QNB Corp. reported a net loss of $14,774,000, or $2.67 per share on a diluted basis, for the third quarter of 2026. The parent company of QNB Bank cited a balance sheet restructuring and significant merger-related expenses as the primary drivers of the reported loss.
The company executed a strategic repositioning in September 2026, selling $250,712,000 in available-for-sale securities at a loss of $29,049,000. Additionally, QNB completed the acquisition of Victory Bancorp, Inc., which closed on April 1, 2026. Results for the quarter include three months of post-merger activity, with merger-related costs totaling $251,000 for the third quarter of 2026 and $3,249,000 for the first nine months of the year.
Excluding the impact of the balance sheet restructuring and merger-related costs, QNB reported adjusted net income of $7,207,000, or $1.30 per share, for the third quarter of 2026. This compares to adjusted net income of $4,058,000, or $1.09 per share, for the same period in 2025. For the nine months ended September 30, 2026, adjusted net income was $16,236,000, or $3.39 per share, compared to $10,519,000, or $2.83 per share, in the prior year.
QNB strengthened its capital position through an underwritten public offering completed on August 20, 2026. The company issued 1,232,142 common shares, raising $48,284,000 in net proceeds to shareholders' equity.
Asset quality metrics showed an increase in non-performing loans to $11,688,000, or 0.66% of loans receivable, as of September 30, 2026. The provision for credit losses on loans was $379,000 for the third quarter of 2026. Total assets as of September 30, 2026, stood at $2.36 billion, an increase from $1.91 billion at December 31, 2025. Loans receivable increased to $1.77 billion, and total deposits increased to $2.06 billion.
