On December 27, 2012, David W. Freeman, President of QNB Corp. and President and Chief Operating Officer of QNB Bank, was appointed President and Chief Executive Officer of each of the company and the Bank, effective January 1, 2013. Mr. Freeman was also appointed a Class I director of the company.

The position changes for Mr. Freeman coincide with the previously announced planned retirement of Thomas J. Bisko as an executive officer of the company and the Bank on December 31, 2012. Mr. Bisko will continue to serve as a director of both the Company and Bank following his retirement as an officer and employee. On December 27, 2012, the board of directors of the Company also appointed Autumn Bayles as a Class I director.

From 2011 to the present, Ms. Bayles has served as Vice President of Strategic Development at Aramark Corp. Prior to 2011, Ms. Bayles served as Senior Vice President of Strategic Operations (2006 to 2011) and Chief Information Officer (2003-2006) for Tasty Baking Company that was acquired by Flower Foods Inc. in 2011. Ms. Bayles was also appointed as a director of the Bank.

She will be compensated for his service as a director on the same basis as other non-employee directors of the company and the Bank, including retainers and board and committee fees.