Quakertown, PA and Limerick, PA, Feb. 25, 2026 (GLOBE NEWSWIRE) -- QNB Corp. ("QNB" or the "Company") (OTCQX: QNBC), the holding company for QNB Bank, and The Victory Bancorp, Inc. ("Victory") (OTCQX: VTYB), the holding company for The Victory Bank, today jointly announced that they have received all required regulatory approvals to complete their previously announced merger transaction (the “Merger”). The transaction, initially announced on September 23, 2025, is expected to close during the second quarter ...

Core Viewpoint - QNB Corp. reported significant growth in net income for the fourth quarter and the full year of 2025, driven by increased net interest income and a pending merger with Victory Bancorp, which is expected to enhance shareholder value and community impact [1][2][6]. Financial Performance - QNB Corp. reported a net income of $3,981,000 or $1.06 per share for Q4 2025, up from $3,051,000 or $0.83 per share in Q4 2024, representing a 30.4% increase in net income year-over-year [1]. - For the full year 2025, net income reached $14,090,000 or $3.78 per share, compared to $11,448,000 or $3.12 per share in 2024, marking a 22.7% increase [1]. - Adjusted diluted earnings per share, excluding merger-related costs, were $1.22 for Q4 2025 and $4.08 for the full year [1]. Asset and Loan Growth - Total assets as of December 31, 2025, were $1,906,005,000, an increase from $1,870,894,000 in 2024 [5]. - Loans receivable increased by $46,026,000 or 3.8% to $1,262,074,000 [5]. - Total deposits rose by $13,970,000 or 0.9% to $1,642,511,000 [5]. Interest Income and Margin - Net interest income for Q4 2025 was $14,042,000, an increase of $3,067,000 from Q4 2024 [7]. - The net interest margin improved to 2.95% in Q4 2025 from 2.38% in Q4 2024 [7]. - The yield on earning assets increased to 4.98% in Q4 2025, up from 4.78% in Q4 2024 [8]. Non-Interest Income - Total non-interest income for Q4 2025 was $1,874,000, compared to $1,645,000 in Q4 2024, reflecting a 13.9% increase [14]. - For the full year, non-interest income was $6,957,000, a slight increase from $6,913,000 in 2024 [16]. Non-Interest Expense - Total non-interest expense for Q4 2025 was $10,694,000, up from $9,081,000 in Q4 2024, with a notable increase in salaries and benefits [17][19]. - Excluding merger-related costs, non-interest expense increased by 10.9% for Q4 2025 compared to the same period in 2024 [17]. Merger with Victory Bancorp - QNB Corp. announced a definitive agreement to acquire Victory Bancorp in an all-stock transaction, expected to close in Q2 2026, creating a bank holding company with nearly $2.4 billion in assets [2]. - Post-merger, the ownership split is projected to be approximately 77.2% for QNB and 22.8% for Victory [2].

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]