities. This increase was partially offset by net gain on sale of loans which decreased $1,129,000, due to decreased mortgage secondary market sales. Other income increased $435,000, or 35.5% when comparing the two periods. Bank owned life insurance increased $203,000, due primarily to a life insurance benefit of $193,000 realized during the first quarter of 2021. Title insurance income increased $79,000 due to increased mortgage origination activity and an increased ownership percentage in Laurel Abstract; year-to-date improved fair value of mortgage servicing rights and servicing income increased $60,000; letter of credit fees increased $45,000; merchant income increased $34,000; credit card income increased $19,000; miscellaneous income increased $30,000 due a settlement from the student loan insurer and mortgage-backed securities brokers. Excluding the realized gain on investments and loans, and change in fair value of equities, non-interest income increased $1,132,000, when comparing the two periods.

Non-Interest Expense

Total non-interest expense was $8,135,000 for the fourth quarter of 2021, increasing $524,000 from $7,611,000 for the same period in 2020. Salaries and benefits expense increased $238,000, or 5.5%, to $4,540,000 when comparing the two quarters. Salary expense and related payroll taxes increased $42,000 to $3,712,000, or 1.1%, during the fourth quarter of 2021 compared to the same period in 2020, due to decreased deferred loan origination cost of $45,000, increased salary and related taxes of $77,000, offset in part by decreased incentive compensation of $79,000.  Benefits expense increased $195,000, or 30.8%, due primarily to increased medical insurance claims expense., when comparing the two periods.

Net occupancy and furniture and equipment expense decreased $24,000, or 1.9%, to $1,273,000 for the fourth quarter 2021, due primarily to decreased building repair expense and decreased leasehold and furniture depreciation and computer software amortization expense, offset in part by increased software maintenance expense. Other non-interest expense increased $310,000, or 15.4% when comparing the fourth quarter of 2021 with the fourth quarter of 2020, due to increases in state tax expense, FDIC insurance costs, check fraud cost, and check card expense.

For the year ended December 31, 2021, non-interest expense increased $2,042,000, or 7.1%, from the same period in 2020, primarily for the same reasons as detailed in the quarter.

Provision for income taxes decreased $4,000, to $1,052,000 in the fourth quarter 2021, compared with the same period in 2020, due to the small decrease in pre-tax income. The effective tax rates for the quarter and year ended December 31, 2021 were 20.2% and 19.4%, respectively. This compares with effective tax rates for the same periods in 2020 of 20.3% and 17.5%, respectively.

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve 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 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, 2020. 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 (December 22, 2021) – Alicia Brojer was recently named Assistant Vice President, Branch Manager at QNB Bank’s Souderton Office. In her role, Alicia 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 within the Perkasie market.

Alicia has been in banking for 11 years, previously serving as Assistant Branch Manager at QNB’s Souderton Office. As an active member in the community, she enjoys supporting various local community events.

Quakertown, PA (December 20, 2021) – Mark Mascarinas was recently named Vice President, Branch Manager at QNB Bank’s Dublin Village Office. In his role, Mark 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 within the Dublin market.

Mark has been in banking for 26 years, previously serving as Assistant Vice President, Branch Manager at QNB’s Quakertown Commons Office. He earned his Bachelor of Science in commerce at Xavier University where he majored in accounting. As an active member in the community, Mark enjoys supporting various local community events and is a member of the Filipino-American Basketball Organization.

Quakertown, PA (December 16, 2021) – Mary Finlayson was recently named Assistant Vice President, Branch Manager at QNB Bank’s Quakertown Commons Office. In her role, Mary 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 within the Quakertown market.

Mary has been in banking for 4 years, previously serving as a Financial Services Representative, then a Universal Banker, and most recently as Assistant Branch Manager at QNB’s Quakertown Commons Office. She earned her high school diploma at Quakertown Community High School and is currently enrolled at New England Institute of Business. As an active member in the community, Mary enjoys supporting various local community events and is involved in the Quakertown Tips Club.