0001193125-26-107482
SEC filingQNB Corp. (QNBC), a Pennsylvania-based bank holding company, reported strong FY 2025 performance in its 10-K filing dated March 16, 2026. Net income reached $14.1 million, a 23% increase from $11.4 million in 2024, driven by net interest income growth to $51.2 million (up 19.5% YoY) amid a 29 basis point expansion in net interest margin to 2.72%. Total interest income rose to $92.6 million, fueled by higher loan yields and volumes, particularly commercial real estate loans up 3.8% to $1.26 billion. Non-interest income held steady at $7.0 million, while non-interest expense increased 12.2% to $39.8 million, partly due to $1.1 million in merger-related costs for the pending Victory Bancorp acquisition expected in Q2 2026. Balance sheet expanded to $1.91 billion in assets, with deposits at $1.64 billion (up 0.9% YoY) and shareholders' equity at $129.6 million. EPS was $4 (basic and diluted, up from $3.12), with dividends of $2 per share. Credit quality showed non-performing loans at 0.70% of total loans, provision for credit losses $449K. Operating cash flow was $16.6 million, supporting liquidity amid loan growth.
QNB Corp. delivered robust FY 2025 results with net income of $14.1 million, up 23% from $11.4 million in 2024 and $9.5 million in 2023. Net interest income surged 19.5% to $51.2 million, benefiting from a 29 basis point NIM expansion to 2.72%. Provision for credit losses was $449K, versus a $68K reversal in 2024. Non-interest income stable at $7.0 million, while expenses rose 12.2% to $39.8 million, including $1.1 million merger costs. Total assets grew 1.9% to $1.91 billion, loans 3.8% to $1.26 billion, deposits 0.9% to $1.64 billion. ROA improved to 0.74% from 0.65%, ROE to 12.28% from 11.78%. EPS diluted $4 versus $3.12 prior year.
Primary revenue from net interest income at $51.2 million, up from $42.9 million in 2024, driven by loan growth ($46.0 million, led by commercial real estate) and higher yields (loans 5.98%). Interest income $92.6 million, with loans contributing $73.1 million. Investment securities interest $17.3 million (taxable $15.5M, tax-exempt $1.4M). Non-interest income $7.0 million included ATM/debit $3.0M, service fees $2.0M. No geographic segments disclosed; operations in Bucks, Montgomery, Lehigh counties, PA. Merger with Victory Bancorp pending, pro forma assets ~$2.4B.
Efficiency ratio improved to 67.9% from 70.5%, reflecting revenue growth outpacing expenses. Pre-tax income $17.9 million, tax rate 21.4%. Excluding merger costs, adjusted net income $15.2 million, ROA 0.80%, ROE 13.24%. Salaries/benefits $21.3 million (54% of expenses), up 7.7% YoY. Merger costs $1.1 million non-recurring. NIM 2.72% vs 2.43% prior, supported by deposit cost decline to 2.40%.
Operating cash flow $16.6 million, driven by net income and adjustments. Investing cash outflow $23.4 million (net loan growth $44.4M, securities activity). Financing inflow $6.3 million (deposit growth $14M, subordinated debt $40M issuance offset by long-term debt repayment $30M). Net cash decrease $416K; ending cash equivalents $50.3M. Equity $129.6M (Tier 1 12.39%, leverage 9.02%). Deposits fund 86% of assets; borrowings $119.9M. Allowance for loan losses $9.2M (0.73% of loans).
Pending Victory merger (Q2 2026) to create $2.4B asset entity, 77/23 ownership split. Focus on loan growth, NIM optimization amid rate environment. Credit risks monitored; non-performers 0.70%. Regulatory capital well above well-capitalized. Economic sensitivity in SE PA; competition from larger banks noted. No specific 2026 guidance, but merger costs non-recurring.