QNB approaches 135 years, $1B in holdings

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The bank has reported record-breaking earnings for the past two and half years, according to CEO Tom Bisko, and plans for the future are to stay the course and remain independent for the next 135 years.

“I see steady continued organic growth and what I mean by organic is that we aren’t going to be out acquiring other banks – we will keep our prudent rate of growth and establish branches as we see fit and as we need them,” Bisko said.

In the next couple years, Bisko anticipates QNB will reach $1 billion in holdings, but it won’t happen on his watch because he plans to end his 27-year career at QNB and retire at the end of 2012. David Freeman, COO and president, will succeed him effective this Jan. 1. Freeman will be just the seventh CEO in the bank’s history Bisko said QNB’s business plan isn’t “glitzy” but it is successful. In fact, the bank’s competitive posture has never been better. As competing community banks like Harleysville National Bank and National Penn merged with bigger banks and the community lost faith in large institutions, QNB reaped the rewards.

The bank is experiencing growth in household accounts at a rate it has never seen and Bisko said it is because consumers want the safety and soundness of their local community bank.
“In this era of financial mergers, closures and financial bailouts QNB takes pride in continuing to be one of the few surviving independent community banks,” Bisko said. “People are tired of what they are hearing from the big guys.”

A publically owned company since it was established in 1877, there is one other benefit QNB has been able to offer that many of the big banks haven’t been able to do lately – dividends for its 1,200 shareholders.

QNB’s headquarters is located in the heart of downtown Quakertown. Its nine branches are within 25 miles of Quakertown and most are located strategically near business hotspots along the Route 309 corridor. A tenth branch in Colmar is expected to open in the first quarter of 2013.

There are no plans to expand outside Pennsylvania because it registered as a state bank a couple years ago. Before the switch, QNB was known as Quakertown National Bank.

The challenge today is for QNB to remain relevant, increase lending and bolster its wealth management services. Although a stagnant economy has dampened the loan market there is no loan too small at QNB and Brisko said they have plenty of money available for qualified applicants.

Small to mid-size companies comprise the bulk of QNB’s business, according to the CEO. Strong relationships and good customer service help set his bank apart. Bisko rattles off many testimonials from businesses that are thrilled to be banking with QNB after becoming frustrated with a lack of personal service from their large banking institutions.

Being a community bank also means QNB strives to help the community whenever possible. Last year the bank donated more than $200,000 in cash and sponsorships to more than 500 causes. It is on track to help fund 600 next year. Bank employees contributed about 8,000 hours of community service.

“You will not find a service club without a QNB representative,” Bisko said.

The bank currently employs 179 people, 164 of whom are full time and there are 11 directors on its board.

“We think our business model is successful and people will continue to come to us because we are locally owned and managed and we care about our relationships,” Bisko said.