QNB reported second-quarter 2026 net income of $3.015 million, or $0.60 diluted EPS, with adjusted net income excluding merger-related costs of $5.242 million and adjusted diluted EPS of $1.05. Results include three months of activity following the April 1, 2026 acquisition of Victory, which expanded the franchise to nearly $2.4 billion in assets. Reported results included merger-related costs, net of tax, of $2.227 million for the quarter.

Financial Highlights

  • Net income (GAAP) for Q2 2026: $3,015,000; diluted EPS: $0.60.
  • Net income excluding merger-related costs (Non-GAAP): $5,242,000; adjusted diluted EPS: $1.05.
  • Net interest income for Q2 2026: $18,351,000; tax-equivalent net interest margin: 3.16% (up 47 bps year-over-year).
  • Total assets at June 30, 2026: $2,398,970,000; loans receivable: $1,716,599,000; total deposits: $2,067,151,000.
  • Total non-interest expense for Q2 2026: $16,436,000 (includes pre-tax merger-related costs of $3,084,000); provision for income taxes Q2 2026: $817,000.

Business Highlights

  • Closed acquisition of Victory on April 1, 2026, adding approximately $408.4 million in loans, $409.2 million in deposits and $47.1 million in equity, expanding presence in Montgomery County.
  • Quarter included three months of post-merger activity; average loan growth for the quarter increased notably (quarterly average loans increased by $493.981 million).
  • Loan mix shift toward commercial real estate, which comprised 54.4% of average earning assets in Q2 2026 (up from 45.5% in Q2 2025), contributing to higher loan yields.
  • Operational contributions from the bank improved net interest income and non-interest income (including a $268,000 unrealized gain from Visa share conversion and $96,000 realized gains on sales of investment securities).
  • Asset quality: non-performing loans totaled $10,418,000 (0.61% of loans) at June 30, 2026; allowance for credit losses on loans was $12,770,000 (0.74% of loans), including $3,020,000 added from the acquisition.

Original SEC Filing:

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