QNB Corp. Q2 Earnings: Merger Costs Mask Core Strength, Adjusted EPS $1.05

summarizeSummary

QNB Corp. posted Q2 GAAP EPS of $0.60, but adjusted EPS of $1.05 after stripping out merger costs tied to the Victory Bancorp acquisition. Net interest margin expanded sharply to 3.16%, and the balance sheet grew to $2.4 billion.

check_boxKey Events · Earnings and Guidance · QNBC

• Adjusted EPS Beats Year-Ago

  GAAP net income was $3.0M ($0.60 diluted EPS), but excluding $2.2M in after-tax merger costs, adjusted net income was $5.2M ($1.05 diluted EPS) vs. $3.9M ($1.04) in Q2 2025.

• Net Interest Margin Surges

  Tax-equivalent net interest margin expanded 47 bps YoY to 3.16%, driven by higher loan yields (6.26% vs. 5.97%) and lower deposit costs (2.30% vs. 2.42%).

• Merger Integration Progress

  Victory Bancorp acquisition closed April 1, 2026, adding $408M in loans and $409M in deposits. Total assets reached $2.4B. Merger-related costs of $3.1M pre-tax ($2.2M after-tax) hit Q2.

• Credit Quality Stable

  Non-performing loans were 0.61% of loans, up slightly from 0.70% at year-end 2025 due to two commercial and one retail credit. Net recoveries of $1K in Q2.

auto_awesomeAnalysis · QNBC · Finance

QNB Corp. reported Q2 net income of $3.0 million, or $0.60 per share, weighed down by $2.2 million in after-tax merger costs from the Victory Bancorp acquisition. Excluding those one-time charges, adjusted earnings were $5.2 million, or $1.05 per share — slightly ahead of the $1.04 reported a year ago. The core bank performed well: net interest margin jumped 47 basis points to 3.16%, driven by loan growth and lower deposit costs. The balance sheet swelled to $2.4 billion in assets after the merger closed April 1. Credit quality remains stable with non-performing loans at 0.61% of loans. The headline miss is entirely merger noise; the underlying franchise is delivering stronger profitability.