Current Press Releases

Quakertown, PA (April 28, 2021) QNB Bank recently donated $40,000 to local education organizations through the State of Pennsylvania’s Educational Improvement Tax Credit (EITC) program. The program awards tax credits to businesses for contributions to Educational Improvement Organizations. Since 2017, QNB has donated $192,750 through the program.

For 2021, QNB donated to the following 17 organizations: Allentown School District Foundation, Allentown Symphony Association, Big Brothers Big Sisters of Bucks County, Big Brothers Big Sisters of the Lehigh Valley, Boy Scouts of America - Minsi Trails Council, Bucks County Community College Foundation, Camelot for Children, Centennial Education Foundation, Communities in Schools of the Lehigh Valley, Inc., Flint Hill Farm Educational Center, Inc., Lansdale Library Association, Lehigh Carbon Community College Foundation, North Penn School District Educational Foundation, Touchstone Theatre, Upper Perkiomen Education Foundation, Valley Youth House Committee, Inc., and YMCA of Bucks County.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.5 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

Quakertown, PA (April 27, 2021) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank, reported net income for the first quarter of 2021 of $5,050,000, or $1.42 per share on a diluted basis, compared to net income of $220,000, or $0.06 per share on a diluted basis, for the same period in 2020. 

The increase in net income and earnings per share, when comparing the two periods, is due in part to improved performance for QNB Bank and a non-cash increase to non-interest income, a result of improved fair values of the equity securities portfolio held by QNB Corp, our bank holding company.  The following table presents disaggregated net income:

Total assets as of March 31, 2021 were $1,570,519,000 compared with $1,440,229,000 at December 31, 2020.  Loans receivable at March 31, 2021 were $945,645,000 compared with $920,042,000 at December 31, 2020, an increase of $25,603,000, or 2.8%.  Total deposits at March 31, 2021 were $1,341,616,000, increasing $113,549,000, or 9.2%, compared with $1,228,067,000 at December 31, 2020.

“We are pleased to report record net income and earnings per share”, said David W. Freeman, President and CEO.  “Although there is still economic uncertainty and many businesses and households are experiencing difficulty, the local and national management of the crisis and especially the rapid rollout of vaccines provides hope.  Throughout this health and economic crisis, QNB continues to serve our community and we continued to see growth in our households, deposits and loans.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended March 31, 2021 totaled $10,517,000, an increase of $1,354,000 from the same period in 2020. The net interest margin was 3.07% for the first quarter of 2021, declining eleven basis points compared with the 3.18% for the same period in 2020.  The yield on earning assets was 3.41% for the first quarter 2021, a decrease of 51 basis points from 3.92% in the first quarter of 2020.  The cost of interest-bearing liabilities decreased 48 basis points to 0.44% for the first quarter ended March 31, 2021, compared with 0.92% for the same period in 2020.  Net interest income and margin were supported in part by the forgiveness of SBA Paycheck Protection Program loans and the recognition of related fee income.

The decrease in margin is due to repricing loans and prepayment of available for sale investments, and reinvesting in bonds with lower rates, as the general level of interest rates decreased dramatically, starting in February 2020.  In addition to the repricing of the loan and investment portfolio, the decrease in net interest margin is also attributable to the increase in interest-bearing cash as a percentage of earnings assets, when comparing the two periods.

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

QNB recorded a $275,000 provision for loan losses in the first quarter of 2021 compared with $500,000 in the first quarter 2020.  QNB's allowance for loan losses of $11,115,000 represents 1.18% of loans receivable at March 31, 2021 compared to $10,826,000, or 1.18% of loans receivable at December 31, 2020, and $10,334,000, or 1.26% of loans receivable at March 31, 2020. Net loan recoveries were $14,000 for the first quarter of 2021, compared with charge-offs of $53,000, or 0.03%, annualized as a percent of average loans for the first quarter of 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 $13,266,000, or 1.40% of loans receivable at March 31, 2021, compared with $14,109,000, or 1.53% of loans receivable at December 31, 2020, and $15,861,000, or 1.93% of loans receivable at March 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 March 31, 2021, $4,809,000, or approximately 54% of the loans classified as non-accrual are current or past due less than 30 days.    At March 31, 2021, commercial substandard or doubtful loans totaled  $21,935,000, a decrease of $258,000 from the $22,193,000 reported at December 31, 2020 and an increase of $6,762,000, from the $15,173,000 reported at March 31, 2020.

Non-Interest Income

Total non-interest income was $3,404,000 for the first quarter of 2021, an increase of $4,975,000 compared with the same period in 2020.  The unrealized gain in the equities portfolio was $1,096,000 at March 31, 2021, compared with an unrealized loss of $2,940,000 at March 31, 2020.  The equities portfolio comprises blue-chip large-capitalized stocks, providing a taxable equivalent dividend yield of 3.26%.   The performance of the portfolio during both periods is commensurate with the overall performance of the U.S. stock market.  In addition to the improved fair value, the company realized $339,000 in gains on sale from the equities portfolio during the first quarter 2021.  The estimated cumulative contribution (realized and unrealized net gains, plus dividends) of the equities portfolio to earnings per share from January 1, 2011 through March 31, 2021 is $2.14 per share.

Excluding the realized and unrealized gain/(loss) of equities, non-interest income increased $600,000, or 43.8% when comparing the two periods.  Increases in non-interest income comprise; ATM and debit card income, retail brokerage and advisory income, net gain on sale of loans and other income, which increased $105,000, $54,000, $271,000, and $279,000 respectively, in first quarter 2021 compared with the same period in 2020.  ATM and debit card income improved as card-based transactions increased when comparing the two periods.  Brokerage and advisory income increased due to the improved performance of assets under management.  Gain on sale of mortgages reflects the increased refinance and purchase activity when comparing the two periods.  The increased other fee income comprises: a life insurance benefit claim of $193,000 during the first quarter of 2021, increased title insurance income of $37,000, reflecting the increased mortgage activity during the period,  increased merchant income of  $13,000 due to increased transaction volume, additional letter of credit income of $24,000, and increased mortgage servicing fee income of $7,000.

Fees for services to customer decreased $112,000 or 27.3% when comparing the two periods, primarily due to a decrease in overdraft fee income.  The number of overdraft items decreased due to increased average deposit balances in customer accounts, in part due to government payments to consumers and businesses during the pandemic, and lack of discretionary spending opportunities due to government-mandated business operating restrictions, brought on by the coronavirus.

Non-Interest Expense

Total non-interest expense was $7,323,000 for the first quarter of 2021, increasing $45,000, or 0.60% from $7,278,000  for the same period in 2020.  Salaries and benefits expense decreased $55,000, or 1.4%, to $4,017,000 when comparing the two quarters.  Salary expense and related payroll taxes decreased $3,000 to $3,428,000 during the first quarter 2021 compared to the same period in 2020, with increases in salary expense and incentive bonus of $44,000 and $74,000, respectively offset by $122,000 additional deferred compensation related to loan originations.  Medical premiums expense decreased $87,000 when comparing the two periods, due to reduced medical claims.  Net occupancy and furniture and equipment expense increased $90,000, or 7.5%, to $1,288,000 for the first quarter 2021, due primarily to increased building repairs and maintenance expense (additional cleaning and snow removal), and software maintenance of $100,000 and $35,000, respectively, offset in part by reduced leasehold and furniture and fixtures depreciation and equipment maintenance expenses  of $9,000, $28,000, and $15,000, respectively, when comparing the two quarters.  Other non-interest expense increased $10,000, or 0.50%, when comparing first quarter 2021 with first quarter 2020. Increased third party services expense, state taxes, FDIC deposit insurance, check card processing expenses and loan origination expenses of $34,000, $30,000, $34,000, $18,000, and $28,000 we offset in part due to decreased marketing, travel and entertainment, and third party loan processing expenses of $108,000, $33,000, and $10,000, respectively.

Income tax expense was $1,273,000 in the first quarter 2021, compared to a benefit of $406,000 in the first quarter 2020 due to increased pre-tax income.

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.  More information about QNB Corp. and QNB Bank is available at 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 | April 9, 2021 – QNB Bank is seeking artwork for its 2022 Student Art Calendar Contest from high school students (grades 9-12) of all schools in the QNB Bank market area. This will be the 26th installment of the QNB Student Art Collector Calendar.

The theme for this year is “Industry & Invention” 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 our 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, 2021) – Gerry Donlon was recently named Vice President, Director of Information Technology at QNB’s Towne Bank Center. In his role, Gerry is responsible for the efficient and effective operation of the IT Department. His responsibilities include core and item processing, telecommunications, internet and voice banking, operations, and database management.

Gerry has been in banking for 7 years, previously serving as Assistant Vice President, Network Administrator at QNB. He attended Penn State University for Computer Science and is currently pursuing a degree in business management. Gerry is also a Microsoft Certified Solutions Expert, Watchguard Certified Security Professional, and VMware Certified Professional.

Gerry lives in Brodheadsville with his family. As an active member in the community, he enjoys supporting various local community events and is a member of the PA Bankers Information Security and Technology committee.

Quakertown, PA (February 24, 2021) – Karstie Burgess was recently named Assistant Branch Manager at QNB Bank’s Upper Perkiomen Valley Office. In her role, Karstie 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.

Karstie has been in banking for 10 years, previously serving as Financial Services Representative Supervisor at QNB’s Upper Perkiomen Valley Office. She earned her high school diploma at Souderton Area High School and earned her Bachelor of Arts degree from Arcadia University.

As an active member in the community, Karstie enjoys supporting various local community events such as American Cancer Society’s annual Relay for Life fundraiser.

Quakertown, PA (February 23, 2021) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on February 23, 2021 declared a quarterly cash dividend of $0.35 per share. The amount represents a 2.9% increase from the prior quarter. Based upon the closing price of a share as of close of business February 22, 2021, this represents a yield of 4.2%. The cash dividend is payable on March 26, 2021 to shareholders of record March 12, 2021.

“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 2.9%. 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 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.

Quakertown, PA (February 8, 2021) – QNB Bank recently held its annual campaign to raise funds for United Way. Led by Patti Cole, this year’s campaign was very successful, tallying up an impressive $29,673 from employees and an additional $5,934 from the Bank for a total contribution of $35,607.

QNB is a full-service community bank that has provided exceptional personalized banking services to individuals and businesses since 1877. With assets of approximately $1.4 billion, QNB currently operates twelve branches in Bucks, Montgomery and Lehigh Counties. More information about QNB is available at QNBbank.com.

Quakertown, PA (February 4, 2021) – John Ventura was recently named Senior Vice President of Retail Lending, Community Reinvestment Act (CRA) Officer at QNB Bank. In his role, John is responsible for the efficient, effective management of the Retail Lending Department of the Bank, as well as Community Reinvestment and Fair Lending activities.

John has been in banking for 40 years, previously serving as Chief Lending Officer at Gratz Bank. He also served as the Chief Credit and Administrative Officer at South Eastern Economic Development Corporation of Pennsylvania and Executive Vice President/Chief Lending/CRA Officer at First Savings Bank of Perkasie.

John holds a BA (Cum Laude) in Marketing from Alvernia University. He is also a graduate of the American Bankers Association School of Retail Banking, the PA Bankers School of Commercial Lending, and the Cannon Trust School. He holds an American Bankers Association Certificate in Lending Compliance. He has also taken numerous Risk Management Association (RMA) courses as well as Small Business Administration and PA Bankers Association courses.

John is a member of PA Bankers Association Professional Development Policy Committee and is the Director of the PA Bankers Association Advanced School of Banking. He currently serves as Vice Chairman of the Community Lenders CDC located in Souderton.

Quakertown, PA (January 26, 2021) 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 2020 of $4,151,000, or $1.17 per share on a diluted basis. This compares to net income of $2,745,000, or $0.78 per share on a diluted basis, for the same period in 2019.  For the year ended December 31, 2020, QNB reported net income of $12,083,000, or $3.42 per share on a diluted basis. This compares to net income of $12,357,000, or $3.53 per share on a diluted basis, reported for the same period in 2019.

For the quarter ended December 31, 2020, the annualized rate of return on average assets and average shareholders’ equity was 1.16% and 12.95%, respectively, compared with 0.88% and 9.06%, respectively, for the fourth quarter 2019.  For the year ended December 31, 2020, the return on average assets and average shareholders’ equity was 0.90% and 9.76%, respectively, compared with 1.02% and 10.58%, respectively, for the same period in 2019.

The following table presents disaggregated net income: 

Total assets as of December 31, 2020 were $1,440,229,000 compared with $1,225,023,000 at December 31, 2019.  Loans receivable at December 31, 2020 were $920,042,000 compared with $820,616,000 at December 31, 2019, an increase of $99,426,000, or 12.1%.  QNB Bank originated $82,485,000 in the Small Business Administration’s Paycheck Protection Program (“PPP”) loans, enabling 660 businesses to maintain their payrolls and stay in operation.  Excluding the PPP loans net of deferred fees, loans receivable would have increased $28,514,000, or 3.5% since year-end 2019.  Total deposits at December 31, 2020 were $1,228,067,000, increasing $190,207,000, or 18.3%, compared with $1,037,860,000 at December 31, 2019, with households and businesses keeping their deposits in short-term, liquid accounts.  Most of the PPP loans proceeds were deposited to QNB Bank deposit accounts.

“QNB successfully navigated the COVID-19 pandemic during 2020 from the initial shutdown through the latest CDC guideline updates. Our employees tirelessly worked through multiple rounds of PPP funding to help our business customers and our staff continued to serve customers in a safe manner across various channels from our lobbies to online. Despite the decline in economic activity our earnings remained steady and we continued to see solid growth in our households, deposits and loans. The low interest rate environment contributed to record mortgage originations and our online channel usage increased significantly throughout 2020.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter and year ended December 31, 2020 totaled $9,521,000 and $37,248,000, respectively, an increase of $356,000 and $954,000, respectively, from the same periods in 2019. The net interest margin for the fourth quarters of 2020 and 2019 was 2.82% and 3.11%, respectively.  Net interest margin for the years ended December 31, 2020 and 2019 was 2.92% and 3.16%, respectively.  The yield on average earning assets decreased 72 basis point to 3.20% for the fourth quarter of 2020, compared with the fourth quarter of 2019.  For the year ended December 31, 2020, the yield on average earning assets was 3.42%, compared with 4.02% for the same period in 2019.   The cost of interest-bearing liabilities decreased to 0.50% and 0.63% for the quarter and year ended December 31, 2020, respectively, compared with 1.02% and 1.07% for the same periods in 2019

The decrease in margin is due to repricing loans and prepayment of available for sale investments, and reinvesting in bonds with lower rates, as the general level of interest rates has decreased dramatically starting in February 2020.  In addition to the repricing of the loan and investment portfolio, the decrease in net interest margin is also attributable to the increase in interest-bearing cash as a percentage of earning assets, when comparing the two periods.

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

QNB recorded a $250,000  provision for loan losses in the fourth quarter of 2020, compared with $375,000 for the same period in 2019.   For the years ended December 31, 2020 and 2019, QNB recorded $1,250,000 and $1,300,000, respectively, in provision for loan losses.  QNB's allowance for loan losses of $10,826,000  represents 1.18% of loans receivable at December 31, 2020 compared to $9,887,000, or 1.20% of loans receivable at December 31, 2019.  Net loan charge-offs were $311,000 for 2020, or 0.04% of total average loans, compared with net charge-offs of $247,000, or 0.03% of total average loans, for the same periods in 2019.

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 $14,110,000, or 1.53% of loans receivable at December 31, 2020, compared with $16,464,000, or 2.01% of loans receivable at December 31, 2019.  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, 2020, $5,030,000, or approximately 52% of the loans classified as non-accrual are current or past due less than 30 days.  At December 31, 2020 commercial substandard or doubtful loans totaled $22,193,000, compared with $15,922,000 reported at December 31, 2019.   

Non-Interest Income

Total non-interest income was $3,547,000 for the fourth quarter of 2020, an increase of $1,337,000 compared with the same period in 2019, due largely to a $596,000 increase in  unrealized net gains on investment securities to $1,100,000, and increased net gains on sale of loans of $606,000, to $689,000, when comparing the two periods.   

ATM and debit card income increased $45,000, or 8.2% when comparing the fourth quarter 2020 to the same period in 2019, due to increased card activity when comparing the two quarterly periods.  Retail brokerage income increased $17,000 due to increased assets under management.  Other non-interest income increased $104,000;  merchant fee income increased $31,000 (improved revenue sharing arrangement), title insurance income increased $14,000 (increased volume of mortgage originations), letter of credit fees increased $22,000 (increased construction lending), sales of checks to depositors increased $32,000 (instant issue debit card machines from check vendor), and gain on sale of equipment increased $11,000 ($5,000 equipment trade-in value in 2020 versus equipment disposal related to Upper Perkiomen Valley Branch relocation 2019).  Fees for services to customers declined $81,000 during fourth quarter 2020 compared to fourth quarter 2019, due to less overdraft income and service charges on deposits accounts. 

Non-interest income for the year ended December 31, 2020 was $7,602,000, a decrease of $715,000, or 8.6%, compared to the same period in 2019, of which $1,963,000 is attributable to decreased combined realized and unrealized gain on equity securities. This decrease was partially offset by net gain on sale of loans which increased $1,529,000, due to increased mortgage loan originations and secondary market sales, the result of lower interest rates throughout the year.

Non-Interest Expense

Total non-interest expense was $7,611,000 for the fourth quarter of 2020, decreasing $21,000 from $7,632,000 for the same period in 2019.  Salaries and benefits expense decreased $150,000, or 3.4%, to $4,302,000 when comparing the two quarters.  Salary expense and related payroll taxes decreased $93,000 to $3,670,000, or 2.5%, during the fourth quarter of 2020 compared to the same period in 2019, due to decreased incentive compensation and deferred loan origination cost, offset in part by increased employee salary expense.  Benefits expense decreased $56,000, or 8.1%, due primarily to a decrease in medical insurance claims expense., when comparing the two periods. 

Net occupancy and furniture and equipment expense increased $43,000, or 3.4%, to $1,297,000 for the fourth quarter 2020, due primarily to increased building repairs and maintenance and software maintenance and amortization expense, offset in part by decreased building and furniture and fixtures depreciation expense.  Other non-interest expense increased $86,000 when comparing the fourth quarter of 2020 with the fourth quarter of 2019, due primarily to increased FDIC insurance costs offset in part by reduced expense related to charge-off loss, marketing, state taxes, travel and entertainment.  Marketing and travel and entertainment expense reductions are due to cancellation of events, seminars and travel due the COVID-19 pandemic.  Increased FDIC insurance is due to a surplus fund credit received in 2019.  State tax increase is due to the increased shares tax, resulting from increased bond portfolio valuation at the bank in 2020 compared to 2019. 

For the year ended December 31, 2020, non-interest expense increased $851,000, or 3.0%, from the same period in 2019, primarily for the same reasons as detailed in the quarter. 

Provision for income taxes increased $433,000, to $1,056,000 in the fourth quarter 2020, compared with the same period in 2019, due to increased pre-tax income and a higher effective tax rate in 2020.  The effective tax rates for the quarter and year ended December 31, 2020 were 20.3% and 17.5%, respectively.  This compares with effective tax rates for the same periods in 2019 of 18.5% and 18.7%, 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, 2019. 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 (January 7, 2021) – Jackie Thomas was recently named Assistant Vice President, Branch Manager at QNB Bank’s Colmar Office. In her role, Jackie 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 Colmar market.

Jackie has been in banking for 12 years, previously serving as Assistant Branch Manager at QNB’s Coopersburg Office. She earned her high school diploma at Pennridge High School, a Supervisor Certificate from PA Bankers and plans to attend the PA Bankers School of Banking in 2021.

Jackie lives in Quakertown with her family. As an active member in the community, she enjoys supporting various local community events and is a participating member of the Montgomery County Chamber of Commerce.