Note 12 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2023

Note 12 - Employee Benefit Plans

The QNB Bank Retirement Savings Plan provides for elective employee contributions up to the maximum allowed by the IRS and a matching company contribution limited to 3%. In addition, the plan provides for safe harbor non-elective contributions of 5% of total compensation by QNB. QNB contributed a matching contribution of $376,000, $345,000 and $340,000 for the years ended December 31, 2023, 2022, and 2021, respectively, and a safe harbor contribution of $669,000 for 2023, $606,000 for 2022, and $608,000 for 2021.

QNB’s Employee Stock Purchase Plan (the Plan) offers eligible employees an opportunity to purchase shares of QNB Corp. common stock at a 10% discount from the lesser of fair market value on the first or last day of each offering period (as defined by the Plan). At the 2021 Annual Meeting, shareholders approved the 2021 Employee Stock Purchase Plan (the 2021 Plan), which authorizes the issuance of 30,000 shares. As of December 31, 2023, 6,630 shares were issued under the 2021 Plan. The 2021 Plan expires May 31, 2026.

Shares issued pursuant to the Plan were as follows:


Year ended December 31,	2023		2022		2021
Shares		6,630		5,102		4,906
Price per share	$23.10		$29.48 and $24.21		$27.36 and $32.29

QNB implemented the Nonqualified Deferred Compensation Plan (NDCP) during 2023 for the benefit of a select group of its management or highly compensated employees. The purpose of the NDCP is to provide a deferred compensation vehicle to which QNB may credit discretionary amounts on behalf of the participants for recruitment and reward. QNB contributed $108,000 to the NDCP in 2023.