QNB Corp. Reports Increased Net Income and Plans Acquisition of The Victory Bancorp

QNB Corp. reported a net income of $3.648 million, or $0.98 per diluted share, for the third quarter of 2025, marking an increase from $3.338 million, or $0.91 per share, in the same period of 2024. For the nine months ending September 30, 2025, net income rose to $10.109 million, or $2.72 per share, compared to $8.397 million, or $2.29 per share, for the corresponding period in the previous year. The increase in profitability was attributed to a significant rise in net interest income, which increased by 16.8% to $12.998 million for the quarter and by 16.6% to $37.187 million for the nine-month period, driven by improved interest margins and loan growth.

Total assets for QNB Corp. reached $1.903 billion as of September 30, 2025, up from $1.871 billion at the end of 2024. The company experienced a $30.481 million increase in loans receivable, totaling $1.247 billion, while total deposits rose by $52.999 million to $1.682 billion. The growth in deposits was primarily due to increases in interest-bearing demand accounts and municipal deposits. The bank's non-performing loans also increased to $8.947 million, representing 0.72% of total loans, compared to $1.975 million, or 0.16%, at the end of 2024.

Strategically, QNB Corp. announced its intention to acquire The Victory Bancorp, Inc. in an all-stock transaction, which is expected to close in late 2025 or early 2026, pending regulatory and shareholder approvals. This acquisition aims to create a combined entity with nearly $2.4 billion in assets. The merger-related costs incurred during the third quarter amounted to $519,000, which are considered non-recurring expenses. Excluding these costs, the adjusted net income for the quarter would have been $4.058 million.

Operationally, QNB Corp. reported an increase in its employee headcount and customer engagement metrics, although specific figures were not disclosed. The bank continues to focus on expanding its customer relationships and enhancing service quality in its primary markets of upper Bucks, northern Montgomery, and southern Lehigh counties in Pennsylvania. The outlook for QNB Corp. remains cautiously optimistic, with management anticipating continued growth in net interest income despite competitive pressures on loan pricing and deposit rates. The company is also committed to maintaining strong capital ratios, with a common equity tier 1 capital ratio of 12.17% as of September 30, 2025, well above regulatory requirements.