Current Press Releases

QNB Corp. Reports Earnings for Fourth Quarter 2019

Quakertown, PA (January 30, 2020) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the quarter of 2019 of $2,745,000, or $0.78 per share on a diluted basis. This compares to net income of $2,327,000, or $0.67 per share on a diluted basis, for the same period in 2018.  For the twelve months ended December 31, 2019, QNB reported net income of $12,357,000, or $3.53 per share on a diluted basis. This compares to net income of $11,335,000, or $3.25 per share on a diluted basis, reported for the same period in 2018.

For the quarter ended December 31, 2019, the annualized rate of return on average assets and average shareholders’ equity was 0.88% and 9.06%, respectively, compared with 0.78%% and 8.29%, respectively, for the fourth quarter 2018.  For the twelve months ended December 31, 2019, the return on average assets and average shareholders’ equity was 1.02% and 10.58%, respectively, compared with 0.96% and 10.47%, respectively, for the same period in 2018.

QNB is pleased to report increased net income and earnings per share for the quarter, and record net income and earnings per share for the year ended December 31, 2019.  Loan, deposit and household growth remained strong throughout 2019.  In addition to opening a 12th location -- our Allentown Office late in the third quarter -- in December we relocated our full-service branch within the Pennsburg Square Shopping Center to a free-standing pad site in the same center. Our newly named Upper Perkiomen Valley Office provides improved visibility and convenience of access to customers.

Net Interest Income and Net Interest Margin

Net interest income for the quarter and twelve months ended December 31, 2019 totaled $9,165,000 and $36,294,000, respectively, an increase of $345,000 and $1,279,000, respectively, from the same periods in 2018. The net interest margin for the fourth quarter of 2019 and 2018 was 3.11%.  Net interest margin for the twelve months ended December 31, 2019 was 3.16%, an increase of three basis point compared to the same period in 2018.  The yield on average earning assets increased one basis point to 3.92% for the fourth quarter of 2019, compared with the fourth quarter of 2018.  For the twelve months ended December 31, 2019, the yield on average earning assets was 4.02%, compared with 3.85% for the same period in 2018.   The cost of interest-bearing liabilities increased to 1.02% and 1.07% for the quarter and twelve months ended December 31, 2019, respectively, compared with 1.01% and 0.88% for the same periods in 2018.

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

QNB recorded a $375,000 provision for loan losses in the fourth quarter of 2019, compared with $187,000 for the same period in 2018.   For the twelve months ended December 31, 2019 and 2018, QNB recorded $1,300,000 and $1,130,000, respectively, in provision for loan losses.  QNB's allowance for loan losses of $9,887,000 represents 1.20% of loans receivable at December 31, 2019 compared to $8,834,000, or 1.12% of loans receivable at December 31, 2018.  Net loan charge-offs were $247,000 for 2019, or 0.03% of total average loans, compared with net charge-offs of $137,000, or 0.02% of total average loans, for the same periods in 2018.

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 $16,464,000, or 2.01% of loans receivable at December 31, 2019, compared with $9,638,000, or 1.23% of loans receivable at December 31, 2018.  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, 2019, $7,245,000, or approximately 62% of the loans classified as non-accrual are current or past due less than 30 days.  At December 31, 2019 commercial substandard or doubtful loans totaled $15,922,000, compared with $18,339,000 reported at December 31, 2018.   

Non-Interest Income

Total non-interest income was $2,210,000 for the fourth quarter of 2019, an increase of $2,066,000 compared with the same period in 2018, due largely to combined realized and unrealized net gains on investment securities totaling $696,000 in 2019 compared to a loss of $1,252,000 in 2018.  Non-interest income for the twelve months ended December 31, 2019 was $8,317,000, an increase of $3,425,000, or 70.0%, compared to the same period in 2018, of which $2,937,000 is attributable to increased realized and unrealized investment gains.  ATM and debit card income increased $46,000 due to increased card activity when comparing the two quarterly periods.  Retail brokerage income increased $75,000 due to increased penetration due to increased assets under management.  Net gain on sale of loans increased $60,000, due to increased mortgage loan originations and secondary market sales, the result of lower interest rates in the fourth quarter 2019.  Fees for services to customers declined $7,000 during fourth quarter 2019 compared to fourth quarter 2018, due to less overdraft income and service charges on deposits accounts.  Other non-interest income declined $56,000, due primarily to a reduction in income for sale of checks, and disposal of fixed assets related to the relocation of the Pennsburg location.

Non-Interest Expense

Total non-interest expense was $7,632,000 for the fourth quarter of 2019, increasing $843,000, or 12.4%, from $6,789,000 for the same period in 2018.  For the twelve months ended December 31, 2019, non-interest expense increased $2,219,000, or 8.6%, from the same period in 2018.  Salaries and benefits expense increased $625,000, or 16.3%, to $4,452,000 when comparing the two quarters.  Salary expense and related payroll taxes increased $510,000 to $3,759,000, or 15.7%, during the fourth quarter of 2019 compared to the same period in 2018, due, in part, to the addition of branch staff in our new Allentown location and increased expense for incentive compensation.  Benefits expense increased $115,000, or 20.1%, due primarily to medical insurance claims reimbursements and increased retirement plan costs, when comparing the two periods.  

Net occupancy and furniture and equipment expense increased $186,000, or 17.4%, to $1,254,000 for the fourth quarter 2019, due primarily to increased building and furniture depreciation expense, increased rent expense and computer software amortization and maintenance expense.  Other non-interest expense increased $32,000 when comparing the fourth quarter of 2019 with the fourth quarter of 2018, with increased marketing, state taxes, travel and entertainment, check charge-offs and check card expenses offset in part by decreased FDIC insurance costs.  During the fourth quarter 2019, we received a “small bank assessment credit”, applicable for our third quarter FDIC insurance assessment in the amount of $136,000.  The FDIC insurance fund was determined to have a surplus, and small institutions were eligible for a payment credit.

Provision for income taxes increased $962,000 in the fourth quarter 2019, compared with the same period in 2018.   During the fourth quarter of 2018, the Company recorded a $418,000 income tax benefit to tax provision.  This one-time tax benefit was related to an elected change in accounting for deferred loan origination fees and nonaccrual interest income, taking advantage of the reduction in the federal tax rate from 34% to 21%, resulting from the Tax Cuts and Jobs Act, effective January 1, 2018. 

The effective tax rates for the quarter and twelve months ended December 31, 2019 were 18.5% and 18.7%, respectively.  This compares with effective tax rates for the same periods in 2018 of -17.1% and 12.1%, 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, 2018. 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 Customers Save on TurboTax

Quakertown, PA (January 23, 2020) – 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 $15 on TurboTax federal products. In addition, Intuit offers a TurboTax Free Edition for basic tax returns and free e-filing on all federal and state products. With TurboTax, taxpayers can easily prepare and file federal and state income tax returns online. TurboTax guarantees 100% accurate calculations and your maximum refund, so you can be confident your taxes are done right.

TurboTax can be accessed from QNB Bank’s website and is available to use through October 15, 2020, the last filing date for tax year 2019.

QNB Bank currently operates twelve branches in Bucks, Montgomery and Lehigh Counties and offers commercial and retail banking in the communities it serves.

Intuit and TurboTax are registered trademarks of Intuit Inc.

QNB Bank Opens New Upper Perkiomen Valley Office

Pennsburg, PA (December 13, 2019) –QNB Bank officially opened the doors of its new Upper Perkiomen Valley Office on Monday, December 9th. Located at 410 Pottstown Avenue, the new branch is right next to where QNB’s old Pennsburg Office used to reside in the Pennsburg Square Shopping Center. The Upper Perkiomen Valley Office offers full-service retail banking and features convenient services including full cash handling via automated cash recyclers, a coin machine, instant issue check cards, and a 24-hour ATM and night depository. The new branch also features more space, better parking, and improved functionality.

The Grand Opening and Ribbon Cutting Ceremony for QNB’s new Upper Perkiomen Valley Office is scheduled for Wednesday, January 29th.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.2 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

QNB Corp. Declares Dividend

Quakertown, PA (27 November 2019) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on November 26, 2019 declared a quarterly cash dividend of $0.33 per share. The cash dividend is payable on December 27, 2019 to shareholders of record December 13, 2019.

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 web site at QNBbank.com.

QNB Bank Unveils 2020 Collector Calendar

Quakertown, PA (November 18, 2019) – Another New Year is just around the corner and with that comes the annual QNB Student Art Collector Calendar. Like years past, an art contest was held, open to high school students from surrounding districts. This year’s contest received a total of 75 entries from 7 different schools. The 2020 “Still Life” Calendar is available now at all QNB Bank locations. Stop in and pick one up for free while supplies last!

QNB Bank Celebrates Allentown Office Grand Opening

Allentown, PA (October 30, 2019) – The Grand Opening and Ribbon Cutting Celebration for QNB Bank’s new Allentown Office took place on October 22nd. Located at 535 North 19th Street, the new space features full-service retail banking, as well as a full-time staff of commercial bankers ready to assist local businesses with all their banking needs. The branch also features full cash handling via automated cash recyclers, a coin machine, instant issue check cards, and a 24-hour ATM and night depository.

The celebration continues at the new Allentown Office – stop by the office through November 22nd to enter a weekly giveaway of gift cards to your choice of any West End Alliance area merchants, as well as other special offers.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.2 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

QNB Corp. Reports Earnings for Third Quarter 2019

Quakertown, PA (October 25, 2019) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the third quarter of 2019 of $3,090,000, or $0.88 per share on a diluted basis. This compares to net income of $3,211,000, or $0.92 per share on a diluted basis, for the same period in 2018.  For the nine months ended September 30, 2019, QNB reported net income of $9,612,000, or $2.75 per share on a diluted basis. This compares to net income of $9,008,000, or $2.59 per share on a diluted basis, reported for the same period in 2018.

For the quarter ended September 30, 2019, the annualized rate of return on average assets and average shareholders’ equity was 1.00% and 10.39%, respectively, compared with 1.07% and 11.64%, respectively, for the third quarter 2018.  For the nine months ended September 30, 2019, the annualized rate of return on average assets and average shareholders’ equity was 1.07% and 11.11%, respectively, compared with 1.03% and 11.23%, respectively, for the same period in 2018.

“QNB is pleased to report increased net income and earnings per share for the nine-month period ending September 30, 2019,” said David W. Freeman, President and Chief Executive Officer.  “During this time, the Bank has experienced strong loan, deposit, and household growth.  In August, we opened a full-service branch in Allentown.  We are pleased to establish a physical presence in Allentown, already serving the Lehigh Valley from our Wescosville and Coopersburg locations.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter and nine months ended September 30, 2019 totaled $9,182,000 and $27,129,000, respectively, an increase of $478,000 and $934,000, respectively, from the same periods in 2018. The net interest margin for the third quarter of 2019 was 3.14% compared with 3.06% for the third quarter of 2018.  Net interest margin for the nine months ended September 30, 2019 was 3.17%, an increase of three basis points compared to the same period in 2018.  The yield on average earning assets increased 19 basis points to 4.02% for the third quarter of 2019, compared with the third quarter of 2018.  For the nine months ended September 30, 2019, the yield on average earning assets was 4.05%, compared with 3.82% for the same period in 2018.   The cost of interest-bearing liabilities increased to 1.10% and 1.09% for the quarter and nine months ended September 30, 2019, respectively, compared with 0.93% and 0.83% for the same periods in 2018.

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

QNB recorded a $550,000 provision for loan losses in the third quarter of 2019, compared with $568,000 for the same period in 2018.   For the nine months ended September 30, 2019 and 2018, QNB recorded $925,000 and $943,000, respectively, in provision for loan losses.  QNB's allowance for loan losses of $9,494,000 represents 1.14% of loans receivable at September 30, 2019 compared to $8,834,000, or 1.12% of loans receivable at December 31, 2018, and $8,645,000, or 1.10% of loans receivable at September 30, 2018.  Net loan charge-offs were $265,000 for the first nine months of 2019, or 0.04% annualized of total average loans, compared with net charge-offs of $139,000, or 0.02% annualized of total average loans, for the same period in 2018.

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 $14,088,000, or 1.70% of loans receivable at September 30, 2019, compared with $9,638,000, or 1.23% of loans receivable at December 31, 2018, and $10,890,000, or 1.39% of loans receivable at September 30, 2018.  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 September 30, 2019, $7,507,000, or approximately 60% of the loans classified as non-accrual are current or past due less than 30 days.  At September 30, 2019 commercial substandard or doubtful loans totaled $16,985,000, compared with $18,339,000 reported at December 31, 2018 and $20,103,000 reported at September 30, 2018.  The change from year-end 2018 reflects an upgrade to pass ratings due to improved financial performance of two large commercial relationships, a payoff of a classified loan due to the sale of the collateral by the borrower during the second quarter of 2019, and a large commercial relationship downgrade during the third quarter 2019.

Non-Interest Income

Total non-interest income was $2,144,000 for the third quarter of 2019, a decrease of $83,000, or 3.7%, compared with the same period in 2018, due to combined realized and unrealized net gains on investment securities totaling $668,000 in 2019 compared to $912,000 in 2018.  Non-interest income for the nine months ended September 30, 2019 was $6,107,000, an increase of $1,359,000, or 28.6%, compared to the same period in 2018.  All other categories of fee income increased during the third quarter 2019, when compared to the third quarter 2018.

Non-Interest Expense

Total non-interest expense was $6,955,000 for the third quarter of 2019, increasing $570,000, or 8.9%, from $6,385,000 for the same period in 2018.  For the nine months ended September 30, 2019, non-interest expense increased $1,376,000, or 7.2%, from the same period in 2018.  Salaries and benefits expense increased $451,000, or 12.5%, to $4,063,000 when comparing the two quarters.  Salary expense and related payroll taxes increased $339,000 to $3,508,000, or 9.6%, during the third quarter of 2019 compared to the same period in 2018, due, in part, to the addition of branch staff in our new Allentown location.  Benefits expense increased $112,000, or 25.3%, due primarily to medical insurance claims reimbursements and increased retirement plan costs, when comparing the two periods. 

Net occupancy and furniture and equipment expense increased $123,000, or 12.3%, to $1,123,000 for the third quarter 2019 compared with the same period in 2018, due primarily to increased building and furniture depreciation expense, increased rent expense and computer software amortization and maintenance expense.  Other non-interest expense decreased $4,000 when comparing the third quarter of 2019 with the third quarter of 2018, with increased marketing, travel and entertainment and check card expenses offset by decreased FDIC insurance costs.  During the third quarter 2019, we received a “small bank assessment credit”, applicable for our second quarter FDIC insurance assessment in the amount of $135,000.  The FDIC insurance fund was determined to be over-funded, and small institutions were eligible for a payment credit.

Provision for income taxes decreased $36,000, or 4.7%, to $731,000 in the third quarter 2019, due to reduced taxable income when comparing the two periods.  The effective tax rates for the quarter and nine months ended September 30, 2019 were 19.1% and 18.8%, respectively.  This compares with effective tax rates for the same periods in 2018 of 19.3% and 17.4%, respectively.  The increase in the tax rates is due to the proportional increase of taxable income, a result of reduced municipal bonds and increased securities realized and unrealized gains, when comparing the two periods.

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, 2018. 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 Mortgage Officer Connie Lindenmuth Earns Five Star Mortgage Professional Award

Quakertown, PA (October 8, 2019) – For her sixth year now, Connie Lindenmuth of QNB Bank has received the Five Star Mortgage Professional Award. The Award recognizes professionals in the mortgage industry who provide quality services to their clients and is presented throughout the United States.

Market research is conducted to determine the recipients of the Five Star Professionals Award. It is designed to assist consumers in selecting a professional that other consumers have indicated as providing exceptional service. Connie was formally recognized for her achievement in the September issue of Philadelphia Magazine.

QNB Bank Promotes Wendy Awckland to Vice President, Branch Manager at Dublin Village Office

Quakertown, PA (September 3, 2019) – Wendy Awckland was recently named Vice President, Branch Manager at QNB Bank’s Dublin Village Office. In her role, Wendy 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.

Wendy has been in banking for over 23 years. She graduated from Upper Perkiomen High School and attended Western Montgomery VoTech where she studied Finance and Accounting. Wendy also earned 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 community where she serves as Secretary for Kiwanis of Upper Bucks and Board Member for Discover Dublin while also representing QNB at various Pearl S. Buck events.

QNB Bank Donates $3,250 to Allentown Public Library

Quakertown, PA (August 30, 2019) – 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 9 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 season, the team hit 130 doubles for a total Bank contribution of $3,250! This year’s proud recipient was the Allentown Public Library. Since the program’s inception in 2011, QNB has donated $33,950 to local libraries.

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