Core operating trends are positive with margin expansion and loan growth, but the rise in NPLs (now 0.75%) and elevated merger costs warrant caution. Monitor Q2 2026 for synergy realization from the Victory deal and any further asset quality deterioration.
Price Chart
Executive Summary
QNB Corp. reported Q1 2026 GAAP diluted EPS of $0.73 (up 5.8% YoY from $0.69) on net income of $2.765M. Net interest income rose 13.6% to $13.1M and net interest margin expanded 31 bps to 2.82%. However, non-performing loans increased to 0.75% of loans from 0.70%, and GAAP earnings were depressed by $754K in after-tax merger costs. The Victory Bancorp acquisition closed on April 1, 2026.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $0.73 vs $0.69 in Q1 2025 (+5.8%)
- Adjusted diluted EPS (ex-merger costs) $0.93
- Net interest income $13.1M, up 13.6% YoY; NIM 2.82% vs 2.51%
- Non-performing loans $9.6M, 0.75% of loans vs 0.70% at Dec 31, 2025
- Victory Bancorp acquisition closed April 1, 2026, creating ~$2.4B asset base
- Merger-related costs of $888K pre-tax ($754K after-tax) in Q1
Financial Impact
Net income grew 7.3% YoY to $2.765M, but GAAP EPS growth was muted by one-time merger costs. Net interest margin expansion and loan growth support core earnings power.
Risk Factors
- Increasing non-performing loans (up 9.3% from Dec 2025) could pressure credit costs
- Merger integration costs may persist beyond Q1
- Interest rate sensitivity: NIM expansion may slow if rate cuts materialize
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-185233 |
| Document: qnbc-20260428.htm | 0001193125-26-185233 |
| Document: 0001193125-26-185233-index-headers.html | 0001193125-26-185233 |
| Document: 0001193125-26-185233-index.html | 0001193125-26-185233 |
| Document: 0001193125-26-185233.txt | 0001193125-26-185233 |
| 8-K Data (Synthetic) | 0001193125-26-185233 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 10d ago | 8-K | $45.70 | awaiting T+20 | — | $46.00 (+0.66%) |
Aug 20, 2026 9w ago | 8-K | $44.07 $45.56 | ▼ −3.38% | ▼ −3.91% | $46.00 (−4.38%) |
Aug 20, 2026 9w ago | 424B5 | $43.87 $45.74 | ▼ −4.26% | ▼ −4.26% | $46.00 (−4.86%) |
Aug 7, 2026 11w ago | 8-K | $43.94 $45.30 | ▲ +3.10% | ▲ +3.49% | $46.00 (+4.69%) |
Jul 28, 2026 12w ago | 8-K | $43.25 $44.96 | ▲ +3.95% | ▼ −1.07% | $46.00 (+6.36%) |
Jun 2, 2026 20w ago | 8-K | $43.94 $43.90 | ▼ −0.09% | ▲ +1.47% | $46.00 (+4.69%) |
May 13, 2026 23w ago | 8-K | $44.00 $43.56 | ▼ −1.00% | ▼ −0.39% | $46.00 (+4.55%) |
Apr 28, 2026 25w ago | 8-K | $44.23 $43.94 | ▼ −0.66% | ▼ −6.12% | $46.00 (+4.00%) |
Apr 7, 2026 28w ago | 8-K | $42.00 $44.15 | ▲ +5.12% | ▼ −4.66% | $46.00 (+9.52%) |
Feb 25, 2026 34w ago | 8-K | $36.95 $39.41 | ▲ +6.66% | ▲ +11.89% | $46.00 (+24.49%) |
US Market Status
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