QNB Corp. Reports Earnings for Third Quarter 2025

QUAKERTOWN, Pa., Oct. 28, 2025 (GLOBE NEWSWIRE) -- QNB Corp. (the “Company” or “QNB”) (OTCQX: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the third quarter of 2025 of $3,648,000 or $0.98 per share on a diluted basis. This compares to net income of $3,338,000, or $0.91 per share on a diluted basis, for the same period in 2024. For the nine months ended September 30, 2025, QNB reported net income of $10,109,000, or $2.72 per share on a diluted basis. This compares to net income of $8,397,000, or $2.29 per share on a diluted basis, reported for the same period in 2024. For both the three- and nine-month periods of 2025, net income included merger-related cost of $519,000. The merger-related costs are significant one-time costs and are not normal recurring operating expenses. Diluted earnings per share excluding the impact of the merger-related cost for the three- and nine-month periods of 2025 was $1.09 and $2.83, respectively*.

On September 23, 2025, QNB Corp. and The Victory Bancorp, Inc. ("Victory") announced they have entered into a definitive agreement under which QNB will acquire Victory in an all-stock transaction, creating a bank holding company with nearly $2.4 billion in assets.  Upon the completion of the merger, the pro-forma post-merger shareholder ownership split would be approximately 76.4% for QNB and 23.6% for Victory.  The transaction is expected to close in the fourth quarter of 2025 or first quarter of 2026, subject to satisfaction of customary closing conditions, including regulatory approvals and approval from both QNB and Victory shareholders.

For the third quarter ended September 30, 2025, the annualized rate of return on average assets and average shareholders’ equity was 0.76% and 12.49%, respectively, compared with 0.74% and 13.25%, respectively, for the third quarter 2024. Return on average assets, excluding the impact of the merger-related cost, for the three- and nine-month periods of 2025 was 0.85% and 0.74%, respectively*. Return on average equity, excluding the impact of the merger-related cost, for the three- and nine-month periods of 2025 was 13.89% and 12.68%, respectively*.

* 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., improved for the quarter ended September 30, 2025, in comparison with the same period in 2024, due primarily to improvement in the interest margin causing a $2,458,000 increase in net interest income, a $187,000 increase in non-interest income and a reduction in the provision for credit losses on loans and unfunded commitments of $66,000; this was partly offset by an increase in non-interest expense of $909,000. The change in contribution from QNB Corp. for the quarter ended September 30, 2025, compared with the same period in 2024, is primarily due to a decrease in net interest income of $597,000, related to the subordinated debt issuance in 2024, an increase in non-interest expense of $642,000, primarily due to merger-related expenses, and a decrease of $302,000 in non-interest income due to realized and unrealized gains on the equity portfolio in 2024 compared to none in 2025.

The following table presents disaggregated net income (loss):

Three months ended, Nine months ended, 9/30/2025 9/30/2024 Variance 9/30/2025 9/30/2024 Variance QNB Bank$4,837,000 $3,394,000 $1,443,000 $12,808,000 $8,466,000 $4,342,000 QNB Corp (1,189,000) (56,000) (1,133,000) (2,699,000) (69,000) (2,630,000)Consolidated net income$3,648,000 $3,338,000 $310,000 $10,109,000 $8,397,000 $1,712,000

Total assets as of September 30, 2025 were $1,903,244,000 compared with $1,870,894,000 at December 31, 2024. Total cash and cash equivalents increased $15,618,000, or 30.8%, to $66,331,000, primarily due to increases in customer deposits. Loans receivable increased $30,481,000, or 2.5%, to $1,246,529,000. Total deposits increased $52,999,000, or 3.3%, to $1,681,540,000. Long-term borrowing declined $30,000,000.

“We are pleased to share another quarter of strong performance, fueled by sustained growth in Net Interest Income and continued increases in both loan and deposit balances, said Dave Freeman, President and Chief Executive Officer.  Freeman continued, our stable credit environment reflects the continued resilience of consumers and businesses as they adapt to ongoing economic pressures, including tariffs and inflation. This quarter also marked a pivotal milestone for our company with the announcement of our strategic merger with Victory Bancorp. This exciting move strengthens our long-term growth strategy and enhances our ability to deliver greater value to our communities and shareholders alike.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended September 30, 2025 totaled $12,998,000, an increase of $1,871,000, from the same period in 2024. Net interest margin was 2.72% for the third quarter of 2025 and 2.48% for the same period in 2024. Net interest margin was 2.64% for the nine months ended September 30, 2025, compared with 2.45% for the same period in 2024.

The yield on earning assets was 4.91% for the third quarter of 2025, compared with 4.86% in the third quarter of 2024; an increase of five basis points. For the nine-month period ended September 30, 2025, the yield on earning assets was 4.87%, compared with 4.71% for the same period in 2024.

The cost of interest-bearing liabilities was 2.64% for the third quarter ended September 30, 2025, compared with 2.90% for the same period in 2024, a decrease of 26 basis points. For the nine-month period ended September 30, 2025, the cost of interest-bearing liabilities was 2.70% compared with 2.77% for the same period in 2024.

Proceeds from the growth in average deposits and the issuance of subordinated debt over the past year were invested in loans, higher-yielding securities and used to pay down long-term borrowings. Loan growth was primarily in commercial real estate, which comprised 45.8% of average earning assets in the nine months of 2025 compared with 45.3% for the same period in 2024, and the increases in both rates and volume in commercial real estate loans majorly contributed to the 27 basis-point increase in the yield on loans. The increase in the available-for-sale investments portfolio was primarily in corporate debt securities. The 11-basis point increase in rate on investments was primarily due to the 66-basis point increase in the yield on corporate debt securities. The average rate paid on interest-bearing deposits decreased 27 basis points; this partly offset by the issuance of subordinated debt, resulting in a decrease in the cost of funds of seven basis points.

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

QNB recorded a $98,000 in the provision for credit losses on loans in the third quarter of 2025 compared to a $154,000 provision in the third quarter of 2024. QNB recorded a provision of $504,000 in the provision for credit losses on loans for the nine-month ended September 30, 2025 compared to a $193,000 provision for the same period of 2024. QNB's allowance for credit losses on loans of $9,255,000 represents 0.74% of loans receivable at September 30, 2025, compared to $8,744,000, or 0.72% of loans receivable at December 31, 2024. The two-basis point increase in the allowance for credit losses on loans was primarily due to reserves for collateral dependent loans partly offset by an improvement in the economic outlook. Net loan charge-offs were $12,000 for the quarter ended September 30, 2025, compared with charge-offs of $25,000 for the same period in 2024. Annualized net loan charge-offs for the quarter ended September 30, 2025 were 0.00% and annualized net loan charge-offs were 0.01% for the quarter ended September 30, 2024, of average loans receivable, respectively. Net loan recoveries were $7,000 for the nine months ended September 30, 2025, compared with charge-offs of $58,000 for the same period in 2024. Annualized net loan recoveries for the nine months ended September 30, 2025 were 0.00% compared to annualized net charge-offs of 0.01% for the same period in 2024, of average loans receivable, respectively.

Total non-performing loans, which represent loans on non-accrual status and loans past due 90 days or more and still accruing interest, were $8,947,000, or 0.72% of loans receivable at September 30, 2025, compared with $1,975,000, or 0.16% of loans receivable at December 31, 2024. The increase was primarily due to one commercial customer relationship. 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 September 30, 2025, $7,777,000, or approximately 87% 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 $34,973,000 at September 30, 2025, compared with $34,301,000 at December 31, 2024; these were comprised primarily of commercial real estate loans.

Non-Interest Income

Total non-interest income was $1,847,000 for the third quarter of 2025 compared with $1,967,000 for the same period in 2024. There were no realized and unrealized gain/loss on securities for the quarter ended September 30, 2025 compared to a net gain of $367,000 in the same period in 2024. Excluding the net realized and unrealized gains on securities, non-interest income increased $247,000, or 15.4%. During the third quarter of 2024 QNB Corp. sold equity securities at a gain of $224,000.

Fees for service to customers increased $52,000 for the quarter ended September 30, 2025, as overdraft fees increased $37,000 and other deposit-related fees increased $15,000. ATM and debit card increased $85,000 due to volume. Retail brokerage and advisory income increased $57,000 to $196,000 for the same period. Gains on sales of loans increased $22,000 due to volume of sales. Other non-interest income increased $31,000 for the same period due to an increase in letter of credit fees of $12,000 and a loss on premises and equipment disposals in 2024 of $18,000.

For the nine months ended September 30, 2025, non-interest income was $5,083,000 a decrease of $185,000 compared to the same period in 2024, primarily due to the change in fair value of the equities portfolio of $1,129,000 in 2024. QNB completed the exchange offer to convert the Bank's Visa B-1 shares to B-2 and C shares in the second quarter of 2024; the fair value of the Visa C shares was a gain of $1,419,000 at September 30, 2024. Realized loss on sale of securities in 2024 was $495,000. Excluding the net realized and unrealized gains on securities, non-interest income increased $449,000, or 9.7%. Net gain on sale of loans increased $31,000 when comparing the nine months ended September 30, 2025 with the same period in 2024. Increases in non-interest income for the nine months ended September 30, 2025 compared to the same period in 2024 comprise: fees for services to customers, ATM and debit card fees and retail brokerage and advisory, which increased $137,000, $124,000 and $119,000, respectively. Other non-interest income increased $38,000 due primarily to increases in letter of credit fees and title insurance company income partly offset by a decrease in merchant servicing income.

Non-Interest Expense

Total non-interest expense was $10,182,000 for the third quarter of 2025 compared with $8,636,000 for the same period in 2024. Excluding merger-related costs, noninterest expense increased $1,027,000 or 11.9% for the third quarter of 2025, compared to the same period in 2024. Salaries and benefits expense increased $598,000, or 12.9%, to $5,248,000 when comparing the two quarters. Salary expense and related payroll taxes increased $407,000, or 9.7%, to $4,616,000 during the third quarter of 2025 compared to the same period in 2024, primarily due to pay increases. Benefits expense increased $191,000, or 43.3%, when comparing the two periods primarily due to increase in medical costs due to timing as year-to-date costs are down $87,000.

Net occupancy and furniture and equipment expense increased $157,000, or 10.3%, to $1,688,000 for the third quarter of 2025 primarily due to software maintenance costs. Other non-interest expense increased $791,000, or 32.2%, when comparing third quarter of 2025 with the same period in 2024 due to $519,000 of merger-related costs, an increase in third-party services of $172,000 related to information technology services and consultant expense and an increase in bank shares tax of $148,000.

For the nine months ended September 30, 2025, non-interest expense was $29,113,000, an increase of $2,710,000, or 10.3%, compared to the same period in 2024. Excluding merger-related costs, noninterest expense increased $2,191,000 or 8.3% for the nine months ended September 30, 2025, compared to the same period in 2024.

Income Taxes

Provision for income taxes decreased $39,000 to $922,000 in the third quarter of 2025 due a decrease in state tax rates, compared with the same period in 2024. The effective tax rate for the quarter ended September 30, 2025 was 20.2% compared with 22.4% for the same period in 2024. The effective tax rate for the nine months ended September 30, 2025 was 20.2% compared with 20.5% for the same period in 2024.

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve branches in Bucks, Lehigh and Montgomery Counties and offers commercial and retail banking services in the communities it serves. 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, 2024. 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. FreemanJeffrey Lehocky President & Chief Executive OfficerChief Financial Officer 215-538-5600 x-5619215-538-5600 x-5716 [email protected]@QNBbank.com

QNB Corp. Consolidated Selected Financial Data (unaudited) (Dollars in thousands) Balance Sheet (Period End)9/30/25 6/30/25 3/31/25 12/31/24 9/30/24 Assets$1,903,244 $1,884,828 $1,896,189 $1,870,894 $1,841,563 Cash and cash equivalents 66,331 66,471 81,557 50,713 104,232 Investment securities Debt securities, AFS 538,318 544,262 547,138 546,559 510,036 Equity securities — — — — 2,760 Loans held-for-sale — 1,166 248 664 294 Loans receivable 1,246,529 1,218,539 1,212,162 1,216,048 1,171,361 Allowance for credit losses on loans (9,255) (9,169) (9,298) (8,744) (8,987)Net loans 1,237,274 1,209,370 1,202,864 1,207,304 1,162,374 Deposits 1,681,540 1,651,667 1,664,555 1,628,541 1,626,284 Demand, non-interest bearing 189,492 201,460 203,666 183,499 190,240 Interest-bearing demand, money market and savings 1,104,761 1,060,688 1,083,011 1,063,584 1,055,409 Time 387,287 389,519 377,878 381,458 380,635 Short-term borrowings 48,703 67,464 43,299 53,844 22,918 Long-term debt — — 30,000 30,000 30,000 Subordinated debt 39,218 39,168 39,118 39,068 39,030 Shareholders' equity 121,487 113,269 108,223 103,349 105,340 Asset Quality Data (Period End) Non-accrual loans$8,947 $8,947 $8,651 $1,975 $1,696 Loans past due 90 days or more and still accruing — — — — — Non-performing loans 8,947 8,947 8,651 1,975 1,696 Other real estate owned and repossessed assets — — — — — Non-performing assets$8,947 $8,947 $8,651 $1,975 $1,696 Allowance for credit losses on loans$9,255 $9,169 $9,298 $8,744 $8,987 Non-performing loans / Loans excluding held-for-sale 0.72% 0.73% 0.71% 0.16% 0.14%Non-performing assets / Assets 0.47% 0.47% 0.46% 0.11% 0.09%Allowance for credit losses on loans / Loans excluding held-for-sale 0.74% 0.75% 0.77% 0.72% 0.77%

QNB Corp.Consolidated Selected Financial Data (unaudited)(Dollars in thousands, except per share data)Three months ended, Nine months ended,For the period:9/30/256/30/253/31/2512/31/249/30/24 9/30/259/30/24Interest income$23,518 $23,110 $22,198 $22,209 $21,945 $68,826 $61,859 Interest expense 10,520 10,458 10,661 11,234 10,818 31,639 29,972 Net interest income 12,998 12,652 11,537 10,975 11,127 37,187 31,887 (Reversal of) provision for credit losses 93 (146) 550 (255) 159 497 187 Net interest income after provision for credit losses 12,905 12,798 10,987 11,230 10,968 36,690 31,700 Non-interest income: Fees for services to customers 521 485 447 454 469 1,453 1,316 ATM and debit card 776 724 656 708 691 2,156 2,032 Retail brokerage and advisory income 196 140 141 118 139 477 358 Net realized gain (loss) on investment securities — — — 1,414 224 — (495)Unrealized (loss) gain on equity securities — — — (1,344) 143 — 1,129 Net (loss) gain on sale of loans 41 4 18 (3) 19 63 32 Other 313 299 322 298 282 934 896 Total non-interest income 1,847 1,652 1,584 1,645 1,967 5,083 5,268 Non-interest expense: Salaries and employee benefits 5,248 5,251 5,032 5,079 4,650 15,531 14,662 Net occupancy and furniture and equipment 1,688 1,681 1,736 1,653 1,531 5,105 4,527 Other 3,246 2,630 2,601 2,349 2,455 8,477 7,214 Total non-interest expense 10,182 9,562 9,369 9,081 8,636 29,113 26,403 Income before income taxes 4,570 4,888 3,202 3,794 4,299 12,660 10,565 Provision for income taxes 922 1,005 624 743 961 2,551 2,168 Net income$3,648 $3,883 $2,578 $3,051 $3,338 $10,109 $8,397 Share and Per Share Data: Net income - basic$0.98 $1.05 $0.70 $0.83 $0.91 $2.72 $2.29 Net income - diluted$0.98 $1.04 $0.69 $0.83 $0.91 $2.72 $2.29 Book value$32.59 $30.46 $29.17 $27.96 $28.57 $32.59 $28.57 Cash dividends$0.38 $0.38 $0.38 $0.37 $0.37 $1.14 $1.11 Average common shares outstanding -basic 3,721,501 3,710,878 3,699,854 3,688,078 3,679,799 3,710,824 3,666,937 Average common shares outstanding -diluted 3,735,993 3,724,808 3,713,141 3,695,518 3,682,773 3,723,196 3,666,937 Selected Ratios: Return on average asset(1) 0.76% 0.83% 0.56% 0.66% 0.74% 0.72% 0.64%Return on average shareholders' equity(1) 12.49% 14.25% 9.73% 11.62% 13.25% 12.18% 11.83%Net interest margin (tax equivalent) 2.72% 2.69% 2.51% 2.38% 2.48% 2.64% 2.45%Efficiency ratio (tax equivalent) 68.09% 66.39% 70.65% 71.16% 65.27% 68.31% 70.27%Average shareholders' equity to total average assets 6.09% 5.79% 5.74% 5.65% 5.59% 5.87% 5.43%Net loan (recoveries) charge-offs$12 $(16)$(3)$1 $25 $(7)$58 Net loan (recoveries) charge-offs - annualized / Average loans excluding held-for-sale 0.00% -0.01% 0.00% 0.00% 0.01% 0.00% 0.01%Balance Sheet (Average) Assets(1)$1,904,529 $1,887,138 $1,872,950 $1,848,524 $1,792,952 $1,888,321 $1,744,387 Investment securities 612,204 621,128 614,329 552,323 569,135 619,910 566,638 Loans receivable 1,224,490 1,216,011 1,193,949 1,158,731 1,139,874 1,216,987 1,135,898 Deposits 1,678,118 1,647,990 1,635,629 1,600,925 1,542,661 1,653,266 1,547,290 Shareholders' equity(1) 115,907 109,299 107,503 104,433 100,192 110,934 94,794 (1)In 2025, the Company changed its calculation of average assets and average equity to include the impact of accumulated other comprehensive income (loss), net of tax, to align its calculation with its peer group. Prior period information has been restated for this new calculation; specifically impacting the non-GAAP performance ratios for return on average assets and return on average equity.

QNB Corp. (Consolidated) Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis) Three Months Ended September 30, 2025 September 30, 2024 Average Average Average Average Balance Rate Interest Balance Rate Interest Assets Investment securities: U.S. Treasury$20,556 4.18%$216 $12,811 4.94%$159 U.S. Government agencies 75,965 1.18 224 75,956 1.18 224 State and municipal 104,934 2.87 754 105,674 3.74 989 Mortgage-backed and CMOs 344,214 2.50 2,152 345,119 2.84 2,453 Corporate debt securities and mutual funds 66,535 6.11 1,017 8,804 5.97 131 Equities — — — 3,959 4.61 46 Total investment securities 612,204 2.85 4,363 552,323 2.90 4,002 Loans: Commercial real estate 885,635 5.95 13,285 819,091 5.60 11,525 Residential real estate 116,550 4.52 1,316 110,760 4.21 1,165 Home equity loans 71,090 6.34 1,135 66,239 6.84 1,138 Commercial and industrial 128,744 7.45 2,418 140,980 7.61 2,696 Consumer loans 3,182 8.06 64 3,613 7.75 70 Tax-exempt loans 19,629 4.28 211 18,305 3.88 179 Total loans, net of unearned income* 1,224,830 5.97 18,429 1,158,988 5.76 16,773 Other earning assets 74,054 4.47 835 95,780 5.43 1,307 Total earning assets 1,911,088 4.91 23,627 1,807,091 4.86 22,082 Cash and due from banks 16,062 15,540 Accumulated other comprehensive loss, net of tax (56,590) (63,082) Allowance for credit losses on loans (9,185) (8,860) Other assets 43,154 42,263 Total assets$1,904,529 $1,792,952 Liabilities and Shareholders' Equity Interest-bearing deposits: Interest-bearing demand$377,473 0.98% 933 $356,763 1.00% 898 Municipals 179,161 3.76 1,697 154,619 4.69 1,823 Money market 256,289 2.87 1,852 238,494 3.56 2,132 Savings 277,808 1.28 899 278,247 1.28 896 Time < $100 178,371 3.52 1,583 178,228 4.12 1,846 Time $100 through $250 157,409 3.89 1,545 152,416 4.64 1,777 Time > $250 56,258 3.95 560 49,506 4.61 573 Total interest-bearing deposits 1,482,769 2.43 9,069 1,408,273 2.81 9,945 Short-term borrowings 57,063 3.57 514 34,078 2.18 186 Long-term debt — — — 30,000 4.75 364 Subordinated debt 39,191 9.57 937 13,716 9.42 323 Total borrowings 96,254 5.98 1,451 77,794 4.47 873 Total interest-bearing liabilities 1,579,023 2.64 10,520 1,486,067 2.90 10,818 Non-interest-bearing deposits 195,349 192,652 Other liabilities 14,250 14,041 Shareholders' equity 115,907 100,192 Total liabilities and shareholders' equity$1,904,529 $1,792,952 Net interest rate spread 2.27% 1.96% Margin/net interest income 2.72%$13,107 2.48%$11,264 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) Nine Months Ended September 30, 2025 September 30, 2024 Average Average Average Average Balance Rate Interest Balance Rate Interest Assets Investment securities: U.S. Treasury$20,582 4.26%$656 $8,820 5.10%$337 U.S. Government agencies 75,963 1.18 672 81,800 1.17 718 State and municipal 105,092 2.87 2,264 107,237 3.56 2,860 Mortgage-backed and CMOs 353,997 2.46 6,544 355,878 2.72 7,262 Corporate debt securities and mutual funds 64,276 6.44 3,106 7,416 5.78 321 Equities — — — 5,487 3.87 159 Total investment securities 619,910 2.85 13,242 566,638 2.74 11,657 Loans: Commercial real estate 868,880 5.87 38,129 798,714 5.47 32,701 Residential real estate 115,149 4.41 3,809 109,463 4.07 3,337 Home equity loans 69,921 6.39 3,339 64,700 6.83 3,307 Commercial and industrial 140,822 7.42 7,817 141,148 7.57 7,997 Consumer loans 3,327 7.81 194 3,679 7.78 214 Tax-exempt loans 19,260 4.22 608 18,410 3.86 532 Total loans, net of unearned income* 1,217,359 5.92 53,896 1,136,114 5.65 48,088 Other earning assets 61,114 4.46 2,037 61,999 5.45 2,530 Total earning assets 1,898,383 4.87 69,175 1,764,751 4.71 62,275 Cash and due from banks 14,375 13,880 Accumulated other comprehensive loss, net of tax (58,821) (66,664) Allowance for credit losses on loans (9,102) (8,897) Other assets 43,486 41,317 Total assets$1,888,321 $1,744,387 Liabilities and Shareholders' Equity Interest-bearing deposits: Interest-bearing demand$378,157 0.98% 2,765 $337,632 0.89% 2,243 Municipals 158,426 3.87 4,580 139,810 4.76 4,987 Money market 257,392 2.87 5,532 232,140 3.57 6,196 Savings 279,507 1.29 2,693 288,885 1.28 2,769 Time < $100 178,760 3.64 4,870 168,894 3.98 5,027 Time $100 through $250 155,532 4.04 4,700 141,156 4.53 4,790 Time > $250 52,319 4.10 1,605 50,855 4.49 1,709 Total interest-bearing deposits 1,460,093 2.45 26,745 1,359,372 2.72 27,721 Short-term borrowings 58,546 3.79 1,659 57,880 2.33 1,010 Long-term debt 11,758 4.74 423 26,058 4.63 918 Subordinated debt 39,142 9.58 2,812 4,605 9.35 323 Total borrowings 109,446 5.98 4,894 88,543 3.40 2,251 Total interest-bearing liabilities 1,569,539 2.70 31,639 1,447,915 2.77 29,972 Non-interest-bearing deposits 193,173 187,918 Other liabilities 14,675 13,760 Shareholders' equity 110,934 94,794 Total liabilities and shareholders' equity$1,888,321 $1,744,387 Net interest rate spread 2.17% 1.94% Margin/net interest income 2.64%$37,536 2.45%$32,303 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 Meaure Reconciliation (Dollars in thousands, except per share data) Three months ended, Nine months ended, For the period:9/30/2025 9/30/2024 Variance 9/30/2025 9/30/2024 Variance Net income (GAAP)$3,648 $3,338 $310 $10,109 $8,397 $1,712 Merger-related costs 519 — 519 519 — 519 Income tax benefit (109) — (109) (109) — (109)Merger-related costs, net of tax 410 — 410 410 — 410 Net income excluding impact of merger-related costs (Non-GAAP)$4,058 $3,338 $720 $10,519 $8,397 $2,122 Share and Earnings Per Share (EPS) Data: Basic: EPS using Net income (GAAP)$0.98 $0.91 $0.07 $2.72 $2.29 $0.43 EPS using Net income excluding impact of merger-related costs (Non-GAAP)$1.09 $0.91 $0.18 $2.83 $2.29 $0.54 Fully-diluted: EPS using Net income (GAAP)$0.98 $0.91 $0.07 $2.72 $2.29 $0.43 EPS using Net income excluding impact of merger-related costs (Non-GAAP)$1.09 $0.91 $0.18 $2.83 $2.29 $0.54 Average common shares outstanding -basic 3,721,501 3,679,799 3,710,824 3,666,937 Average common shares outstanding -diluted 3,735,993 3,682,773 3,723,196 3,666,937 Selected Ratios: Return on Average Assets (ROAA): ROAA using Net income (GAAP) 0.76% 0.74% 2 bp 0.72% 0.64% 8 bp ROAA using Net income excluding impact of merger-related costs (Non-GAAP) 0.85% 0.74% 11 bp 0.74% 0.64% 10 bp Return on Average Equity (ROAE): ROAE using Net income (GAAP) 12.49% 13.25% -76 bp 12.18% 11.83% 35 bp ROAE using Net income excluding impact of merger-related costs (Non-GAAP) 13.89% 13.25% 64 bp 12.68% 11.83% 85 bp