Businessweek

QNB Corp. operates as the holding company for QNB Bank that offers commercial banking services. The company’s principal office is located in Quakertown, Bucks county, Pennsylvania, and operates eight other full-service community banking offices in Bucks, Montgomery and Lehigh counties in southeastern Pennsylvania. Loans The company’s commercial lending activity is focused on small businesses within the local community. These types of loans involve larger loan balances to a single borrower or group of related borrowers and are more susceptible to a risk of loss during a downturn in the business cycle. Commercial loans secured by commercial real estate include commercial purpose loans collateralized at least in part by commercial real estate. Commercial loans secured by residential real estate are commercial purpose loans secured by the business owner’s residence. Commercial loans secured by either commercial real estate or residential real estate are originated primarily within the eastern Pennsylvania market area at conservative loan-to-value ratios and also usually include the guarantee of the borrowers. Loans to state and political subdivisions are tax-exempt or taxable loans to municipalities, school districts and housing and industrial development authorities. Indirect lease financing receivables represent loans to small businesses that are collateralized by equipment. These loans are originated by a third party and purchased by the company based on criteria specified. The company originates fixed rate and adjustable-rate residential real estate loans that are secured by the underlying 1-to-4 family residential properties. The home equity portfolio consists of fixed-rate home equity loans and variable rate home equity lines of credit. The company offers various loans to individuals for personal and household purposes. Commercial and industrial loans are primarily to developers and builders for the construction of residential units or commercial buildings or to businesses for the construction of owner-occupied facilities. This portfolio is diversified among different types of collateral including 1-4 family residential construction, medical facilities, factories, office buildings, funeral homes and land for development loans. Retail loans include first lien 1-4 family residential mortgages, home equity loans and lines and consumer loans. Investment Portfolio The company’s investment portfolio includes U.S. Treasury securities; securities of U.S. Government agencies; state and municipal securities; mortgage-backed and Collateralized mortgage obligations; other debt securities; money market mutual funds; and equities. Deposits The company’s deposits include demand, non-interest bearing; interest-bearing demand; municipals interest-bearing demand; money market deposits; savings accounts; and time deposits. Regulation The company is registered as a bank holding company and is subject to the regulations of the Board of Governors of the Federal Reserve System (the Federal Reserve) under the BHCA. In addition, it is also subject to the provisions of Section 115 of the Pennsylvania Banking Code of 1965 and the Pennsylvania Business Corporation Law of 1988, as amended. Federal statutes that apply to the company and its subsidiary include the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Gramm-Leach-Bliley Act (GLBA), the Bank Holding Company Act of 1956 (BHCA), the Federal Reserve Act and the Federal Deposit Insurance Act (FDIA). Other corporate governance requirements are imposed on the company by Federal laws, including the Sarbanes-Oxley Act. The company is under the jurisdiction of the Securities and Exchange Commission and of state securities commissions for matters relating to the offering and sale of its securities. In addition, the COMPANY is subject to the Securities and Exchange Commission’s rules and regulations relating to periodic reporting, proxy solicitation and insider trading. History QNB Corp. was founded in 1877.