Note 12 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2017

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 approximately $259,000, $206,000 and $240,000 for the years ended December 31, 2017, 2016, and 2015, respectively, and a safe harbor contribution of approximately $478,000 for 2017, $445,000 for 2016, and $441,000 for 2015.

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 2016 Annual Meeting, shareholders approved the 2016 Employee Stock Purchase Plan (the 2016 Plan), which authorizes the issuance of 30,000 shares. As of December 31, 2017, 4,052 shares were issued under the 2016 Plan. The 2016 Plan expires May 31, 2021. The 2011 Employee Stock Purchase Plan (the 2011 Plan), which was approved by shareholders at the 2011 Annual Meeting, expired May 31, 2016. A total of 17,516 shares were issued under the 2011 plan.

Shares issued pursuant to the Plan were as follows:

Year ended December 31,	2017		2016		2015
Shares		2,660		2,932		3,186
Price per share	$31.95 and $36.18		$26.73 and $28.35		$25.20 and $26.73