QNB Corp (NASDAQ: QNBC) is a community banking company that operates through its subsidiary bank, accepting deposits and originating loans to generate net interest income. The company earns money primarily on the spread between interest earned on loans and investment securities and interest paid on deposits and borrowings, supplemented by non-interest income from ATM and debit card fees, customer service fees, retail brokerage and advisory services, and merchant processing. Total deposits were $1.64 billion as of December 31, 2025, with total liabilities of $1.78 billion. Net interest income was $51.2 million for the year ended December 31, 2025, up from $42.9 million in FY2024. Net income was $14.1 million (GAAP) for FY2025. The bank carries $40.0 million in subordinated debt as of December 31, 2025, and reported a Tier 1 capital ratio of 12.39% and a leverage ratio of 9.02% as of December 31, 2025. In September 2025, QNB entered into a merger agreement with The Victory Bancorp, Inc.

Revenue model

Net interest income is the primary revenue source, generated by the spread between yields on loans and investment securities and the cost of interest-bearing deposits and borrowings. Non-interest income includes ATM and debit card fees ($3.0 million, FY2025), fees for customer services ($2.0 million, FY2025), retail brokerage and advisory fees ($648 thousand, FY2025), bank-owned life insurance income ($338 thousand, FY2025), merchant fees ($321 thousand, FY2025), and net gains on loan sales ($63 thousand, FY2025). Total non-interest income was $6.96 million for FY2025.

Products and services

Deposit accounts including demand, interest-bearing demand, money market, savings, and time deposits. Loans held for investment. Investment securities available-for-sale. Bank-owned life insurance. ATM and debit card services. Retail brokerage and advisory services. Merchant processing. Wholesale funding via FHLB borrowings and subordinated debt.

Customers and end markets

Retail and municipal deposit customers, including interest-bearing demand accounts held by municipalities. Loan customers across consumer and commercial segments. Retail brokerage and advisory clients. Merchant services customers.

Value-chain role

Community bank intermediary: accepts deposits from retail and institutional customers, deploys capital into loans and investment securities, and provides fee-based payment and advisory services. Supplements deposit funding with FHLB advances, short-term borrowings from correspondent banks, and subordinated debt.

Geographic exposure

Mid-Atlantic region, as indicated by inclusion in the S&P U.S. BMI Banks - Mid-Atlantic Region Index referenced in the FY2025 10-K filing.

Source: SEC 10-K, filed 2026-03-16

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