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]

Core Viewpoint QNB Corp. reported significant growth in net income for the second quarter of 2025, driven by improved operating performance, particularly in net interest income, despite some challenges in non-interest income and expenses. Financial Performance - QNB Corp. reported net income of $3,883,000 or $1.04 per share for Q2 2025, up from $2,465,000 or $0.67 per share in Q2 2024, marking a 57.5% increase in net income year-over-year [1] - For the first half of 2025, net income was $6,461,000 or $1.74 per share, compared to $5,059,000 or $1.38 per share in the same period of 2024, reflecting a 27.7% increase [1] Operating Metrics - The annualized return on average assets and average shareholders' equity for Q2 2025 was 0.83% and 14.25%, respectively, compared to 0.57% and 10.73% in Q2 2024 [2] - Net interest income for Q2 2025 totaled $12,652,000, an increase of $2,060,000 from Q2 2024, with a net interest margin of 2.69% compared to 2.46% in the prior year [6] Asset Quality - QNB recorded a reversal of $145,000 in the provision for credit losses on loans in Q2 2025, compared to a provision of $132,000 in Q2 2024 [10] - Total non-performing loans increased to $8,947,000 or 0.73% of loans receivable as of June 30, 2025, up from $1,975,000 or 0.16% at the end of 2024 [11] Non-Interest Income and Expenses - Total non-interest income for Q2 2025 was $1,652,000, up from $1,465,000 in Q2 2024, with a notable increase in fees for service to customers [12][13] - Total non-interest expense rose to $9,562,000 in Q2 2025 from $8,934,000 in Q2 2024, driven by increases in salaries and benefits, occupancy, and other operational costs [16][17] Balance Sheet Highlights - Total assets as of June 30, 2025, were $1,884,828,000, an increase from $1,870,894,000 at the end of 2024 [4] - Total deposits increased by $23,126,000 or 1.4% to $1,651,667,000, while loans receivable rose by $2,491,000 to $1,218,539,000 [4] Management Commentary - The CEO noted that the bank's operating performance continued to improve, primarily due to an expanding net interest margin, and expressed cautious optimism for the second half of the year amid ongoing economic uncertainty [5]