On September 8, 2026, QNB Corp. announced the execution of a strategic repositioning involving the sale of $254.4 million in book value available-for-sale securities with a weighted-average yield of 1.59%, representing approximately 46.8% of its total portfolio. The company also unwound $162.0 million in notional amount of pay-fixed interest rate swaps. These transactions are estimated to result in a net pre-tax loss of $26.2 million, which will be recorded in the third quarter of 2026 financial results. Management expects this loss to be recovered in under four years through higher yields on reinvested proceeds and loan growth, targeting a blended weighted-average yield of approximately 5.45%. The repositioning is expected to positively impact tangible common equity-to-tangible assets ratios and improve net interest margin. QNB Corp. operates as the holding company for QNB Bank, providing commercial, small business, and personal banking services in Pennsylvania.

QNB Corp. completed the acquisition of The Victory Bancorp, Inc., on April 1, 2026, pursuant to a merger agreement dated September 23, 2025. Victory merged into QNB, with QNB continuing as the surviving corporation. This filing includes Victory's unaudited consolidated financial statements for the quarter ended March 31, 2026, and pro forma combined balance sheet and income statement data reflecting the merger. The company operates in the banking industry.

QNB Corp. reported second-quarter 2026 net income of $3,015,000, or $0.60 per diluted share, impacted by $2,227,000 in after-tax merger-related costs from the Victory Bancorp acquisition closed on April 1, 2026. Excluding these costs, adjusted net income was $5,242,000, or $1.05 per diluted share, compared to $3,883,000, or $1.04 per share, in the prior year period. The acquisition expanded the company's asset base to nearly $2.4 billion, with total assets reaching $2.399 billion as of June 30, 2026. Net interest income increased to $18,351,000, driven by a 47 basis point expansion in the tax-equivalent net interest margin to 3.16%. QNB Corp. operates as a bank holding company providing commercial, small business, and personal banking services through its subsidiary, QNB Bank, in Pennsylvania.