QNB Corp. reported a net income of $14.09 million for the year ended December 31, 2025, translating to $3.78 per diluted share, marking a significant increase from the $11.45 million, or $3.12 per diluted share, reported in 2024. This represents a 23.6% rise in net income year-over-year, driven primarily by a 19.5% increase in net interest income, which rose to $51.23 million from $42.86 million in the previous year. The net interest margin also improved, increasing to 2.72% from 2.43% in 2024. The provision for credit losses was recorded at $449,000, a reversal from the previous year's provision of $68,000, indicating a more cautious approach to potential loan defaults.
In terms of operational metrics, QNB's total assets grew to $1.91 billion, up from $1.87 billion in 2024, while total loans receivable increased by 3.8% to $1.26 billion. Total deposits also saw a modest increase of 0.9%, reaching $1.64 billion. The bank's employee count stood at 191 full-time employees as of February 18, 2026, reflecting a stable workforce dedicated to customer service and community engagement.
Strategically, QNB announced a merger agreement with The Victory Bancorp, Inc. on September 23, 2025, which is expected to close in the second quarter of 2026. This merger aims to create a combined entity with nearly $2.4 billion in assets, enhancing QNB's market presence and operational capabilities. The merger-related costs incurred in 2025 amounted to $1.14 million, which were excluded from the non-GAAP net income of $15.20 million for the year.
The bank's credit quality indicators showed improvement, with non-performing loans decreasing to $1.98 million, or 0.16% of total loans, down from $8.79 million, or 0.70%, in 2024. This reduction in non-performing loans reflects effective risk management and a focus on maintaining strong asset quality. QNB's allowance for credit losses on loans increased to $9.22 million, representing 0.73% of total loans, indicating a proactive stance in managing potential credit risks.
Looking ahead, QNB anticipates continued growth in its loan portfolio and deposit base, supported by its strategic initiatives and the expected benefits from the merger with Victory Bancorp. The bank remains focused on enhancing its service offerings and maintaining a strong capital position, with a Tier 1 capital ratio of 12.39% as of December 31, 2025, well above regulatory requirements.
About QNB CORP
QNB Corp. is a Pennsylvania-based bank holding company operating through its subsidiary, QNB Bank. It provides a full range of community banking services, including deposit accounts, commercial, residential, and consumer loans, primarily serving southeastern Pennsylvania. The company emphasizes personalized service, local decision-making, and technological solutions to compete in a highly regulated, competitive market. Its core focus is on relationship banking, asset management, and supporting local economic growth.
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