STOCK TITAN
  1. Home
  2. Sec-filings
  3. QNBC
  4. [8-K] QNB CORP. Reports Material Event

QNB Corp. (OTCQX: QNBC) details Q2 2026 earnings and Victory Bancorp impact

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

QNB Corp. reported second-quarter 2026 results that reflect its April 1, 2026 acquisition of Victory Bancorp, Inc. GAAP net income for the quarter was $3,015,000, or $0.60 per diluted share, compared with $3,883,000, or $1.04 per diluted share, a decline driven by $2,227,000 of merger-related costs after tax.

Excluding these one-time items, adjusted net income rose to $5,242,000 and adjusted diluted EPS to $1.05, slightly above $1.04 a year earlier. For the first six months of 2026, net income was $5,780,000 (diluted EPS $1.32), while adjusted net income reached $9,029,000 with adjusted diluted EPS of $2.06.

Total assets increased to $2,398,970,000 at June 30, 2026 as the Victory transaction added $408,379,000 of loans, $409,165,000 of deposits and $47,101,000 of equity. Tax-equivalent net interest margin improved to 3.16% from 2.69%, and asset quality remained stable with non-performing loans at 0.61% of loans receivable.

Positive

  • Adjusted consolidated net income rose to $5,242,000 in Q2 2026 from $3,883,000 a year earlier, while tax-equivalent net interest margin expanded to 3.16% from 2.69% following the Victory Bancorp acquisition.
  • Total assets increased to $2,398,970,000 at June 30, 2026, with the Victory merger adding $408,379,000 of loans and $409,165,000 of deposits, supporting stronger scale in core community banking markets.

Negative

  • GAAP diluted EPS fell to $0.60 in Q2 2026 from $1.04 in Q2 2025, with net income declining to $3,015,000 due to $2,227,000 of after-tax merger-related costs.
  • The efficiency ratio under GAAP worsened to 79.90% for Q2 2026 from 66.39% a year earlier, reflecting significantly higher non-interest expenses including $3,084,000 of pre-tax merger-related costs.
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income Q2 2026 (GAAP) $3,015,000 Consolidated net income for the quarter ended June 30, 2026
Adjusted net income Q2 2026 (Non-GAAP) $5,242,000 Net income excluding merger-related costs for Q2 2026
Diluted EPS Q2 2026 (GAAP) $0.60 Diluted earnings per share for the quarter ended June 30, 2026
Total assets $2,398,970,000 Period-end assets at June 30, 2026
Loans receivable $1,716,599,000 Gross loans receivable at June 30, 2026
Total deposits $2,067,151,000 Deposits outstanding at June 30, 2026
Net interest margin Q2 2026 3.16% Tax-equivalent net interest margin for the quarter ended June 30, 2026
Non-performing loans ratio 0.61% Non-performing loans as a percentage of loans receivable at June 30, 2026
tax-equivalent net interest margin financial
"Tax-equivalent net interest margin was 3.16% for the second quarter of 2026"
Net interest margin measures the percentage difference between interest a lender earns on its assets and interest it pays on liabilities; tax-equivalent net interest margin adjusts that figure to account for tax-exempt interest by converting it into the taxable-equivalent yield using a chosen tax rate. This makes the margin comparable across institutions or assets by reflecting what tax-free income would be worth if it were taxed, like converting prices into the same currency so you can compare them directly.
allowance for credit losses on loans financial
"QNB's allowance for credit losses on loans of $12,770,000 represents 0.74% of loans"
A bank's allowance for credit losses on loans is a reserve of money set aside to cover loans the lender expects may not be repaid. Think of it as a rainy-day fund for a loan portfolio: larger allowances signal more expected losses and reduce reported profits and available capital, so investors watch it to judge a lender’s risk exposure, earnings quality, and financial strength.
non-performing loans financial
"Total non-performing loans, which represent loans on non-accrual status and loans past due"
Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.
efficiency ratio financial
"Efficiency Ratio (GAAP) was 79.90% for the second quarter ended June 30, 2026"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
subordinated debt financial
"Subordinated debt | | 54,018 | | | 39,318 |"
Subordinated debt is a type of loan that is paid back after other debts have been settled if a company encounters financial trouble. It is considered riskier for lenders because they have lower priority in getting repaid, similar to being last in line during a payout. For investors, this means higher potential returns in exchange for taking on more risk.
Net income Q2 2026 (GAAP) $3,015,000 Down $868,000 from $3,883,000 in Q2 2025
Diluted EPS Q2 2026 (GAAP) $0.60 Down $0.44 from $1.04 in Q2 2025
Adjusted net income Q2 2026 (Non-GAAP) $5,242,000 Up $1,359,000 from $3,883,000 in Q2 2025
Tax-equivalent net interest margin Q2 2026 3.16% Increased from 2.69% in Q2 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

How did QNB Corp. (QNBC) perform financially in Q2 2026?
QNB Corp. reported Q2 2026 net income of $3,015,000, or $0.60 diluted EPS, compared with $3,883,000, or $1.04 diluted EPS, in Q2 2025. Results were reduced by $2,227,000 of after-tax merger-related costs from the Victory Bancorp acquisition.

How did the Victory Bancorp acquisition affect QNB Corp. (QNBC)?
The April 1, 2026 Victory Bancorp acquisition created a franchise with nearly $2.4 billion in assets and added $408,379,000 in loans, $409,165,000 in deposits and $47,101,000 in equity, expanding QNB’s presence deeper into Montgomery County and supporting loan and deposit growth.

What happened to QNBC’s net interest margin in Q2 2026?
Tax-equivalent net interest margin improved to 3.16% in Q2 2026 from 2.69% a year earlier. The yield on earning assets rose to 5.26%, while the cost of interest-bearing liabilities declined to 2.54%, supporting higher net interest income of $18,351,000.

How strong is QNB Corp.’s (QNBC) asset quality after the merger?
At June 30, 2026, non-performing loans were $10,418,000, or 0.61% of loans receivable, versus 0.70% at December 31, 2025. The allowance for credit losses on loans was $12,770,000, or 0.74% of loans, including $3,020,000 added through the Victory acquisition.

What were QNBC’s key balance sheet totals at June 30, 2026?
QNB Corp. reported total assets of $2,398,970,000, loans receivable of $1,716,599,000 and total deposits of $2,067,151,000 at June 30, 2026. Shareholders’ equity was $183,514,000, reflecting the capital added through the Victory Bancorp transaction.
0000750558NONE00007505582026-07-282026-07-28

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

CURRENT REPORT

PURSUANT TO SECTIONS 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported):

July 28,2026

QNB Corp.

(Exact name of registrant as specified in its charter)

 

Pennsylvania

0-17706

23-2318082

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

 

15 North Third Street, P.O. Box 9005, Quakertown, PA 18951-9005

(Address of principal executive offices, including zip code)

 

(215) 538-5600

(Registrant's telephone number, including area code)

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Securities registered pursuant to Section 12(b) of the Act: None.

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock

 

QNBC

 

N/A

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

 

☐

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

☐

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

 

☐

 

Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 2.02

Results of Operations and Financial Condition

 

On July 28, 2026, QNB Corp. announced its consolidated financial results for the second quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information included in this Item, as well as Exhibit 99.1, referenced herein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 unless specifically incorporated in such filing.

 

Item 9.01

Financial Statements and Exhibits

 

The following exhibits are filed herewith:

 

Exhibit No.

Description

D

 

 

 

 

 

99.1

News release disseminated on July 28, 2026 by QNB Corp.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

QNB Corp.

 

 

 

 

 

 

 

By:

/s/ Jeffrey Lehocky

 

 

Jeffrey Lehocky

 

 

Chief Financial Officer

 

 

 

 

Dated: July 28, 2026

 

 

 

 

 

img160341895_0.jpg

PO Box 9005

Quakertown, PA 18951-9005

215.538.5600

800.491.9070

QNBBank.com

 

 

FOR IMMEDIATE RELEASE

 

 

QNB CORP. REPORTS

EARNINGS FOR SECOND QUARTER 2026

 

QUAKERTOWN, PA (July 28, 2026) QNB Corp. (the “Company” or “QNB”) (OTCQX: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the second quarter of 2026 of $3,015,000 or $0.60 per share on a diluted basis. The acquisition of Victory Bancorp, Inc. ("Victory"), a highly complementary community banking franchise headquartered in Limerick, Pennsylvania, was officially closed on April 1, 2026, creating a franchise with nearly $2.4 billion in assets and expanding our presence deeper into Montgomery County. This strategic combination brings together two relationship-focused institutions with shared values, similar operating cultures, and strong community ties. Results for the three and six months of 2026 include three months of post-merger activity related to the acquisition of Victory. Net income for the second quarter of 2026 included merger-related cost, net of tax, of $2,227,000. Excluding the impact of the merger-related costs, net income was $ 5,242,000 and adjusted diluted earnings per share was $1.05*. This compares to net income of $3,883,000, or $1.04 per share on a diluted basis, for the same period in 2025. For the six months ended June 30, 2026, QNB reported net income of $5,780,000, or $1.32 per share on a diluted basis. Net income included merger-related costs, net of tax, of $3,249,000. Excluding the impact of the merger-related cost, net income was $ 9,029,000 and adjusted diluted earnings per share was $2.06*. This compares to net income of $6,461,000, or $1.74 per share on a diluted basis, reported for the same period in 2025. The merger-related costs are significant one-time costs and are not normal recurring operating expenses.

 

For the second quarter ended June 30, 2026, the annualized rate of return on average assets (ROAA) and average shareholders’ equity (ROAE) was 0.50% and 6.65%, respectively. Adjusted ROAA and ROAE, excluding the impact of the merger-related cost, for the three-month period of 2026 was 0.88% and 11.56%, respectively*. This compares with 0.83% and 14.25%, respectively, for the second quarter 2025. For the six months ended June 30, 2026, QNB reported ROAA and ROAE was 0.54% and 7.38%, respectively. Adjusted ROAA and ROAE, excluding the impact of the merger-related cost, for the six-month period of 2026 was 0.85% and 11.54%, respectively*. This compares with 0.69% and 12.02%, respectively, for the same period in 2025.

 

* QNB uses non-GAAP financial information in its analysis of performance. These non-GAAP ratios and calculations provide a better understanding of ongoing operations and comparability with prior period results by showing the effects of significant gains and charges in the periods presented. QNB believes that investors may use these non-GAAP measures to analyze QNB’s financial performance without the impact of unusual items or events that may obscure trends. This non-GAAP data is not a substitute for GAAP results and should be considered in addition to results prepared in accordance with GAAP. Non-GAAP financial measures include risks as companies might calculate these measures differently and persons might disagree as to the appropriateness of items included in these measures. Please see attached table "Impact of Merger-Related Costs--GAAP to Non-GAAP Measure Reconciliation."

 

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., included three months of post-merger activity and improved for the quarter ended June 30, 2026, in comparison with the same period in 2025, due primarily to improvement in the interest margin causing a $6,072,000 increase in net interest income and a $499,000 increase in non-interest income; this was partly offset by an increase in non-interest expense of $6,377,000 of which $2,677,000 was due to merger-related costs. The contribution from QNB Corp., which

included three months of post-merger activity, for the quarter ended June 30, 2026, declined compared with the same period in 2025, primarily due to a decrease in net interest income of $400,000, related to the subordinated debt acquired in the acquisition, and an increase in non-interest expense of $790,000, primarily due to merger-related expenses of $407,000.

 

The following table presents disaggregated net income (loss):

 

Three months ended,

 

 

 

 

 

Six months ended,

 

 

 

 

 

6/30/2026

 

 

6/30/2025

 

 

Variance

 

 

6/30/2026

 

 

6/30/2025

 

 

Variance

 

QNB Bank

$

4,575,000

 

 

$

4,679,000

 

 

$

(104,000

)

 

$

8,334,000

 

 

$

7,971,000

 

 

$

363,000

 

QNB Corp

 

(1,560,000

)

 

 

(796,000

)

 

 

(764,000

)

 

 

(2,554,000

)

 

 

(1,510,000

)

 

 

(1,044,000

)

Consolidated net income

$

3,015,000

 

 

$

3,883,000

 

 

$

(868,000

)

 

$

5,780,000

 

 

$

6,461,000

 

 

$

(681,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Consolidated net income excluding impact of merger-related costs (Non-GAAP*)

$

5,242,000

 

 

$

3,883,000

 

 

$

1,359,000

 

 

$

9,029,000

 

 

$

6,461,000

 

 

$

2,568,000

 

 

Total assets as of June 30, 2026 were $2,398,970,000 compared with $1,906,005,000 at December 31, 2025. Loans receivable increased to $1,716,599,000 and total deposits increased to $2,067,151,000.

 

“Our second-quarter results reflect the strength of our core banking franchise and the successful completion of the Victory Bancorp acquisition,” said Dave Freeman, President and Chief Executive Officer. “While reported earnings were impacted by merger-related expenses, adjusted results demonstrated meaningful earnings growth driven by higher net interest income, improved net interest margin, and the addition of a quality loan and deposit portfolio. We are pleased with the early results of the integration and remain focused on delivering long-term value for our shareholders, customers, and communities.”

 

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended June 2026 totaled $18,351,000, an increase of $5,699,000, from the same period in 2025. Tax-equivalent net interest margin was 3.16% for the second quarter of 2026 and 2.69% for the same period in 2025, an increase of 47 basis points. Tax-equivalent net interest margin was 3.00% for the six months ended June 30, 2026, compared with 2.60% for the same period in 2025.

 

The yield on earning assets was 5.26% for the second quarter of 2026 compared to 4.90% for the second quarter of 2025, an increase of 36 basis points. For the six-month period ended June 30, 2026, the yield on earning assets was 5.06%, compared with 4.85% for the same period in 2025; an increase of 21 basis points.

 

The cost of interest-bearing liabilities was 2.54% for the second quarter ended June 30, 2026, compared with 2.68% for the same period in 2025, a decrease of 14 basis points. For the six-month period ended June 30, 2026, the cost of interest-bearing liabilities was 2.49%, compared with 2.72% for the same period in 2025, a decrease of 23 basis points.

 

Quarterly average loan growth of $493,981,000 was offset by an increase in average deposits of $426,776,000 an increase in subordinated debt of $14,850,000 and an increase in shareholders' equity of $72,612,000, primarily due to the acquisition as $408,379,000 in loans, $409,165,000 in deposits and $47,101,000 in equity were added upon the close of the Victory merger. Loan growth was primarily in commercial real estate, which comprised 54.4% of average earning assets in the second quarter of 2026 compared with 45.5% for the same period in 2025, and the increases in both rates and volume in commercial real estate loans contributed to the 29 basis-point increase in the yield on loans. The average rate paid on interest-bearing deposits decreased 12 basis points. The ten basis point decrease in the rate on subordinated debt was due to volume.

 

Asset Quality, Provision for Credit Losses on Loans and Allowance for Credit Losses

 

QNB recorded a $218,000 provision for credit losses on loans in the second quarter of 2026 compared to a $145,000 reversal of provision in the second quarter of 2025. QNB recorded a $521,000 provision for credit losses on loans in the six months ended June 30, 2026 compared to a $406,000 provision in the same period of 2025. QNB added $3,020,00 in allowance for credit losses due to the acquisition. QNB's allowance for credit losses on loans of $12,770,000 represents 0.74% of loans receivable at June 30, 2026, compared to $9,215,000, or 0.73% of loans receivable at December 31, 2025. Net loan recoveries were $1,000 for the quarter ended June 30, 2026, compared with recoveries of $16,000 for the same period in 2025. Net recoveries for the six months ended June 30, 2026 were $14,000 compared with recoveries of $19,000 for the same period of 2025.

 

Total non-performing loans, which represent loans on non-accrual status and loans past due 90 days or more and still accruing interest, were $10,418,000, or 0.61% of loans receivable at June 30, 2026, compared with $8,793,000, or 0.70% of loans receivable at December 31, 2025. The increase was primarily due to two commercial and one retail customer. In cases where there is a collateral shortfall on non-accrual loans, specific reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. At June 30, 2026, $7,832,000, or approximately 75% of the loans classified as non-accrual, are current or past due less than 30 days. Commercial loans classified as substandard or doubtful loans totaled $49,159,000 at June 30, 2026, compared with $39,516,000 at December 31, 2025, an increase of $9,937,000 which includes $6,475,000 of commercial real estate loans and $3,808,000 of commercial and industrial loans acquired.

 

Non-Interest Income

 

Total non-interest income for 2026 includes three months of impact from the acquisition. Noninterest income was $2,139,000 for the second quarter of 2026 compared with $1,652,000 for the same period in 2025; and $3,940,000 for the six months ended June 30, 2026 compared with $3,236,000 for the same period of 2025. The Bank also completed the exchange offer to convert its Visa B-2 shares to B-3 and C shares; the Bank subsequently converted one-third of the Visa C shares to Visa A shares and recorded a $268,000 unrealized gain. Non-interest income for the three- and six-months ended June 30, 2026 also included $96,000 of realized gains on the sales of investment securities and a $303,000 loss on the termination of an interest-rate swap acquired in the acquisition.

 

Fees for services to customers increased $173,000 for the quarter ended June, 2026, as overdraft fees increased $44,000 and other deposit-related fees increased $127,000. ATM and debit card income increased $87,000. Retail brokerage and advisory income increased $8,000 for the same period. Other non-interest income increased $126,000 for the same period due to an increase in bank-owned life insurance of $52,000, an increase in letter of credit fees of $44,000 and an increase in gains on sales of loans of $32,000.

 

Fees for services to customers increased $239,000 for the six months ended June, 2026, as overdraft fees increased $97,000 and other deposit-related fees increased $142,000. ATM and debit card income increased $172,000. Retail brokerage and advisory income increased $70,000 for the same six-month period. Other non-interest income increased $140,000 for the six-month period due to an increase in bank-owned life insurance of $57,000, an increase in letter of credit fees of $43,000 and an increase in gains on sales of loans of $22,000.

 

Non-Interest Expense

Total non-interest expense for 2026 includes three months of impact from the acquisition. Total non-interest expense was $16,436,000 for the second quarter of 2026 compared with $9,562,000 for the same period in 2025. Excluding pre-tax merger-related costs of $3,084,000, non-interest expense increased $3,790,000 for the second quarter of 2026, compared to the same period in 2025. Total non-interest expense was $27,574,000 for the six months ended June 30, 2026 compared with $18,931,000 for the same period in 2025. Excluding pre-tax merger-related costs of $3,972,000, non-interest expense increased $4,671,000 for the six months ended June 30, 2026, compared to the same period in 2025.

 

Salaries and benefits expense increased $1,949,000 to $7,200,000 in the second quarter of 2026, compared to the same period in 2025. Salary expense and related payroll taxes increased $1,570,000 to $6,017,000 and benefits expense increased $379,000 to $1,183,000 when comparing the two periods.

 

For the second quarter of 2026, net occupancy and furniture and equipment expense increased $508,000 to $2,189,000; software maintenance increased $291,000, rental expense increased $135,000 and other maintenance, utilities and costs increased $82,000. Other non-interest expense for the second quarter increased $1,333,000 due to an increase in third-party services of $405,000, core deposit amortization of $332,000, bank shares tax increased $205,000, business development cost increased $82,000, director fees increased $65,000, debit card expense increased $50,000, courier expense increased $36,000, FDIC insurance increased $33,000, communications and supplies increased $30,000, additional make-whole agreement reserve of $23,000 related the Visa stock exchange, regulatory assessments increased $22,000 and various other expenses increased a net total of $50,000. Six-month results for non-interest expense are similar to those discussed for the second quarter of 2026.

 

Income Taxes

Provision for income taxes decreased $188,000 to $817,000 in the second quarter of 2026 and decreased $105,000 to $1,524,000 for the six months ended June 30, 2026, due to lower taxable income, compared with the same periods in 2025. The effective tax rate increased for both the three- and six-month periods ended June 30, 2026 to 21.3% and 20.9%, respectively, from 20.6% and 20.1% for the same periods in 2025, respectively, due non-taxable merger-related costs.

 

About the Company

 

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates fourteen branches in Bucks, Lehigh and Montgomery Counties along with two loan production offices in Montgomery and Berks Counties. The Bank offers commercial, small business, and personal customers banking services, borrowing solutions, and cash management tools in the communities they serve. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at QNBBank.com.

 

Forward Looking Statement

This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including "Item lA. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

 

Contacts:

David W. Freeman

Jeffrey Lehocky

 

President & Chief Executive Officer

Chief Financial Officer

 

215-538-5600 x-5619

215-538-5600 x-5716

 

dfreeman@QNBbank.com

jlehocky@QNBbank.com

 

 

 

 

QNB Corp.

 

Consolidated Selected Financial Data (unaudited)

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period End)

6/30/26

 

3/31/26

 

12/31/25

 

9/30/25

 

6/30/25

 

Assets

$

2,398,970

 

$

1,923,123

 

$

1,906,005

 

$

1,903,244

 

$

1,884,828

 

Cash and cash equivalents

 

79,340

 

 

56,603

 

 

50,297

 

 

66,331

 

 

66,471

 

Investment securities

 

 

 

 

 

 

 

 

 

 

Debt securities, AFS

 

516,978

 

 

528,007

 

 

542,830

 

 

538,318

 

 

544,262

 

Loans held-for-sale

 

395

 

 

1,199

 

 

246

 

 

—

 

 

1,166

 

Loans receivable

 

1,716,599

 

 

1,282,773

 

 

1,262,074

 

 

1,246,529

 

 

1,218,539

 

Allowance for credit losses on loans

 

(12,770

)

 

(9,531

)

 

(9,215

)

 

(9,255

)

 

(9,169

)

Net loans

 

1,703,829

 

 

1,273,242

 

 

1,252,859

 

 

1,237,274

 

 

1,209,370

 

Deposits

 

2,067,151

 

 

1,653,431

 

 

1,642,511

 

 

1,681,540

 

 

1,651,667

 

Demand, non-interest bearing

 

266,120

 

 

187,580

 

 

189,957

 

 

189,492

 

 

201,460

 

Interest-bearing demand, money market and savings

 

1,367,300

 

 

1,099,480

 

 

1,076,757

 

 

1,104,761

 

 

1,060,688

 

Time

 

433,731

 

 

366,371

 

 

375,797

 

 

387,287

 

 

389,519

 

Short-term borrowings

 

75,428

 

 

86,806

 

 

80,601

 

 

48,703

 

 

67,464

 

Long-term debt

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Subordinated debt

 

54,018

 

 

39,318

 

 

39,268

 

 

39,218

 

 

39,168

 

Shareholders' equity

 

183,514

 

 

131,384

 

 

129,563

 

 

121,487

 

 

113,269

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data (Period End)

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

10,418

 

$

9,614

 

$

8,793

 

$

8,947

 

$

8,947

 

Loans past due 90 days or more and still accruing

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Non-performing loans

 

10,418

 

 

9,614

 

 

8,793

 

 

8,947

 

 

8,947

 

Other real estate owned and repossessed assets

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Non-performing assets

$

10,418

 

$

9,614

 

$

8,793

 

$

8,947

 

$

8,947

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans

$

12,770

 

$

9,531

 

$

9,215

 

$

9,255

 

$

9,169

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans / Loans excluding held-for-sale

 

0.61

%

 

0.75

%

 

0.70

%

 

0.72

%

 

0.73

%

Non-performing assets / Assets

 

0.43

%

 

0.50

%

 

0.46

%

 

0.47

%

 

0.47

%

Allowance for credit losses on loans / Loans excluding held-for-sale

 

0.74

%

 

0.74

%

 

0.73

%

 

0.74

%

 

0.75

%

 

 

 

QNB Corp.

 

Consolidated Selected Financial Data (unaudited)

 

(Dollars in thousands, except per share data)

Three months ended,

 

 

Six months ended,

 

For the period:

6/30/26

 

3/31/26

 

12/31/25

 

9/30/25

 

6/30/25

 

 

6/30/26

 

6/30/25

 

Interest income

$

30,631

 

$

22,476

 

$

23,812

 

$

23,518

 

$

23,110

 

 

$

53,107

 

$

45,308

 

Interest expense

 

12,280

 

 

9,367

 

 

9,770

 

 

10,520

 

 

10,458

 

 

 

21,647

 

 

21,119

 

Net interest income

 

18,351

 

 

13,109

 

 

14,042

 

 

12,998

 

 

12,652

 

 

 

31,460

 

 

24,189

 

(Reversal of) provision for credit losses

 

222

 

 

300

 

 

(48

)

 

93

 

 

(146

)

 

 

522

 

 

404

 

Net interest income after provision for credit losses

 

18,129

 

 

12,809

 

 

14,090

 

 

12,905

 

 

12,798

 

 

 

30,938

 

 

23,785

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees for services to customers

 

658

 

 

513

 

 

533

 

 

521

 

 

485

 

 

 

1,171

 

 

932

 

ATM and debit card

 

811

 

 

741

 

 

835

 

 

776

 

 

724

 

 

 

1,552

 

 

1,380

 

Retail brokerage and advisory income

 

148

 

 

203

 

 

171

 

 

196

 

 

140

 

 

 

351

 

 

281

 

Net gain on sale of securities

 

96

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

96

 

 

—

 

Net unrealized gain on equity securities

 

268

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

268

 

 

—

 

Net loss on interest-rate swap termination

 

(303

)

 

—

 

 

—

 

 

—

 

 

—

 

 

 

(303

)

 

—

 

Net (loss) gain on sale of loans

 

36

 

 

8

 

 

—

 

 

41

 

 

4

 

 

 

44

 

 

22

 

Other

 

425

 

 

336

 

 

335

 

 

313

 

 

299

 

 

 

761

 

 

621

 

Total non-interest income

 

2,139

 

 

1,801

 

 

1,874

 

 

1,847

 

 

1,652

 

 

 

3,940

 

 

3,236

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

7,200

 

 

5,616

 

 

5,730

 

 

5,248

 

 

5,251

 

 

 

12,816

 

 

10,283

 

Net occupancy and furniture and equipment

 

2,189

 

 

1,892

 

 

1,649

 

 

1,688

 

 

1,681

 

 

 

4,081

 

 

3,417

 

Merger-related expense

 

3,084

 

 

888

 

 

619.00

 

 

519.00

 

 

—

 

 

 

3,972

 

 

—

 

Other

 

3,963

 

 

2,742

 

 

2,696

 

 

2,727

 

 

2,630

 

 

 

6,705

 

 

5,231

 

Total non-interest expense

 

16,436

 

 

11,138

 

 

10,694

 

 

10,182

 

 

9,562

 

 

 

27,574

 

 

18,931

 

Income before income taxes

 

3,832

 

 

3,472

 

 

5,270

 

 

4,570

 

 

4,888

 

 

 

7,304

 

 

8,090

 

Provision for income taxes

 

817

 

 

707

 

 

1,289

 

 

922

 

 

1,005

 

 

 

1,524

 

 

1,629

 

Net income

$

3,015

 

$

2,765

 

$

3,981

 

$

3,648

 

$

3,883

 

 

$

5,780

 

$

6,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share and Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - basic

$

0.61

 

$

0.74

 

$

1.07

 

$

0.98

 

$

1.05

 

 

$

1.32

 

$

1.74

 

Net income - diluted

$

0.60

 

$

0.73

 

$

1.06

 

$

0.98

 

$

1.04

 

 

$

1.32

 

$

1.74

 

Book value

$

36.87

 

$

34.72

 

$

34.65

 

$

32.59

 

$

30.46

 

 

$

36.87

 

$

30.46

 

Cash dividends

$

0.39

 

$

0.39

 

$

0.38

 

$

0.38

 

$

0.38

 

 

$

0.78

 

$

0.76

 

Average common shares outstanding -basic

 

4,968,665

 

 

3,760,664

 

 

3,730,591

 

 

3,721,501

 

 

3,710,878

 

 

 

4,368,001

 

 

3,705,396

 

Average common shares outstanding -diluted

 

5,001,610

 

 

3,775,579

 

 

3,745,230

 

 

3,735,993

 

 

3,724,808

 

 

 

4,390,153

 

 

3,718,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average asset

 

0.50

%

 

0.59

%

 

0.83

%

 

0.76

%

 

0.83

%

 

 

0.54

%

 

0.69

%

Return on average shareholders' equity

 

6.65

%

 

8.40

%

 

12.52

%

 

12.49

%

 

14.25

%

 

 

7.38

%

 

12.02

%

Net interest margin (tax equivalent)

 

3.16

%

 

2.82

%

 

2.95

%

 

2.72

%

 

2.69

%

 

 

3.00

%

 

2.60

%

Efficiency ratio (tax equivalent)

 

79.90

%

 

73.97

%

 

66.79

%

 

68.09

%

 

66.39

%

 

 

77.39

%

 

68.43

%

Average shareholders' equity to total average assets

 

7.59

%

 

6.99

%

 

6.64

%

 

6.09

%

 

5.79

%

 

 

7.33

%

 

5.77

%

Net loan (recoveries) charge-offs

$

(1

)

$

(13

)

$

(4

)

$

12

 

$

(16

)

 

$

(14

)

$

(19

)

Net loan (recoveries) charge-offs-annualized / Average loans excluding held-for-sale

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

-0.01

%

 

 

0.00

%

 

0.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Average)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

2,395,752

 

$

1,909,962

 

$

1,901,870

 

$

1,904,529

 

$

1,887,138

 

 

$

2,154,199

 

$

1,880,127

 

Investment securities

 

587,867

 

 

596,894

 

 

604,727

 

 

612,204

 

 

621,128

 

 

 

592,355

 

 

623,827

 

Loans receivable

 

1,709,599

 

 

1,273,380

 

 

1,249,481

 

 

1,224,490

 

 

1,216,011

 

 

 

1,492,696

 

 

1,213,173

 

Deposits

 

2,074,766

 

 

1,638,840

 

 

1,671,921

 

 

1,678,118

 

 

1,647,990

 

 

 

1,858,007

 

 

1,640,634

 

Shareholders' equity

 

181,911

 

 

133,514

 

 

126,202

 

 

115,907

 

 

109,299

 

 

 

157,846

 

 

108,406

 

 

QNB Corp. (Consolidated)

 

Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30, 2026

 

 

June 30, 2025

 

 

Average

 

Average

 

 

 

 

Average

 

Average

 

 

 

 

Balance

 

Rate

 

Interest

 

 

Balance

 

Rate

 

Interest

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold

$

1,163

 

 

3.63

%

$

11

 

 

$

—

 

 

0.00

%

$

—

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. Treasury

 

20,812

 

 

3.68

 

 

191

 

 

 

21,032

 

 

4.24

 

 

223

 

   U.S. Government agencies

 

75,972

 

 

1.18

 

 

224

 

 

 

75,963

 

 

1.18

 

 

224

 

   State and municipal

 

104,927

 

 

2.35

 

 

617

 

 

 

105,090

 

 

2.88

 

 

756

 

   Mortgage-backed and CMOs

 

318,255

 

 

1.95

 

 

1,551

 

 

 

354,349

 

 

2.46

 

 

2,184

 

   Corporate debt securities and mutual funds

 

67,798

 

 

5.90

 

 

1,000

 

 

 

64,694

 

 

6.38

 

 

1,031

 

Equities

 

103

 

 

-

 

 

-

 

 

 

 

 

-

 

 

-

 

     Total investment securities

 

587,867

 

 

2.44

 

 

3,583

 

 

 

621,128

 

 

2.84

 

 

4,418

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

  Commercial real estate

 

1,276,622

 

 

6.31

 

 

20,097

 

 

 

863,096

 

 

5.94

 

 

12,775

 

  Residential real estate

 

122,950

 

 

4.63

 

 

1,424

 

 

 

114,600

 

 

4.38

 

 

1,255

 

  Home equity loans

 

102,997

 

 

6.13

 

 

1,575

 

 

 

70,666

 

 

6.41

 

 

1,130

 

  Commercial and industrial

 

181,167

 

 

7.12

 

 

3,213

 

 

 

145,261

 

 

7.41

 

 

2,682

 

  Consumer loans

 

5,328

 

 

7.59

 

 

101

 

 

 

3,355

 

 

7.70

 

 

65

 

  Tax-exempt loans

 

21,242

 

 

5.31

 

 

281

 

 

 

19,347

 

 

4.23

 

 

205

 

     Total loans, net of unearned income*

 

1,710,306

 

 

6.26

 

 

26,691

 

 

 

1,216,325

 

 

5.97

 

 

18,112

 

Other earning assets

 

45,439

 

 

4.05

 

 

429

 

 

 

61,355

 

 

4.45

 

 

680

 

     Total earning assets

 

2,344,775

 

 

5.26

 

 

30,714

 

 

 

1,898,808

 

 

4.90

 

 

23,210

 

Cash and due from banks

 

28,030

 

 

 

 

 

 

 

13,806

 

 

 

 

 

Accumulated other comprehensive loss, net of tax

 

(45,720

)

 

 

 

 

 

 

(59,921

)

 

 

 

 

Allowance for credit losses on loans

 

(12,668

)

 

 

 

 

 

 

(9,376

)

 

 

 

 

Other assets

 

81,335

 

 

 

 

 

 

 

43,864

 

 

 

 

 

     Total assets

$

2,395,752

 

 

 

 

 

 

$

1,887,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

  Interest-bearing demand

$

483,798

 

 

1.19

%

 

1,438

 

 

$

376,735

 

 

0.94

%

 

888

 

  Municipals

 

150,200

 

 

3.26

 

 

1,222

 

 

 

146,214

 

 

3.92

 

 

1,427

 

  Money market

 

386,952

 

 

2.79

 

 

2,691

 

 

 

259,621

 

 

2.88

 

 

1,862

 

  Savings

 

352,087

 

 

1.55

 

 

1,361

 

 

 

281,076

 

 

1.29

 

 

901

 

  Time < $250

 

358,826

 

 

3.30

 

 

2,956

 

 

 

334,437

 

 

3.79

 

 

3,159

 

  Time > $250

 

82,968

 

 

3.56

 

 

736

 

 

 

51,832

 

 

4.08

 

 

527

 

     Total interest-bearing deposits

 

1,814,831

 

 

2.30

 

 

10,404

 

 

 

1,449,915

 

 

2.42

 

 

8,764

 

Short-term borrowings

 

69,006

 

 

3.46

 

 

596

 

 

 

70,942

 

 

3.90

 

 

689

 

Long-term debt

 

—

 

 

—

 

 

—

 

 

 

5,495

 

 

4.79

 

 

67

 

Subordinated debt

 

53,991

 

 

9.48

 

 

1,280

 

 

 

39,141

 

 

9.58

 

 

938

 

     Total borrowings

 

122,997

 

 

6.12

 

 

1,876

 

 

 

115,578

 

 

5.88

 

 

1,694

 

     Total interest-bearing liabilities

 

1,937,828

 

 

2.54

 

 

12,280

 

 

 

1,565,493

 

 

2.68

 

 

10,458

 

Non-interest-bearing deposits

 

259,935

 

 

 

 

 

 

 

198,075

 

 

 

 

 

Other liabilities

 

16,078

 

 

 

 

 

 

 

14,314

 

 

 

 

 

Shareholders' equity

 

181,911

 

 

 

 

 

 

 

109,299

 

 

 

 

 

    Total liabilities and

 

 

 

 

 

 

 

 

 

 

 

 

 

       shareholders' equity

$

2,395,752

 

 

 

 

 

 

$

1,887,181

 

 

 

 

 

Net interest rate spread

 

 

 

2.72

%

 

 

 

 

 

 

2.22

%

 

 

Margin/net interest income

 

 

 

3.16

%

$

18,434

 

 

 

 

 

2.69

%

$

12,752

 

Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%

 

Non-accrual loans and investment securities are included in earning assets.

 

* Includes loans held-for-sale

 

 

 

 

 

 

QNB Corp. (Consolidated)

 

Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

June 30, 2026

 

 

June 30, 2025

 

 

Average

 

Average

 

 

 

 

Average

 

Average

 

 

 

 

Balance

 

Rate

 

Interest

 

 

Balance

 

Rate

 

Interest

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold

$

585

 

 

3.63

%

$

11

 

 

$

—

 

 

0.00

%

$

—

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. Treasury

 

20,819

 

 

3.70

 

 

382

 

 

 

20,596

 

 

4.31

 

 

440

 

   U.S. Government agencies

 

75,971

 

 

1.18

 

 

448

 

 

 

75,962

 

 

1.18

 

 

448

 

   State and municipal

 

104,727

 

 

2.33

 

 

1,220

 

 

 

105,172

 

 

2.87

 

 

1,510

 

   Mortgage-backed and CMOs

 

321,556

 

 

1.93

 

 

3,099

 

 

 

358,969

 

 

2.45

 

 

4,392

 

   Corporate debt securities and mutual funds

 

69,230

 

 

5.86

 

 

2,028

 

 

 

63,128

 

 

6.62

 

 

2,089

 

   Equities

 

52

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

—

 

     Total investment securities

 

592,355

 

 

2.42

 

 

7,177

 

 

 

623,827

 

 

2.85

 

 

8,879

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

  Commercial real estate

 

1,094,783

 

 

6.18

 

 

33,541

 

 

 

860,363

 

 

5.82

 

 

24,844

 

  Residential real estate

 

122,661

 

 

4.59

 

 

2,816

 

 

 

114,436

 

 

4.36

 

 

2,493

 

  Home equity loans

 

89,839

 

 

6.00

 

 

2,674

 

 

 

69,327

 

 

6.41

 

 

2,204

 

  Commercial and industrial

 

161,296

 

 

7.08

 

 

5,661

 

 

 

146,962

 

 

7.41

 

 

5,399

 

  Consumer loans

 

4,137

 

 

7.70

 

 

158

 

 

 

3,400

 

 

7.69

 

 

130

 

  Tax-exempt loans

 

20,444

 

 

5.09

 

 

516

 

 

 

19,073

 

 

4.19

 

 

397

 

     Total loans, net of unearned income*

 

1,493,160

 

 

6.13

 

 

45,366

 

 

 

1,213,561

 

 

5.89

 

 

35,467

 

Other earning assets

 

41,293

 

 

3.82

 

 

783

 

 

 

54,536

 

 

4.44

 

 

1,202

 

     Total earning assets

 

2,127,393

 

 

5.06

 

 

53,337

 

 

 

1,891,924

 

 

4.85

 

 

45,548

 

Cash and due from banks

 

20,505

 

 

 

 

 

 

 

13,517

 

 

 

 

 

Accumulated other comprehensive loss, net of tax

 

(45,094

)

 

 

 

 

 

 

(59,954

)

 

 

 

 

Allowance for credit losses on loans

 

(10,992

)

 

 

 

 

 

 

(9,059

)

 

 

 

 

Other assets

 

62,387

 

 

 

 

 

 

 

43,699

 

 

 

 

 

     Total assets

$

2,154,199

 

 

 

 

 

 

$

1,880,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

  Interest-bearing demand

$

441,756

 

 

1.08

%

 

2,369

 

 

$

378,504

 

 

0.98

%

 

1,832

 

  Municipals

 

142,712

 

 

3.23

 

 

2,285

 

 

 

147,887

 

 

3.93

 

 

2,883

 

  Money market

 

321,450

 

 

2.69

 

 

4,294

 

 

 

257,952

 

 

2.88

 

 

3,680

 

  Savings

 

318,359

 

 

1.43

 

 

2,264

 

 

 

280,371

 

 

1.29

 

 

1,794

 

  Time < $250

 

337,703

 

 

3.34

 

 

5,594

 

 

 

333,536

 

 

3.89

 

 

6,442

 

  Time > $250

 

71,069

 

 

3.59

 

 

1,266

 

 

 

50,317

 

 

4.19

 

 

1,045

 

     Total interest-bearing deposits

 

1,633,049

 

 

2.23

 

 

18,072

 

 

 

1,448,567

 

 

2.46

 

 

17,676

 

Short-term borrowings

 

76,249

 

 

3.59

 

 

1,358

 

 

 

59,300

 

 

3.90

 

 

1,145

 

Long-term debt

 

—

 

 

—

 

 

—

 

 

 

17,735

 

 

4.74

 

 

423

 

Subordinated debt

 

46,681

 

 

9.50

 

 

2,217

 

 

 

39,117

 

 

9.59

 

 

1,875

 

     Total borrowings

 

122,930

 

 

5.86

 

 

3,575

 

 

 

116,152

 

 

5.98

 

 

3,443

 

     Total interest-bearing liabilities

 

1,755,979

 

 

2.49

 

 

21,647

 

 

 

1,564,719

 

 

2.72

 

 

21,119

 

Non-interest-bearing deposits

 

224,958

 

 

 

 

 

 

 

192,067

 

 

 

 

 

Other liabilities

 

15,416

 

 

 

 

 

 

 

14,935

 

 

 

 

 

Shareholders' equity

 

157,846

 

 

 

 

 

 

 

108,406

 

 

 

 

 

    Total liabilities and

 

 

 

 

 

 

 

 

 

 

 

 

 

       shareholders' equity

$

2,154,199

 

 

 

 

 

 

$

1,880,127

 

 

 

 

 

Net interest rate spread

 

 

 

2.57

%

 

 

 

 

 

 

2.13

%

 

 

Margin/net interest income

 

 

 

3.00

%

$

31,690

 

 

 

 

 

2.60

%

$

24,429

 

Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%

 

Non-accrual loans and investment securities are included in earning assets.

 

* Includes loans held-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QNB Corp.

 

Consolidated Selected Financial Data (unaudited)

 

Impact of Merger-Related Costs--GAAP to Non-GAAP Measure Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

 

 

Three months ended,

 

 

Six months ended,

 

For the period:

6/30/2026

 

 

6/30/2025

 

 

Variance

 

 

6/30/2026

 

 

6/30/2025

 

 

Variance

 

Net income (GAAP)

$

3,015

 

 

$

3,883

 

 

$

(868

)

 

$

5,780

 

 

$

6,461

 

 

$

(681

)

Merger-related costs

 

3,084

 

 

 

—

 

 

 

3,084

 

 

 

3,972

 

 

 

—

 

 

 

3,972

 

Income tax benefit

 

(857

)

 

 

—

 

 

 

(857

)

 

 

(723

)

 

 

—

 

 

 

(723

)

Merger-related costs, net of tax

 

2,227

 

 

 

—

 

 

 

2,227

 

 

 

3,249

 

 

 

—

 

 

 

3,249

 

Net income excluding impact of merger-related costs (Non-GAAP)

$

5,242

 

 

$

3,883

 

 

$

1,359

 

 

$

9,029

 

 

$

6,461

 

 

$

2,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share and Earnings Per Share (EPS) Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS using Net income (GAAP)

$

0.61

 

 

$

1.05

 

 

$

(0.44

)

 

$

1.32

 

 

$

1.74

 

 

$

(0.42

)

EPS using Net income excluding impact of merger-related costs (Non-GAAP)

$

1.06

 

 

$

1.05

 

 

$

0.01

 

 

$

2.06

 

 

$

1.74

 

 

$

0.32

 

Fully-diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS using Net income (GAAP)

$

0.60

 

 

$

1.04

 

 

$

(0.44

)

 

$

1.32

 

 

$

1.74

 

 

$

(0.42

)

EPS using Net income excluding impact of merger-related costs (Non-GAAP)

$

1.05

 

 

$

1.04

 

 

$

0.01

 

 

$

2.06

 

 

$

1.74

 

 

$

0.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding -basic

 

4,968,665

 

 

 

3,710,878

 

 

 

 

 

 

4,368,001

 

 

 

3,705,396

 

 

 

 

Average common shares outstanding -diluted

 

5,001,610

 

 

 

3,724,808

 

 

 

 

 

 

4,390,153

 

 

 

3,718,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets (ROAA):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROAA using Net income (GAAP)

 

0.50

%

 

 

0.83

%

 

-33 bp

 

 

 

0.54

%

 

 

0.69

%

 

-15 bp

 

ROAA using Net income excluding impact of merger-related costs (Non-GAAP)

 

0.88

%

 

 

0.83

%

 

5 bp

 

 

 

0.85

%

 

 

0.69

%

 

16 bp

 

Return on Average Equity (ROAE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROAE using Net income (GAAP)

 

6.65

%

 

 

14.25

%

 

-760 bp

 

 

 

7.38

%

 

 

12.02

%

 

-464 bp

 

ROAE using Net income excluding impact of merger-related costs (Non-GAAP)

 

11.56

%

 

 

14.25

%

 

-269 bp

 

 

 

11.54

%

 

 

12.02

%

 

-48 bp

 

Efficiency Ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency Ratio (GAAP)

 

79.90

%

 

 

66.39

%

 

1351 bp

 

 

 

77.39

%

 

 

68.43

%

 

896 bp

 

Efficiency Ratio excluding impact of merger-related costs (Non-GAAP)

 

64.90

%

 

 

66.39

%

 

-149 bp

 

 

 

66.24

%

 

 

68.43

%

 

-219 bp

 

 

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

2 documents

Press Releases

Other Documents