QNB Corp. Reports Earnings for Third Quarter 2025

Core Insights - QNB Corp. reported a net income of $3,648,000 for Q3 2025, an increase from $3,338,000 in Q3 2024, with diluted earnings per share rising to $0.98 from $0.91 [1][5] - The company announced a merger agreement with The Victory Bancorp, expected to close in Q4 2025 or Q1 2026, creating a bank holding company with nearly $2.4 billion in assets [2] Financial Performance - For the nine months ended September 30, 2025, net income was $10,109,000, up from $8,397,000 in the same period of 2024, with diluted earnings per share increasing to $2.72 from $2.29 [1][5] - The annualized return on average assets and average shareholders' equity for Q3 2025 was 0.76% and 12.49%, respectively, compared to 0.74% and 13.25% in Q3 2024 [3] Income and Expenses - Net interest income for Q3 2025 was $12,998,000, an increase of $1,871,000 from Q3 2024, with a net interest margin of 2.72% compared to 2.48% in the prior year [7][8] - Total non-interest expense rose to $10,182,000 in Q3 2025 from $8,636,000 in Q3 2024, with a significant portion attributed to merger-related costs [17][19] Asset Quality - QNB recorded a provision for credit losses on loans of $98,000 in Q3 2025, down from $154,000 in Q3 2024, with total non-performing loans increasing to $8,947,000, or 0.72% of loans receivable [11][12] - The allowance for credit losses on loans was $9,255,000, representing 0.74% of loans receivable as of September 30, 2025 [11][12] Deposits and Loans - Total deposits increased by $52,999,000, or 3.3%, to $1,681,540,000 as of September 30, 2025, while loans receivable rose by $30,481,000, or 2.5%, to $1,246,529,000 [6][24] - The yield on earning assets was 4.91% for Q3 2025, up from 4.86% in Q3 2024, indicating improved asset utilization [8][9]