Current Press Releases

Quakertown, PA (December 29, 2020) – Melissa Brindley was recently named Vice President, Branch Manager at QNB Bank’s Coopersburg Office. In her role, Melissa 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 Coopersburg market.

Melissa has been in banking for 13 years, previously serving as Vice President, Branch Manager at QNB’s Colmar Office. She earned her associate degree from Bucks County Community College and has completed several Pennsylvania Bankers Association courses.

Melissa lives in Perkasie with her family. As an active member in the community, she serves as Co-Chair of the Young Professionals Council for the Greater Montgomery County Chamber of Commerce. Melissa also enjoys participating in and supporting various local community events.

Quakertown, PA (November 24, 2020) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on November 24, 2020 declared a quarterly cash dividend of $0.34 per share. The cash dividend is payable on December 24, 2020 to shareholders of record December 10, 2020.

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 (November 10, 2020) – 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 33 entries from 9 different schools. The 2021 “Flowers, Plants & Trees” Calendar is available now at all QNB Bank locations. Stop in and pick one up for free while supplies last!

Quakertown, PA (October 27, 2020) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank, reported net income for the third quarter of 2020 of $3,778,000, or $1.07 per share on a diluted basis, compared to net income of $3,090,000, or $0.88 per share on a diluted basis, for the same period in 2019. For the nine months ended September 30, 2020, QNB reported net income of $7,932,000, or $2.25 per share on a diluted basis. This compares to net income of $9,612,000, or $2.75 per share on a diluted basis, reported for the same period in 2019.

The increase in quarterly net income and earnings per share, when comparing the three months ended September 30, 2020 with the same period in 2019 is due primarily to an increased gain on sale of mortgage loans originated, and improvement in the fair value of the equity securities held by QNB Corp, our bank holding company. The decrease in net income and earnings per share when comparing the nine-month periods is due primarily to the decrease in the fair value of the equity securities held by QNB Corp. 

The following table presents disaggregated net income: 

Total assets as of September 30, 2020 were $1,417,073,000 compared with $1,225,023,000 at December 31, 2019.  Loans receivable at September 30, 2020 were $887,792,000 compared with $820,616,000 at December 31, 2019, an increase of $67,176,000, or 8.2%.  QNB Bank originated $82,475,000 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 decreased $12,891,000, or 1.6% since year-end 2019.  Total deposits at September 30, 2020 were $1,214,463,000, increasing $176,603,000, or 17.0%, 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 Bank continues to adapt to the current environment. Since June 5, we are operating our branch locations at full capacity, while adhering to health department guidance.  Earnings and loan quality remain strong in this difficult operating environment.  Household and deposit growth remain strong as well, and we have had record year with mortgage loan volume – both refinance and purchase.” stated David W. Freeman, President and Chief Executive Officer. 

Net Interest Income and Net Interest Margin

Net interest income for the quarter and nine months ended September 30, 2020 totaled $9,330,000 and $27,727,000 respectively, an increase of $148,000 and $598,000, respectively from the same periods in 2019. Net interest margin was 2.78% for the third quarter of 2020 and 3.14% for the same period in 2019.  Net interest margin was 2.96% for the nine months ended September 30, 2020, compared with 3.17% for the same period in 2019.   The increase in net interest income is due to the increase in average earning assets, including loans, investments and interest-bearing cash in banks, for the three and nine-month periods ending September 30, 2020, compared with the same periods in 2019. 

The yield on earning assets was 3.20% for the third quarter 2020, a decrease of 82 basis points from 4.02% in the third quarter of 2019. For the nine-month period ended September 30, 2020, yield on earning assets was 3.50%, compared with 4.05% for the same period in 2019.  The cost of interest-bearing liabilities decreased 57 basis points to 0.53% for the quarter and 41 basis points to 0.68% for the nine months ended September 30, 2020, compared with the same period 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 third quarter of 2020 compared with $550,000 in the third quarter 2019. QNB's allowance for loan losses of $10,765,000 represents 1.21% of loans receivable at September 30, 2020 compared to $9,887,000, or 1.20% of loans receivable at December 31, 2019, and $9,494,000, or 1.14% of loans receivable at September 30, 2019. Excluding the PPP loans, which are expected to be fully forgiven within the next three to eighteen months, and are 100% guaranteed by the US Treasury, the allowance represents 1.33% of loans receivable. Net loan recoveries were $51,000 and net loan charge offs were $122,000 for the quarter and nine months ended September 30, 2020, respectively, compared with charge offs of $220,000 and $265,000 for the same periods in 2019, respectively. Annualized net loan recoveries/charge-offs for the quarter and nine months ended September 30, 2020 were -0.02% and 0.02% of average loans receivable, respectively.

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 $14,666,000, or 1.65% of loans receivable at September 30, 2020, compared with $16,464,000, or 2.01% of loans receivable at December 31, 2019, and $14,088,000, or 1.70% of loans receivable at September 30, 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 September 30, 2020, $4,961,000, or approximately 50% of the loans classified as non-accrual are current or past due less than 30 days.  Commercial loans classified as substandard or doubtful totaled $16,716,000 at September 30, 2020, an increase of $794,000, or 5.0%, from the $15,922,000 reported at December 31, 2019, and a decrease of $269,000, or 1.6%, from the $16,985,000 reported at September 30, 2019.  The increase in loans classified as substandard is due to the downgrade of a large credit in third quarter 2020, net of repayments of existing substandard loans since September 30, 2019.

Non-Interest Income

Total non-interest income was $2,809,000 for the third quarter of 2020, an increase of $665,000, or 31.0%, compared with the same period in 2019, due primarily to a $526,000 increase in net gains on sale of loans, the result of increased sales of mortgage loans originated, stemming from the low interest rate environment, when comparing the two periods. For the three months ended September 30, 2020, QNB sold $11,563,000 in mortgage loans, compared with $2,179,000 million for the same period in 2019. 

Combined  realized and unrealized gains of the equity securities portfolio was $810,000 for the quarter and $796,000 loss for the nine months ended September 30, 2020.  There was a small gain on sale of debt securities for the same periods.  The equities portfolio comprises blue-chip large-capitalized stocks, providing a taxable equivalent dividend yield of 2.97%.   The performance of the portfolio during the quarter and nine months ended September 30, 2020 is commensurate with the overall performance of the U.S. stock market.  

ATM and debit card income increased $65,000, to $598,000 when comparing the two periods.  Other income increased for the period due to increased fair value of mortgage servicing rights and title company income.  Fees for services to customers and retail brokerage and advisory  income decreased $133,000 and $4,000, respectively, when comparing the two periods.  The reduction in fees for services to customers is due primarily to a decrease in overdraft items when comparing the periods.  

For the nine months ended September 30, 2020, non-interest income was $4,055,000, a decrease of $2,052,000, or 33.6%, compared to the same period in 2019, primarily due to combined decrease in net realized gains and unrealized change in fair value of the equities securities totaling  $2,661,000, and a decrease in fees for services to customers of $295,000, for the same reasons as described above.  The estimated cumulative contribution (realized and unrealized net gains, plus dividends) of the equities portfolio to diluted earnings per share from January 1, 2008 through September 30, 2020 is $1.50.

Excluding the realized gain and change in fair value of equities, non-interest income increased $609,000, when comparing the two periods, for the same reasons those described in the quarterly results.

Non-Interest Expense

Total non-interest expense was $7,197,000 for the third quarter of 2020, increasing $242,000, or 3.5% from $6,955,000  for the same period in 2019.  Salaries and benefits expense increased $119,000, or 2.9%, to $4,182,000 when comparing the two quarters.  Salary expense and related payroll taxes decreased $42,000, to $3,467,000 during the third quarter 2020 compared to the same period in 2019 due to a reduction in bonus accrual and increased loan origination deferred costs resulting from the mortgage loan originations of $71,000 and $88,000, respectively.  Employee salaries increased $114,000, or 3.7%, when comparing the periods.     Medical premiums increased $149,000, or 36.7%, due to increased medical claims when comparing the two periods.  Net occupancy and furniture and equipment expense increased $116,000, or 10.3%, to $1,239,000 for the third quarter 2020, due primarily to increased depreciation expense, building maintenance and combined amortization of software, software maintenance and computer backup expense of $23,000, $39,000, and $58,000 respectively, offset in part by decreased equipment maintenance of $8,000, when comparing the two periods.  QNB’s new Allentown branch opened late in the third quarter and the Upper Perkiomen branch had not yet relocated until fourth quarter 2019. 

Other non-interest expense increased $7,000 when comparing third quarter of 2020 and 2019 with decreased marketing, postage, supplies, telecommunication, regulatory assessment and travel and entertainment expenses of $130,000, $8,000, $10,000, $12,000, $20,000 and $54,000, respectively, offset in part by increased FDIC insurance expense and state tax of $140,000 and $72,000, respectively.  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 nine months ended September 30, 2020, non-interest expense was $21,344,000, an increase of $872,000, or 4.3%, compared to the same period in 2019.  Salary and benefits increased $605,000, or 5.2%, to $12,239,000 and net occupancy and furniture and equipment increased $335,000, or 10.2% to $3,617,000 for the same reasons as the quarterly increase.  FDIC insurance and state taxes also increased $153,000 and $96,000  when comparing the two periods, for the same reasons as the quarterly increase.

Provision for income taxes increased 25%, to $914,000 in the third quarter 2020 due to increased pre-tax income and a higher effective tax rate,  compared with the same period in 2019.  The effective tax rates for the quarter and nine months ended September 30, 2020  were 19.5% and 16.0%, respectively, compared with 19.1% and 18.8%, respectively, for the same periods in 2019.  The variance in effective tax rates is due to the decrease in proportional share of taxable versus non-taxable income and the change in fair value of the equities investments during the quarter and nine months ended September 30, 2020, compared with the same period in 2019.

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 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 (October 27, 2020) – For her seventh year now, Connie Lindenmuth of QNB Bank has received the Five Star Mortgage Professional Award. Presented throughout the United States, the Award recognizes professionals in the mortgage industry who demonstrate professional excellence and provide quality services to their clients.

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.

Quakertown, PA (October 13, 2020) – Chris Cattie, Executive Vice President/Chief Information Technology Officer, of QNB Bank in Quakertown, has been appointed to the Pennsylvania Bankers Association’s (PA Bankers’) Government Relations Policy Committee. The committee is responsible for the overall state legislative program of the association and determines policy positions and priorities on pending or proposed state legislation.

Chris Cattie will serve a two-year term, starting immediately, coinciding with the legislative session. Chris formerly was a member of the PA Bankers’ Technology Committee. He has over 24 years of banking and technology experience. He earned a Bachelor of Science from Lock Haven University for Accounting and Management. Chris continued his education at LaSalle University where he received his MBA. Outside of banking, Chris is involved with the Eastern Center for Arts and Technology, Upper Moreland Township’s Parks and Recreation Advisory Committee, and the Washington Crossing Council, BSA.

Quakertown, PA (September 28, 2020) – 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 10 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. Despite the 2020 season being cancelled, the IronPigs and QNB kept the campaign alive, donating an average season amount for a total Bank contribution of $4,500! This year’s proud recipient was the Allentown Public Library. Since the program’s inception in 2011, QNB has donated $38,550 to local libraries.

Quakertown, PA (August 25, 2020) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on August 25, 2020 declared a quarterly cash dividend of $0.34 per share. The cash dividend is payable on September 25, 2020 to shareholders of record September 11, 2020.

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, (July 28, 2020) QNB Corp. (the "Company" or "QNB") (OTC Bulletin Board: QNBC), the parent company of QNB Bank, reported net income for the second quarter of 2020 of $3,934,000, or $1.11 per share on a diluted basis, compared to net income of $3,143,000, or $0.90 per share on a diluted basis, for the same period in 2019.  For the six months ended June 30, 2020, QNB reported net income of $4,154,000, or $1.18 per share on a diluted basis. This compares to net income of $6,522,000, or $1.86 per share on a diluted basis, reported for the same period in 2019.

The increase in quarterly net income and earnings per share, when comparing the three months ended June 30, 2020 with the same period in 2019 is due primarily to an increase in the fair value of the equity securities held by QNB Corp, our bank holding company.  The decrease in net income and earnings per share when comparing the six-month periods is due primarily to the decrease in the fair value of the equity securities held by QNB Corp. 

The following table presents disaggregated net income: 

Total assets as of June 30, 2020 were $1,390,479,000 compared with $1,225,023,000 at December 31, 2019. Loans receivable at June 30, 2020 were $878,620,000 compared with $820,616,000 at December 31, 2019, an increase of $58,004,000, or 7.1%.  To date, QNB Bank originated $81,098,478 in the Small Business Administration's Paycheck Protection Program ("PPP") loans, enabling 643 businesses to maintain their payrolls and stay in operation.  Excluding the PPP loans net of deferred fees, loans receivable would have decreased $19,880,000, or 2.4% since year-end 2019.  Total deposits at June 30, 2020 were $1,183,188,000, increasing $145,328,000, or 14.0%, 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 Bank maintained operations, serving customers at our branch drive-ups and by appointment to ensure there was no interruption in service during Pennsylvania's mandated shutdown of non-essential businesses during the quarter.  We reopened all branches to lobby traffic on June 5," stated David W. Freeman, President and Chief Executive Officer.  "In addition to our PPP loan volume, we granted 384 requests from business and personal customers for temporary, COVID-related loan payment relief, and experienced record mortgage loan originations, helping our customers take advantage of historic low rates to reduce their borrowing costs for their homes."

Net Interest Income and Net Interest Margin

Net interest income for the quarter and six months ended June 30, 2020 totaled $9,234,000 and $18,397,000 respectively, an increase of $123,000 and $450,000, respectively from the same periods in 2019. Net interest margin was 2.95% for the second quarter of 2020 and 3.20% for the same period in 2019.  Net interest margin was 3.06% for the six months ended June 30, 2020, compared with 3.19% for the same period in 2019.

The yield on earning assets was 3.42% for the second quarter 2020, a decrease of 68 basis points from 4.10% in the second quarter of 2019. For the six-month period ended June 30, 2020, yield on earning assets was 3.66%, compared with 4.07% for the same period in 2019.  The cost of interest-bearing liabilities decreased 51 basis points to 0.60% for the quarter and 33 basis points to 0.76% for the six months ended June 30, 2020, compared with the same period in 2019.

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

QNB recorded a $250,000 provision for loan losses in the second quarter of 2020 compared with $150,000 in the second quarter 2019.  QNB's allowance for loan losses of $10,464,000 represents 1.19% of loans receivable at June 30, 2020 compared to $9,887,000, or 1.20% of loans receivable at December 31, 2019, and $9,164,000, or 1.12% of loans receivable at June 30, 2019.  Excluding the PPP loans, which are expected to be fully forgiven within the next six to twelve months, and are 100% guaranteed by the US Treasury, the allowance represents 1.31% of loans receivable.  Net loan charge offs were $120,000 and $173,000 for the quarter and six months ended June 30, 2020, respectively, compared with $1,000 and $45,000 for the same periods in 2019, respectively.   Annualized net loan charge-offs for the quarter and six months ended June 30, 2020 were .06% and 0.04% of average loans receivable, respectively.

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 $15,060,000, or 1.71% of loans receivable at June 30, 2020, compared with $16,464,000, or 2.01% of loans receivable at December 31, 2019, and $9,677,000, or 1.18% of loans receivable at June 30, 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 June 30, 2020, $7,821,000, or approximately 76% of the loans classified as non-accrual are current or past due less than 30 days.  Commercial loans classified as substandard or doubtful loans totaled $14,268,000 at June 30, 2020, a decrease of $1,654,000, or 10.4%, from the $15,922,000 reported at December 31, 2019, and an increase of $1,696,000, or 13.5%, from the $12,572,000 reported at June 30, 2019. 

Non-Interest Income

Total non-interest income was $2,817,000 for the second quarter of 2020, an increase of $1,163,000, or 70.3%, compared with the same period in 2019, due primarily to a combined $1,156,000 realized and unrealized gain of the equity securities portfolio, when comparing the two periods. The equities portfolio comprises blue-chip large-capitalized stocks, providing a taxable equivalent dividend yield of 3.25%.   The performance of the portfolio during the quarter and six months ended June 30, 2020 is commensurate with the overall performance of the U.S. stock market.

Increases in non-interest income for the quarter ended June 30, 2020 comprise; net gain on the sale of loans and retail brokerage and advisory income, which increased $337,000 and $36,000, respectively, when compared to the same period in 2019.  Fees for services to customers and other income decreased $180,000 and $132,000, respectively, when comparing the two periods.  The reduction in fees for services to customers is due primarily to a decrease in overdraft items when comparing the periods.  Other income decreases for the period are due to a $58,000 gain on sale of OREO realized in 2019, reduced fair value of mortgage servicing rights, and reduced letter of credit fees.

For the six months ended June 30, 2020, non-interest income was $1,246,000, a decrease of $2,717,000, or 68.6%, compared to the same period in 2019, primarily due to combined net realized gains and unrealized change in fair value of the equities securities totaling  $2,766,000.  The estimated cumulative contribution (realized and unrealized net gains, plus dividends) of the equities portfolio to diluted earnings per share from January 1, 2008 through June 30, 2020 is $1.32.

Excluding the realized gain and change in fair value of equities, net interest income increased $88,000, when comparing the two periods, for the same reasons those described in the quarterly results. 

Non-Interest Expense

Total non-interest expense was $6,869,000 for the second quarter of 2020, increasing $76,000, or 1.1% from $6,793,000  for the same period in 2019.  Salaries and benefits expense increased $195,000, or 5.1%, to $3,985,000 when comparing the two quarters.  Salary expense and related payroll taxes decreased $82,000, to $3,195,000 during the second quarter 2020 compared to the same period in 2019 due to a reduction in bonus accrual and increased loan origination deferred costs resulting from the PPP loan originations of $108,000 and $217,000, respectively.  Employee salaries increased $239,000, or 8.2%, when comparing the periods.     Medical premiums increased $296,000, or 88.3%, due to increased medical claims when comparing the two periods.  Net occupancy and furniture and equipment expense increased $83,000, or 7.6%, to $1,180,000 for the second quarter 2020, due primarily to increased depreciation expense and combined amortization of software, software maintenance and computer backup expense of $55,000 and $58,000, respectively, offset in part by decreased equipment and building maintenance of $20,000 and $15,000, respectively, when comparing the two periods.  QNB's new Allentown branch was not opened until third quarter and the Upper Perkiomen branch had not yet relocated until fourth quarter 2019. 

Other non-interest expense decreased $202,000, or 10.6%, when comparing second quarter 2020 with decreased marketing, state tax and travel and entertainment expenses of $108,000, $48,000, and $91,000, respectively, offset in part by increased supplies expense and  third-party services of $33,000 and $57,000, respectively.  Marketing and travel and entertainment expense reductions are due to cancellation of events, seminars and travel due the COVID-19 pandemic.  Decreased state taxes are due to the receipt of shares tax credits in the second quarter of 2020 compared to 2019.  Supplies expense increased due to required cleaning supplies, signage, personal protective equipment and plexiglass shields needed for customers and staff in response to the pandemic.

For the six months ended June 30, 2020, non-interest expense was $14,147,000, an increase of $630,000, or 4.7%, compared to the same period in 2019.

Provision for income taxes increased 47.0%, to $998,000 in the second quarter 2020 due to increased pre-tax income and a higher effective tax rate,  compared with the same period in 2019.  The effective tax rates for the quarter and six months ended June 30, 2020  were 20.2% and 12.5%, respectively, compared with 17.8% and 18.7%, respectively, for the same periods in 2019.  The variance in effective tax rates is due to the decrease in proportional share of taxable versus non-taxable income and the change in fair value of the equities investments during the quarter and six months ended June 30, 2020, compared with the same period in 2019.

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 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 | June 24, 2020 – This year, QNB Bank is celebrating its 143^rd anniversary as “Your Community Bank.” Founders Day is the Bank’s tradition of thanking the community for its patronage and support. Unfortunately, due to the ongoing health and public safety concerns brought about by the COVID-19 pandemic, this year’s annual Founders Day band concert and community party scheduled for Wednesday, July 15^th has been cancelled.

QNB will still celebrate, in a socially distanced fashion, Customer Appreciation Day on Thursday, July 16^th at all branch locations. The celebration will feature giveaways, bagged snacks and bottled water, plus the Kona Ice Food Truck will be serving free Kona water ice at our Downtown Office parking lot from Noon to 2pm on the 16^th and at our Country Square Office parking lot from Noon to 2pm on Friday, July 17^th.

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.