Current Press Releases
QNB Corp. Reports Increased Earnings for Second Quarter 2016
QUAKERTOWN, PA (July 26, 2016) QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the second quarter of 2016 of $2,098,000, or $0.62 per share on a diluted basis. This compares to net income of $1,934,000, or $0.58 per share on a diluted basis, for the same period in 2015. For the six months ended June 30, 2016, QNB reported net income of $4,363,000, or $1.29 per share on a diluted basis. This compares to net income of $4,070,000, or $1.22 per share on a diluted basis, reported for the same period in 2015.
For the second quarter ended June 30, 2016, the rate of return on average assets and average shareholders’ equity was 0.84% and 9.01%, respectively, compared with 0.81% and 8.83%, respectively, for the second quarter 2015. For six months ended June 30, 2016, the rate of return on average assets and average shareholders’ equity was 0.87% and 9.44%, respectively, compared with 0.85% and 9.41%, respectively, for the same period in 2015.
Total assets as of June 30, 2016 were $1,030,238,000 compared with $1,020,936,000 at December 31, 2015. Loans receivable at June 30, 2016 were $604,478,000 compared with $615,270,000 at December 31, 2015, a decrease of $10,792,000, or 1.8%. Total deposits at June 30, 2016 were $893,285,000 compared with $889,786,000 at December 31, 2015.
“Earnings growth has exceeded our expectations for the first half of the year. In the second quarter, net income increased 8.5% and earnings per share grew 6.9%,” said David W. Freeman, President and Chief Executive Officer. “Household growth reached record levels in June, and we continue to see improvement in asset quality.” Mr. Freeman added, “QNB Financial Services, our wealth management and retail brokerage business expanded assets under management to $86 million in at June 30, 2016, an increase of approximately $16 million from December 31, 2015.”
Net Interest Income and Net Interest Margin
Net interest income for the quarter and six months ended June 30, 2016 totaled $7,019,000 and $14,140,000, respectively, an increase of $377,000 and $811,000, respectively, from the same periods in 2015. The net interest margin for the second quarter of 2016 increased to 3.08% compared with 3.06% for the second quarter of 2015. Net interest margin for the six months ended June 30, 2016 was 3.11%, an increase of four basis points compared to the same period in 2015. Low interest rates and loan rate competition continues to exert pressure on asset yields, however, the growth in average loans as a percent of average earning assets as well as sustained growth in non-interest bearing deposits contributed to the improvement in net interest margin. The yield on earning assets increased two basis points from 3.54% for the second quarter of 2015 to 3.56% for the second quarter of 2016. For the six months ended June 30, 2016, the yield on earning assets increased four basis points, from 3.55% in 2015 to 3.59% in 2016. The cost of interest-bearing liabilities increased slightly to 0.58% for the second quarter and six months ended June 30, 2016, compared with the same periods in 2015.
Asset Quality, Provision for Loan Loss and Allowance for Loan Loss
QNB recorded a $125,000 provision for loan losses in the first quarter of 2016; no provision was required for the second quarter 2016. QNB's allowance for loan losses of $7,550,000 represents 1.25% of loans receivable at June 30, 2016 compared to $7,554,000, or 1.23% of loans receivable at December 31, 2015, and $7,655,000, or 1.32% of loans receivable at June 30, 2015. Net loan charge-offs were $129,000 for the first six months of 2016, or 0.04% annualized of total average loans, compared with net charge-offs of $406,000, or 0.14% annualized of total average loans for the same period in 2015.
Asset quality improved over the past six months and prior year with total non-performing assets of $12,583,000 as of June 30, 2016 compared with $13,372,000 as of December 31, 2015, and $15,019,000 as of June 30, 2015. Included in this classification are non-performing loans, other real estate owned (OREO) and repossessed assets, and non-accrual pooled trust preferred securities. Total non-performing loans, which represent loans on non-accrual status, loans past due 90 days or more and still accruing interest and restructured loans were $10,183,000, or 1.68% of loans receivable at June 30, 2016, compared with $10,719,000, or 1.74% of loans receivable at December 31, 2015, and $12,090,000, or 2.09% of loans receivable at June 30, 2015. 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, 2016, $6,319,000, or approximately 73% of the loans classified as non-accrual are current or past due less than 30 days. Commercial loans classified as substandard or doubtful, which includes non-performing loans, also improved. At June 30, 2016 substandard or doubtful loans totaled $23,476,000, a reduction of $3,849,000, or 14.1%, from the $27,325,000 reported at December 31, 2015 and a decrease of $5,885,000, or 20.0%, from the $29,361,000 reported at June 30, 2015.
QNB had no OREO and other repossessed assets as of June 30, 2016 and December 31, 2015 compared with three properties and one piece of leased equipment with a carrying value of $198,000 and $37,000, respectively, at June 30, 2015. Non-accrual pooled trust preferred securities are carried at fair value of $2,400,000, $2,653,000, and $2,694,000, at June 30, 2016, December 31, 2015, and June 30, 2015, respectively.
Total non-interest income was $1,374,000 for the second quarter of 2016, a decrease of $225,000, or 14.1%, compared with the same period in 2015. Non-interest income for the six months ended June 30, 2016 was $2,950,000, a decrease of $326,000, or 10.0%, compared to the same period in 2015. Net gains on investment securities declined $199,000, or 93.0%, from $214,000 in second quarter 2015 to $15,000 in second quarter 2016. Retail brokerage and advisory fees declined $78,000, or 38.2%, to $126,000 for the second quarter 2016 compared to the same period in 2015. Fees for services to customers decreased $7,000, or 1.7%, from $404,000 at June 30, 2015 to $397,000 at June 30, 2016, due primarily to a decrease in net overdraft income and the elimination of an ATM network service charge in September 2015. QNB originates residential mortgage loans for sale in the secondary market. Net gains on sale of loans decreased $48,000, or 40.3%, from $119,000 during the second quarter of 2015 to $71,000 during the second quarter 2016 due to a decline in residential mortgage activity.
These reductions in fee income were offset in part by a $28,000, or 7.1%, increase in ATM and debit card income to $422,000 for the second quarter 2016, due to increases in card-based transactions and expansion of checking account households. The net gain from trading activity of $52,000 for the second quarter of 2016 increased $86,000, or 252.9%, compared to the net loss of $34,000 for the second quarter of 2015. The “other” category of non-interest income declined slightly when comparing the second quarter of 2016 and 2015.
Total non-interest expense was $5,593,000 for the second quarter of 2016, decreasing $71,000, or 1.3%, from the same period in 2015. For the six months ended June 30, 2016 non-interest expense decreased $79,000 to $11,112,000, compared to the same period in 2015. Salaries and benefits expense decreased $65,000, or 2.1%, to $2,988,000 when comparing the two quarters. Net occupancy and furniture and equipment expense decreased $21,000, or 2.4%, to $866,000 for the second quarter 2016, primarily due to decreased utilities and rent expenses. Other non-interest expense increased $15,000, when comparing second quarter 2016 with second quarter 2015, primarily due to increased marketing and foreclosure expenses which were offset by decreased third party services and state tax expenses. Provision for income taxes increased $119,000 in the second quarter 2016. The effective tax rate for the second quarter of 2016 and 2015 was 25.1% and 23.2%, respectively. The increase in effective rate was due to a higher proportion of taxable income and increased state income taxes during the first half of 2016 compared to the same period in 2015.
About the Company
QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates eleven branches in Bucks, Montgomery and Lehigh Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through Investment Professionals, Inc., a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at www.qnbbank.com.
Forward Looking Statement
This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including "Item lA. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015. 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 to Help United Way Stuff the Bus
QUAKERTOWN, PA (22 July 2016) – QNB will be participating in the Stuff the Bus School Supply Drive organized by United Way of Bucks County. Stuff the Bus is a campaign designed to collect school supplies such as backpacks, notepads, and binders so that all students in the Upper Bucks schools have the tools they need to succeed in their education.
Drop off boxes will be located at QNB Offices throughout Upper Bucks from July 25th through August 14th so that employees and customers can donate items. Participating Offices include Quakertown (Country Square, Downtown, & Towne Bank Center), Dublin Village, and Perkasie. This year, we’re hoping the program will fill 200 backpacks destined for students in Quakertown, Pennridge, and Palisades school districts.
Marti Green Joins QNB Bank as Vice President of Commercial Lending
QUAKERTOWN, PA (20 July 2016) Marti Green has accepted the position of VP/Commercial Lending at QNB Bank. Marti is responsible for developing commercial loan business customers while analyzing and structuring new commercial loan transactions. Aside from managing a portfolio of commercial loans, she is in charge of cross-selling other Bank products and services to commercial customers.
Marti has been in banking for 29 years. In her previous role at National Penn Bank, Marti served as Vice President of Commercial Lending. She attended Slippery Rock University where she earned a BA in Secondary Education. Marti went on to earn an MBA in Finance from Saint Joseph’s University.
Marti lives in Horsham with her family. She remains very active in her community where she serves as Director on the Board of the Greater Horsham Chamber of Commerce. She also serves as Treasurer on the Board and is a member of the Rotary Club of Horsham. In addition, Marti is the Treasurer on the Board of the Ocean Park Avenue Condominium Association.
QNB Bank Sponsors Lansdale Public Library Clean & Green Extravaganza Fundraiser
LANSDALE, PA (6 July 2016) QNB is proud to sponsor the 6th annual Clean & Green Extravaganza fundraiser for the Lansdale Public Library. The event will take place at the Lansdale Public Library on Saturday, July 16th from 9am to 1pm. This year’s Clean & Green Extravaganza will include a carwash, book sale, document shredding, and electronics recycling.
Todd Alderfer Joins QNB Bank as Senior Vice President of Commercial Lending
QUAKERTOWN, PA (22 June 2016) Todd A. Alderfer has accepted the position of SVP/Commercial Lending at QNB Bank. Todd is responsible for soliciting, negotiating and coordinating the closing of commercial loans. As a team leader, he is also in charge of providing leadership, training and support to other commercial lenders at the Bank.
Todd has been in banking for 43 years. In his previous role at National Penn Bank, Todd served as Director of Commercial Lending. He attended the PA School of Banking at Bucknell University as well as the ABA National Commercial Lending School at the University of Oklahoma.
Todd lives in Gilbertsville with his family. He remains active in his community where he serves as a Board Member for both the United Way of Bucks County and the Pottstown Area Health and Wellness Foundation.
QNB Corp. Declares Dividend
Quakertown, PA (24 May 2016) The Board of Directors of QNB Corp. (OTC Bulletin Board: QNBC), parent company of QNB Bank, at a regular meeting on May 24, 2016 declared a quarterly cash dividend of $0.30 per share. The cash dividend is payable on June 24, 2016 to shareholders of record June 10, 2016.
QNB Corp. offers commercial and retail banking services through the 11 banking offices of its subsidiary, QNB Bank. In addition, QNB Bank provides securities and advisory services under the name of QNB Financial Services through Investment Professionals, Inc., a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. 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.
Area Bankers Receive Years of Service Award
QUAKERTOWN, PA (19 April 2016) David W. Freeman, President & CEO, and James A. Bleakly, Jr., SVP, Leasing Operations & Special Assets, of QNB Bank, were recognized for serving 40 or more years in the banking industry at the Pennsylvania Bankers Association (PA Bankers) Group 2 meeting held on April 5th at the Rivercrest Golf Club in Phoenixville.
(Pictured: David W. Freeman, President/CEO, and James A. Bleakly, Jr., SVP, Leasing Operations & Special Assets of QNB Bank)
The 40-Year Club consists of bankers completing 40 or more years of service in Pennsylvania’s banking industry who are regular members of the PA Bankers.
David Freeman has served the banking industry for 41 years. As the President/CEO of QNB Bank, David is responsible for the Bank’s strategic direction and planning along with community and sales leadership. David graduated from Stonier Graduate School of Banking, received an MBA at Ohio State University, and earned a BSBA from Franklin University. Formerly, David was the Division President of Fulton Bank.
James Bleakly has served the banking industry for 45 years. In his current position of Senior Vice President, Leasing Operations & Special Assets, James is responsible for managing the lease portfolio, workout and collection activity for commercial and consumer loans. James received a Bachelor of Economics from Muhlenberg College. Previously, he served as Senior Vice President at Continental Bank.
The Pennsylvania Bankers Association, located in Harrisburg, is the Commonwealth’s leading banking trade association representing an expansive and diverse membership. The Association offers extensive continuing education programs, government relations representation on behalf of the industry, and provides numerous products and services for banks and their employees.
QNB Bank Sponsors Hatfield Borough’s Founder’s Day and Fall Festival
HATFIELD, PA (13 April 2016) QNB Bank is proud to sponsor the Borough of Hatfield’s Founder’s Day and Fall Festival. Hatfield Borough’s Founder’s Day event will take place on Monday, June 13th and will feature plenty of food, fun and games. Hatfield’s Fall Festival & Car Show will take place on Saturday, September 24th. This annual event will comprise of art, craft and novelty vendors along with a car show.
(Pictured left to right: Bruce Kenworthy, AVP/Business Development Officer, QNB Bank; Lindsay Hellmann, Public Information Coordinator, Borough of Hatfield; and Jaime Snyder, Assistant Secretary, Borough of Hatfield)
QNB Bank Sponsors Hatfield Township Hat Trick Race Series
HATFIELD, PA (8 April 2016) QNB is proud to sponsor the 7th Annual Hatfield Township Races. The event has a total of three races spread throughout the year in April, August, and October, each of various distances with different side attractions. The race series is held in partnership with ACT Sports Management, a professional race production team. Proceeds from the races benefit Hatfield Township Parks and Recreation.
(Pictured left to right: Ashley O’Neill, Parks & Rec. Director, Hatfield Township; Aaron Bibro, Township Manager, Hatfield Township; April Donahue, VP/Branch Manager, QNB Bank; and Bruce Kenworthy, AVP/Business Development Officer, QNB Bank)
QNB Bank Promotes Lucy P. N. Sharp, Esq. to Senior Vice President Chief Compliance Officer
QUAKERTOWN, PA (8 April 2016) Lucy P. N. Sharp, Esq., has been named Senior Vice President Chief Compliance Officer at QNB’s Towne Bank Center. Lucy is responsible for the operation of the Compliance Management System. She received a Bachelor of Arts in economics at Mount Holyoke College and went on to receive a Juris Doctor degree from Rutgers School of Law in Newark.
Lucy is also an active member of the community. She is the President of the Board of Directors of Keystone Opportunity Center. She is also a member of the Willow Grove Community Development Corporation Board of Directors. Lucy currently resides in Jenkintown, PA.